President Bush Signs Pension Protection Act into Law

WASHINGTON, Aug. 17 /PRNewswire/ -- Today, America's Blood Centers (ABC) applauded President Bush's signing of Pension Protection Act of 2006 (H.R. 4), which contains a provision exempting independent, community-based blood centers from paying the heavy-vehicle use tax and excise taxes on fuel and tires used in the collection and transport of blood and on telephones used in recruitment efforts.

When the provision goes into effect on January 1, 2007, community blood centers may save up to $1 million a year on costs associated with running mobile drives and the telerecruitment of donors.

The President's action today culminates a four-year effort by America's Blood Centers to obtain the exemption, which is already enjoyed by the American Red Cross blood program. ABC appreciated the American Hospital Association's support for extending the exemption to community blood centers. ABC CEO Jim MacPherson noted the impact this provision will also have on hospital patients.

"This is a major win for blood centers, but even more significant for hospital patients who will now be treated more fairly when asked to pay for the blood products they receive," said ABC CEO Jim MacPherson.

"We applaud those members of Congress who supported community blood centers by ensuring this important provision was included in the bill," said ABC President Merlyn Sayers, MB, BCh, PhD, who attended today's signing with ABC COO William Coenen. "ABC particularly thanks Congressional conferees, especially Ways & Means Chairman Rep. Bill Thomas (R-CA) and Finance Chairman Sen. Chuck Grassley (R-IA). We also express our gratitude to Ways & Means Committee Members Representatives Devin Nunes (R-CA), Jim McCrery (R-LA) and Phil English (R-PA), for their tireless efforts in pushing this legislation forward."

ABC also praised Representatives Roy Blunt (R-MO) and Harold Ford (D-TN), and Senator Rick Santorum (R-PA) for their leadership on the charitable provisions.

The Pension Act tightens controls on companies that fall behind in their contributions to defined benefit plans, and contains some pension relief for several major airlines. It passed in the House with a 279-131 vote in late July, after which, it was sent to the Senate for debate and a vote, where it passed by a vote of 93 to 5 on August 3.

ABC member Houchin Community Blood Bank lies in Rep. Thomas' district. Houchin CEO Greg Gallion gave Chairman Thomas high marks for his long-standing commitment to the community of Bakersfield, Calif.

"The provision included in the bill signed into law today represents a tangible benefit to my blood center and my community," said Mr. Gallion. "This provision will enable community blood centers to spend their already slim funding where it is really needed -- in recruiting blood donors and ensuring communities across this country have adequate blood supplies."

The Joint Tax Committee estimates the cost of the blood center provision at roughly $1 million per year through 2016. Fuel excise taxes made up the lion's share of the tax burden on blood centers, with the revenue going into the federal Highway Trust Fund.

About ABC

Founded in 1962, America's Blood Centers is North America's largest network of community-based blood programs. Recognized by the US Congress for its critical work in patient care and disaster preparedness and response, the federation of 78 blood centers together operate more than 600 collection sites in 45 U.S. states and Canada, providing half of the US, and all of the Canadian volunteer donor blood supply. These blood centers serve an area with more than 180 million people and provide blood products and services to more than 4,200 hospitals and health care facilities across North America. ABC's U.S. members are licensed and regulated by the U.S. Food & Drug Administration. Canadian members are regulated by Health Canada.