AGC members are asked to write their Senators and Congressman and ask for support and cosponsorship of both bills. Sample letters can be found in the Legislative Area of the Members Only section on AGC’s website (www.agc.org).

Health Care Mandate Bills Return: Congressional Democrats in both the House and Senate have reintroduced "Patients’ Bill of Rights" legislation, with Senate Democrats placing it at the top of their "Top Five" bill list for the 106th Congress. Both of these bills are opposed by AGC as they seek health care reform through increased federal mandates that will raise health care costs and mandate coverage. Of particular concern in both bills is a provision that would allow patients to sue managed care plans for damages when benefits are delayed or denied. AGC believes that competitive, market-based forces and not government dictates will drive health care costs down and allow greater access to health care.

Sen. Domenici Introduces Bill to Make Budget and Appropriations Follow Two-Year Cycle: Sen. Pete Domenici (R-NM), Chairman Senate Budget Committee, proposed legislation this week to change the annual budget and appropriations process to a two-year cycle. He also proposed placing stricter controls on emergency supplemental spending and an automatic continuing resolution if the new fiscal year starts without all appropriations bills passed into law.

Study Shows Water Utilities Will Need $325 billion over 20 years for Infrastructure improvements: An American Waterworks Association report issued on January 15 demonstrates that water utilities will need about $325 billion for infrastructure improvements over the next 20 years. The recent study shows much greater needs than the Environmental Protection Agency (EPA) estimated in 1997 in their needs report, which claimed that water systems would need about $138 billion over a 20-year period.

Vote for the Most Annoying Tax! House Majority Leader Dick Armey has launched an internet poll where taxpayers can vote for the "most annoying tax." Poll participants are able to select from ten different taxes, including income and death taxes. AGC members are invited to take part in this poll by logging on to www.freedom.gov.

Supreme Court Rules on Subcontractor Case: The Supreme Court ruled, in Department of the Army v. Blue Fox, that a subcontractor cannot sue the federal government for an "equitable lien" when a prime contractor defaults. The subcontractor, Blue Fox, performed construction work on a telecommunications project in which the prime contractor, Verdan Technologies, did not have to obtain a Miller Act bond. Had the Miller Act bond been in place, Blue Fox would have been protected when the prime defaulted. This case was narrowly decided on issues of sovereign immunity and does not adversely impact contractors’ or subcontractors’ rights under the Miller Act.