NSSGA Washington Watch
November 15, 2005 Volume 5, Issue 35 

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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 In This Edition...

TRANSPORTATION FUNDING BILL SET TO MOVE

The bill that will fund the recently passed highway authorization for FY 2006 saw significant movement over the past week. The only area of disagreement remaining with the Transportation, Treasury, Housing and Urban Development, and District of Columbia spending bill (H.R. 3058) is dispute over trade with Cuba. The House is expected to consider the conference report on Nov. 17, pending resolution of the Cuba dispute, with the Senate following shortly thereafter.

Dubbed T-THUD, the funding bill would provide $36.03 billion in guaranteed funding for the federal-aid highway program for 2006. This is the exact amount authorized by SAFETEA-LU. It was reported that an additional $20 million in general funds were allocated to the Appalachian highways program. Additionally, the conference agreement usually rescinds funds for certain programs that received money in the past and were either unable to use it, or had a remaining balance. NSSGA is following this spending bill closely and will provide a summary of the conference report once both chambers have approved it.

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VOTERS VOICE APPROVAL FOR TRANSPORTATION INITIATIVES

Voters across the country on Nov. 8 sent a very pro-transportation investment message to lawmakers that bodes well for the future. The following is a list of state referendums and the results:

Maine Question 2. Bonds for Transportation. $33.1 million. Approved 68 percent - 32 percent.

New York Proposal 2. Bonds for Transportation. $2.9 billion. Approved 55 percent - 45 percent.

Ohio Issue 1. Bonds for Infrastructure and R&D. $1.85 billion. Approved 54 percent - 46 percent.

Texas Proposition 1. Establishment of state fund to finance railway projects. Approved. (ed. note: this vote was viewed in support of the Trans - Texas Corridor)

Washington I-912. Repeal of the 9.5 cent per gallon gas tax enacted by legislature in 2005. Rejected 47 percent - 53 percent.

Voters decided the following propositions earlier this year:

Oklahoma (September 13) Question 723. Bridges and Highways. This initiative proposed to dedicate funds and sets minimum support levels for highway and bridges, and raises the gas tax by 5 cents per gallon for unleaded fuel and 8 cents per gallon for diesel fuel. Rejected 13 percent - 87 percent.

Colorado Two measures comprised the "Colorado Economic Recovery Plan" sponsored and placed on the ballot by Governor Bill Owens (R) and the General Assembly:

Referendum C. Temporarily lifts TABOR spending limits and allows state to keep an estimated $3.7 billion over the next 5 years that would otherwise be returned to taxpayers. Approved 52 percent - 48 percent Referendum D. Bonds for Roads. Authorizes State to borrow $2.1 billion for roads, fire and police pensions, and school maintenance. Rejected 49.3 percent - 50.7 percent.

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GOP HOUSE LEADERSHIP PULLS SPENDING CUTS BILL; WILL TRY AGAIN THIS WEEK

Unable to gain the necessary votes for passage of the $50 billion spending cuts bill, House Republican leaders pulled it last week. They plan to try again to move the bill this week. The postponement of floor action on Nov. 9 came after adjustments to the bill, including removal of provisions opening the Alaska National Wildlife Refuge (ANWR) for oil drilling and allowing states to "opt out" of the current moratoria on offshore oil and gas exploration and development. The removal of ANWR and the offshore provisions was intended to gain the votes of House GOP moderates, but in the process resulted in the loss of necessary Western Republican votes. Since the Democratic caucus is united in its opposition to the bill, passage can only come from a united Republican majority. The postponement was considered a blow to a GOP leadership that has prided itself on party discipline and control.

With the end of the current continuing resolution bill rapidly approaching on Dec. 18, the House is expected to focus on appropriations this week. The budget reconciliation bill is not likely to see action before Nov. 16 at the earliest. Still included in the House bill is the section that would support traditional mining schools and the training of mining and petroleum engineers, which NSSGA supports. The Senate has passed its spending cuts bill including ANWR provisions. Whether Congress will be able to reconcile a spending cuts bill before adjourning for the year is unclear.

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NEPA TASK FORCE TO HOLD FINAL HEARING

Last week, the Task Force on Updating the National Environmental Policy Act (NEPA) held a hearing titled: NEPA Litigation: The Causes, Effects and Solutions. This week, the Task Force will meet for the final time in a session titled: NEPA: Lessons Learned and Next Steps. The Task Force is expected to report back to the Committee with recommendations on how to improve the NEPA process by the end of the month.

At the previous hearing, Task Force Chairwoman Rep. Cathy McMorris (R-Wash.) and members heard testimony on two specific cases; one related to hurricane barriers in Louisiana and the other pertaining to grazing on public lands in the West. McMorris and the Task Force studied a 1977 lawsuit from Save Our Wetlands, an environmental organization whose legal action derailed an Army Corps of Engineers project that some believed could have prevented the flooding following Hurricane Katrina. The Task Force also studied NEPA lawsuits environmental groups file in order to displace ranchers and cattle from grazing allotments.

Former Sen. J. Bennett Johnston (D-La.), one of the chief sponsors of the hurricane barrier project, testified at the hearing and noted, "Despite the achievements of the legislation, litigants and dissenting bureaucrats have exploited the bill to kill projects by vexatious, expensive delay, and unnecessary administrative requirements. These unintended consequences within the legislation are bad for our nation and should be remedied."

NSSGA urges you to submit comments on how to improve the NEPA process to the Task Force as soon as possible. Considering a final report will be issued on Nov. 30, staff needs time to consider your comments. Simply email your comments to: nepataskforce@mail.house.gov. As an organization that works in the best interest of its members, feel free to work from NSSGA's comments.

The NEPA Task Force is a bipartisan group of House Resource Committee members selected by Chairman Richard Pombo (R-Calif) and Ranking Member Nick Rahall (D-W.Va.) The Task Force is charged with reviewing and making recommendations on improving NEPA. The goal is to ensure that the original intent of NEPA - that federal decisions are made in an appropriate, environmentally sound manner, rather than being focused by litigation - will become the way the statute will be implemented going forward. For more information on the NEPA Task Force, please visit: http://resourcescommittee.house.gov/nepataskforce.htm.

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SENATOR INTRODUCES COMPROMISE HEALTH INSURANCE PLAN

Senate Health, Education, Labor and Pensions Committee Chairman Michael B. Enzi (R-Wyo.) has introduced the "Health Insurance Marketplace Modernization and Affordability Act of 2005" (S. 1955) to help workers in small businesses get health insurance via entities similar to association health plans (AHPs), but with state oversight. This legislation joins the "Small Business Health Fairness Act" (S. 406), introduced by Sens. Jim Talent (R-Mo.) and Olympia Snowe (R-Maine) that would establish AHPs. The House approved its version of the "Small Business Health Fairness Act of 2005" (H.R. 525) in July. NSSGA supports the AHP legislation and is reviewing the new alternative.

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EMINENT DOMAIN LEGISLATION PASSES HOUSE; ACTION MOVES TO THE SENATE

The House of Representatives recently passed the "Private Property Rights Protection Act of 2005" (H.R. 4128) by a margin of 376 to 38. This legislation would withhold federal economic assistance from localities and states if they use eminent domain to force the transfer of property between private entities for the purpose of economic development. This is in response to the Supreme Court ruling last June in Kelo v. New London that found a government's exercise of eminent domain power to take private property for economic development purposes can be a "public use" under the Takings Clause of the Fifth Amendment to the Constitution.

The legislation now moves to the Senate where Sen. John Cornyn (R-Texas) has already offered his own bill, the "Protection of Homes, Small Businesses, and Private Property Act of 2005" (S. 1313), that would cut federal financial support to local governments using eminent domain powers for anything beyond "public uses," which the bill provides "shall not be construed to include economic development." Cornyn's bill contains subtle differences from the House passed bill, but not to the degree that would result in a difficult conference.

NSSGA will continue to track developments regarding eminent domain legislation due to the potentially adverse impacts the Supreme Court's Kelo decision could have on the aggregates industry.

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HOUSE PASSES MEASURE TO REDUCE FRIVOLOUS LAWSUITS

The U.S. House of Representatives has passed another tort reform bill called the "Lawsuit Abuse Reduction Act" (H.R. 420) by a margin of 228 to 184. This bill requires sanctions against plaintiffs and attorneys who file lawsuits that judges deem frivolous. The primary purpose of the legislation is to discourage frivolous lawsuits by reinstating several provisions that were removed from Rule 11 of the Federal Rules of Civil Procedure in 1993.

The legislation calls for mandatory sanctions against plaintiffs who file frivolous lawsuits and defendants who unnecessarily prolong the legal process. Those penalties are discretionary under current law. Under this bill, any lawyer who has filed at least three frivolous lawsuits in the same federal court would be suspended from practicing law for at least one year. It also would eliminate a provision in current law that allows lawyers to avoid penalties by withdrawing frivolous claims within 21 days after a motion for sanctions has been filed.

NSSGA applauds this House action as part of its support for overall tort reform and is working for Senate consideration before the end of the year.

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ARMY CORPS SPENDING BILL ADVANCES

Conferees on the 2006 Energy and Water Appropriations bill (H.R. 2419) reached an agreement on Nov. 7, clearing it for consideration by both the House and Senate. Two days later, the House approved the conference report on a 399-17 vote. The Senate is expected to take up the conference report this week. The Conference Report provides $30.5 billion in funding for the U.S. Army Corps of Engineers-Civil, the Department of Energy, and several Independent Agencies. This bill is $1 billion below the Senate passed level and 2 percent or $749 million above last year's level. Specifically, the Army Corps received $5.4 billion to support a vigorous Civil Works program while focusing limited resources on completing high priority projects, which is roughly $1.2 billion over what the President requested.

The Civil Works program provides for not only transportation of goods on the nation's water highway, but protects communities in the event of flooding or storms and provides much-needed hydropower, water supply, industrial cooling and recreation.

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FAX BAN COALITION PETITIONS FCC ON CALIFORNIA REGULATION

The Fax Ban Coalition, of which NSSGA is a member, filed a petition with the Federal Communications Commission (FCC) asking that it issue a ruling declaring that the FCC has exclusive jurisdiction over interstate communications, preempting a California statute regulating interstate transmissions of faxes. California's law does not recognize the "established business relationship" exemption that the Fax Ban Coalition successfully had codified in federal law earlier this year. NSSGA supports ensuring that the federal exemption is applied throughout the United States in all cases of interstate commerce so as to provide certainty in all communications between businesses and their established clientele.

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FORMER HIGHWAY ADMINISTRATOR DECIDES AGAINST GUBERNATORIAL BID

Former Federal Highway Administrator Mary Peters (R) took her name out of consideration for the Republican nomination for Governor of Arizona on Nov. 3. Peters had been considered a front-runner for the nod because of her political savvy, road-building record, and ties to the state Republican Party.

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National Stone, Sand and Gravel Association
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