PIA LEGISLATIVE UPDATE

PRINTING INDUSTRIES OF AMERICA LOBBYING EFFORTS AND UPDATE

CPSIA
Printing Industries of America this week petitioned the Consumer Product Safety Commission (CPSC) to extend its one-year stay for implementation of the Consumer Product Safety Improvement Act (CPSIA), currently set to expire in February 2010. In its request, Printing Industries noted that despite the CPSC's best efforts to work with the industry over the past year, "it is unlikely to issue promised further guidance and complete several pending rulemaking proceedings that are required for implementation of and compliance with" certain sections of the Act before the current stay expires. In its petition, Printing Industries pledged that "during the extended stay of enforcement, the book printing, manufacturing, and publishing industries will continue to work with the Commission and its technical staff on additional exclusion determinations for certain component materials that are used to manufacture books and other printed-material children's products." The petition was delivered as part of a two-day public workshop sponsored by the CPSC; Printing Industries and member companies participated in the workshop as panelists commenting on technical aspects of CPSIA implementation. Printing Industries was joined by the Book Manufacturing Institute and the American Association of Publishers in filing this request.

EFCA
Printing Industries of America and the Coalition for a Democratic Workplace took advantage of President Obama's recent jobs summit to highlight the job-killing aspect of the Employee Free Choice Act. In a media release, the coalition stated in part, "As we look for solutions to the nation's jobs crisis, the last thing that President Obama and the U.S. Congress should be advocating is legislation that will cost more Americans their jobs." The release also noted a study by prominent economist Anne Layne Ferrar, which stated that the EFCA "will cost American workers 600,000 jobs a year-more than the entire populations of Little Rock, Arkansas; Boulder, Colorado; and Lincoln, Nebraska" with similar job cuts in subsequent years. Consideration of EFCA has been on hold due to the continuing health care debate.

Estate Tax Reform
Congressional testimony delivered on behalf of Printing Industries of America was highlighted this week in a news release issued by House Small Business Committee Ranking Member Sam Graves (R-MO) following House consideration of estate tax reform. Graves highlighted how detrimental the estate tax can be to capital-intensive industries like printing.

Health Care Reform
Health care reform is moving both on the Senate floor with public debate, and, more importantly, off of the Senate floor as a group of ten Senators have been tasked by Senate Majority Reid (D-NV) to find a compromise proposal on the controversial public option/government-run insurance issue that can garner the necessary super-majority vote threshold (60) for passage. Reid announced this week that a compromise proposal had been drafted and was sent to the Congressional Budget Office (CBO) for a cost analysis; once a CBO estimate is available, the Senate is expected to move forward in its debate. Details regarding the compromise are skeletal, but would reportedly expand Medicare eligibility to individuals between 55 and 64 years of age, would create a structure for the federal government Office of Personnel Management (OPM) to administer national insurance plans through a health exchange that would negotiate rates with private insurers, and would add a trigger that would institute a broader public option if certain affordability standards were not met during a specific timeframe. Unfortunately, after three weeks of debate, the Senate has still yet to consider any improving amendments that would address employer mandates, employer taxes, and unique small business concerns. Printing Industries of America, along with colleagues in the Small Business Coalition for Affordable Health Care, this week sent a letter to the Senate detailing problematic sections of the overall health care reform bill. Printing Industries opposes the legislation as it would not address the cost and access issues facing printers, especially small firms, restricts the flexibility of health insurance tools like Health Savings Accounts, and would increase tax liability for employers in order to fund the reform effort. Expect next week to be a critical week of debate. On the House side, Speaker Pelosi made news this week by signaling she may be willing to skip a regular procedural Senate-House conference to merge the significant differences between each chamber's bill by allowing a process known as "ping pong" that would simply allow the House to pass the Senate version. In short, this could make the cloture vote to cut off debate and vote on the Senate bill the critical deciding factor in health care reform. Be sure to weigh in with your U.S. Senators on this issue. Clearly, Democratic leadership is working furiously to meet a self-imposed end-of-year deadline to pass health care reform in order to hand President Obama legislation to sign by the end of January.

Tax Policy - Estate Tax Reform
Last week the House passed H.R. 4154, which would make permanent an estate tax with a $3.5 million exemption/45 percent tax rate (with no index for inflation), by a vote of 225-200. A majority of Republicans and a segment of Democrats voted against the bill because they did not feel it provided enough relief. Printing Industries is on record supporting reform that includes the highest exemption possible and the lowest tax rate possible, indexing for inflation, and, of course, permanency, and is championing legislative proposals that reach that point. (In case you missed it, check out Meredith Mayes of ColorCraft of Virginia making this very case in her excellent testimony before the House Small Business Committee last month.) While the House bill offers less relief than what is needed for family-owned printing companies, in the Senate, there is support for a more favorable approach. Earlier this year, Senators Lincoln (D-AR) and Kyl (R-AZ) offered an amendment to the budget bill which passed 51-49, with ten Democrats voting in favor. Unfortunately, this language was stripped in conference. The Printing Industries-supported amendment would make permanent a higher exemption of $5 million and a lower tax rate of 35 percent, plus it would be indexed for inflation. According to Dr. Ron Davis' estimates, the Senate proposal would provide estate tax certainty/relief for 80 percent of printers. Unfortunately, due to the health care debate, floor time in the Senate for full consideration of this issue in December is sparse. Therefore, Congress may simply pass a one-year extension of the 2009 rates and consider more legislative action on the issue next year.

Small Business Access To Credit
Printing Industries of America this week sent a letter to all members of the U.S. Senate and U.S. House of Representatives raising the issue of access to credit by small businesses as critical and urged action to support appropriations to extend the Small Business Administration (SBA) loan provisions of the America Recovery and Reinvestment Act (ARRA) through all of Fiscal Year 2010. The letter sent by the Small Business Access to Credit Coalition noted that "small businesses cannot be the engine of our economy if they have to line up in a queue and wait to see if they can gain access to credit. Congress needs to act swiftly and restart the flow of credit to America's job-creating small businesses or else these entrepreneurs will be left to sit on the sidelines."

Small Business Job Creation and Access to Capital Act
Acting upon concerns from the small business community regarding access to capital, Sens. Mary Landrieu (D-LA) and Olympia Snowe (R-ME) introduced S. 2869, the Small Business Job Creation and Access to Capital Act. The bill and a section-by-section are attached for your review. Highlights of the legislation include: an increase in the loan limit on 7(a) loans from $2 million to $5 million, an increase in the loan limit on 504 loans from $1.5 million to $5.5 million, and an increase in the loan limit on microloans from $35,000 to $50,000. The bill would also allow the 504 loan program to refinance short-term commercial real estate debt into long-term, fixed rate loans. It would also extend the authorization to provide 90 percent guarantees on 7(a) loans and fee elimination for borrowers on 7(a) and 504 loans through December 31, 2010, and would direct the SBA to create a website where small businesses can identify lenders in their communities. The Senate Small Business Committee is expected to consider S. 2869 next week.

R & D Tax Credit
The House moved to address the expiring Research & Development (R&D) tax credit scheduled to expire at year's end by passing a one-year extension as part of H.R. 4213 (tax extenders bill), which passed by a vote of 241-181. Unfortunately, the bill did not strengthen the credit. Senate action on a companion tax extenders package is contingent upon floor time dominated by health care reform.

Environment & Energy Policy - EPA "Endangerment Finding"
EPA Administrator Lisa Jackson this week announced a key "endangerment finding" that stated the EPA considers greenhouse gases a threat to the health and welfare of the American people. The finding allows the agency to begin regulating carbon emissions within the auspices of the Clean Air Act and would allow action on climate change without Congressional action. The finding was met with considerable outcry from the domestic manufacturing sector due to concerns that new environmental regulatory burdens would increase facility costs and hurt job creation and economic growth. Additional concerns include the lack of overall small business impact analysis for the greenhouse gas regulatory proposals issued by the EPA, which are expected to be finalized by March 2010. The EPA announcement comes as intense focus on the issue of climate change as part of the United Nations Conference on Climate Change in Copenhagen during which President Obama is expected to commit the U.S. to a 17 percent greenhouse gas reduction by 2020. The commitment is similar to the intent of the House-passed climate change legislation known as Waxman-Markey. This week, a trio of Senators-Graham (R-SC), Kerry (D-MA), Lieberman (I-CT)-announced a framework for a similar proposal they intend to champion in the Senate. Regarding Copenhagen, Speaker Pelosi is expected to lead a congressional delegation to the conference that will include both proponents and opponents of Waxman-Markey.

Labor & Employee Benefits Policy
Secretary of Labor Hilda Solis this week announced the Department of Labor's (DOL) semi-annual regulatory agenda, which will impact Congressional consideration of labor and workforce policy. The agenda contains 90 proposed rules and current regulatory action, upon some of which Printing Industries is already advocating a pro-print, pro-growth position. A key piece of the agenda includes reinstatement of "musculoskeletal disorders" on the injury and illness recordkeeping forms and an added definition of the disorder to the Occupational Safety and Health Act. This may be an indication of future efforts by the administration to develop some form of an ergonomics standard similar to one promulgated under the Clinton administration; Printing Industries was instrumental in defeating the Clinton-era proposal. While DOL has indicated it currently has no intention to pursue ergonomics, the regulatory agenda outline can be construed otherwise. David Michaels, whose nomination as head of OSHA has been making its way through the Senate process, is expected to be installed shortly and will direct what work OSHA will or will not do on an ergonomics regulation. Other topics on Solis' agenda include: FMLA, FLSA, federal contracting, ADA, and disclosure of labor relations activities.

Political Update
U.S. Senate: NC

Former State Senator Cal Cunningham (D) officially announced he will challenge PrintPAC endorsed candidate Richard Burr (R) in 2010. Cunningham will join a Democratic primary field that already includes Secretary of State Elaine Marshall and attorney Ken Lewis. Senator Richard Burr is a long-time supporter and champion of the printing and graphic communications industry and has been since his days in the United States House of Representatives from 1994 through 2005. Senator Burr serves on key committees, including the Energy & Natural Resources and Health, Education, Labor & Pension Committees and has repeatedly voted in support of the industry's policy positions.

U.S. House: TN-08

Rep. John Tanner (D) announced last week that he will not seek a twelfth term next fall. Rep. Tanner is a co-chairman of the Blue Dog Coalition that represents a pro-business voice in the Democratic Caucus. PrintPAC has supported the Blue Dog Coalition under Rep. Tanner's leadership since 2007. The open seat in the northwest corner of Tennessee is expected to be competitive, with TN State Sen. Roy Herron (D) dropping out of his bid for governor in order to run as the Democratic nominee. On the GOP side, a crowded primary field is expected. To date, national Republicans are coalescing around gospel singer Stephen Fincher (R), who has already raised more than $350,000 to fund his campaign.

U.S. House: WA-03

Rep. Brian Baird (D) announced this week that he will not seek a seventh term. While Baird has been re-elected easily in past cycles, the Olympia-area seat is one of the most competitive in the nation. The district voted for President Obama by 53 percent in 2008 and for President Bush by 50 percent in 2004. Baird's retirement announcement is the third by a Democratic Representative in a competitive swing district in as many weeks. Reps. Dennis Moore (D-KS) and John Tanner (D-TN) are also retiring at the end of this term.


If you have a question about any of the issues above or other government affairs-related concerns please feel free to contact us at govtaffairs@printing.org or (202) 730-7970.

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