Have a legislative issue that concerns you?
Call PBA's Government Affairs Hotline to discuss your issue and find practical ways to get involved.
Government Affairs Hotline
800.468.2274 x3437
The 2008 legislative calendar has been extremely active at the federal and state level. As the voice of the beauty industry, PBA monitors the political landscape and is a vocal advocate on public policy issues that impact our members—in Washington, DC and beyond. To learn more about any of these legislative issues, visit probeauty.org/advocacy or call the Government Affairs Hotline at 800.468.2274 x3437.
The Energy and Commerce Committee's Subcommittee on Health is currently working on draft legislation known as the "Food and Drug Administration (FDA) Globalization Act of 2008." The draft legislation includes mandatory registration of "any facility engaged in manufacturing, processing, packaging or holding cosmetics in the United States or for import" into the United States. Registration is required on an annual basis and facilities will be subject to a $2,000 registration fee. Other provisions include mandatory adverse event reporting, mandatory facility inspections and an annual registration fee of $10,000 for imports. PBA is concerned that the current language is overly ambiguous and a burden on small businesses. PBA is working with other industry organizations to examine the full impact of the proposed legislation.
Status - Currently in draft form; more intense action likely in 2009.
$11,000 is what the average salon loses in tax credits for taxes paid on employee tips. There is legislation pending before Congress that would give salon and spa owners a dollar-for-dollar tax credit on the 7.65% FICA taxes paid on tip income. The restaurant industry secured a FICA tax credit several years ago - and PBA is working hard to advance this issue for our members. The Small Business Tax Equalization & Compliance Act (or HR 3016) currently has 29 bi-partisan cosponsors in the House of Representatives.
Status - HR 3016 currently pending in the U.S. Congress.
Action Alert - PBA members are strongly encouraged to contact their members of Congress.
The Environmental Protection Agency (EPA) is on the cusp of amending the 1998 national Volatile Organic Compound (VOC) emission standards for consumer products. The VOC standards regulate a variety of consumer products—from air fresheners and engine cleaners to hairsprays and nail polish removers. Although the timeline has been a moving target, the EPA has indicated that they anticipate a public release of the proposed amendments in September of this year. The EPA is expected to increase the number of product categories regulated from 24 to 56. Additionally, the VOC limits for most categories will be lowered. For hairspray in particular, the EPA is following the lead of the Ozone Transport Commission's (OTC) model rule by lowering VOC content limits from 80% to 55%. For about a dozen states, the 55% limit is already the standard. Additionally, several more states are implementing a 55% content limit in January 2009.
Status - EPA expected to issue final rule in April 2009.
San Francisco and Washington, DC became the first two cities to approve mandatory paid leave laws for small business employees - and we're likely to see many more proposals at the state level in the coming year. Paid sick leave mandates assume that small business owners do not provide flexible leave policies, which isn't true. While it's difficult for a small business to fill a gap when an employee is absent, according to a recent Small Business Poll, 96% of small business owners provide flexible working hours for employees when personal situations arise and 75% already voluntarily offer some form of paid sick leave to employees. PBA's policy position opposes government regulations like mandatory paid sick leave because they force small business owners to implement policies that may not be in the best interest of their company—or their employees.
Status - California legislation died in 2008; likely to see strong activity in many more states in 2009.
A permanent repeal of the use of the "Last-In, First-Out" (LIFO) inventory accounting method would translate into a massive tax increase for hundreds of thousands of American businesses. LIFO is an inventory accounting method used by companies throughout the U.S. economy to determine both book income and tax liability. The restricted use or outright repeal of LIFO is likely to have far-reaching and potentially damaging effects on companies within the professional beauty industry that rely on effective inventory management to remain profitable. Distributors, which by definition hold and maintain extensive inventories, could be seriously impacted by a loss of revenue through a largely increased tax burden. Although the proposed repeal of LIFO was recently defeated in Congress, it is very likely that this topic will resurface - particularly given the increased pressure from Congress to close the federal "tax gap."
Status - Potential to resurface in 2009.
The so-called Employee Free Choice Act, also known as "Card Check," is legislation by the nation's labor unions aimed at folding more employees into union membership. The legislation would completely change the economics of union organizing by making it cost effective for unions to go after Main Street businesses, small service and retail establishments and industries that have never experienced unionization before - including the beauty industry. With Card Check, once a union persuades more than half the workers to sign membership cards, the union would automatically be certified. Workers would be members of the union even if they had refused to sign the card—and it would be illegal for workers to hold a secret ballot election. Another strategy is allowing the creation of "mini-unions." Union organizers would be allowed to sign up two or three employees in a business and then a so-called mini-union is created. As with any union, employers would have to collectively bargain with employee unions.
Status - Bill was approved by the House of Representatives, but died in the U.S. Senate. Extremely likely issue will resurface in 2009.