Situational Awareness
This week marks the beginning of Congress’ August recess, which is scheduled to end Sept. 12. This return date would give both the House and Senate just three weeks to pass a long list of must-pass legislation until the end of the fiscal year on Sept. 30. While members typically use this time to work in their districts, raise money and participate in Congressional Delegation trips, committee staffers will work tirelessly behind the scenes to exchange proposals on appropriations bills, the National Defense Authorization Act and legislation to reauthorize the Federal Aviation Administration.
Upon their return to Capitol Hill, members of the House and Senate must reconcile significant differences in spending levels for FY 2024 across 12 appropriations bills. The House’s top line numbers are lower than the caps agreed to in the bipartisan debt limit agreement, while the Senate Appropriations Committee agreed to raise funding levels for their defense bill. Neither side is eager to budge from their respective stances, raising the possibility of a government shutdown if members are unable to agree to a short-term spending measure that would give Congress more flexibility for negotiations.
While Congress is away, the Biden Administration will continue making progress on its regulatory agenda. Now that the White House has publicly signaled its intention to allow Julie Su to serve as Acting Secretary of Labor, the department is expected to release its new, proposed Overtime Rule next month. The new rule will raise the exempt salary threshold for employees, though we don’t yet know to what extent. The Environmental Protection Agency (EPA) is also expected to use August to finalize the development of a new Waters of the United States (WOTUS) rule that is consistent with the Supreme Court’s Sackett v. EPA ruling. EPA has indicated they expect to issue an amended final rule by Sept. 1, 2023.
WWU emails will resume on September 12, however, special member alerts will be sent if or when there are significant developments on regulatory actions. Enjoy what remains of the summer!
Appropriations: What We Know So Far
- Interior-Environment: The House version includes a policy rider that would repeal the Biden Administration’s new definition of waters (WOTUS) protected under the Clean Water Act. The Senate version includes language regulating the discharge of dredge or fill material into waters of the United States, including wetlands.
- Labor-HHS-Education: The House version includes language delaying the Department of Labor’s (DOL) proposed independent contractor rule, and prohibits DOL from enforcing the corresponding employment or the three-fourths guarantee provisions in the 2015 H-2B regulation. The Senate version includes language encouraging DOL to take steps to ensure prompt processing of H–2B visa applications and to minimize future interruptions to the H–2B visa program. The Senate version also includes language directing the CDC to research the relationship between heat stress and workplace illnesses, and to identify practices to improve data collection on heat-related injuries.
- Homeland Security: The House version includes a provision that would exempt from the annual 66,000 visa cap returning workers who were issued H-2B visas during one of the previous three fiscal years. The Senate took up its version of the spending bill in committee this week. During the debate, Senators Murkowski (R-Alaska) and Van Hollen (D-Md.) offered an amendment that would have exempted returning workers and seafood workers from the cap. In a common procedural amendment, they withdrew the amendment after a commitment was made from the committee chair to work on H-2B cap relief before the bill moves to the Senate floor. This is a positive development because both the House and Senate Appropriations Committees are on record as supporting the H-2B cap relief in the bill.
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.