Capital Letter, March 2000

Legislative & Regulatory News for the Printing Industry from Washington, D.C., and around the Nation

  
House-Senate managed health care conference scheduled . . . The much-dreaded managed health care conference began deliberations mid-February.  A bright spot so far has been Senate Majority Whip Don Nickles' (R-OK) leadership.   Senator Nickles has been a strong supporter of the small business position on managed care.  Most of the conferees oppose the most contentious provision contained in the House bill, which grants patients the right to sue in state courts.  As we go to print, we are hopeful that our supporters will remain firm in their stance against the patient's-right-to-sue provision.

A possible compromise to the right-to-sue provision could include a cap on pain-and-suffering damages of $500,000 or twice the amount of economic damages, whichever is less.  Another provision requiring compromise includes scope of coverage–-whether the bill should cover the approximately 161 million privately insured people or only the 48 million people in plans exempt from state regulation.  Many Democrats oppose this approach, so it may not be a viable option.  PIA will continue to work with other associations and Members of Congress to express our opposition to the right-to-sue provision.

  
Ergonomics comments and hearings . . . The Occupational Safety and Health Administration has relented and extended the comment period on the ergonomics standard proposal from February 1, 2000 to March 1, 2000.  Hearings on the proposal have been rescheduled to begin on March 13. PIA members will be present to testify at hearings in Washington, D.C., and Portland, Oregon.  The rescheduled date for the Portland hearing has not yet been announced.

  
Deadline extended on UI comments also . . . The comment period for the Birth and Adoption Unemployment Compensation Proposal (better known as the FMLA-UI standard or "baby UI") was extended from January 17 to February 2.  PIA's official comments were submitted on January 31.  In our letter to the Unemployment Insurance Service division of the Department of Labor, we reiterated our opposition to expanding the unemployment insurance (UI) program to allow funds to be used to pay workers for family leave for the birth or adoption of a child and asked for the proposal to be withdrawn from consideration.

  
Estate tax reduction/repeal . . . There is some momentum in Congress for possible action on estate tax reduction. The House has already stated its plans to move separate tax bills, starting with a marriage penalty tax bill.  Then, the House is slated to take up separate bills dealing with community renewal and to expand education savings accounts. PIA continues to push for the repeal of the death tax through support of HR8, a bill sponsored by Rep. Jennifer Dunn (R-WA) and 231 co-sponsors.  If repeal is not an option, we would support a reduction in rates.  Congress may decide to take up legislation dealing with the death tax this year.

  
Computer depreciation study . . . The congressionally mandated IRS study on current tax code definitions is due at the end of March.  Chairman Bill Archer (R-7-TX) of the House Ways and Means Committee requested that this study be done due to requests from industries that, like printing, are affected by the antiquated depreciation schedules. Although studies of this kind are notoriously late, it should be in play by April for the congressional tax hearings.  PIA submitted extensive information to the Department of Treasury in order to make our case for an updated depreciation schedule for computers by explaining the advancement of computers used in the printing industry today and the how printers are economically affected by the five-year depreciation schedule.

Reps. Mac Collins (R-GA) and Ben Cardin (D-MD), both members of the House Ways and Means Committee, have introduced HR1560, the Computer Equipment Common Sense Depreciation Act, which would change the depreciation schedule for computer equipment from five years to two.  PIA continues to support passage of this bill and we look forward to the release of the IRS study.  We hope it will contribute to our efforts to change the depreciation schedule for computer equipment.