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News & Views News & Views
Associated General Contractors of America
Volume 3 * Issue 12 * July 15, 1999

AGC NEWS

AGC Tax Committee Lobbies Congress on the Death Tax

Members of the AGC Tax and Fiscal Affairs Committee descended on Capitol Hill June 24 and urged Congress to "demolish the death tax." By holding its summer meeting in Washington, Tax Committee members were able to meet personally with their legislators to apprise them of AGC's support for eliminating this burdensome tax.

Rep. Rick Hill AGC members heard from Senator Jon Kyl (R-Ariz.) (below right) about his legislative efforts to fully and immediately end the death tax. Rep. Rick Hill (R-Mont.) (left) joined the Committee for lunch and shared his views on other tax issues important to the construction industry, such as elimination of the look back requirement for long-term construction contracts. Before being elected to Congress, Rep. Hill worked in the insurance and bonding industry and has extensive experience dealing with construction accounting. Rep. Hal Rogers (R-Ky.) also delighted members with a comprehensive and entertaining tour of the U.S. Capitol Building.

Senator Jon KylAGC greatly appreciates the time these Members of Congress took to make the Tax Committee's trip to Washington an informative one.

If you have not yet written Congress asking for death tax elimination, sample letters can be found in the Members Only Legislative Area of AGC's Web site (www.agc.org).

For more info: Phil Thoden at 202-383-2764 or thodenp@agc.org.

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Shared Responsibility Is Key Theme of Underground Damage Prevention Study

By an overwhelming vote of 316-110, the House has approved H.R. 1000, the Airport Investment and Reform Act for the 21st Century (AIR-21). In winning approval of the bill, House Transportation and Infrastructure Committee Chairman Bud Shuster (R-Pa.) was able to defeat efforts by the Chairmen of the Budget and Appropriations Committees to remove language from the bill that would take the Aviation Trust Fund off-budget and limit general fund payments for airport improvements. As approved, AIR-21 will take the Aviation Trust Fund off-budget and increase Airport Improvement Program (AIP) funding to $4 billion in Fiscal Year 2001 increasing to $4.35 billion by FY 2004. The AIP, which funds improvements to runways, terminals and other facilities, is set at $1.95 billion this year. An amendment to keep the existing $3 cap on passenger facility charges (PFCs) that local airports are allowed to assess to pay for infrastructure improvements was also defeated. The bill allows state and local officials the flexibility to increase PFCs up to $6.

The battle now moves to the Senate where S. 82 has languished since being approved by the Commerce Committee in February. The Senate bill does not take the Aviation Trust Fund off-budget, and the AIP funding levels are significantly less than in AIR-21. AGC is working with Senator Ernest Hollings (D-S.C.) to generate support in the Senate for his efforts to ensure that aviation tax revenue is used to support aviation improvements. No action on the bill is currently scheduled. Transportation Secretary Rodney Slater has stated that President Clinton will veto the bill if it includes trust fund off-budget language.

For more info: Brian Deery mailto:deeryb@agc.org at 202-383-2719 and Peter Loughlin loughlip@agc.org at 202-383-2766.

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LEGISLATIVE NEWS

Transportation Funding Bill -- Passed in House

By a vote of 429-3, the House has approved the transportation appropriations bill for Fiscal Year 2000. The bill provides $28.9 billion in funding for the highway program, including $27.7 billion for the core program and $1.2 billion for exempt programs and minimum allocation. This is a $2.2 billion increase over current year funding and complies with the funding level contained in TEA-21, including $1.45 billion in additional funding resulting from increased gas tax revenue. The Federal Aviation Administration's Airport Improvement Program (AIP) is funded at $2.25 billion up from this year's $1.95 billion level. The action now shifts to the Senate where the bill is awaiting floor action.

For more info: Brian Deery mailto:deeryb@agc.org at 202-383-2719 and Peter Loughlin loughlip@agc.org at 202-383-2766.

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Missouri and Idaho Challenge Third-Party Lawsuits

AGC of Missouri, AGC of St. Louis, and the Heavy Contractors of Kansas City filed a motion to intervene in a lawsuit by the Sierra Club attempting to sanction the state's highway funds. Idaho Branch AGC filed to intervene in a similar case brought by the Sierra Club and Environmental Defense Fund. In Missouri, the Sierra Club claims EPA Administrator Carol Browner did not have discretionary authority to allow Missouri to go forward with road building, since St. Louis was not in attainment with the ozone standard.

In Idaho, the Sierra Club is asking the court to vacate Ada County, Idaho's attainment status for particulate matter. On March 12, 1999, the EPA published a final rule in the Federal Register stating Ada County reached particulate matter attainment. Prior to this finding, Ada County's road program was on hold. Current estimates are that $21 million of roadwork is on hold with $10 million affected annually for the next few years. AGC's board took action in Las Vegas to support Missouri's request for legal support.

For more info: Loren Sweatt at 202-383-2760 or http://www.agc.org/news_&_bulletins/News_&_Views/sweattl@agc.org

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CHAPTER CORNER

Construction Takes to the Airwaves

In addition to the usual mix of news, traffic and weather information, radio listeners in Southern California can also learn about hiring a licensed contractor, construction defects and California's Mechanic's Lien Law, among other building-related topics, when they tune in to KIEV 870 AM every Saturday morning -at 11 a.m.

That's when "Construction Affairs" airs to the station's potential listening audience of approximately 16 million people stretching from Santa Barbara to San Diego and east to Palm Springs, providing interviews, advice and answers to provocative issues regarding the construction industry. The show recently celebrated its 100th show earlier this month.

Produced by the Borunda Communications Group in Huntington Beach, the half-hour live program, hosted by veteran broadcaster Steve Knight, was launched in 1998 under the auspices of the California Contractors State License Board (CSLB) and the Department of Consumer Affairs and Licenses. The AGC of California is among the show's major sponsors, and the association has been well represented among the governmental and industry experts invited as special guest speakers on the program.

In recent programs, President Ralph Larison, Connolly-Pacific, Long Beach, has discussed the state of the industry and John Hakel, Executive Director, spoke about AGC, the benefits that the association brings to the industry and recent efforts to promote the construction business within the public school system. Alan Landes of Herzog Contracting Company discussed transportation issues and Build Up!. Several AGC of California members are slated to take part in the program thru 1999 and into the year 2000. "This valuable program with its well-blended format is a labor of love for all of us concerned," said Hakel.

One of the principals in this successful show is Howard E. Larnard who is part of the Liaison Committee of the California Building Officials to the California State License Board. Additionally, Larnard holds life credentials to teach in the California Community College system.

The "Construction Affairs" show also has legal advisors. Several AGC of California legal advisory members have offered their time and talent to the program. Attorneys offer advice, tips and insights on arbitration and the law as well as other subjects. Listeners can ask questions during the call-in section of the program and receive vital information.

"Construction Affairs" welcomes inquiries, advertising requests and show sponsorship. For more info: contact John Hakel, Executive Director, AGC of California, 323-263-1500.

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PRODUCTS AND SERVICES

Spotlight on the Latest AGC Contract: AGC 630

Standard Form of Agreement Between Contractor and Testing Laboratory is the 18th new or revised AGC document released this year. AGC 630 is the final product of a collaborative effort between AGC and the American Council of Independent Laboratories (ACIL). This document was crafted to meet the needs of contractors in retaining laboratories to perform materials testing and inspection services.

The joint task force included five ACIL members and eight AGC members, including W.O. Jones, III of Kjellstrom & Lee, Richmond, Va., serving as Chair. The joint task force is representative of AGC's efforts to partner with other organizations in shaping business solutions for the construction industry. "AGC seeks opportunities to work with national organizations, such as ACIL, to provide contract documents that enhance and benefit the construction environment," stated Jones.

Joseph O'Neil, Executive Director of ACIL, added, "ACIL is pleased to co-sponsor this contract with AGC. We believe it will expedite the acquisition of construction testing services and lead to a more harmonious relationship between the contractor and the testing laboratory."

Another member of the joint task force, Mark B. Weiland, General Counsel of Professional Service Industries, characterized a further benefit of AGC 630 by stating, "[w]ith this contract, testing services can be handled without the need for extensive modification of other subcontract agreements or negotiation of new terms and conditions for each project."

Given the number of contractors who enter into agreements with testing laboratories, AGC 630 is a much-needed standard form document that will establish a clear and convenient baseline for contractor and testing laboratory responsibilities.

For more info: contact Publications Department by phone at 202-393-2040, by fax at 202-737-5011 or Web site, http://www.agc.org/marketplace/contract_documents.asp.

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Gartner Group

Expert Advice on Computer Procurement And Applications Available Exclusively to AGC Members

In order to assist AGC members with selecting, purchasing, implementing and maintaining computer hardware and software applications for their companies, the association has retained the services of the GartnerGroup. GartnerGroup is the world's leading independent source of advice, research and analysis for business professionals making information technology/computer application decisions.

AGC members can now access GartnerGroup's research and consult with Gartner analysts to assess their needs, evaluate vendor qualifications and claims and address their business information technology requirements in a timely, cost-effective fashion. The information and services available cover all aspects and types of computer hardware and software procurement, implementation, management and applications. This service is available to AGC members for only $439 a year -- a savings of over $14,000. For details on the services available and how to subscribe, access the members' only section of AGC's Web site at http://www.agc.org/.

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AGC National Newsletter, News & Views
ISSN 0161-133X * Published bi-weekly * Cost: $100/year
Associated General Contractors of America
Periodicals Postage Paid at Washington, DC © AGC 1997
CONTENTS


AGC NEWS

AGC Tax Committee Lobbies Congress on the Death Tax

Shared Responsibility Is Key Theme of Underground Damage Prevention Study

LEGISLATIVE NEWS

Transportation Funding Bill -- Passed in House

Missouri and Idaho Challenge Third-Party Lawsuits

CHAPTER CORNER

Construction Takes to the Airwaves

PRODUCTS AND SERVICES

Spotlight on the Latest AGC Contract: AGC 630

Expert Advice on Computer Procurement And Applications Available Exclusively to AGC Members


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