Construction Legislative Issues

Immigration Reform

The Democratic victory in the House is expected to result in real immigration reform beyond just building a wall.  The Democratic leadership is more open to establishing a guestworker program and finding a constructive way in dealing with the undocumented. AGC will be actively involved in working to form a legislative vehicle that keeps the construction industry’s needs in mind.  AGC will closely monitor issues such as how employers should use wage determinations to figure out the pay of a guestworker.
 
In the Senate, bipartisanship that created this bill is expected continue into 2007 on the immigration issue.  AGC will closely watch certain provisions that were in the 2006 bill that were not in agreement with its goals and will work to educate Senators and their staff on the negative impacts those provisions could have on the construction industry.



Tax & Fiscal Affairs
 
The shifting of members and parties will have little effect on the overall goals of AGC and the Finance and Ways and Means Committee over the next two years.  Fundamental tax reform continues to be a top priority because of the yearly specter of the Alternative Minimum Tax.  This tax, which was intended only for the wealthy, has steadily crept into the lower tax brackets each year.  It may become the default tax code if Congress doesn’t act to repeal it.  The tax is flatter than the current tax code and will be incredibly expensive to repeal at once, which requires that any proposal be bipartisan, supported by Congress and the President.
 
The rest of AGC’s tax priorities are set to expire in 2011 including: the repeal of the death tax, the marginal rate reductions of three percent for both individuals and corporations, and the marriage penalty.  Also set for implementation in 2011 is the new three percent withholding on all government contracts.  This perfect storm of tax increases will also require bipartisanship to repeal, and will likely be addressed within fundamental tax reform.
 
Because none of the expiration dates are scheduled for the next two years, it is unlikely that Congress will satisfactorily address these issues until a new President is elected in 2008.  Nevertheless, AGC’s priority will be to continue to educate all members of Congress on the importance and looming deadline of the issues to the construction industry in order to ensure construction has a voice during the coming debate.



Environmental

It is unlikely that legislation reforming environmental laws will be successful with Democrats taking control over Congress.  As a result, efforts in recent years to reform laws such as the Clean Air Act, Clean Water Act, Endangered Species Act and the National Environmental Policy Act have likely ended.  It is more probable that Democrats may attempt to tighten environmental laws which may impact the construction industry.  Democrat-led panels may also increase oversight over federal environmental agencies, including the U.S. Environmental Protection Agency and U.S. Army Corps of Engineers.  

In the Senate, Democrats are expected to set an ambitious agenda, which may include efforts to move legislation to limit greenhouse gas emissions.  They may also take a strong interest in water-related legislation, particularly measures addressing California’s water needs, and measures to accelerate clean-up of brownfields and Superfund sites.  In the House, the Transportation and Infrastructure Committee has indicated that it will make the passage of WRDA a top priority.  The Committee may also push an effort to redefine federal jurisdiction over wetlands.

AGC and its members may have to play a more defensive role in reaction to the Democratic agenda on environmental policy, while playing an offense with respect to increased funding for environmental initiatives.



Health Care

While the takeover of the House by the Democrats does not mean a quick return to the push for a national government run health insurance program, AGC believes that there will be interest in exploring the idea of employer mandates once again.  Ideas such as the AGC supported Association Health Plans (AHP) legislation are not likely to gain much traction. The Senate is expected to focus on drug importation, prescription drug prices and expansion of federal control in health care.  As with the House, employer mandates will be on the table.



Labor & Workforce

The Education and the Workforce Committee is expected to have a much more activist approach to labor and safety issues.  For example, while raising the minimum wage is likely to be first on the agenda for the Democrats, “card check” legislation will not be far behind.  This legislation will seek to forgo secret ballot union elections and replace them with card check agreements.  In addition, AGC expects to see more legislation increasing the reach of the Occupational Safety and Health Administration (OSHA) on job sites including criminal penalties for individuals whose company is found to be in violation of OSHA laws. In addition, attempts to expand the Family and Medical leave Act and legislation to ban genetic discrimination will be made.



Clean Water Trust Fund
 
This AGC-backed bill to establish a trust fund (nearly $38 billion over five years) to finance clean water projects received hearings in the 109th Congress and gained bipartisan support and cosponsors. AGC will aim in the 110th Congress to get this bill reintroduced , highlighting the environmental and job-creation advantages of this legislation.



Federal Construction Funding

Federal construction funding may be more generous under a Democratic-controlled Congress, particularly for environmental-related construction accounts, such as the Clean Water State Revolving Loan Fund (SRF) program.  While support for increased funding for the Clean Water SRF program has been bipartisan, fiscal conservatives have been successful in limiting appropriations for the program in recent years.  Other programs with environmental benefits may also see increases, such as those which fund environmental restoration and clean-up activities.

Further, there is no indication that a Democratic-controlled Congress will propose funding cuts for other important federal construction accounts, including the federal-aid highway program, public transportation, aviation, and the Civil Works mission of the Army Corps of Engineers.  However, it is more uncertain what changes will be made to defense construction accounts should the Democratic Congress shift direction in Iraq and the War on Terrorism.



Waterways Infrastructure Funding

If Congress does not address WRDA during the 2006 lame duck session, it is hoped that the new Democratic majorities in the House and Senate would move to quickly approve WRDA early next year. AGC will continue to monitor, comment and engage with all appropriate players in the Congress and at the U.S. Corps of Engineers (USACE) on both WRDA Reauthorization and funding for the USACE (Civil Works) program on behalf of its members.



Pipeline Safety Act Reauthorization

In the new Democratic Congress, AGC will build on success from the 109th Congress that included securing provisions eliminating criminal penalties, establishing equitable enforcement of damage prevention laws for all stakeholders in the one-call process, and funding for critical technology and awareness programs in three versions of reauthorization legislation. It is questionable whether Congress can reconcile these different versions and vote for passage in a lame duck session. Pipeline Safety Reauthorization will likely need to wait until next Congress to achieve passage or be reexamined.  Regardless of when Congress acts, AGC has done a lot of critical groundwork on both sides of the aisle in preparation.



Small Business Agenda

Despite one-party control of the Congress in recent years, party leaders have not been able to successfully pass legislation reauthorizing the Small Business Act or enact any substantial reforms to the small business program. AGC worked to see legislation introduced during the 109th Congress that calls for reform of the HUB Zone program, addresses how subcontracting goals are calculated and allows construction contracts to be reviewed for bundling. It is also expected that the Democrats will move to "set aside" more federal contracting opportunities for small business and work to revamp the administration of the 7a small business loan program.



Government Reform Agenda
 
Democrats are expected to reform federal acquisition practices by promoting competition, limiting the use of abuse-prone contracts, increasing contract oversight and disclosure of overcharges, and preventing contractor conflicts of interest. AGC will continue to advocate for reform of the federal procurement process, asking that the system recognize construction’s unique melding of industry sectors while ensuring the government uses the most cost-effective method of procurement.


Source:  AGC- The Construction Legislative Week in Review