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Construction Legislative Week In Review
From the Congressional Relations Staff
February 11, 1999
Volume 4, Issue 6

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
S Corporation Revision Bill Introduced

Congressman Clay Shaw (R-FL) this week introduced the Subchapter S Revision Act of 1999 to improve S corporations’ access to capital and eliminate unnecessary and complex rules that currently apply to them. Among other provisions, this legislation would count all family members as one shareholder; permit issuance of convertible or plain vanilla preferred stock; apply C corporation rules for fringe benefit purposes; and, put the House of Representatives on record as opposing President Clinton's proposal to treat the conversion of large C corporations to S corporations as taxable liquidations. AGC strongly supports Rep. Shaw’s bill (no bill number has been assigned).

Senate Commerce Committee approves FAA and AIP multi-year reauthorization: On February 11, the Senate Commerce Committee approved S.82, the Air Transportation Improvement Act. The bill reauthorizes the Federal Aviation Administration (FAA) and Airport Improvement Program (AIP) through fiscal year 2000. The FAA and AIP authorizations expire on March 31, 1999. The House has passed a bill extending the programs through September 30, 1999 , but does not intend to move a multi-year bill until May.

TEA-21 funding threatened: President Clinton’s fiscal year 2000 budget violates the law of TEA-21 by diverting most of the $1.5 billion in additional gas tax revenues to a few select transportation programs, rather than distributing the additional funds by formula to the states as TEA-21 directs. Less than one year since the signing of TEA-21, the promises made in TEA-21 are being threatened. AGC must protect TEA-21 from any meddling with the "firewalls" included in the bill that ensure the annual fuel tax revenues will be spent on transportation improvements. Please call or fax your Representatives and urge them to oppose President Clinton’s budget proposal because it changes the TEA-21 funding formula and tramples states’ rights. (A sample letter is available on the AGC website www. agc.org >Members Only Section.>Legislative Area>Congress at Your Fingertips>Write to Congress.)

Ergonomics draft circulating at OSHA—A January 6th draft of OSHA’s proposed ergonomics regulations has been leaked. While the proposed rule would not apply to the maritime, construction or agriculture industries, it is expected those industries would be covered under subsequent regulations. The draft follows previous ergonomics proposals and has been described by human resources professionals "as too complex and too detailed" to be effective.

Enzi reintroduces SAFE Act—Wyoming Senator Mike Enzi has reintroduced legislation to modernize the Occupational Safety and Health Act. It focuses on preventing accidents in the workplace, rather than issuing citations. AGC strongly supported the SAFE Act last year.

Ask Congress to Support Death Tax Relief —Congressional Republicans are currently struggling to formulate a consensus tax cut plan for this year. Some favor a 10 percent, across-the-board income tax cut, while others advocate targeted tax cuts. Members will be back in their home districts during the President’s Day recess February 13-21. During this time, take a moment to call or fax your member’s local office and tell him/her that you want Congress to eliminate the death tax this year. Here are a few points to make:

  • Death tax planning diverts valuable resources from investment and employment;
  • Death taxes are a primary reason why businesses fail to survive beyond one generation;
  • With the death tax as a leading cause of business failures I am concerned about the future of my company and its contribution to my community.

Ask your Representative and Senators to cosponsor legislation to eliminate the death tax and to support these bills when Congress considers tax cuts this year.

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