SGMA Seeks Support for PHIT and Lacey Acts

The PHIT Act allows consumers to get reimbursed with pre-tax dollars to cover expenses related to sports, fitness and other physical activities. If included in health care reform – which Congress is debating right now – Americans could place up to $2,000 annually in existing pre-tax Flexible Spending Accounts (FSA), Medical Savings Accounts (MSA) and/or medical reimbursement arrangements to pay for physical activities — as a form of preventative health care. The types of expenses which people can apply for reimbursement range from health club fees and youth soccer registration fees to purchasing a baseball bat or buying a treadmill.

Since January of this year, more than 300 letters to support PHIT have been sent to various members of the U.S. Congress. SGMA called it “imperative” that the general public send letters, faxes, and emails to their representatives in Washington, D.C. expressing their support for the PHIT Act. A microsite, www.getphit.sgma.com, has been set up to push the effort.

Separately, SGMA stated its support for preserving the status quo of the Lacey Act. Currently, the Lacey Act states that sporting goods are exempt from the new reporting requirements on wood and plant content in imported products. That is now being challenged.

According to the SGMA, non-governmental organizations and environmental groups are committed to broadening the reporting requirement to include sporting goods. These groups point out that to discourage illegal harvesting, all products with wood and plant content must declare the genus, species and country of origin.

SGMA said it will continue its efforts to preserve the sporting goods exemption from this new reporting requirement.  However, given the atmosphere in Washington, D.C. SGMA will also prepare a back-up plan to limit the industry’s exposure should Customs and Border Protection (CBP) indicate a change in position.