Government

Agencies Increase Guest Worker Visas

8 June 2021
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The Department of Homeland Security (DHS) and the Department of Labor (DOL) have published a joint temporary final rule  making available an additional 22,000 H-2B temporary nonagricultural guest worker visas for fiscal year (FY) 2021 to employers who are likely to suffer irreparable harm without these additional workers. Of the supplemental visas, 6,000 are reserved for nationals of the Northern Triangle countries of Honduras, El Salvador, and Guatemala.

DHS first announced the planned supplemental increase of 22,000 visas for the H-2B Temporary Non-Agricultural Worker program on April 20, 2021. The supplemental H-2B visa allocation consists of 16,000 visas available only to returning H-2B workers from one of the last three fiscal years (FY 2018, 2019, or 2020), and 6,000 visas for Northern Triangle nationals, which are exempt from the returning worker requirement.

“Today’s joint rule helps American businesses and addresses the need for robust worker protections,” said Secretary of Homeland Security Alejandro N. Mayorkas. “For the first time, we are setting aside supplemental visas for noncitizens from Northern Triangle countries, in furtherance of President Biden’s and Vice President Harris’ direction to expand legal pathways for protection and opportunity for individuals from those countries.”  

“The temporary final rule is designed to prevent permanent and severe financial loss to U.S. employers by supplementing the congressionally mandated H-2B visa cap, takes into account feedback from American businesses, employer organizations, and labor representatives, and is one piece of the administration’s broader comprehensive framework for managing migration throughout North and Central America,” said USCIS Acting Director Tracy L. Renaud. “This rule incorporates several key provisions to ensure adequate safeguards for U.S. workers and H-2B workers. The rule requires that employers take additional steps to recruit U.S. workers, and provides for “portability,” which allows H-2B workers already in the United States to begin employment with a new H-2B employer or agent once USCIS receives a timely filed, non-frivolous H-2B petition, but before the petition is approved. Portability enables H-2B workers to change employers more quickly if they encounter unsafe or abusive working conditions. DHS and DOL will also conduct a significant number of post-adjudication reviews to ensure compliance with the program’s requirements.”

Starting May 25, eligible employers who have already completed a test of the U.S. labor market to verify that there are no U.S. workers who are willing, qualified, and able to perform the seasonal nonagricultural work can file Form I-129, Petition for a Nonimmigrant Worker, to seek additional H-2B workers. They must submit an attestation with their petition to demonstrate their business is likely to suffer irreparable harm without a supplemental workforce. Additional details on eligibility and filing requirements are available in the temporary final rule and the Temporary Increase in H-2B Nonimmigrant Visas for FY 2021 webpage.

Big Sky EDA to Receive Bank Foundation Community Grant

20 May 2021
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Big Sky Economic Development (BSED) will receive a $12,000 U.S. Bank Foundation Community Possible grant to be directed toward financial education for small businesses and workforce development initiatives.

The U.S. Bank Foundation is committed to making Community Possible through the areas of Work, Home and Play to create lasting change. The foundation does this by focusing on meaningful impact in the communities it serves and through meaningful partnerships with local nonprofits, like Big Sky Economic Development.

Bill Davies, U.S. Bank Regional President, said “We know that a strong small business environment and an educated workforce ensures the prosperity of our communities. We provide grant support to programs and organizations that help small businesses thrive, allow people to succeed in the workforce, provide pathways to higher education and gain greater financial literacy. Big Sky Economic Development is a tremendous advocate for small business and workforce development, and we can’t think of a better partner to help us fulfill this work.”

“This grant will allow us to continue our mission of helping small businesses start and grow in our region and allow us to continue to offer key programs related to workforce development,” said Steve Arveschoug, Executive Director for BSED.

Inner Belt Loop Progresses

7 May 2021
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The City of Billings hopes to be able to issue a request for bids for the Inner Belt Loop a year from now.

The City of Billings Planning Department released an update last week on the progress of the Inner Belt Loop as it relates to the federal Build Grant, which the city won to help fund the project.

City staff is in the process of meeting all the requirements outlined in the grant in order to enter into an agreement with the Federal Highways (FHWA) department. The agreement cannot be submitted until the construction documents are ready, which means the completion the right-of-way purchase, environmental documents and final construction documents. Staff expects to be able to submit all that information by fall, with another six months required for the FHWA review, putting an executed agreement into April 2022. 

Once the city receives the executed agreement from FHWA, the project will be put out for bid.

Billings was awarded $11.6 million in federal BUILD grant funds to construct the Inner Belt Loop and Skyline Trail in September 2020. The grant award was for only a portion of the requested sum of approximately $16.8 million to complete the Inner Belt Loop, and the pedestrian/bike trails, Skyline and Stagecoach. The City of Billings is supplementing the project with $7 million and $85,000 is being donated from Billings TrailNet.

City planning expected to receive six appraisals for right-of-way procurement at the end of April.

The city has also been in negotiation with an environmental professional who has completed the NEPA environmental process for other recent TIGER and BUILD grants, and believe that his services will cost less than $50,000 to do similar work for Billings. 

They anticipate completing the environmental scoping and contracting also by the end of April, with the environmental (NEPA) work completed within about 6 months.  The consultant will work to prepare the field review and reports, submittals by the consultant to various agencies, and review by agencies for approval.

A date will be announced for the official kick-off event of the project.

Taxing Inheritance Twice

6 May 2021
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A new report released by EY finds that repealing the step-up in basis tax provision would damage the gross domestic product (GDP) and significantly decrease job creation. The study was conducted for the Family Business Estate Tax Coalition, which includes almost 60 organizations representing family-owned businesses.  

The EY study found middle-class, family-owned businesses would be particularly hard hit by the repeal. Currently, when someone inherits assets, they aren’t taxed on the appreciation that happened before they inherited them. If family-owned farms, small businesses or manufacturers are forced to pay capital gains accrued by the prior owner, they would likely face large tax bills that put the future of their business at risk.   

According to the study’s findings, repealing the step-up in basis would result in:  

* 80,000 fewer jobs in each of the first ten years;  

* 100,000 fewer jobs each year thereafter; and

* A $32 reduction in workers’ wages  for every $100 raised by taxing capital gains at death. 

It would also reduce GDP relative to the U.S. economy in 2021, by approximately: 

* $10 billion annually;

* $100 billion over 10 years. 

“Repealing stepped-up basis is not a free lunch for those looking to generate tax revenue and would have significant consequences in the multifamily marketplace,” said Doug Bibby, President of the National Multifamily Housing Council. 

SBA Offers Rescue Plan for Restaurants

6 May 2021
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A program especially designed for the restaurant industry has been announced by the US Small Business Administration. The program was part of the federal government’s American Rescue Plan. It set aside $28.6 billion for a Restaurant Revitalization Fund (RRF)to be administered within the SBA.

Said SBA Administrator Isabella Casillas Guzman, “The restaurant industry has been among the hardest-hit sectors during the economic downturn caused by the COVID-19 pandemic. To help bring jobs back and revive the industry… the SBA will administer the funds to the hardest-hit small restaurants.”  For the first 21 days priority will be given to applications from small businesses owned by women, veterans and disadvantaged individuals.

“With the launch of the Restaurant Revitalization Fund, we’re prioritizing funding to the hardest-hit small businesses – irreplaceable gathering places in our neighborhoods and communities that need a lifeline now to get back on their feet,” said Guzman. “… we’re rolling out this program to make sure that these businesses can meet payroll, purchase supplies, and get what they need in place to transition to today’s … marketplace.”

Guzman emphasized, “We’re also focused on ensuring that the RRF program’s application process is streamlined and free of burdensome, bureaucratic hurdles – while still maintaining robust oversight. Under my leadership, the SBA aims to be as entrepreneurial as the entrepreneurs we serve – and that means meeting every small business where they are, and giving them the support they need to recover, rebuild and thrive.”

Prairie Reserve’s Secret Negotiations with Bullock Waylaid by Lawsuit, Now Settled by Gianforte

6 May 2021
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Governor Greg Gianforte has announced a settlement agreement that ends litigation between the Montana Department of Fish, Wildlife & Parks (FWP) and United Property Owners of Montana (UPOM).

“Under the previous administration, FWP didn’t do right by farmers, ranchers, and private property owners. In its effort to spread bison across parts of Montana, FWP didn’t do enough to account for the impacts to local communities and relied on outdated data,” Gov. Gianforte said. “This settlement agreement protects our livestock producers and rural lands and reaffirms the state can and should do better going forward.”

“FWP is committed to engaging communities and stakeholders on the impacts of decisions like this. We’re grateful to have this lawsuit behind us,” said Hank Worsech, director of FWP.

In January 2020, FWP issued a Final Programmatic Environmental Impact Statement for Bison Conservation and Management in Montana (EIS) and an associated Record of Decision. In March 2020, UPOM filed suit against FWP alleging the agency violated MEPA, MAPA, and environmental impact review requirements during the EIS process.

In the settlement agreement, FWP and UPOM agree the Final EIS failed to adequately consider disease transmission between bison, livestock, and other wildlife, there was an inadequate public comment opportunity, and the Final EIS relied on outdated data, among other things.

“This is a huge win for property owners in Montana.  We’ve successfully blocked the introduction of free-roaming bison for at least the next decade,” said UPOM Policy Director Chuck Denowh.  “This is a major setback for the American Prairie Reserve and their plan to impose wild bison on their neighbors and on our public land.”

Through discovery related to the lawsuit, Denowh says that UPOM learned that FWP officials were in active negotiations with the American Prairie Reserve to establish a free-roaming bison herd in Central Montana.  Documents obtained by UPOM indicated urgency to strike a deal prior to the end of Governor Bullock’s term. “If we hadn’t sued FWP over this bison plan there’s little doubt we would have a herd of free-roaming bison in Central Montana today.” said Denowh.  “It’s chilling to think that FWP was engaging in secret negotiations with an out-of-state special interest group to impose free-roaming bison over the strong objections of local stakeholders.”

FWP to Acquire Cottonwood Island

6 May 2021
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Montana Fish, Wildlife and Parks (FWP) is in the process of purchasing two islands in the Yellowstone River east of Reed Point for a fishing access site and to fulfill a need for woody debris and wildlife habitat. The acquisition will replace habitat that was removed during the cleanup on July 1, 2011 of the ExxonMobil Pipeline Company oil spill at Laurel. 

The purchase must be approved by the commission in April and the entire transaction will be completed by mid-summer, according to Robert Gibson, FWP Program Manager.

The 45 acres of islands are currently owned by the Montana Department of Transportation, which acquired them when it bought a ranch as part of a plan to abandon an old bridge across the Yellowstone River. FWP has agreed to buy the islands with $54,050 from the Department of Justice Natural Resource Damage Program (NRDP). 

NRDP was funded through a settlement with Exxon Mobil Pipeline Company following the rupture the Exxon Mobil Pipeline petroleum pipeline in 2011. During cleanup of the spill, crews altered riverside wildlife habitat and removed large woody debris – primarily downed cottonwood trees. Such debris is responsible for creating and maintaining islands and other natural structures that form a healthy, meandering river. 

The islands being acquired will remain undeveloped to leave habitat intact..

Income Tax Deadline Extended for Montana

5 May 2021
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Governor Greg Gianforte extended the payment and filing deadlines for Montana individual income taxpayers’ 2020 tax returns to May 17, 2021. 

“Last year brought real, serious challenges to Montanans, and it’s only appropriate to extend the deadline so Montana taxpayers have some extra time to file, without having to worry about interest or penalties,” Governor Gianforte said. 

The May 17 deadline is in keeping with the new federal filing deadline.

The Department of Revenue advises that the American Rescue Plan Act excludes the first $10,200 of unemployment benefits from federal taxes for those making less than $150,000. Those who have already filed their federal and Montana tax returns do not have to amend their returns. But those who received unemployment benefits in 2020 and have not yet filed should follow the revised instructions for their Montana return at MTRevenue.gov. 

City Moves Forward on Massage Therapist Ordinance

4 May 2021
Evelyn Pyburn
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By Evelyn Pyburn

The Billings City Council has adopted new regulations for the massage therapy business in Billings. The additional laws that will control how business owners provide their services are aimed at tripping up sex and human trafficking criminals who operate under the guise of being massage therapy businesses.

Hearings were held on April 12 and April 26.  After months of discussion, debate and revisions the proposed ordinance still encountered proposed amendments during hearings, to make it more palatable to therapists who strongly, and often passionately, opposed the regulations, saying that their legitimate businesses are being misused as a shortcut to address a law enforcement failure to enforce existing laws.

Advocates and law enforcement, however, say they need more tools to deal with a human trafficking problem that has grown so extreme that it draws worldwide attention to Billings. The human trafficking involves luring women from, usually Asian countries, to Billings where they are then enslaved for commercial sex activity. The human trafficking element also poses risks for the abduction of young people locally.

Mayor Bill Cole supported the ordinance saying that as revised, the regulation is considerably less intrusive than what it was in its initial version. City Councilwoman Penny Ronning is credited with have spearheaded the campaign to implement the ordinance, and several proponents applauded her perseverance and efforts.

Only three city council people opposed the adoption of the regulation – Pam Purinton, Danny Choriki and Frank Ewalt – mostly on the grounds that it overly burdens the legitimate operation of small business owners.

City Council Member Danny Choriki said, “It still bothers me that we are using business licenses… it is a bad precedence. …it is still a bad solution… it is too much of a shortcut for law enforcement.” 

The council rejected an amendment, proposed by Purinton, that would have sunsetted the ordinance in two years, at which time the council could evaluate whether it was succeeding in its purpose, revise it, renew it or suspend it. Mayor Cole opposed the amendment saying he felt that to believe the law could be terminated in two years would give criminals the idea that if they could just wait it out, the restrictions and additional licensing requirements would go away.

Considering that the problem of prostitution and sex trafficking has been an on-going issue in Billings for decades, to sunset the law in just two years is “a bad idea,” said Councilwoman Kendra Shaw. Two years is not enough time to determine the effectiveness of the ordinance, she said.

That sex and human trafficking has been a long-term problem in Billings was underscored by several of those testifying regarding the ordinance – on both sides of the issue.

“In 1979 Tokyo Sauna opened and everyone knew what it was and it was just shut down in 2019,” pointed out one massage therapist during public comment. She continued, “Prostitution is against the law and there were sting operations… and they never shut them down and shame on our city…”

Now they come “into our legitimate operations and shut us down…. I feel like I am being attacked and put into a position of making me a prostitute at my business, and I have been doing this for 24 years.”

City Administrator Chris Kukulski said that Billings is patterning their ordinance and strategy after that of Aurora, Colorado, a city that claims they were able to eliminate their commercial sex after enacting the ordinance.

His claim was rebutted by one of massage therapists, who said that all that happened in Aurora was that the establishments moved a few miles down the road outside the city limits – a concern that was mentioned several times in the testimony about the potential outcome locally.

Repeatedly citizens declared that the real solution has to come from law enforcement and if that requires the citizens paying higher taxes to get the needed personnel then that is what has to be done.

The current ordinance will be complaint-driven and overseen by code enforcement staff in Billings in cooperation with the law enforcement.

Councilman Frank Ewalt challenged the effectiveness of heightening restrictions on massage therapy businesses.

He read from an earlier statement from Police Chief Rich St. Johns about policing of commercial sex enterprises and human trafficking: “Candidly speaking it is low priority…we know they are out there, but they are difficult to police. Investigations are challenging. Victims fail to cooperate because they do not trust law enforcement. Currently a successful prosecution is beyond our resources, specialization and scope. You are investigating criminals who are business savvy, well-organized, adept at hiding resources, and changing tactics.”

“What will this ordinance change about that?” questioned Ewalt, “Will police all of a sudden have a high priority? Are these businesses not going to be as savvy? Are these businesses going to be less adept at hiding their resources?” Ewalt noted that they have had only one complaint filed.

Complaints are low, conceded St. Johns. It is difficult to get victims to come forward, he said, adding, “This is another tool we use.”

“It is not going to change the scope of what we need to put a case together,” said St. Johns, but he vowed, “If you give us a complaint we will follow up on that.”

The ordinance requires that massage therapists obtain a city license in addition to the state licensing they must have, pass a back ground check, and it dictates hours of operation, staffing, records and bookkeeping, and unlocked doors.

A common complaint from the business owners was that they were not included in the process of trying to develop a solution to the problem, however others said that they were involved in the process and supported the ordinance.

“We have tried to give you examples of things and you just keep shutting us down. I am appalled that you don’t give us credit. Like we don’t know what we are doing. Where is your team work with us? Have you met with all of us? No, you haven’t, and you do have an agenda and I am sorry you haven’t worked with us.”

At that point, Mayor Cole asked her not to make her comments personal. ”You would not want us to make those views personal,” he said.

The woman responded emphatically, “It is personal to me. It is very personal to us. It is very personal to each of us.”

Commented another massage therapist, “I have been told that this ordinance does not apply to me…  it pertains to everyone… it does nothing to stop the illicit sex trafficking. We have a lot of ordinances already in force that are not being used.”

A general question was asked about what happens to the victims of human trafficking. “As far as I know we have no victim services. We have to do something.”

Kukulksi said, “I don’t have any involvement. I don’t know what our community offers for services.”

Some of the business owners expressed concern about HYPPA restrictions (privacy of personal information) in the ordinance requirement that they make all their records available to police upon demand.

City Attorney Gina Dahl said that the requirement would not be in violation of HYPPA, nor is it a violation of the Constitution, as some had proclaimed.

Tax Increases Could Lead to 1 Million Fewer Jobs

21 April 2021
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The proposed tax increases in the Biden administration’s infrastructure plan could lead to 1 million fewer jobs in the first two years, according to a study conducted by Rice University economists for the National Association of Manufacturers. Economists calculated the effects of increasing the corporate tax rate to 28%, increasing the top marginal tax rate, repealing the 20% pass-through deduction, and eliminating certain expensing provisions would cause large negative effects for the economy. The worst of these would include:

* 1 million jobs lost in the first two years;

* By 2023, GDP would be down by $117 billion, by $190 billion in 2026 and by $119 billion in 2031; and

* Ordinary capital, or investments in equipment and structures, would be $80 billion less in 2023 and $83 billion and $66 billion less in 2026 and 2031, respectively.

The study also notes the following:

* Investments in intangibles, or “firm-specific capital,” are highly mobile and more sensitive to marginal tax rate changes. Such investments would fall 2.7% by year two and would be down a total of 3.8% by year five.

* The average annual reduction in employment would be equivalent to a loss of 600,000 jobs each year over 10 years.

* Real wages would fall by 0.6% in the long run, and total labor compensation, including wages and benefits, would decline by 0.6% initially before falling by 0.3% after 10 years. In the long run, total compensation would also decline by 0.6%.