Academy of Hospitality Industry Attorneys April 2010

1. Academy of Hospitality Industry Attorneys April 2010

2. AH&LA Governmental Affairs Department Led The Fight In Washington On These Important Industry Issues Business Travel / Travel Promotion Act Online Travel Legislation Healthcare Reform Legislation Card Check Legislation Immigration / H-2B Visa Reforms Major Issues

3. Tourism and Business Travel: Why We Need To Be Proactive 2000 to 2009 – 2.4 million drop in visitors demonstrated post-9/11 travel had not fully recovered, costing the U.S. economy around $509 billion in lost spending Early 2009 Increase in negative comments by Administration/lawmakers placing economic blame on industry for “frivolous” corporate meetings. Led to 35% drop in meetings; Est.1-2 billion in conferences cancelled first two months of 2009. AH&LA and travel industry responded aggressively, issued statements and corporate travel guidelines. Demanded Congress tone down its rhetoric against industry and its luxury segments. AH&LA promoted passage of Travel Promotion Act as a way to boost tourism and its multiplier effect on the economy Major IssuesTourism and Business Travel

4. Travel Promotion Act (S. 1023) House passed on October 7, 358-66 Senate passed on February 25, 2010, 78-18 Creates public-private partnership to explain U.S. security policies, attract millions of international visitors through new ad programs. $10 fee from incoming Visa Waiver countries and “in kind” travel industry contributions funding program. Bill provides $20 million in start-up funds over 3 years. TPA signed into law by President Obama on March 4 Next steps: Commerce Department appoints partnership corporation board members, secure funding resources. First set of ads, mid-2011. Major IssuesTravel Promotion Act

5. Major IssuesTravel Promotion Act President Obama Signs Travel Promotion Act: March 4, 2010

6. Major IssuesOnline Travel Companies Dispute

7. Major IssuesOnline Travel Companies Dispute • TPIs/OTCs Proposed Federal Preferential Tax Treatment for Themselves • Preempts state and local tax authority and limits tax to discounted rate • Mandates that traditional travel agents would enjoy preferential tax treatment • Specifically bans hotels from utilizing new tax category • Hotels Placed in Extreme Jeopardy • States and localities would look to hotels to make up for lost revenue • Makes hotels vulnerable to tax on revenue not received • Places hotel Websites at competitive disadvantage • TPIs protected from full tax where hotels will continue to pay full tax • Can undercut hotels in final price of room (even when room rate is equal) • AHLA Actively Lobbying Against “Internet Travel Tax Fairness Act”

8. Benefits of New Healthcare Law Small businesses will receive tax credits to help them buy insurance for their employees All new policies will be required to cover preventive care, including annual physical exams, pre-existing conditions and prohibit lifetime benefit caps. Adult children can stay on their parents' policies until they are 26 Coverage of more employees Drawbacks of New Healthcare Law Small business pooling across state lines is not allowed Employer penalty of $2,000 per employee for non-coverage Will strongly impact hoteliers who depend on seasonal or temporary employees Does not provide meaningful tort reform Increased paperwork on businesses Limits in Health Savings Accounts and Flexible Spending Plans Major IssuesHealthcare Reform Legislation

9. Timeline of New Healthcare Law 2010: Cover family to age 26, no denial of pre-existing conditions on children; preventative services covered. Small biz tax credits up to 35% of cost for employers with less than 25 employees and wage less than $50K, high risk pools created. 2011: Report value of healthcare on W2 forms, raise HSA non-allowed penalty to 20%, prohibit FSA and HSA coverage of over-the-counter drugs; federal review of insurance rates begin. 2013: States may form interstate compacts for pooling, 2.3% tax on medical device manufacturers begins, 0.9% hospital insurance tax begins for employees earning over $200K, FSA contributions limited to $2,500/year. 2014: Employers with 50-200 employees must offer coverage or pay $2K per employee penalty. Insurance coverage of all pre-existing conditions begins. No waiting periods for coverage longer than 90 days. State exchanges created. Individual mandate begins to have coverage; $95 penalty if not covered. Employers over 200 employees must offer coverage.. Major IssuesHealthcare Reform Legislation

10. AH&LA Successful In Stalling EFCA Vigorous AH&LA / CDW campaign made EFCA a political liability AHLA & others commission job study – EFCA would lead to loss of 600,000 jobs in first year Healthcare legislation took priority over passage of EFCA AH&LA produced and distributed educational card check videos for employees in English and Spanish Major IssuesCard Check Legislation

11. Major IssuesCard Check Legislation Elections 2008: Card Check TV Ads

12. Major IssuesCard Check Legislation • 2010 Outlook for EFCA • Pass some form of EFCA to move legislation, appease organized labor • Becker NLRB appointment may cause sections of EFCA to be implemented through regulatory/administrative process • Becker NLRB Appointment May See Parts of EFCA Implemented • Pro-union and former SEIU lawyer Craig Becker appointed by Obama recess appointment to NLRB in March • Becker and other Dem nominee Mark Pearce will serve 10 months until Jan. 19, 2011. 220 pending cases await NLRB action. • Watching for decisions that would affect union organizing strategies mentioned as EFCA compromises: • Union use of internal email systems to circulate pro-union information • Companies will be required to provide union access to company property

13. Major IssuesCard Check Legislation Employee Card Check Video:Highlights

14. InvolvementLegislative Action Summit Spring 2011Washington, D.C.

15. Marlene Colucci Executive Vice President (202) 289-3121 mcolucci@ahla.com www.ahla.com/government Contact Information

16. Academy of Hospitality Industry Attorneys April 2010