Failure to agree on how to handle bigger tax provisions continues to block consideration  The Senate today failed by a vote of 58 to 42 to pass a procedural vote (60 votes needed for passage) on a new substitute amendment to the Small Business Jobs Act.  The Senate Democrat and Republican leadership were once again unable to reach an agreement on amendments to be offered by Republicans to the bill prior to the vote. The Bill would make $30 billion in funds available to community banks to make loans to small businesses and provide $12 billion in tax cuts, including quicker write-offs for depreciation. The bill also includes relief from small businesses from Internal Revenue Code section 6707A penalties.The measure had been stalled for weeks in the Senate over Republican amendments on issues including the estate tax, federal spending, border security, nuclear loan guarantees, and other expiring tax provisions.  Another pending amendment offered by Senator Mike Johanns (R-Neb.) would repeal the expanded Form 1099 reporting requirements enacted in the health care reform bill that requires every business and corporation to file a Form 1099 for every purchase of goods or services totaling $600 or more in a calendar year.Further action on the bill in the Senate may be delayed until after the Senate returns from its August recess in September.

The Water Resources Development Act of 2010 was introduced July 28, 2010 by Rep. James L. Oberstar (D-Minn.), Chairman of the Committee on Transportation and Infrastructure, and Rep. Eddie Bernice Johnson (D-Texas), Chairwoman of the Subcommittee on Water Resources and Environment. The legislation authorizes approximately $6 billion for critical navigation, flood damage reduction, and environmental restoration projects, as well as studies carried out by the Army Corps of Engineers.Among the projects included in the legislation are three concerning storm mitigation and ecosystem restoration, 31 for aquatic ecosystem restoration, 31 small flood damage reduction projects and 160 studies for potential future water projects, according to a news release.The package is much smaller than the WRDA 2007 legislation, which totaled $23 billion, however that bill was nearly eight years late. Another factor impacting the total authorized amount is the fact that the package does not include Republican project designations at this time. Other language in the bill would clarify the way expenditures are credited, increase transparency of reviews and improve mitigation of environmental impacts associated with Army Corps projects. AGC notes three provisions in the bill. The first, which causes some concern, would classify Operations and Maintenance work as "inherently governmental." This could put this type of work, which is normally done by contractors, in-house within the Corps. A second provision that will require further examination would increase opportunities for the Corps to facilitate watershed planning and carry out watershed and river basin assessments.Another provision, one that AGC strongly advocated for, would create a "firewall" to ensure all funds contributed to the Harbor Maintenance Trust Fund will be spent out on an annual basis. This will ensure as much as a 50 percent increase in funding for projects financed by the Fund.AGC was a key leader in getting the WRDA 2007 bill passed and we are working to provide a full analysis of the complete bill as soon as possible.To view a copy of the bill, click here. To view a summary of the bill click here. To view a copy of Chairman Oberstar's statement of introduction, click here. To view AGC's policy on WRDA 2010 passage, click here.

AGC has compiled a new resource for all things Buy American on its website. The new page describes the differences between "Buy American," "Buy America," and the Recovery Act Buy American provisions.The page also catalogues AGC's standing policy of opposition to expansion of the Buy American Act, a description of the Recovery Act rules and regulations governing the Recovery Act Buy American provisions (both for direct-federal and federal-aid work), AGC's analysis of several key provisions of the rules and regulations, and a catalogue of waivers guidance from agencies that have construction portfolios. This valuable new comprehensive resource is located at www.agc.org/buyamerican and will be updated on an ongoing basis as new information is released from the agencies.

AGC sponsored and participated in a briefing on Capitol Hill in an effort to educate staffers on the Clean Water Trust Fund (H.R. 3202). A Clean Water Trust Fund will protect vital sources of drinking water and fragile watersheds, including the nation's great water bodies, enhancing the health and security of citizens nationwide. EPA's most recent needs surveys estimates nationwide needs for drinking water and wastewater improvements at over $600 billion. With a rate of 28,500 jobs per billion spent, projects across the country would spur economic growth, create jobs and improve the environment and public health.In a packed room of over 100 staffers, Kasim Reed, mayor of Atlanta, explained the challenges faced by big cities that need to service large numbers of people with outdated and aging water systems. The audience also heard about the challenges faced by small towns forced to shoulder the debt burden from the mayor of Buhl, Idaho, Tom McCauley. They heard about the state of the construction and equipment industries from AGC and United Rentals and the environmental benefits from the National Wildlife Foundation. Finally, staffers heard an impassioned appeal for water and wastewater infrastructure from the D.C. Water and Sewer Authority.  AGC has been on the forefront of advocating for a Clean Water Trust Fund that would be deficit-neutral, financed by user fees, and help counteract the steady decline in federal investment in water and wastewater infrastructure. AGC will continue to garner support in the House for this important legislation.

On Wednesday, the House Education and Labor Committee passed the Miner Safety and Health Act.  This bill seeks to make significant changes to both MSHA and OSHA. The vote was 30-17, with all Democrats voting in favor and all Republicans opposed.  AGC is a strong advocate of worker safety but is concerned about the direction of the bill. The legislation turns the clock back on well over 10 years of progress in improved workplace safety, which has lead to a nearly 50 percent reduction in the construction fatality rate, by creating a more adversarial relationship between employers and OSHA.The bill does nothing to help facilitate worker safety on a site or help businesses, especially small businesses, improve their worksite safety. Instead, the House proposal focuses solely on introducing vague new standards for criminal liability and imposes complicated and costly procedures for adjudicating whistleblower cases. This legislation is ultimately a punitive measure, and does not promote injury prevention. This approach fails to take into account the construction industry's successful accident prevention strategies that have resulted in reducing workplace injury, illness and fatality rates through the successful efforts of business and government working together. Instead it will hamper continued construction industry safety improvements through increased litigation and discouragement of cooperative relationships.Supporters of the bill are pushing to have a vote on the House floor next week, though the final schedule has not been released. The Senate is taking a slower approach on the bill and it is uncertain as to when a hearing might be scheduled.Please click hereto send a letter to your Representative and Senators about your concerns with this legislation.For more information, contact Kelly Knott at (202) 547-4685 or knottk@agc.org.

This week, the House Education and Labor Committee held a hearing on a new piece of legislation, the Miner Safety and Health Act.  This bill seeks to make changes to both MSHA and OSHA.  AGC is a strong advocate of worker safety but is concerned about the direction of the bill. The legislation turns the clock back on well over 10 years of progress in improved workplace safety, which has lead to a nearly 50 percent reduction in the construction fatality rate, by creating a more adversarial relationship between employers and OSHA.  The bill does nothing to help facilitate worker safety on a site or help businesses, especially small businesses, improve their worksite safety. Instead, the House proposal focuses solely on introducing vague new standards for criminal liability and imposes complicated and costly procedures for adjudicating whistleblower cases. This legislation is ultimately a punitive measure, and does not promote injury prevention. This approach fails to take into account the construction industry's successful accident prevention strategies that have resulted in reducing workplace injury, illness and fatality rates through the successful efforts of business and government working together. Instead it will hamper continued construction industry safety improvements through increased litigation and discouragement of cooperative relationships.The Committee is expected to vote on the measure next Wednesday and supporters want to see it on the House floor for a vote before the end of the month.   The Senate is taking a slower approach on the bill and it is uncertain as to when a hearing might be scheduled. Please click here to send a letter to your Representative and Senators about your concerns with this legislation.

The House Transportation & Infrastructure Subcommittee on Water and the Environment held a hearing today focusing on the need for clean water infrastructure investment and the positive impacts water infrastructure has on the environment, public health and  employment. During the hearing Chairwoman Eddie Bernice Johnson (D-Texas) and Vice Chairman John Boozman (R-Ark.) both cited statistics from the AGC co-chaired WIN Coalition on the overwhelming water infrastructure needs and AGC job creation data on jobs created per billion invested in infrastructure.Several witnesses testifying before the Committee are affiliated with members of the WIN Coalition.Witness testimony and video of the hearing can be viewed by clicking here http://transportation.house.gov/hearings/hearingDetail.aspx?NewsID=1230.

AGC participated in a town hall-style meeting with U.S. Department of Transportation's top leaders who addressed the next long-term transportation bill.  This meeting was the final event in the Department's series of "listening tours" leading up to its release of the surface transportation principles. The senior DOT officials provided very few specifics about their current thoughts regarding various aspects of a surface transportation bill and provided no answer when asked when they will release their principles for reauthorization.  DOT officials did however pledge their support for a long-term funding authorization and expressed the need to expedite the process of approving and finishing construction projects.With the administration not taking the lead on reauthorization and the House and Senate yet to move on their individual bills, the chances of seeing a surface transportation bill before the elections in November is highly unlikely.  AGC will continue to urge both House and Senate leaders to take action and remind them of the importance of infrastructure investment and its ability to create jobs.

 AGC of America this week signed a letter to Congress with over 312 companies and 80 employer organizations to express concern about misinformation circulating regarding multiemployer defined benefit plan relief proposals before Congress.  Joining AGC of America in signing the letter are 11 AGC Chapters and 45 AGC member firms. Recent press stories have referred to H.R. 3936, the Preserve Benefits and Jobs Act, and S. 3157, the Create Jobs and Save Benefit Act, as a "union bailout" and to multiemployer plans as "union plans."  The letter states that contributions to multiemployer plans are funded entirely by employers and not unions.The majority of defined benefit plans have been negatively impacted by the recent financial crisis, and the median investment loss by multiemployer plans has exceeded 20 percent.  The losses occurred in the first year of new aggressive funding rules required by the Pension Protection Act, giving rise to potential additional contribution increases, deep benefit cuts, or both.  The financial crisis also exacerbated funding problems that certain multiemployer plans were already facing prior to the market downturn.  For details on the House proposal, clickhere.Asreported on July 1, President Obama signed into law the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, a stand-alone measure to prevent a scheduled cut in Medicare reimbursements to physicians.  While the relief now enacted into law is not the preferred language advocated by AGC and the multiemployer pension community, there may be an opportunity to enact "technical corrections" or otherwise provide Congressional guidance to the Treasury who will now interpret the law to ensure the intent of the preferred language is followed. AGC and the multiemployer coalition is continuing to work on additional longer-term relief for more troubled multiemployer plans, including the "partitioning" proposal included in H.R. 3936 and S. 3157.  In May, the Senate Health, Employment, Labor, and Pensions Committee last Thursday held hearing on multiemployer pension plans, including S. 3157.  The hearing was a first step towards Congressional action on additional multiemployer plan relief called for in H. R. 3936 and S. 3157 that would facilitate mergers and alliances of funds and allow the Pension Benefit Guaranty Corporation (PBGC) to provide assistance to certain plans (e.g., Central States) through a process called "partitioning" to lower long-term costs.  The bill would also update PBGC benefit guarantees.

A stalemate over a small business jobs bill (H.R. 5297) continued this week in the Senate.  The Senate had adjourned for the July 4th recess after beginning debate on the measure, which includes a package of tax cuts and provisions to increase access to capital for community banks and small businesses.Senate Democrats have not been able to reach agreement within their own caucus and with Republicans on amendments for floor consideration.  One issue that is causing disagreement is a proposal offered by Senators Blanche Lincoln (D-Ark.) and Jon Kyl (R-Ariz.) that would make permanent changes to the now-expired estate tax.  The proposal would set the top rate at 35 percent with a $5 million exemption level for individuals ($10 million for couples) phased in over 10 years and indexed for inflation.  It also would provide a stepped up basis for inherited assets.  The Senators' plan would allow the estates of taxpayers who die in 2010 to choose between the current rate of zero with a modified carryover basis or their proposal establishing a top rate of 35 percent. There is also pressure for the Senate to consider extensions of the expiring 2001 and 2003 tax cuts on which Senators are wary to vote prior to the November elections, as well as on other pieces of stalled legislation, including the annual tax extenders package.AGC supports a provision in the small business jobs bill that would extend enhanced section 179 expensing and bonus depreciation through 2010.  AGC is working with Senator Landrieu on an amendment that would allow for the modification of the bonus depreciation extension to allow contractors engaged in long-term contracts that use the percentage-of-completion (PCM) method of accounting and purchase 7-year depreciable property to take bonus depreciation. AGC submitted a statement for the record of a House Small Business Committee hearing Wednesday on bonus depreciation in support of the one-year extension and the modification under consideration in the Senate. AGC has also advocated in support of another provision in the bill that would provide relief from section 6707A penalties for taxpayers who failed to timely and properly disclose a transaction the Internal Revenue Service (IRS) characterizes as a "listed transaction."