Political Action

Legislative Update
March, 2003

The first week in March, Congress completed its work on last year’s budget, and has moved on to more current items. Debate over war with Iraq, caps on medical malpractice awards and jockeying for position in the 2004 Presidential election race are foremost on the agenda.

NECA has a strong interest in a number of issues that should see action in the course of this Congress.

- The effort to protect and maintain prevailing wage laws will continue, as we face
regular and repeated efforts by opponents to cripple or limit its application.

- A legislative attempt will be made to to allow “voluntary” compensatory time off
in place of overtime pay. NECA and the IBEW jointly and strongly oppose this
proposal.

- Remedial legislation will be introduced to prevent ERISA pension funding requirements from throwing sound, but temporarily under-funded, multiemployer plans into insolvency or imposing heavy new funding requirements on contributing employers. This could occur simply because of the unusual economic decline of the past three years. Unless this measure is passed many employers could face substantial real or contingent liability, as well as steep increases in pension insurance premiums.

- “Responsible Contracting” legislation will be reintroduced, supported by NECA, which would make available to all federal contracting agencies an up-to-date list of contractors who have a history of repeatedly violating federal regulations, including prevailing wage and other such laws. This would allow federal agencies to factor in their compliance when awarding contracts.

- Permanent repeal of the estate tax, repeal of the alternative minimum tax, and elimination of the double taxation of dividends are high priorities in the Administration’s tax proposal. NECA strongly supports these changes.

- An energy policy measure is already under consideration. NECA is working to include language protecting contractors from unfair (cross-subsidized) competition from utilities. We also are trying to prevent unilateral repeal of the Public Utilities Holding Company Act without alternative protections for contractors in place. NECA also supports federal assistance for new and expanded programs of energy conservation and modernization, including modernization and expansion of the national electrical transmission and distribution network.

- This is a very ambitious legislative agenda. However, if it looks possible, we also will be working to pass anti-bid-shopping legislation and to extend prompt pay requirements to federally-assisted construction.

Overall it could be a very busy year for Government Affairs.

ECPAC
NECA has moved substantially closer to its goal of a million-dollar political action effort in every election cycle (two years). ECPAC collected $647,000 for the 2001-2002 election period. NECA’s political action arm contributed to 124 races for the House and Senate, achieving an 85% success rate in electing its chosen candidates.

All-new looks for ECPAC and NECA’s Action Team programs have been introduced in 2003, replacing the images that have been with the programs since the late 1970’s. The new looks tie much more closely into that of the NECA flag logo, and are particularly appropriate for Government Affairs-related programs.

Campaign for Quality Construction Issues Conference

Participation in the Campaign for Quality Construction national Issues Conference (formerly the “Alliance National Issues Conference”) has been expanded to include two additional union-employing specialty construction associations in 2003. The Finishing Contractors Association (FCA) and the “NEA - The Association of Union Constructors” join NECA, SMACNA and the MCAA as sponsors of the annual conference under its new banner. The Conference will be held Monday-Wednesday, May 5-7 at the Grand Hyatt Hotel in Washington, D.C.