Masonry Magazine October 1996 Page. 15
Many Contractor Issues Gain Passage...
Others Still Face Hurdles
by: Michael Adelizzi, MCAA Executive Director
After nearly two years of partisan battling and election year jockeying, the Congress has been sending bills to President Clinton at a hurried pace. Many of the subcontractor supported issues have recently been signed into law by the President while prospects for other issues being passed appear bleak for the balance of this Congress. Although this Congress has been sympathetic to small business, many of the issues not acted upon will be forced to await the fate from possibly a new Congress and President in 1997.
OSHA Reform
Although one of the most prominent issues for contractors debated during the past two years, significant OSHA Reform is all but dead in this Congress. OSHA Reform held strong hopes for passage earlier in the 104th Congress when a Republican majority was swept into Congress. Unfortunately, the issue became mired down after Republicans pushed a repeal of Davis Bacon which energized labor to aggressively fight to keep Davis Bacon. Many moderate and freshmen Republicans became stung and did not want to take on a second labor sensitive issue. Instead, Republicans turned their attention to other issues such as health care and welfare reform. Even attempts to modify previously proposed OSHA Reform failed to get the necessary sponsors to insure passage this year.
Health Care Reform
Republicans delivered to President Clinton a health care bill he had long wanted. After being locked in a massive debate over enormous health care reform several years ago which collapsed due to the size of the government control of the nation's health care, Republicans and Democrats hammered out a compromise and delivered H.R. 3103 to the President which he signed into law on August 21. Although this new law was miniature in scope compared to the President's failed 1994 initiative, both he and the Republicans in Congress claimed victory. This new law has many of the components sought for reform such as portability guaranteed health insurance (at least for those who currently have insurance), deductible medical savings accounts (MSA's) and tax deductibility of long term care costs. MSA's would allow people to make annual contributions toward high deductible health insurance plans. MSA's would then be used to pay for medical expenses and employees could save what they did not use. Medical savings accounts would be available to a limited population of 750,000 for four years after which time Congress would vote on whether to expand eligibility to everyone. The trial population would include workers at companies with 50 or fewer employees, self employed workers and the uninsured. The law, however, does little for the estimated 43 million Americans without health insurance-the focus of Clinton's ill-fated proposal.
Compensable Travel Time
Lost in all of the hoopla over the minimum wage increase is the issue of Compensable Travel Time which would force contractors to pay workers who took home company vehicles from the time they left their homes to the time they arrived at the job site. The increase of the minimum wage was attached to the measure to amend the Portal-to-Portal Act which will now allow contractors to begin paying workers once they arrive at the job. Several criteria must be met first in order for travel time to be considered non-compensable. One criteria is the use of the employer owned vehicle is strictly voluntary and not a condition of employment. Second is the vehicle is the type that would normally be used for commuting. The other criteria is the employee incurs no cost for driving or parking the employer owned vehicle at customer work sites and within the normal commuting area of the employers business.
Estate Taxes
Long sough after by small family owned business, estate tax relief has been stalled along with other tax relief measures. A number of measures had been promoted during the past year which would relieve descendants in a family owned business worth up to $1.5 million from paying estate taxes. If the descedants family owned business assets exceed $1.5 million, then one half of the excess would have been excluded from the estate. Estate tax relief simply became a hostage to more pressing issues farced by Congress.
Looking Ahead
With key small business issues still to be resolved and the likelihood of passage this year all but a foregone conclusion, 1997 appears to be the next battle for significant OSHA Reform and tax relief. Which makes this fall's elections pivotal to the fate of issues such as OSHA Reform next year. If labor unions $35 million campaign efforts on behalf of Democrats attempt to regain control over the Congress are successful, issues such as OSHA Reform may never see the light of a Congressional vote.