Capitol Hill

NRCA is working in Washington, D.C., to see that Congress passes two important initiatives: association health plans (AHPs) and a shorter tax depreciation schedule for nonresidential roof systems.

AHPs

AHP legislation, the Small Business Health Fairness Act of 2003 (HR 660), was voted on in the U.S. House of Representatives in 2003 as a stand-alone bill and passed by a 100-vote margin. A stand-alone bill is subject to a vote in the House or Senate without being part of a larger, multifaceted piece of legislation.

The companion AHP bill in the Senate, S 545, has been referred to the Committee on Health, Education, Labor and Pensions. However, it is unlikely the bill will be voted out of committee and moved to the Senate floor as a stand-alone bill. The AHP coalition, which is composed of associations, including NRCA, that support HR 660/S 545, surveyed senators to determine how many of them support S 545 and found the bill does not have the 60 votes necessary to invoke cloture and stop endless debate by opponents.

On Jan. 20, when President Bush urged Congress in his State of the Union Address to pass AHP legislation, he really was speaking to the Senate. This was a big victory for NRCA and the AHP coalition. NRCA's Washington office staff has met several times with White House officials to see that the president stays "on message" regarding AHPs, and in this speech, he was on message before the entire country. In addition, during a Jan. 28 White House round-table meeting about health insurance, Bush reiterated his support for AHPs.

Before the State of the Union Address, Senate Majority Leader Bill Frist (R-Tenn.) formed the Republican Task Force on the Uninsured. He now has been told by the president AHPs should be part of the task force's proposals, which are expected sometime this spring. NRCA's Washington office staff is monitoring the task force to make sure AHPs are in the final proposal package. Assuming this occurs, the next step is to find a larger legislative vehicle, such as an appropriations bill, in which to insert S 545. This probably is the only way S 545 will get through the Senate and to the president this year.

Should this strategy not be feasible, the AHP coalition might push the Senate leadership to schedule a vote on S 545 as a stand-alone bill. This would be done knowing that though the bill would not pass, such a vote would force senators to go on record for or against AHPs.

R2T2

The Realistic Roofing Tax Treatment Act (R2T2) of 2003 (S 1679/HR 3310) would shorten the tax depreciation schedule for nonresidential roof systems from the current 39-year schedule to 20 years. Introduced by members of the Senate Committee on Finance and House Committee on Ways and Means, it is unlikely the act will be taken up as stand-alone legislation in either chamber. Instead, R2T2's chances for passage will depend on whether it is added to a larger legislative vehicle.

One possibility is adding R2T2 to the American Jobs Creation Act (HR 2896) or Jumpstart Our Business Strength (JOBS) Act (S 1637). Late in 2003, the House Committee on Ways and Means passed HR 2896 and Senate Finance Committee passed S 1637. Both pieces of legislation would repeal a tax break for exporters that has been deemed an illegal trade subsidy by the World Trade Organization. To compensate for repealing the exporter tax break, both bills create new tax incentives for U.S. manufacturers. R2T2 would benefit manufacturers and has been discussed as a possible add-on to the House bill.

House Small Business Committee Chairman Don Manzullo (R-Ill.) is leading a group of up to 40 House members opposed to HR 2896 because they believe it does not do enough to help U.S. manufacturers. Manzullo controls enough votes to keep the bill from passing in the House and reportedly has been negotiating directly with House majority leadership to modify the bill regarding his concerns. Of note is that Manzullo is an enthusiastic co-sponsor of R2T2 and agrees with NRCA that a shortened tax depreciation schedule for nonresidential roof systems would help U.S. manufacturers.

The JOBS Act appears to have the votes to pass the Senate but would be subject to a conference committee with authors of the House bill to negotiate differences with the House version when it passes HR 2896. Manzullo may be a House conferee.

If R2T2 is not added to this tax legislation, another bill is being drafted that would extend expiring tax breaks, such as the current $1,000 child tax credit, which is set to revert to $700 in 2005. And there will be several other tax bills in the next Congress.

AHPs and R2T2 demonstrate that getting a bill through Congress can be a complicated journey that depends on other legislative vehicles.

Craig S. Brightup is NRCA's vice president of government relations.