Bill Vernon from Beacon Hill

Beacon Hill Report

Healthcare

Senate President Murray (D-Plymouth) submitted legislation to control health insurance costs. NFIB certainly appreciates the belated attention to the issue and supports provisions to require provider-cost transparency for consumers and electronic medical records. But the dysfunction in the healthcare system is evident when legislation is required to implement cost-saving measures like electronic records. We urge legislators to be bolder to inject additional competition into the system, especially among insurers, through expanded consumer choice, such as group buying, fewer mandates, and high deductible plans. None of these plans will be right for everyone—or even a majority of consumers—but to the extent that some of the plans could fulfill the needs of some consumers, they will act as a price restraint on more comprehensive plans. If we can solve the health insurance problem for small businesses, we have essentially solved the health insurance problem. And for small businesses, the cost of health insurance is the problem.



Legislative Committee Hearings

We presented testimony this week on several bills. First, NFIB supported legislation

(House Bill No. 1323) to require plaintiffs incur actual injury to be eligible to recover damages in a lawsuit under the state’s consumer protection laws. A copy of the written testimony is on the website.

We also submitted testimony to the Committee on Revenue in support of House Bill No. 3096 and House Bill No. 2882 to equalize the quarterly estimated payments of the corporate excise tax. The current schedule expedites payments of quarterly tax bills for corporations, resulting in 90% of the year’s bill due in the eighth month of the year. Both bills would change the schedule to require only a 25% payment each quarter, are revenue neutral within two years, and would eliminate an inequity that adversely affects the state’s business climate. House Bill No. 2882 limits the change to corporations with ten or fewer employees.

Finally, we submitted testimony in opposition to the compromise legislation (House Bill No. 4476) to limit employers’ access to criminal record information of prospective employees.



Governor’s Task Force on the Underground Economy

Governor Patrick’s new Task Force on the Underground Economy and Employment Misclassification will focus on employers who do not pay unemployment taxes, workers’ compensation, payroll taxes and income taxes for unclaimed or misclassified employees. The task force (made up of representatives from 11 state agencies) will target certain industries (such as landscaping, construction, and domestic services), share investigative information, encourage employers and employees to share information about violators, and review existing laws and regulations. They expressed the hope of collecting $120 million. We support uncovering legal violations to level the playing field for the vast majority of businesses that abide by the law and pay payroll and withholding taxes for their employees, but we remain wary of excessively exuberant enforcement against employers who are acting in good faith in interpreting sometimes complicated employment laws and regulations.

Zoning

Legislation to modernize the state’s zoning laws would only exacerbate the existing housing slump and further exclusionary housing practices according to the Home Builders Association. Despite eight years of study and drafting, House Bill No. 175 appears to still require additional work before becoming law.



And in D.C.

The U.S. Department of Homeland Security has issued regulations that increase fines by 25 percent effective March 27 on employers who fail to comply with guidelines or knowingly hire undocumented workers. The severity of the consequence for non-compliance is significant as the fines are levied per employee. Employers must accurately complete all eligibility documents including the From I-9 and may not create forged or fraudulent documents. Click on the NFIB website for I-9 compliance information. Furthermore, employers may not engage in “unfair employment practices” with regard to immigration, such as discrimination on the basis of race or nationality. For more information, consult the DHS website.

We are supporting legislation to expand the H-2B visa program by exempting returning H-2B workers from counting towards the annual statutory cap of 66,000 for five years. H-2B visas are used by non-agricultural, non-immigrant temporary or seasonal workers who are often employed by seasonal small businesses. After domestic outreach and recruitment has failed, state employment agencies certify that no American worker is available. Businesses can apply for a visa 120 days before they are needed. This year’s allotment of 66,000 workers was exhausted on January 2 before spring and summer seasonal small businesses (for example on Cape Cod) could apply for workers.



This is our way of keeping you informed and ready to react when politicians address issues that affect your bottom line. We hope you find it useful and informative. Visit www.nfib.com/MA for more state news, views and tools for Massachusetts small businesses.

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