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.
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.
AGC 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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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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