Today, the Associated General Contractors of America (AGC) notified members of the U.S. House of Representatives of its intent to key vote H.R. 748, the Middle Class Health Benefits Tax Repeal Act of 2019. The association supports this bipartisan legislation that would repeal the 40 percent excise tax on employer-sponsored health coverage and employee benefits under the Affordable Care Act (ACA).

On June 10, AGC and its coalition partners submitted comments in response to the U.S. Occupational Safety and Health Administration’s (OSHA) request for information on issues related to requirements in the standards on powered industrial trucks for general, maritime, and construction industries. OSHA has sought information regarding the types, age, and usage of powered industrial trucks, maintenance and retrofitting of powered industrial trucks, how to regulate older powered industrial trucks, the types of accidents and injuries associated with operation of powered industrial trucks, the costs and benefits of retrofitting powered industrial trucks with safety features, and the costs and benefits of all other components of a safety program including operator training.

On June 7, AGC submitted comments to the U. S. Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) in response to its proposal to institute a new approach in reviewing federal construction contractors’ compliance with OFCCP’s Affirmative Action Program (AAP) and record-keeping requirements through compliance checks. OFCCP intends for these compliance checks to be less burdensome, but exercised in greater quantity as opposed to more intensive compliance reviews or audits. If OFCCP determines during the compliance check that the contractor has not maintained AAPs, affirmative action specifications, and required records, OFCCP will provide individualized compliance assistance to help the contractor come into compliance and may place the contractor in a pool for a future compliance evaluation. The amount of information for contractors to submit would be more extensive for direct federal contractors than federally assisted contractors.

Surprise medical billing is a growing issue where patients face unexpected charges after they receive medical care. Despite the partisanship in Washington, there are growing bipartisan calls in Congress and by President Trump to end surprise billing, making it one of the few potential legislative accomplishments this Congress. On June 5, AGC joined a broad group of organizations in a urging Senate leaders to prioritize needed reforms to resolve surprise medical billing. AGC supports a legislative solution because surprise bills can create hardship for employees’ financial well-being and lost productivity fighting the bills.

The U.S. Secretary of Labor appointed AGC of America’s Senior Director of Safety & Health, Kevin Cannon, as the new Chairman of the OSHA Advisory Committee on Construction Safety and Health, citing his commitment and leadership abilities. Cannon has served as a member of the committee since 2011, representing construction employers as the committee helps advise the Secretary of Labor on safety standards and policy issues.

For more information, contact Kevin Cannon at cannonk@agc.org.

On May 21, AGC submitted comments to the U. S. Department of Labor’s (DOL) Wage and Hour Division (WHD) in response to a Notice of Proposed Rulemaking (NPRM) updating the Fair Labor Standards Act (FLSA) overtime regulations. In line with AGC’s recommendations to the WHD, this NPRM is the second step the DOL is undertaking to revisit the Obama administration overtime rule that dramatically increased the salary threshold for exempt employees and would have resulted in unintended consequences, particularly for small construction companies construction employers in lower-wage regions, and construction personnel. In contrast to the Obama rule, this new proposal would simply update the salary threshold using current wage data, projected to January 1, 2020. The result would boost the standard salary threshold for exempt employees from $455 to $679 per week (equivalent to $35,308 per year).

Status of Trade Negotiations with China in Question

On May 5, President Trump announced via Twitter that his administration plans to increase the tariff rate on $200 billion worth of Chinese imports from 10 percent to 25 percent on May 10. He also stated plans to place duties on another $325 billion worth of Chinese import goods. Many of the items that have had duties accessed on them are materials incorporated into the actual construction project itself, necessary parts for manufacturing construction equipment, or the construction equipment itself. Costs for these various supplies, materials, and equipment may rise accordingly, placing further pressure on contractors to increase their bid prices. For a full rundown of trade actions taken by the Trump administration and their impact on the construction industry, click here.

For more information, contact Cory Gattie at cory.gattie@agc.org or (202) 547-4685.

Will Identify Billions in Public Asset Disposal

General Services Administration (GSA) Administrator Emily W. Murphy recently swore in four new Public Buildings Reform Board members: Angela Styles, Mary Phillips, Nick Rahall, Talmage Hocker, and David Winstead. The board was established by the AGC-supported Federal Assets Sale and Transfer Act (FASTA). The Public Buildings Reform Board is mandated to identify opportunities to reduce the federal real property inventory and make recommendations for the sale of at least $8 billion worth of underutilized and vacant federal properties. AGC has long been involved in pushing for federal real property reform and has supported these efforts in Congress.

Suggests improvements based on contractor feedback

On April 15, AGC formally supported and offered substantive feedback in response to a new definition of “Waters of the United States” (WOTUS) proposed by the U.S. Environmental Protection Agency and the U.S. Army Corps of Engineers.  The current proposal provides greater clarity than the 2015 WOTUS Rule (undergoing legal challenges and repeal): it better identifies federal waters, respects states’ primary role in pollution prevention, and balances major case law from the last couple of decades.

In its comments, AGC urges the agencies to further refine newly proposed definitions or points of specific interest to the construction  industry.  Specifically, AGC calls on the agencies to exclude ditches that are part of a community’s public infrastructure from regulation as a federally jurisdictional water.  AGC also seeks a full exclusion for stormwater control features, a standard methodology(ies) for distinguishing between ephemeral versus intermittent waters, limits on the timeline and extent of documentation for historical inquiries, more examples of how the exclusions would work in the field, as well as greater clarity on how the proposal would treat flood controls.

The agencies will now take several months to review and respond to public comments on the proposal and prepare a final version of the rule.  AGC expects them to release a final rule towards the end of the year; however, the first quarter in 2020 is also a possibility.  The agencies have been very deliberative during the “repeal and replace” process and the timelines often are extended as a result.  In the interim, AGC will continue to be involved as the proposal moves through completion and as Congress looks to address WOTUS.  AGC continues to track legal challenges to the 2015 WOTUS Rule that are moving through the courts at the district level.  However, a formal repeal of the 2015 WOTUS Rule by the agencies is imminent.

For more information, please contact Melinda Tomaino at tomainom@agc.org.

On Thursday, April 25, AGC of America in partnership with the Master Builders’ Association of Western Pennsylvania, Constructors Association of Western Pennsylvania and P.J. Dick, Inc. hosted Representative Mike Kelly (R-PA) for a tour of a vertical construction project in Erie, Pennsylvania.  While touring the site, construction officials, AGC staff, and Rep. Kelly discussed the need for Congress to address the workforce shortage in the construction industry and pass a long-term infrastructure bill.  Rep. Kelly is the lead co-sponsor of AGC-supported legislation to create a new category of Private Activity Bonds (PABs) for the construction or rehabilitation of public buildings and AGC thanked him for his support.  Additionally, Rep. Kelly serves on the Committee on Ways and Means, and he discussed the effects of the Tax Cuts and Jobs Act on the Pennsylvania economy.

If your company is interested in hosting a member of Congress for a job site tour please contact Jenni Traver at jennifer.traver@agc.org.