OCTOBER 4, 2006

The “NATaT Washington Report” is a monthly email newsletter that provides timely information to town and township officials on the legislative, regulatory, funding, and policy decisions in Washington that could affect your communities. The Washington Report focuses on NATaT’s primary issues including federal domestic funding, telecommunications, and local first responders, as well as a variety of other important federal issues. The Washington Report is produced by NATaT’s federal representative in Washington, The Ferguson Group. For more information on the legislation described in this report, see http://thomas.loc.gov/ or contact The Ferguson Group. Contact NATaT federal director Jennifer Imo at 1.866.830.0008 or jimo@tfgnet.com for more information.

THE OCTOBER 2006 WASHINGTON REPORT CONTAINS SUMMARIES OF THE FOLLOWING ISSUES:

• APPROPRIATIONS AND BUDGET
• EMINENT DOMAIN: REGULATORY TAKINGS
• ENVIRONMENT AND NATURAL RESOURCES
• HOMELAND SECURITY
• NATIVE AMERICAN AFFAIRS
• PUBLIC SERVICE VOLUNTEERS
• TELECOMMUNICATION (NATIONAL CABLE FRANCHISING)

APPROPRIATIONS AND BUDGET

Congress adjourned on Friday, September 29th and is scheduled to return on November 13th, after the mid-term elections. Before adjourning, Congress passed a stopgap measure, known as a continuing resolution (CR), which will fund programs covered by all appropriations bills that were not enacted by the October 1st start of fiscal year (FY) 2007. Not included in the CR are programs funded by the Defense and the Homeland Security spending measures; these are the only two appropriations bills passed before the end of FY 2006. Appropriators have expressed their desire to complete the remaining nine spending measures in November to avoid rolling them into an omnibus appropriations bill; however, that may be difficult given the few legislative days remaining in the 109th Congress.

These federal appropriations bills include funding for hundreds of domestic programs that support agriculture, rural development, small business, economic development, public safety and criminal justice, education, energy, water resources, environmental protection, health and human services, housing, community development, job training, transportation infrastructure, and other issues that are vitally important to town governments. Nearly 100 programs are “earmarked” for projects in local communities. The federal budget is under substantial pressure, and many domestic funding programs have been proposed for elimination by the President and some congressional members. Copies of current drafts of federal appropriations bills can be viewed at http://thomas.loc.gov/home/approp/app07.html.

EMINENT DOMAIN: REGULATORY TAKINGS

On September 29th, the House passed H.R. 4772, the Private Property Rights Implementation Act of 2006. This bill provides access to federal courts for property owners challenging land-use regulations by state and local governments. The Senate, however, is not expected to act on the bill before the end of the 109th Congress.

Disputes involving local planning issues should be resolved at the local level, and if not resolved locally, should be handled in state courts. Enactment of H.R. 4772 would impose a major new, unfunded financial burden on local governments, both in terms of added litigation expenses and potential damages awards. By both expanding the scope of municipal liability and creating many new questions about the extent of local government liability, the bill would significantly interfere with local officials’ ability to deal with local land use and serve their communities. NATaT signed on to a letter of opposition sent to the U.S. House of Representatives.

ENVIRONMENT AND NATURAL RESOURCES

Water Resources Development Act

In the remaining legislative days in September, it looked as if the House and Senate had finally come to an agreement on the long awaited Water Resources Development Act. However, due to continuing controversies over several expensive projects and a few Corps Reform measures, the staff level conference ended in deadlock the night before both chambers adjourned September 29th for the mid-term elections. Congress is expected to consider WRDA when it reconvenes in November. In fact, even if the leadership changes in either chamber, it looks possible for a WRDA bill to be passed and sent to the President.

If WRDA does not pass this year, it must be reintroduced next year and the process will start all over again. While the legislation should be passed every two years, Congress has not passed a WRDA bill since 2000. The House version, H.R. 2864, passed the House on July 14, 2005 and the Senate version passed the Senate on July 19, 2006.

Many towns and townships are directly involved or affected by water resource projects on their local rivers, lakes, coasts, canals, reservoirs, and wetlands. NATaT supports the passage of WRDA legislation that is badly needed to support local water resource improvements and projects. WRDA legislation should include improvements to the Corps planning process to reduce delays in Corps projects, fair cost-share methodologies for local project sponsors, and broadened Corps authorities to support local waterfront revitalization.

HOMELAND SECURITY

Homeland Security Appropriations

On September 29th, Congress approved the FY 2007 Homeland Security Appropriations bill. The following are funding totals for major programs for local governments:

• $525 million (or $25 million less than the FY 2006 level) for the State Homeland Security Grant Program;
• $375 million (or $25 million less than the FY 2006 level) for the Law Enforcement Terrorism Prevention Grant Program;
• $770 million (or $5 million less than the FY 2006 level) for the Urban Area Security Initiative (UASI) Program;
• $74 million ($24 million more than the FY 2006 level) for the Buffer Zone Protection Program;
• $210 million (the same as the FY 2006 level) for the Port Security Grant Program;
• $545 million (or $2 million less than the FY 2006 level) for the Assistance to Fire Fighters Grant Program;
• $115 million (the same as the FY 2006 level) for the Staffing for Adequate Fire and Emergency Response (SAFER) Grant program; and
• $200 million (or $20 million more than the FY 2006 level) for the Emergency Management Performance Grants (EPMG) Grant Program.

Towns need interoperable telecommunications equipment so that first responders, including police, fire and emergency services personnel can communicate effectively with each other as they protect public safety. However, major federal funding support should be provided for this expense, particularly if Congress plans to impose more mandates on localities for the implementation of interoperability plans and requirements. NATaT supports approaches that provide additional grant funding to all communities, including small towns, for these needs.
Federal Emergency Management Agency (FEMA) Overhaul

Legislation to reform FEMA was included in the FY 2007 Homeland Security Appropriations bill. The bill will keep FEMA within the Department of Homeland Security but give it a more autonomous status. It also will give the FEMA Director greater power to report to the President, a role that the provision’s proponents have compared to the Joint Chiefs of Staff. Annual 10 percent funding increases for a host of FEMA programs are authorized for fiscal years 2008-2010.

Towns and townships continue to have major needs for emergency preparedness and first responders, particularly with respect to local firefighting and infrastructure security needs.

NATaT urges Congress to maintain adequate funding for local firefighting and first responder grants, and to direct the Department of Homeland Security to provide such grants in a manner that recognizes the real needs of small communities struggling with local first responder capacity issues.

NATIVE AMERICAN AFFAIRS

Off-Reservation Gambling

On September 13th, the House rejected H.R. 4893, the Restricting Indian Gaming to Homelands of Tribes Act of 2006, which sought to tighten restrictions on the development of American Indian casinos on off-reservation sites, also known as “reservation shopping.”

The bill would have amended the Indian Gaming Regulatory Act (IGRA). Passed in 1988, IGRA strictly prohibits recognized tribes at the time of the bill’s passage from constructing a casino outside reservation lands. IGRA currently contains exceptions for tribes that gained federal recognition after the measure was enacted and therefore had no land. H.R. 4893 would restrict the reservation shopping allowed under IGRA by requiring a newly recognized tribe to sign a memorandum of understanding with local governments stipulating that the tribe would mitigate any direct impact the casino has on local government services. The state and the Interior Department also would have to approve the deal. The bill would also limit tribes to operating casinos to the state in which they are primarily located.

In the Senate, Indian Affairs Committee Chairman John McCain (R-AZ) has gotten little traction on his more sweeping Indian gaming legislation, S. 2078, the Indian Gaming Regulatory Act Amendments of 2005. S. 2078 would give authority to the National Indian Gaming Commission to regulate class III games (“Vegas style” casino games) and to approve all gaming related contracts entered into by a tribe, as well as requiring a higher level of local input in the off-reservation casino location process.

Given the extremely limited legislative calendar that remains, it appears unlikely that the House will directly consider H.R. 4893 again. This does not preclude the bill from being attached to a piece of “must-pass” legislation, though doing so would require the cooperation of the Senate.

Health Care

Several proposals have been circulating Congress this year to lower health care costs and increase health services provided to Native Americans. No proposal has received full consideration, and while Congressional advocates will continue to push these measures, it is unlikely they will be enacted during the remaining days of the 109th Congress.

Many towns and townships are affected by tribal activities taking place within their jurisdictions. NATaT members support initiatives that will help tribal communities become sustainable, healthy places. At the same time, towns and townships seek federal and state requirements that casino operations, which can have major impacts on local quality of life, are conducted in a manner that mitigates negative impacts and provides a fair share of resources for local services.

PUBLIC SERVICE VOLUNTEERS

Supporting Emergency Responders Volunteer Efforts Act of 2005 or the SERVE Act of 2005

In early 2005, Representative Maurice Hinchey (D-NY) and Senator Charles Schumer (D-NY) each introduced the Supporting Emergency Responders Volunteer Efforts Act of 2005 or the SERVE Act of 2005 (H.R. 934/S. 625). With bipartisan support, the bill would amend the Internal Revenue Code of 1986 to allow a $1,000 refundable credit for individuals who are bona fide volunteer members of volunteer firefighting and emergency medical service organizations. H.R. 934 also prorates the credit for part-year active members. This $1,000 annual tax credit for active members would serve as an important recruitment and retention tool.

H.R. 934 has 49 co-sponsors and is pending before the House Ways and Means Committee, while S. 625 has 2 cosponsors and is pending before the Senate Finance Committee. This measure will not likely pass this year in the short lame duck session, but may be reintroduced in the 110th Congress.

H.R. 5607, Volunteer Firefighter and Emergency Medical Service Incentive Act of 2006

On June 14th, Representative Randy Kuhl (R-NY) introduced the Volunteer Firefighter and Emergency Medical Service Incentive Act of 2006 (H.R. 5607). (Representative Kuhl is also a co-sponsor of the SERVE Act detailed above.) The bill allows for a $2,000 refundable federal tax credit for individuals who are active members of volunteer fire departments and emergency medical service organizations. The tax credit will help localities retain volunteers while providing an incentive for recruiting future volunteers. In order to be eligible for the credit, an individual must be an active member of a qualified volunteer fire department at all times during the taxable year.

Currently, this legislation has no cosponsors and is pending before the House Ways and Means Committee.

H.R. 5355, Volunteer Firefighter Recruitment and Retention Act of 2006

On May 11th, Representative Melissa Hart (R-PA) introduced the Volunteer Firefighter Recruitment and Retention Act of 2006 (H.R. 5355). The legislation amends the Internal Revenue Code of 1986 to allow volunteer firefighters with eight or more years of service to receive a $1,500 tax credit. A volunteer who has completed three or more years of service will receive a $1,000 tax credit.

This legislation is pending before the House Ways and Means Committee and has no cosponsors.

Volunteer firefighters are integral to public safety in towns and townships. NATaT strongly supports these proposed laws, introduced by congressional members from NATaT member states, that would provide appropriate incentives and protections for the men and women who volunteer to serve their local communities through volunteer fire companies. NATaT has signed a Memorandum of Understanding with the National Volunteer Fire Council that will, among other things, promote cooperation between our associations in the effort to secure passage of legislation for volunteer first responders.

TELECOMMUNICATIONS (NATIONAL CABLE FRANCHISING)

Senate Commerce, Science and Transportation Committee Chairman Ted Stevens (R-AK) acknowledged that the telecommunications legislation he has championed for more than a year is unraveling. He stated that net neutrality was the most hotly debated portion of the communications bill and is responsible for holding up the bill. The Senate version of H.R. 5252 was approved by the Senate Commerce, Science and Transportation Committee on June 28th. The House passed its much narrower version of the bill in early June.

Floor time for the Senate bill has not yet been scheduled and will not occur until the sixty votes needed to overcome any “holds” placed on the bill are obtained. Currently, only ten more votes are needed.

Key members of the Senate Commerce, Science and Transportation Committee have advised The Ferguson Group that as the calendar moves on, it is increasingly unlikely that floor time will be scheduled for the Senate telecom bill in the remaining days of the 109th Congress. Therefore, the chances that a final bill will be negotiated by the House and Senate and signed into law before the end of the 109th Congress are slim. However, Committee staff has warned that there could be efforts to attach parts of the telecom legislation to other bills moving through Congress.

Local government organizations and associations are united in their opposition to this version of proposed telecommunications reform, because it does not contain adequate provisions ensuring that local governments will maintain full control over their local rights of way, and maintain their long-standing local franchise authority to derive appropriate revenue and other benefits from telecommunications companies operating in their communities. Small towns and townships have the additional concern that this proposed law does not require build-out of telecommunications infrastructure in rural, small, and under-served communities. NATaT joins with the U.S. Conference of Mayors, the National League of Cities and other organizations in calling for major improvements to this proposed act before it moves forward.