The Battle Over Immigration and Its Impact on the Agriculture Industry

By Rebecca Griffin, Staff Member

The truth of the matter is that “immigrants are a growing part of the Kentucky labor force and are often found in difficult to fill occupations, including... agriculture workers on tobacco and horse farms.” Legislative Research Commission, Immigration in Kentucky: A Preliminary Description, No. 305 at 1 (2002). Based on this fact, those in the agriculture and equine industries in Kentucky and throughout the United States should pay close attention to the controversy over the constitutionality of the recent reforms in state immigration laws. The controversy began earlier this year when Arizona strengthened its immigrations laws. The more stringent reforms acted as a catalyst that intensified the debate over illegal immigration and prompted other states and municipalities to draft and promote their own tougher immigration laws. What does Arizona’s immigration law do?, CNN, April 23, 2010, http://articles.cnn.com/2010-04-23/politics/immigration.faq_1_immigration-reform-law-institute-immigrant-advocates-illegal?_s=PM:POLITICS.

An alarming trend in these recently adopted state and municipal laws is the targeting of businesses “who hire illegal laborers.” Id. State legislatures are able to target and pressure businesses to not hire illegal immigrants by including “business death penalty” clauses in their reforms. These provisions allow “the state to revoke the charter and articles of incorporation” of businesses that do not fully comply with reformed immigration laws and could potentially damage equine and agriculture businesses that either knowingly or inadvertently hire illegal immigrants. Id.

Courts throughout the nation are now deciding the fate of these recently enacted reforms. Currently, there is a “split on whether states and municipalities have the right to enforce laws dealing with immigration.” Micheal Rubinkam, Pa. mayor to take immigration law to Supreme Court, Yahoo!, Sept. 9, 2010, http://news.yahoo.com/s/ap/20100909/ap_on_re_us/us_illegal_immigrants_crackdown. The underlying legal issue causing the split is whether the enforcement of state or municipal regulations “intrudes into federal immigration enforcement.” Jerry Markon and Stephanie McCrummen, Arizona Immigration Law SB 1070- judge blocks some sections, Washington Post, July 29, 2010, http://www.washingtonpost.com/wp-dyn/content/article/2010/07/28/AR2010072801794.html. Several courts have already attempted to resolve this issue. In July of this summer, U.S. District Judge Susan Bolton ordered an injunction on portions of the Arizona Bill based on her decision that enforcement of Arizona’s immigration law intrudes on federal enforcement. U.S. v. Arizona, 703 F. Supp. 2d 980 (D. Az. 2010). Similarly, in September of 2010, the Third Circuit came down with a decision - Lozano v. City of Hazleton, No. 07-3531, 2010 U.S. App. Lexis 18835 (3d Cir. Sept. 9, 2010)- that the municipality of Hazleton, PA cannot enforce its immigration laws on the basis of preemption. Rubinkam, supra.

Recent developments suggest that this trend of targeting businesses in state and local immigration law may stop. But, those in support of the more stringent state and municipal immigration laws say they will continue to fight for the measures. Id. Uncertainty about whether or not agriculture or equine industries will suffer from these business death penalty clauses will not be resolved until the Supreme Court rules on the issue. Businesses in these industries have an opportunity to influence this debate by filing suit or intervening in pending suits, arguing that the promulgation and enforcement of immigration law is under the domain of the federal government. By contributing to the debate now, industry players may have a chance to stop state governments from adopting and enforcing business death penalty clauses, which could have fatal consequences for agriculture and equine business in the future.

Looking to China for Environmental Inspiration

By Bradley S. Harn, Staff Member

The 2008 Summer Olympics displayed not only the world’s largest sporting event, but also the rampant pollution plaguing China. Audiences around the world tuned in to find tourists wearing masks and athletes refusing to participate. There is no doubt that the widespread use of coal in China is a major factor in creating these conditions. Roughly 70% of China's total energy consumption comes from coal, but this has lead to severe environmental damage. “China now uses more coal than the United States, Europe and Japan combined, making it the world’s largest emitter of gases that are warming the planet.” Keith Bradsher,

China Outpaces U.S. in Cleaner Coal-Fired Plants

, The New York Times, May 10 2009,

available at

http://www.nytimes.com/2009/05/11/world/asia/11coal.html. Beijing and Shenyang have some of the highest readings for total suspended particulates and SO2 in the world, with coal burning being a major source of this. In southern China, large areas have growing acid rain problems.

Yuhuan 1,000MW Ultra-Supercritical Pressure Boilers, China

, Power-Technology, http://www.power-technology.com/projects/yuhuancoal/ (last visited Sept. 19, 2010).

However, despite China’s enormous reliance on coal, they are also a leader in efficient and alternative energy. For example, China now requires power companies to retire an older, dirtier power plant for each new one they build. Bradsher,

supra

. These new power plants are significantly more efficient than their American counterparts.

Id.

Beyond coal, China is making important strides in other areas.They are currently the world’s second largest producer of wind energy, behind only the United States. Lloyd McGraw,

GWEC: China is the Second Largest Producer of Wind Energy

,

Consumer Energy Report, April 12, 2010,

available at

http://www.consumerenergyreport.com/2010/04/12/gwec-china-is-the-second-largest-producer-of-wind-energy/.

China is also developing significant solar energy and hydroelectric power technologies. “Last year, China invested about $34 billion in solar panels, wind turbines and other alternative energy technologies, nearly twice as much as the United States, where spending fell sharply.” Andrew Higgins,

With Solar Valley Project, China Embarks on Bold Green Mission

, The Washington Post, May 17, 2010,

available at

http://www.washingtonpost.com/wp-dyn/content/article/2010/05/16/AR2010051603482_2.html?sid=ST2010051701091

China has established itself as the worldwide leader in the energy sector. Because of this, the United States needs to greatly increase its own efforts in order to remain competitive. President Obama declared in his January 2010 State of the Union address, “I do not accept a future where the jobs and industries of tomorrow take root beyond our borders, and I know you don’t either.” Bradsher,

supra

. What do you think the U.S. government can do to become a leader in alternative energy policy?

Rentals, Tax Consequences, and the World Equestrian Games

By Stephen Frazier, Staff Member

In 2004, Governor Ernie Fletcher submitted a bid to host the 2010 World Equestrian Games. The two-week event is expected to bring approximately 250,000 international athletes and tourist to Kentucky. Staff Writer,

Kentucky To Bid For 2010 World Equestrian Games

, July 8, 2004,

available at

http://www.alltechfeigames.com/news/detail.aspx? id=1116. Experts estimate that the games will have a $90 million economic impact on the state of Kentucky.

Id

.

One method that citizens of Kentucky are cashing in on the arrival of the World Equestrian Games is by renting their residence during the weeks before, during, and after the games. Depending on the size of the house and location, homes are generating rental income ranging from a couple hundred dollars a night, up to $30,000 for the full duration of the event.

See generally

World Equestrian Game Housing, http://www.2010weghomes.com/ (last visited Sept. 25, 2010). This seems to be a great method for Kentucky residents to generate additional income; however, homeowners need to be aware of a possible issue with huge tax consequences.

Section 61 of the Federal Taxation Statutes states that “gross income means all income from whatever source derived,” including rents. I.R.S. §61 (West 2008). However, Section 280A of the Federal Taxation Statutes provides a tax loophole of which homeowners must be aware. Section 280A(g) states if a taxpayer uses a dwelling as a residence and the unit is rented for less than 15 days during a taxable year, then the income generated from such use shall not be included in gross income under section 61. I.R.S. §280A (West 2008). The World Equestrian Games start on September 25 and end on October 10. Since the World Games occur for a period of sixteen days, homeowners cannot rent their residence for the entire duration of the event and receive the benefit of section 280A.

Over the next month, citizens of Kentucky will have the opportunity to make thousands of dollars by vacating their homes and renting them to tourists. The World Equestrian Games provide an opportunity for homeowners to generate funds to pay off their mortgage and cover living expenses. However, if homeowners are not aware of section 280A, the World Equestrian Games could result in taxpayers having an increased taxable income and large tax due come April 15th.

Out-of-Competition Drug Testing in Time for Breeders' Cup

By: Laurel Benson, Staff Member

Following recent pushes for more stringent drug testing policies, the Kentucky Horse Racing Commission (“KHRC”) has approved an emergency regulation regarding out-of-competition drug testing for horses. Will Graves,

Kentucky approves random drug testing

, Lexington Herald-Leader, Sept. 7, 2010,

available at

http://www.kentucky.com/2010/09/07/1424227/kentucky-approves-out-of-competition.html. The urgency for such a rule arose when Churchill Downs signed the agreement, which requires more stringent testing, with Breeders’ Cup for the 2010 championship, which will be held at Churchill Downs November 5-6 of this year. Tom LaMarra,

Kentucky Drug-Test Upgrade Needed for BC

, Aug. 11, 2010, http://www.bloodhorse.com/horse-racing/articles/58327/kentucky-drug-test-upgrade-needed-for-bc. Breeders’ Cup has used out-of-competition testing for the last three years, in both California and New Jersey.

Id.

While Churchill Downs could have enacted a house rule, the KHRC wanted a more permanent rule, and with the Breeders’ Cup quickly approaching, the need arose for emergency regulation, which goes into effect almost immediately.

Id.

The new regulations themselves are fairly stringent. The policy will allow the KHRC to test any horse eligible to race in Kentucky regardless of their location at any time for illegal blood-doping agents, growth hormones, and nerve-blocking venoms. Janet Patton,

Proposed equine drug-testing rule questioned

, Lexington Herald-Leader, Aug. 26, 2010,

available at

http://www.kentucky.com/2010/08/26/1406726/proposed-blood-doping-rule-questioned.html. This policy adds to current race-day testing, and is deemed to be necessary because while blood-doping agents are only detectable for a short period of time after being administered, the effects of such agents linger for weeks.

Id.

The new policy grants no more than six hours after notification for an owner or trainer to make a horse available for testing. Graves,

supra.

Refusal to submit to testing in that time makes the horse ineligible to race in Kentucky for six months, and a positive test for some of the drugs would impose a minimum five-year suspension and up to $50,000 in fines on the owner or trainer.

Id.

A second violation will result in a lifetime ban for that handler.

Id.

The regulation will go into effect once signed by Kentucky Governor Steve Beshear and filed with the Legislative Research Commission.

Id.

The filing should occur in plenty of time for the Breeders' Cup, but only time will tell how easily enforced these new regulations will be.

New Year, New Apperance

Welcome Readers,

After the Summer hiatus, the KJEANRL Blog is officially back with a new look and new administration. Kim Coghill and Tanner James will be taking over as the Online Editors, striving to build on the foundation laid by former Production Editor, Mark Rouse. This blog was Mark's vision, and our goal is to grow it with the same passion that he had while constructing it.

Before the regular entries begin in earnest, however, we must take care of the first order of business--welcoming the newest members of the Kentucky Journal of Equine, Agriculture, and Natural Resource Law:



  • Sarah Baker

  • Roger Battison

  • Bethany Baxter

  • Laurel Benson

  • John Carter

  • Rose Connolly

  • Chris DeAgano

  • Stephen Frazier

  • Erin Fulkerson

  • Rebecca Griffin

  • Kelli Hagan

  • Hugh Derek Hall

  • Bradley Harn

  • Nathan Harris

  • Ashley Hawk

  • Chris Henderson

  • Nathan Kolb

  • Brad Larkin

  • Steve Neace

  • Ashley Payne

  • Chad Riney

  • Bess Rives

  • Peter Rottgers

  • Ena Viteskic

  • Whitney Waters

  • Litany Webster


Congratulations to all of our new members!

The Fall semester begins Tuesday, August 24th, so expect new entries to follow promptly. We're all looking forward to having another great year and providing you with coverage of the latest legal developments in the equine, agriculture, and natural resource fields.

- KJEANRL Online Editors

Blog to observe Summer Break

Dear Readers,
I would like to take this time to thank you for participating in our blog during it's inaugural year. In it's first year the amount of feedback and subscribers has surpassed what we ever imagined. Because of the success of the blog we have added two online editor positions to the editorial blog. Kim Coghill and Tanner James will be taking over the reins from me and lead the blog this upcoming year. Currently the University of Kentucky College of Law is commencing finals and we cannot ask our staff writers to commit to posting while studying for finals. The success of this blog would not be possible without them and I would like to thank all of them as well as the editorial board for allowing me to undertake this project. I believe that the future of law journals lies in the Internet where ongoing dialogues can develop between legal scholars, students and practitioners.

Because school is not in session over the summer it is unlikely that posting will recommence until August. I have no doubt that at that time the blog will be back better than ever. Again, thank you for your time. This is Production Editor Mark Rouse signing off!

Jockey Safety: Mandatory Medical Information Reporting

By: Jennifer Parker, Staff Member

A study of the years 1993 through 1996, reported in The Journal of the American Medical Association, found that 6545 injuries to jockeys occurred during official horse races in those years. Anna E. Waller, et al.,

Jockey Injuries in the United States

, Journal of the Amer. Med. Assoc. 1326, 1327 (2000). To help deal with these injuries more quickly and safely, many racetracks across the nation have requested that jockeys voluntarily submit their medical information to the track before races. Jeffrey McMurray,

Keeneland Mandates Jockey Medical Information

, Bus. Wk., Apr. 15, 2010,

available at

http://www.businessweek.com/ap/financialnews/D9F3HJJO1.htm. This information is compiled in the Jockey Health Information System, in operation since 2008.

Id.

In this way, medical personnel at the track are able to quickly determine any pertinent medical conditions, allergies, etc. in order to safely treat jockeys at the track.

Recently, Keeneland Race Track in Lexington, Kentucky announced that submission of jockey medical information is now mandatory at the track prior to entering a race.

Id.

While numerous tracks make such submissions voluntary, Keeneland is the first track to mandate it.

Id.

However, since Keeneland's track physician, Barry Schumer, estimates that prior to the mandate approximately 95% of jockeys submitted their medical information voluntarily, it seems that making this a requirement will create no significant problems with compliance.

Id.

The most significant concern with such a requirement would likely be privacy issues if some jockeys do not wish to provide certain medical information. Such privacy issues are protected by this system, however. The Jockey Health Information System can only be accessed with an identification code by medical professionals.

Id.

With such a high number of injuries being incurred by jockeys on racetracks and significant compliance already, mandating submission of medical information is a move in the right direction regarding jockey safety. With success stories already arising from access to this reporting system, other tracks are likely to follow Keeneland's lead and make submission of jockey medical information a requirement. But jockeys should be aware that this is a new requirement that may be catching on nationwide. They will need to determine whether reporting their medical information is voluntary or mandatory at a particular track prior to racing there and deal with any problems they might have with this beforehand, so as not to be prevented from racing.

It’s Time for the Lobster Monopoly to End: Maine Needs to Grow Up Like Its Lobsters

Article By: Leslie M. MacRae, JNREL Vol. 18, No. 2

Abstract By: Brandon Wells, Staff Member

Want to go to Maine and catch your own lobster? Well you may find yourself in a lot of trouble. Along with other types of regulation such as limiting quotas, equipment regulation, and seasonal restrictions, Maine has a system of regulation based on state citizenship. In effect, this means that unless you have been a resident of Maine for at least a couple years or so, and in some cases have participated in a type of lobster apprenticeship, you can forget about commercially fishing for lobster legally. While many of the types of regulations used by Maine on its lobster industry are legal and in many cases promote economic well being, regulations based on durational residency requirements are arguably unconstitutional.

Some earlier cases with facts very similar to the issue in Maine have been decided based on the Privileges and Immunities Clause of the United States Constitution. In the earlier case, Hicklin v. Orbeck, 437 U.S. 518 (1978), the court fashioned a two-part test to determine unconstitutionality. The first part of the test was that the state had to demonstrate that non-residents constituted a particular "source of evil." The second part of the test stated that the discrimination had to have a "substantial relationship" to the problem. Being able to prove that non-residents are sources of evil will be hard for Maine, or any other state to do, although it has happened in some cases. See State v. Kemp, 44 N.W. 2d 214 (S.D. 1950).

Over thirty years ago, Maine had implemented a durational residency requirement much like the one they have today. In 1974, the case of Massey v. Appolonio held that the residency requirement violated the Equal Protection Clause. Massey v. Appolonio, 387 F. Supp. 373, (D. Me. 1974). The only problem with the court's decision was that it made clear that it was only discussing the constitutionality of the residency requirement (which was three years at the time) and not whether Maine was able to limit fishing to Maine residents only. In a future suit based on these unresolved matters, it seems likely that Maine will be in a very precarious position, and may very well lose again.

It is anticipated that Maine will argue that nonresidents are a "source of evil" when it comes to protecting their local commercial lobster industry. Maine may say that they are protecting their culture, but it is extremely hard to see how the residency requirements would solve this problem. Even so, there are many other ways to protect this perceived harm, such as regulations based on the type and size of boat.

Maine may additionally argue that non- residential lobstermen will destroy the state's conservation efforts. However, non-residents will be subject to the same regulations and laws as Maine lobstermen. Another potential argument is that lobster is the state's own unique resource. Nevertheless, there are a number of facts to rebut Maine's argument, as lobsters are mobile and are found in many spots far south of Maine on the east coast. Also, the Court has all but out right rejected the idea of ownership over living natural resources.

Along with this shift in thinking by the Court, along with the rigid tests of the Privileges and Immunities Clause and the case law that follows it, Maine will have a very difficult time holding its durational residency requirement up to constitutional muster. Maine has the ability and the knowledge to maintain its beautiful industry and resources without resorting to such illegal statutes and manners. Putting to work its legal and constitutional controls over lobster fishing will see to it that Maine's foothold in the commercial lobster industry continues for many years to come.