Washington Report: Swipe Fee Reform One Step Closer to Becoming Law

Also DOL issues new regulations for employee leave, another estate tax bill is introduced, and calling card legislation passes the House.

June 25, 2010

Swipe Fee Reform One Step Closer to Becoming Law
The House and Senate negotiators have agreed to interchange reform which is enthusiastically supported by NACS. The full House and Senate will still have to approve the total financial services reform bill before it goes to the President€™s desk for signature.

For more details see the full story.

NACS Staff Contact: Lyle Beckwith, lbeckwith@nacsonline.com

Expanded Definition for "Dependant Child" in the Family Medical Leave
This week the Department of Labor (DOL) issued a clarifying statement regarding the definition of "son or daughter" under the Family Medical Leave Act (FMLA) with respect to non-military leave. The newest interpretation grants leave rights to any individual who assumes the responsibilities of a parent by providing day-to-day care or financial support for a child, regardless of whether there is a legal or biological relationship between the individual and the child.

"The Labor Department's action today sends a clear message to workers and employers alike: All families, including LGBT [lesbian-gay-bisexual-transgender] families, are protected by the FMLA." Hilda Solis, United State Secretary of Labor stated.

The FMLA allows eligible employees to take up to 12 weeks of protected leave for three reasons related to an employee€™s son or daughter:

  1. 1) To care for a son or daughter with a serious health condition
  2. 2) Because of the birth of a son or daughter of the employee and in order to care for such son or daughter and
  3. 3) Because of placement of a son or daughter with the employee for adoption or foster care.

NACS Staff Contact: Corey Fitze, cfitze@nacsonline.com

Senators Want to Make Sure the Government Gets Its Fair Share of Your Estate
Senators Bernie Sanders (I-VT), Sheldon Whitehouse (D-RI), Tom Harkin (D-IA) and Sherrod Brown (D-OH) introduced another bill aimed at taxing inheritances. Although not confirmed by the Congressional Budget Office the sponsors of the bill believe that it could raise $264 billion over a decade.

"This legislation would ensure that the wealthiest Americans in our country, millionaires and billionaires, pay their fair share while exempting 99.7 percent of Americans from paying any estate tax whatsoever," Sanders said.

The breakdown of estate values and tax rates prescribed in the bill are as follows:

  • Between $3.5 million and $10 million, 45 percent
  • Between $10 million and $50 million, 50 percent
  • More than $50 million, 55 percent
  • Then an additional 10 percent tax would be imposed on the value of estates above $500 million

This is an issue that could come up before the election as it could give both Republicans and Democrats more ammunition to fire at each other. Unless Congress acts, in 2011 the estate tax exemption will drop to $1 million per person and the maximum estate tax rate will increase to 55 percent.

NACS Staff Contact: Corey Fitze, cfitze@nacsonline.com

Calling Card Legislation Passes the House
H.R. 3993, the Calling Card Consumer Protection Act passed the House this week by a vote of 381-41. The bill would regulate the way manufacturers detail the descriptions of how many minutes are on calling cards, how they can be used, and what the restrictions are.

NACS worked successfully to ensure that innocent parties who have no control over the production or marketing materials associated with pre-paid calling cards, i.e. retailers would not be subject to the enforcement provisions associated with fraudulent or deceptive products. These parties will still be subject to injunction and required to remove such calling cards from commerce.

The bill will now have to be considered by the Senate.

NACS Staff Contact: John Eichberger, jeichberger@nacsonline.com

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