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PREMIUM CONVERSION

On February 16, Rep. Tom Davis (R-Va.) introduced legislation (H.R. 1110) to amend the tax code to allow civilian and military retirees to pay their FEHBP and TRICARE supplemental premiums on a pretax basis with pretax dollars. In addition, the bill would allow for a tax deduction for TRICARE supplemental premiums or enrollment fees. Premium Conversion would provide a federal retiree with hundreds of dollars in annual tax savings. Currently, only working federal employees enjoy this benefit. Sen. John Warner (R-Va.) introduced identical legislation (S. 773) on March 6. In the House, the bill was referred to the Armed Services Committee, Subcommittee on Military Personal; in the Senate, the bill was referred to the Finance Committee.

FEDERAL EMPLOYEE HEALTH CARE BENEFIT PLAN

House Majority Leader Steny Hoyer (D-Md.) reintroduced legislation (H.R. 1256) on March 1 to increase the government's share of Federal Employee Health Care Benefit Plan (FEHBP) premiums from 72 percent to 80 percent, which would be more in line with what most private and state employers pay. If passed, the bill would save the average federal employee $509 annually in health costs. “As the cost of health care has exploded, the strain on every federal employees pocket has gotten worse,” said Hoyer. “This strain has been further exacerbated in recent years by inadequate pay adjustments for the federal workforce, including last year’s insufficient increase of 2.2 percent – the lowest in 20 years. This legislation will help take the bite out of rising health care costs and make it easier for federal employees to afford quality health care for themselves and their families.” Rep. Frank Wolf (R-Va.) joined Hoyer as an original cosponsor. “Federal employees are the lifeblood of this nation, and affordable health benefits are vital to recruiting and retaining the best and the brightest workforce to keep our government running efficiently,” said Wolf. “This legislation will make the government more competitive in the marketplace for employees by bringing the federal government’s premium contribution closer to what is offered in the private sector. This is critically important, now more than ever, given the crucial role federal employees have in combating terrorism and in providing other essential services.”

FAA’S REAUTHORIZATION PROPOSAL

The FAA’s reauthorization proposal, “Next Generation Air Transportation System Financing Reform Act of 2007” (H.R. 1356), was introduced on March 6 at the request of the White House. “Protocol dictates that we honor this request, even if we disagree with the proposed legislation in part or in total,” said House Transportation and Infrastructure Committee Chair James Oberstar (D-Minn.). In the Senate, identical legislation (S. 1076) was also introduced by request on March 29 by Sen. Daniel Inouye (D-Hawaii). PASS has expressed concern to members of Congress through testimony and lobbying efforts about several provisions contained in the FAA’s proposal, including the Facilities Realignment and Consolidation (FRAC) Program; the FAA transfer of ownership, operating and maintenance responsibilities to smaller airports; delegating out responsibility for the development, testing and maintenance of flight procedures; and the future funding of the FAA. Both the House and Senate are expected to introduce their proposals for FAA reauthorization before the Memorial Day recess. PASS will continue to work closely with members of Congress to ensure that PASS’s legislative priorities are addressed.

PASS TO TESTIFY ON MODERNIZATION

On Wednesday, May 9, PASS President Tom Brantley will testify before the House Transportation and Infrastructure Committee, Subcommittee on Aviation, on “The Future of Air Traffic Control Modernization” to discuss the importance of PASS involvement in modernization, the need for sufficient technical staffing and training, and the FAA’s reauthorization proposals. “We are grateful to Congress for providing PASS the opportunity to express the concerns of our technical workforce and to reiterate the importance of their role in the success of modernizing and maintaining the National Airspace System,” said Brantley.

NEW SECURITY STANDARDS FOR AIRCRAFT REPAIR STATIONS INTRODUCED IN THE HOUSE

On Tuesday, April 20, Reps. Jim Langevin (D-R.I.), Bennie Thompson (D-Mass.) and Sheila Jackson Lee (D-Texas) introduced legislation (H.R. 1981) that would require the Transportation Security Administration (TSA) and the FAA to issue regulations establishing security standards for foreign repair stations performing maintenance on U.S. aircraft.

H.R. 1981 seeks to amend Title 49 of the United States Code to direct the TSA to recognize a two-and-half year old congressional mandate to issue and enforce security rules for third-party repair facilities that work on U.S. aircraft. The bill would restore higher standards and stronger enforcement of aircraft repair work performed overseas by forcing overseas repair stations to adhere to “comparable security standards” already in place at U.S. repair facilities. In addition, the legislation would impose background checks on employees of contract repair stations in the same manner as those imposed on air carrier employees. 

Rep. Dan Lungren (R-Calif.), ranking member of the House Committee on Homeland Security, Subcommittee on Transportation Security and Infrastructure Protection, said the bill reflects “bipartisan concern and a bipartisan approach” to aviation security. “Despite the fact that we’ve given lots of attention to aviation security, it still remains one of our foremost homeland security concerns,” he said.

In the aftermath of September 11, the increasing trend of outsourcing maintenance to third-party vendors has raised serious security issues. In 2003, the FAA and TSA were asked to cease operations at certain repair stations until security audits of the facilities could be conducted. At that time, the administration dismissed the request and instead Congress included a provision in the 2003 FAA Reauthorization Act (P.L. 108-176) requiring that TSA, in consultation with the FAA, issue final regulations governing domestic and foreign repair stations. Though these regulations were due in August of 2004, to date, no final or proposed rule has been issued by TSA. TSA is also required to conduct audits of foreign repair stations 18 months after security rules are finalized; however, since regulations have not been issued, audits have not begun despite Congressional directives.

In addition, H.R. 1981 states that if TSA does not issue final regulations 60 days after enactment, TSA must issue an order prohibiting the use of foreign repair stations certified for maintenance of U.S. aircraft. The bill would also change the deadline on security audits to nine months instead of the 18 months provided under current law. 

During the March 29 House hearing on “Oversight of Outsourced Maintenance” (see Legislative Update, March 30, 2007, or full testimony at www.passnational.org), PASS expressed serious concern over the regulations governing foreign repair stations. “It should go without saying that if a foreign repair station wants to work on U.S.-registered aircraft or any aircraft that operate in this country, those repair stations should be required to meet the same safety standards as domestic repair stations,” said PASS President Tom Brantley. H.R. 1981 was scheduled for markup in the subcommittee on April 24; however, action on this bill was postponed pending further hearings.