Dear WH&LA Member:
We have a number of updates for you today - broken into Federal Issues and State Issues, with a number of time-sensitive opportunities to weigh in with decision makers.
FEDERAL ISSUES
I. Challenges to the J-1 Cultural Exchange Visa Program.
Numerous sources are reporting that the "Buy American, Hire American" (BAHA) Executive Order issued by the Administration in April requiring a review of certain current legal visa work programs, may include threats to the J-1 Cultural Exchange Visa Programs utilized by a number of heavy tourism areas in Wisconsin. The J-1 Visa Program allows foreign students to spend up to four months living and working in temporary jobs in the U.S. with approximately 300,000 such visas issued annually. Communities such as Wisconsin Dells and Door County, but also others in Wisconsin rely on the J-1 Visa Program to enable areas with lower populations (and potential workforces) to service the volume of travelers coming to their area seasonally. Insiders are reporting that White House Officials are considering significant reductions or restrictions in this program, and they may act as soon as later this week.
What Can You Do?
Immediate action is needed by those who value the J-1 Visa Program!
- To view further information, go to the Americans for Cultural Exchange website or the Alliance for International Exchange website - both of which offer links to immediate lobbying messaging.
- Through one of the portals listed in the above, contact your Republican Wisconsin Congressional leaders, who may have the most influence with the White House. This would be Senator Ron Johnson and Speaker Paul Ryan, or Representatives Jim Sensenbrenner, Glenn Grothman, Sean Duffy, and Mike Gallagher. Ask them to ask the White House to not change the J-1 Visa Program, as Wisconsin communities such as yours rely on this program to not only provide a valued cultural diversity service to international students, but also to ensure that you have the workforce not available locally to deliver services to your guests to keep you in business!
II. New Comment Opportunities on Overtime Rule Changes
The significant increase in the Overtime Salary Threshold by the previous administration that was put on hold after the elections, is now under review again by the new Administration. Labor Secretary Alexander Acosta earlier this year stated that the threshold proposed by the Department of Labor (DOL) under the Obama Administration was excessive (more than doubling the threshold from $23,660 to $47,476) and too burdensome for many employers, however he also suggested that the current minimum salary level should be updated. The DOL recently opened up the topic for public input, with a comment deadline of September 25, as their first step in their plan to revise the regulations.
What Can You Do?
For the formal notification go to the
Federal Register website
and for a 2-page brief noting the eligible eleven questions you may reply to and where to go to remit online, click here. Please note you can choose which questions to submit comment on - it does not have to be on all eleven questions. This list is just what they will accept comment on.
STATE ISSUES
With the state budget closing in on two months past due, and current allocations frozen at the last fiscal year levels to allow for continuation, it now appears that Joint Finance Committee will conclude their Budget Proposal next week, which will then move to both the state Senate and the State Assembly for consideration, final caucusing, and approval before going to the Governor for approval, with his veto options to consider. It is currently anticipated that all should be done by end-September, however this is just an estimate as the dynamics of the Foxconn proposal are being considered concurrently. The following are just a few issues still under consideration - whether by Joint Finance Committee or for possible later introduction as stand-alone bills.
Personal Property Tax Changes.
The WH&LA is part of a large coalition pursuing the reduction or eventual elimination of the Personal Property Tax charged by many municipalities on businesses each year on tangible equipment, fixtures, supplies, and more, an antiquated tax that is in addition to the sales tax paid when purchases are made. As this would put an estimated hole in municipal budgets of approximately $260 million collectively and the state cannot currently afford to make up this subsidy to municipalities, an alternate plan is on the table, but still under negotiation that would add new exemptions as a first step. It is currently projected that non-manufacturing machinery and equipment will become exempt starting in 2018, which may help those with restaurants and laundry machinery.
Underage Drinking Liability.
The Assembly version of a bill targeting reducing underage drinking by setting the responsibility on adults on premise passed out of Committee in June with an amendment requested by the WH&LA that clarified that lodging owners and operators would not be responsible for underage drinking in rooms, but the adult paying for the lodging would be. Last week the Senate Committee held their hearing and introduced a companion amendment with the same protection, with WH&LA again providing testimony seeking such. The Senate committee is scheduled to vote on this tomorrow with passage anticipated.
Short-Term Rentals.
The WH&LA has been actively pursuing leveling the playing field on residential dwelling rentals, which has been actively opposed by an influential national lobby group representing online short-term rental companies. We remain hopeful that some of the negotiations that we have made will be sufficiently supported by Joint Finance and leadership to make these commercial rentals compete legitimately with other lodging options, but it remains uncertain through what vehicle this will be accomplished.
Transportation Budget.
It appears that a compromise between the Governor, the Assembly, and the Senate is being finalized to establish key funding for the transportation needs in the state, and this budget is on the agenda for Joint Finance next Tuesday, a major day for Budget issues to wrap up.
Superior Expo District.
We have heard that this proposal currently targeting just the city of Superior, may be poised to move forward. While some components enabling major improvements to downtown Superior may be admirable, at the same time part of the funding package adds another 2.75% room tax for city lodging properties, which would make their total room tax the highest in the state AND put them almost 2% higher than Duluth, a major competitor market. This also could set the stage for other cities to try to get similar funding with added room taxes elsewhere, another point of precedent concern.
There are many other bills and topics of interest to our industry that WH&LA is monitoring and engaged in on your behalf. Future updates will be provided as possible. As always, your support is appreciated!
Best,
Trisha
