Washington Report - September 19, 2023

Corporate Transparency Act
This week, WMMA signed onto a letter in support of legislation (the Protecting Small Business Information Act of 2023—H.R. 4035) that would delay burdensome reporting requirements imposed on small and medium-sized businesses under the Corporate Transparency Act (CTA). The statute was enacted in 2020 with the stated purpose of curtailing money laundering, terrorist funding and other criminal activities. The law requires frequent reporting to the Department of Treasury’s Financial Crimes Enforcement Network (FinCen) beginning January 1, 2024. Unfortunately, the law applies to companies with under $5 million in annual revenue and fewer than 20 employees. Failure to comply with the reporting requirement will incur a $500 per day penalty and fines up to $10,000 and imprisonment up to 2 years.

The law is pretty specific on who has to report and the types of information that must be reported. The problem is that FinCen has not developed any plans for communicating to business owners their upcoming obligations under the CTA. Also, key rulemakings on important aspects of the law have not been finalized. H.R. 4035 simply delays CTA from taking effect until FinCen finalizes these rules. Seventy-nine other organizations signed the letter along with WMMA. The letter may be found here. 

Vehicle Choice Legislation
On Thursday, the full House passed H.R. 1435, the Preserving Choice in Vehicle Purchases Act. The bill would prohibit states from implementing electric vehicle purchase mandates.

In August 2022, the California Air Resources Board—the state’s lead environmental agency— announced new regulations banning gas-powered cars and mandating electric cars by 2035. In addition, another 17 other states have laws that link their vehicle emissions standards to those set in California, meaning the electric vehicle mandate would impact tens of millions of consumers across the country. It is estimated that the states adopting California's 2035 rule represent more than 40 percent of total U.S. car purchases.

H.R. 1435 would simply prohibit the Environmental Protection Agency (EPA) from issuing waivers to states seeking to ban or limit internal combustion engine vehicles. Although the legislation passed the House along party lines, it will not move in the upper chamber. The bill does have a companion in the Senate—S. 2090 sponsored by Sen. Markwayne Mullin (R-OK)—but it only has Republican cosponsors and is not supported by Democrat leadership or the Administration.

DOL Overtime Pay Rulemaking
Late last month, the Department of Labor (DOL) proposed an overtime pay rule that would raise the salary threshold for salaried workers to automatically qualify for overtime compensation. According to the Department of Labor, the proposed rule would guarantee overtime pay for most salaried workers earning less than about $55,000 per year, extending overtime protections for 3.6 million Americans.

Specifically, DOL is proposing an increase of the minimum salary threshold for overtime eligibility under the Fair Labor Standards Act to $1,059 per week, or $55,068 per year. The proposed threshold would mark an increase from the current level of $35,568 per year — set by the Trump administration in 2019 — and exceeds the $47,476 level proposed by the Obama administration in 2016.

Once published in the Federal Register, the proposal will be subject to a 60-day public comment period.

Jobs in the Woods Act Introduced
This week Representatives Lori Chavez-DeRemer (R-OR-5) and Marie Gluesenkamp Perez (D-WA-3) introduced the bipartisan Jobs in the Woods Act (H.R. 5344). The legislation would create a grant program for nonprofit organizations, state governments and colleges to utilize for workforce training in forestry and wood products-related fields – helping prepare students for jobs in the U.S. Forest Service and the timber industry.

Nearly 60 forestry and forest product associations have signed on in support of the Jobs in the Woods Act.

Below are statements from Representatives Chavez-Deremer and Gluesenkamp Perez.

“As I crisscross the 5th District, I’ve heard repeatedly from constituents in forestry-related industries that a lack of workers is negatively affecting their operations. Our bipartisan legislation will help expand education opportunities in an effort to grow our workforce. I’d like to thank Congresswoman Gluesenkamp Perez for introducing this bill with me – it will greatly benefit forestry-related commerce across the Pacific Northwest,” Chavez-DeRemer said.

“The only way we’ll keep the woods working for future generations is if we provide the next generation a pathway to pursue careers in forestry,” said Gluesenkamp Perez. “This bipartisan bill will make that possible and connect people to careers in this critical field that is essential to Southwest Washington.”

The goal is to have provisions of H.R. 5344 included in the upcoming Farm Bill reauthorization measure.

Government Funding
WMMA attended a number of political events this week for Members of Congress where the topic of a government shutdown inevitably arose. Most believe that a shutdown of some duration is inevitable, either October 1 when the current government funding measure runs out or later this fall. Speaker McCarthy’s announcement earlier this week green lighting an impeachment inquiry into President Biden’s actions was seen as a bargaining chit to persuade members of the House Freedom Caucus to vote for a short-term Continuing Resolution. It is uncertain whether that announcement will be enough, however, as certain Members continue to insist that any CR include border security and other provisions that are not supported in the Senate. We will keep you apprised of what we are hearing.