Omnibus Appropriations Bill Approved
On December 18, 2015, an omnibus appropriations bill that will fund the government was passed by Congress and signed by the President. This bill is a package of all 12 annual appropriations bills and will fund all government agencies and programs until the end of the fiscal year, September 30, 2016.
The omnibus bill contains several provisions that impact the horse industry, including reforms to the H-2B temporary guest worker program, the U.S. Department Agriculture (USDA) FY 2016 appropriations bill, defunding of horse slaughter, and reauthorization of the Land and Water Conservation Fund (LWCF).
“Notably, the bill includes several beneficial provisions relating to the H-2B temporary, non-agricultural worker program and would roll back some of the most onerous provisions of a 2015 H-2B rule,” said AHC president Jay Hickey. “The AHC has been working to ensure these provisions were included in the omnibus bill and on reforms to the program for years. These provisions will make the H-2B program less burdensome for employers, including those in the horse industry.”
“The bill contains vital funding for the USDA Animal and Plant Health Inspection Service (APHIS,) which is responsible for protecting and responding to contagious equine disease outbreaks. The bill also includes funding for enforcement of the Horse Protection Act (HPA). Adequate funding for APHIS, equine health, and the HPA are important for the welfare of U.S. horses and the economic health of the horse industry,” said Hickey.
The bill includes language that prohibits USDA from using any funds to provide inspectors at meat processing facilities that slaughter horses, continuing a block that begin in 2005, except for a brief period in 2012 and 2013.
No horse slaughter facilities are operating in the U.S. and this bill would effectively prevent any such facility from opening before September 30, 2016.
The language was included in the omnibus bill because the Senate Appropriations Committee adopted an amendment that prohibited funding for inspectors at horse slaughter facilities when they debated and approved their version of the FY 2016 USDA appropriations bill. The Senate amendment was offered in committee by Senator Tom Udall (D-NM) and passed by a voice vote.
The bill will also reauthorize the Land and Water Conservation Fund (LWCF) for three years with funding of $450 million for the coming FY 2016, a nearly 50 percent increase over the previous level. LWCF provides funds and matching grants to federal, state and local governments for the acquisition of land and water for recreation and the protection of natural resources.
“The LWCF program had expired this year and there was some concern it might not get reauthorized in a timely fashion,” said AHC vice president of government affairs. “The program is responsible for adding millions of acres to the national parks system, national recreation areas, and state and local parks that include many trails for equestrians.”
More details about the bill can be found here: https://horsecouncil.org/press-release/congress-approves-omnibus-bill-to-fund-government/
Congress Passes Tax Bill with Horse Benefits; President Signs It
(Washington, DC)- In what might be seen as a thaw in Congressional relations, a bi-partisan tax bill, with multiple provisions favorable to the horse industry, has been passed by Congress. Although the bill has now touched down safely, there were a few gusts and swells that threatened its passage right up to the end. President Obama signed it immediately.
The $622 billion bill extends or reinstates multiple tax provisions that have been raised, lowered, or allowed to expire over the last decade. Some have now been made permanent in the new bill; others extended for one or two years; but all are retroactive to January 1, 2015 so horse owners and industry stakeholders can take advantage of them for this year.
The bill, called the Protecting Americans from Tax Hikes Act of 2015, includes several provisions important to the horse industry and championed by the American Horse Council for some time. These benefits include making all race horses depreciable over three years; the ability to immediately expense or write-off up to $500,000 in depreciable business property; and bonus depreciation, which allows the deduction of 50% of the cost of new property purchased and placed in service. All of these provisions apply to horses and other assets used in a horse business.
The bill reinstates the 3-year-depreciation schedule for all race horses for all of 2015 and 2016. “This means that if an owner has begun training or racing a horse this year, or will begin training or racing it next year, the three-year depreciation schedule will apply. Owners and trainers don’t have to get involved in deciding when to begin training the horse to qualify for the 3-year period, rather than 7 year; it is automatic for all race horses placed in service in 2015 and 2016. The provision allows horse owners to begin training their race horses when they think best and take advantage of the shorter three-year period,” noted American Horse Council president Jay Hickey. “Most horses race over three years, not seven, so this is really a fairer schedule.”
The bill also raises the so-called Section 179 business expense deduction back to $500,000 and makes it permanent, effective January 1, 2015. It had reverted to $25,000 for 2015. This change will allow anyone in the horse business to immediately depreciate up to $500,000 of the cost of any investment in industry assets, including horses, fences, equipment, tack, trucks, etc., purchased and placed in service in 2015 and 2016. The deduction is still reduced dollar-for-dollar once investments in all one’s business activities hit $2 million.
“The 179 expense deduction is a real stimulus to the $102 billion horse industry and will support thousands of jobs,” said Hickey. “And it applies to all depreciable assets used in the horse business, including horses, be they yearlings, race or show horses, mares, stallions, or breeding shares.”
The bill restores bonus depreciation for qualifying new property, including assets used in the horse business, such as yearlings and other equipment, purchased and placed in service during 2015 through 2019. It had expired for 2015, but is now restored to 50 percent for business property placed in service during 2015, 2016 and 2017. It then phases down to 40 percent in 2018, and 30 percent in 2019. The first use of the horse or equipment must begin with the taxpayer. Yearlings are eligible for bonus depreciation and new equipment, but not horses like mares or stallions that have raced, shown, or been bred, since they have already been used.
The extender bill would also restore and make permanent favorable tax treatment for land donated for conservation purposes, particularly land donated by farmers and ranchers.
“The AHC has been working to have all these provisions increased or reinstated and is pleased they have been acted upon. They have been made retroactive to cover all of 2015. “We had hoped these provisions would have been extended earlier in the year. This would have made planning and decisions to invest in the horse business easier. Congress apparently follows the ‘better late than never schedule’,” said Hickey.
Recreational Trails Program Reauthorized
Grassroots efforts from equestrians played important role in making sure RTP was included in the FAST Act
(Washington, DC)- Congress has passed and the President has signed a multi-year national highway bill known as the Fixing America’s Surface Transportation Act, or the FAST Act. The bill reauthorizes the Federal Highway Administration’s Recreational Trails Program (RTP) for the next five years and provides $85 million annually for the program.
The last highway bill was set to expire in December and Congress has been working on various versions of a national surface transportation bill for most of this year. During the Congressional process several attempts were made to eliminate the RTP program from the bill. However, these attempts were unsuccessful.
“We are very pleased RTP was included in the FAST Act. Every time a multi-year national highway bill is debated there is always an attempt to eliminate this program and this time was no different,” said AHC vice president of government affairs Ben Pendergrass. “Grassroots support from recreational trail users, including many equestrians, played an important role in making sure RTP was included in bill. The AHC appreciates all the individual horsemen and organizations that contacted their Representatives in support of RTP.”
“Strong support from Congressional champions of the program, particularly Senators Amy Klobuchar (D-MN), James Risch (R-ID), Richard Burr (R-NC) and Jeanne Shaheen (D-NH), as well as Representatives Hanna (R-NY), Rick Larsen (D-WA), Tim Walz (D-MN) and Jaime Herrera Beutler (R-WA), was also essential to preserving the program,” continued Pendergrass.
Since its inception RTP has provided money for thousands of state and local trail projects across the country, including many that benefit equestrians. RTP provides funding directly to the states for recreational trails and trail-related facilities for all recreational trail users. It is funded with a portion of the gas taxes paid into the Highway Trust Fund by recreational off-highway vehicle users.
To learn more about the program and find information about contacting your state RTP administrator for guidance on State policies and project eligibility requirements visit https://www.fhwa.dot.gov/environment/recreational_trails/. You can also look up the projects funded in your state in the RTP project database.
The AHC has advocated for the RTP program since its inception and is an active member in the Coalition for Recreational Trails (CRT). CRT is federation of national and regional trail-related organizations formed exclusively to build awareness about and protect the RTP program.
“It is a victory for all recreational users that RTP has been reauthorized. However, Governors still have the option to opt out of the program. This year only one state has done this (Connecticut) so it is important that recreational riders stay vigilant against any attempts to eliminate the program in their state,” said Pendergrass. “Additionally, if you have a trail project in your area you would like to see receive funding the AHC encourages you to visit the RTP website and contact your state RTP administrator.
National HBPA Supports AHC Welfare Code
The National Horsemen’s Benevolent & Protective Association is the latest organization to endorse the American Horse Council’s (AHC) Welfare Code of Practice.
The AHC Welfare Code of Practice is a broad set of principles designed to establish good welfare procedures for organizations to follow to “Put the Horse First.” The code outlines in broad strokes what principles organizations are committed to in breeding, training, competing, transporting, enjoying, and caring for their horses. The code encourages everyone to consider the health, safety, and welfare of their horses in all aspects of their activities, including the social and ethical issues.
“The National HBPA along with its supportive affiliates and members strongly support the Welfare Code of Practice established by the American Horse Council. The embodiment of the Code to ‘Put the Horse First’ rings true with our membership and supports our mission statement. Being a part of the Welfare Code should be an indication to everyone looking at the equine industry as a whole, that our goal is to uphold the health and welfare of the horse,” said Eric J. Hamelback CEO of the National HBPA.
The AHC’s code is not intended to supersede an organization’s rules or regulations. Any organization’s more specific rules still govern activities sanctioned and regulated by the organization. Rather the code is a compliment to any such rules and restates the principles to be followed by breed registries, trade associations, various disciplines and the horse community as a whole in pursuing their equine activities.
To review the AHC Welfare Code of Practice, a list of the 52 organizations supporting the code, and a FAQs page, please visit the AHC Website at ahcbeta.flywheelsites.com.
Recreational Trails Program Included in House Passed Highway Bill
On November 5, 2015, the House of Representatives passed its version of a multi-year national highway bill known as the Surface Transportation Reauthorization and Reform Act of 2015 or STRR Act. The bill would reauthorize the Federal Highway Administration’s Recreational Trails Program (RTP).
During the debate of the bill, two amendments were filed that would have eliminated the RTP Program. However, one amendment was withdrawn and one amendment did not receive a vote. The RTP program will continue un-changed if this bill becomes law.
Grassroots support from recreational trail users, including many equestrians, played an important role in making sure RTP was included in the House-passed bill. The AHC appreciates all the individual horsemen and organizations that contacted their Representatives in support of RTP.
Since its inception RTP has provided money for thousands of state and local trail projects across the country, including many that benefit equestrians. RTP provides funding directly to the states for recreational trails and trail-related facilities for all recreational trail users. It is funded with a portion of the gas taxes paid into the Highway Trust Fund by recreational off-highway vehicle users.
Earlier this year, the Senate passed its version of a multi-year national highway bill, called the DRIVE Act. The Senate bill would also reauthorize the RTP Program.
It is a victory for recreational users that RTP has been included in both the House and Senate versions of the bill.
The House and Senate must now convene a Conference Committee to work out the differences in the two bills.
If you have any questions, please contact the AHC.
ACTION ALERT- Support for H-2B Program is Needed Now!
Congress will need to take action on all fiscal year 2016 appropriations bills before current funding expires December 11, 2015. The Department of Homeland Security (DHS) and Department of Labor (DOL) appropriations bills, include important and helpful language that will make the H-2B program easier for employers to use. However, there is no guarantee this language will be included in the 2016 appropriations package or “Omnibus bill” that is being negotiated now and action is need immediately.
The H-2B program is used by members of the horse industry, principally horse trainers and owners who cannot find American workers to fill semi-skilled jobs as grooms, exercise riders, and stable attendants at racetracks, horse shows, fairs and in similar non-agricultural activities.
If you, your business or members of your organization rely on H-2B workers, please contact your Senators to express support for the H-2B appropriations language that is included in the DOL and DHS appropriations bills. Urge them to sign the H-2B letter being circulated by Senators Tillis (R-NC) and Warner (D-VA) and Rep. Boustany (R-LA) that asks the leaders of the House and Senate Appropriations Committees to include all of the beneficial H-2B provisions from both the House and Senate DHS and DOL bills in any final appropriations bill.
You can reach your members of Congress through the Capitol Switchboard at 202-225-3121. Once connected to your Senators’ or Representative’s office, ask to speak to the staff person who handles Department of Labor and Department Homeland Security appropriations.
Call them today and tell them;
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- You support and rely on the H-2B Program.
- You support the H-2B language in the DOL and DHS appropriations bill.
- Please sign the H-2B letter that is being circulated by Senators Tillis (R-NC) and Warner (D-VA) and Rep. Boustany (R-LA).
- THE DEADLINE FOR SIGNING IS NOON ON FRIDAY, NOVEMBER 6. This letter asks the leaders of the House and Senate Appropriations Committees to include all of the beneficial H-2B provisions from the House and Senate Departments of Homeland Security and Labor Appropriations bills
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- Horse farms, trainers, horseshows, and others in the horse industry are often unable able to find Americans who are willing and able to take jobs as grooms, and stable attendants.
- Despite substantial efforts to recruit American workers the industry has been forced to rely on foreign workers and the H-2B temporary worker program to meet their labor needs.
- The H-2B language in the DOL and DHS appropriations bills will help ensure the H-2B program is available to the horse industry and other small and seasonal businesses.
You can also use the contact form on your representatives website, and copy and paste the following message:
Dear Senator:
The Department of Homeland Security (DHS) and Department of Labor (DOL) FY2016 appropriations bills include important language concerning the H-2B non-agriculture temporary worker program. I urge you to sign the letter being circulated by Senators Tillis (R-NC) and Warner (D-VA) and Rep. Boustany (R-LA), asking the leaders of the House and Senate Appropriations Committees to include all of the beneficial H-2B provisions from both the House and Senate DHS and DOL appropriations bills in any final omnibus appropriations bill.
The H-2B program is used by members of the horse industry, principally horse trainers and owners who cannot find American workers to fill semi-skilled jobs as grooms, exercise riders, and stable attendants at racetracks, horse shows, fairs and in similar non-agricultural activities.
The racing and showing segments of the industry are particularly dependent on the use of foreign workers. The horse racing industry has a $26.1 billion economic impact and supports 380,826 jobs. The horse show industry has a $28.7 billion economic impact and supports 380,416 jobs. The workers provided by the H-2B program are a small portion of horse industry workers, however they play a vital role within the industry.
Most H-2B workers in the industry are directly responsible for the care of the horses upon which the entire horse industry is dependent. Without these workers to care for the industry’s horses, many American jobs provided by and supported by the horse industry could be in jeopardy.
However, on April 29, 2015, the DHS and DOL issued a final interim H-2B program rule and a final wage rule that have made the H-2B program significantly more costly and burdensome to use.
The H-2B provisions in the House and Senate DHS and DOL appropriations bills would make several important reforms to the H-2B program and roll back some of the most burdensome provisions of the 2015 H-2B rule. Please support the horse industry and sign the H-2B letter being circulated by Senators Tillis (R-NC) and Warner (D-VA) and Rep. Boustany (R-LA). The deadline for signing is noon on Friday, November 6.
If you are unsure as to who your representative is, please visit the Find Your Representative page on the House website.
If you have any questions please contact the AHC.
H-2B Reform Bill Introduced
On October 29, 2015 Senators Thom Tillis (R-NC), Barbara Mikulski (D-MD), Mark Warner (D-VA), and Bill Cassidy (R-LA) introduced the Save our Small and Seasonal Businesses Act of 2015. The bill would make many needed reforms to the H-2B temporary, non-agricultural worker program that will make it less burdensome for employers, including those in the horse industry to use.
The H-2B program is used by members of the horse industry, principally horse trainers and owners who cannot find American workers to fill semi-skilled jobs at racetracks, horse shows, fairs and in similar non-agricultural activities. However, On April 29, 2015, the Department Homeland Security (DHS) and Department Labor (DOL) issued a final interim H-2B temporary guest worker program rule and a final wage rule. These rules have made the H-2B program even more costly and burdensome for employers who are forced to use the program. These rules were opposed by the American Horse Council and other industries that rely on the H-2B program.
Save our Small and Seasonal Businesses Act of 2015
The bill would make several important reforms to the H-2B program and roll back some of the most burdensome provisions of the 2015 H-2B rule. It also would exempt returning workers from counting against the 66,000 annual visa cap. Specifically, the bill would do the following:
Create an H-2B returning worker exemption;
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- Require wages to be based on the job category and experience level required, rather than an artificially inflated the median wage;
- Allow the use of private wage surveys;
- Return the H-2B program to an attestation based process rather than a time consuming and costly verification based process;
- Specify that H-2B employers do not need to provide housing to their workers, allow for payroll deductions for housing in accordance with the Fair Labors Standards Act;
- Specify that for H-2B workers, full time is considered 30 or more hours per week and seasonal need is 10 months;
- Require employers to reimburse H-2B workers for their transportation costs from the consulate or previous worksite to the place of employment after the H-2B worker completes at least 50% of the work contract, as well as require the employer to pay return transportation costs to the consulate or new worksite;
- Allows for staggered crossing of H-2B workers;
- Allow for the replacement of an H-2B worker who leaves the job before the completion of the job term;
Provides for conditional approval for H-2B workers by DHS once the cap is met so that visas may be issued in the order approved if cap numbers become available;
- Require DHS to publicly post on a website the cap count, the annual number of target beneficiaries, the cap count methodology it is using, number of H-2B visa petitions approved and received during the past five years’ and other items;
- Require the Government Accountability Office to conduct a study on the DHS cap count methodology and its accuracy; and
- Specify that DHS has exclusive authority to issue H-2B rules and final determinations.
Improvements to the H-2B program have been a priority of the horse industry for many years. The difficulty horse farms, horse shows, trainers and others have had recruiting American workers has forced many to use the H-2B program to meet their labor needs, even though it is costly, time consuming and unreliable.
This bill would overhaul the H-2B program and fix some of problems that have plagued the program while maintaining protections for both American and H-2B workers.
The American Horse Council supports this important legislation and urges members of the horse industry to contact their Senators to voice support for the bill.
Recreational Trails Program Included In House Highway Bill
On October 22, 2015, the House Transportation and Infrastructure Committee approved its version of a multi-year national highway bill known as the STRR Act. (HR 3763). The bill would reauthorize the Federal Highway Administration’s Recreational Trails Program (RTP).
Since its inception RTP has provided money for thousands of state and local trail projects across the country, including many that benefit equestrians. RTP provides funding directly to the states for recreational trails and trail-related facilities for all recreational trail users. It is funded with a portion of the gas taxes paid into the Highway Trust Fund by recreational off-highway vehicle users.
Earlier this year, the Senate passed its version of a multi-year national highway bill, called the DRIVE Act. The Senate bill would also reauthorize Recreational Trails Program.
It is a victory for recreational users that RTP has been included in both the House and Senate versions of the bill.
The full House must now take action on the bill.
If you have any questions, please contact the AHC.
Additional Organizations Support AHC Welfare Code
The U.S. Polo Association, American Warmblood Registry, North American Shortpony Registry, Missouri Quarter Horse Association, Michigan, Minnesota, New York and South Carolina Horse Councils, Pal-O-Mine Equine Center and the Virginia Horse Center Foundation are the latest organizations to endorse the American Horse Council’s (AHC) Welfare Code of Practice.
The AHC Welfare Code of Practice is a broad set of principles designed to establish good welfare procedures for organizations to follow to “Put the Horse First.” The code outlines in broad strokes what principles organizations are committed to in breeding, training, competing, transporting, enjoying, and caring for their horses. The code encourages everyone to consider the health, safety, and welfare of their horses in all aspects of their activities, including the social and ethical issues.
The AHC’s code is not intended to supersede an organization’s rules or regulations. Any organization’s more specific rules still govern activities sanctioned and regulated by the organization. Rather the code is a compliment to any such rules and restates the principles to be followed by breed registries, trade associations, various disciplines and the horse community as a whole in pursuing their equine activities.
To review the AHC Welfare Code of Practice, a list of the 51 organizations supporting the code, and a FAQs page, please visit the AHC Website at ahcbeta.flywheelsites.com.
Help the AHC Put More Horsepower in Congress
Despite historically low approval ratings for Congress, Americans still have an interest in what Congress is doing. Why is this?
Because what Congress does, or does not do, has an impact on the equine industry. Regardless of the breed of your horse, the discipline you participate in, whether you are an individual owner, run a racetrack or horse show, own a horse business, work in the industry as a service provider or ride for recreation—the decisions made here in Washington, DC affect you.
Without open lines of communication with our leaders in Washington, we could lose the ability to enjoy our horses and our work in the industry that we love. Only by having personal exchanges with their constituents who are involved in the horse industry will members of Congress fully appreciate how important our $102 billion industry is.
The American Horse Council is the ONLY organization that works in Washington, DC on behalf of EVERY segment of the industry. Every day, we communicate with Congress and other federal agencies to ensure that each understands the economic, agricultural, sporting, and recreational importance of the horse industry.
Because we are a non-profit organization, we depend on YOU– a person who is devoted to your horse and your sport- to help us effectively represent our industry. The AHC provides updates on important issues affecting the industry, and can help our members contact their elected officials to speak up about these issues. By becoming a member of the AHC, you give strength to the horse industry’s voice. You “Put more Horsepower in Congress.”
The AHC also relies on our members to help us with grassroots lobbying efforts, as now more than ever, an elected official must hear from his or her constituents about a problem before he or she will get actively involved with a piece of legislation. To be truly effective and have our voice be heard, the horse industry must capitalize on the large number of individuals involved and turn the diversity of each segment of the industry into a strength. If elected officials hear from all segments of the horse industry on an issue, they will begin to realize just how important we are to the U.S. economy.
When you join the AHC, you will receive a copy of the newly updated Horse Industry’s Guide to Grassroots Lobbying, which includes sample emails to send to your members of Congress, how to contact them, a newly updated section on using social media to lobby, and much more.
By getting involved and becoming a member of the AHC, you’re not only helping yourself, but your industry as well. Help us put more HORSEPOWER in Congress and join the AHC today!