COMMITTEE REPORT

OHIO LOSES APPEAL IN TAX-INCENTIVE CASE

On January 20, the 6^th Circuit Court of Appeals denied a request to re-hear a case in Ohio relating to tax incentives offered to businesses as mechanisms for economic development in the state. The 3-judge panel of the Court ruled that they were unconstitutional on the grounds of interfering with interstate commerce. The case, Cuno v. DaimlerChrysler, could have implications for similar tax incentive programs in Kentucky, Tennessee and Michigan, which are also under the 6^th Circuit jurisdiction. The remaining options are to appeal to the U.S. Supreme Court or to seek legislative remedy in Congress. NCSL officers for the Economic Development, Trade & Cultural Affairs and Budgets & Revenue Committees plan to hold a joint session on Cuno at the Spring Forum.

CANADIAN, JAPANESE BEEF TRADE HEADLINE SECRETARY’S CONFIRMATION

On December 29, the USDA announced the release of a 500-page rule for the conditions of importing Canadian beef, to take effect on March 7. However, in the following two weeks, the Canadian Food Inspection Agency announced the discovery of two new cases of BSE in Alberta. The U.S. Senate Agriculture Committee, in its confirmation hearing for new Agriculture Secretary Michael Johanns, expressed concern about Canadian beef imports and U.S. beef exports to Japan, and plans to hold a hearing on February 3 to discuss the effect of BSE on agriculture trade.

USTR’S ZOELICK NOMINATED TO DEPUTY SECRETARY OF STATE POST

President Bush announced on January 7 that he would officially nominate U.S. Trade Representative Robert Zoellick as the top deputy to Secretary of State designate Condoleezza Rice. Zoellick will succeed Richard Armitage, who resigned after Colin Powell announced his resignation effective on Rice’s Senate confirmation. Zoellick was previously at the State Department as Undersecretary of State for Economic Affairs during the administration of the first President Bush. President Bush said he will quickly look for a new trade representative. No candidates for that position have been officially announced.

NLIHC “OUT OF REACH” HOUSING REPORT RELEASED

The National Low Income Housing Coalition (NLIHC) released its “Out of Reach” report for 2004, which reports a comparison between the national housing wage and federal and state minimum wage. The housing wage is defined as the amount a full-time worker must earn to afford the rent on a modest two-bedroom home while paying no more than 30% of that income on housing. The 2004 calculations find that no affordable housing is available to low-income workers in any community, county or state in the U.S. The NLIHC press release is online at www.nlihc.org/oor2004/pressrelease.htm.

HOUSING CONFERENCE MATERIALS AVAILABLE ONLINE

The Fannie Mae Foundation has released online the multimedia presentations from the 2004 Annual Housing Conference, held in November in Washington, D.C. The conference, "States of Change: Innovative Policy and Investments for Stronger Communities," featured a variety of subjects relating to affordable housing and community development. Governors Edward Rendell of Pennsylvania and Mitt Romney of Massachusetts were the featured speakers; they held a dialogue highlighting how housing policy fits into economic development as a whole. The multimedia presentations from the Conference and the alumni event are now online at www.knowledgeplex.org/mmedia_preview.html?id=63474.

SPRING FORUM SCHEDULED IN WASHINGTON, D.C.

The Economic Development, Trade & Cultural Affairs Committee will next meet at the Spring Forum, held April 13-16 in Washington, D.C. Committee officers plan to meet with members of Congress on a variety of NCSL lobbying issues. They also anticipate holding discussions on trade issues, tax incentives for businesses and the recent Ohio federal court case, and other issues that arise during the 2005 state legislative and congressional sessions. Please see http://www.ncsl.org/ for updates on registration and lodging.