Recent Alerts
Cobra Subsidy Extended Through March 31, 2010
On March 2, 2010, President Obama signed into law the Temporary Extension Act of 2010 (H.R. 4691), which amends the American Recovery and Reinvestment Act of 2009 (ARRA). Among other things, the Act extends eligibility for the 65%, 15-month COBRA premium subsidy to individuals who have been involuntarily terminated through March 31, 2010. Without the extension, employees laid off after February 28th would have been ineligible for the subsidy. The law is retroactive, so individuals who were involuntarily terminated on March 1st and 2nd are eligible for the subsidy.
Background
The ARRA, as amended on December 19, 2009 by the Department of Defense Appropriations Act, 2010 (2010 DOD Act) provides for COBRA premium reductions. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. To qualify, individuals must experience a COBRA qualifying event that is the involuntary termination of a covered employee's employment. The premium reduction applies to periods of health coverage that began on or after February 17, 2009 and lasts for up to 15 months.
What You Should Do Now
Employers and other health plan sponsors should revise their COBRA notices to reflect the new March 31, 2010 subsidy eligibility expiration date. For more detailed information about COBRA and the COBRA subsidy go to the ACSI Legal Reference Page then look under Employment.
The Department of Labor's Employee Benefits Security Administration has updated the introduction on the COBRA webpage to reflect the Temporary Extension Act of 2010 and has added a link to the law. EBSA is updating the fact sheet, FAQs and other materials on the COBRA webpage.
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New Law Requires Small Christian Schools and Preschools to File Form 990-N
Congress amended the tax code in 2006 to add a return filing requirement for small tax exempt organizations: those with average gross income (contributions and all other sources) less than $25,000 (for the 2010 and later filing years, this threshold becomes $50,000). Before the law change, small exempt organizations had no filing obligation, simply because they were small.
The law now requires small organizations to file Form 990-N, which is done at the IRS website. The form is filed here. This applies to small independent Christian Schools or Preschools.
If a small organization is exempt from filing as a church or integrated auxiliary of a church, it is not required to file because of this law. Church-sponsored Christian Schools and Preschools are exempt from filing the 990.
A small organization subject to this filing obligation which does not file "for three consecutive tax years will automatically lose its tax-exempt status." (IRS website) It can get its exemption back, but it must re-apply, paying the fee and preparing the application form. 2009 was the third year since passage of the law, so organizations required to file and which have not filed, will be the subject of enforcement action by the IRS starting later this year.
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Federal Legislation Alert—H.R. 4247
This bill passed the House on March 3. We now wait to see what will happen in the Senate.
H.R. 4247, authored by Congressman George Miller (Chairman of the Education and Labor Committee), addresses the use of physical restraint and seclusion in schools. In the bill's current form, its provisions are applicable to any school enrolling students who receive support in any form from funds (direct or indirect) appropriated by the U.S. Department of Education. Any private school enrolling but a single student receiving Title services would, thus, be subject to the provisions of the proposed law.
The bill proposes limitations which may be counterproductive to students' safety, while mandating staff training and imposing reporting requirements most private schools will likely find objectionable.
Below, you will find the following two documents:
- A copy of the bill. HR 4247
- A copy of a letter to the House Committee on Education and Labor penned by CAPE Executive Director Joe McTighe, which I urge you to read. HR 4247 CAPE Letter 2-3-10
In its current form, the bill would establish a highly undesirable precedent by using pupil participation in federally funded programs as a trigger for the imposition of completely unrelated regulations. Keep in mind that private schools are not considered recipients of direct federal financial assistance if their students and teachers participate in federally funded programs. However, this legislation covers all schools that accept direct or indirect federal funding.
ACSI is a member of CAPE and supports its efforts in Washington DC through our office there.
Here are talking points for calls or emails to your Congressmen.
- HR 4247 is a bill addressing issues related to the physical restraint and seclusion of students, authored by Congressman George Miller.
- I strongly agree with the intent of the bill, which is to safeguard the well being of our school children.
- Nevertheless, this bill contains provisions that could have exactly the opposite effect. For example:
- A teacher might be reluctant to break up a playground scuffle between two students.
- A school staff member might think twice before grabbing a child who is about to run into a carpool land during after school pick-up.
- The bill subjects private schools to unfunded training, monitoring and reporting requirements on the basis of student’s participation in federally funded programs such as Title I - even though private schools have never been considered to be recipients of federal financial assistance in such instances.
Thank you for your attention to this important matter.
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Congress Expands FMLA for Military Families
On October 28, 2009, President Obama signed into law the Fiscal Year 2010 National Defense Authorization Act (H.R. 2647. This new law included an expansion of the recently-enacted exigency and caregiver leave provisions for military families under the Family and Medical Leave Act of 1993 (FMLA).
Current Law: Exigency leave—up to 12 weeks of leave for urgent needs related to a reservist family member’s (spouse, son, daughter, or parent) call to active service.
H.R. 2647 expands the exigency leave benefits to include family members of active duty service members. Under current law, only family members of National Guard and Reservists are eligible for “exigency leave.
Current Law: Caregiver leave—up to 26 weeks of unpaid leave to an employee to care for a family member (spouse, son, daughter, parent, or next of kin) who is injured while serving on active military duty.
H.R. 2647 expands the caregiver leave provision to include veterans who are undergoing medical treatment, recuperation or therapy for serious injury or illness that occurred any time during the five years preceding the date of treatment.
H.R. 2647 also revises the definition of "serious injury or illness" for active duty members and provides a slightly different definition for veterans. Both are now defined to include an injury or illness that existed before the beginning of the member's active duty and was aggravated by service in the line of duty on active duty in the Armed Forces. And, for veterans, the definition further adds that the injury or illness may manifest itself before or after the member became a veteran.
To be eligible for the leave, employees must work in organizations of 50 or more employees and work at least 1,250 hours in a 12-month period. This law goes into effect immediately!
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U.S. Department of Education Updates State Regulation of Private Schools Report
The U.S. Department of Education’s Office of Non-Public Education (ONPE) has updated the report, State Regulation of Private Schools, which provides
brief descriptions of state requirements that apply to K–12 private schools. The intent of the report is to serve as a reference for public and nonpublic school officials, state policy-makers, researchers, and others. This report is an update of the 2000 publications, which in turn was an update of the 1993 publication, The Regulation of Private Schools in America: A State by State Analysis.
Topics Included in the Report
- Accreditation/Registration/Licensing/Approval
- Teacher Certification
- Length of School Year/Days
- Curriculum
- Recordkeeping/Reports
- Health and Safety Requirements
- Transportation
- Textbooks
- Testing
- Special Education
- Nursing and Health
- Technology
- Professional Development
- Reimbursement for Performing State/Local Functions
- Tax Exemption
- Public Aid for Private Education
- Homeschooling
- Information Resources
In addition, charts summarizing key information from the report are included at the end of the report.
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