On the pro-active side, we passed legislation that will enable more small businesses to be exempt from the business personal property tax and passed several initiatives designed to address the qualified worker shortage in the state.
On the bad bills side, there were two huge potholes we avoided in the 2019 session. The first pothole was a proposal to create a new government paid leave insurance program. The second would have taken aim directly at those businesses that use 1099 subcontractors. Both bills were marketed by their authors as non-threatening. One was “voluntary” and the second was merely a “study.” But don’t let the PR effort fool you. These bills would have had serious implications for small business down the line.
Business Personal Property Tax Small Business Exemption – Senate Bill 233
State Senator Aaron Freeman (R) authored this pro-small-business proposal that increases, from $20,000 to $40,000, the acquisition cost threshold for the Business Personal Property Tax Exemption. It also repeals provisions in current law that allow a county council to impose a local “service fee” on each entity that has exempt business personal property. Such fees defeat the purpose of the small business exemption. Prior to this exemption, most returns cost more to process than the actual tax assessed. This is a common-sense bill that makes a big difference for small business. On the Governor’s desk.
Paid Family Leave Insurance – Senate bill 496
Small Business dodged a bullet in State Sen. Karen Tallian’s (D) plan to provide workers with paid family leave. NFIB was the only organization to testify in opposition to this bill. Incredibly, SB496 passed the Senate with the help of 21 Republicans and 8 Democrats and caught pro-small-business legislators napping. Luckily, we were able to beat it back in the House. This bill called for the Department of Insurance to create a voluntary plan to be used by employers and employees. This is just the beginning, folks. Savvy small business owners know that programs that start as voluntary eventually become mandates. Paid Leave, voluntary or otherwise, is sure to be back next year. DEAD BILL.
Career and Technical Education Matters – House Bill 1002
This legislation authored by State Representative Holli Sullivan (R) comes from the work of the Governor’s Workforce Cabinet. The Workforce Cabinet was created by the legislature during the last legislative session. This legislation is the product of the recommendations from the Cabinet and better aligned the many different state workforce programs to reduce duplication of efforts and increase effectiveness. It is designed to educate more workers in preparation for the jobs small business owners can’t fill today and anticipate the job needs of tomorrow. Governor Holcomb asked for two times last year’s Next Level training grant budget and the legislature agreed. This successful program is producing big results. Sign your company up today before the grant money is snapped up by big businesses in this state! Signed by the Governor on 4/30/2019.
Reporting on Worker Misclassification – Senate Bill 289
Authored by State Senator David Niezgodski (D), SB-299 is another bill that caught pro-small-business legislators napping. It requires various departments to report to the interim study committee on employment and labor (1) the number of employers that were determined improperly classified worker(s) as an independent contractor; (2) the total number of improperly classified workers employed by those employers; (3) the costs to the state; and other data. Legislators were wooed by Big Labor interests that pitched this as simply a “study.“ Make no mistake, this is an attempt to eventually go after small businesses whom, in many cases, may not even know they are not in compliance. Education is needed here, not punishment that can put them out of business. Incredibly, this bill passed out of the Senate 47-0. Fortunately, we were able to stop it in the House. DEAD BILL.
Affordable Workforce Housing – House Bill 1625
Finding qualified workers is the number one issue for small business owners. What’s making it even more difficult, is that in many communities, workers cannot find affordable housing. Regulations and permitting have increased the cost to build housing, resulting in a shortage of affordable places to live. Authored by Representative Ed Clere (R), HB 1625 provided greater transparency by requiring state agencies and local units to disclose the financial impact new rules and regulations will have on housing. By requiring a housing impact analysis, taxpayers will know the costs and benefits of proposed regulations before they go into effect. It’s about transparency, good government and a growing Hoosier economy. Unfortunately, the locals didn’t like the idea and the bill went down in flames. DEAD BILL.
