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Construction Legislative Week In Review
From the Congressional Relations Staff
July 29, 1999
Volume 4, Issue 30

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

Senate Considers Tax Cuts!

At press time, the Senate is considering a $792 billion tax cut bill. Included in this bill is a modest death tax relief provision that lowers the top rate to 50% in 2001, replaces the unified credit with a true exemption in 2004 and then increases this exemption to $1.5 million in 2007. An amendment by Phil Gramm (R-TX) that included several tax cuts including death tax repeal was defeated this afternoon. Sen. Jon Kyl (R-AZ) is expected to offer an amendment solely to repeal the death tax later this evening. The Kyl amendment, like the Gramm amendment, will be subject to a budgetary "point of order" because it would reduce revenues beyond a 10-year window. 60 Senators must then vote to waive the point of order. Once the full bill is passed by the Senate, GOP leaders are determined to resolve differences between it and the House tax bill before August 6th.

House of Representatives Pass Regulatory Right to Know: By a margin of 254-157, the House passed the Regulatory Right to Know Act, H.R. 1074. It will require a peer review and cost benefit analysis of regulations. The Senate companion (S. 59) is awaiting Senate floor consideration.

Small Business Administration Proposes New Construction Size Standards: On July 26, SBA proposed an increase to the construction industry size standards. Currently, the industry' s small business standard is $17 million. This standard has not been changed since 1984. The new standards would increase General Construction (Major Group 15) to $25 million, Heavy Construction (Major Group 16) $25 million,Construction . Special Trade Contractors (Major Group 17) $10.5 million,and Dredging (a subpart of 16) $20. AGC has supported an increase in the Size standard since 1996. AGC also supports HR 234 mandating an increase and review of the size standards.

EPA Restrictions Contained in Appropriations Measures: Rep. Knollenberg (R-MI) restricted EPA spending on programs that could implement the climate change treaty. the Kyoto Protocol. Rep. Mollohan (D-WV) is expected to propose appropriations language preventing EPA from requiring that twenty-two states submit plans to reduce nitrogen oxide (NOx) emissions to the EPA. EPA contends that NOx emissions emanating from coal fired electricity plants and other sources in the mid-west cause an ozone problem in the northeast.

Miller Act Legislation Expected Next Week: The Construction Industry Payment Protection Act of 1999, H.R. 1219 is expected to be voted on Monday. The legislation would make the payment bond equal to the performance bond, expand notice requriments under the Miller Act to include any third-party delivery system that provides written receipt, and prevent waiver of rights before commencing work.

WRDA 1999 Conference Begins: Today, the House and Senate conferees to the Water Resources Development Act for 1999 (WRDA) met for the first time to reconcile the differences. They hope to resolve all differences by the end of next week, when Congress leaves for the August recess. WRDA 1999 authorizes programs, projects and policies of the Army Corps of Engineers and includes over $2 billion in funds for water projects.

Senate May Pass Short-Term Extension of AIP: Since the Senate has been unable to pass a multi-year reauthorization of the Airport Improvement Program (AIP), they are now considering another short-term extension. Funding for AIP expires on August 6. The House has passed its multi-year bill, H.R. 1000 (AIR-21). The House opposes another extension because they want to keep the pressure on to pass a multi-year bill this year.

Washington: The House Education and the Workforce Committee today passed two labor bills (H.R. 1441, the Truth in Employment Act passed H.R. 1987, the Fair Access to Indemnity and Reimbursement (FAIR) Act,) aimed at stopping "salting" abuses and at providing regulatory relief for businesses from unsuccessful federal government prosecution.

ERGONMICS VOTE NEXT WEEK: The US House of Representatives is poised to consider the Workforce Preservation Act (H.R. 987) next week. Some sources have said that the vote may come as early as Tuesday August 3. This bill is a very high priority for AGC and all members are urged to contact their Representative at (202) 225-3121 to urge them to vote in favor of H.R. 987.

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