D.C. Update 05/10/2013
Lawmakers returned to the nation’s capital on May 6 after a one
week recess to face a crowded agenda. In the Senate, a number of
issues of interest to California’s counties have continued to
dominate the chamber’s legislative calendar, including
immigration reform and a reauthorization of the Water Resources
Development Act (WRDA). The Senate also approved this past week
legislation endorsed by CSAC that would give states the ability
to collect sales taxes from out-of-state Internet retailers.
In the House, lawmakers spent much of the week debating
legislation (HR 1406) that would allow private employers to
provide time off instead of premium pay to employees who work
overtime. Under the bill, non-exempt private sector employees
would be allowed to accrue up to 160 hours of compensation time a
year; employers would be required to pay cash wages for any
unused time at year’s end. The legislation was approved on a near
party-line vote, with Democrats charging that the bill would
threaten workers’ rights.
The House also approved legislation (HR 807) that would allow the
Department of the Treasury to continue borrowing once the debt
ceiling is reached, but only to pay down the principal and
interest on government debt held by the public and on obligations
to Social Security. The measure, approved on a near-party line
vote, will likely not be considered in the Senate and is opposed
by the Obama administration. According to opponents of the bill,
the measure would prioritize holders of public debt, including
foreign governments, over military members and other individuals
who receive government assistance.
It should be noted that the House is expected to turn more of its
attention to immigration reform, remote sales tax legislation,
and WRDA in the coming weeks and months.
Remote Sales Tax
On May 6, the Senate approved remote sales tax legislation – the
Marketplace Fairness Act (S 743) – by a vote of 69-27, with the
support of Senators Dianne Feinstein (D-CA) and Barbara Boxer
(D-CA). Specifically, the measure would give states the ability
to collect sales taxes from out-of-state Internet
retailers.
Among other things, S 743 would require online merchants to
collect the full destination rate – the applicable state and
local tax rate – on each sale made over the Internet. In order to
benefit from the Act, however, states would be required to
streamline their sales tax administration. It should be noted
that retailers with less than $1 million in remote sales annually
would be exempt from any collection requirements.
Prior to clearing the measure, the Senate voted to adopt a
manager’s amendment that would delay implementation of the bill
for six months, rather than three months as initially proposed.
Additionally, the amendment would prohibit states from imposing
sales tax requirements on Internet merchants that are any
different from those required of “brick and mortar”
retailers.
House leaders have yet to lay out a timeline for when they plan
to consider the issue, but the strong vote in the Senate should
put additional pressure on the lower chamber to act. Unlike the
Senate, the House is more likely to proceed through regular
order, meaning the Judiciary Committee will consider the bill
before it moves to the House floor. For his part, House Judiciary
Committee Chairman Bob Goodlatte (R-VA) has indicated that he is
open to considering a remote sales tax bill, but is concerned
about the challenges faced by businesses in collecting and
remitting sales taxes for various states, counties, and
municipalities.
Water Resources Development Act
After finishing work on the remote sales tax measure, the Senate
moved to consideration of its WRDA reauthorization bill (S 601).
Senators held the first series of votes on May 8, dispensing with
several amendments to the water resources measure.
While the bipartisan WRDA package remains highly popular among
members, there has been some controversy surrounding the bill as
environmentalists have strongly criticized the legislation’s
language designed to expedite environmental reviews of projects
that fall under the jurisdiction of the U.S. Army Corps of
Engineers (Corps).
Somewhat complicating matters, the Obama administration released
on May 6 its Statement of Administration Policy (SAP) on the
legislation. While the White House stopped short of issuing a
veto threat, it did register deep concerns with certain
provisions of the bill, particularly the bill’s project
streamlining provisions. In its SAP, the administration states
that the “bill constrains science-based decision making,
increases litigation risk, and undermines the integrity of
several foundational environmental laws…”
In an effort to address some of the key sticking points in the
bill, Senate Environment and Public Works Committee Chairwoman
Barbara Boxer released a manager’s amendment that includes a
number of changes to S 601. Among other things, the manager’s
amendment would require the Corps to collaborate with other
resource agencies that are responsible for reviewing the
environmental impacts of a project. It also would require the
concurrence of all agencies involved in developing a coordination
plan and setting deadlines for completing reviews of a
project.
It should be noted that the manager’s amendment kept intact the
legislation’s levee vegetation provisions. Under Section 2020 of
the bill, which is strongly supported by CSAC, the Secretary of
the Army would be required to conduct a comprehensive review of
the Corps’ levee vegetation removal policy. In doing so, the
Secretary would be required to consider factors that promote and
allow for variances from the national guidelines on a regional or
watershed basis. Additionally, the bill would require the
Secretary to solicit and consider the views of the National
Academy of Engineering as part of the review process.
Finally, the manager’s amendment settles a dispute between
authorizers and appropriators over control of the Harbor
Maintenance Trust Fund, which is designed to pay for dredging and
other harbor projects. Under the revised language, the amount of
money available from the Harbor Maintenance Trust Fund would be
increased, starting at a minimum of $1 billion in fiscal 2014 and
increasing annually until fiscal 2020, when all dollars directed
toward the fund would need to be available for dredging and other
port activities. Currently, only about $900 million of the $1.6
billion collected annually through user fees on shipping
companies is spent for such purposes.
Looking ahead, Senate Majority Leader Harry Reid (D-NV) has filed
cloture on the bill, setting up a possible final vote on the WRDA
bill for sometime next week.