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Legislative and Political Update

Texas State Legislative Board Legislative Representatives Training

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Legislation

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S. 2889

S. 2889, A bill to reauthorize the Surface Transportation Board.

Introduced by Senator Jay Rockefeller on 12/16/09, and reported out by the Senate Committee on Commerce, Science and Transportation.

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S. 2889

The railroads fear that this bill will be tantamount to re-regulation and reduce their money-making ability because it protects shippers.

The legislation requires a Class I rail carrier to establish, upon rail customer request, reasonable bottleneck and terminal switching rates for single line movement or interline movement rail transportation over a bottleneck rail segment in which the carrier has market dominance

Authorizes the Board to require a Class I rail carrier (including any other rail carrier deemed appropriate) to make its terminal facilities available for use by another carrier in cases where it has market dominance in a terminal area.

Authorizes the Board to revoke class exemptions to rail carrier requirements to protect rail shippers from the abuse of market power.

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S. 2889 S. 2889 The bill proposes to make the STB an independent

government agency, removing it from U.S. Department of Transportation governance, and provide the board appropriations for fiscal years 2010 through 2014.

The legislation also would expand the STB from three commissioners to five; add a ninth voting member to the Railroad-Shipper Transportation Advisory Council; provide funding for an Office of Public Assistance, Government Affairs and Compliance that would be authorized to mediate disputes, monitor railroad operations and appoint a customer advocate to address shipper inquiries; and enable the STB to eliminate paper barriers.

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Health Care

The recently passed legislation expands coverage to an estimated 32 million more Americans.

The President signed H.R. 3590 on March 23, and signed H.R. 4872 on April 1.

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Health Care

The legislation contains the excise tax, with some changes.

Health insurance premiums in excess of $10,200 for individuals and $27,500 for families would be subject to the 40 percent excise tax, with increased thresholds for seniors.

Dental and Vision plans not included in taxable premiums

The tax would go into effect in 2018. The thresholds are indexed to the Consumer Price

Index (Urban areas).

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Health Care

The legislation also: Bans insurance companies from denying coverage to people with pre-

existing conditions. Individuals would have to have insurance by 2014 or pay a penalty, but

giving government subsidies to low income individuals. Bans insurers from excluding coverage for specific medical problems for

children with pre-existing conditions. Bans insurers from setting lifetime coverage limits for adults and kids. Allows adult children to stay on parent’s plans until the age of 26. Closes Medicare Part-D “donut hole” by giving seniors rebates, drug

company-discounts on brand-name drugs and federal subsidies and discounts for all drugs, and would gradually reduce the gap, eliminating it by 2020.

Individuals or small groups will be able to purchase insurance through exchanges

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Railroad Tax Credits

Several pieces of legislation amend the tax code to provide for railroad infrastructure tax credits. Among these are:

H.R. 1789 and H.R. 1806 H.R. 1806 has 74 co-sponsors thus far. These bills amend the Internal Revenue Code of 1986

to provide incentives to encourage investment in the expansion of freight rail infrastructure capacity and to enhance modal tax equity. It gives the railroads a 25 percent tax credit on qualifying infrastructure and locomotive properties. It can be used to finance PTC. It also extends the maintenance tax credit for shortlines.

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Employee Free Choice Act

Compromise legislation is being worked out. Supporters of the legislation are concerned about getting

cloture to bring the legislation to the floor for a vote and are considering using budget reconciliation as a way to get it passed in the Senate. Cloture requires 60 votes, but budget reconciliation only requires a simple majority of 51 votes.

The Employee Free Choice Act is built on three fundamental principles and labor believes any compromise should contain these principle: Workers need to have a real choice to form a union and bargain

for a better life, free from intimidation; We have to stop the endless delays; companies can't just stall to

stop workers' choice; There have to be real penalties for violating the law.

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Possible Legislation

An amendment to the Family and Medical Leave Act that would lower the threshold for hours worked for railroad operating crews. 2/3 of our members work in pools or on extra

boards. A percentage of these members do not meet the current threshold of hours worked (1250 hrs per year) to qualify for FMLA.

Our solution is to include hours available to work, deadheading and limbo time in the equation.

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Possible Legislation

Locking air brakes. We are looking for the appropriate

legislation to attach this to. We have had discussions with the House

Homeland Security Committee and T&I Committee and the Senate Commerce Committee.

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Possible Legislation

RSIA What are the problems you are

experiencing with the HOS changes? How could we fix these issues? Would a 10 hour call fix?

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Possible Legislation

Rail labor is working on a possible amendment to the Interstate Commerce Act to address the problems when states (and others) acquiring lines that are intrastate, but part of the interstate system, such as Florida, New Mexico and Massachusetts; and the creation of new lines crossing state borders but not connected to the general system of rail transportation like the proposed Anaheim-Las Vegas line.

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Political Update

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BLET-PAC

The BLET is encouraging all members to give at least $1 per month to the BLET-PAC.

If you are currently giving, please consider increasing your donation.

BLET-PAC makes contributions only to candidates who support the issues we support. Too often the labor movement has given money to politicians who once in office ignore our concerns.

BLET-PAC has always given to candidates who are our friends, but now plan to make them accountable.

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Key Election Dates

General: 11/2/10

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Governors Races

37 Governors Races nationwide. In these races, 18 are considered a toss-up

between the two parties; 8 Democratic candidates are favored; and 11 Republicans are favored.

In Texas, incumbent Republican Governor Rick Perry will face former Houston Mayor Bill White in the general election. Polling indicates that it will be a close race.

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Senate

Of the 36 races, Republicans will defend 19 seats to 18 for Democrats, including the special elections in Delaware and New York.

There are five open Republican-held seats: Florida (Martinez), Kansas (Brownback), Missouri (Bond), New Hampshire (Gregg) and Ohio (Voinovich).

Texas’s two Senators are not up for re-election in 2010. Senator Hutchison is up for re-election in 2012 and Senator Cornyn is up for re-election in 2014.

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House

District 1: Rep. Louie Gohmert (solidly Republican district) District 2: Rep. Ted Poe (solidly Republican district) District 3: Rep. Sam Johnson (solidly Republican district;

faces John Ligenfelder) District 4: Rep. Ralph Hall (solidly Republican district; faces

VaLinda Hathcox) District 5: Rep. Jeb Hensarling (solidly Republican district;

faces Tom Berry) District 6: Rep. Joe Barton (solidly Republican district; faces

David Cozaad) District 7: Rep. John Culberson (solidly Republican district) District 8: Rep. Kevin Brady (solidly Republican district; faces

Kent Hargett)

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House

District 9: Rep. Al Green (solidly Democratic district; faces Steve Mueller)

District 10: Rep. Michael McCaul (solidly Republican district; faces Ted Ankrum)

District 11: Rep. Mike Conaway (solidly Republican district; faces James Quillian)

District 12: Rep. Kay Granger (solidly Republican district; faces Tracey Smith)

District 13: Rep. Mac Thornberry (solidly Republican district) District 14: Rep. Ron Paul (solidly Republican district) District 15: Rep. Ruben Hinojosa (solidly Democratic district) District 16: Rep. Silvestre Reyes (solidly Democratic district;

faces Tim Besco)

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House

District 17: Rep. Chet Edwards (district leans Democratic) District 18: Rep. Sheila Jackson Lee (solidly Democratic

district) District 19: Rep. Randy Neugebauer (solidly Republican

district) District 20: Rep. Charlie Gonzalez (solidly Democratic district) District 21: Rep. Lamar Smith (solidly Republican district) District 22: Rep. Pete Olson (solidly Republican district; faces

Kesha Rogers) District 23: Rep. Ciro Rodriguez (solidly Democratic district) District 24: Rep. Kenny Marchant (solidly Republican district)

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House

District 25: Rep. Lloyd Doggett (solidly Democratic district; faces Donna Campbell)

District 26: Rep. Michael Burgess (solidly Republican district; faces Neil Durrance)

District 27: Rep. Soloman Ortiz (solidly Democratic district) District 28: Rep. Henry Cuellar (solidly Democratic district;

faces Bryan Underwood) District 29: Rep. Gene Green (solidly Democratic district;

faces Roy Morales) District 30: Rep. Eddie Bernice Johnson (solidly Democratic

district) District 31: Rep. John Carter (solidly Republican district) District 32: Rep. Pete Sessions (solidly Republican district;

faces Grier Raggio)

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Questions???