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financial services professionals are overwhelmingly satisfied with their status as independent contractors and oppose policies that would take away their choice to work independently.”

NCOIL approved the resolution, sponsored by NCOIL President and California Assemblyman Ken Cooley, at its Spring Meeting in Las Vegas. The resolution says NCOIL will actively urge states and the federal government to exempt insurance and financial professionals from laws or regulations that include an ABC test or similar methods to determine whether a worker is classified as a contractor or employee.

The NAIFA survey cited by NCOIL found:

• Approximately 90% of NAIFA members receive income reported on a 1099.

• 94% do not want to be treated as an employee for union organizing.

• 95% operating as independent contractors want to remain so.

NAIFA has worked closely with NCOIL on the worker classification issue. Josh O’Gara, CLU, ChFC, CFP, a NAIFA member from Woburn, MA, and NAIFA Policy Director Maeghan Gale testified at the NCOIL 2021 Summer Meeting in Boston to provide the producers’ perspective and discuss the importance of independent contractor status for independent broker-dealers and independent financial advisors.

In his testimony, O’Gara gave personal insights as a licensed financial professional into how operating as an independent contractor contributes to his success as a business owner and gives him the freedom and flexibility to serve the best interests of his clients.

Remember that your membership fees cover your subscription to three key advocacy resources:

1) GovTalk, the monthly advocacy newsletter for members

2) NAIFA’s Get Out the Vote website found at https://gotv4financialsecurity.org/

3) NAIFA’s Advocacy in Action Center where you can engage in Action Alerts, reporting grassroots relationships, and giving to IFAPAC. Visit www.naifa.org/advocate to access the Center If you’re missing any of these key advocacy benefits, please email us at info@naifa.org or call

Decisions made by state lawmakers and regulators are just as important as those made on the federal level. That is why it is crucial for NAIFA state chapters to be influential in every state capital. A great example of NAIFA’s state advocacy strength recently played out in Kentucky.

A proposed tax reform bill would have imposed a 6% sales tax on a variety of services to help lower the state’s income tax. While financial services are rarely subject to sales taxes, this proposal would have made Kentucky subject to one of the highest tax rates in the country for these services.

NAIFA immediately engaged in strategic outreach to Kentucky lawmakers. NAIFA-KY President Cathy Carlson and other local NAIFA members visited in person with home district legislators and members of the Senate Appropriations & Revenue Committee to express the major concerns directly from financial planners. NAIFA-KY members Patrick Robison and Brian Wilson also contacted their legislators. Following these grassroots efforts, the Kentucky Senate introduced a substitute bill removing the taxes on personal financial planning and investment management services. This is an amazing legislative win that not only continues to protect NAIFA members but also shows the power of NAIFA’s grassroots advocacy.