Issues update.

For a sizable coalition of associations, 2003's advocacy efforts on behalf of the association community might best be summed up as Operation Freedom to Fax. Across the better part of the summer, thousands of ASAE members took umbrage with the Federal Communications Commission's new regulations governing unsolicited fax advertisements, arguing that legitimate communication among associations and their members would be unreasonably hindered. After a tense waiting period, the FCC agreed to stay implementation of its new rules until January 1, 2005. ASAE and the coalition are now concentrating on getting the regulations withdrawn or preempted by new legislation.

Alongside this issue, a number of new concerns and recurring issues have surfaced on the association community's radar screen.

* ASAE and other nonprofit organizations have labored for several years to pass association health plan legislation that will make association-sponsored health plans easier to operate. This issue has become part of the Bush administration's six-point plan for maintaining positive momentum in the nation's economy.

* ASAE and others are also still advocating in favor of the Charity, Aid, Recovery, and Empowerment Act of 2003, a bill that, among other provisions, creates tax incentives for individuals and companies to encourage charitable giving.

* Associations that derive revenue from meetings and conventions are urging lawmakers to balance new visa, passport, and entry procedures enacted as part of homeland security measures with policies that promote growth in travel and tourism.

* Tax issues continue to warrant attention, as the Internal Revenue Service has promised further guidance on Internet and unrelated business income tax activities.

With the groundwork laid on many of these issues, associations could see legislative action early this year, with ASAE acting on behalf of the association community and lobbying on issues pertinent to all sectors of voluntary organizations. The strength of ASAE's advocacy efforts lies in its extensive grassroots network of involved, passionate members. ASAE looks forward to continuing its work of educating the Bush administration and Congress about the important role of associations in American society and how pertinent legislation affects nonprofit organizations and their ability to carry out critical missions. Through events such as American Associations Day, ASAE's annual legislative fly-in where members visit Capitol Hill and talk to congressional leaders about association issues, ASAE brings members of the association community together with legislators and administration officials and encourages new members and longtime association advocates to be involved in the public policy process, to confront issues that could potentially affect us all, and to help spread the Associations Advance America message to key opinion leaders.

Following is a brief review of the key issues ASAE is monitoring:

Association health plans. The Small Business Health Fairness Act of 2003, which would have allowed the formation of association health plans, passed the House by a wide margin last summer. However, the Senate version has yet to be acted on. Due to rising health care costs and increasing numbers of uninsured Americans, the Senate is likely to bring association health plan legislation to a vote in 2004.

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A recent U.S. Census Bureau poll shows a drop, from 63 percent to 61 percent, in the number of Americans covered by employer-sponsored health-care coverage. Congressional leaders attribute the decline to accelerating costs and lack of affordable coverage. The Bush administration views association health plans, which would allow association-sponsored insurance programs to operate under one set of governing regulations instead of the mandates from several states, as a reasonable solution to the problem of uninsured Americans. ASAE is part of a broad association coalition supporting association health plan legislation.

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Charitable giving. Although both the Senate and House passed the Charity, Aid, Recovery, and Empowerment Act of 2003, a holdup in the Senate stalled the legislation's final passage. Republican Senators twice attempted to move the act to conference committee through a unanimous consent agreement, but the bill was blocked on both occasions, with the debate centering on whether to use revenue offsets for the charitable-giving bill.

ASAE signed on to a letter with nonprofit philanthropy group Independent Sector, Washington, D.C., in late October urging Congress to move forward with the act, which would, among other provisions, allow nonitemizers to deduct from their taxes charitable cash contributions exceeding $250. ASAE will continue to advocate in favor of this bill in 2004.

Do-not-fax regulations. In July, the FCC amended the existing regulations implementing the federal Telephone Consumer Protection Act of 1991. While most of its rule making pertained to the new national do-not-call registry and did not affect the nonprofit community, the FCC also changed the rules governing the transmission of unsolicited fax advertisements. Specifically, they did away with the established business relationship provision, which had, to this point, protected associations' fax communication with members. As written, the new rules would have placed a severe administrative burden on associations and other businesses by requiring them to possess written consent from each recipient before sending commercial faxes.

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Associations mobilized quickly in response to this issue. ASAE, on behalf of hundreds of organizations, filed two petitions with the FCC--one seeking a stay of the rules and the other asking for emergency clarification of the rules. More than 1,500 ASAE members signed on to the petitions; many other organizations, including the U.S. Chamber of Commerce, National Association of Manufacturers, and National Restaurant Association, all based in Washington, D.C., filed their own petitions.

Among other opposition to the rules, ASAE mounted a grassroots effort to make members of Congress aware of how the new rules could affect nonprofit organizations and other businesses, and began a series of meetings with FCC commissioners and lawmakers to emphasize that the new reading of the 1991 statute amounted to an overreach by the commission.

One week before the regulations were to take effect, the FCC granted a stay of the new rules until January 1, 2005, and suspended the new limitations it had placed on the duration of an established business relationship. The current fax regulations now mirror those that existed before the FCC adopted its widely unpopular changes in early July. However, ASAE and the association community realize that the FCC stay is merely a reprieve and are now focused on having the FCC fax regulations completely withdrawn or preempted by new legislation.

Do-not-spam legislation. The House and Senate have passed, and at press time the president was expected to sign, legislation restricting unsolicited commercial e-mail, or spam. This federal spam legislation, which targets the most offensive commercial e-mailers, including those who peddle pornography and fraudulent business opportunities,

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* makes sending unsolicited commercial e-mails unlawful;

* requires senders to indicate in the subject line if an e-mail is an advertisement;

* institutes severe penalties for entities that use deceptive information or that use bogus or fraudulently obtained return e-mail addresses;

* requires that recipients of unsolicited commercial e-mails be given the opportunity to remove themselves from the sender's list; and

* authorizes the Federal Trade Commission to establish a do-not-spam registry. When signed into law, the federal spam legislation will preempt all existing state laws. Association advocacy efforts are under way to ensure that the definition of commercial e-mail used in the implementation of this legislation is sufficiently narrow so as not to include e-mail communication among nonprofit organizations and their members.

Tax issues. ASAE President and CEO John H. Graham IV met with Internal Revenue Service Exempt Organization Director Steve Miller last November to discuss a number of issues, including the agency's plans to increase its enforcement presence in the tax-exempt area; Form 990 electronic filing; and the market segment studies and reports on social clubs, business leagues, and labor organizations that the agency expects to release early this year.

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Travel issues. ASAE continues to monitor reforms to U.S. visitor entry requirements and their potential effect on travel and tourism. Advocates for the U.S. travel industry, including the Travel Industry Association of America, Washington, D.C., have urged the adoption of policies that foster increased national security while boosting America's travel and tourism sector. ASAE also looks to work with Congress to restore to 100 percent the deductions for business meals and spousal travel, which could aid attendance at association meetings and conventions.

For more information on these and other public policy issues of relevance to nonprofit organizations, call 202-626-2703 or e-mail [e-mail].

BARBARA S. BELMONT, CAE