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Construction Legislative Week In Review
From the Congressional Relations Staff
June 10, 1999
Volume 4, Issue 23

The Associated
General Contractors
of America
333 John Carlyle Street
Suite 200
Alexandria, VA 22314
(703) 548-3118
(703) 837-5404 fax


Jeffrey D. Shoaf
Executive Director
Congressional Relations
shoafj@agc.org

202/383-2762

Joan Huntley LaVor
Director
AGC PAC
lavorj@agc.org

202/383-2761

Peter Loughlin
Director
Construction Markets
loughlip@agc.org

202/383-2766

Loren E. Sweatt
Director
Procurement and
Environment
sweattl@agc.org
202/383-2760

Phil Thoden
Director
Tax & Fiscal Affairs
thodenp@agc.org
202/383-2764

Patrick Wilson
Director
Human Resources & Labor
wilsonp@agc.org
202/383-2763
GAO Releases Utility Relocation Study Initiated by AGC

The General Accounting Office (GAO) released its study of the effect of utility relocation delays on the delivery and cost of federal-aid highway and bridge projects. AGC asked Congress to include the study in TEA-21 and met with GAO to provide AGC contacts throughout the country, in addition to providing other pertinent information. The study concludes that project construction is often delayed when utilities are not relocated in a timely manner. The most common solution among the states is to minimize delays through early planning and coordination between the many project participants. Contractors also informed the GAO that utilities are often unresponsive to contractors’ requests for needed actions.

AGC Obtains Draft Blacklisting Regulations: Regulations promised by Vice President Gore in January 1997 to the AFL-CIO have been sent to the Federal Acquisition Regulation (FAR) Council for approval. The draft contains provisions to amend contractor responsibility determinations (FAR Part 9) and allowable costs (FAR Part 31). If proposed in their current form, the regulations would make a contracting officer consider "persuasive evidence" of a contractor’s "noncompliance with tax, employment, environmental, and anti-trust laws." A contracting officer could prevent award of a contract based on allegations and rumors. The rule is expected to be in the Federal Register for a 120-day comment period mid- to late June.

EPA Issues Ozone Attainment Determinations: Ozone designations signed by EPA Administrator Carol Browner on May 12 were published in the Federal Register June 9. Ten areas have been designated as having already attained the one-hour ozone standard. They are Boston-Lawrence-Worcester, MA-NH; Memphis, TN; Muskegon, Allegan County, Oceana County, and Mason County, MI; Portland, ME, Portsmouth-Dover-Rochester, NH, Providence, RI; and Door County, WI. The seven areas proposed for attainment of the one-hour standard are Cincinnati-Hamilton, OH-KY; Pittsburgh-Beaver Valley, PA; Lancaster, PA; Sunland Park, NM; LaFourche Parish, LA; Kansas City, MO-KS; and Spalding County, GA. EPA also indicated that some of these areas would not meet the more restrictive 8-hour standard. The DC Circuit Court of Appeals, however, struck down the 8-hour standard, May 14, 1999.

Superfund Passes Subcommittee: The Recycle America Lands Act, H.R. 1300, passed the Subcommittee on Water Resources and Environment by a margin of 22-9, with 2 voting present. The bill reauthorizes the Superfund program. Amendments were offered to address concerns raised by EPA at a hearing three weeks ago. H.R. 1300 contains a provision relieving innocent contractors of Superfund liability when they do not own the site, are operating under contract, have no historical knowledge of the site, and contain any hazardous waste discovered on the property.

House Conservatives’ Tax Proposal to Include Death Tax Elimination: Members of the House Conservative Action Team (CATS) intend to unveil a tax relief proposal within two weeks that includes full elimination of the death tax, in addition to capital gains reduction and elimination of the marriage tax penalty. According to a CATS source, the proposal will include H.R.8, the Dunn/Tanner death tax bill that gradually eliminates the tax over a ten-year period. The CAT’s proposal is expected to cost within the $779 billion over ten years framework set by the FY 2000 budget resolution. Meanwhile, Treasury Secretary Robert Rubin yesterday told Congressional Democrats that the administration does not believe a tax cut is necessary this year because of the strong economy and the importance of paying down the national debt. Senate Finance Committee Ranking Minority Member Pat Moynihan (D-NY) also said it's too soon to know if committee Democrats will be able to work with the panel's GOP majority to develop a tax cut next month.

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