NECA Government Affairs Update: Monday, July 20, 2009

House Health Care legislation making its way through committee; some pushback from Democrats –Last week, the education and tax committees began consideration of the recently introduced health care legislation.  While the legislation passed both the tax and education and labor committees, several fiscally-minded Democrats voted against the legislation citing concerns with the surtax on small businesses and individuals.  The House committee’s consideration of the legislation followed remarks from the Director of the Congressional Budget Office that the proposed legislation “may not reduce costs to the government or lower premiums for some individuals.” 

The more controversial provisions in the House measure include:

Employers will be required to contribute 72.5% of the premium for individual coverage; 65% of premium for family coverage.

Employers electing not to provide health care to employees are subject to an additional payroll tax of 8 percent of wages

A $544 billion surtax on wealthy individuals beginning in 2011 that could increase in 2013 if certain projected savings are not reached

$350K to $500K – 1% surtax

$500K to $1M – 1.5% surtax

Above $1M – 5.4% surtax

There will be an exemption for small businesses with a payroll less than $250,000 during the previous year.  Those employers with a payroll above $250,000 will be required to pay a surtax.

Individuals who do not maintain acceptable health coverage are subject to an additional tax

No cost estimates have been provided for a public or government-run program.

The competing Senate committees have not begun formal consideration of health care legislation.  The Senate Finance Committee is expected to release its legislation sometime today or tomorrow.  It is unclear whether the Senate package will include the same tax increases or whether it will choose other revenue options such as taxing employer-provided health benefits.  Over the last two weeks, NECA advocated in opposition to such a tax with several Senators. 

Some of you have expressed concerns with the health care legislation but we would like to hear from more NECA contractors.  Please submit your views tonega@necanet.org.

OSHA Update – NECA has been working with other associations on drafting a letter speaking out against H.R. 2067, the “Protecting America’s Workers Act,” introduced by Rep. Lynn Woolsey (D-CA).  The bill would expand OSHA’s jurisdiction to cover more employees and would allow felony prosecutions against employers who commit willful violations that result in death or serious bodily injury. Some violations that were previously considered as misdemeanors would now be labeled as felonies. Corporate officers could now be held liable for OSHA violations. This legislation presumes that employees are reluctant to report injuries and adopts regulations to increase protections for these.  At some point in the near future and at a strategic time, NECA will be sending a letter to Congress opposing H.R. 2067.  NECA is also planning visits to various Congressional offices to discuss the legislation.

A deal on EFCA? – Various publications are reporting that organized labor and various legislators have brokered a deal on the Employee Free Choice Act (EFCA).  The deal would remove the “card check” provision, one of the more contentious sections of the legislation that would have required employers to recognize a union as soon as a majority of workers signed cards saying they wanted a union.  It is unknown how the compromise impacts some of the arbitration provisions in the legislation.

Lake attends events for Markey, Pomeroy – Lake attended an event for Rep. Earl Pomeroy (D-ND).  The Congressman played the lead role in legislation reforming multi-employer pension relief and is likely to lead the effort again this year.  Lake also attended a climate change briefing with Rep. Ed Markey (D-MA) as the keynote speaker.  Alongside Rep. Henry Waxman (D-CA), Rep. Markey introduced the cap and trade legislation that was passed by the House just before the July 4^th recess.  Markey spoke of the national security benefits of the legislation including reducing the nation’s dependence on foreign oil and making the country more energy independent.  He also mentioned the increased demand for renewable energy that will result from the legislation, but did not speak much of the anticipated increases in energy costs for homeowners and building owners! 

Last weekend, Lake had the opportunity to play a round of golf with Republican leader, Rep. John Boehner (R-OH).  We’ve included a picture in the attachment.

Blair would like to thank the Arkansas Chapter for their hospitality this past weekend in Branson, Missouri, especially Chapter Executive Chester Leonard.  She would also like to thank Doug Martin, St. Louis Chapter Executive, for extending an invitation to a local fundraiser for Rep. Jo Ann Emerson (R-MO).  More information and pictures from the weekend forthcoming!