AGC’s Chief Executive Officer Steve Sandherr will conduct a conference call on November 6 to discuss the results, impact and transition plan for the 111th Congress.  The one hour call will assess the outcome of the election in the context of construction and report on AGC’s ongoing and new legislative priorities given a new political and legislative environment. Agenda:Election results – AGC Allies – Electoral SurprisesReview of AGC Election ActivitiesThreats & Opportunities in New EnvironmentMember Involvement in a New EnvironmentOpen Discussion / Q & AFor more information on the conference call or to request the call-in number please contact Jim Young at 202-547-0133 or youngj@agc.org.

AGC member Brian Burgett, President and CEO of Kokosing Construction Co., Inc., Fredericktown, Ohio, testified on behalf of AGC Wednesday before the House Transportation and Infrastructure Committee to urge Congress to enact an economic recovery package which would include infrastructure investment to create jobs.  Mr. Burgett described for the Committee market conditions facing his company and the commercial construction company as a whole, including rising unemployment, credit availability issues, and volatile construction materials prices. AGC member Brian Burgett, President and CEO of Kokosing Construction Co., Inc., Fredericktown, Ohio, testifying on behalf of AGC Wednesday before the House Transportation and Infrastructure Committee.

The Department of Homeland Security (DHS) on October 23 released a supplemental final rule on "no-match letters," which was published in the October 28 issue of the Federal Register.  The supplemental final rule reaffirms the content of a final rule issued in August 2007, provides additional supporting analysis for that final rule, and corrects a typographical error in the rule.  It makes no substantive changes.The August 2007 rule was enjoined by a U.S. district court in litigation brought by the AFL-CIO and several business groups.  DHS issued the supplemental rule in response to concerns raised by the court and intends to ask the court to lift the injunction.  The plaintiffs are expected to fight that effort and seek a permanent injunction.  If the injunction is lifted, the rule could take effect immediately following the court's decision.Immigration law prohibits employers from “knowingly” employing unauthorized aliens.  Regulations and case law issued prior to 2007 interpret the term “knowingly” as including “constructive knowledge” and provided examples of situations that may establish “constructive knowledge.”  The August 2007 rule adds additional examples, including an employer’s failure to “take reasonable steps” after receiving a no-match letter from the Social Security Administration (SSA) or DHS.  The rule sets forth a process that an employer may follow that will be deemed “reasonable steps” taken in response to receipt of a no-match letter and for the employer to receive a “safe harbor” from a finding of constructive knowledge based on receipt of a no-match letter. AGC raised concerns about certain shortcomings in the “safe harbor” process such as the failure to toll the time limits for exigent circumstances.  Those shortcomings remain in the rule.  AGC also raised concerns about the misleading content of a standard cover letter drafted by DHS for insertion in the no-match letters.  DHS indicates in the supplemental final rule that the cover letter will be revised.Despite shortcomings in the “safe harbor” process, the rule provides employers with some guidance as to how to respond to receipt of a no-match letter.  It also offers employers with some – albeit limited – protection from liability for employing an unauthorized alien.   For more information on the “safe harbor” process and guidance on how to protect your company, click here.  Guidance is also provided in a recording of a September 2007 AGC audio conference that can be purchased here.

This year has been one of the most interesting and unpredictable in American Presidential politics. The campaign for the White House began nearly a year ago and will be over on Tuesday. While the Presidential election is gripping the headlines, an equally important contest for the construction industry is the battle for Congress.  Democrats are expected to expand their majorities in both Houses of Congress and may cross the 60 vote threshold (filibuster-proof margin) in the Senate.An expanding Democratic majority has major implications for the business and construction industry. The Democratic leadership has already hinted at a tide of new labor, environmental and tax proposals that will be considered during the next Congress. AGC will continue to advocate on behalf of its members and will be busy amending and defeating detrimental legislation. Sen. Obama’s top labor policy is passage of “Card Check,” a bill that will deny employees the right to determine whether they want to be represented by a union in a secret ballot election, and require employers who become unionized to submit to binding arbitration to settle contract disputes. Defeat of this legislation will be top priority for AGC. AGC will also urge Congress to consider increased investment in infrastructure. Several major funding bills will expire next Congress, including SAFETEA-LU, the multi-year surface transportation funding bill. In addition, AGC will urge Congress to include infrastructure investment in a second economic stimulus bill after the Election. The future of this stimulus hinges on the outcome of the election and it is possible Congress could consider the legislation during a “lame duck” session. It is important that the construction industry votes on Election Day, as the outcome will directly affect the industry.  Due to expected record voter turnout and the time constraints of individuals working in the industry, AGC urges contractors to vote early. One-third of all voters will vote early, and because of this new trend AGC has created a Web site with polling locations, addresses, polling hours and other information.  Make sure your voice counts on Election Day.

Twenty-one of the 153 ballot measures that will appear this November are construction industry related. Many states are exploring large infrastructure projects, and 16 of the 21 ballot measures (representing 12 states) ask for public approval of $12,172,252,000 worth of bonds and tax increases to finance these projects. While transportation and water projects dominate the infrastructure-related ballot measures this election cycle, many other types of infrastructure are also being considered, including libraries, hospitals and schools. Several states are considering anti-business initiatives and some states will consider changing business taxes.AGC will monitor the results of the construction industry-specific ballot initiatives and will report the outcomes after the election.

AGC will provide a contractor's perspective on how additional infrastructure investment would help stimulate the economy through direct and indirect job creation at a hearing next Wednesday. AGC this week was invited to testify at the hearing, "Infrastructure Investment: The Road to Recovery," conducted by the House Transportation & Infrastructure Committee.As Congress continues to debate whether to enact an additional economic recovery package that may include a significant infrastructure investment component, AGC will contribute to the hearing through testimony from Brian Burgett, President and CEO, Kokosing Construction Company.  Burgett will focus his remarks on water resources investment, in addition to providing testimony on the state of the overall construction industry and on the critical need for supplemental federal infrastructure funding to stimulate the economy.   AGC continues to work with Congressional leaders towards enactment of an economic recovery package with infrastructure investment. Congress may reconvene following the election to consider a bill by the end of the year.

The House Transportation & Infrastructure Committee, chaired by Congressman James Oberstar (D-Minn.), issued a report October 18 condemning the Bush Administration for its failure to adequately invest in the nation’s water infrastructure.The report, "Stagnant Waters: The Legacy of the Bush Administration on the Clean Water Act," condemns the Bush Administration for neglecting to adequately invest in Clean Water Infrastructure, enforce environmental oversight and improve water quality.  While the report states that there have been significant improvements in our water quality and infrastructure over the last 36 years, it concludes with a call for increased investment in aging water infrastructure and strengthening of the enforcement of the Clean Water Act. For a complete copy of the report please click here.AGC has supported the creation of a long-term, sustainable, off-budget source of funding for clean water by creating a trust fund to finance construction and maintenance of this critical environmental infrastructure.  AGC has also supported and promoted “Liquid Assets: The Story of Our Water Infrastructure,” a new documentary produced by Penn State Public Broadcasting that highlights the current state of the nation’s essential water, wastewater and storm water infrastructure.  Learn more about Liquid Assets at www.agc.org/liquidassets.

On October 23, the Department of Homeland Security (DHS) issued the Supplemental Final Rule on "Safe Harbor Procedures for Employers Who Receive a No-Match Letter: Clarification; Final Regulatory Flexibility Analysis." The original rule was a concern to AGC and its members due to the lack of consideration for the impact on small businesses and the incorrect description of the changes by the Department of Homeland Security, potentially causing confusion in the enforcement of the rules. Despite numerous comments submitted by small employers at that time, the rule released today raises many of the same concerns. AGC will continue to review the new Supplemental Proposed Rule to determine its specific impact on employers in the construction industry.The original rule was issued and intended to be implemented in 2007; however, a legal challenge in the United States District Court for the Northern District of California delayed implementation. AGC supported the litigation against the rule because the rule and its proposed guidance document attempted to infer “constructive knowledge” that an employee was unauthorized to work in the U.S. simply through the receipt of a Social Security no-match letter. The court delayed implementation due to: a failure by DHS to properly notify employers of unauthorized workers; issues surrounding the interpretation of anti-discrimination law; and the impact on small businesses. Click here to see the supplemental proposed rule.

AGC recently attended a meeting with the Federal Acquisition Regulations (FAR) Council, where members of the Council reported that two proposed rules critical to contractors who perform federal work are under final review and could publish in the Federal Register in the next 45 days and no later than January 12, 2009.  The first rule would require contractors to verify the immigration status of their employees using the “E-Verify” system; the second rule would mandate additional ethics and compliance program requirements for Federal contractors.It is widely speculated in the acquisition community that the Council and the Office of Management and Budget (OMB) are under pressure to approve the rule sooner rather than later.  AGC submitted comments on both proposed rulemakings and will continue to closely monitor their progress in order to keep AGC members informed.

As reported Monday, House Speaker Nancy Pelosi (D-CA) convened a forum with economic experts to discuss an economic recovery plan for the nation.  She announced that she would be calling on the appropriate committee chairmen to conduct hearings on various portions of an economic recovery package in the upcoming weeks.