FEDERAL ACTIVITY
Congress to Consider Delaying August Recess to Pass Additional COVID-19 Relief
House Speaker Nancy Pelosi announced that she would delay or cancel her Chamber’s August recess to pass another COVID-19 relief bill. While Congress and the Federal Reserve have already allocated more than $6 trillion toward pandemic relief, leaders of both parties want to pass further legislation to assist Americans and small businesses. Democrats have pushed for a sprawling aid package to include extending enhanced unemployment benefits, additional direct payments to Americans, offer assistance to homeowners and renters and send monetary relief to states that are dealing with massive budget deficits. Republicans have proposed a narrower package of relief, but also call for protections for businesses from certain COVID-19-related lawsuits. House Minority Leader Kevin McCarthy’s recent statement that a relief package won’t be ready until at least the first week of August demonstrates the time-consuming nature of negotiations between both parties in Congress.
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President Trump Dims Hope for New Trade Deal with China
After signing phase one of a trade deal in January, the U.S. and China were expected to continue negotiations on a more expansive and all-encompassing phase two trade deal. Seven months later, the hopes for this new trade deal are dim, as both countries are focused on handling their responses to the COVID-19 pandemic and other domestic issues. With tensions running high between the world’s two largest economies, U.S. tariffs on $360 billion worth of Chinese goods, including some kitchen- and bath-related products and materials, are unlikely to be removed. If interested in learning more about tariffs and the kitchen and bath industry, this educational article that was published at the onset of the tariff debate provides a helpful overview of the situation.
Small Business Disaster Loan Enhancement Act Introduced in Congress
On July 2, Senators Brian Schatz (D-Hawaii) and Catherine Cortez-Masto (D-Nevada) introduced the Small Business Disaster Loan Enhancement Act of 2020 to boost funding and lower interest rates for the Economic Injury Disaster Loan (EIDL) program. The Small Business Disaster Loan Enhancement Act seeks to make changes to the EIDL program by calling for:
- Lower interest rates to 1%, in line with the PPP loan rate;
- Allow new EIDL loan applicants to receive up to $2 million, based on their financial need;
- Enable current EIDL loan recipients to request an increase in their EIDL loan up to $2 million, based on their financial
need; - Require the SBA to provide the full amount of the EIDL advance requested by an applicant, up to $10,000;
- Create a new EIDL advance of up to $25,000 for applicants that have experienced a reduction of 50 percent or more in gross receipts from a comparable 8-week period before the public health crisis began; and
- Provide an additional $80 billion for EIDL loans and $20 billion for EIDL advances.
The EIDL program, under the Small Business Administration (SBA), has been a popular relief program for businesses seeking favorable loan terms. These are available for small businesses, independent contractors, gig workers, nonprofits and agricultural businesses. Available funding may run out soon, so it’s best to apply as soon as possible. To apply for an EIDL, which can be done in as quickly as 15 minutes, click here.
Paycheck Protection Program (PPP) Saved Millions of American Jobs
While the range of jobs saved varies by source, there is agreement that the $660 billion PPP program was successful in keeping millions of Americans on their company’s payroll. According to government records, more than 500,000 businesses received PPP loans over the last several months, and in turn used those funds to save 51 million jobs across the country. However, a newly released study published by MIT substantially lowers the government PPP estimate to 1.5 to 3.5 million jobs saved. Using either statistic, the kitchen and bath industry is included in these numbers, with big remodelers saving more than 83,000 jobs and more than 2,700 construction firms in California alone receiving PPP funding. To see a full list of PPP recipients by state, check out the SBA’s website here.
Do you have a PPP success story and want to share it with the NKBA? If so, please send your information to scampeau@nkba.org for a potential interview and post on the NKBA newsfeed!
STATE ACTIVITY
Kentucky Administrative Regulations (KAR) Regarding Plumbing Adopted
Earlier this month, Kentucky adopted several administrative regulatory changes regarding plumbing fixtures and water supply and distribution. Section 815 KAR 20:070 regulates plumbing, including the kind, type and quality of plumbing fixtures to be used in the construction of plumbing systems. Section 815 KAR 20:120 establishes the types of piping and pipe sizes required for a potable water supply system and the methods to be used to protect and control the water supply system, while also requiring the manufacturer’s specification number of the material accepted in those installations to be identified and published. If you have any questions regarding the updates to the Kentucky Administrative Regulations, please contact David Startsman, General Counsel, Department of Housing, Buildings and Construction at either 502-573-0365 or david.startsman@ky.gov.
Pennsylvania Legislation Seeks to Restrict the Use of “Certified” in Professional Licensures
Pennsylvania House Bill 811, which was introduced in April, includes a restriction on the use of “certified” in professional licensures. The Professional Certification Coalition (PCC), to which NKBA belongs, recommends an amendment to the legislation that would preclude individuals holding a certification issued by a private certification organization (like NKBA). While the bill has stalled in the Legislature, NKBA will continue to monitor and track its movement should it progress during the remainder of the session. The Pennsylvania legislative session adjourns on Nov. 20, 2020.
California Contractors Facing New Licenses, Restrictions and Punishments Under Proposed Legislation
California Senate Bill 1189, which has passed the Senate and is now under review by the Assembly, seeks to eliminate the one-size-fits-all contracting license and create a more transparent process for consumers to ensure their contractor is properly trained. It would create a new classification of contracting known as “residential remodeling contracting.” Under the proposed bill, residential remodeling contractors would be prohibited from performing certain trades, jobs or skills, such as installing fire prevention materials or structures, unless they are properly licensed. Additionally, and of potential interest to NKBA members, residential remodeling contractors would also be prohibited from changing or working on load-bearing portions, electrical systems and plumbing systems. If the bill does pass and is signed by the Governor, it would go into effect at the beginning of next year. Should the bill die in committee, it will likely be reintroduced in the next legislative session. NKBA will continue to monitor and track this piece of legislation through the California Legislature adjournment date of Aug. 31.
COVID-19 State Updates and Available Resources
To keep current on what individual states are doing to combat COVID-19, this interactive map, online platform and resource center might be of interest. The interactive map shows all COVID-19-related legislative activity that each respective state has enacted, while the online platform and resource center provide important information related to COVID-19.
CONTACT INFORMATION
Federal and State Legislative Contacts
Don’t forget to contact your Federal and State Legislators for government information and resources. Legislative staff are available to answer any questions on legislation, or walk you through governmental processes.
NKBA Legislative Contact
NKBA will monitor relevant legislative developments at the state and federal levels, and, where appropriate, provide information to members concerning material issues and developments — including laws and regulations that might impact the kitchen and bath industry. If you have any questions or comments on legislation, please reach out directly to Steven Campeau, NKBA’s Government Relations Specialist, at scampeau@nkba.org.
NOTE: NKBA is providing this material for general information only. This information does not constitute the provision of legal advice, tax/investment advice, accounting services or professional consulting of any kind, nor should it be construed as such. NKBA is not a lobbying organization and does not have a Political Action Committee (PAC). Resources such as this are meant solely for informational purposes.
