NSSGA Washington Watch
January 25, 2005 Volume 5, Issue 2 

An Industry Update on the White House, Congress and Federal Agencies

Pamela J. Whitted, Vice President, Government Affairs
Jim Riley, Director, Government Affairs
John Boling, Director, Government Affairs
Joe Colaneri, Director, Government Affairs
Patricia Maeder, Division Coordinator

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www.nssga.org 
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 In This Edition...

PRESIDENT BUSH'S SECOND INAUGURAL A SUCCESS

Despite security concerns, President George W. Bush's inaugural week was a success. Official events commenced on Tuesday, Jan. 18, starting with several balls, and the festivities lasted through Friday. The 55th Presidential inauguration was held on Thursday, Jan. 20, with President Bush sworn in by U.S. Supreme Court Chief Justice William H. Rehnquist just before noon, as prescribed by the Constitution. The President's inaugural address contained lofty goals of opposing tyranny where it exists in the world and promoting freedom for all people. Domestically, the president spoke of creating an America that represents all citizens.

Congress returns to work this week, although the week's legislative schedule is light. Jan. 24 was the first day members of Congress were able to introduce legislation. President Bush's State of the Union address, scheduled for Wednesday, Feb. 2, is expected to focus more specifically on his domestic agenda, topped by Social Security reform. The federal budget will be released on Monday, Feb. 7. NSSGA Government Affairs will keep you advised of developments.

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TRANSPORTATION BILL BASELINE NUMBERS COULD FALL

On Tuesday, Jan. 25, the Congressional Budget Office (CBO) will release the Budget and Economic Outlook and, according to reports, Highway Trust Fund (HTF) revenue is projected to fall. How much the revenues will fall is uncertain at this time. The HTF sets the baseline for reauthorization. Money authorized above the baseline has to come from somewhere else something the Bush administration has opposed in the past.

The CBO is updating the number from its last report to include new funds directed to the HTF in recent tax bills. The ethanol and antifraud provisions included in the Export Tax bill approved last year are expected to bring in additional revenue, but those funds were already figured into the House and Senate version of the transportation bill. The tax bill assumed a certain level of revenue and the CBO report would be a second review of those assumptions. Sometimes budgetary projections can be slightly off.

House and Senate staff will use the CBO numbers as they work on reintroducing their respective TEA 21 reauthorization bills, while the Department of Transportation will use the numbers of the White House's Office of Management and Budget (OMB) and the Treasury Department. Due to the different methods of calculating trust fund projections, the numbers rarely match.

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CONGRESS STILL TALKING OF ACTING QUICKLY ON HIGHWAY BILL

House GOP leaders reportedly are still interested in passing a highway reauthorization bill, energy bill and class action reform bill by the end of March. The budget figures will play heavily into the timing of consideration of these measures. If the projected receipts into the Highway Trust Fund are lower, early action on reauthorization could be even more problematic.

Meanwhile, Senate Minority Leader Harry Reid (D-Nev.), speaking to the nation's mayors, called for early action on TEA 21 reauthorization legislation, saying, "It would be irresponsible not to work in a bipartisan manner to pass a highway bill early this year." Reid talked of "investing" in our nation's infrastructure, which he said was different than spending. Further, he said, "Wise investments are always prudent."

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SPECTER URGES EARLY ACTION ON ASBESTOS

Newly elected Senate Judiciary Committee Chairman Arlen Specter (R-Pa.) has indicated that he hopes to introduce a comprehensive asbestos litigation reform bill this week and anticipates a committee markup, possibly by early February. Specter commented earlier that this schedule may be optimistic, but he pledged to press forward aggressively. At issue in the debate are the same questions that ultimately complicated and compromised the effort in the last Congress, namely the size of the asbestos litigation trust fund, sunset provisions and other matters. If the Specter bill stalls, Sen. Patty Murray (D-Wash.) is said to be ready to reintroduce her legislation banning all uses of asbestos as a standalone measure.

NSSGA's issue with the asbestos litigation bill has been mostly definitional -- that our nonasbestiform operations not get caught up in the larger asbestos debates and that the definitions section of the bill specifically memorialize our exemptions from the litigation provisions. In the last Congress, we worked successfully to secure these critical exemptions. Preliminary meetings this year with key Senate Judiciary Committee staff suggest that our nonasbestiform operations will be exempt again. NSSGA also will continue to work with Sen. Murray's staff to ensure the accurate definition of regulated minerals is included in any asbestos-related legislation that she introduces. Still, the accelerated timetable laid out by Chairman Specter puts an additional burden on NSSGA to remain vigilant not only to the definitions sections, but also to any other provisions that could directly or indirectly impact member operations. We will remain engaged in the upcoming debates and will continue to strongly defend our nonasbestiform operations.

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NSSGA SUBMITS COMMENTS TO FEC ON PROPOSED PAC FUNDRAISING REGULATION

NSSGA submitted comments to the Federal Election Commission on Jan. 21 in response to a Notice of Proposed Rulemaking that would permit individual employees of member corporations to make contributions to their trade association's political action committee using payroll deduction. Additionally, NSSGA requested an opportunity to testify before the FEC in favor of the proposed rule.

FEC regulations currently prohibit member corporations of trade associations from using a payroll deduction plan to facilitate contributions from their eligible employees to the association's PAC. However, nothing in the Federal Election Campaign Act requires such an exclusion, thus prompting the proposed rule change. Payroll deduction is already a permissible method frequently used by corporations and labor unions to receive PAC contributions.

NSSGA comments noted that amending the FEC regulations to permit payroll deduction "will provide individuals with more choices-all of which are voluntary as a matter of law" and remove "an unnecessary blockade that lacks any sound policy rationale and unfairly singles out individuals who work for companies that belong to trade associations."

The FEC is expected to take up the proposed rule change within the next few months. The Commission's general counsel already has submitted an analysis of the issue to the commissioners along with a recommendation in favor of adopting it. NSSGA will keep you advised of progress.

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TCC FLY IN - SAVE THE DATE!

Mark your calendars for the next Transportation Construction Coalition Fly-In on April 26-27 at the Hotel Washington in Washington, D.C. Avoid the rush and make your hotel reservations now, as rooms will be going fast! Call (202) 638-5900 and tell them that you are with the Transportation Construction Coalition conference to get our special group rate.

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National Stone, Sand and Gravel Association
1605 King Street
Alexandria, VA 22314
800-342-1415 • 703-525-8788 • fax: 703-525-7782