Washington Update

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Washington Update 24th Annual Airport Business
Diversity Conference June 2, 2008 Indianapolis,
IN
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• Key Policy, Legal and Regulatory Issues
• Future Challenges for Airports

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• Monica Hargrove Kemp, Esq.
• General Council, ACI-NA
• Brad Mims
• Sr. Business Development Manager
• Parsons Brinkerhoff
• William (Bill) Kirk, Esq.
• General Counsel, AMAC
• Partner, KL Gates, LLP

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• Legislation Moving Through Congress

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• H.R. 2881 and S.1300
• Bills would authorize federal funding for the FAA
  and its programs for Fiscal years 2008-2011
• Make policy changes to FAA programs
• AIP
• Fees for Services
• Air Traffic Control System
• Air Service
• PFCs

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H.R. 2881 House FAA Reauthorization Bill

• Provide for uniform certification training
  for those involved in the certification of
  airport concessions
• Provide for a third party to implement the
  uniform certification training program and
• Provide for the completion of a report on the
  results of the uniform certification training
  program not later than 24 months from the date
  the bill is enacted into law.

Status Passed House (267-151)
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S. 1300 Senate FAA Reauthorization Bill

• Would establish a formal, structured
  certification training program for the airport
  concessions disadvantaged business
  enterprise program and
• Appoint 3 additional staff to implement the
  programs of the airport concessions
  disadvantaged business enterprise initiative.

Status Reported Out Of Commerce Committee,
Under Consideration By Full Senate
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H.R. 3867 House Small Business Contracting
Program Improvements Act

• Applicable to the SBA 8(a) Program
• Updates the threshold entry-level personal net
  worth cap from 250,000 to 550,000. This is
  intended to account for decades of inflation that
  has occurred since entry level cap was first
  established and
• Eliminates the 750,000 PNW cap for continuing
  8(a) program eligibility. In this regard, the
  legislation reforms the 8(a) program so that a
  firm certified as a DBE retains that
  certification for the duration of the businesses
  matriculation through the program.

Status Passed By The House (334-80), Under
Consideration By Senate
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H.R. 3867 demonstrates House of Representatives
recognition that personal net worth (PNW)
standards that fail to consider inflation and
market factors should be reformed.
Particularly out of date is the net worth
limitation that prohibits owners of 8(a)
companies from having a net worth of over
250,000. This nearly 20 year old ceiling
severely inhibits the ability of the owner to
raise capital or even purchase necessary
equipment. Though it may seem adequate when
contemplating the wealth of a private citizen,
the fact is that business owners require more
access to capital than others to be able to
maintain and grow their businesses. Further,
lifting the PNW cap once a company is approved
into these programs will promote growth and
expansion for program participants. It removes
the current disincentive to expand. H.R. Rpt.
No. 110-400, at 7, 20 (2007). (Emphasis added).
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• Legal and Regulatory Environment
• REFRESHER

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• State Anti-Affirmative Action Referenda new
  tactic by opponents of Affirmative Action and DBE
  programs in government contracting

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• American Civil Rights Foundation v. Port of
  Oakland
• Associated General Contractors v. Broward County
  Florida
• Additional Legal Challenges to individual Airport
  DBE programs?

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• PNW Issues Potential Influence of H.R. 3867
• Certification Procedures, Training, and
  Interpretation (H.R. 2881 S. 1300 if passed)
  AMAC Sponsored Training
• Guidance on Joint Ventures
• DBE Size Standard Modifications
• Guidance on Car Rentals

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• Policy Priorities and Future
• Challenges for AMAC and Airports

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• Findings Supporting The Continuing Need For The
  Airport DBE Program
• Tools To Streamline The DBE Program Eligibility
  Process, To Reduce Unwarranted Burdens On DBE
  Firms And Requirements For Certification Training
  And Reciprocity
• Upward Adjustment And Indexing Of The Personal
  Net Worth Standard Adoption Of Program Rules
  Based On Empirical Data And Grounded On Well
  Founded Business Principles
• Document The Economic And Social Impact Of The
  Airport DBE Program

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• FAA Reauthorization -- Enacting a Multi-year bill
• Tools for Financing Needed Capital Improvements
• Effective and Affordable Security Policies and
  Procedures for Passengers and Cargo
• Airline Consolidation
• Modernization of The Air Traffic Control System

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• 60 plus participants
• 40 plus Congressional Meetings
• Presentations from DOT and FAA, from
  Congressional Staff, and by Presidential
  Campaigns
• Coalition Building Luncheon
• Capitol Hill Reception

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Todays Agenda
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Evening Reception