The latest work for the Emergency Road Service Coalition of America (ERSCA) has focused on Congressional outreach, presenting to the ERSCA membership, and tracking the federal infrastructure process.

Work On The Hill

Last month, Congress was only in session eleven days of the entire month with the final vote set for September 30, giving members a full five weeks back home before Election Day. With Congress returning from recess and racing towards the midterm elections, many are eying the hot button issues they’ll be addressing this fall.

Lobbyist spent the month taking a deep dive into policy and determining actionable items to pursue over the coming weeks with an eye towards elections.

On September 21st, Michael attended ERSCA’s Trade Show and Annual Meeting in Las Vegas, Nevada. Michael overviewed current ERSCA priorities, the state of play in Congress for the remainder of this session, and outlined opportunities as we move towards the incoming 118th Congress in January:

Federal Legislation and Regulation

Resolution Supporting the Goals and Ideals of a National Move Over Law Day (SRES 734)
- 2023 FAA Reauthorization
- Federal Motor Carrier Safety Administration: Regulatory Comments Submitted in July
- Government Funding Update
- Implications of the Midterm Elections and impact on ERSCA priorities

State Legislation and Trends

- CO HB 22-1314: Which has been colloquially referred to as a “towing bill of rights.”
- Lawsuit against the city of Wilmington, DE – claiming the city is violating the Takings Clause by allowing tow companies to sell or scrap a vehicle without the value being credited to the owners’ parking ticket debt, which, in turn, amounts to an excessive fine

Emerging Industry Priorities

- $5000 policy limits for towing
- Catalytic Converter Laws

On October 4th, with the support of ERSCA and peer industry groups, Senator Blumenthal introduced a resolution supporting the goals and ideals of a National Move Over Law Day with Senator Braun (R-IN) as the Republican cosponsor. Sen. Blumenthal’s office has advised they are seeking bipartisan cosponsors to sign on in pairs to keep a balance between Republican and Democratic cosponsors. After meeting with Lobbyit to discuss supporting S. Res. 734, both Senator Fischer (R-NE) and Senator Tammy Duckworth (D-IL) signed on as cosponsors. Their cosponsorship gives the resolution strong bipartisan support from the Senate Committee on Commerce, Science, and Transportation.

Click here to see the complete ERSCA Federal Policy Report

Due to the harmful impact House Bill 487 would have on the towing industry, the Emergency Road Service Coalition of America (ERSCA), opposes this bill from being signed into law. 

The bill requires the Department of State Police (DSP) to make a tow list of qualified towing companies for use by the Department in carrying out police-initiated towing of disabled or abandoned commercial vehicles and to make certain rate sheets available to the public on request; and establishing certain requirements and procedures for the police-initiated towing of certain commercial vehicles at the direction of the Department.

Issue:

Currently, Maryland law requires DSP to establish and maintain a list of “authorized towing list.” Our concern, however, is HB 487’s price-setting authority that would ultimately cap the fees which tows may charge for police-initiated towing. While this shift is in and of itself an issue, the bill never states any semblance of transparency regarding these rate structures. By instituting price ceilings, absent a clear and cognizable rate structure, ERSCA and its members cannot support this bill with all the intended ambiguity left to be fleshed out until after its already law.

HB 487 would:

• Require a tow company applying to DSP’s tow list (for medium- and heavy-duty towing) to (a) submit a rate sheet that does not include per pound billing and (b) ban the use of per pound billing by October 1, 2023;
• Make each tow company’s required rate sheet available upon request; and
• Develop a process to receive, investigate, and adjudicate complaints from a vehicle owner or operator (or owner’s designee) against an authorized tow company regarding the police-initiated towing of a commercial vehicle, including a process to suspend or remove an authorized tow company from the tow list.

Additionally, HB 487 notes if there is a genuine dispute (never defined) as to the reasonableness (or amount) of the fees assessed, the authorized tow company must release the cargo immediately to the owner (or the owner’s authorized agent upon submission of: (1) proof of ownership if the cargo does not belong to the transportation company; or (2) if the cargo belongs to the transportation company. Most importantly, HB 487 requires the tow to release the vehicle to the owner (or authorized agent) upon payment of only 20% of the invoice by the vehicle owner or operator.

Small Business Effect:

Under the bill, DSP requires a tow company applying to the department’s tow list to ban the use of per pound billing by October 1, 2023. Moreover, during the application process to become an authorized tow company under HB 487, towing companies that employ if per pound billing would be viewed unfavorably in their application process. Lastly, other provisions in the bill (e.g., the requirement to release a vehicle or cargo prior to full payment under certain circumstances) would require tows to release the vehicle if 20% of the valued tow is paid.

If this bill is signed into law, it will be no time until other states begin to pass equally onerous laws that affect our industry. Please call Governor Hogan at (410) 974-3901 and request that he veto HB 487!

Work On The Hill
December was holiday season on the Hill with most offices closing and staffers heading home. Nevertheless, Lobbyit remained active and maintained a productive presence on the Hill meeting with offices and scheduling meetings for the New Year.

Through the month of November, Lobbyit began an aggressive outreach campaign on the Hill targeting members of the highway subcommittees in the House and Senate. The goal of the meetings has been to introduce ERSCA to influential and relevant Members and promote ERSCA policies.

The meetings were all incredibly positive and have included:

Sen. Kevin Cramer (R-ND): Senate Environment and Public Works Subcommittee on Transportation and Infrastructure (Ranking Member); and

Rep. Rodney Davis (R-IL): House Transportation and Infrastructure Subcommittee on Highways and Transit (Ranking Member)

Rep. Davis’ office was not aware that the Van Hollen amendment had unsuccessfully been added to the infrastructure bill. The Congressman’s Legislative Director was concerned and offered to monitor this issue closely and alert Michael of any indications that it may be added to the reconciliation bill or another standalone bill to be referred to the Subcommittee on Highways and Transit.

We have additional scheduled meetings over the coming weeks with committee members and will provide further updates.

On December 3, 2021, Lobbyit met with ERSCA to discuss a potential federal PAC formation. The meeting had two primary agenda items included: (1)
Who would be appointed treasurer; and (2) What depository account would be created for the PAC? Additionally, Lobbyit briefed the ERSCA team and answered questions on general formation and functioning of a federal PAC, as well as legal requirements for individual member PAC contributions.

On December 14, 2021, Lobbyit and ERSCA met again to discuss both the PAC formation, as well as the SCRA program. Lobbyit will continue outreach to the Armed Services Committee and update ERSCA on SCRA. On ERSCA’s PAC formation, Lobbyit will remain in a holding pattern until a final determination on its creation is made.

Agency Outreach
Michael reached out to both the Department of Justice and the Department of Defense regarding the SCRA and the identification of service members vehicles prior to towing. The DOJ referred to a portal on the SCRA website that allows users to look up deployed service members. ERSCA will review this portal for comments and Michael will plan to share these comments with the House and Senate Armed Services Committees.

EDUCATIONAL CERTIFICATION

Lobbyit has reached out to DOT’s Office of Safety Programs to establish a contact and discuss the requirements for DOT to endorse their professional certification program. Lobbyit will be meeting with DOT to discuss further in early January.

Lobbyit has also contacted DOT’s FMCSA (Federal Motor Carrier Safety Administration) to discuss the process of appointing and ERSCA member to their Motor Carrier Safety Advisory Committee (MCSAC). Committee positions serve a 2 year term. Currently no positions are open, however Lobbyit will stay engaged with MCSAC to best position an ERSCA member for the next committee position that does open up.

Infrastructure Update
Now that Infrastructure Investment and Jobs Act (IIJA) has passed, the administration has moved forward with a focus on infrastructure
implementation. The White House intends to release policy guidance on the appropriations made through the IIJA over the next few weeks, with policy parameters targeted at financial oversight and reporting, labor, Made in America/Buy America, equity, climate and resilience, and environmental justice.

The topline numbers for the bipartisan Infrastructure Investment and Jobs Act (IIJA) are:
-Transportation: $284 billion
-Water: $55 billion
-Broadband: $65 billion
-Energy & Power: $73 billion
-Environmental remediation: $21 billion
-Western water infrastructure: $8.3 billion
-Resiliency: $46 billion

IIJA will direct $284 billion in above baseline spending toward all modes of transportation and $266 billion for other infrastructure sectors. However, the chairman of the House Appropriations Transportation, Housing and Urban Development Subcommittee is warning that implementation of last year’s massive bipartisan infrastructure bill could be held up if lawmakers don’t reach an agreement on FY22 spending. Lobbyit will continue to monitor the IIJA’s implementation and provide updates.

WHAT’S COMING NEXT
On Build Back Better, Sen. Joe Manchin (D-WV) reaffirmed his opposition from last month against the $1.7 trillion legislation and while Sen. Chuck Schumer (D-NY) has stated that negotiations are still ongoing, it appears that the momentum for BBB has come to a temporary standstill. For now, Senate Democrats have shifted their sights to voting rights and other priorities. Lobbyit will continue to monitor the BBB negotiations and provide updates.

2022 MIDTERMS ELECTION PREVIEW
26 House Democrats are not seeking reelection in 2022. And while there’s a lot of chatter about the number itself, it’s rarely accompanied by more detail about where the members are heading.

Eighteen House Democrats are retiring and not seeking another office:

Reps. Ann Kirkpatrick (Ariz.), Filemon Vela (Texas), Cheri Bustos (Ill.), Ron Kind (Wis.), John Yarmuth (Ky.), David Price (N.C.), Mike Doyle (Pa.), Jackie Speier (Calif.), G.K. Butterfield (N.C.), Eddie Bernice Johnson (Texas), Peter DeFazio (Ore.), Alan Lowenthal (Calif.), Stephanie Murphy (Fla.), Lucille RoybalAllard (Calif.), Albio Sires (N.J.), Bobby Rush (Ill.), Brenda Lawrence (Mich.) and Ed Perlmutter (Colo.).

Eight House Democrats are leaving to run for another office. Half are running for a seat in the Senate and two are running to be their state’s governor.
-Rep. Tim Ryan (Ohio) is running for Senate.
-Rep. Charlie Crist (Fla.) is running for governor.
-Rep. Val Demings (Fla.) is running for Senate.
-Rep. Conor Lamb (Pa.) is running for Senate.
-Rep. Karen Bass (Calif.) is running for mayor of Los Angeles.
-Rep. Anthony Brown (Md.) is running for attorney general of Maryland.
-Rep. Peter Welch (Vt.) is running for Senate.

Rep. Tom Suozzi (N.Y.) is running for governor.

Eleven House Republicans are not seeking reelection. Of these 11, seven are seeking another office.

Congressional make-up in 2022 is also poised to change. A total of twenty-six states have recently finished redrawing their congressional maps. The surprising good news for Democrats: on the current trajectory, there will be a few more Biden-won districts after redistricting than there are now — producing a congressional map slightly less biased in the GOP’s favor than the last decade’s. The bad news for Democrats is that current projections show that won’t be enough to save their razor-thin House majority (currently 221 to 212 seats).

The far more dramatic effect of 2022 redistricting could be the rise in the number of hyper-partisan seats at the expense of competitive ones. So far in completed states, the number of single-digit Biden and Trump seats has declined from 62 to 46 (a 26 percent drop). That means a House even less responsive to shifts in public opinion, with more partisan districts where candidates’ only electoral incentive is to play to a primary base.

Bills by Last Status and Position
However, it’s still too early to render a final verdict on redistricting and its impact for the 2022 election cycle. There are still 16 states that aren’t complete (or near-complete), not counting the handful of states with high-stakes litigation pending.

Lobbyit will continue to monitor the 2022 midterms and provide updates as we approach election day.

STRATEGY

Lobbyit has engaged with relevant Senate offices to continue to reinforce support for ERSCA’s policy goals throughout the infrastructure negotiations.

Lobbyit will continue outreach to Senate offices to ensure ERSCA-friendly policies remain a priority both on the Hill and pertinent agencies.

BUDGET UPDATE

FY22 Update

Government funding runs out February 18, 2022, and the federal government is already more than three months into the new fiscal year. Therefore, with no broader agreement immediately on the horizon, we believe there is potential that Congress will have to settle for a stopgap continuing resolution (CR) to fund all federal agencies through Sept. 30, 2022, which would be unprecedented. We have high confidence that Congress will act to ensure that there is no shutdown and will continue to monitor the FY22 appropriations process.

FY23 Update

The White House appears to be aiming for release of President Joe Biden’s fiscal 2023 budget in March, a month after the statutory deadline, which is the first Monday in February. It’s also possible release of the budget could be further delayed either by an inability to reach a deal on FY22 appropriations or action on the reconciliation bill (HR 5376) under consideration in the Senate.

Holding off on the budget release until a final FY22 appropriations bill is enacted provides the advantage of being able to build the proposed budget off a final spending agreement for the prior year. If lawmakers are unable to reach agreement on a fiscal 2022 omnibus before the current stopgap funding extension expires on Feb. 18, then it’s possible Biden will want to wait until an appropriations deal is reached before unveiling his budget.

Looking at ERSCA’s policy and regulatory priorities, we’ll be tracking how these specific Congressional Committees allocate their assigned budgets for the bill in the coming weeks and engage any opportunities that could potentially benefit ERSCA.

The Emergency Road Service Coalition of America (ERSCA) has hired the federal lobbyist team at Lobbyit to focus on Congressional outreach in order to ensure ERSCA’s interests are known and accounted for during ongoing negotiations on federal legislation and regulations, including the proposed Van Hollen amendment that would allow states to regulate all aspects of towing.

Work On The Hill

This month ERSCA’s federal lobbyists began an aggressive outreach campaign on the Hill targeting members of highway subcommittees in the House and Senate. The goal of the meetings has been to introduce ERSCA to influential and relevant Members and promote ERSCA policies. The meetings were all incredibly positive and so far in the month of October have included:

Sen. Kevin Cramer (R-ND): Senate Environment and Public Works Subcommittee on Transportation and Infrastructure (Ranking Member); and

Rep. Rodney Davis (R-IL): House Transportation and Infrastructure Subcommittee on Highways and Transit (Ranking Member)

We have additional scheduled meetings over the coming weeks with committee members and will provide further updates as warranted.

Infrastructure Bill Update

Close to midnight on November 5, after months of negotiations, the House passed the $1 trillion-plus bipartisan infrastructure bill. The vote was 228-206 with 13 Republicans crossing the aisle to vote with Democrats.  ERSCA is proud to report that the Van Hollen amendment was not included in this final Infrastructure Investment and Jobs Act (IIJA)  bill. Lobbyit understood this was a priority for ERSCA members and its work helped ensure the amendment was not included.  President Biden signed the bill on November 15th.

The bipartisan measure — which passed the Senate back in August by a 69-30 after months of negotiations — will fund an historic investment in the nation’s roads, bridges, airports, railroads and other aging infrastructure. The bipartisan infrastructure legislation will provide $973 billion over five years from FY 2022 through FY 2026, including $550 billion in new investments for all modes of transportation, water, power and energy, environmental remediation, public lands, broadband and resilience.

The topline numbers for the infrastructure bill are:

Transportation: $284 billion

Water: $55 billion

Broadband: $65 billion

Energy & Power: $73 billion

Environmental remediation: $21 billion

Western water infrastructure: $8.3 billion

Resiliency: $46 billion

What’s Coming Next: Build Back Better Bill & Reconciliation

Now that the bipartisan IIJA has been signed by President Biden, the focus turns to the Build Back Better bill and the reconciliation process. Lobbyit has been monitoring the reconciliation bill for possible amendments, similar or identical to the Van Hollen amendment.

The week of October 25th both the White House and House Democrats released similar frameworks for the reconciliation bill but negotiations on a final framework continue. At this point, progress in negotiations has still not been convincing enough to overcome objections on items such as paid family leave from Senate Moderates, like Senator Joe Manchin. The biggest sticking points have been focused on the state and local tax deduction, climate change provisions, paid family leave, prescription drug pricing, and immigration. While Speaker Pelosi continued to push committee chairs to release legislative text and prepare to bring both the bipartisan Senate Infrastructure Deal and the reconciliation bill to the floor, many lawmakers believe the debate could drag into December.

On November 4, House Democrats added their manager’s amendment to the reconciliation bill, which did not include any language similar to the Van Hollen amendment. Lobbyit will continue monitoring as the reconciliation bill advances next to the Senate.

On November 5, progressives agreed to vote on the infrastructure bill before the reconciliation package in exchange for a commitment from five centrist Democrats that they would vote for the reconciliation package as soon as they get the CBO score but in no event later than the week of November 15th.

The reconciliation bill will be dramatically larger, and we’ll continue to monitor as the committees use their budget resolution instructions to piece together this bill. Below are the key tax provisions currently being contemplated within the bill:

The revised reconciliation bill’s significant business and international provisions include:

A new 15% corporate profits minimum tax on large corporations; and

A new 1% tax on corporate stock repurchases, limitations on interest deductions of international financial reporting groups, modifications to inbound and outbound international provisions.

Individual tax increase provisions in the revised bill include:

A surtax on individual income above $10 million a year;

Expansion of the net investment income tax; and

Limitations on qualified small business stock exclusions, wash sale rules on   cryptocurrency, and continuation of a temporary current-law limitation on excess business losses.

The revised bill also DROPS key tax rate increase provisions of the Ways and Means bill, including proposals that called for:

A 26.5% top corporate income tax rate;

A 39.6% top individual income tax rate;

A new 25% long-term capital gains and qualified dividend tax rate;

(Carried interest) the 20% Section 199A deduction for pass-through income; and

The estate and gift tax exemption, grantor trusts, and retirement savings accounts.

Ongoing Strategy

On behalf of ERSCA, Lobbyit has engaged with relevant Senate offices to continue to reinforce support for ERSCA’s policy goals throughout the infrastructure negotiations.

Lobbyit will continue outreach to Senate offices to ensure ERSCA-friendly provisions remain in the Build Back Better bill.