Dem Victory Could Be

Breakthrough for Congress

 

"The Democrats’ ascension to power in the House and Senate will create both challenges and opportunities for the club industry in 2007," reports Andrew Fortin, a Washington, DC-based club attorney. "Despite reports of impending gridlock, I think you will see a 'race to the middle' as each party tries to gain the high ground before the 2008 election cycle."

 

Among the positives? A democratic controlled Congress will be more likely to support and pass comprehensive immigration reform legislation which will help ensure that clubs will have access to qualified workers now and in the future. Access to qualified workers is an issue that will soon touch all clubs and ensuring access to legal, qualified workers is a critical issue for our industry.

 

On the down side, the two most important committee chairmanships in the House (Judiciary and Ways and Means) will now be held by members who have been strong supporters of anti- club legislation. Both incoming Judiciary Chair John Conyers (MI) and Ways and Means Chair Charles Rangel (NY) were cosponsors of anti club bills support by Martha Burke and the National Council of Women's Organizations. These committees have jurisdiction over tax issues (Ways and Means) as well as the ability to shape association rights (Judiciary).

 

The defeat of Senator Jim Talent in Missouri could derail progress on employer friendly health care reform. Senator Talent was a tireless champion for Small Business Health Plans (SBHPs) that would help small employers like private clubs. The legislation was supported by both CMAA and NCA over the past few sessions and came very close to passage in 2006.

 

Additionally, the Democrats have made raising the minimum wage a center piece of their agenda. Expect this to be one of the first issues to be voted on in 2007. Although President Bush will threaten a veto, don't be surprised if he ends up endorsing an increase.

 

Environmental issues will also reemerge under the new democratic majority. From worker safety, chemical usage/notifications issues, water usage restrictions and perhaps new levies on commercial energy use (to combat global climate change) are all likely to get a thorough vetting.

 

Club's can also expect to see some impact from the many state ballot initiatives that were decided in this cycle.

 

The issue of spousal rights and same-sex marriage seems to have reached a plateau with the latest round of state ballot initiatives. Colorado, Idaho, South Carolina, South Dakota, Tennessee, Virginia and Wisconsin have joined the roughly 19 or so jurisdictions passing bans on legal rights for such couples while Arizona became the first state where voters refused to pass such a ban. It could be an indication that voters are turning a cynical eye to the repeated "end of marriage" as we know it alarmists and turning there focus to corruption, war and the economy. As most states have now taken a position on this issue generally speaking clubs in the Northeast (MA, RI, VT, CT) and clubs in the West (CA, AZ) may need to deal with legal obligations associated with domestic partners or same-sex couples.

 

In another series of ballot initiatives, 6 states (AZ, CO, MO, MT, NV and OH) all approved increases in the state minimum wage to levels well above the federal level. All of these initiatives passed by substantial margins which supports the notion that any veto threat by President Bush on a federal increase will be a hollow threat.

 

As our industry learned in the events surrounding the Deepdale Golf Club, private clubs are not immune from the abuse of eminent domain power by local governments. The good news in the 2006 elections is that voters in 8 states (AZ, FL, MI, NV, ND, OR AND SC) approved bans on seizures of private property for transfer to another private entity.

 

The change in the power structure in the U.S. Congress will certainly create some challenges for our industry and its agenda. At the same time, by breaking the GOP's hold on power it may create a positive environment for consideration of a whole host of policies as the GOP now has a reinvigorated competitor. Expect a minimum wage hike almost immediately in 2007, and be on the look out for attacks against club privacy rights. At the same time, we can be hopeful on progress on issues ranging from heath care to immigration. The outcome is one we as an industry can guide with our activism.

 

Andrew Fortin is an attorney and advocate who works to promote freedom of association rights in Washington DC. He is a former senior congressional staffer, club lobbyist and is an attorney licensed in Virginia and the District of Columbia. He may be reached at [email protected] or at 202.236.2199