Washington Update for September 2000
Provided by the National Association of Manufacturers

Trucking Hours of Service
The Department of Transportation (DOT) has extended the comment period for its costly hours-of-service proposal to 12/15/00 and scheduled three roundtable discussions this fall. The proposed rule will have questionable safety benefits, dramatically restructure our nation's freight-delivery system, jeopardize just-in-time inventory management, and lead to increased transportation costs which will be passed on to shippers and, ultimately, consumers. There is currently an National Association of Manufacturers (NAM)-supported provision in the Senate transportation appropriations bill for FY 2001 prohibiting use of DOT funds to finalize this proposed rule, but the ultimate outcome is uncertain.

Environmental Justice
The comment period for EPA's revised environmental-justice guidance closed 8/28. By failing to adopt a clear process by which facilities will be allowed to operate, EPA has invited challenges under Title VI of the 1964 Civil Rights Act to existing and future permits. This could severely disrupt your business planning. The NAM coordinated business' response to EPA. Despite substantial improvements over the 1998 Interim Guidance, there is still concern that the revised guidance does not provide the necessary predictability and certainty for environmental permitting. A final guidance could be issued before the elections.

Foreign Trade
China permanent normal trade relations (PNTR) bill is a top Senate priority this fall. It passed the House earlier this year after a tough debate. Any Senate amendments would send the measure back to the House, where political pressures and delays could be fatal. Organized labor has made defeat of PNTR its top policy priority. Approval of PNTR would mean more business opportunities for you and your customers in China, which is already our fourth-largest trading partner.

Death Tax Repeal
An attempt to override the president's veto could come within a few days. ``The death tax is the wrecking ball of a life's worth of achievements and success,'' said House Ways and Means Committee Chair Bill Archer (R-TX). Supporters of the repeal contend the tax is an unfair burden. Opponents condemn the bill as a sweetheart deal for the very rich. "If Republicans were being honest about the beneficiaries of their estate tax break, it would have been delivered by Donald Trump in a stretch limo, not a farmer on a tractor, said House Minority Leader Richard Gephardt (D-MO). Before the November elections, it is likely that the House will attempt to override President Clinton's veto.

Pension Reform
The Senate Finance Committee is expected to give careful consideration to pension reform legislation this fall. Committee Chair Bill Roth (R-DE) has long been a strong supporter of retirement security.The bill is expected to be similar to legislation overwhelmingly approvedby the House in July. Capitol Hill sources say significant pension legislation could be enacted before Congress adjourns in October. Pension reform has broad bipartisan support in both houses.

E-Commerce Taxation
Congressional staff has concluded that the Senate Finance Committee does have jurisdiction over e-commerce taxation, from both a trade and tax perspective. Time permitting, there may be a hearing later this year to revisit the scope of the current moratorium.

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