Situational Awareness
The House and Senate are in session this week for the final work period leading into the August break. The Senate will return Sept. 5 and the House will reconvene Sept. 12. The House is scheduled to consider the Military Construction and Veterans’ Affairs appropriations bill. The chamber may also consider the Agriculture and Food and Drug Administration appropriations bill. The Senate will continue its work on the annual defense authorization measure.
Labor Confirmation Stalled Indefinitely
The White House has reportedly decided to step back from publicly pressuring lawmakers in the Senate to reconsider their opposition to Juile Su, the administration’s current nominee to replace Marty Walsh as Secretary of Labor. Instead, Su will indefinitely remain as Acting Labor Secretary—a role she has held for five months. Emboldened by a Department of Labor (DOL) rule that some interpret as allowing a deputy to serve in an acting capacity indefinitely, Su will be able to remain unless otherwise legally challenged. Senator Bill Cassidy (R-La.) and House Education and Workforce Committee Chair Rep. Virginia Foxx (R-N.C.) have both raised questions about the legality of such a situation and its potential impact on the legality of DOL actions during her tenure. Su’s supporters in the Senate are likewise content to allow her nomination to stall in the Senate. Amidst several still-developing, high-profile strikes, Su’s position as the pro-labor administration’s lead negotiator will only be effective as long as her authority as deputy secretary is intact.
OSHA “Walkaround” Proposed Rule Sent to White House
In a surge of activity at the Department of Labor in the last couple of weeks, the Occupational Safety and Health Administration (OSHA) sent a proposed rule for review by the White House that would likely allow union representatives to accompany OSHA inspectors during a walkaround at a nonunion worksite. While the proposed rule’s details are not known, it is likely to be based on an Obama-era letter of interpretation issued by OSHA in 2013. The Trump Administration withdrew the letter in 2017.
Appropriations Process Moving Along Though Trouble Ahead
The Senate Appropriations Committee is scheduled to consider four bills this week, including the Interior-Environment, Labor-HHS-Education, and Homeland Security spending bills. The legislation will most likely be released a day ahead of the markup. During a markup last week, Appropriations Chair Patty Murray (D-Wash.) and Ranking Member Susan Collins (R-Maine) agreed to add $13.7 billion in emergency spending, exempt from the limits set in the debt-limit deal, to preserve accounts that would otherwise be subject to significant cuts. The emergency spending package would include $8 billion for defense and $5.7 billion for four nondefense bills.
The Senate and House Appropriations Committees continue their work in earnest, but concerns are rising in Washington about differing approaches and spending levels in each chamber. The Senate has bipartisan support for spending above the limits set in the debt ceiling agreement from earlier this year and the House has been positioning itself to spend less than what was included in the agreement. This is leading to increased speculation about the possibility of shut-down drama as we approach the end of the fiscal year Sept. 30. While that’s six weeks away, the House and Senate will only have three weeks to consider a stopgap funding bill when they return from the August recess and there are wide disparities between the House and Senate on what and whether there should be a continuing resolution to keep the government open after Oct. 1.
House Small Business Committee Legislation on PPP
After reviewing the Small Business Administration’s (SBA) Office of Inspector General’s (OIG) pandemic lending fraud report on July 13, the House Small Business Committee passed two bills that build upon the report’s recommendations. The first bill—H.R. 4666—would require the SBA OIG to submit quarterly reports on their investigations into PPP/EIDL fraud to Congress. The second bill—H.R. 4667—would require action by the SBA to ensure it has processes and procedures in place to adequately accept, process delete comma and account for PPP funds returned by borrowers and lenders.
Upcoming Webcasts: Music & Movie Licensing; Fighting Financial Fraud
NCA will host a pair of webcasts to protect clubs’ bottom lines on Thursday, August 10 and August 24, both at 2 p.m. ET. The 8/10 webcast, presented by Peter H. Ajemian, shareholder, Brownstein Hyatt Farber Schreck, will guide clubs through music and movie licensing do’s and don’ts. Register here.
On 8/24 experts from GGA Partners Liz McDowell, CPA, CA, CCM, director, and Martin Tzankov, senior manager, will share best practices to prevent financial fraud from occurring at your club. Register here.