At a press conference today, Chairman of the House Ways and Means Committee Bill Archer said the GOP bill he’s crafting will include a phase out of the death tax. While not offering specifics, it is likely that his tax bill will follow the Dunn/Tanner approach (H.R. 8) that reduces the tax rate by 5% per year over ten years. H.R. 8 now has 208 cosponsors and AGC is working to get 218 cosponsors – a majority of the House -- before the July 4th recess.

Full Senate to Debate Managed Care Reform Starting July 12th: Senate Republicans and Democrats this week reached an agreement to debate managed care legislation beginning July 12th with a final vote coming July 15th. Under the agreement, Democrats will be free to offer "mandate amendments" – such as extending liability to health care plans and requiring plans to pay for services not covered but deemed "medically necessary" by a physician. These amendments will increased premiums. It is critical that AGC members fax or write their Senators over the next two weeks urging opposition to these and other mandate amendments. A sample leter to Congress by contacting Phil Thoden with AGC Congressional Relations at 202.383.2764.

Senate to consider aviation bill after July 4th Recess: The Senate will consider Senate 82, the two-year reauthorization of the FAA and AIP, in late July. AGC is working with Senator Hollings (D-SC), who is supportive of taking the Aviation Trust Fund off-budget, to develop support for spending the aviation revenues on improving our nation’s airports and aviation systems. Please call your Senators when they are at home for the July 4th recess next week and urge them to support Senator Hollings in his effort to spend aviation taxes for their intended purpose.

One-Call Best Practices Study Released: The Department of Transportation released Common Ground: Study of One-Call Systems and Damage Prevention Best Practices on June 30th. The study focuses on the shared responsibility of underground damage prevention. AGC Members played significant roles in developing the study. The study outlines good practices for one-call systems. A copy of the study can be obtained through here.

Prompt Pay Interest Rate:
The Prompt Pay/Contract Disputes Interest rate is 6.5% for July 1, 1999 to December 31, 1999.

ACTION REQUESTED: Urge your Senators to cosponsor S. 1053 , legislation to reinstate EPA’s grandfather clause. This legislation would allow previously approved highway safety projects to continue during a lapse in approval of state implementation plans. EPA was prevented from using this clause by a recent court decision. Call the Capitol Operator at 202-225-3121.

"MURKY" FMLA May Get Even More Complicated: Senator Patty Murray (D-WA) joined an effort, begun by the President, to expand the Family and Medical Leave Act (FMLA). At a Capitol Hill press conference Wednesday, Sen. Murray announced her attention to attach an amendment to the next appropriations bill that is considered by the Senate to expand the present FMLA to give parents to 24 hours of unpaid leave per year. This announcement comes on the heals of last month’s proposal by President Clinton to force state governments to pay unemployment insurance to people who are on leave under the FLMA. This effort has been roundly criticized by employers and by many Governors and State Legislators who resent this unprecedented intrusion into state control of unemployment insurance. The Murray proposal is especially troubling for employers because there are already serious concerns about the ambiguity of the current FMLA. Most employers already permit employees to take personal time for such activities. A recent study conducted by the US Chamber of Commerce indicated that few employees are unsuccessful in negotiating for time-off work for their children’s school activities.