Washington Update Archive

April 2011 Government Affairs Update

At A Glance

• Dramatic Changes Proposed to the H-2B Program
• EPA/Army Corps of Engineers Release Guidance to Clarify Clean Water Act Authority
• 1099 Repeal Legislation Signed Into Law
• NAR Testifies at NFIP Hearing; Subcommittee Passes Legislation
• Boxer Introduces Nat Cat Research Bill

Dramatic Changes Proposed to the H-2B Program

The federal Department of Labor (DOL) has proposed sweeping changes to the existing H-2B program that may make it more difficult for employers to utilize the program effectively. On March 18, 2011, the DOL proposed to amend the H-2B program, which allows non-agricultural employers to hire temporary workers. Comments on the proposed changes are due on or before May 17, 2011. The resort real estate industry relies on these workers to provide many services in resorts and enhance the quality of these communities, such as landscaping, wait staff and lifeguards.

The proposed amendments would significantly change how the H-2B program is operated. Highlights of these changes include changes to the employer recruitment process, revised definitions of temporary and full-time employment, changes to how housing and transportation costs are calculated, and the creation of a national registry of H-2B employment opportunities. Taken together, these proposed changes would unnecessarily burden employers by adding costly and time-consuming paperwork and administrative requirements, and would eliminate the flexibility employers need to effectively manage their workforce. In addition, enforcement of these new rules by the federal government would be costly to taxpayers and create additional burdens on small businesses.

NAR is participating in the H-2B Workforce Coalition. This is a large coalition of industry sectors that utilize the H-2B program, and is developing a comprehensive comment letter on these proposed program changes and has held educational meetings for members of Congress on the impact of these changes on the private sector.

EPA and the Army Corps of Engineers Release Draft Guidance to Clarify Clean Water Act Authority

On April 26, 2011, EPA and the Army Corps of Engineers released draft guidance designed to “clarify Clean Water Act responsibilities.” NAR has concerns regarding this draft guidance document for the following reasons:

• This draft guidance document broadens the traditional definition of “waters of the U.S.”, as defined in the Clean Water Act, without Congressional authority.
• A broader definition of “waters of the U.S.” will subject additional water bodies to time – consuming permits and costly regulation.
• A broader definition of water infringes on property rights by decreasing the amount of property an owner can use without just compensation.
• This kind of guidance will slow future development activities and further confuse the subject of what bodies of water are subject to the Clean Water Act and to permitting and regulation activities.

EPA should not move forward with the guidance or any kind of rulemaking to attempt to define “waters of the U.S.”. Only Congress can amend the Clean Water Act. NAR will be commenting on this draft guidance document and will work with members of the Waters Advocacy Coalition to address these concerns with federal government officials and members of Congress.

1099 Repeal Legislation Signed Into Law

President Barack Obama signed into law, on April 14, a bill repealing expanded Internal Revenue Service Form 1099 reporting requirements. The law repeals Section 9006 of the Patient Protection and Affordable Care Act of 2010 that would have required businesses to fill out 1099 forms for both goods and services valued at more than $600 starting in 2012. Businesses are still required to report payments through a 1099 form for services of more than $600. The “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011” was introduced in the House of Representatives on Jan. 11. It passed the House on a vote of 314 to 112 on March 3, and passed the Senate on April 5 on a vote of 87 to 12.

NAR Testifies at NFIP Hearing; Subcommittee Passes Legislation

Terry Sullivan, Chair of the Land Use, Property Rights and Environment Committee, testified on Friday, March 11 before the House Subcommittee on Insurance, Housing and Community Opportunity, Financial Services Committee, chaired by Rep. Judy Biggert (R-IL). His testimony is attached. The focus of the hearing was on Rep. Biggert's bill (H.R. 1309) that, among other provisions, reauthorizes for five years the National Flood Insurance Program (NFIP), which expires on Sept. 30, 2011. NAR's testimony discussed: (1) the critical role the NFIP plays in housing markets nationwide; (2) the need for a long-term reauthorization of the program; (3) concerns regarding efforts to privatize the program; and (4) steps that need to be taken to make the program more actuarially and financially sound.

On April 6, H.R. 1309 passed out of the Insurance, Housing and Community Opportunity Subcommittee by voice vote. The full Financial Services Committee has scheduled a markup on this legislation on May 12th.

Read Terry Sullivan's testimony >

Boxer Introduces Nat Cat Research Bill

Senator Barbara Boxer (D-CA) has introduced S. 646, the Natural Hazards Risk Reduction Act, which would reauthorize and strengthen existing federal programs for earthquake and windstorm research, outreach and voluntary state grants. NAR has sent a letter to Sen. Boxer to thank her for introducing this legislation, which is an important first step toward the development of a proactive national policy on affordable and available property insurance. Currently this is the only bill in Congress that addresses the property insurance issues that are critical to Realtors. This legislation will raise the profile of these issues and keep it on the congressional radar screen. NAR's letter and a link to the legislation are attached:

Read the letter to Sen. Boxer >