By Mark Valentini, Director of Legislative Affairs
The House and Senate also passed last week the National Defense Authorization Act (NDAA) to fund the military through next year. The President has threatened to veto the bill because it does not contain the repeal of Section 230, which provides liability protection for social media platforms based on the content they post. While there is bipartisan support for Section 230 reform, most lawmakers agree the NDAA is not the appropriate vehicle for it. The bill passed Congress with more than the two-thirds majority needed to override a presidential veto, but it remains unknown if enough Republicans will rally behind the President to maintain his veto should that happen.
More importantly for PHCC members, the legislation contains a provision (the Corporate Transparency Act) which requires businesses with 20 or fewer employees to report to the Financial Crimes Enforcement Network (FinCEN, an agency under the Department of Treasury) via their financial institutions any individuals with at least 25% beneficial ownership in the business. The language gives FinCEN the broad authority to define what “beneficial ownership” means, and the data would be entered into a database managed by FinCEN that allows law enforcement authorities access without a judicial warrant. PHCC is opposed to the Corporate Transparency Act. If the NDAA is vetoed and that veto is not overridden, Congress likely will opt for a clean CR funding the military into next year, and PHCC will continue to advocate against inclusion of the Corporate Transparency Act and its Senate companion, the ILLICIT CASH Act, in any must-pass legislation or as a stand-alone bill in the next Congress.
Director of Legislative Affairs , PHCC-National Association