The 2019 legislative session for the Mississippi Legislature ended March 29, 2019, a little over a week before its scheduled April 7 adjournment.
NFIB’s legislative lobbying and monitoring centered on continuing to focus on any legislation that impacts our small businesses directly, as well as any issue affecting general business operations and costs.
NFIB’s legislative agenda centered on working toward a law to limit premises liability on business and landowners for third party crimes committed on the premises; and continuing to reduce the costliness and time-consuming red tape of excessive regulations — from state agencies and local governments — that burden the ability of small business owners to own, operate and grow their business.
Another priority that NFIB keeps pressing lawmakers on is the need to exempt small businesses from the antiquated local personal property tax on business furniture, fixtures, and equipment.
Additional focus always centers on stopping costly health insurance mandates; making the punishment fit the crime against a business; defeating employment mandates that drive up costs; preserving fair competition, and being your voice at the Mississippi State Capitol — to lawmakers and state agencies.
Here’s the final legislative status of bills impacting various small businesses, and, where applicable, our NFIB position.
PREMISES LIABILITY
SB 2901, the “Landowner Protection Act.” (Sen. Josh Harkins-Flowood, Sen. Jenifer Branning-Philadelphia, and 21 others) Passed Senate initially 32 to 17; passed House as amended 78 to 36; Senate concurred in House amendments 31 to 20; approved by governor March 29. NFIB Supported and led the 32-member coalition supporting this legislation.
This is extremely significant legislation.
With no current applicable statute and only common judicial law, it will:
Set the same reasonable standard of liability that our State Appellate Courts have ruled for premises owners when an “invitee” (customer, etc.) is injured by a third party who commits a criminal act;
Allow juries for the first time to apportion or divide fault between the third party who injured the customer and the premises owner;
Limit the evidence presented to the jury regarding “atmosphere of violence” to only prior felonies committed on the owner’s premises and not other nearby property; and
Limit the evidence presented to the jury regarding “prior violent acts” of the third party to only those which the premises owner has actual knowledge.
Similar premises liability legislation has been pushed since it was compromised out of the historic 2004 Tort Reform law. This year a 32-member coalition of business, healthcare, agricultural and religious associations/organizations backed this legislation. Leading this successful effort were NFIB (Ron Aldridge), Mississippi Association of Convenience Stores, MS Realtors Association, and the Mississippi Apartment Association.
HB 337 (Rep. Jason White-West; Rep. Jerry Turner-Baldwyn; and 11 others) This same bill as SB 2901 was introduced in the House and passed out of the House Judiciary A Committee, however, it died on the House Calendar without action after it was agreed that SB 2901 would be the one to be taken up.
Thanks to Lt. Gov. Tate Reeves and Speaker Philip Gunn, who both provided significant leadership and support to help get this passed; to Sen. Josh Harkins, who led the bill the entire way to passage), Sen. Jenifer Branning, who provided backing as a lawyer, Sen. Rita Parks, chair of the Business & Financial Institutions Committee, which passed the bill to Senate floor; Rep. Mark Baker, chair of House Judiciary A Committee, which passed the bill to the House floor; and Rep. Jerry Turner, co-sponsor of HB 337 and sponsor of similar bill in 2012 that passed the House.
VENDING MACHINE and MICRO-MARKETS EXEMPTION
HB 1206 (Rep. Jerry Turner) Vending machines and micro-markets; exempt from regulation by Department of Agriculture and State Board of Health. (Passed the House 116-0; passed the Senate 52-0; approved by governor March 19. NFIB supported.
This bill was introduced at the request of the Mississippi Automatic Merchandising Association (MA-MA), which includes some of our NFIB member companies or affiliated companies. Beginning on its effective date of July 1, 2019, the new law will exempt “vending machines” and “micro-markets” (as both are defined in the new law) from regulation by the Mississippi Department of Health and the MS Commissioner of Agriculture & Commerce and his state agency
Vending and Micro Market companies will save thousands of dollars and significant employee hours each year dealing with site and food safety plans, menus, food management certifications, inspections, re-inspections, & annual fees if either of these two state agencies began regulating them.
Currently, “vending machines” are written into the regulatory authority of the Mississippi Department of Health. However, that agency has not chosen to regulate, permit, or inspect them actively. This new law will prohibit them from changing their mind.
Currently, “micro-markets,” a new concept in merchandising and selling food and beverage products in a controlled environment, are unknown to Mississippi regulatory agencies, and other states are creating new laws and regulations to permit and inspect them. However, after looking at all of the senseless and costly inspections that would be made by the Mississippi Department of Agriculture & Commerce and the Mississippi Department of Health, it was my recommendation that, unlike other states, Mississippi should pass a law NOT to regulate them.
Thanks especially to Rep. Jerry Turner of Baldwyn, a true friend of our industry, and to Mississippi Commissioner of Agriculture & Commerce Andy Gipson, another great friend, who agreed to the legislation and has a past legislative history as a former State Representative of opposing excessive regulation and support for our industry.
Thanks also to Lt. Gov. Tate Reeves, Speaker Philip Gunn, Sen. Billy Hudson, Sen. John Polk, Sen. Lydia Chassaniol, Rep. Sam Mims, Rep. Doug McLeod, and Rep. Nick Bain for their significant vocal support.
DONOR & MEMBER PRIVACY PROTECTED
HB 1205 (Rep. Jerry Turner – Baldwyn) Public agency; prohibit from requesting or releasing certain personal information from an entity organized under Section 501(c) of the Internal Revenue Code. (Passed Senate as Amended 32 to 18; House Passed & Concurred in Senate Amendment 73 to 45; Approved by Governor 3/28/19) NFIB SUPPORTED
Championed by Rep. Mark Baker (Brandon), it allows a nonprofit to defend itself in court if its confidential donor list is leaked by a rogue government agency or bureaucrat; and prohibits public agencies from requiring 501(c) entities to provide the agency with the personal information of its members, supporters, volunteers or donors. It inaccurately was negatively characterized as allowing dark money contributions. However, it does not affect any provision of the state’s campaign finance statutes.
ALLOW FEDERAL LAW TO APPLY IF BENEFITS EXTENDING CERTAIN VEHICLE LOADS
HB 1329 — (Rep. Missy McGee – Hattiesburg) — Vehicle loads; Amend current state law to allow certain front and rear projecting to extend beyond state limits if allowable under federal law. Passed House 117 to 1; Passed Senate 51 to 0; Approved by Governor 3/21/19) NFIB SUPPORTED.
NEW CRIME OF CONSIGNMENT FUEL THEFT
HB 940 — (Rep. Jeff Smith – Columbus) Consigned motor fuels; provide crime for theft of. (Passed House 81 to 27; Passed Senate As Amended 51 to 0; House Concurred in Senate Amendment 114 to 4; Approved by Governor 3/29/19) NFIB SUPPORTED
SALES TAX HOLIDAY LAW EXPANDED TO SCHOOL SUPPLIES
SB 2955 — (Sen. Walter Michel – Madison) Sales tax; exempt sales of school supplies during the same two-day sales tax holiday period currently given to clothing on the last Friday of the month of July and the next day (Saturday); and also exempts from sales tax the purchase of tangible personal property or services to certain non-profit groups including the Junior League of Jackson. (Conference Report Passed House 115 to 0; Passed Senate 51 to 0; Approved by Governor 4/16/19) NFIB SUPPORTED
TRANSPORTING BULK FEED OR WOOD PELLETS — EXPAND WEIGHT PERMITS LAW
HB 754 — (Rep. Vince Mangold – Brookhaven) — Excess weight permits; authorize vehicles hauling bulk feed, wood pellets to apply for harvest permit; and extends repealer on the excess weight permits law to carry certain loads up to 84,000 pounds. (Passed House 116 to 1; Passed Senate 51 to 0; Approved by Governor 3/21/19) NFIB SUPPORTED
LOCAL PERSONAL PROPERTY TAX EXEMPTIONS: NFIB SUPPORTED
FURNITURE, FIXTURES & EQUIPMENT: NFIB SUPPORTED
HB 167 — (Rep. William Shirley – Quitman) Exempts the first $20,000 of Assessed Value
HB 168 — (Rep. William Shirley – Quitman) Phases out this tax over 10 years
HB 374 — (Rep. Robert Foster – Hernando) Exempts any item less than $100 in true value
HB 1448 — (Rep. Bubba Carpenter – Burnsville) Phases out the tax over five years
(NOTE: All of these House Bills DIED in the House Ways & Means Committee without consideration)
INVENTORY
SB 2006 — (Sen. Blackwell – Southaven) — Phases out this tax over five years for Small Businesses with less than $2 Million in annual net revenues. (DIED in the Senate Finance Committee without consideration) NFIB SUPPORTED
PUNISHING THEFT
HB 1032 — (Rep. Randall Patterson – Biloxi) & SB 2189 — (Sen. Mike Seymour – VanCleave) ORGANIZED RETAIL THEFT; definition. Would have corrected a loophole in current law to ensure a ring of shoplifters can receive a felony conviction for multiple offenses. (HB 1032 DIED in the House Judiciary B Committee without Consideration; SB 2189 DIED in the Senate Judiciary B Committee without Consideration, double-referred to Corrections Committee) NFIB SUPPORTED
SB 2159 — (Sen. Mike Seymour – VanCleave) SHOPLIFTING; revise penalties for. (DIED in the Senate Judiciary B Committee without Consideration; double-referred to Corrections Committee) NFIB SUPPORTED this bill’s intent of strengthening our current law but thought it was possibly too severe to get passed.
HB 1037 — (Rep. Steve Massengill – Hickory Flat) CARGO THEFT; create crime and provide penalties. Creates the criminal charge of cargo theft for stealing a trailer, etc. with cargo inside. (DIED In House Judiciary Committee without Consideration) NFIB SUPPORTED
COMPROMISE/SETTLE TAX LIABILITIES
HB 943 — (Rep. Jeff Smith – Columbus) Department of Revenue; authorize to compromise and settle tax liabilities with taxpayers. Would allow the DOR to do the same as the IRS can do to help finalize a “doubtful claim” tax debt. (Passed House 117 to 0; DIED in Senate Finance Committee without action.) NFIB SUPPORTED
JOBS INCOME TAX CREDITS
HB 111 — (Rep. Tracy Arnold – Booneville) Income tax; authorize credit for taxpayers that em-ploy persons convicted of certain nonviolent offenses. (DIED in House Workforce Development Committee without consideration; Double-referred to House Ways & Means Committee) NFIB SUPPORTED
HB 1447 — (Rep. Bubba Carpenter – Burnsville) Income tax; authorize credit for taxpayers that employ persons convicted of certain felony offenses. (DIED in House Ways & Means Committee without consideration) NFIB SUPPORTED
REDUCING EXCESSIVE REGULATIONS
HB 898 (Rep. Robert Foster – Hernando; Rep. Chris Brown – Nettleton) Agency Accountability Review Act of 2019; create. (Passed House: 99 to 15; DIED in Senate AET Committee without action). NFIB SUPPORTED
Would reduce regulations by requiring all regulations adopted under the Administrative Procedures Act to automatically repeal on December 31 of the fifth year following the reg’s initial adoption unlessreg has been readopted at least 60 days before its scheduled repeal.
Also required the Joint Legislative PEER (Performance Evaluation & Expenditure Review) Committee to begin reviewing state agencies, their core functions, and determine whether they are still relevant and fulfilling a necessary function of government.
WORKERS’ COMP INSURANCE
HB 631 — (Rep. Gary Chism – Columbus) Workers’ Compensation Law; revise various provisions of. (DIED in House Insurance Committee without consideration). NFIB SUPPORTED
Provided that a claimant’s failure to timely file medical records in support of a controverted workers’ compensation claim may result in dismissal of a claim;
Required the Employer or Carrier in certain instances to notify the Employee that his right to benefits may be barred by the statute of limitations;
Clarified the limitation on attorney’s fees;
Revised the Confidentiality of Workers’ Compensation Commission Records, to help deter the current practice of trial lawyers using this info to make contact with potential clients
Allowed notice to the Insured of Cancellation and Non-renewals to be served electronically as long as a receipt is acknowledged.
SALE & USE of URINE to DEFRAUD DRUG TESTING RESULTS
HB 1320 — (Rep. Nick Bain – Corinth) Sale of urine; prohibit and prescribe criminal penalties for violation of. (Passed House 109 to 7; DIED in Senate Judiciary B Committee without action & doubly-referred to Corrections Committee). NFIB SUPPORTED
this legislation was an attempt to curb the significant problem that exists with the sale, purchase, and use of human or synthetic urine in this state and throughout our nation with the intent of using the human or synthetic urine to defraud or cause deceitful results in an employer’s drug or alcohol screening test.
EXEMPTION FROM LABELING REQUIREMENTS
HB 1493 — (Rep. Chris Brown – Nettleton – NFIB Member) Stand-alone ice vending machines; exempt bags or other containers used to store ice from including specific information on its label. (Passed House 115 to 0; DIED in Senate Business & Financial Institutions Committee without action). NFIB SUPPORTED
this legislation would have saved significant printing and labeling costs that is needless since it’s obvious what the name, plant number, and location of the manufacturer is upon purchase at a stand-along ice vending machine.
REGULATORY REFORM TO BETTER INFORM PUBLIC
HB 1290 — (Rep. Kevin Ford – Vicksburg) State agencies; require to answer certain question after amending or adopting. (Passed House 70 to 37; DIED in Senate AET – Accountability, Efficiency & Transparency Committee without action). NFIB SUPPORTED
this legislation would have simply required state agencies answer certain reasonable questions related to the public need and impact of any proposed regulations or amendments to current regulations; and require them to provide such answers to the public on their website and “Transparency Mississippi”.
WORKERS COMPENSATION INSURANCE REQUIREMENT
FEWER THAN FIVE EMPLOYEE EXEMPTION
HB 405 — (Rep. Kathy Sykes – D-Jackson) Workers’ Compensation Law; revise various provisions regarding. (DIED in House Insurance Committee without consideration; double-referred to Judiciary A Committee) NFIB OPPOSED
Would have repealed the current threshold of having five (5) employees before being required to provide workers compensation insurance.
PUBLIC CONTRACT REQUIREMENT
HB 538 — (Rep. Nick Bain – Corinth) Contractors; require to have state tax identification number and workers’ compensation insurance when bidding on public projects. (DIED in House Judiciary A Committee without consideration.) NFIB OPPOSED
REGULATING PACKAGING (BPA)
SB 2557 — (Sen. Sampson Jackson – D) Consumer protection; restrict the use of certain chemicals in food and food packaging — “BPA-Bisphenol A”. Would have banned food packaging, bottles (including sports bottles), cups, and cans (except metal cans) that contain BPA or phthalates. (DIED in Senate
Public Health & Welfare Committee without action). NFIB OPPOSED
REGULATING PLASTIC STRAWS
HB 1475 — (Rep. Abe Hudson – D-Shelby) Prohibits food establishments from providing single-use plastic straws unless requested by the customer. (DIED in House Conservation & Water Resources Committee without action; also double-referred to Judiciary B Committee) NFIB OPPOSED
SB 2786 — (Sen. Deborah Dawkins – D-Pass Christian) Prohibits food establishments from providing single-use plastic straws unless requested by the customer. (DIED in Senate Environmental Protections, Conservation & Water Resources Committee without action). NFIB OPPOSED
NFIB OPPOSED NUMEROUS OTHER BAD FOR BUSINESS bills that tend to get introduced every year, which also DIED in committee, including measures that called for:
Creating a state minimum wage
Creating a state department of labor
Prohibiting employers from obtaining a job seeker’s criminal history
Removing the one-week waiting period for unemployment benefits requiring businesses that accept credit cards to have cameras to record persons using cards.
Imposing health insurance mandates
EXPANDING BROADBAND
HB 366 — (Speaker Philip Gunn – Clinton & other Representatives) — Mississippi Broadband Ena-bling Act; create. (Passed House 115 to 3; Passed Senate 52 to 0; Approved by Governor 1/30/19)
Authorizes the non-profit Mississippi’s Electric Cooperatives to pursue broadband in their districts; Must perform an economic feasibility study before any vote of the Coop Board to pursue providing broadband services.
NFIB has been at the forefront of voicing our state’s critical need for the expansion of broadband services throughout Mississippi for the benefit of our entrepreneurs. However, we were concerned that the non-profit operation of the Electric Cooperatives might have an unfair advantage over foprofit entities and therefore did not fully support or oppose this legislation, but pointed out this potential opportunity for unfair competition.
OCCUPATIONAL LICENSING — CRIMINAL RECORDS
SB 2781 — (Sen. John Polk – Hattiesburg) The Fresh Start Act; create to require the revision of licensing restrictions based on criminal records. (Conference Report Passed House 109 to 1, and Passed Senate 44 to 7; Approved by Governor 4/16/19)
Prohibits occupational licensing boards from using rules and policies to create blanket bans that prevent ex-offenders from obtaining employment, to include the use of vague terms like “moral turpitude” or “good character” to deny a license.
Rather, they must use a “clear and convincing standard of proof” in determining whether a criminal conviction is cause to be denied a license. This includes nature and seriousness of the crime, passage of time since the conviction, relationship of the crime to the responsibilities of the occupation, and evidence of rehabilitation on the part of the individual. This new law will provide hope for ex-offenders who want to turn their lives around and learn a trade so that they can better support themselves and their families.
FEDERAL BALANCED BUDGET CONSTITUTIONAL AMENDMENT Resolution
SC 596 — (Sen. Angela Hill + 22 Senators) — U. S. Constitutional Amendment Convention of the States under Article V; apply for certain restraints on the federal government. (Passed Senate 32 to 17; Passed House 70 to 46)
Mississippi became the 15th state to join the call for a Convention of States under Article V of the Constitution this session. It takes 34 states to call a convention, and 38 states to ratify any proposed amendment. The convention call that Mississippi legislators adopted would limit the proposals that could be considered to those that either impose fiscal restraints on the federal government or limit its power and jurisdiction.
INCOME TAX CREDITS FOR BUSINESS DONATIONS
HB 1613 — (Rep. Mark Baker – Brandon) – The Children’s Promise Act — tax credit for donations (Conference Report Passed House 112 to 0; Passed Senate 42 to 9; Approved by Governor by 4/18/19)
The Children’s Promise Act creates an $8 million tax credit for donors who give to nonprofits working to resolve the state’s foster care challenges. House Bill 1613, authored by Rep. Mark Baker, expands the tax credit for individual donations up to $1,000 made to nonprofits working with foster care kids, disabled children, and low-income families, to $3 million.
Additionally, the Act creates a $5 million business tax credit targeted toward nonprofits working directly with the state to address problems identified in the Olivia Y lawsuit. The bill also provides for a business tax credit for donations to nonprofits working with special needs children.
This law will make Mississippi the first state in the country to enact a business tax credit for game-changing donations to foster care providers. In doing so, Mississippi is continuing to lead the way in transforming lives and communities by passing best-in-the-nation welfare-to-work reform and, then, empowering the private sector to work alongside the government in addressing generational poverty.
SB 2210 — (Sen. Joey Fillingane – Sumrall) Income tax; authorize a tax credit for contributions to certain endowed funds held by community foundations. Passed House as Amended 112 to 2; Senate Concurred & Passed 51 to 0; Approved by Governor 3/29/19.
Creates the “Endow Mississippi” Program. “Qualified community foundation” means an entity that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code that is recognized by the Mississippi Association of Grant-makers. The aggregate amount of credits statewide is $500,000.
CRIMINAL JUSTICE REFORM — REMOVING BARRIERS TO EMPLOYMENT
HB 1352 — (Rep. Jason White – West) House Bill 1352 could make it easier for people who have paid their debt to society to re-enter the workforce by removing barriers to employment. (Conference Report Passed House 112 to 5, and Passed Senate 48 to 1; Approved by Governor 4/16/19)
INCOME TAX CREDITS — EXTENDED THESE CURRENT CREDITS
HB 694 — (Rep. Jason White – West) Income tax; extend repealer on a tax credit for certain charges for using certain port and airport facilities. Passed House 116 to 2; Passed Senate 52 to 0; Approved by Governor 3/15/19)
HB 695 — (Rep. Jason White – West) Income tax; extend repealer on credit for certain costs paid by a company in relocating national or regional headquarters to this state. Passed House 116 to 2; Passed Senate 52 to 0; Approved by Governor 3/15/19)
HB 808 — (Rep. Jason White – West) Income tax; extend repealer on a tax credit for a new cut and sew jobs in the upholstered furniture manufacturing industry. Passed House 116 to 2; Passed Senate 52 to 0; Approved by Governor 3/15/19)
HB 1065 — (Rep. Jason White – West) Income tax; authorize a job tax credit for certain water transportation enterprises that are primarily engaged in providing inland water transportation of cargo on lakes, rivers, and intracoastal waterways. Passed House 115 to 0; Passed Senate 52 to 0; Approved by Governor 3/28/19)
HEALTH CARE ZONES — LOWERED PROJECT THRESHOLD
SB 2056 — (Sen. Kevin Blackwell – Southaven) Fee-in-lieu of ad valorem taxes; revise investment required by qualified businesses under the MS Health Care Industry Zone Act. Passed House as Amended 115 to 0; Senate Concurred & Passed 52 to 0; Approved by Governor 3/29/19.
Lowered the investment required from projects totaling over $100 Million to $10 Million to be al-lowed to pay a fee-in-lieu of ad valorem taxes. Must create a minimum of 25 new jobs and $20 Million of Capital Investment.
WORKFORCE TRAINING FUNDS for INDUSTRY CERTIFICATION
SB 2447 — (Sen. Grey Tollison – Oxford) Career and technical grants to schools for qualified students; provide for. Passed House as Amended 111 to 2; Senate Concurred & Passed 52 to 0; Ap-proved by Governor 3/29/19.
Creates a Career & Technical Grant of $600 per student to schools for qualified students who earn an industry certification that is linked to an occupation with wages of at least 70 percent of the average annual wage in this state unless the industry certification is stackable to another postsecondary or professional credential which is linked to an occupation which meets the wage criterion.
SMALL BUSINESS & GROCER INVESTMENT ACT
HB 1132 — (Rep. Jeff Smith – R) Small Business and Grocer Investment Act; extend repealer on. (Passed House 116 to 2; Passed Senate 48 to 4; Approved by Governor 3/19/19)
Originally pushed by the “Partnership for a Healthy MS” to assist small grocers with the expensive costs of refrigeration equipment in rural areas of the state to provide greater access to fruits and vegetables.
LIMITING FRANCHISOR EMPLOYEE STATUS
HB 1530 — (Speaker/Rep. Philip Gunn – Clinton) Employment; clarify that franchisee and franchisee’s employees are not an employee of franchisor. (Passed House 80 to 33; DIED in Senate Judiciary A Committee without action.)
REGULATING CAFFEINE PRODUCTS
HB 32 — (Rep. Jay Hughes – D-Oxford) Noah’s Law; create to regulate sale of pure powdered caffeine products. (DIED in House Judiciary B Committee without action)
The bill has changed from how it was introduced by Rep. Hughes three years ago and this year has the same language as previously written by Ron Aldridge three years ago. Aldridge’s re-write limits the bill’s prohibition to only the sale of “pure powdered caffeine” with exceptions for product manufacturers and pharmacists; and which preempted any local governments from regulating any USDA approved products.
Three years ago Noah’s Law as re-written by Aldridge almost made it through the legislative process last until Rep. Hughes brought Noah’s family to the Capitol when the Senate Committee was taking up the bill. It didn’t go any further, and no one is interested in pushing it now.
Approximately 14 local governments in Mississippi have passed a local ordinance placing severe restrictions and possible penalties on businesses selling certain caffeine products based on a unworkable standard. These were patterned after the original proposed and poorly written “Noah’s Law” legislation.
DEBT COLLECTION — UNFAIR ADVANTAGE OVER OTHER BUSINESSES
HB 991 – (Rep. Jeff Smith – Columbus) Income tax; authorize counties and municipalities to collect certain debts by setoff against a debtor’s income tax refund. (Passed House 86 to 28; Passed Senate 30 to 14; Approved by Governor 3/19/19)
This legislation is a continuation of prior laws passed giving certain government entities special ac-cess to a Mississippian’s state income tax refund and put them ahead of others, including businesses, who have valid judgments against a debtor; and therefore NOT GOOD OR FAIR FOR OTHER BUSINESSES.
This bill is particularly a bad precedent in that it gives two non-profit associations — Mississippi Municipal League representing its member cities and MS Supervisors Association representing their member counties — the power to collect on behalf of such cities and counties and charge a 25% fee, of which they get to keep 20%, and the Mississippi Department of Revenue gets the remaining 5%
NFIB’s State Director is ready to assist you — Contact Ron Aldridge with any questions about these or any issue of concern at [email protected] or 601-201-1323.
