Where bills that could impact small business stand right now
Key Small Business Legislation
We are in the closing hours of the 2020 Indiana Legislative Session. Here’s an update on where key small business bills stand at the capitol right now. NFIB State Director in Indiana, Barbara Quandt, is keeping a close eye on bills that could impact your small business – in both good and bad ways. Stay tuned for updates on how you could be impacted by what lawmakers are working on in Indianapolis.
- ASSESSMENT OF BUSINESS PERSONAL PROPERTY TAXES – Senate Bill 385
State Senator Aaron Freeman comes to the rescue once again and authors this small-business-friendly proposal. You may recall that last year he authored legislation increasing, from $20,000 to $40,000, the acquisition cost threshold for the Business Personal Property Tax Exemption. This year, he makes the small business exemption even better. SB 385 provides that the business personal property exemption from taxation is based on the assessed value instead of the acquisition cost. This legislation will exempt another 66,000 small businesses from paying the tax and the need to file. Passed the Senate 40-9. Unfortunately, this legislation did not receive a hearing in the House and is now DEAD. Please thank Senator Freeman for authoring this great-for-small-business legislation. We hope to bring it back and pass it next year!
- RECOVERY OF LITIGATION EXPENSES – Senate Bill 199
This legislation, authored by Guardian of Small Business Award Winner Senator Eric Koch, provides that attorney’s fees may be awarded against the government in a case where a court finds that the claim brought by the government was frivolous, unreasonable, or groundless. This bill includes individuals in the list of parties that may seek reasonable fees and expenses in a civil suit against a state agency. NFIB member Randy Ballinger of Marion testified for NFIB in favor of SB 199 telling his sad tale of government overreach. Why shouldn’t the government pay when the court finds their suit was frivolous, unreasonable or groundless? Passed the Senate 49-0. Unfortunately, this bill was not heard in the House by the deadline and is now DEAD. Please thank Senator Koch for authoring this great-for-small-business legislation. We hope to bring it back and pass it next year!
- UNEMPLOYMENT – Senate Bill 1111
This legislation, authored by former small business owner Representative Dan Leonard, provides a new schedule of rates for calendar years after December 31, 2020 and provides new contribution rates for calendar years after 2020. What does this mean? Basically, it freezes the rates on what is now Schedule E and hold rates on that schedule through 2025. We would have preferred to have a decrease in rates, but the federal government has been pushing for a heftier balance in our trust fund to protect the fund from another significant recession. In this case, holding rates is actually good news when the feds were pushing for increases. Passed the House 90-3. Please ask your legislators to vote YES on HB 1111
- GOVERNOR’S WORKFORCE CABINET – House Bill 1153
This legislation, authored by Representative Chuck Goodrich, provides that the governor’s workforce cabinet shall create a comprehensive strategic plan to ensure alignment of Indiana’s primary, secondary, and post-secondary education systems with Indiana’s workforce training programs and employer needs. Finding qualified workers is the number one problem facing small business owners. This bill is another step toward solving this problem for Hoosier employers. Passed the House 96-1. Please ask your legislators to vote YES on HB 1153.
- EMPLOYEE MISCLASSIFICATION – Senate Bill 309
Authored by State Senator David Niezgodski, SB 309 requires various departments to report for three years 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, not punishment that can put them out of business. Passed the Senate 47-0. SB 309 was not heard in the House by the deadline. NFIB worked hard to defeat this bad-for-small-business legislation and it is now DEAD. This is the second year that this legislation has been defeated.
