Deem & Pass… its a term of art derived from the U.S. Senate’s playbook, I mean rulebook. Senate leadership from both parties are close to reaching an agreement that could allow Senators to vote on the IFA-supported Johanns (R-NE) amendment to repeal the expanded 1099 reporting requirements.
A second-degree amendment is being offered by Sen. Menendez (D-NJ) that would require a study be conducted to determine if the pay-for included in the Johanns amendment would be detrimental. If the Dept. of Health & Human Services did find it detrimental, then the 1099 reporting provision could go back into law.
The Menendez vote paves the way for Senators who disagree with the way 1099 repeal is paid for to vote against it.
We are hopeful the Johanns amendment will pass and the Menendez amendment will fail to reach the 60 vote threshold required to amend the 1099 repeal legislation that has already passed the House of Representatives.
If Senate leaders agree to the terms of debate moving forward, the Senate may “Deem & Pass” the Johanns amendment and send it directly to the President for his signature–possibly as soon as this week.
While the White House does not agree with the way the 1099 repeal is paid for, President Obama has not issued a veto threat.
This long, strange legislative voyage is getting closer to being over. Keep your fingers crossed, and keep calling your Senators to support the Johanns amendment!
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Posted by Jason Straczewski, IFA Senior Director of Government Relations & Public Policy
For those folks in the franchise world checking the news at night, you might see that the Senate is currently plodding its way through a small business reauthorization bill.
The SBIR Reauthorization would help small businesses gain better access to federal contracting opportunities and new technology contract awards through agencies like the Department of Defense.
While the SBIR Reauthorization would not benefit all franchise businesses, it certainly assists those entrepreneurs seeking to compete on a level-playing field with large corporations.
One item IFA is tracking and supporting a bipartisan amendment offered by Sen. Mike Johanns (R-NE) and Sen. Joe Manchin (D-WV) to include the House-passed 1099 repeal legislation.
If their amendment receives a vote on the Senate floor, it is unlikely that the SBIR Reauthorization package would be the vehicle to get 1099 repeal to President Obama’s desk… but I would never say never.
The more likely path for 1099 repeal is for an agreement to be reached among Senators on the House-passed bill, H.R. 4, that gets it to the White House.
The long and winding road for the elimination of the expanded 1099 reporting requirements continues… stay tuned.
Posted by Jason Straczewski, IFA Senior Director, Government Relations & Public Policy
Do you have WILL POWER? 45 franchise execs join the cast to take a startup energy business from day 1 to a worldwide franchise system with lots of lessons learned along the way. And CFE credits!! One of 8 CFE Special Sessions presented at the Convention.
Posted by John Reynolds, President, IFA Educational Foundation