NFIB Texas Lays Out Top 10 Priorities & Problems for Texas Small Businesses

PART II in a II-Part Series: ASSET Coalition will fight cities efforts to interfere with private employment By Annie Spilman Texas Insider Report: AUSTIN Texas  Texas cities in have been increasingly pressured by out-of-state labor unions to expand their regulatory scope by passing local ordinances regulating a private business owners employment practices.  The National Federation of Independent Business (NFIB) is a member-governed organization that has approximately 20000 small business members in Texas. We represent all economic sectors in the Lone Star State from manufacturing to wholesale-retail and services to construction and agriculture. Small businesses not big business big labor or big government employ the majority of working Americans and generate almost all net new jobs. As the 86^th Legislative Session begins Tuesday NFIB Texas is in the process of sharing its top priorities with State Legislators and explaining to them why these issues are important to virtually every small business across Texas.  Reeling in Regulatory Overreach Small businesses already implement hundreds of federal and state regulations which costs them 36 more than a larger business according to the U.S. Small Business Administration. Now cities are creating more employment and labor regulations locally which in most cases differ from the set of standards set by federal or state government. These local ordinances create a patchwork of laws which makes compliance almost impossible for the small business owner. As cities in Texas have been pressured by out-of-state labor unions to expand their regulatory scope by passing local ordinances regulating a private business owners employment practices these city ordinances would:

• Mandate what kind of benefits an employer offers;
• How to handle their employee scheduling; and would
• Interfere with private employment hiring practices among other business daily operations best left up to the employer.

This session NFIB is excited to be spearheading the effort at the Capitol to fight this overreach.

Along with 17 other business organizations we have formed the coalition ASSETAlliance for Securing & Strengthening the Economy in Texas  to preempt cities from passing ordinances that interfere with private employment practices.

Big Labor Unions vs. Small Business The Texas economy has thrived in part because it remains a right-to-work state free of forced-unionism. However union activity has grown in Texas while its declined in other states. Currently state and local governmental bodies in Texas automatically deduct money from public employee paychecks to pay directly to the union in the form of union membership dues. This has been the main funding source for public sector labor unions to the tune of hundreds of millions of dollars just in the last decade used for their lobbying and political activity. Not only has this given these politically driven labor unions a leg-up over small businesses in Texas but because of a loophole in the law for public sector unions they have no reporting and disclosure requirements. Union policies encourage the government to control small businesses by taking their business operational decisions away from them and by piling on costly mandates.

• NFIB will pursue legislation that prohibits the government from collecting money for public sector labor unions making them an appropriate neutral party.
• NFIB will also pursue legislation that requires public sector labor unions to report and disclose their financial reports with the Texas Ethics Commission.

Health Insurance Mandates & Heavy Cost In a survey of NFIBs members in 2016 the cost of health insurance was ranked the number one biggest problem and priority for small business owners in Texas. This remains a perennial issue for small business owners. Adding new expensive mandates to health benefit plans increases the costs for businesses and employers and adds to the growing number of uninsured in Texas. Employers ultimately pay the high price for mandated health care benefits through higher health care premiums co-pays reduced wages and benefit reductions. Most large businesses receive their health care benefits under self-funded arrangements which are preempted under ERISA and are exempted from state law. Thus health benefit mandates more negatively affect small employer and individual policies. Many mandates including the half dozen or so passed during the past few legislative sessions are estimated to increase premiums by millions of dollars. In fact each mandate increases the cost of health insurance premiums by approximately one to 5. While this may seem insignificant every 1 increase in premiums costs consumers and employers an estimated $230 million a year in the fully insured market. In the end mandates can hurt the very people that they were meant to help individual employees and their families. NFIB will oppose any legislation that continues to drive the cost of health insurance up or penalizes a small business owner for not carrying health insurance. Workforce Development & Lack of Skilled Workforce Finding skilled workers or lack of a skilled workforce" has been an ongoing issue for employers in this state both large and small. Texas small business job creators in the industrial and technical fields have positions open and ready to fill but because were just beginning to build upon the work the legislature has done in recent years to create skills training in schools those employers find themselves unable to expand in some cases. However the legislature has made strides in realizing the importance of trade skills training in junior high and high school charging the Texas Workforce Commission Texas Education Agency and the Texas Higher Education Coordinating board to work together along with employers in the state to complete the mission of graduating more students into the workforce. NFIB will continue to work with other business organizations to make sure skills training in schools is a priority and our Texas workforce is robust for generations to come.

NFIB Texas Top Session Priorities

The NFIB Texas Legislative Agenda for the 86^th Legislative Session was generated from the most recent 2018 NFIB Member Ballot which was sent to all 20000 of our Texas members. Here are the top recognized priorities for small business owners going into 2019.

• Property Tax & Franchise Tax Relief & Reform
• Reeling in Regulatory Overreach
• Labor Union Transparency
• Health Insurance Mandates & Burdensome Cost
• Workforce Development

Texas Small Business Top 10 Biggest Problems & Priorities

(according to an NFIB member poll)

1. Cost of Health Insurance"
2. Uncertainty over Economic Conditions"
3. Uncertainty over Government Actions"
4. Unreasonable Government Regulations"
5. Property Taxes"
6. Federal Taxes on Business Income"
7. Tax Complexity"
8. Frequent Changes in Federal Tax Laws and Rules"
9. Locating Qualified Employees"
10. Federal Paperwork."

As State Director Annie Spilman directs NFIBs Texas efforts & member engagement at the State Capitol in Austin as well as their political involvement throughout the state. The National Federation of Independent Business (NFIB) is the nations leading small-business association and has the largest business organization in Texas.