Inside AGC Advocacy Update
November/December 2007

AGC Engaged in Issues From Immigration to Infrastructure

WRDA, highway fund shortfalls are of special concern

As the first session of the 110th Congress closes, AGC continues to work to safeguard the needs of its contractor members. From tax to labor issues, like ensuring the workability and educational efforts on the new Social Security “no match” rules, and to infrastructure investment and legal protection for contractors who respond to disasters or emergencies, AGC is the taking your critical issues directly to members of Congress.

California Judge Blocks “No Match” Rule
AGC members have won a major, if-less-than-final victory in their lawsuit against the “no match” rule that the Dept. of Homeland Security announced on Aug. 15. The U.S. District Court for the Northern District of California has issued a preliminary injunction against that rule, blocking its implementation until the court can render a final decision on the merits of the case.

The judge issued the injunction because the rule carries a significant risk of irreparable harm to both employers and employees while a further implementation delay would carry little if any risk for the government.

While AGC is encouraged by the ruling, the association continues to urge members to comply fully with all immigration rules and regulations and to respond promptly to any no-match letters that they receive from the Social Security Administration. It appears that DHS still has the discretion to take a harder look at any employer who ignores a no-match letter, and to use such a letter as at least one piece of evidence of what an employer knew about an individual’s right to work in the United States.

In meetings with AGC, DHS has made it clear that the department intends to step up enforcement of the law. An employer who ignores discrepancies in Social Security numbers may risk closer scrutiny. AGC will continue to monitor the situation carefully and encourage legislative and regulatory changes to effect truly comprehensive immigration reform.

AGC Continues Fight For 3% Withholding Repeal
The House of Representatives voted in October to delay implementation of the 3% withholding for one year, until 2012. If the law goes into effect in 2012, it will require 3% of every payment be withheld from all contracts with federal, state and some local governments. Under current law, the withholding requirement begins on payments starting in 2011. AGC and its membership must continue to educate members of both the House and Senate that the only sensible option is permanent repeal of 3% withholding.

House Committee Approves Bridge Reconstruction and Inspection Bill
On October 31, the House Transportation and Infrastructure Committee approved H.R. 3999, the National Highway Bridge Reconstruction and Inspection Act of 2007. The bill would provide an additional $2 billion to states over the next two years to improve the condition of structurally deficient bridges on the National Highway System. In addition, the bill would direct the U.S. Department of Transportation to strengthen national bridge inspection standards and processes and require states to inspect immediately all structurally deficient bridges and every year thereafter, as well as better prioritize bridge reconstruction needs. The bill would also prohibit states from spending their bridge funds on other projects until none of their bridges are structurally deficient.

Senate Finance Approves Trust-Fund Insolvency Fix
The Bush administration and the Congressional Budget Office are forecasting that revenue for the Highway Trust Fund will fall short of meeting commitments by $4.3 billion in fiscal year 2009. This means revenue could support only a $27.3-billion highway program in FY 2009, nearly $16 billion or 36% below the amount guaranteed by SAFETEA-LU. AGC is supporting Senate Finance Committee Max Baucus (D-Mont.) and ranking member Charles Grassley (R-Iowa) as they address the problem. They have reported a bill out of committee that addresses the Highway Trust Fund’s insolvency with a package of revenue enhancers that will keep the trust fund from going into the red.

Congress Completes Veto Override; WRDA Passes After Seven Years
After President Bush’s veto of the Water Resources Development Act of 2007 (WRDA) on Nov. 2, 2007, Congress moved swiftly to override the veto and enact WRDA after seven long years of consideration. The House passed the veto override motion 361-54 on Nov. 6, and the Senate approved the override by a 79-14 vote on Nov. 8.

AGC has long advocated for passage of the legislation, which authorizes $23 billion in civil works projects administered by the U.S. Army Corps of Engineers. AGC worked with House and Senate leaders to help lead the successful override effort.

Now that final action has been completed on this legislation, House and Senate leaders are vowing to keep WRDA back on its biennial schedule and say they plan to pass another bill in 2008.