Congress Daily Options

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CongressDaily PM for Thursday, March 5, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: OBAMA LINKS ECONOMIC RECOVERY TO HEALTHCARE REFORM ...
> By George E. Condon Jr.
>
>
> President Obama took the first step today toward what he hopes will > be a
> major overhaul of health care in the United States, summoning 150 > lawmakers
> and stakeholders to the White House and assigning them a challenge > that has
> stymied more than one president in the last 100 years. But with 47 > million
> Americans without insurance and the system an ever-heavier burden on > the
> economy, he said, another effort is needed. "We have talked and > tinkered.
> We have tried and fallen short, stalled time and again by failures > of will,
> or Washington politics, or industry lobbying," he said.
>
> With lobbyists representing insurance, medical and corporate interests
> poised to protect their stakes in the system -- and many of them in > the
> East Room listening to him -- Obama said he understands why so many > are
> skeptical he can succeed 15 years after President Bill Clinton > failed. "Our
> inability to reform health care in the past is just one example of how
> special interests have had their way, and the public interest has > fallen by
> the wayside," he said. "And I know people are afraid we'll draw the > same
> old lines in the sand, give in to the same entrenched interests, and > arrive
> back at the same stalemate we've been stuck in for decades." Obama's > goal
> is to enact comprehensive health reform by the end of the year. Away > from
> the summit, leading congressional Democrats announced legislative
> timetables that kept that goal in mind. Senate Finance Chairman Max > Baucus
> announced plans for a June markup and said he and Health, Education, > Labor
> and Pensions Chairman Edward Kennedy agree that moving one > overarching bill
> is ideal. House Majority Leader Hoyer said this morning that he > wants to
> deal with health legislation before the August recess.
>
> Participants in Obama's summit included 32 members of the House, 23
> senators, eight "everyday Americans," and 82 stakeholders, including > the
> U.S. Chamber of Commerce, union leaders, Blue Cross and Blue Shield > and the
> American Medical Association. The stakes for the economy, Obama told > them,
> are high. "Medicare costs are consuming our federal budget. Medicaid > is
> overwhelming our state budgets," he said. He added that "skyrocketing
> costs" are a threat to getting the economy back on track. "Healthcare
> reform is no longer just a moral imperative, it is a fiscal > imperative,"
> the president said. "If we want to create jobs and rebuild our > economy,
> then we must address the crushing cost of health care this year, in > this
> administration." But while seeking coverage for all, he had reassuring
> words for those who are content with their existing care. "If you have
> insurance you like, you'll be able to keep that insurance," he said. > "If
> you have a doctor you like, you can keep that doctor. You'll just > pay less
> for the care that you receive."
>
>
> http://www.nationaljournal.com/congressdai...090305_7978.php
>
> -----
> HEALTH: ... AS CHAIRMAN BAUCUS LAYS OUT THREE-PART OVERHAUL PLAN
> By Anna Edney, with Kasie Hunt contributing
>
>
> The Senate Finance Committee will tackle universal health care in > three
> pieces as it prepares for a June markup of comprehensive legislation,
> Senate Finance Chairman Max Baucus said today after informing panel > members
> of the strategy. The committee's work will be broken up into delivery
> system improvements, coverage and cost containment. Each topic will > feature
> a public roundtable discussion among members and experts, beginning > in late
> April with delivery system improvements, moving to coverage in early > May
> and ending later that month with cost containment issues, Baucus said.
> Staff will comb through specifics on each topic with members in > preparation
> for the markup, although Baucus said he was unsure whether the > sessions
> would be public. He is attempting to coordinate with Senate Health,
> Education, Labor and Pensions Chairman Edward Kennedy. The pair will > meet
> Friday to discuss their universal healthcare strategy. Kennedy has > said he
> wants the two committees to produce one comprehensive healthcare > bill, and
> Baucus confirmed today the one-bill approach is his preference.
>
> Senate Finance ranking member Charles Grassley praised Baucus' plan. > "The
> process is worked out in a way that I think is going to encourage > members
> to participate," Grassley said. He acknowledged members likely will
> encounter differences along the way. "That's why we're having so many
> meetings," Baucus said. "Just get these concepts out, so senators on > both
> sides of the aisle who may want to dig their heels in a little bit > are less
> likely to dig their heels in if there's a culture and atmosphere where
> we're openly discussing trying to find ways to reach a compromise > and still
> reach an objective of getting healthcare costs down."
>
> Baucus and the administration are likely to clash in some areas. > President
> Obama's budget included a $634 billion healthcare reserve fund, half > of
> which is funded by raising taxes on the wealthy by limiting itemized
> deductions. Baucus questioned the viability of the plan and instead > has
> pushed to limit the tax exclusion that prevents people from paying > taxes on
> their health benefits. The White House is "open to listening to what > Sen.
> Baucus has to say, this is his idea," Melody Barnes, the > administration's
> Domestic Policy Council director, said today. "[Obama is] being very
> pragmatic about this. We are in listening mode and eager to engage > with
> Congress." Baucus said he hopes to have a bill ready for the Senate > floor
> by July.
>
>
> http://www.nationaljournal.com/congressdai...090305_8986.php
>
> -----
> FINANCE: FRANK: PANEL PLANNING MORTGAGE LENDING, REGULATORY BILLS ...
> By Bill Swindell
>
>
> House Financial Services Chairman Barney Frank today said his > committee
> would move within the next month on legislation that would tighten > mortgage
> lending rules, restrict abusive credit card practices and curb some
> questionable bank overdraft fees. As he outlined his agenda, he said > it
> would be necessary to help restore public confidence after the federal
> government has allocated $700 billion through the Troubled Asset > Relief
> Program and the Federal Reserve sent $1 trillion in loans to at-risk
> institutions. Frank noted that such bills would be necessary to pass > if the
> Obama administration would come back to ask for additional relief. The
> Obama budget plan includes a placeholder of $750 billion for > Treasury to
> purchase the troubled assets of at-risk banks. "At this point, it's > not
> clear that there is the political support to do it," Frank said of > another
> bailout.
>
> The credit card and mortgage bills will include more consumer > protection
> measures than versions that passed the House in the 110th Congress. > Frank
> said he would revive legislation to ban some bank overdraft fees even
> though the firms have voluntarily "cleaned up" some of the more
> questionable practices. That bill was strongly opposed by banks and > credit
> unions and never got a floor vote. "We're in a situation now where > people
> perceive the federal government as being nicer to the banks than they
> deserve. That means that efforts to try to write some consumer > protection
> get less political opposition," Frank said. He added his panel would > take a
> look at revamping the insurance regulatory regime, which is overseen > by
> states. He said he felt more comfortable allowing life insurers, which
> compete with the mutual fund industry, the ability to be regulated > at the
> federal level. Property-casualty carriers would not fall into that
> category. His panel will hold a hearing on mark-to-market accounting > rules,
> which require companies to value assets at current prices rather > than their
> value when they mature. The issue is crucial in the real estate > market,
> where many properties have been drastically devalued but are > expected to
> regain value. Frank does not want to eliminate the rules but look at > ways
> to give regulators flexibility on how to mark assets that have been
> temporarily devalued.
>
>
> http://www.nationaljournal.com/congressdai...090305_3146.php
>
> -----
> FINANCE: ... AS IT ALSO WEIGHS IDEAS FOR SYSTEMIC-RISK REGULATOR
> By Bill Swindell
>
>
> The House Financial Services Capital Markets Subcommittee today held > its
> first hearing on creating a systemic-risk regulator with oversight
> throughout the entire financial sector. The idea has taken on greater
> urgency in the aftermath of the collapse of the insurance giant > American
> International Group, whose contracts were only lightly regulated. The
> federal government has invested $163 billion in AIG for fear that > its vast
> exposure to credit-default swaps could bring down counterparties in > the
> broader financial system. "The ongoing turmoil in our financial > markets has
> led us to a crossroads," said House Financial Services Capital Markets
> Subcommittee Chairman Paul Kanjorski, D-Pa. "We must now design a > robust,
> effective supervisory system for the future. In doing so, we must move
> expeditiously in order to help restore confidence in our markets and > to get
> our economy moving again."
>
> Proposals include giving the Federal Reserve the authority to be the
> systemic-risk regulator, creating a new regulator, or having the
> President's Working Group on Financial Markets take on that role. > Financial
> Services Chairman Barney Frank said today he was leaning toward > giving the
> Fed the power because decision-making among committees tends not to > work,
> while creating a new agency would take too long. He also listed what > the
> systemic-risk regulator would need: the ability to require companies > that
> securitize debt, equities or other packages to retain a portion of > that
> offering so that they have some skin in the game; the ability to limit
> excessive leveraging by firms; and the power to unwind failed > institutions
> and place restrictions on executive pay. It would apply to all > financial
> products, not just those regulated by specific industries.
>
> Like Frank, most lawmakers prefer the Fed option, although others > express
> skepticism. "It already has significant responsibility in the area of
> monetary policy as well as its ongoing bank regulatory role. In > addition,
> as an independent institution, there is a certain lack of political
> accountability for its actions," said House Financial Services Capital
> Markets Subcommittee ranking member Scott Garrett, R-N.J. "I'm not > sure
> it's wise to consolidate so much additional responsibility in an > entity
> that does not have to answer to the American people." Richard Baker,
> president of the Managed Funds Association, which represents hedge > funds,
> called for a systemic-risk regulator but asked that financial > information
> provided to the entity remain confidential and fully protected from > public
> disclosure. But that stance may conflict with the desire by some > lawmakers
> to make the Fed's business more open, especially in light of the > more than
> a trillion dollars it has loaned out within the last year to bring
> stability to the market.
>
>
> http://www.nationaljournal.com/congressdai...090305_5284.php
>
> -----
> FINANCE: PANEL TOLD REGULATORS LOOKING FOR WAYS TO FIX AIG MISTAKES
> By Juliana Gruenwald
>
>
> The acting director of the Office of Thrift Supervision today > acknowledged
> that his agency fell short in its oversight of American > International Group
> and the financial products it sold that were not regulated. Scott > Polakoff
> told the Senate Banking Committee that the credit default swaps, an
> insurance-like product AIG sold to buyers that covered losses on
> mortgage-backed securities, were key to AIG's problems and urged > regulation
> of these products. The federal government took control of AIG in the > fall
> after risky bets on credit default swaps left the company on the > verge of
> bankruptcy. The government has since injected billions into the > company,
> totaling $163 billion to date. Polakoff's call for more regulation was
> echoed by Federal Reserve Vice Chairman Donald Kohn, who said there > was a
> need for some form of "umbrella" regulator to cover huge firms like > AIG.
> Polakoff said OTS should have stepped into that role, given its > supervision
> of AIG's savings and loan subsidiary, saying that while AIG's > financial
> products division was unregulated, it was part of the overall
> responsibility of OTS.
>
> Lawmakers expressed outrage with the refusal of the Federal Reserve to
> release the names of those who bought the credit default swaps. Many
> lawmakers questioned why these buyers are getting paid at a much > higher
> rate than they would have received if AIG were allowed to go bankrupt.
> "It's reasonable to ask why holders, who would have received only > pennies
> on the dollar for their credit default swaps absent any government
> intervention would expect or deserve payments from what is > essentially a
> bankrupt company," Senate Banking Chairman Christopher Dodd said. > AIG has
> had to provide additional collateral on the credit default swaps as > the
> values of the securities they covered have declined. Kohn argued that
> revealing the names of these buyers would undermine confidence in the
> financial system and might dissuade investors from doing business with
> banks that might receive future assistance from the federal > government.
>
> That answer did not satisfy several members who said it would make > it more
> unlikely Congress would provide more money for AIG. "We need to find > out
> who benefited and where the money went," Banking ranking member > Richard
> Shelby argued. Sen. Jim Bunning, R-Ky., was more blunt, saying that > unless
> the Fed provided that information, "you will get the biggest 'no' > you ever
> got" if the Obama administration comes back to Congress for more > funding.
> He pledged to do everything he could to stop the federal government > from
> "wasting [more] money on a lost cause." Kohn refused to say when > pressed by
> Bunning and others how much more money the federal government might > need to
> provide AIG.
>
>
> http://www.nationaljournal.com/congressdai...090305_6078.php
>
> -----
> BUDGET: REID SET TO FORCE END OF DEBATE OVER FY09 OMNIBUS BILL
> By Humberto Sanchez and Dan Friedman
>
>
> Senate Majority Leader Reid appears to have enough support to force a
> final vote on a $410 billion FY09 omnibus spending bill, but to win > the
> cloture vote he will probably need the support of some Democrats who > might
> oppose the bill on final passage. The cloture vote could come as > early as
> tonight as lawmakers race the clock, trying to get the bill to > President
> Obama before a continuing resolution that is funding most government
> operations expires at midnight Friday. Some Democrats who have said > they
> will vote against the bill or haven't decided how to vote, including > Sens.
> Ben Nelson of Nebraska and Claire McCaskill of Missouri, said they > will
> vote for cloture. But some Republicans who have expressed support > for the
> bill, including Sens. Arlen Specter of Pennsylvania, Lamar Alexander > of
> Tennessee and Lisa Murkowski of Alaska, have said they would vote > against
> cloture. With the help of a handful of other Republicans, such as
> Appropriations ranking member Thad Cochran and Sens. Richard Shelby of
> Alabama, Christopher (Kit) Bond of Missouri and Susan Collins of > Maine,
> Reid seems likely to get the 60 votes he needs to cut off debate.
>
> Passage of any amendments would require the House to vote on the bill
> again, a step Democrats say there is no time for. For that reason, > Reid has
> told amendment sponsors that their proposals will be voted down, > senators
> said. Reid said the Senate would vote on five amendments this evening,
> including a proposal from Murkowski that would require a public > comment
> period before the Interior and Commerce departments can rescind a Bush
> administration rule that limited protection for polar bears under the
> Endangered Species Act, and an amendment from Sen. James Inhofe, R-> Okla.,
> prohibiting omnibus funds from being used to pay any United Nations' > tax.
> Opponents of an IRS pilot program that allows private firms to collect
> small tax debts are near victory after several years of efforts to > kill the
> program. An amendment by Sen. Charles Grassley, R-Iowa, to eliminate a
> provision in the bill defunding the IRS program is almost certain to > be
> defeated, according to Grassley. The National Treasury Employees > Union,
> which includes many IRS employees, has been lobbying for years for
> legislation eliminating the program.
>
>
> http://www.nationaljournal.com/congressdai...090305_7611.php
>
> -----
> ENERGY: CHU FACES GOP SKEPTICISM OVER WASTE STORAGE PLAN
> By Darren Goode
>
>
> Energy Secretary Chu said today the administration is looking at a
> comprehensive plan for long-term storage of nuclear waste at sites
> nationwide, but his comments did not quell GOP skepticism over the
> administration's plans to eliminate Nevada's Yucca Mountain as a one-> stop
> permanent repository. Chu told the Senate Energy and Natural Resources
> Committee a nuclear waste storage plan will start with the short-> term goal
> of solidifying waste at existing sites and finding multiple sites > around
> the country for longer-term storage. "One location, one site will > probably
> not work," he said. No longer-term storage sites have been > identified, and
> the plan is to gather experts to examine options this year, he said. > Chu
> said after the hearing that he defined short-term storage as "years,
> decades; certainly not long-term, not hundreds of years or millions of
> years." He said short-term storage "does give us time to formulate > much
> more comprehensive, thorough policy in how to deal with the waste," > adding
> that such a plan would not endanger the environment or national > security.
>
> Sen. John McCain, R-Ariz., told Chu it is "remarkable" that the
> administration does not consider the long-delayed Yucca Mountain > project --
> which began in 1987 and has cost more than $9 billion so far -- as an
> option for storing waste. "It is clear that industry today is not
> interested in the construction of nuclear power plants because > there's no
> place to store [the waste]," McCain said. Energy and Natural Resources
> ranking member Lisa Murkowski said: "If I were looking to advance a > new
> nuclear facility, these comments by the administration ... would be > very
> disconcerting. I don't know what we have done to our new nuclear
> renaissance that Sen. [Pete] Domenici worked so hard to advance,"
> referencing the retired New Mexican who preceded her as top > Republican on
> the panel. Chu said it will take time to determine how to recycle > nuclear
> waste. "We have a couple of decades ... to figure that one out," Chu > said.
> "I couldn't disagree more strongly," McCain responded. The issue of > nuclear
> waste storage is likely to come up when the committee plans to mark > up an
> energy bill during the last week of this month.
>
>
> http://www.nationaljournal.com/congressdai...090305_3192.php
>
> -----
> ENERGY: BINGAMAN AIMS FOR LATE MARCH MARKUP OF ENERGY BILL
> By Darren Goode
>
>
> Senate Energy and Natural Resources Chairman Jeff Bingaman wants to > hold a
> markup during the last week in March on a broad energy bill even as
> discussions continue on how to shape one of its centerpieces -- the
> renewable electricity mandate. Bingaman told reporters at a breakfast
> briefing today sponsored by Platt's that he plans to introduce several
> free-standing pieces of the plan for review in the next week or two > and
> hopes to present the committee with a plan that can be cosponsored by
> Senate Energy and Natural Resources ranking member Lisa Murkowski. > Bingaman
> will accordingly wait to offer a renewable electricity production > mandate
> either as an amendment during the markup or on the Senate floor. > Bingaman
> has a draft plan requiring 20 percent of the electricity produced by > power
> companies to come from renewable energy sources, such as wind, solar > and
> geothermal, by 2021. But there is a push among both Democrats and
> Republicans to either lower that mandate or at least expand the > definition
> of the electricity sources used to meet it.
>
> Southeastern senators in both parties are concerned they do not have > the
> resources to meet a nationwide mandate. Bingaman said he was talking > to
> these senators and others about tweaking the plan's definition of a
> renewable source. "We want to be sure there's a good opportunity for
> everyone to comply without any undue burden," Bingaman said. Murkowski
> wants hydroelectricity and nuclear energy to be included among the
> renewable sources. But Bingaman today said he opposes adding > nuclear. "If
> you try to include nuclear, the sizes are such that it just swamps, it
> takes away any real impetus for development of renewable energy," he > said.
> "If you build a new nuclear power plant, you're home free from now > until
> the end of the next century."
>
> Thirteen senators, including 11 Democrats, have asked Bingaman and
> Murkowski to expand the definition to include "waste-to-energy." A > Tuesday
> letter from the senators cites 87 waste-to-energy facilities that > handle
> roughly 29 million tons of household refuse annually and have an > electric
> capacity of 2,700 megawatts. Energy Secretary Chu told Bingaman's > committee
> at a hearing today that the existing renewable electricity > transmission
> network is not yet adequate to meet a nationwide federal mandate. "The
> transmission system as it is today is not suitable for getting > renewable
> energy to parts of the population centers in the United States; so > this is
> something we have to concurrently build up," Chu said. He said he > hopes
> that by 2020 "we would be well along in getting the lines sited. We > will be
> building up this transmission system." President Obama has advocated
> including a 25 percent renewable electricity production mandate by > 2025.
> Setting up a renewable transmission system is another item Bingaman > plans
> to address in the upcoming bill.
>
>
> http://www.nationaljournal.com/congressdai...090305_1322.php
>
> -----
> OUTLOOK: HOYER OUTLINES QUICK ACTION ON ENERGY, HEALTHCARE BILLS
> By Humberto Sanchez
>
>
> In an effort to implement initiatives laid out in President Obama's
> ambitious $3.6 trillion FY10 budget, House Majority Leader Hoyer > today said
> Democratic leaders hope to have the House consider energy legislation
> before Memorial Day and healthcare reform by August. Hoyer hedged on
> whether the energy legislation would include a market-based, cap-and-> trade
> limit on carbon emissions aimed at addressing global warming, which is
> called for on Obama's budget. He indicated he would likely defer to > House
> Energy and Commerce Chairman Henry Waxman. "I think cap and trade is > Rep.
> Waxman's major focus ... but I don't want to prejudge," he said. On
> healthcare reform, Hoyer said House Democratic leaders are talking > with
> Senate Democratic leaders. "We want to try to move ahead with some > degree
> of cooperation and unity on this. In the past, we haven't had that > as much
> as we would like because it's such a big issue," Hoyer said. "But in > terms
> of timing, certainly by the August break we'd like to have something"
> through the House.
>
> Hoyer said he is mindful of the risk that House Democrats vote in > favor of
> politically difficult and controversial bills only to have the > Senate not
> consider them -- opening House Democrats up to attacks for the 2010
> campaign. For that reason, he said, "We will spend a lot of time > trying to
> see that we have agreement between the Senate and the House as we move
> forward [and] before we get to that situation." As for the budget
> resolution, he said Democratic leaders are aiming to put the House > version
> on the floor during the week of March 30, which would have a 10-year
> horizon like Obama's plan. The House version will also seek to make
> permanent Obama's "Making Work Pay" tax credit; invest in health care,
> education and energy; and likely include a reserve fund for healthcare
> reform. Hoyer also addressed the issue of whether to use budget
> reconciliation to move difficult provisions and thereby skirt the 60-> vote
> hurdle in the Senate. Discussions are under way on possibly using the
> tactic to pass healthcare reform, a cap-and-trade bill, or student-> loan
> overhaul that would shift federal student loans into the direct-loan
> program administered by the Education Department -- which private > lenders
> oppose. Republicans used the approach to pass former President > George W.
> Bush's tax cuts during his first term.
>
>
> http://www.nationaljournal.com/congressdai...090305_9053.php
>
> -----
> TRADE: GRASSLEY ASKS OBAMA TO CLARIFY POSITION ON NAFTA
> By Peter Cohn
>
>
> Senate Finance ranking member Charles Grassley today wrote to > President
> Obama asking him to clarify his intentions regarding the North > American
> Free Trade Agreement. On the campaign trail, Obama suggested the pact
> should be reopened, though he has since avoided such language. "I > question
> how this agreement could be changed without having an adverse effect > on
> trade. For example, I am concerned that if the trade agreement is > reopened,
> Mexico will seek to rebalance tariff concessions in a way that will
> adversely affect agricultural exports from Iowa," Grassley wrote. > "More
> broadly, I am concerned that the signals you are sending with > respect to
> the North American Free Trade Agreement are creating uncertainty in > the
> marketplace. We can ill-afford such uncertainty as we work to > recover from
> our national economic downturn."
>
> During his presidential campaign, Obama called the pact > "devastating" and
> a "big mistake" and said it should be renegotiated, Grassley noted > in the
> letter. In conversations with Canadian Prime Minister Stephen Harper > last
> week, Obama reiterated that side agreements bolstering labor and
> environmental standards should be incorporated into the deal but in > a way
> "that is not disruptive" to the U.S.-Canada trade relationship. In an
> annual report issued this week, Obama's trade office also used softer
> language on NAFTA. "The word 'renegotiation' is nowhere in this > document,"
> a disappointed labor official said. Instead, Obama's trade report > said the
> administration will "work with Canada and Mexico to identify ways in > which
> NAFTA could be improved without having an adverse effect on trade. > We will
> do this in a collaborative spirit and emphasize ways in which this > process
> can benefit the citizens of all three countries."
>
>
> http://www.nationaljournal.com/congressdai...090305_9276.php
>
> -----
> TELECOMMUNICATIONS: OFFICIAL SEES END TO DTV COUPON BACKLOG THIS MONTH
> By David Hatch
>
>
> The Commerce Department Wednesday began clearing a backlog of 4.1 > million
> coupons for converter boxes more than two weeks after the nationwide > switch
> to digital television signals was supposed to occur. The Feb. 17 > transition
> was bumped to June 12 by Congress at the urging of the Obama
> administration, which cited woes with the voucher program. Hundreds of
> stations are being permitted to drop their analog feeds early with FCC
> approval. The devices enable viewers with analog TV sets to use them > after
> stations shift to digital. The $40 coupons bring the price of units > down to
> between $5 and $20. At an FCC meeting today, Bernadette McGuire-> Rivera,
> associate administrator with the National Telecommunications and
> Information Administration, said the waiting list would be cleared > in about
> two and a half weeks. That's because Congress included $650 million > in the
> economic stimulus package to fix the initiative's problems. Coupon
> processing slowed to a crawl Jan. 4 after NTIA revealed it was low on
> funding. Some lawmakers blamed the agency for waiting too long to > alert
> Congress. "This time we will be watching very closely," McGuire-> Rivera said
> to FCC officials. "If it looks any way at all like we'll be running > out of
> coupons, people will know well in advance." She said an additional 12
> million vouchers could be mailed beyond the 4 million requests to be
> cleared.
>
> NTIA is taking other steps to improve distribution. In the next week > or
> two, it will issue rules enabling citizens whose discounts have > expired to
> apply for new coupons and will spend up to $90 million on additional
> consumer outreach. Also, more emphasis is being placed on reaching 4.5
> million households Nielsen Media Research estimates remain > unprepared for
> the switch. McGuire-Rivera said this "unique group" has not > responded to
> extensive messaging and that NTIA is recalibrating its advertising. > "This
> group needs special attention," she said, adding that Commerce is
> approaching this challenge like a "search-and-rescue" mission. Since > many
> in this population are ages 18 to 35, the department will place more > ads in
> "new media," such as social networking sites. NTIA is working with > civil
> rights and consumer groups to hand out converters to group-home > residents,
> who are excluded from applying due to a quirk in the regulations.
>
>
> http://www.nationaljournal.com/congressdai...090305_9532.php
>
> -----
> GOVERNMENT OPERATIONS: OVERSEERS SCRAMBLE TO THWART FRAUD IN STIMULUS
> PROGRAMS
> By David Hess
>
>
> In testimony today before the Senate Homeland Security and > Governmental
> Affairs Committee, officials of GAO, OMB and the Inspectors General > corps
> said it will take upward of 150 additional auditors and other > analysts and
> technicians to supervise the quick distribution of the hundreds of > billions
> in new spending designed to jump-start the economy. OMB deputy Robert
> Nabors reminded the committee that the economic recovery plan > contains $250
> million devoted to tracking the way the new law is administered. > Although
> Nabors and GAO acting director,Gene Dodaro, along with the USDA's IG,
> Phyllis Fong, are "ramping up" to meet the challenge, they said they > would
> not reach a full complement of qualified examiners until the end of
> September. Several senators questioned whether the huge volume of > money
> involved in the recovery effort could be effectively monitored to > protect
> against fraud and waste. Republican Sen. George Voinovich, a former > Ohio
> governor, expressed concern that the federal and state agencies > responsible
> for managing the projects are undermanned. And Sen. Jon Tester, D-> Mont., a
> former state senate leader, worried it would be difficult to track > specific
> projects down to local levels or to enforce the law, if wrongdoing > were
> uncovered. Asked by Senate Homeland Security and Governmental Affairs
> Chairman Joseph Lieberman how GAO plans to gear up for the challenge,
> Dodaro said he had already identified about 65 of the 100 additional
> auditors needed. Most of the added auditors are former GAO employees,
> brought in to work for two or three years to oversee the spending > spree.
>
>
> http://www.nationaljournal.com/congressdai...090305_9847.php
>
> -----
> HILL BRIEFS: OMNIBUS LEAVES NEXT WEEK'S SCHEDULE UNCERTAIN
>
> Outlook. House Speaker Pelosi today said that if the Senate makes > changes
> in the $410 billion FY09 omnibus appropriations bill, the House will > ignore
> it and instead take up a measure extending the current continuing
> resolution through the end of the fiscal year. The Senate has not yet
> approved any changes to the bill, but more amendments are pending. > Senate
> Democrats plan to finish work Friday on the bill, which would allow
> President Obama to sign it before the CR expires at midnight Friday. > "If we
> start to open up that package it would be endless," Pelosi said. The > House
> floor schedule for next week was uncertain at presstime. Senate > leadership
> aides said that body might take up a mortgage cram-down bill next > week if
> the House finishes working on it today. Senate Democrats also hope > next
> week to confirm David Ogden as deputy attorney general, although > Judiciary
> Chairman Patrick Leahy said Republicans are holding up the nomination.
>
>
> http://www.nationaljournal.com/congressdai...090305_3237.php
>
> -----
> HILL BRIEFS: SENATE APPROPS ANNOUNCES SUBCOMMITTEE ALIGNMENT
>
> Senate. One new cardinal and six new ranking members were made > official
> today as the Senate Appropriations Committee announced subcommittee
> memberships for this Congress. Sen. Ben Nelson, D-Neb., takes the
> chairmanship of the Legislative Branch Appropriations Subcommittee,
> replacing Sen. Mary Landrieu, D-La. New ranking members are Sens. Sam
> Brownback, R-Kan., at Agriculture; Robert Bennett, R-Utah, at Energy > and
> Water; Susan Collins, R-Maine, at Financial Services; George > Voinovich,
> R-Ohio, at Homeland Security; Lamar Alexander, R-Tenn., at
> Interior-Environment and Lisa Murkowski, R-Alaska, at Legislative > Branch.
> Joining the committee are Sens. Mark Pryor, D-Ark.; Jon Tester, D-> Mont.;
> Collins, Voinovich and Murkowski.
>
>
> http://www.nationaljournal.com/congressdai...090305_1097.php
>
> -----
> HILL BRIEFS: RNC GIVES $1 MILLION TO NRSC, NRCC
>
> Campaign Finance. Republican National Committee Chairman Michael > Steele
> took a break from his ongoing spat with broadcaster Rush Limbaugh to
> transfer $1 million each to the National Republican Congressional > Committee
> and the National Republican Senatorial Committee. In a statement, NRSC
> Chairman John Cornyn of Texas said the cash was important because it > would
> help the GOP cut into the fundraising advantages that Democratic > candidates
> enjoyed in the last election cycle.
>
>
> http://www.nationaljournal.com/congressdai...090305_6081.php
>
> -----
> HILL BRIEFS: PANEL ADVANCES KAGEN'S SOLICITOR GENERAL NOMINATION
>
> Judiciary. Harvard University Law School Dean Elena Kagan's > nomination to
> be U.S. solicitor general won approval today from the Senate Judiciary
> Committee. Kagan is the first woman nominated to the post. Noting that
> Kagan became the first woman to head Harvard's law school, Senate > Judiciary
> Chairman Patrick Leahy said, "Now she is poised to break another glass
> ceiling." Senate Judiciary ranking member Arlen Specter said some
> Republicans had reservations because her answers to some questions > were not
> responsive during her confirmation hearing. Minority Whip Kyl and
> Republican Sen. Tom Coburn of Oklahoma joined the 11 Democrats to > send the
> nomination to the Senate. Specter, Sen. Lindsey Graham, R-S.C., and > Sen.
> Orrin Hatch, R-Utah, "passed" and did not cast a vote on her > nomination
> while Sens. Charles Grassley, R-Iowa, Jeff Sessions, R-Ala., and John
> Cornyn, R-Texas, opposed her nomination. Also approved for Senate
> consideration were Thomas Perrelli to be associate attorney general > and
> David Kris to be assistant attorney general in the Justice > Department's
> national security division.
>
>
> http://www.nationaljournal.com/congressdai...090305_2560.php
>
> -----
> HILL BRIEFS: CENSUS BUREAU EXPECTS $14M NEEDED FOR 2010 TALLY
>
> Government Operations. The Census Bureau anticipates spending more > than
> $14 billion -- a record amount -- on the 2010 census, an official > told the
> House Oversight and Government Reform Information Policy Subcommittee
> today. But the added cash will probably not prevent major problems.
> Officials from GAO have said new data collection technology has not
> undergone enough testing, while "overall readiness is uncertain." > Thomas
> Mesenbourg, the bureau's acting director, acknowledged the potential
> glitches at the hearing but said the bureau is "poised to meet the > enormous
> challenges in front of us." During the last census, about 3 million > people
> -- mostly poorer minorities in urban areas -- went uncounted. Rep. > William
> Lacy Clay, D-Mo., who chairs the subcommittee, said such miscounts > deprive
> communities of proper political representation and federal dollars.
> Republicans said they were concerned about the possibilities of > fraud and
> political influence on the census.
>
>
> http://www.nationaljournal.com/congressdai...090305_2630.php
>
> -----
> HILL BRIEFS: IT CHIEF KUNDRA ANNOUNCES FEDERAL DATA WEB SITE
>
> Technology. President Obama's administrator for e-government and
> information technology at OMB said today his office will launch a > Web site
> intended to "democratize data" by giving the public raw feeds of
> information from a range of agencies. Vivek Kundra, who previously > served
> as the District of Columbia's chief technology officer, said the site,
> www.data.gov, would build on successes like the National Institutes of
> Health's publication of Human Genome Project data and the Defense
> Department's release of satellite data. The former revolutionized
> personalized medicine, while the latter led to the commercialization > of GPS
> devices, he noted. "We need to make sure that all that data that's not
> private, that's not restricted for national security, can be made > public,"
> said Kundra, who will also have the title of federal CIO and will > work with
> the yet-to-be-named federal CTO.
>
>
> http://www.nationaljournal.com/congressdai...090305_8536.php
>
> -----
> HILL BRIEFS: FRANKEN SEEKS TO TOSS MINN. SENATE LAWSUIT
>
> Judiciary. Democrat Al Franken today called for dismissal of > Republican
> Sen. Norm Coleman's lawsuit challenging the Minnesota Senate > recount, the
> Associated Press reported. The motion for dismissal filed by his > lawyers
> could be argued before a three-judge panel Friday. It contends > Coleman has
> failed to meet his burden of proof that would enable him to overcome
> Franken's 225-vote lead.
>
>
> http://www.nationaljournal.com/congressdai...090305_2514.php
>
> -----
> HILL BRIEFS: KENNEDY BACK AT WORK, ATTENDING HEALTH SUMMIT
>
> Senate. Sen. Edward Kennedy, D-Mass., returned to Washington today and
> planned to attend the White House healthcare summit hosted by > President
> Obama. Kennedy, 77, is battling brain cancer. He has been in Florida
> continuing his treatment and physical rehabilitation.
>
>
> http://www.nationaljournal.com/congressdai...090305_1178.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "I feel so close to them, at one point I thought of allowing them to > use
> my car and driver."
>
> -- Former Senate Majority Leader Tom Daschle commenting on his > friendship
> with nutrition lobbyist Marshall Matz and his wife. He made his > remarks at
> a Global Child Nutrition Foundation dinner honoring Matz Tuesday.
>
>
> http://www.nationaljournal.com/congressdai...090305_7743.php
>

[Snuffysmith]

> CongressDaily AM for Friday, March 6, 2009
>
> --------------------
> CONTENTS
>
> ENVIRONMENT: OFFSETS KEY TO DEVISING CLIMATE PACKAGE
> By Darren Goode
>
>
> President Obama's request in his initial budget blueprint for > Congress to
> provide hundreds of billions in middle- and low-income tax credits > through
> an economywide climate change plan reflects not just increasing > pressure to
> combat global warming but to mitigate inevitably higher costs to > consumers.
>
> "We need to make it very clear that revenues from capping carbon are
> returned to consumers to pay for increased costs they will face," Rep.
> Chris Van Hollen, D-Md., said.
>
> Van Hollen last week proposed the idea of a cap-and-dividend plan > wherein
> businesses through an auction have to purchase all their credits to > release
> greenhouse gases and send about 90 percent of the revenue directly > back to
> the public through monthly rebates to "every American with a Social
> Security number."
>
> It is one of the latest variations or alternatives emerging to > limiting
> greenhouse gas emissions through a market-based cap-and-trade > program that
> Obama and congressional Democratic leaders have rallied behind. "It's
> putting another idea on the table," Van Hollen said. "If one doesn't > get
> traction, it's more like an alternative, plan B."
>
> Proponents of another, more age-old idea -- instituting a direct tax > on
> carbon emissions -- say there is growing interest among Democrats > and that
> even the White House privately is not objecting to the idea being > batted
> around.
>
> "This kind of debate is largely within the Democratic Party, and it is
> evolving rather quickly, frankly," said Robert Shapiro, former > Commerce
> undersecretary for economic affairs in the Clinton administration.
>
> Shapiro co-founded the Climate Task Force last year with another > former
> Clinton administration official, Elaine Kamarck, to advocate reducing
> payroll taxes as a means of offsetting costs that businesses would > likely
> shift to consumers as a result of a carbon tax.
>
> "I think right now it's being talked about in a lot of circles as a
> fall-back position," said Kamarck, who created and ran Clinton's > National
> Performance Review.
>
> Carbon tax backers say it is more transparent and less confusing > than a
> cap-and-trade program. "The public doesn't understand it and members > of
> Congress haven't wrapped their arms around this," Democratic Caucus > Vice
> Chairman John Larson of Connecticut said of cap-and-trade. A direct > tax
> also avoids a middleman approach in filtering money back to > consumers, he
> said. "I think it's pretty obvious to me you're better off with a
> pass-through and not creating a new federal bureaucracy in order to > achieve
> that," said Larson.
>
> Larson Thursday introduced a modified version of a bill he offered > last
> Congress which would put a $15 per metric ton tax on carbon at mines,
> refineries and other such sources in the first year and increasing $10
> annually after that. Revenue would go to giving payroll rebates to
> consumers as well as fostering alternative energy sources, including
> cleaner uses of coal. This resembles at least the general concept of
> Obama's budget outline last week. OMB directed nearly $526 billion > by 2019
> in revenue assumed through a cap-and-trade emission credit auction > toward
> Obama's "make work pay" tax rebate that goes to all but the top 5 > percent
> of taxpayers and $120 billion for "clean energy" technologies.
>
> Tax advocates say cap-and-trade was born when people had more faith > in the
> markets. "The profound dysfunctions in the financial markets raise > very
> serious operational and political questions," Shapiro said.
>
> House Financial Services Chairman Barney Frank does not buy the > argument
> that problems in the financial markets means other market-based > ideas are
> doomed. "I don't think that means markets are never any good for > anything,"
> Frank said.
>
> The United States devised the cap-and-trade idea as part of EPA's acid
> rain program in 1990. "The track record is excellent," said Rep. Rick
> Boucher, D-Va., chairman of the House Energy and Commerce Energy and > Air
> Quality Subcommittee in the last Congress. It also presents the most
> cost-effective means of reducing carbon emissions, he said. "I do > not see
> another alternative," Boucher said.
>
> Even if a cap-and-trade program ends up being the mechanism Congress
> adopts, there is increasing emphasis on ensuring that revenue gets > directly
> funneled back to consumers.
>
> House Energy and Commerce Chairman Henry Waxman -- who is developing > an
> energy and climate change package with a cap-and-trade program -- > expects
> money to be used "to help consumers who will have a hard time > affording any
> increases" in their electricity and other bills, as well as help > industries
> develop technology to meet requirements. "We need to be mindful of the
> consequences of the impact of the cap and trade," he said. Waxman is
> planning to release a draft bill this month and wants a bill through > his
> panel by Memorial Day.
>
> Critics of Obama's budget plan question whether the revenue will > really go
> back to taxpayers.
>
> Sen. Bob Corker, R-Tenn., said upper income taxes already will pay for
> Obama's tax credit. "And so what they're doing in essence is casting > a huge
> energy tax and keeping the money inside government," Corker said.
>
> Sen. Sherrod Brown, D-Ohio, worries his and other manufacturing states
> will bear the brunt of a cap-and-trade program and not get enough in
> return. "My concerns [are] when a small number of states absorb most > of the
> costs and then the benefits are disbursed to sort of the whole > country,"
> Brown said. "I'm troubled what it means to the individual people's > electric
> bills and I'm troubled what it means to a lot of our manufacturers."
>
> Aides for Brown and about 15 other senators have been meeting to > develop
> pieces of a cap-and-trade plan, including mitigating costs to > consumers,
> front-loading money for carbon-cutting technologies and allowing for > an
> unlimited amount of suitable offsets for businesses to use to meet the
> emission reduction targets.
>
> With most Republicans opposed to a cap-and-trade system, the success > of
> getting Rust Belt and other skeptical Democrats on board will be > crucial to
> giving Obama the early climate victory he is seeking. "I'm not > convinced
> yet," Brown said.
>
>
> http://www.nationaljournal.com/congressdai...090306_9171.php
>
> -----
> CONGRESS: FOR SOME MEMBERS, CONSTITUENT SERVICE CAN INCLUDE GOING A > LONG,
> LONG WAY
> By Katie Sanders and Mike Magner
>
>
> As most members of Congress headed out of town for a long weekend at > the
> beginning of February, Rep. Christopher Smith, R-N.J., quietly flew to
> Brazil for a two-day visit to Brasilia and Rio de Janeiro.
>
> It wasn't the South American summer that prompted Smith to make the
> 4,000-mile journey. It was the gut-wrenching tale of a New Jersey man
> attempting to regain custody of an 8-year-old son he had not seen in > four
> years, after his mother took him on vacation to her native Brazil, > decided
> to stay there and remarry with an attorney she had met, and then died
> giving birth.
>
> Smith had seen the story about David Goldman and his son, Sean, on > the NBC
> program "Dateline" and decided to offer his help. "I'm a father of > four,"
> Smith said later on the NBC "Today" show.
>
> "When I saw the 'Dateline' show, and saw the agony in David's eyes > as he
> made an appeal for any help anybody might provide -- within two days > we had
> a meeting. He talked about the possibility of going back to Brazil. > I said,
> 'Here's my schedule, anytime I can be of service. I'll carry your > bags,
> whatever is necessary, I and I'm sure others are willing to do. Just > call
> on us.' " Smith said.
>
> And two days after that meeting, Smith was traveling with Goldman to > make
> an appeal to Brazilian authorities for help reuniting a father and > son.
>
> Every successful politician knows the real key to voters' hearts is
> solving their problems with government, whether it's ironing out a > Social
> Security debacle, resolving an immigration issue or otherwise > helping a
> citizen negotiate the bureaucratic maze.
>
> But every once in a while a crisis comes along that requires a higher
> level of constituent service, or that pushes a lawmaker to go an extra
> mile, or even to put their lives or reputations on the line.
>
> Such cases are rare for most members of Congress, an informal survey > by
> CongressDaily found. Out of 65 Capitol Hill offices contacted over > the past
> month, fewer than a dozen recalled situations where a member had taken
> extreme measures on behalf of an individual or group needing their > help.
>
> For Smith, the trip to Brazil on Feb. 5-6 was not out of character. In
> August, after Russian troops invaded the former Soviet republic of > Georgia,
> Smith flew to Tbilisi, Georgia, to secure the safe return of two New > Jersey
> girls who had been visiting their grandparents there.
>
> Smith's office did not respond to requests for an interview, but he > told
> NBC Feb. 11 that he had managed to arrange a meeting between Goldman > and
> his son, and that efforts to bring the boy back to New Jersey were
> continuing.
>
> "Just being there, a witness, a party to it, was a moving experience,"
> Smith said of the brief reunion. "I had a tear in my eye as did every
> member of our embassy who was also there."
>
> Other members told stories that were at least as emotional, if not as
> dramatic.
>
> * For five years, Rep. Barney Frank, D-Mass., crusaded for the > release of
> Yang Jianli, a Chinese dissident and democracy activist who said he > was
> tortured by guards while in a Beijing prison.
>
> Yang, who lives in Frank's district, was blacklisted from China for
> demonstrating in the 1989 Tiananmen Square protests. In April 2002, > he was
> imprisoned for entering the country with a friend's passport and > eventually
> sentenced to five years in prison on charges of spying for Taiwan.
>
> Frank, incensed upon learning Yang was being held without formal > charges
> or access to a lawyer, got to work calling for Yang's release and > rounding
> up lawmakers to back his cause.
>
> As the years wore on, Frank held vigils and news conferences on each
> anniversary of Yang's detention and sent several letters to high-> ranking
> Chinese government officials about the abuses of human rights.
>
> Resolutions from the House and Senate were passed in support of Yang's
> release, and former President George W. Bush and then-Secretary of > State
> Condoleezza Rice made direct appeals, but the Chinese government did > not
> budge.
>
> It wasn't until Frank cued former Treasury Secretary Henry Paulson > that
> years of work produced results. "I was not getting anywhere," Frank > said.
> "There's one thing they want, and they want Hank Paulson to be nice to
> 'em."
>
> Frank was on vacation in New York when he received word from Paulson > that
> Yang was being released, proving there are times when finding the > right
> emissary works better than direct intervention by a lawmaker, he > said. "It
> doesn't have to be a direct relationship for something to happen," > Frank
> said. "There has to be a chain."
>
> * Rep. David Dreier, R-Calif., received an urgent call from the > California
> Institute of Technology in August 2007: A professor vacationing in > Panama
> failed to return from a late-afternoon run and was reported missing > by his
> wife about 7 p.m. Panamanian officials had told the wife of John > Doyle they
> would have to wait 24 hours to start a search and three days before > calling
> in helicopters to help.
>
> Dreier and his staff contacted the State Department and the U.S. > Embassy
> in Panama City to demand faster action. The lawmaker's pressure led > to a
> search beginning that evening, but it had to be called off around > midnight
> because of heavy rain and fog. By daybreak, several law enforcement
> agencies had joined forces to resume the search through rugged forest
> terrain, assisted by helicopters from a U.S. military team.
>
> The rapid response probably saved Doyle's life. The engineering > professor
> was found around 8:45 a.m. at the bottom of a ravine, with a broken > leg and
> broken ribs. "He had been stuck overnight in very bad weather and in > danger
> of being bitten by the many poisonous snakes indigenous to the > area," said
> Dreier's spokeswoman, Jo Maney.
>
> * A dozen years ago, Rep. Edolphus Towns, D-N.Y., stood beside the
> hospital bed of a Haitian immigrant, Abner Louima, who was > recovering from
> a broken colon and other injuries after he was sodomized and beaten by
> police with a broomstick in a Brooklyn police station bathroom. > Louima had
> been falsely charged with punching a police officer while breaking > up a
> fight outside a nightclub in August 1997.
>
> His story spawned a media firestorm that spurred Towns to his bedside.
> When Towns saw him, fighting for life and surrounded by medical > tubes, he
> asked if there was anything he could do to help.
>
> There was. Louima had not seen his daughter since she was 6 months > old,
> before he left his native country to take a job in Brooklyn. "He > opened his
> eyes and said, 'I would love for you to help me get my daughter in > Haiti. I
> would love for her to come and see me,' " Towns said.
>
> Louima filed paperwork in 1993 to have his daughter join him, but
> thousands of immigrants supporting family in home countries do the > same,
> and the wait is sometimes endless.
>
> Towns pressured the American Consulate in Haiti, and Abnia Samantha > was
> reunited with her father nearly 20 days after the attack. "To watch > him as
> he looked at her," Towns said, "I just felt so good that I was able to
> bring the two of them together."
>
> Louima, who now lives in Miami Lakes, Fla., won an $8.75 million
> settlement in 2001 and started a foundation to help Haitians in New > York,
> Florida and Haiti.
>
> * Even one of the most unwavering proponents of immigration reform is
> willing to be flexible when all legal options have been exhausted for
> someone in need.
>
> Rep. Zach Wamp, R-Tenn., is pushing to allow a 21-year-old disabled
> Honduran man to get relief from a rigid U.S. immigration law and > live with
> a Chattanooga family who has taken care of him since 1999.
>
> Donald and Shirley Reynolds, a couple Wamp knows from a local Baptist
> church, have paid thousands of dollars so Carlos Espinal Castillo, > who was
> born with fetal alcohol syndrome and abandoned by his biological > parents at
> birth, could undergo critical U.S. surgeries.
>
> When the Reynoldses, who have two grown sons, met "Carlitos" in > 1996, his
> disabilities and constant seizures were believed to prevent him from
> reaching his teen years. His first surgery in July 1999 and subsequent
> operations were made possible because Wamp helped secure B-1 medical > visas
> and extensions, the Reynoldses said.
>
> Despite the couple's assistance, Carlitos' future in America is > uncertain.
> In 2006, a Tennessee court approved his adoption by the couple, but > U.S.
> Citizenship and Immigration Services will not recognize the adoption
> because paperwork was filed after he turned 16. At 21, he is > classified as
> an illegal alien.
>
> Wamp's private bill to approve his permanent U.S. residency is stuck > in a
> House subcommittee, though Carlitos is allowed to stay with the > Reynolds
> family while the bill is pending. If Carlitos is forced to return to
> Honduras, Shirley Reynolds said he will not receive the medical care > he
> needs for survival.
>
> Wamp, who has never sponsored a private bill before, said he made the
> exception for Carlitos because his situation is "meritorious," and > there is
> no provision for him under the Immigration and Nationality Act. "He's
> clearly their son," Wamp said. "He's as American as motherhood and > apple
> pie."
>
> * When Rep. Leonard Boswell, D-Iowa, was chatting with the president > of
> the Des Moines-based World Food Prize Foundation, Kenneth Quinn, > some years
> ago, "we got in that conversation -- about Vietnam," Boswell said.
>
> Boswell had served two tours as an assault helicopter pilot, earning
> himself two Distinguished Flying Crosses, two Bronze Stars and the
> Soldier's Medal. Quinn, who later became U.S. ambassador to > Cambodia, spent
> six years in Vietnam with the U.S. Foreign Service, often flying with
> troops to remote outposts because of his knowledge of the jungle > geography.
> Quinn left the country with zero medals.
>
> "It was his responsibility to be out in choppers a lot," Boswell > said. "He
> went in to pick up wounded; he was a scout for the last flight of the
> evening at last light because he knew the terrain. He accumulated a > lot of
> hours. I raised the question, 'Why don't you have a medal?' "
>
> Because the Army has never given one of its medals to a civilian, > Boswell
> learned. Now it has.
>
> Boswell had one of his aides, Alexis Taylor, research records of > Quinn's
> work in combat situations and "found that he had enough to qualify > [for a
> medal] by Army standards," Boswell said. "He should have had maybe > three or
> four clusters to go with it."
>
> Boswell kept pressing the Pentagon, including several conversations > with
> the Secretary of the Army, in a relentless quest that lasted nearly > five
> years. "The Army kept saying they couldn't do it," he said. "At one > point I
> was going to give him one of my medals. He certainly deserved it."
>
> Maybe the specter of seeing a lawmaker present one of his own medals > to a
> constituent forced the Army's hand. Whatever the reason, Quinn was
> presented with the Army Air Medal at ceremonies in Washington and Des
> Moines in January.
>
> * In another missing-medal case, Rep. Mike Rogers, R-Mich., was
> dumbfounded when he learned that an Iraq war veteran in his > district, Sean
> Knudsen, had been designated as disabled by the Veterans Affairs > Department
> but ruled ineligible for a Purple Heart by the Defense Department.
>
> Staff Sgt. Knudsen spent 16 years in the Michigan National Guard and > took
> shrapnel in his head, arm and shoulder in February 2005 when his > convoy in
> Iraq was attacked. His health records were clear -- he was wounded > in Iraq
> -- and he was recommended for the Purple Heart by his field commander.
>
> But when Knudsen returned home and asked why he had not received the > medal
> awarded for combat casualties, the Army said he didn't qualify, said > Rogers
> spokeswoman Sylvia Warner.
>
> Rogers got involved and was told by the Army that it had no records of
> Knudsen's injuries. The health reports were submitted again, but still
> Rogers was stonewalled. Finally, after CBS News made inquiries at > Rogers'
> urging, and the House Veterans Affairs Committee began > investigating, the
> Army suddenly found the documentation, Warner said.
>
> Knudsen received his medal in May 2007 at a special ceremony in the > state
> Capitol in Lansing.
>
> * The father of Jamie Leigh Jones, a civilian contractor in Iraq who > was
> gang-raped by co-workers in 2005, made a desperate call for help to > Rep.
> Ted Poe, R-Texas, shortly after his distraught daughter told him > about the
> assault.
>
> Poe and his staff went to work calling the State Department to find > the
> right contact in Baghdad, sparing Jones' father the stress of > dealing with
> the Washington bureaucracy and sped her return home. Jones went > public with
> her story in 2007, and she and Poe testified before a House > committee later
> that year.
>
> Poe is the founder and co-chairman of the Congressional Victim's > Rights
> Caucus. He said of all the cases his office receives, Jones' is the > most
> significant because it was a matter of life or death.
>
> "It's just as important to take care of people even more so than it > is to
> get certain pieces of legislation passed," Poe said. "As the saying > goes,
> call your congressman."
>
>
> http://www.nationaljournal.com/congressdai...090306_6289.php
>
> -----
> HEALTH: MONEY ALONE WILL NOT CURE SYSTEM, OBAMA WARNS LIBERALS
> By George E. Condon Jr. with Anna Edney contributing
>
>
> President Obama's healthcare summit concluded Thursday with a great > show
> of comity and consensus among groups that have traditionally fought > over
> reforming the nation's health system.
>
> But it also included the president's unusual warning to liberals > that just
> throwing money at the problem would not cure it.
>
> "If we don't address cost, I don't care how heartfelt our efforts > are, we
> will not get this done," Obama said. "If people think we can simply > take
> everybody who is not insured and load them up in a system where > costs are
> out of control ... we will run out of money."
>
> To be certain that this message reached its intended audience, he > spelled
> it out: "I'm talking to you liberal bleeding hearts out there. Don't > think
> we can solve this problem without tackling costs. And that may make > some in
> the progressive community uncomfortable. But it's got to be dealt > with."
>
> There were few public signs of the deep divisions that have marked the
> issue for years, or of the bitter legislative struggle that almost > surely
> lies ahead. The public comments that ended the summit were in sharp
> contrast to 15 years ago, when then-President Bill Clinton's push to
> overhaul the healthcare system was pronounced dead on arrival.
>
> Obama's summit was designed to provide three aspects that were missing
> from that effort -- transparency, early congressional involvement and
> consultation with business groups.
>
> The difference was noted by Tom Donohue, president of the U.S. > Chamber of
> Commerce and a fierce opponent of Clinton's attempt. "We're going to > play
> in this deal," he said. "We're going to get some kind of an > agreement here,
> whether it's two thirds of what everybody wants or three quarters of > what
> everybody wants or who knows."
>
> Donohue said business groups have to participate because, "if you > don't
> get in this game, then ... you're on the menu."
>
> Also in the game were the creators of the "Harry and Louise" > television ad
> campaign that was so effective in undermining public support for > Clinton's
> healthcare proposal. The group, America's Health Insurance Plans, was
> represented at the summit by CEO Karen Ignagni.
>
> When she was called on by Obama, Ignagni said, "We want to work with > you.
> We want to work with members of Congress on a bipartisan basis > here." She
> told the president, "You have our commitment to ... help pass > healthcare
> reform this year."
>
> Emotionally, the high point of the summit came when Obama entered > the East
> Room accompanied by Sen. Edward Kennedy, D-Mass., whose appearances at
> public events have been severely limited during his battle with brain
> cancer. Noting the presence of those on both sides of past fights, > Kennedy
> said he is "looking forward to being a foot solider in this > undertaking."
> To applause, he added, "And this time we will not fail."
>
> The president was more cautious, promising that the White House will > work
> to build on the momentum created by the summit and pledging to be > open to
> outside ideas even if they differ from what he proposed during the
> campaign. "In the coming days and weeks we'll be convening a series of
> meetings with senior administration officials here at the White > House to
> further explore some of the key issues that were raised today and to > bring
> more voices into the conversation," he said.
>
> In remarks kicking off the summit earlier in the day, Obama said he > hoped
> an overhaul of the healthcare system could be wrapped up this year. > Senate
> Democrats say they hope to mark up legislation in June, while House
> Majority Leader Hoyer said he was aiming for his chamber to finish > the bill
> before the August recess.
>
> A bipartisan group of House moderates reintroduced legislation the > same
> day to provide universal coverage and separate healthcare coverage > from
> employment, and aims to be budget neutral by 2014.
>
> Reps. Anna Eshoo, D-Calif.; Jo Ann Emerson, R-Mo.; Jim Cooper, D-> Tenn.;
> Michael Castle, R-Del.; Debbie Wasserman Schultz, D-Fla., and Jane > Harman,
> D-Calif., introduced the bill, which mirrors one by Sens. Ron Wyden,
> D-Ore., and Robert Bennett, R-Utah. The bill does not have the > support of
> Democratic leaders on health care in either chamber because it > eliminates
> employer-sponsored coverage and instead provides tax subsidies for > people
> to purchase coverage.
>
>
> http://www.nationaljournal.com/congressdai...090306_9407.php
>
> -----
> DEFENSE: COMMITTEE FORMS CONTRACT REFORM PANEL
> By Megan Scully
>
>
> The House Armed Services Committee has created a seven-member > bipartisan
> panel to take a stab at reforming the Pentagon's weapons-buying > process,
> Rep. John McHugh, the committee's top Republican, said in an interview
> Thursday.
>
> Problems with defense weapons development and procurement contracts > have
> been receiving top-level attention, most recently from President > Obama, who
> announced Wednesday that he wants to change the way the government > -- the
> Defense Department and military services, in particular -- does > business to
> save as much as $40 billion annually.
>
> Obama's remarks came on the heels of last week's introduction of
> legislation by Senate Armed Services Chairman Carl Levin and ranking > member
> John McCain that aims to rein in the ever-growing costs of the > military's
> weapons programs.
>
> "The chairman [Rep. Ike Skelton] and I discussed it over the last > several
> days and he and I are fully in agreement that we want to be positive > role
> players in this and our committee wants to be actively engaged," > McHugh
> said. A formal announcement about the formation of the new panel is
> expected today.
>
> McHugh, who took over as the committee's ranking member in January, > said
> members of the new panel will review the Senate bill, but may devise > their
> own list of reforms.
>
> "Our objective ... is to come up with some suggestions that we could > work
> on together on both sides of the aisle and hopefully with the Senate > to
> affect some real reform and hopefully make some progress," McHugh > said.
>
> The panel has not been given any time constraints, but McHugh > acknowledged
> that there will be efforts to enact the reforms this year.
>
> "We don't want to be left at the gate, so there is some urgency," > McHugh
> said. "But at the moment, as we start I think both the chairman and > I are
> concerned about quality of product rather than quickness."
>
> During the wide-ranging interview, McHugh said the Pentagon's FY10 > budget
> request, the details of which will not be available until April, > will be
> his top priority this year.
>
> McHugh said he is particularly concerned about providing adequate
> equipment for the additional 17,000 U.S. troops deploying to > Afghanistan.
>
> The Bush administration went to war in Iraq "on the cheap and we've > got to
> do everything we can to make sure we don't repeat those kinds of > mistakes,"
> McHugh said. "You can't just throw forces at this. It has to be a very
> holistic approach. Those enablers and those support platforms are > critical
> to the success and safety of our troops."
>
> McHugh, who has been to the White House twice in the last two weeks, > said
> he believes Obama has "every intention" of providing adequate > resources to
> the deployed forces.
>
> Meanwhile, McHugh said Republicans have been "encouraged" that Obama's
> decisions on national security issues have been made in a "very > productive
> way." He cited, in particular, the president's announcement last > week that
> he would pull combat troops out of Iraq by August 2010 but that the
> schedule could change if security there deteriorates.
>
> McHugh also applauded Obama's decision to retain Defense Secretary > Gates,
> as well as the president's interest in getting information from > military
> commanders before making major decisions.
>
> "The process by which you make a controversial decision can > oftentimes be
> as important, if not more so, than the decision itself," McHugh > said. "So
> this president has started off in this area of defense on a pretty > good
> foot, from our perspective."
>
> Still, there will almost certainly be disagreements over the details > of
> the Pentagon's FY10 budget request, particularly as Gates and others > warn
> that difficult decisions will be made on funding for some of the > military's
> most expensive weapons programs.
>
> McHugh signaled he would be opposed to scaling back ballistic missile
> defense, including efforts to cut funds for radar and missile > launchers in
> Eastern Europe.
>
> "I'm not sure how we would explain to the American people if, in the
> not-too-distant future, we or our allies ... suffer a strike from > that kind
> of threat because we didn't make the investments necessary now to > ensure
> those programs matured and are up and running," McHugh said.
>
>
> http://www.nationaljournal.com/congressdai...090306_4872.php
>
> -----
> TAXES: CENTRISTS WORRY ABOUT BUDGET'S IMPACT ON SMALL BUSINESSES
> By Peter Cohn
>
>
> Centrist lawmakers from both parties are expressing unease over the > impact
> of President Obama's budget plan on small business, a politically
> sacrosanct group that appears to have no easy definition.
>
> Beginning in 2011, Obama's budget would raise about $1 trillion in > taxes
> on wealthier earners, defined as individuals making more than > $200,000 and
> households pulling in at least $250,000. Treasury Secretary Geithner > fanned
> out across the Capitol this week to defend the budget against tough > GOP
> criticism, continually pointing out that only a tiny percentage of
> small-business owners would get hit with a tax increase.
>
> "Now, I just want to pause here for one second," Geithner told the > House
> Budget Committee Thursday, his third appearance on Capitol Hill in > three
> days. "Those proposed changes in tax rates would apply to only 2 to 3
> percent of small-business owners across the country, only 2 to 3 > percent.
> Ninety-five percent of small-business owners ... have incomes below > that
> threshold of $250,000."
>
> The figures aren't exactly clear to most members of Congress either,
> including lawmakers on the tax-writing panels that will ultimately > have to
> shepherd Obama's proposals.
>
> A staunch small-business advocate, Sen. Blanche Lincoln, D-Ark., > said she
> remains unclear about the impact of Obama's tax increases. "We > haven't seen
> too much detail on that," she said. "I'm still trying to verify that,"
> added Senate Small Business ranking member Olympia Snowe, another > key swing
> vote.
>
> Geithner appears to be using data compiled by the Tax Policy Center, a
> joint venture of the Brookings Institution and Urban Institute. > According
> to a Feb. 25 analysis, about 4.2 million tax filers reporting
> small-business income -- defined as income from a sole > proprietorship, farm
> proprietorship, partnership, S corporation or rental income -- earn at
> least $200,000, out of 150.2 million total tax filers. That amounts to
> about 2.9 percent, which tracks with Geithner's testimony.
>
> The numbers "can cut both ways," a Democratic aide said. Using TPC > data,
> Ways and Means ranking member Dave Camp estimated more than 3 > million small
> businesses earning more than $250,000 would see a tax increase.
>
> Calculated another way, only 663,000 out of 34.2 million tax filers
> reporting business income fall into the 33 percent and 35 percent tax
> brackets, the TPC found, which comes out to about 1.9 percent -- > another
> figure used by Geithner. Under Obama's budget, those brackets would > snap
> back to the pre-2001 rates of 36 and 39.6 percent, respectively.
>
> On the other hand, Republicans cite a 2007 Treasury Department > analysis
> that pegged the number of small business tax filers in the top two > income
> brackets at 2.1 million, or 8 percent of the total 27.5 million. > Similar to
> TPC data, Treasury defines small businesses as those taxed at the
> individual level after earnings flow through to the owner. When the > top
> 39.6 percent tax rate was lowered to 35 percent in 2001, 75 percent of
> those benefiting were small businesses, the Treasury report says.
>
> Rep. Ron Kind, D-Wis., a member of the Ways and Means Committee, > said he
> was waiting for some clarity on the figures but remains concerned > about the
> impact on small business.
>
> "They're the ones that are going to be able to expand and hire > faster than
> anyone ... so I think we ought to be sensitive," Kind said. "If you > talk to
> either side, you get two different worldviews. I heard some of my
> Republican colleagues say 75 percent of small businesses are going > to get
> smacked by a tax increase, and yet you talk to Geithner and people at
> Treasury, and they say 1.9 percent of small businesses."
>
> Kind appeared to be leaning toward his party's definition arguing
> Republicans have taken a more expansive approach. "They include in the
> definition of small business the CEO on a board getting > compensation. ...
> The fact that [former] President [George W.] Bush is still receiving > some
> oil royalties from his old business; he's considered a small > business under
> their definition," Kind said. "That's clearly not what anyone in my > area of
> Wisconsin would consider a small business."
>
> For Republicans, the issue is not what percent of small-business > owners
> would be impacted. It is the jobs that could be lost, as Finance > ranking
> member Charles Grassley, and Sens. Orrin Hatch of Utah and Pat > Roberts of
> Kansas told Geithner at a hearing Wednesday.
>
> They cited a National Federation of Independent Business survey that > notes
> the percentage of small-business owners earning $200,000 or more rises
> steadily with the number of employees, to the point where 40 percent > of all
> owners with between 20-249 employers fall into that category. By that
> trend, a sharply higher percentage of owners employing up to 500 > workers
> must earn more than $200,000, the logic goes.
>
> "This is the worry that I get back from my constituents, from the
> small-business folks. They worry that in order to pay this > additional tax
> burden, they may have to lay off workers, reduce wages or benefits, > not
> hire new employees, pass these costs on to their customers," Roberts > said.
> "None of these are good options."
>
>
> http://www.nationaljournal.com/congressdai...090306_3734.php
>
> -----
> JUDICIARY: CRAM-DOWN FIGHT SHIFTS TO SENATE, WITH FAMILIAR ADVERSARIES
> By Bill Swindell
>
>
> After dueling over competing proposals a year ago, Senate Majority > Whip
> Durbin and Senate Judiciary ranking member Arlen Specter will be at it
> again as they wrangle over legislation to give bankruptcy judges the > power
> to restructure home mortgages, including writing down the principal.
>
> Durbin is pressed to move the bill after the House on Thursday > passed its
> version that would allow borrowers to have their mortgages > restructured
> through a Chapter 13 filing, just like other consumer debt such as > second
> homes, autos and boats. Despite strong opposition from the banking
> industry, the House voted 234-191 to approve the measure that > proponents
> say will help stem the foreclosure crisis by forcing lenders to > voluntarily
> modify their loans under threat of having a judge reduce the > principal of
> the loan to current fair market value.
>
> The Mortgage Bankers Association reported Thursday that more than 11
> percent of borrowers are behind in their mortgage or in foreclosure.
>
> Seven Republicans voted for the bill, while 24 Democrats opposed it.
>
> Banks are loath to write off such losses because it would have to > show up
> on their hemorrhaging balance sheets. But they have argued that the > measure
> would bring more uncertainty to the mortgage market and result in > higher
> interest rates.
>
> Looking to assuage the fears of the Blue Dog Coalition and New > Democrats,
> House Judiciary Chairman John Conyers tweaked his bill to pick up > support,
> limiting the bill to existing loans and requiring borrowers to > notify their
> lenders at least 30 days in advance before filing. Those conditions > got
> Citigroup Inc.'s approval for the measure. The measure would allow > banks to
> recoup any profits -- based on a sliding scale -- if the homeowner > sold the
> house.
>
> But the key concession to bring the bill to the House floor was > language
> that would require judges to consider whether homeowners were > offered a
> "qualified" loan workout similar to that proposed by the Obama
> administration, which would lower interest rates for up to 9 million
> borrowers and set their monthly payments to 31 percent of their > income.
>
> But the banking industry wanted more, specifically language that would
> require a judge to place borrowers into the Obama plan or something > similar
> if they qualified, and exclude them from a principal reduction, > which is
> known as a "cram-down." That stance appears to be the industry's > line in
> the sand.
>
> "The revised language only uses the president's plan as a guideline > for
> the courts to follow, not a limitation on what type of loans the > courts can
> cram down or what the courts can do to those loans," said Ryan > Donovan,
> vice president of legislative affairs at the Credit Union National
> Association. "We will not be able to support the bill even with this
> language."
>
> Durbin is attempting to retain as much of the House language as he can
> while trying to secure 60 votes to prevent a filibuster. Last year, > the
> Senate voted 58-36 to table a Durbin measure that would give judges > wider
> latitude to restructure debt than the House bill. Eleven Democrats > defected
> to vote "no" along with all Republicans.
>
> "We could take it up as soon as next week, but nothing [is] > finalized,"
> said a Senate Democratic aide. "Don't have a count yet -- we'll wait > to see
> what the final language the House sent, but I'd imagine some changes > on our
> side."
>
> With the foreclosure crisis worsening, an expanded Democratic > majority and
> Obama administration willing to sign the bill, Senate proponents > believe
> that they have the wind at their backs this year. But last year's vote
> shows that Durbin will almost certainly need Specter's help to move > the
> bill. The two bickered last year over the issue, with Specter, whose
> Judiciary panel has jurisdiction over the issue, saying judges > should have
> authority to reduce interest rates, but not the principal.
>
> Specter was a key member with centrists in crafting a compromise to > clear
> the $787 billion stimulus package. He is gearing up for a re-election
> battle and could find a conservative challenger in the primary.
>
> Specter said he continues "to think it's a bad idea" because it would
> discourage future lenders. Specter cited as his preferred approach > his own
> bill to allow bankruptcy judges to alter the interest rate but not the
> principal of mortgages.
>
> He indicated that preventing alteration of the principal is a key > issue
> for him, but that he is talking to Senate Democrats about changes to > the
> House-passed bill. "We're gonna see if [we can reach] an > accommodation," he
> said.
>
> But first Durbin has to get all of his fellow Democrats on board. "I'm
> skeptical at this point," said Sen. Claire McCaskill, D-Mo., who > voted to
> table the Durbin measure last year. She added that she is concerned > about
> unintended consequences.
>
> Sen. Thomas Carper, D-Del., whose state has a large banking > presence, said
> he would like to see it focused on subprime loans as much as possible.
> Carper voted to take up the bill last year.
>
> The House bill also contains language to make it easier to qualify > for the
> Hope for Homeowners program established last year so at-risk borrowers
> could refinance into 30-year fixed mortgages backed by the FHA. And it
> provides additional legal protections for servicers who modify risky > loans.
>
>
> http://www.nationaljournal.com/congressdai...090306_7866.php
>
> -----
> GOVERNMENT OPERATIONS: SENATORS, GAO CITE URGENT NEED TO FILL TOP > CENSUS
> POST
> By Jeannette Lee
>
>
> Sens. Thomas Carper, D-Del., John McCain, R-Ariz., and others on the
> Senate Homeland Security and Governmental Affairs Federal Financial
> Management Subcommittee are urging the president to nominate a Census
> Bureau director, pronto.
>
> With just a year until the decennial count, the bureau has yet to
> thoroughly test new technologies, is thin on staff and is far from > solving
> the long-standing problem of undercounting ethnic minorities, a GAO
> official told the panel at a hearing Thursday.
>
> Given the tight deadlines, the leadership vacuum at the Census Bureau
> badly needs filling, said Carper, the subcommittee chairman.
>
> "Uncertainties surround the bureau's readiness for 2010," testified > Robert
> Goldenkoff, director of strategic issues at GAO. "They are under the > gun."
>
> Goldenkoff and five other witnesses said a good troubleshooter at > the helm
> would be key to pulling off what is slated to be the country's most
> expensive national headcount to date. Former Census Bureau Director > Barbara
> Bryant urged the subcommittee to "do everything in your power and > use your
> influence on the administration" to get a new director.
>
> Carper asked each witness to recommend two prospects by the close of
> business today "who you think are well-equipped to do this job." > Carper
> said he would forward the names to Commerce Secretary-designate Gary > Locke,
> White House Chief of Staff Emanuel, and "probably" to Vice President > Biden,
> Carper's former fellow senator from Delaware.
>
> "Maybe the administration has its own candidates," Carper said, but > "we'll
> submit a talent pool in case they need help in that regard." Carper > told
> CongressDaily he didn't have any nominees in mind, but "we know > there are
> good people out there."
>
> Undercounts in the census are a particularly thorny issue because of > the
> federal dollars and political districting at stake. The 2000 census > failed
> to document 3.3 million people, most of them minorities and the > urban poor.
> McCain said Arizona missed out on millions in federal dollars for > public
> projects as a result.
>
> Uncertainty over the total cost of the census is another major > problem.
> The number stands at a tentative $14 billion, but the bureau does > not have
> the policies or the staff to produce "high-quality" cost estimates,
> according to a GAO report released at the hearing.
>
> At a House hearing earlier Thursday, the bureau's acting director, > Thomas
> Mesenbourg, promised to "provide better analysis and documentation" of
> costs. He said most of the $1 billion given to the bureau in the > recently
> enacted economic stimulus package will go toward advertising and > community
> partnerships, which he said are crucial in getting people to respond.
>
> The 2010 census will really start rolling on March 30 when 140,000 > bureau
> employees start going door-to-door to check the accuracy of 145 > million
> addresses, Mesenbourg said.
>
> Census-takers will be using hand-held computers, which became
> controversial last year, to record addresses and GPS coordinates for > most
> homes, he said. Citing huge cost overruns by the contractor > supplying the
> devices, the bureau last year scrapped plans to use them for more > extensive
> data collection from households that do not initially respond to > mailed
> questionnaires.
>
>
> http://www.nationaljournal.com/congressdai...090306_3607.php
>
> -----
> ENERGY: REID UNVEILS EXPANDED STRATEGY FOR NATIONWIDE NETWORK
> By Darren Goode
>
>
> Senate Majority Leader Reid Thursday unveiled an expanded strategy for
> creating a nationwide transmission network for solar, wind and similar
> power sources.
>
> Reid added language to a bill he offered last Congress regarding
> transmission planning, siting and cost allocation, which will be > three of
> the toughest issues that need to be worked out before a network is > set up.
>
> Senate Energy and Natural Resources Chairman Jeff Bingaman will > establish
> a renewable transmission network in an energy bill his panel is > expected to
> take up late this month. Such a network is tied to a renewable > electricity
> production mandate Bingaman, President Obama and other Democratic > leaders
> are pushing.
>
> Reid's bill would set deadlines for regional plans to be submitted > to the
> Federal Energy Regulatory Commission before FERC would have the > backstop
> authority to set up its planning process. His bill would institute a
> surcharge on transmission customers to cover costs of regional > planning
> groups and states involved in the planning.
>
> It also allows developers to apply to FERC for federal siting > authority
> for green transmission projects instead of relying on state-by-state
> processes. States that participate in the planning process would be
> guaranteed more say with FERC in these siting decisions. FERC would be
> given the right to determine how costs of a network are allocated if > states
> and other participants are not able to agree.
>
> Largely echoing his previous bill, Reid requires the president to > set up
> renewable energy zones that can produce at least 1 gigawatt of > electricity
> from renewable sources, defined to include solar, wind, geothermal,
> biomass, biogas, incremental hydroelectric capacity and hydrokinetic
> resources. Western states, including Reid's home state of Nevada, > have a
> head start in identifying ways to create these types of zones.
>
>
> http://www.nationaljournal.com/congressdai...090306_9554.php
>
> -----
> APPROPRIATIONS: DEMS POSTPONE OMNIBUS VOTE TO ALLOW MORE AMENDMENTS
> By Humberto Sanchez and Dan Friedman
>
>
> Senate Democratic leaders Thursday night postponed a vote to cut off
> debate on a $410 billion omnibus appropriations bill after realizing > they
> did not have the 60 votes needed for passage.
>
> Republicans said they wanted more time to offer amendments and "as a
> result of that we would probably come up a vote short of being able to
> invoke cloture," Majority Leader Reid said.
>
> Democrats have 58 members in the Senate and would need two > Republicans to
> cross party lines.
>
> Reid said he expects the House to send the Senate a new continuing
> resolution that would expire at midnight Tuesday. The current CR -- > which
> funds at FY08 levels the programs covered by the nine FY09 spending > bills
> in the omnibus -- expires at midnight tonight.
>
> Reid added he hopes to get Republican agreement to vote late Monday on
> about 10 or 12 amendments and then hold a cloture vote.
>
> Sen. David Vitter, R-La., was assured that his amendment would be
> considered, after he objected to Reid's attempt to seek an agreement > to
> postpone the cloture vote and move debate into next week. Vitter's
> amendment would require votes on future congressional cost-of-living > pay
> increases.
>
> Reid made it clear that he hoped by allowing amendments to win support
> from a few Republican appropriators who sided with Democrats this > week to
> vote down many amendments aimed at stripping spending from the bill, > but
> who had suggested they would oppose cloture because more amendments > were
> not allowed.
>
> That group includes Sens. Arlen Specter, R-Pa., Lamar Alexander, R-> Tenn.,
> and Lisa Murkowski, R-Alaska. Reid is seeking a cloture vote from Sen.
> Susan Collins, R-Maine, who said after the session Thursday that she > had
> planned to vote against cloture.
>
> Specter, Alexander, Murkowksi and Collins said in separate interviews
> Thursday night that they would review the amendments Reid allows > before
> deciding how to vote on cloture. Alexander and Murkowski indicated > they
> were more likely to back cloture now. A key amendment for many > senators was
> one to preserve a school voucher program in Washington, D.C., > offered by
> Sen. John Ensign, R-Nev. Republican aides said they expected Reid > could
> easily line up 60 votes now that he has allowed additional amendments.
>
> Democratic leaders worked especially hard ahead of the scheduled > cloture
> vote to secure backing from Sens. Bill Nelson, D-Fla., and Robert > Menendez,
> D-N.J., on Cuba language through assurances issued by the Treasury
> Department. The bill would loosen visitation limitations to that > nation by
> Cuban-Americans.
>
> The omnibus would increase spending by $32 billion, or 8 percent, over
> FY08, which Republicans said was unnecessary given enactment last > month of
> the nearly $788 billion economic stimulus, which provided funding > for many
> of the same agencies that would be funded under the omnibus.
>
> In the face of concern from the banking industry, several senators > reached
> an agreement Thursday to alter through future legislation a > provision in
> the omnibus that allows the FTC to crack down on predatory mortgages.
>
> Banking groups are lobbying against it, arguing financial > institutions are
> regulated by entities other than the FTC and the measure would create
> confusion and lead to an explosion of lawsuits.
>
> "Our intent is at the earliest possible time we will have > legislation to
> correct what is in this bill," Banking Chairman Christopher Dodd said
> Thursday. "And change [it]."
>
> Sen. Mike Crapo, R-Idaho, offered an amendment to eliminate the > provision,
> which was inserted by Senate Democratic Policy Committee Chairman > Byron
> Dorgan of North Dakota. The amendment was expected to fail. Crapo > withdrew
> it after reaching an agreement with Dodd and Appropriations Chairman > Daniel
> Inouye.
>
>
> http://www.nationaljournal.com/congressdai...090306_2628.php
>
> -----
> TRANSPORTATION: HOUSE TRANSPORTATION PANEL MOVES FAA REAUTHORIZATION
> By Andy Leonatti
>
>
> Despite Republican objections to provisions targeting labor and
> maintenance issues, the House Transportation and Infrastructure > Committee
> on Thursday unanimously passed reauthorization legislation for the > FAA.
>
> The bill is similar to a reauthorization measure that passed the House
> last year but died in the Senate.
>
> The legislation contains several consumer protection measures, > including
> requiring airlines and airports to have plans for allowing > passengers to
> deplane following excessive delays.
>
> The bill also maintains the ban on the use of cell phones during > flights.
>
>
> http://www.nationaljournal.com/congressdai...090306_3529.php
>
> -----
> PEOPLE: PEOPLE
> By Winter Casey
>
>
> TRADE REP. Timothy Keeler has joined Mayer Brown's Washington office > as
> counsel in the government and global trade practice. Keeler served > as the
> chief of staff for former U.S. Trade Representative Susan Schwab and > worked
> for the Treasury Department's Office of Legislative Affairs.
>
> TAX HAPPY. Ryan McCormick, who has joined Sen. Bill Nelson, D-Fla., > as tax
> counsel, says taxes have been in his blood ever since he spent two &g

[Snuffysmith]

>
>
> CongressDaily PM for Friday, March 6, 2009
>
> --------------------
> CONTENTS
>
> APPROPRIATIONS: ON SPENDING, GOP SETS UP TOUGH VOTES ON AMENDMENTS
> By Humberto Sanchez and Dan Friedman
>
>
> The Senate is on track to vote Tuesday on a $410 billion omnibus > spending
> bill after Congress today passed stopgap spending legislation to > continue
> funding most government programs at FY08 levels through Wednesday. > The need
> for the new continuing resolution came after Senate Democratic leaders
> Thursday night postponed a vote to cut off debate on the omnibus, > realizing
> they did not have the 60 votes needed for passage. The CR will give
> Republicans a chance to offer 12 more amendments, which Senate > Majority
> Leader Reid believes will be enough to win the 60 votes needed to > cut off
> debate. The current CR, which funds the programs covered by the nine > FY09
> spending bills in the omnibus, expires at midnight tonight.
>
> The 12 amendments will be voted on Monday evening and Tuesday, when > the
> Senate is expected to vote to cut off debate and then vote on final
> passage. In an indication Democrats expect the cloture vote to be > tight,
> Reid said Sen. Edward Kennedy, D-Mass., who is spending most of his > time in
> Florida as he fights brain cancer, will be on hand for next week's > vote.
> While the delay is designed to help ensure passage of the bill, it > carries
> a cost for Democrats. Although the amendments will likely be > defeated, the
> votes will be politically tough for many Democrats, GOP aides > argued. For
> example, Republicans will force Democrats again to defend earmarks > in the
> measure and take positions on hot-button issues like aid to > Palestinians in
> Gaza. Particularly uncomfortable will be a vote on an amendment by > Sen.
> David Vitter, R-La., to repeal a provision giving members of > Congress an
> automatic pay raise. Other amendments include a proposal from Sen. > John
> Ensign, R-Nev., which would strike language prohibiting the use of > omnibus
> funds for the District of Columbia's school voucher program before > it is
> reauthorized, which Republicans claim would kill the program.Looking > for
> more?
> For more information and past stories about the omnibus and the
> appropriations process, see our Appropriations page.
>
> The delay forced Reid and House Speaker Pelosi to back off their
> assertions that failure to pass the omnibus this week could force a
> government shutdown after the current CR expires. Sen. John McCain,
> R-Ariz., today mocked that claim as "high drama at its best." Reid's
> struggle to round up 60 votes underscores the slog Democrats face > getting
> the president's budget and other expensive bills through the Senate, > as
> Republicans appear to make headway with moderate Democrats by > hammering the
> majority for its spending plans. GOP aides are faulting as "too > expensive"
> a bill the Senate is preparing to take up that would allow bankruptcy
> judges to adjust principals of mortgages. Reid said today he decided > to
> allow the amendments after multiple Republicans who had agreed to > vote for
> cloture in an 8:15 p.m. vote Thursday told him they had changed their
> minds. "A number of my Republican friends called me and said, 'We > think we
> need more amendments. We know that we said we were going to vote to > end
> debate, but we feel there's more debate [needed]; ... No one broke > their
> word to me. It was just a misunderstanding," he said.
>
>
> http://www.nationaljournal.com/congressdai...090306_1486.php
>
> -----
> FINANCE: OMNIBUS PROVISION ON BANKS IS BIG WIN FOR REALTORS
> By Bill Swindell
>
>
> The National Association of Realtors has scored a major victory in the
> FY09 omnibus appropriations bill by securing a provision that would
> permanently prohibit banks from entering into real estate > activities. The
> language is a significant accomplishment for the group in its eight-> year
> battle to keep the banks out of their business, which is itself > undergoing
> change as new Web-based startups look to make inroads by offering > lower
> commissions. It also reflects the political pull that NAR continues > to have
> with its 1.2 million members and its PAC, which was the largest > giver in
> the last political cycle, providing $3.9 million to federal > candidates.
> Fifty-seven percent went to Democrats, while outside expenditures > played a
> critical role in helping House Financial Services Capital Markets
> Subcommittee Chairman Paul Kanjorski, D-Pa., keep his seat through an
> effective TV ad campaign. According to the Center for Responsive > Politics,
> the money also went to Republicans who were supportive of the > industry,
> including $10,000 each to the affiliate PACs of Senate Appropriations
> ranking member Thad Cochran and Senate Banking ranking member Richard
> Shelby, who is also an appropriator.
>
> With passage of the omnibus stalled in the Senate until early next > week,
> NAR officials said they did not want to comment on the language > until the
> spending bill was enacted. The 1999 Gramm-Leach-Bliley Act removed > barriers
> for banks to enter the securities and insurance industries but not > real
> estate development, where banks could face a conflict of interest as > both
> owner and lender. Yet the act did allow the Treasury Department and > Federal
> Reserve to update a list of permissible activities for national > banks. In
> 2001, federal regulators proposed a rule allowing banks to enter > into real
> estate brokerage and management activities, but lawmakers inserted a > rider
> into annual appropriations legislation each year to block the rule. > NAR has
> pitched a stand-alone bill as well, picking up the support of a > majority of
> House members in recent years, but neither Senate Banking Chairman
> Christopher Dodd nor House Financial Services Chairman Barney Frank > were
> willing to act on it. The provision also represents another defeat > for the
> battered banking industry, which lost Thursday when the House passed > a bill
> that would give bankruptcy judges the power to restructure the terms > of
> home mortgages, and banks continue to battle criticism of their > handling of
> Troubled Asset Relief Program money.
>
>
> http://www.nationaljournal.com/congressdai...090306_2448.php
>
> -----
> BUDGET: HILL VETERAN SEES PITFALLS IN USING BUDGET RECONCILIATION
> By Peter Cohn
>
>
> Using the fast-track reconciliation process to force through > comprehensive
> healthcare or climate change bills with limited debate and only a > majority
> vote carries numerous risks for Democratic leaders, a Capitol Hill > budget
> veteran said today. Cigna Corp. Vice President for Public Policy Bill
> Hoagland said a number of problems are built into using reconciliation
> instructions as an option and predicted Democratic leaders might > include
> them in the budget only as a threat to bring the GOP to the > negotiating
> table. Chief among them is the Byrd rule in the Senate, named for Sen.
> Robert Byrd, D-W.Va., who in 1993 stymied inclusion of then-First Lady
> Hillary Rodham Clinton's health plan in reconciliation. Byrd thought > the
> issue was too important to be included in an expedited bill with > only 20
> hours of debate. Hoagland agreed then and again in 2002, when he > advised
> his then-boss, former Senate Majority Leader Bill Frist, R-Tenn., > not to
> include the Medicare prescription drug bill in reconciliation. That
> contentious measure ultimately prevailed with 60 votes.
>
> In the 1980s, Byrd used his perch as Democratic leader to stipulate > that
> any "extraneous" matter without a budgetary effect could be stricken > from a
> reconciliation bill on a point of order. Hoagland, who served as a > Senate
> GOP budget aide for 25 years until 2007, said on matters of such > magnitude
> as the health and climate bills, senators were certain to challenge > certain
> items as potential "Byrd droppings." Any senator can strike a > particular
> provision on grounds it does not have budgetary consequences, > Hoagland said
> on a call hosted by Capital Alpha Partners LLC, an investment research
> firm. It would take 60 votes for the Senate to overturn the point of > order
> and reinstate the provision. "On something as massive as healthcare > reform,
> there will be a number of provisions that don't have direct budgetary
> consequences ... what the problem would be, if you do not do this in a
> bipartisan manner, those Byrd violations would be made and you'd end > up
> making Swiss cheese out of the legislation" because removal of > seemingly
> innocuous administrative provisions could gut the program. The move > would
> have the effect of forcing another politically difficult vote in the > House,
> such as in late 2005, when then-Senate Budget ranking member Kent > Conrad
> successfully eliminated minor provisions of a $39 billion spending-cut
> reconciliation bill.
>
> Two other problems exist with reconciliation, Hoagland said. The > first is
> that under the Byrd rule, a program can only be established for the > life of
> the bill's budget window, and then must be renewed. "If you do
> reconciliation, there's a time limit on all of it," he said. "Would > you
> want to start something as massive as cap-and-trade if it's going to > sunset
> in five years?" Finally, under the law, three reconciliation bills are
> allowed in each fiscal year: one dealing with spending, one with > revenues
> and one to raise the statutory debt limit. That means Democratic > leaders
> could not produce separate bills for health care and climate change.
> "You're going to have to do cap-and-trade with health care, or one > or the
> other, but probably not both," Hoagland said. Including both in one > bill
> would likely guarantee lawmakers could not pass either of them, > given all
> the different stakeholders involved, he added.
>
>
> http://www.nationaljournal.com/congressdai...090306_6533.php
>
> -----
> JUDICIARY: HIGHER ED GROUPS HAVE MUCH AT STAKE IN PATENT BILLS
> By Andrew Noyes
>
>
> Lobbyists for higher education have bitter sweet feelings about a > pair of
> new bills introduced this week that would overhaul the U.S. patent > system
> and potentially impact research and development on campuses. At first
> glance, the legislation sponsored by Senate Judiciary Chairman Patrick
> Leahy and Sen. Orrin Hatch, R-Utah, along with a companion measure > by House
> Judiciary Chairman John Conyers and ranking member Lamar Smith, > offer a
> mixed bag for colleges and universities, according to Association of
> American Universities Executive Vice President John Vaughn. "We'll > try to
> work on some of the remaining concerns and do so in a way that can > move
> bill the forward," he told CongressDaily, adding that the overall > impact
> will be "beneficial to the system."
>
> Last Congress, the Senate Judiciary Committee passed a Leahy-sponsored
> patent bill that would have allowed challenges to a patent > throughout its
> lifetime. Universities opposed the language on grounds that it would > have
> made licensing patents riskier. The bill never made it to the floor > amid
> strong opposition from some key senators, including Senate Judiciary
> ranking member Arlen Specter.
>
> But the new bills bring back language from a 2007 House bill that > expanded
> the existing system of reexamination -- in which a third party can > ask a
> patent examiner to confirm the patent is deserved -- rather than > introduce
> a second window for review after the Patent and Trademark Office > grants the
> patent. The House language is important to research powerhouses such > as the
> University of California, and Vaughn called the adoption of House > language
> "good news for us." On the other hand, he said, it could open a > window for
> more challenges by including prior "public use or sale in the United
> States" as a basis for challenging a patent, which his group might > have
> problems with.
>
> Vaughn was concerned about the bills' exclusion of an 18-month patent
> publication requirement. Universities favored that language, a
> recommendation of a seminal National Academy of Sciences report, > because it
> embraced "the quid pro quo of the whole patent system," Vaughn said.
> However, the AAU is happy the bills do not include "applicant quality
> submission" language, which the Bush administration saw as a way to > curb
> poor quality and imprecise applications but drew ire from many
> stakeholders. Universities were not on the front lines of the battle > over
> how to calculate the awarding of damages in patent lawsuits, and > they did
> not take a formal position on "inequitable conduct," would have ruled
> patents invalid if owners were not forthcoming to the PTO. The damages
> language remains in the new bills, while inequitable conduct section > has
> been eliminated.
>
> As lawmakers consider the new bills, they may need to shift toward > "a less
> prescriptive statutory approach" to damages to win over some > detractors,
> Vaughn said. Conversations about "gatekeeper" language, which would > have
> given more explicit instructions to courts on how to handle damages, > were
> part of the Senate Judiciary Committee's negotiations last Congress > but
> were not incorporated into Leahy's bill. Because the damages section > would
> affect different sectors in such different ways, "there is simply no
> possibility of an optimal solution" under the language as currently
> written, he said. Like Hatch, Vaughn believes some type of inequitable
> conduct language should be reinserted. "If someone deliberately > misinforms
> the PTO, there should be consequences," he said. "The practical > reality is
> that the system has been abused, is subjective, and has generated so > much
> litigation."
>
>
> http://www.nationaljournal.com/congressdai...090306_9460.php
>
> -----
> GOVERNMENT OPERATIONS: TOWNS PLANS EXTENSIVE FIELD HEARINGS TO REVIEW
> STIMULUS
> By Carrie Dann
>
>
> House Oversight and Government Reform Chairman Edolphus Towns has
> announced that his panel will trek to districts nationwide for field
> hearings on how federal stimulus dollars are being spent. "I want to > hear
> from people on the front lines -- our state and local officials and > our
> community leaders -- about the effectiveness of this stimulus > package,"
> Towns said in a statement Thursday. The first hearing is scheduled > to be
> held in Towns' home district of Brooklyn, N.Y., April 20. New York
> Democratic Gov. David Paterson and New York Mayor Michael Bloomberg > will be
> invited to testify on their plans for the state's $24.6 billion > allotment
> of stimulus spending. The committee also plans to invite California
> Republican Gov. Arnold Schwarzenegger to testify at a second hearing,
> tentatively scheduled for June in an as-yet undetermined district in > the
> Golden State. Other sessions will be scheduled as hotspots flare, a
> spokesman for Towns said today, with members of both parties invited > to
> suggest where to hold full or subcommittee hearings.
>
> Republicans, who have griped that Democrats have been sluggish in > efforts
> to oversee the flood of federal dollars, applauded the notion of > increased
> oversight of the stimulus program but emphasized that the hearings' > results
> will matter more than their ZIP codes. "For us, substance is more > important
> than location," said a Republican aide. "We want to make sure the
> committee's time is well spent." Towns presented his initiative to > House
> Speaker Pelosi in a Wednesday letter in which he also noted that the > panel
> will focus this year on maximizing the efficiency of the federal > workforce
> and shrinking its costs through more energy efficiency.
>
>
> http://www.nationaljournal.com/congressdai...090306_2272.php
>
> -----
> ECONOMY: UNEMPLOYMENT TOPS 8 PERCENT; OBAMA, PELOSI TOUT STIMULUS
>
> Reaching a level not seen since late 1983, the unemployment rate > rose to
> 8.1 percent in February, prompting President Obama to tout the > promise of
> the recently enacted stimulus and Republicans to urge spending > restraint.
> According to the Labor Department, another 651,000 jobs were lost > during
> the month after losses of 681,000 in December and 655,000 in > January, when
> the unemployment rate was 7.6 percent. "I don't need to tell the > people of
> this state what statistics like this mean, because so many of you > have been
> watching jobs disappear long before this recession hit," Obama said > today
> at a swearing-in ceremony for 25 new policemen in Columbus, Ohio. > Obama
> said he is confident the stimulus plan he recently signed will help > revive
> the economy. House Speaker Pelosi also cited the $787 billion > stimulus bill
> as evidence that help is on the way. "The first installment of > recovery
> grants to help rebuild our nation's crumbling bridges and highways > have
> been announced and in some states, jobs are already being created or
> saved," she said, while noting also House approval Thursday of > legislation
> to reduce home foreclosures.
>
> But House Minority Leader Boehner was not convinced. "As this > recession
> worsens and the job market slumps further, the anxiety of middle-class
> families is deepening," he said. "Yet, even as Americans' job > prospects
> grow dimmer, their savings evaporate, and their budgets tighten, > Washington
> Democrats seem more determined than ever to continue pursuing tax > hikes and
> pork-barrel spending increases that are only proving to make matters
> worse." Boehner called on his colleagues to reject the $410 billion > FY09
> omnibus appropriations bill pending in the Senate and instead freeze
> spending at FY08 levels through the rest of the fiscal year.
>
>
> http://www.nationaljournal.com/congressdai...090306_1673.php
>
> -----
> HILL BRIEFS: SEVEN HOUSE ARMED SERVICES MEMBERS JOIN SPECIAL PANEL
>
> Defense. Leaders of the House Armed Services Committee today named > seven
> lawmakers to a special bipartisan panel that will review and propose
> changes to the Pentagon's weapons-buying processes. The panel > members are
> Reps. Robert Andrews, D-N.J.; Jim Cooper, D-Tenn.; Brad Ellsworth, D-> Ind.;
> Joe Sestak, D-Pa.; Mike Conaway, R-Texas; Duncan D. Hunter, R-> Calif.; and
> Mike Coffman, R-Colo. Andrews will be the new panel's chairman, with
> Conaway its ranking member. "Throughout my time in Congress, repeated
> efforts have been made to improve the federal acquisition process -- > some
> successful, some not. In recent years the problems in DOD's > acquisition
> system have been particularly severe," Armed Services Chairman Ike > Skelton
> said in a statement. "Significant reforms are once again needed, in > part
> because the acquisition system must change as DOD's needs change." The
> panel has a six-month mandate to complete its work, although it has > the
> option of seeking a six-month extension. The members will focus on a > range
> of issues, including the administrative and cultural pressures that > lead to
> cost increases and schedule delays on weapons programs. While the > panel
> eventually will issue a final report, its work could be reflected in > the
> FY10 defense authorization bill, which the committee expects to > draft this
> spring.
>
>
> http://www.nationaljournal.com/congressdai...090306_3782.php
>
> -----
> HILL BRIEFS: HIGHER FOOD SAFETY STANDARDS PROPOSED BY COSTA, PUTNAM
>
> Health. Reps. Jim Costa, D-Calif., and Adam Putnam, R-Fla., > introduced an
> FDA modernization bill Thursday that would require food producers
> nationwide and in other countries to comply with the higher safety
> standards that California and Florida producers must meet. The bill is
> similar to one introduced by Senate Majority Whip Durbin and other > senators
> Tuesday, but it does not address bioterrorism as the Durbin bill does,
> Putnam said at a news conference. The bill requires producers to > institute
> hazard analysis and risk-based prevention control systems, gives the > FDA
> mandatory recall authority, and requires inspections at least every > four
> years for plants that meet standards and annual inspections for > those with
> poor food safety records.
>
>
> http://www.nationaljournal.com/congressdai...090306_6079.php
>
> -----
> HILL BRIEFS: ROSSMAN JOINS BREAUX-LOTT LEADERSHIP GROUP
>
> Lobbying. Manny Rossman, who served as a chief of staff to then-Senate
> Minority Whip Trent Lott, R-Miss., and Senate Minority Whip Kyl, has > joined
> the Breaux-Lott Leadership Group, the firm announced today. Prior to > being
> chief of staff, he was finance counsel to Lott and legislative > director to
> then-Ways and Means Trade Subcommittee Chairman Phil Crane, R-Ill. > "We are
> thrilled to welcome Manny to our practice," Lott said. "He is a
> professional of the highest caliber."
>
>
> http://www.nationaljournal.com/congressdai...090306_2383.php
>
> -----
> HILL BRIEFS: TECH GROUP: INNOVATION KEY TO ECONOMIC RECOVERY
>
> Technology. Washington's largest technology trade group will soon > launch a
> stakeholder lobbying blitz that emphasizes the importance of > innovation in
> pulling the United States out of recession. Technology Association of
> America CEO Chris Hansen said today the effort is aimed at broader > economic
> recovery and national prosperity. "Innovation Now" agenda items will
> include energy efficiency, health care, national security, trade and > other
> topics. The campaign will involve industry groups and associations > in and
> outside the high-tech arena. It comes on the heels of efforts by > Hansen's
> sector to secure about $100 billion worth of IT-related economic > stimulus
> funds in the package President Obama signed two weeks ago. Obama
> "understands technology and understands how technology needs to pull > us out
> of the economic situation we're in," Hansen said. He said > TechAmerica's
> would be unveiled "very soon."
>
>
> http://www.nationaljournal.com/congressdai...090306_9908.php
>
> -----
> HILL BRIEFS: WEB PRIVACY, SECURITY MEASURE REINTRODUCED
>
> Technology. Legislation intended to help educate Internet users about
> privacy and security risks associated with peer-to-peer programs was
> reintroduced Thursday by House Energy and Commerce Committee > members. It
> came on the heels of reports that file-sharing software was > implicated in a
> security breach involving Marine One, the helicopter used by President
> Obama. The bill, sponsored by Reps. Mary Bono Mack, R-Calif., John > Barrow,
> D-Ga., and Energy and Commerce ranking member Joe Barton, languished > in a
> subcommittee last Congress.
>
>
> http://www.nationaljournal.com/congressdai...090306_9637.php
>
> -----
> HILL BRIEFS: JOHANNS LEAVES HOSPITAL AFTER LUNG SURGERY
>
> People. Sen. Mike Johanns, R-Neb., today left the Virginia hospital > where
> he underwent surgery this week after physicians became concerned > that a
> spot on his lung might be cancerous. They found no cancer during > Tuesday's
> surgery but removed the lower lobe of his left lung as a precaution,
> Johanns aides said. Johanns hopes to return to work March 16. "I > couldn't
> have asked for a better outcome of the surgery and I am working my > way back
> to a full recovery," Johanns said in a statement.
>
>
> http://www.nationaljournal.com/congressdai...090306_6562.php
>
> -----
> HILL BRIEFS: HISPANIC CAUCUS NAMES NEW EXECUTIVE DIRECTOR
>
> People. Patricia Villarreal has been named executive director of the
> Congressional Hispanic Caucus. "Patricia brings to the caucus her > broad
> legislative experience, a deep understanding of the complex policy > work
> here on Capitol Hill, and an appreciation of the coalition building
> necessary to making our work successful," said Rep. Nydia Velazquez,
> D-N.Y., chairwoman of the 24-member CHC. Villarreal has served as > deputy
> chief of staff for Rep. Solomon Ortiz, D-Texas, and before then as a
> legislative assistant for Rep. Ciro Rodriguez, D-Texas.
>
>
> http://www.nationaljournal.com/congressdai...090306_5332.php
>
> -----
> POLITICAL ROUNDUP: BOXER HOLDS LEADS OVER SCHWARZENEGGER, FIORINA, > POLL
> FINDS
>
> California. Democratic Sen. Barbara Boxer fares well against two
> high-profile prospective Republican opponents, according to a Field > Poll
> released today. In hypothetical match ups, Boxer has a 54-30 percent
> advantage over Gov. Arnold Schwarzenegger, and a 55-25 percent lead > over
> former Hewlett-Packard CEO Carly Fiorina. The survey of 761 registered
> voters was conducted Feb. 20 through Sunday and has a 3.6-point error
> margin.
>
>
> http://www.nationaljournal.com/congressdai...090306_2901.php
>
> -----
> POLITICAL ROUNDUP: ABERCROMBIE TO RUN FOR GOVERNOR
>
> Hawaii. Democratic Rep. Neil Abercrombie plans to run for governor of
> Hawaii next year. He will make his announcement through an Internet > video
> Sunday, said an official familiar with the lawmaker's plans, the > Associated
> Press reported. Abercrombie told House Speaker Pelosi of his > intentions
> Thursday night, said the official. Republican Gov. Linda Lingle is
> term-limited. GOP Lt. Gov. James (Duke) Aiona has already announced > his
> candidacy for governor. Possible Democratic gubernatorial candidates
> include Honolulu Mayor Mufi Hannemann, state Senate President Colleen
> Hanabusa and former Rep. Ed Case, who unsuccessfully challenged > Democratic
> Sen. Daniel Akaka in 2006. Abercrombie's seat could attract a large > field
> of candidates. Honolulu City Councilman Charles Djou, a Republican, is
> running. Case is also considering a bid for the seat.
>
>
> http://www.nationaljournal.com/congressdai...090306_8794.php
>
> -----
> POLITICAL ROUNDUP: HARRIS TO SEEK REMATCH AGAINST KRATOVIL IN MD.
>
> Maryland. In a fundraising letter to supporters this week, GOP state > Sen.
> Andy Harris said he has decided to run again in 2010 against freshman
> Democratic Rep. Frank Kratovil -- to whom Harris narrowly lost last
> November, the Baltimore Sun reported. "After talking with my wife, my
> family and my closest supporters, I've decided that I will in fact > run for
> the U.S. Congress once more and am asking you for your help to make > this
> campaign a success," Harris' letter said. The conservative-leaning 1st
> District -- which covers Maryland's Eastern Shore and portions of the
> Baltimore suburbs -- was crafted to elect a Republican. Kratovil, a > former
> county prosecutor who won election, 49-48 percent, over Harris last > year,
> will be high on national GOP target lists in 2010. Kratovil already > has
> been criticized by Republicans for voting for the $787 billion federal
> stimulus bill in its final form -- after voting against the earlier, > larger
> House version of the bill. Another possible Republican contender for > the
> seat in 2010 is state Sen. E.J. Pipkin, who finished third in the 2008
> primary in which Harris ousted then-GOP Rep. Wayne Gilchrest. > Gilchrest
> subsequently bolted the GOP to endorse Kratovil.
>
>
> http://www.nationaljournal.com/congressdai...090306_6127.php
>
> -----
> THE FRIDAY BUZZ: WORKING FOR PEANUTS
> By Anna Edney
>
>
> What does $9,000 worth of peanut butter get you these days? Besides > a lot
> of peanut butter and jelly sandwiches, peanut farmers are hoping > massive
> amounts of the gooey stuff will bring them a little good will. Hit > hard by
> public aversion to peanut products given the salmonella outbreak, > peanut
> farmers will take to Capitol Hill next week with 7,000 jars of peanut
> butter in tow. Part of the message is that name-brand jarred peanut > butter
> is safe to consume, according to Don Koehler, executive director of > the
> Georgia Peanut Commission. Georgia, Alabama, Florida, Mississippi, > North
> Carolina, South Carolina, Virginia and Texas peanut farmers plan to > donate
> the peanut butter Wednesday to Martha's Table, a D.C.-based > nonprofit that
> provides food, clothing and educational activities for at-risk youth > and
> families.
>
> On the same day, Koehler will appear before the House Small Business
> Regulations and Health Care Subcommittee to talk about the impact of > the
> outbreak on peanut farmers. The salmonella outbreak, stemming from a
> Georgia processing plant, has killed nine people and sickened nearly > 700
> across 45 states. It has led to more than 3,000 recalls of peanut > products
> -- which have long been an ideal food bank donation. Ripple effects > are
> devastating the industry and have left peanut farmers without a > place to
> sell their crops. "It's real hard for the farmers because they feel > like
> they've become a victim to a bad actor that's out there," Koehler > said. The
> group is working with the National Center for Peanut Competitiveness > to
> prepare an economic impact study to reveal at Wednesday's hearing, > Koehler
> said. Koehler and other farmers will also make the rounds on Capitol > Hill
> Wednesday as they maneuver to influence the inevitable changes > coming in
> the nation's food safety regime. "We found out with the recall just > how
> much of an issue it is for farmers, and we want to make sure it never
> happens again," Koehler said.
>
>
> http://www.nationaljournal.com/congressdai...090306_2482.php
>
> -----
> THE FRIDAY BUZZ: JOE THE SHERIFF
> By George E. Condon Jr.
>
>
> The makeover of Vice President Biden continues. Known as a talker in > the
> Senate -- isn't that something like saying Satan is known as a bad > guy? --
> he has now been cast as the enforcer for President Obama. That job
> description started taking form last week with Obama's admonition in > his
> televised speech to the nation that "nobody messes with Joe." This > week,
> Obama gave Biden the verbal equivalent of a silver star on his vest. > The
> president, speaking to employees at the Transportation Department, > said
> Biden would "keep an eye" on stimulus spending and would speak up at > any
> sign of trouble. "To you, he's Mr. Vice President, but around the > White
> House, we call him 'the sheriff,' because if you're misusing taxpayer
> money, you'll have to answer to him," Obama said. Left unsaid was the
> prospect that those who strayed might also have to listen to him.
>
>
> http://www.nationaljournal.com/congressdai...090306_5572.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "I know everyone is anxiously awaiting the 8:15 time to arrive."
>
> -- A tongue-in-cheek Senate Majority Leader Reid, addressing the > Senate
> Thursday night at about 8:40 p.m., 25 minutes after a scheduled > cloture
> vote on the FY09 omnibus appropriations bill that was never held.
>
>
> http://www.nationaljournal.com/congressdai...090306_9821.php
>
> -----
>
>
>
> --------------------
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[Snuffysmith]

>
>
> CongressDaily AM for Monday, March 9, 2009
>
> --------------------
> CONTENTS
>
> OUTLOOK: SENATE TAKES ANOTHER SHOT AT OMNIBUS
> By Humberto Sanchez and Darren Goode, with Jerry Hagstrom, Megan > Scully,
> Bill Swindell, Carrie Dann, Anna Edney, Chris Strohm, Andrew Noyes, > Kasie
> Hunt, Peter Cohn, David Hatch and George E. Condon Jr., contributing
>
>
> The Senate will take another crack Tuesday at passing the $410 billion
> FY09 omnibus spending package after voting on 12 more amendments
> Republicans hope to attach to the bill.
>
> Senate Democratic leaders had initially scheduled a vote on Thursday > to
> cut off debate on the omnibus, which includes nine of the FY09 annual
> appropriations bills Congress has not yet approved.
>
> But leaders postponed the vote after realizing they did not have the > 60
> votes needed to invoke cloture.
>
> In an effort to secure the needed votes, Majority Leader Reid > decided to
> allow Republicans to offer 12 amendments, in addition to the 12 that > have
> been defeated.
>
> "A significant number of Republicans wanted some more amendments," > Reid
> said Friday. "As a result of that, a number of my Republican friends > called
> me and said, 'We think we need more amendments. We know that we said > we
> were going to vote to end debate, but we feel there's more debate
> [needed].' I wish I hadn't received those calls ... but I understand > how
> the Senate works. No one broke their word to me. It was just a
> misunderstanding."
>
> To give the Senate the time needed to consider the amendments, both
> chambers Friday passed a continuing resolution that expires > Wednesday. The
> previous CR -- which funds at FY08 levels the programs covered by > the nine
> FY09 spending bills in the omnibus -- expired Friday.
>
> The 12 amendments will be voted on today and Tuesday, when the > Senate is
> expected to vote to cut off debate, and then proceed to a vote on > final
> passage.
>
> In an indication Democrats expect the cloture vote to be tight, Reid > said
> Sen. Edward Kennedy, D-Mass., who is spending most of his time in > Florida
> as he fights brain cancer, will be on hand for the vote.
>
> While the delay is designed to help ensure passage of the bill, it > carries
> a cost for Democrats. As the Senate considers the amendments, which > are
> likely to be defeated, the votes -- like the series the chamber took > last
> week -- will be tough politically for many Democrats, GOP aides > argued.
>
> An amendment by Sen. John McCain, R-Ariz., and on tap for a vote > today,
> would prohibit omnibus funds from being spent on congressionally > directed
> earmarks that are not listed and specifically provided for in the > text of
> the bill.
>
> Republicans have been trying to hit hard earmarks in the bill, which > total
> $7.7 billion. But according to an analysis by Taxpayers for Common > Sense,
> Republicans have generally just as many earmarks in the bill as > Democrats
> and in some cases more. Senate Minority Leader McConnell has $51 > million in
> earmarks in the bill, while Reid has $27 million, according to the > group's
> analysis.
>
> Another amendment on the list of 12 is one from Sen. John Thune, R-> S.D.,
> that would prevent the FCC from using omnibus funds from > reinstituting the
> Fairness Doctrine.
>
> Meanwhie, the House this week will take up a bill authorizing $13.8
> billion over five years for the Clean Water State Revolving Fund, > which
> helps states construct water treatment facilities. The bill -- which > passed
> unanimously by voice vote in the House Transportation and > Infrastructure
> Committee last Thursday -- also has $1.8 billion over five years for > sewer
> overflow control grants and $750 million over five years to remove
> contaminated sediment as part of the Great Lakes Legacy Act.
>
> The Senate meets today at 2 p.m. to resume consideration of the > omnibus
> appropriations bill.
>
> The House meets today at 12:30 p.m. for morning hour and 2 p.m. to
> consider suspension bills. Votes will be postponed until 6:30 p.m. On
> Tuesday the House meets at 10:30 a.m. for morning hour and noon for
> legislative business. The House meets for legislative business at 10 > a.m.
> on Wednesday and Thursday. No votes are expected Friday.
>
> AGRICULTURE
>
> The House Agriculture Committee holds a hearing Wednesday on the > national
> animal identification program. USDA has taken steps to put in place a
> program to trace animals and meat from the barnyard to the table, > but has
> not concluded whether it will be mandatory.
>
> Meanwhile, the National Farmers Union convention in Arlington, Va., > has
> attracted a stellar array of speakers.
>
> Agriculture Secretary Vilsack, House Speaker Pelosi, Senate > Agriculture
> Chairman Tom Harkin, Senate Budget Chairman Kent Conrad, Senate > Finance
> ranking member Charles Grassley, Sen. Amy Klobuchar, D-Minn., House
> Agriculture Chairman Collin Peterson, House Agriculture Appropriations
> Subcommittee Chairwoman Rosa DeLauro, D-Conn., and Rep. Stephanie > Herseth
> Sandlin, D-S.D., will speak to the convention today.
>
> APPROPRIATIONS
>
> While the Senate is trying to wrap up congressional work on FY09
> appropriations, the House Appropriations Committee will begin in > earnest
> the work of drafting the FY10 spending bills, with over 20 > subcommittee
> hearings scheduled for this week.
>
> Highlights include the Commerce-Justice-Science Appropriations
> Subcommittee exploring major challenges facing federal prisons on > Tuesday.
> On Thursday, the Homeland Security Appropriations Subcommittee will > meet to
> discuss securing the nation's rail and transit systems.
>
> And the House Defense Appropriations Subcommittee will hold a series > of
> hearings Tuesday, Wednesday and Thursday to address Army and Marine > Corps
> equipment and readiness levels.
>
> DEFENSE
>
> The House Armed Services Seapower and Expeditionary Forces > Subcommittee
> will meet Tuesday to hear testimony from Navy officials on the > troubled
> Littoral Combat Ship program, which has experienced dramatic cost > increases
> and schedule delays.
>
> On Wednesday, the full House committee will hold a hearing on the > security
> challenges that might arise from the global financial crisis. > Witnesses
> include Richard Haass, Council of Foreign Relations president; Richard
> Cooper, economics professor at Harvard University; and former Pentagon
> comptroller Dov Zakheim.
>
> ENERGY
>
> Senate Majority Leader Reid's apparent favoring of moving one big > energy
> and climate change bill together in the summer brings new > perspective to
> hearings this week as part of the Energy and Natural Resources > Committee's
> drafting of an energy strategy.
>
> Reid acknowledged to Climate Wire on Thursday that he will echo the
> strategy in the House and merge energy and climate bills. But his > spokesman
> Friday was slightly more cautious. "Sen. Reid is looking very > seriously at
> the possibility of doing energy and climate change in one combined > bill to
> be certain Congress can achieve the goals set out by the president > this
> year," Jim Manley said in an e-mail.
>
> There are rumblings that Reid might do this through the reconciliation
> process, which would only require majority support instead of a 60-> vote
> filibuster-proof margin. Manley said no decisions have been made.
>
> The Senate Environment and Public Works Committee is drafting a > greenhouse
> gas cap-and-trade bill that might struggle to reach that 60-vote > threshold,
> while an energy package might include a renewable electricity > production
> mandate and other measures that also might lack 60 votes.
>
> But it is unclear whether budget leaders and others will sign off on > using
> reconciliation, which might end up also including other Democratic
> priorities such as middle-class tax cuts and healthcare reform. > Energy and
> Natural Resources Chairman Jeff Bingaman said last week he favored > moving
> an energy bill separately to avoid having it be "held hostage" in a
> contentious cap-and-trade debate.
>
> The energy hearings this week include one Tuesday on a draft from > Bingaman
> and Energy and Natural Resources ranking member Lisa Murkowski that > seeks
> to boost water and energy efficiency in producing electricity. A > hearing
> Thursday looks at setting up renewable electricity transmission lines.
>
> Reid last week introduced his plan to set up the planning, siting, > cost
> allocations and other details of establishing this network. Bingaman > has
> not indicated whether his committee's bill will model its transmission
> strategy on Reid's. Bingaman wants to mark up an energy strategy in > his
> committee by the end of the month.
>
> FINANCE
>
> The Senate Banking Committee will hold a Tuesday hearing on the > steps the
> SEC is taking to protect investors, an issue that has generated much
> attention in the aftermath of lax oversight at the agency that > failed to
> detect Bernard Madoff's alleged $50 billion Ponzi scheme.
>
> The House Financial Services Financial Institutions Subcommittee > will hold
> a hearing Wednesday on reviewing the American mortgage system. The > full
> committee is preparing to move legislation that would place additional
> safeguards on lenders, brokers and servicers and Financial Services
> Chairman Barney Frank has promised a much tougher version than the > House
> passed in the 110th Congress.
>
> The full panel on Wednesday will mark up its budget views and > estimates
> and a Senate measure that would expand the authority of the special
> inspector general of the Troubled Asset Relief Program and make > immediately
> available all of $50 million for its office.
>
> On Thursday, the Capital Markets Subcommittee will hold a hearing on
> mark-to-market accounting rules, which require companies to value > assets at
> current prices, not their value when they mature.
>
> The issue is crucial in the real estate market, where many > properties have
> been drastically devalued but are expected to rebound. Some in > Congress
> have called for elimination of the standard to help stabilize the > housing
> market. But others have proposed giving regulators more flexibility > on how
> to mark assets that have been temporarily devalued.
>
> The same day, the International Monetary Policy Subcommittee will > hold a
> hearing on legislation that would be supportive of state and local
> governments and colleges to divest in companies with investments of > $20
> million or more in Iran's energy sector.
>
> The bill also would provide legal immunity to investment managers who
> divest or choose not to invest in securities of companies that > engage in
> investment activities in Iran as contained in the bill.
>
> GOVERNMENT OPS
>
> The House Oversight and Government Reform Domestic Policy Subcommittee
> Wednesday will question Assistant Secretary for Financial Stability > Neel
> Kashkari on the Troubled Asset Relief Program.
>
> Domestic Policy Chairman Dennis Kucinich, D-Ohio, is likely to press
> Kashkari to explain holes in the Treasury Department's data > monitoring of
> the banks' use of TARP funds. Kashkari faced similar grilling before > the
> House Financial Services Committee in December. Kucinich and > colleagues
> plan to showcase technologies that could be used by Treasury > officials to
> track financial stabilization funds.
>
> In the spotlight will be an electronic coding language called XBRL, or
> Extensible Business Reporting Language, which functions to attach > digital
> "bar codes" to company financial data. Neil Barofsky, the special > inspector
> general for TARP, will also testify at the hearing.
>
> The National Whistleblowers Assembly kicked off over the weekend, with
> members of the nation's top watchdog groups meeting to brainstorm > advocacy
> for whistle-blower rights in the administration.
>
> Sponsoring organizations include the Project on Government > Oversight, the
> Government Accountability Project, the Union of Concerned > Scientists, and
> the National Whistleblowers Center.
>
> Members will hit Capitol Hill Tuesday and Wednesday, leaning on > lawmakers
> to expand legislative protections for federal whistle-blowers. Sen. > Claire
> McCaskill, D-Mo., and Rep. Chris Van Hollen, D-Md., who both recently
> introduced legislation to bolster protections for whistle-blowers, > address
> the conference today.
>
> HEALTH
>
> Universal health care is on the agenda for committees in both the > House
> and Senate following a White House summit on the topic last week. > House
> Energy and Commerce Health Subcommittee Chairman Frank Pallone, D-> N.J.,
> will hold a hearing Tuesday to examine ways to improve the > affordability
> and quality of healthcare coverage. The hearing is the first the > committee
> will hold on overhauling the nation's healthcare system in an > attempt to
> provide universal coverage.
>
> OMB Director Orszag will testify Tuesday before the Senate Finance
> Committee on healthcare priorities in the president's FY10 budget. The
> budget sets aside a $634 billion reserve fund to help fund a system
> overhaul. The president laid out general priorities in his budget > but did
> not specify how he would like to see universal health care achieved.
>
> House Ways and Means Health Subcommittee Chairman Fortney (Pete) > Stark,
> D-Calif., will hold a hearing Wednesday on expanding coverage and > improving
> quality, all while controlling costs.
>
> Pallone will hold a food safety hearing Wednesday. Pallone and Reps. > John
> Dingell and Bart Stupak, both D-Mich., have introduced legislation > that
> would strengthen FDA's ability to protect the nation from > contaminated food
> as well as adulterated or defective pharmaceuticals and medical > devices.
> The bill sets up an annual registration fee system that would fund
> additional manufacturing plant inspections.
>
> HOMELAND SECURITY
>
> Four committees will examine U.S. border security programs and > efforts to
> combat escalating violence in Mexico, including using technology to > detect
> and interdict illegal immigrants and drug runners coming into the > United
> States.
>
> Top homeland security and intelligence officials in the Obama
> administration have said recently that addressing the growing > violence in
> Mexico has quickly become one of their top priorities, as bloody > wars have
> erupted between drug cartels in Mexico, and between those cartels > and the
> Mexican military.
>
> Additionally, Homeland Security Secretary Napolitano told lawmakers > last
> month one of her top priorities is trying to stop guns and cash > flowing
> from the United States to the cartels in Mexico.
>
> The House Homeland Security Appropriations Subcommittee plans back-> to-back
> hearings Tuesday. The first hearing will focus on the Secure Border
> Initiative, a program by the Homeland Security Department with a heavy
> emphasis on using technology.
>
> The second hearing will focus on the department's response to > violence on
> the Southwest border.
>
> Also on Tuesday, the House State-Foreign Operations Appropriations
> Subcommittee plans a hearing on the Merida Initiative.
>
> The initiative calls for the U.S. government to spend $1.6 billion > over
> three years on military and law enforcement training and equipment > to help
> Mexico and Central American countries.
>
> On Thursday, the House Homeland Security Border Subcommittee plans a
> hearing to examine DHS resources and strategies for combating border
> violence. And the House Oversight and Government Reform National > Security
> Subcommittee plans a hearing Thursday to examine how money, guns and > drug
> consumption in the United States is helping to fuel violence on the > border.
>
> Meanwhile, the House Homeland Security Emerging Threats Subcommittee
> Tuesday will provide input into the Obama administration's 60-day > National
> Security Council cybersecurity review.
>
> INTELLIGENCE
>
> The Senate Armed Services Committee will hold a hearing Tuesday with > top
> intelligence officials to discuss current and future threats to > national
> security.
>
> Dennis Blair, director of national intelligence, and Lt. Gen. Michael
> Maples, director of the Defense Intelligence Agency, will testify.
>
> The Senate Intelligence Committee this week might markup a massive > FY09
> authorization bill for the U.S. intelligence community. The markup was
> postponed last Thursday due to a scheduling conflict with the White > House
> healthcare summit.
>
> An intelligence authorization bill has not been signed into law in > more
> than four years. The last bill approved by Congress was for FY08, > but it
> was vetoed by former President George W. Bush, mainly because it > included
> restrictions on interrogation practices.
>
> Intelligence Chairwoman Dianne Feinstein has decided to remove those
> provisions from the FY09 bill because they have been addressed in > other
> ways by the Obama administration.
>
> A spokesman for Feinstein could not confirm, however, that the FY09 > bill
> will definitely be marked up this week.
>
> On Tuesday, the committee is expected to consider the nomination of > David
> Kris to head the Justice Department's National Security Division.
>
> JUDICIARY
>
> The House and Senate Judiciary committees Tuesday will focus on what
> promise to be the two most pressing intellectual property topics of > the
> 111th Congress.
>
> The Senate panel will hear from witnesses - including Micron > Technology
> CEO Steven Appleton and Intellectual Property Owners Association > Executive
> Director Herbert Wamsley -- on legislation Judiciary Chairman > Patrick Leahy
> introduced last week with Sen. Orrin Hatch, R-Utah, aimed at > overhauling
> the U.S. patent system.
>
> Meanwhile, House Judiciary Chairman John Conyers, who offered a > companion
> patent bill, will turn his panel's attention to addressing a long-> standing
> royalty exemption granted to AM and FM radio. The hearing will > examine a
> bill he introduced with House Oversight and Government Reform ranking
> member Darrell Issa that would close what they perceive as a > loophole in
> federal copyright law. Leahy and Hatch sponsored a companion measure > in the
> Senate.
>
> LABOR
>
> Business and labor groups will be out in force this week lobbying on
> card-check legislation. The Service Employees International Union will
> protest outside the U.S. Chamber of Commerce building today and is > sending
> workers to meet with members of Congress Tuesday.
>
> Card check, which would allow unionization if a majority of workers > signs
> authorization cards and would eliminate a company's right to demand a
> secret ballot election, is organized labor's top priority. Business > groups,
> who say the law would damage small businesses in a weak economy, are
> spending millions to oppose it.
>
> The Chamber is flying business leaders in from the states to talk to
> members on Tuesday to push that message.
>
> The lobbying comes as House Education and Labor Chairman George Miller
> readies for the bill's introduction in the House in the coming weeks > and
> the Senate Health, Education, Labor and Pensions Committee holds a > Tuesday
> hearing on building the middle class by helping workers.
>
> President Obama and Vice President Biden spoke to the AFL-CIO's winter
> meeting in Miami Beach, Fla., last week, with Obama reiterating via > video
> the administration's support for the measure. A spokesman for Miller > said
> the timing of the introduction has not been finalized.
>
> TAXES
>
> What must seem like a never-ending journey around Capitol Hill > continues
> for Treasury Secretary Geithner, who appeared to lose the spring in > his
> step after three hearings and a raft of more bad news on Wall Street > last
> week.
>
> He'll continue to face questions about the administration's plans to > calm
> financial markets and stabilize housing, as well as concerns that > their
> budget plan spends and raises taxes too much.
>
> In particular, Geithner has had to defend against charges the > budget's $1
> trillion tax increase on earners making more than $200,000, or > $250,000 for
> households, will fall disproportionately on small businesses.
>
> Confusion abounds on that subject, and both sides appear to be > slicing the
> numbers their way. Under Tax Policy Center estimates preferred by
> Democrats, only 2.7 percent of tax filers in the top two rate > brackets with
> more than half of their earnings derived from small business income --
> 335,000 total --- would get hit with a tax increase.
>
> That figure drops to 1.9 percent when considering the number of filers
> reporting any income from small business, including things like > speaking
> fees or passive investment income, in the top two rate brackets.
>
> Under Treasury Department data compiled in 2007 preferred by > Republicans,
> the figure is closer to 9 percent, with 1.1 million tax filers in 2006
> reporting more than 50 percent of their earnings from "flow-through" > small
> business income such as from partnerships, sole proprietorships and S
> corporations. More importantly, Republicans argue, those small-> business
> owners in the top two brackets generated 69 percent of overall small
> business earnings and paid 81 percent of the taxes, the Treasury > report
> states.
>
> TELECOM
>
> House Energy and Commerce Communications Subcommittee Chairman Rick
> Boucher, D-Va., holds a Thursday hearing on revamping the $7.1 billion
> universal service subsidy program, which lowers telecom costs in > rural and
> low-income areas.
>
> At the Commerce Department on Tuesday, officials with Agriculture,
> Commerce and the FCC will discuss broadband initiatives to be funded
> through President Obama's economic stimulus package. Congress has > set aside
> $7.2 billion in loans and grants for new high-speed Internet
> infrastructure, mostly to rural areas.
>
> Vilsack, Commerce Senior Adviser and Acting Chief of Staff Rick Wade > and
> Acting FCC Chairman Michael Copps will participate.
>
> Also Tuesday, Rep. Zoe Lofgren, D-Calif., chairwoman of the Judiciary
> Immigration Subcommittee, speaks on the importance of bringing high-> skilled
> workers to the United States at an event sponsored by the Technology > Policy
> Institute.
>
> On Wednesday, AT&T Chairman, CEO and President Randall Stephenson
> discusses his company's role in the economic recovery during live,
> videostreamed remarks before the Economic Club of Washington. Consumer
> Electronics CEO Gary Shapiro rounds out the week with a Friday > speech on
> the economic crisis before the Northern Virginia Technology Council in
> Reston, Va.
>
> TRADE
>
> U.S. Trade Representative-nominee Ron Kirk gets his long-awaited
> confirmation hearing tonight from the Senate Finance Committee, > where he
> will likely be forced to answer questions about his recently amended > tax
> returns.
>
> Finance panel investigators last week revealed Kirk might have > underpaid
> nearly $10,000 in taxes on entertainment and other expenses he > deducted
> while a partner in a Houston law firm, charitable donations he made > to his
> alma mater, Austin College, from speaking fees he should have > reported as
> income, and other items. Kirk is the latest in a string of Obama's > nominees
> who have tax problems, but he is considered likely to eventually win
> confirmation.
>
> On the issues, Kirk will likely be called on to defend Obama's trade
> policy document he submitted last week, which does not mention Chinese
> currency de-valuation -- a key concern from Finance members. The > report
> also sidesteps Obama's previous statements on renegotiating the North
> American Free Trade Agreement, an issue Sen. Charles Grassley, R-> Iowa, in
> particular has been seeking clarity on.
>
> Obama's trade paper also calls for going back to the negotiating > table on
> the Doha Round of multilateral trade talks.
>
> Obama would put trade negotiations on hold pending further review, > such as
> the previous administration's plans for a Trans-Pacific trade > partnership,
> but he expressed a willingness to swiftly deal with the Panama Trade
> Promotion Agreement, a holdover from the Bush administration signed in
> 2007.
>
> Trade skeptics oppose further market-opening agreements unless they > are
> renegotiated with tougher labor and other standards, and the Panama > pact
> has drawn concerns about that country's "tax haven" status, > including a
> home for funds sheltered by major U.S. financial institutions.
>
> WHITE HOUSE
>
> President Obama and other administration officials will meet with > state
> officials Thursday to discuss how to use economic stimulus funds to
> jumpstart the economy. Each state has been designated to send one > person to
> meet with Obama, Vice-President Biden, some Cabinet secretaries and > Earl
> Devaney, who is chairman of the Recovery Act Transparency and
> Accountability Board.
>
>
> http://www.nationaljournal.com/congressdai...090307_1012.php
>
> -----
> SENATE RACES: GOP HAS OLD GUARD-NEW FACE DILEMMA
> By Erin McPike
>
>
> One of the major power struggles in the Republican Party is playing > across
> the map as the National Republican Senatorial Committee tries to help
> candidates decide whether to run in nearly a dozen competitive states.
>
> The question boils down to this: Old Guard or New Face? And in a > handful
> of states likely to see competitive races next year, the GOP is > leaning
> toward older, more conservative white men, while younger candidates, > both
> minorities and women, wait in the wings.
>
> National Republican Senatorial Committee Chairman John Cornyn of Texas
> said in a recent interview that the party can do a better job > reaching out
> to minorities, especially Hispanics, and one way to do that is through
> candidate recruitment.
>
> "But as important as diversity is, I'm going to go with the > candidate who
> can win as a Republican in their state any time," Cornyn said. "And > it may
> be we're just not to the point yet where we have a deep bench of > ethnically
> diverse candidates who can run. I wish we did."
>
> Missouri is one state where the GOP's dilemma is front and center. > Former
> House Minority Whip Roy Blunt, 59, is the tacit favorite of the GOP > Beltway
> establishment in the race to replace retiring GOP Sen. Christopher > (Kit)
> Bond. But former state Treasurer Sarah Steelman, 50, is also > thinking about
> running and is not shy about saying the party needs to change > direction.
>
> Referring to the party's penchant for relying on old-guard candidates,
> Steelman said, "The definition of insanity is doing the same thing > over and
> over again and expecting a different outcome."
>
> Steelman, who is in Washington this week to tout her potential > candidacy,
> added that the GOP is in the middle of an identity crisis and has to
> attract more women and minorities to run, but she lamented that the > Beltway
> establishment and Missouri's are similar.
>
> She referred to both groups as "the good ol' boys' Republican > Party. ...
> They get behind closed doors and decide who's going to run in every > race."
> And, she said, recent history shows the GOP continues to "put up > candidates
> that can't win."
>
> She conceded that Blunt would probably raise more money if they run
> against each other in the primary. The winner is likely to run against
> Democrat Robin Carnahan, the state's treasurer and daughter of > former Sen.
> Jean Carnahan and the late Gov. Mel Carnahan.
>
> Gender, Steelman insisted, is not the issue.
>
> "I've never used gender in a race I've ever run," she said. "I think
> voters in Missouri are past that. I think I'm a better candidate > because
> I'm a fiscal conservative and because I say what I think and I do > what I
> say," she said. Still, she noted that it's hard for Republican women > to get
> traction because the party is "mostly an establishment of guys in > suits."
>
> Blunt brushed off Steelman's arguments. "I am confident I'll be the
> nominee. ... Running against a woman who's popular, I think that's not
> necessarily an impediment for me," Blunt said. He added that he wants
> voters to hear his story of coming from modest means. "I'm eager to > let
> Missourians see me as something more than just Sarah's description > as just
> another white guy in a suit."
>
> Still, one veteran GOP operative who has not taken sides in the Senate
> race said Blunt is running into difficulty raising money in the St. > Louis
> area. Part of it, the operative said, is that some donors "believe > they
> were ignored" when his son, Matt, was governor. He added that the > elder
> Blunt doesn't have strong ties with donors in that part of the > state. "He's
> been in D.C. too long and hasn't been around the state," the operative
> complained.
>
> But the divide between Beltway operatives and those in the state is > not
> exclusive to Missouri. Similar story lines are playing out in > Colorado,
> Florida, Ohio and elsewhere as the 2010 fields start to take shape.
>
> In Colorado, former GOP Rep. Bob Beauprez, 60, is eager to challenge
> Democratic Sen. Michael Bennet, but first he might have to deal with a
> primary fight against Ryan Frazier, a 31-year-old black city > councilman
> from Aurora.
>
> Florida Republicans are waiting to see if Gov. Charlie Crist jumps > into
> the race to succeed GOP Sen. Mel Martinez. Former state House > Speaker Marco
> Rubio, a Cuban-American, is thinking about the GOP primary, as is Rep.
> Connie Mack IV.
>
> "If Crist gets in the race, that changes things," Cornyn said. "If > he does
> not, then I think there's going to be a little bit of a fight there > among
> Republicans to see who the nominee is. But nobody in Washington's > going to
> be able to designate a candidate. They're going to have to prove > their bona
> fides and their ability in a primary.
>
> And in Ohio, national Republicans are firmly behind former Rep. Rob
> Portman in his quest to succeed retiring Ohio Republican Sen. George
> Voinovich, but state Auditor Mary Taylor, the only Republican holding
> statewide elected office, remains interested in the race.
>
> Portman, who was U.S. trade representative and OMB director under
> President George W. Bush, has conservative credentials that play > well with
> the party's base. But some Ohio operatives are concerned that he > will have
> difficulty finding broad appeal outside his Cincinnati-area district > and
> will be hurt by his ties to Bush.
>
> The dynamic also could be in play, to a point, in the New Hampshire > race
> to replace retiring GOP Sen. Judd Gregg. The big question is whether > former
> Republican Sen. John Sununu will mount a comeback. Former 2nd > District GOP
> nominee Jennifer Horn said she is more likely to make another House > bid.
>
> Cornyn, who took over the NRSC role from Sen. John Ensign of Nevada > after
> two difficult cycles for the party, reiterated that "my goal is to
> encourage people who can win in those states to run." He also said he
> wanted "candidates who are not just exciting to me but ... are > exciting to
> the voters in their state, and I think that it's got to come from the
> bottom up. It can't come from the top down."
>
> But, he conceded, "I think we need more women and we need more > minorities
> in the Republican Party. We have them at the local level and at the > state
> level, but we just haven't been successful penetrating at the national
> level."
>
>
> http://www.nationaljournal.com/congressdai...090309_2301.php
>
> -----
> PEOPLE: PEOPLE
> By Mike Magner
>
>
> PITCHING FORWARD. James Pitchford -- known to many Capitol Hill > staffers
> and military veterans as "Pitch" -- said a couple of fortuitous events
> guided him on a career path that led to 10 years as a legislative > aide for
> Sen. Christopher (Kit) Bond, R-Mo.
>
> After serving as a pilot in the Navy, the National Guard and the > Marine
> Corps, the Racine, Wis., native went into public affairs and heard > about a
> job in Washington at the headquarters for the Navy Reserve. "I > called my
> old commander to ask him about it, and there was a long pause -- it > turned
> out it was his shop," Pitchford said.
>
> After three years in that post, friends told Pitchford he should > consider
> becoming a military legislative assistant on Capitol Hill. He called > an old
> flight-school buddy who worked for Bond to ask him about a position > there.
> "There was a long pause," Pitchford said, "and he said he gave his > notice
> two hours ago." In no time, "Pitch" was taking over for his friend.
>
> Bond said Pitchford has been instrumental in assisting veterans and > their
> families, in strengthening the National Guard, in keeping the F-15 and
> F/A-18 production lines in operation in St. Louis, and in working on > a host
> of other military issues. Bond also credited Pitchford for helping him
> secure $20 million to build the Counter Explosive Hazards Center at > Fort
> Leonard Wood in Missouri in 2005.
>
> "This facility has saved lives and will continue to do so by providing
> critical training to Army personnel for countering explosives > hazards and
> providing countermine working dogs that were not previously > available,"
> Bond said.
>
> Pitchford left Bond's office last month to go down another career > path. He
> and another former Marine, Chris Kirby, have launched Command > Strategies in
> Arlington, Va., a consulting firm that "helps good companies with good
> products get going with the DoD," Pitchford said. "We believe it is > the
> model for the future with less of a reliance on earmarks."
>
>
> http://www.nationaljournal.com/congressdai...090309_6091.php
>
> -----
> CHINA WATCH: HURT AMERICAN?
> By Art Pine
>
>
> Look at the headlines these days, and it's hard to believe that only > a few
> weeks ago Washington was in an uproar over Congress' latest "Buy > American"
> legislation.
>
> The provision, written into the $787 billion economic stimulus bill > passed
> last month, prohibits the use of the money to buy foreign-made > manufactured
> goods. Economists warned it would hurt U.S. exporters and invite
> retaliation. The constraints were watered down in the final version. > The
> hullabaloo quickly disappeared.
>
> But critics contend that the cause of concern remains. Although the
> real-world impact of the measure isn't likely to be as strong as its
> proponents or detractors predicted, trade expert Gary Clyde Hufbauer > of the
> Peterson Institute for International Economics warns that it still > sends a
> signal likely to prompt other countries to raise trade barriers.
>
> U.S. lawmakers diluted the bill by mandating that the "Buy American"
> provision be applied in a way that is "consistent with U.S. > international
> obligations." That exempts many of America's large trading partners, > but it
> still leaves China, Brazil and other large countries subject to the
> constraints -- and under pressure to impose barriers of their own.
>
> "Our 'Buy American' provision is an inspiring model for their own
> aspirations," Hufbauer says.
>
> Enactment of the "Buy American" provision also is inspiring another > big
> push for more protectionist measures. U.S. steelmakers and their > unions,
> which were the driving force behind the measure that made it into the
> stimulus bill, already are preparing a raft of trade cases against > steel
> imports, which might well result in higher tariffs.
>
> And trade experts say the odds are that other domestic industries will
> follow suit, making it likely that Congress will face increasing > pressure
> to top the "Buy American" provision with other legislation designed to
> protect U.S. industries from foreign competition -- creating an > economic
> tinderbox that could worsen the global slump.
>
> As so often is the case in trade politics, one question that's been
> largely overlooked is, was this legislation really needed? The > provision
> was aimed mainly at China, which steel unions here contend is > competing
> unfairly and is taking away American jobs. But the facts suggest that
> neither of those complaints is true.
>
> "The U.S. steel industry has been quite healthy over the past few > years,"
> says Robert Crandall, a Brookings Institution economist who has kept > close
> tabs on the industry for decades. "What happened was that the > economy fell
> into recession and steel orders fell dramatically last fall. It was > a drop
> in global demand, not China, that did it."
>
> The statistics bear him out. World Steel Dynamics, an Englewood > Cliffs,
> N.J., firm that has become the leading monitor of steel industry > trends
> worldwide, shows that global spot prices of hot-rolled steel -- the
> benchmark for overall steel prices -- peaked in July at $1,083 per > short
> ton, a comfortable price. By last month, they'd fallen to $501 -- a > drop of
> 53.7 percent.
>
> The decline had nothing to do with competition from China, says > Patrick
> McCormick, a managing partner at the firm. "If you look at imports of
> Chinese-made hot-rolled products, they went down, too," he says. "Last
> year, China exported 59 million tons [worldwide]; this year their > exports
> are expected to total 23 million tons at most."
>
> The Bureau of Labor Statistics' figures on employment show that job > losses
> haven't been that great, either. After a series of mergers and
> consolidations in the early part of the decade, employment in the U.S.
> steel industry was 99,000 in mid-2008. Last fall, it dipped. By last
> December, it measured 94,400.
>
> Moreover, while the new "Buy American" provision might stem a few > thousand
> job losses in the U.S. steel industry, it's likely to hurt American
> companies that export to China and other countries -- such as makers > of
> heavy equipment and other goods containing steel -- that may choose to
> retaliate against the stimulus bill's restrictions.
>
> Small wonder that Caterpillar, Inc., and other major U.S. firms that > sell
> to China vigorously opposed the "Buy American" legislation. The Bush
> administration's brief imposition of restrictions on foreign-made > steel in
> 2002 seriously hurt U.S. producers of automobiles, fasteners and other
> goods. It was ruled illegal under World Trade Organization > regulations.
>
> The steel industry in the United States has a history of crying for
> protection. In the late-1960s, it failed to stay competitive with > emerging
> steel producers in Japan. It recovered only after the big companies > merged
> or went out of business, paving the way for smaller, more efficient > mills.
> "The industry then became quite healthy," Crandall says. "Right now, > the
> market's weak."
>
> None of this suggests that lawmakers should be unsympathetic to the > recent
> job losses in steel -- or in other domestic industries that are facing
> hardships in the slump.
>
> But next time a U.S. industry is seeking new trade barriers, it > might be
> worth asking why those companies are in trouble and what impact the
> protection might have, both in helping that small group of workers > and in
> hurting those of other U.S. companies that use their products or that
> export to other countries. The urge to "do something" sometimes can be
> dangerous.
>
>
> http://www.nationaljournal.com/congressdai...090307_4088.php
>
> -----
> BEYOND THE BELTWAY: LAWMAKER SEEKS TO LIMIT VEHICLE EMISSIONS IN IOWA
>
> An Iowa state senator last week filed legislation that would limit > vehicle
> pollution.
>
> If the measure by Democratic state Rep. Nathan Reichert passed, the > Iowa
> Environmental Protection Commission would set emissions standards > for most
> passenger vehicles beginning with the 2011 model year, the Des Moines
> Register reported.
>
> The standards would be based on a California law mandating tailpipe
> emissions of greenhouse gases from cars and light trucks to be cut 22
> percent by 2012 and 30 percent by 2016.
>
> The auto industry has opposed regulations, arguing the laws cannot > be met
> with current technology.
>
> Critics say the law is too costly. The regulations could run as much > as
> $3,000 per vehicle, according to calculations by the California
> Environmental Protection Agency and the auto industry.
>
> "If it were to pass, it would put quite a mandate on working-class
> families," said GOP state Rep. Steve Olson, who serves on the > Environmental
> Protection Committee. "We're going through some very rough times. > Why do we
> want to impose higher vehicle costs on Iowans?"
>
>
> http://www.nationaljournal.com/congressdai...090309_9126.php
>
> -----
> BEYOND THE BELTWAY: LAWMAKER WANTS STATE TO CONSIDER VEHICLE MILEAGE > TAX
>
> A controversial proposal that would tax motorists by the miles they > drive
> could be taken up by the Colorado Legislature.
>
> Democratic state Sen. Suzanne Williams said last week she will > introduce
> the measure this session, the Denver Post reported.
>
> "We have to find another way to get revenues for our highways," > Williams
> said.
>
> The proposal was included in a Senate highway funding measure, but > it was
> dropped because of strong opposition from Republicans.
>
> The legislation is likely to still draw opposition from Republicans, > who
> say the mileage tax is unfair to those who live in rural areas.
>
> Lawmakers are looking to fund transportation in ways other than the
> state's current 22 cent per gallon gasoline tax.
>
> "That's not the only approach" to replacing the gas tax, said Senate
> Minority Leader Josh Penry, a Republican. "VMT is a bad idea."
>
> Penry said the state should consider increasing the state sales tax.
>
> Several states have considered ending gas taxes and replacing them > with a
> mileage tax.
>
> Oregon is the only state to conduct a pilot project.
>
> land, who vetoed a similar bill earlier this year, backs the most > recent
> version because it pays for the bonuses through bonds instead of > through
> the state's rainy day fund.
>
> It is estimated the bonus will cost at least $106 million to cover
> veterans or surviving families of those who served in the Gulf War, > Iraq
> and Afghanistan.
>
> The state provided bonuses to veterans after World Wars I and II, > and the
> Vietnam and Korean wars, financing them with bonds.
>
> Republicans said the bonuses should not be paid for with bonds.
>
>
> http://www.nationaljournal.com/congressdai...090309_1592.php
>
> -----
> OUTLOOK: HOT TICKET
> By Jason Mann
>
>
> GIRL POWER
> March is Women's History Month, so it's no coincidence the > International
> Republican Institute and the Women's Democracy Network are holding a > gala
> tonight to honor remarkable women. Rep. Kay Granger, R-Texas, who > opened
> the ceremony last year, is receiving this year's Jeane J. > Kirkpatrick award
> -- named after the United States' first female U.N. representative > -- for
> her contributions to politics and the advancement of women. The event
> starts at 7:30 p.m. at the Embassy Suites Convention Center at 900 > 10th
> Street, NW. RSVP to Jackie Harrison at (202) 572-1544.
>
> CREDIT CHECK
> Halfway through his first 100 days in the Oval Office, President Obama
> already has put forth the largest economic recovery package since > the New
> Deal, and it's not without its critics. Today, the Brookings > Institution
> hosts a forum on the current economic crisis by examining "Lessons > from the
> Great Depression for 2009." The parallels between the eras are too > many to
> count, but White House Council of Economic Advisers Chairwoman > Christina
> Romer will discuss how understanding the past can help create a better
> future. The discussion starts at 1:30 p.m. at 1775 Massachusetts > Avenue.
> RSVP by calling (202) 797-6105.
>
> BREAKFAST CLUB
> A few women's organizations, including Women Thrive and the > International
> Center for Research on Women, are hosting a breakfast Tuesday to > discuss
> foreign affairs. Reps. Judy Biggert, R-Ill., James Moran, D-Va., > William
> Delahunt, D-Mass., and Dana Rohrabacher, R-Calif., will lead a > discussion
> on "Women in Afghanistan: Solutions for a Stable Future." It starts > at 8:30
> a.m. at Tortilla Coast restaurant at 400 First Street, SE. RSVP by > calling
> (202) 884-8572.
>
> THE REAL STEVE ZISSOU
> The Environmental Film Festival kicks off this week and it wouldn't be
> complete without recognizing Jacques Cousteau. On Thursday, the > Library of
> Congress' Mary Pickford Theater is hosting a screening of "The Silent
> World." This 1956 Academy Award winner for best documentary first
> introduced the public to the scuba and chronicles Cousteau on his > ship the
> Calypso during an oceanic voyage that includes a shark attack and the
> discovery of a sunken vessel. The movie is free and starts at 7 p.m.
> Reservations are required and can be made by calling (202) 707-5677. > To
> hear more about the legendary oceanographer, head to the National > Museum of
> Natural History March 19. Cousteau's grandson, Philippe, has > continued the
> family business and will discuss his explorations after a screening > of the
> documentary "Wild Ocean" at 7 p.m. Tickets cost $13 and can be > bought by
> telephoning (202) 633-3030.
>
> JUNGLE KING
> You've seen the remake, or the remake of the remake, but have you > seen the
> original "King Kong?" On Saturday, the National Archives is > screening the
> 1933 classic film about that iconic giant ape that terrorizes New > York and
> climbs the Empire State Building. The movie is free and starts at > noon at
> 700 Pennsylvania Avenue, NW. For more information call (202) 357-5000.
>
>
> http://www.nationaljournal.com/congressdai...090307_8196.php
>
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[Snuffysmith]

> CongressDaily PM for Monday, March 9, 2009
>
> --------------------
> CONTENTS
>
> TRANSPORTATION: OBERSTAR VOWS SWIFT ACTION ON $450B-$500B HIGHWAY BILL
> By Terry Kivlan
>
>
> House Transportation and Infrastructure Chairman James Oberstar put a
> price tag of $450 billion to $500 billion today on this year's six-> year
> reauthorization bill for mass transit and highway programs, and > vowed to
> move the legislation quickly. "Our goal is to get it out of the > House in
> the first week of June," he told members of the American Public > Transit
> Association at its annual legislative conference. The last six-year > surface
> transportation reauthorization measure called for $286 billion in > spending.
> APTA has asked for $123 billion in the new reauthorization bill, up > from
> $52 billion in the 2003 legislation. "America needs more transit," > said
> Bill Millar, APTA's president. Oberstar stopped short of committing > himself
> to a funding figure for mass transit in the 2009 bill but promised > it would
> call for a "transformational" expansion of light rail and other > commuter
> systems.
>
> "We can make the 21st century the bright age of mass transit," > Oberstar
> said, noting at one point that a 10 percent shift from automobile to > mass
> transit travel would cut consumption of oil the amount currently > imported
> every year from Saudi Arabia. "In a nation that puts 3 trillion > miles per
> year on highways, we need an alternative," he said. Oberstar also > vowed to
> streamline the Federal Transit Administration's process for > reviewing mass
> transit projects. "It's outrageous that it takes 14 years for a > project to
> get under way," he said, adding the agency should have "an office of
> permanent expediting." He said that as far as he was concerned, the
> stringent cost effectiveness criteria used by the FTA to reject > funding for
> mass transit plans "is dead."
>
> Oberstar further pledged support for long-distance rail. As an > example of
> the benefits of such projects, he cited France's TGV rail system, > which he
> noted provides 45-minute service between Paris and Brussels, only > slightly
> longer than the distance between Washington and New York. He said > the $8
> billion for high-speed rail included in the recently passed stimulus
> spending package will enable the United States to "get a good start" > on
> building similar systems. Millar said he was optimistic about > getting a
> vastly larger funding allocation from the government this year > because "we
> have an administration that hears us and talks our language." But > Oberstar
> warned that the Senate could be a stumbling block for the effort to > enact a
> generous transportation reauthorization bill. "They can't even pass > the
> prayer over there," he said.
>
>
> http://www.nationaljournal.com/congressdai...090309_6065.php
>
> -----
> HEALTH: LAWMAKERS SEEK TO CAPITALIZE ON OBAMA STEM-CELL RULE
> By Anna Edney and George E. Condon Jr.
>
>
> Leading lawmakers pushing to overturn the funding restrictions on
> embryonic stem-cell research today called on Congress to move > quickly to
> pass their legislation to lock federal support into law as President > Obama
> lifted those restrictions through executive order. Sens. Tom Harkin,
> D-Iowa, and Arlen Specter, R-Pa., and Reps. Diana DeGette, D-Colo., > and
> Michael Castle, R-Del., proposed the measure, which Harkin and > Specter plan
> to reintroduce today. Harkin and Specter serve as the chairman and > ranking
> member on the Senate Labor-HHS Appropriations subcommittee that > handles the
> NIH budget. Obama's decision leaves to Congress to decide whether > taxpayer
> dollars will fund the controversial science that many expect holds > cures
> for numerous debilitating diseases. "We will vigorously support > scientists
> who pursue this research," Obama said, adding that his signature would
> ensure "that scientific data is never distorted or concealed to > serve a
> political agenda and that we make scientific decisions based on > facts, not
> ideology."
>
> Appropriators do not earmark funding for stem-cell research, a Senate
> Appropriations Committee aide said, but Democrats expect to boost the
> budget at the National Institutes of Health, the agency tasked with
> funneling embryonic stem-cell research grants. The extent that NIH's > budget
> could go up is unclear. The aide said today senators are focusing on > the
> president's announcement and ensuring future administrations cannot > reverse
> the order. "President Obama's policy has strong support in the Senate,
> where in each of the past two Congresses we have passed bipartisan > stem
> cell legislation," Senate Majority Leader Reid said. Lawmakers did > not come
> up with enough votes to override former President George W. Bush's > veto. In
> August 2001, Bush limited federal funding to a fixed number of > existing
> embryos. Obama's executive order opens the door for much more > research.
> Obama signed the order in an East Room ceremony in front of many > lawmakers
> who have been fighting the Bush restrictions since they were > imposed. There
> was similarly strong support from scientists for the other measure > signed
> today by the president: a memorandum seeking to keep scientific > opinions
> from being influenced or ignored because of politics, as was alleged > during
> the last administration.
>
> GOP leaders characterized the executive order as an attack on innocent
> life. "Nonembryonic stem cell research is not only showing great > promise in
> the laboratory, but its applications are already being used to treat > scores
> of diseases and medical conditions," House Minority Leader Boehner > said.
> "Science and respect for human life can coexist." Obama cast his > decision
> to reverse Bush's order as both medically sound and in line with > public
> opinion. Obama made only passing mention of the religious and moral > debate,
> stating simply that "many thoughtful and decent people are conflicted
> about, or strongly oppose, this research. I understand their > concerns, and
> we must respect their point of view."
>
>
> http://www.nationaljournal.com/congressdai...090309_9055.php
>
> -----
> APPROPRIATIONS: SENATE LINES UP CONTENTIOUS AMENDMENTS TO OMNIBUS
> By Dan Friedman, with Humberto Sanchez contributing
>
>
> Senators are expected to vote this evening on amendments to strip > earmarks
> from the $410 billion omnibus appropriations bill and continue the > District
> of Columbia's school voucher program in what Republicans tout as a > series
> of tough votes for Democrats ahead of the bill's likely passage > Tuesday.
> Senate Majority Leader Reid Thursday night delayed a cloture vote on > the
> measure, which funds most domestic federal programs in FY09, after
> announcing that reversals by several Republicans who previously backed
> cloture left him a vote short. Despite voting with Democrats against > some
> amendments to the bill, Republicans -- including Sens. Olympia Snowe > and
> Susan Collins of Maine, Arlen Specter of Pennsylvania, Lisa > Murkowski of
> Alaska, and Lamar Alexander of Tennessee -- said they would oppose > ending
> debate Thursday unless Reid allowed votes on more GOP amendments. On
> Friday, the House and Senate passed a continuing resolution that > funds the
> programs covered in the omnibus through Wednesday.
>
> With votes on a dozen amendments today and Tuesday, Democrats expect > to
> win back enough GOP backing to end debate and pass the bill. > Republicans
> hope the concession forces Democrats into uncomfortable stands. > Because
> Senate Democrats want to defeat all omnibus amendments so the bill > can go
> straight to President Obama without another House vote, the GOP has > what
> aides consider an open shot at Democrats who are pressed to back
> leadership. An amendment by Sen. John McCain, R-Ariz., expected to be
> defeated tonight, eliminates spending omnibus funds on earmarks not
> provided for in the bill's text. Votes are likely on an amendment by > Senate
> Minority Whip Kyl to control how the State Department provides aid > to Gaza
> Strip inhabitants and another offered by Sen. John Ensign, R-Nev., > to keep
> funding the District of Columbia's school voucher program.
>
> Senators will have to vote, likely Tuesday, on an amendment by Sen. > David
> Vitter, R-La., to eliminate a provision giving lawmakers an > automatic pay
> raise each year after 2010. Also expected Tuesday is an amendment > offered
> by Sen. John Thune, R-S.D., to stop the FCC from using omnibus funds > to
> force broadcasters to give varied political views equal time. > Lawmakers
> never like voting for more pay, and the Senate last month passed a > Fairness
> Doctrine amendment like Thune's. But Senate Democrats are expected to
> defeat those and the other amendments. The chamber is likely to wrap > up
> work Tuesday with a cloture vote immediately followed by final > passage, but
> a vote early Wednesday is possible, aides said.
>
>
> http://www.nationaljournal.com/congressdai...090309_5982.php
>
> -----
> AGRICULTURE: VILSACK: ETHANOL COULD GO TO 20 PERCENT OF GAS OVER TIME
> By Jerry Hagstrom
>
>
> Agriculture Secretary Vilsack said today he believes EPA could raise > the
> level of ethanol allowed in the nation's gasoline supply from 10 > percent to
> 12 or 13 percent soon -- and later to 15 to 20 percent. The former > Iowa
> governor and longtime backer of corn-based ethanol and other renewable
> fuels acknowledged in a speech to the National Farmers Union there > would be
> a debate over the issue and urged the pro-ethanol NFU to make their > views
> known to EPA. "We need your voices and others" heard in the debate, > Vilsack
> said. He added he is looking for ways to help ethanol plants that > are "on
> the edge" of financial viability due to the lower fuel prices. > Vilsack said
> he plans to work with the Energy Department to encourage the > construction
> of transmission lines that can get energy produced in rural states > to urban
> areas. His comments come on the heels of an event Friday hosted by > Growth
> Energy, a pro-ethanol trade group chaired by former Gen. Wesley Clark,
> which asked EPA to raise the level to 15 percent.
>
> President Obama's top three priorities for USDA are improving > nutrition
> for children, developing renewable fuels, and weaning farmers from > their
> dependence on fossil fuels, Vilsack said. Since Obama took office, > Vilsack
> added, the administration has sharpened its focus on food safety in > the
> peanut industry, providing more money to the U.S. Forest Service for
> activities other than fighting fires, and dealing with the > repercussions
> from the financial crisis in the broader economy. Vilsack also said he
> wants to "aggressively promote a resolution of civil rights claims,"
> referring to black farmers who sued USDA in the 1990s citing decades-> long
> discrimination. On the issue of helping dairy farmers, Vilsack said > he is
> trying to figure out how to help the industry but noted that those > efforts
> have become complicated by large-scale production in Australia and New
> Zealand, along with the European Union's decision to use dairy export
> subsidies for its products. He said the Office of the U.S. Trade
> Representative and the State Department have taken an interest in > any dairy
> aid package he develops.
>
> In a separate news conference on USDA's plans to spend the $28 billion
> provided to the department in the stimulus package, Vilsack > announced today
> that Supplemental Nutrition Assistance Program benefits will go up > 13.6
> percent per month April 1. The bill also provides nearly $300 > million to
> help states process additional applications and $145 million of that > will
> be released this month, Vilsack said. Commodity distribution will > also be
> increased, including on Indian reservations. In addition, the USDA > Farm
> Service Agency will immediately use $145 million of the $173 million
> provided in the bill for a direct operating loan program for lower-> income
> farmers to buy farm equipment, feed, seed, and fuel. The USDA Rural
> Development Agency will initially provide nearly 10,000 rural > families with
> $14.9 million for homeownership financing and release funding for > more than
> $400 million in pending applications for water and waste water > grants, on
> top of $140 million in pending applications for water and waste water
> direct loans. Vilsack also said that USDA would begin to use $2.8 > billion
> in stimulus money to bring the high-speed Internet to underserved > areas in
> rural states. It will hold a joint public hearing Tuesday with the > Commerce
> Department and the Federal Communications Commission.
>
>
> http://www.nationaljournal.com/congressdai...090309_2810.php
>
> -----
> AGRICULTURE: FORMER U.S. ENVOY OUTLINES PATH TO LIBERALIZED CUBA TIES
> By Jerry Hagstrom
>
>
> A former chief of the U.S. Interests Section in Havana has urged > President
> Obama to use his power to liberalize relations with Cuba as much as
> possible, including granting U.S. energy companies licenses to > participate
> in the development of Cuban offshore oil, gas and renewable energy
> resources. Vicki Huddleston, a former career Foreign Service officer > who
> headed the U.S. mission in Havana from 1999 to 2002, said Friday at > a news
> conference organized by the National Foreign Trade Council that Obama
> should act because "Cuba has completely learned to live without us. > We need
> to talk about interests in common." She added the United States > should give
> up the idea of "isolation and regime change" and instead construct a > policy
> of "critical and constructive engagement." Huddleston, who has > worked with
> a group at the Brookings Institution to issue Cuba recommendations > to the
> administration, said it is a "myth" that the Helms-Burton law is too
> inflexible to keep the president from changing the commercial > embargo in
> effect since the early 1960s.
>
> Huddleston praised Congress for including provisions in the stimulus
> package to force the Treasury Department to revert to the looser
> Clinton-era regulations on agriculture, medical goods-related travel > and
> payment methods for Cuba's food purchases from the United States. > But she
> added it remains unlikely Congress can do much more on liberalizing
> relations because there is still too much opposition. Noting that > Nevada,
> the home state of Senate Majority Leader Reid, has the third-largest
> Cuban-American population after Florida and New Jersey, she said > Reid will
> likely come under pressure to hold off on liberalizing U.S.-Cuban
> relations.
>
> Huddleston was not sanguine about the current political situation in > Cuba,
> calling the recent purge of officials there an "old-style Soviet > move." But
> she argued there could be an advantage if Obama acted without > demanding
> changes in the regime because unilateral liberalization could catch > the
> Cubans off guard. "Cuba doesn't like surprises," she said. Granting > U.S.
> energy companies licenses, she said, would put U.S. firms in > competition
> with Venezuela for oil development. It would also put the United > States in
> a more favorable position in case Venezuela cannot afford to explore > in
> Cuban waters and the Cubans consider turning to the Russians as an
> alternative energy developer. Huddleston also proposed that in > addition to
> liberalizing travel, the Obama administration should allow licenses > to U.S.
> companies to sell televisions, radios and computers to Cuba and expand
> talks on immigration, drug trafficking, the environment and other > areas of
> mutual interest. Huddleston said she expects Obama to take some > steps on
> Cuba before a Summit of the Americas meeting in Trinidad in late > April.
>
>
> http://www.nationaljournal.com/congressdai...090309_4985.php
>
> -----
> JUDICIARY: SUPREME COURT DECISION LIMITS REACH OF VOTING RIGHTS ACT
>
> The Supreme Court ruled today that electoral districts must have a
> majority of blacks or other minorities to be protected by a > provision of
> the Voting Rights Act. The 5-4 decision, with the court's > conservatives in
> the majority, could make it harder for southern Democrats to draw > friendly
> boundaries after the 2010 Census. The court declined to expand > protections
> of the landmark civil rights law to take in electoral districts > where the
> minority population is less than 50 percent of the total, but strong > enough
> to effectively determine the outcome of elections, the Associated > Press
> reported. In 2007, the North Carolina Supreme Court struck down a > state
> legislative district in which blacks made up only about 39 percent > of the
> voting age population. The court said the Voting Rights Act applies > only to
> districts with a numerical majority of minority voters. The decision
> complicates matters for southern Democrats who will redo political
> boundaries after the next census. Democrats have sought to create > districts
> in which African-Americans, though not a majority, still were numerous
> enough to determine the outcome of elections with the help of small > numbers
> of like-minded white voters. Those districts could be challenged under
> today's decision.
>
> Meanwhile, the court also said it would not consider an appeal of a > 9th
> U.S. Circuit Court of Appeals ruling that overturned an Arizona law > that
> kept independent presidential candidate Ralph Nader off the ballot > in 2004.
> Arizona had a residency requirement for petition pushers and a June
> deadline for independents to submit signatures to get on the November
> ballot. Nader said the ban on out-of-state signature collectors > violated
> free speech rights and said the early filing deadline was unfair > because
> the major party candidates are not officially decided until the > nominating
> conventions are held, usually in late summer. Thirteen states -- > Alabama,
> Alaska, Colorado, Delaware, Florida, Idaho, Michigan, Montana, New
> Hampshire, Ohio, Oklahoma, South Dakota and Wyoming -- wanted the > court to
> overturn the ruling against Arizona's law. They argued the rules > safeguard
> the integrity of their elections.
>
> Justices did agree to consider a case which could affect the large > fees
> paid to investment advisers who pick the stocks for mutual funds. > Three
> investors sued Harris Associates L.P., which advises the Oakmark > complex of
> mutual funds, alleging that Harris' fees are so high they violate the
> federal Investment Company Act. That law is supposed to combat > excessive
> investment adviser fees. Lower courts have dismissed the lawsuit, > saying it
> cannot be brought unless shareholders can prove that the adviser > misled the
> fund directors who approved the fee. The court also rejected > attempts by
> New York City officials and victims of gun violence to hold the > firearms
> industry responsible for selling guns that could end up in illegal > markets.
> Originally filed in 2000, the lawsuit was dismissed by appeals > courts in
> 2005 after Congress passed a law giving gun manufacturers broad > immunity
> from such lawsuits. The city refiled the legal challenge, but the > 2nd U.S.
> Circuit Court of Appeals ruled for the industry in that case.
>
>
> http://www.nationaljournal.com/congressdai...090309_9741.php
>
> -----
> HILL BRIEFS: PELOSI: SENATE WILL BE FIRST TO TAKE UP CARD-CHECK BILL
>
> Labor. The Senate will take up controversial card-check legislation > before
> the House does, House Speaker Pelosi said today. "The bill will > start in
> the Senate," she told CongressDaily. The Senate has always been the > biggest
> hurdle for the Employee Free Choice Act. EFCA is organized labor's top
> priority because it would likely make it easier to form unions. It > passed
> the House in 2007 but stalled in the Senate, where Democrats were > eight
> votes short of cutting off debate on the measure. Advocates on both > sides
> are stepping up pressure on Senate moderates in both parties, and > unions
> have said they will have the 60 votes they need if Democratic Senate
> candidate Al Franken is seated. Sen. Tom Harkin, D-Iowa, and House
> Education and Labor Chairman George Miller were working out details > today
> on the timing of the bill's introduction, which will spark a fierce > outcry
> from the Republicans and business groups who have already spent > millions to
> oppose it. "The introduction of the bill gives us another rallying > cry to
> get the business community in to ride in and oppose it," said Randel
> Johnson, vice president for labor at the U.S. Chamber of Commerce.
>
>
> http://www.nationaljournal.com/congressdai...090309_4977.php
>
> -----
> HILL BRIEFS: MOST U.S. PORT WORKERS HAVE NEW ID CARDS, TSA SAYS
>
> Homeland Security. The Transportation Security Administration > announced
> today that 1 million workers who have access to secure areas at the
> nation's ports have been enrolled in the Transportation Worker
> Identification Credential program. Port employees, union workers and
> truckers are required to undergo background checks and receive a > secure
> identification card under the TWIC program, which has experienced > repeated
> operational setbacks since being created after the Sept. 11, 2001,
> terrorist attacks. But the program has enrolled a majority of the > estimated
> 1.2 million workers who must be vetted by April 14, according to a TSA
> statement. "Enrolling 1 million workers in less than 18 months is a
> testament to the collaborative efforts of TSA and the United States > Coast
> Guard on this important maritime security effort," said Gale Rossides,
> TSA's acting administrator. But the program continues to face > congressional
> criticism, mainly because TSA has not installed TWIC card readers at > most
> U.S. ports. Critics say the lack of readers still leaves the ports
> vulnerable to infiltration by unvetted personnel. But TSA has > countered
> that the Coast Guard conducts random compliance inspections at the > ports.
>
>
> http://www.nationaljournal.com/congressdai...090309_3567.php
>
> -----
> HILL BRIEFS: UNCOUNTED ABSENTEE BALLOTS IN MINN. YIELD FEW VOTES
>
> Senate Races. Only a tiny fraction of sealed absentee ballot envelopes
> that judges in the Minnesota Senate trial ordered searched for voter
> registration cards contained the key document, the Associated Press
> reported. Deputy Secretary of State Jim Gelbmann says county and city
> election workers found about 80 properly completed registration > cards in
> the secrecy envelopes of absentee ballots. The cards were not found on
> Election Day because the voters put them in the wrong envelope. The > judges
> hearing Republican Sen. Norm Coleman's election lawsuit asked for the
> review of 1,500 ballot envelopes rejected because of registration > issues as
> the panel considers which rejected ballots to include in the Senate > tally.
> Democratic nominee Al Franken is leading the race, and the finding > further
> cuts down the pile from which Coleman can make up the 225-vote > deficit. The
> trial entered its seventh week today.
>
>
> http://www.nationaljournal.com/congressdai...090309_3656.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "Only God decides when the wind blows."
>
> -- Sen. Charles Grassley, R-Iowa, in remarks to the National Farmers > Union
> today. Grassley told the NFU that he is upset that EPA wants to try to
> force farmers to control dust.
>
>
> http://www.nationaljournal.com/congressdai...090309_8330.php
>

[Snuffysmith]

> CongressDaily PM for Tuesday, March 10, 2009
>
> --------------------
> CONTENTS
>
> APPROPRIATIONS: SPEAKER PELOSI SUGGESTS SECOND STIMULUS MAY BE NEEDED
> By Humberto Sanchez and Dan Friedman
>
>
> House Speaker Pelosi said today she is open to the idea of another
> economic stimulus package if necessary, given the depth of the > economic
> crisis. "We have to keep the door open," Pelosi told reporters after a
> meeting with economists. Her comments followed those of Moody's > Economy.com
> chief economist Mark Zandi, who said another stimulus is a "reasonable
> possibility" given the economic crisis. Unemployment rose to 8.1 > percent in
> February as the economy lost 651,000 jobs, the Labor Department said > last
> week. While another stimulus would require more tax dollars upfront, > it
> would "cost taxpayers less in the long run," said Zandi, who added > it would
> be a mistake not to respond aggressively. For now, House Democratic > leaders
> said they intend to wait to see what effect the $787 billion stimulus
> enacted last month has on the recession. "We have to make sure the > recovery
> works," said Pelosi, who characterized it as a "fiscally sound > package."
> She also pledged that funding in the stimulus was a one-time event > that
> would not be factored into the baselines of future annual spending
> bills.Looking for more?
> For more information and past stories about the omnibus and the
> appropriations process, see our Appropriations page.
>
> Meanwhile, Senate Democratic leaders are looking to wrap up work > today on
> a $410 billion FY09 omnibus spending bill, with the Senate expected > to hold
> roll-call votes on about five of the remaining seven Republican > amendments.
> Those votes are expected to be followed by a vote to cut off debate,
> followed by a vote on final passage. Senate aides said an amendment > by Sen.
> David Vitter, R-La., which eliminates automatic cost-of-living > increases
> for lawmakers, represents the toughest vote because it would allow
> political challengers to accuse senators who vote "no" of voting to
> increase their pay in a recession. Lawmakers have already voted > against
> receiving pay raises in 2010.
>
> Reid is trying to make a vote against the Vitter amendment easier by
> giving colleagues a chance to vote on a similar stand-alone bill he > has
> placed on the calendar, GOP senators and staffers said. "I assume he's
> going to pull it off the calendar and ask for a [unanimous consent
> agreement] to pass it and draw votes away from me," Vitter said. > Republican
> aides said that while adoption of Vitter's amendment would force the > House
> to confront the pay raise issue, Reid's standalone bill would never > come up
> in the House, allowing senators to say they voted against a pay raise
> without altering the omnibus bill with the knowledge that the Reid > bill
> will never become law. "It's a pretty transparent attempt to provide > cover
> for people," said Vitter.
>
> While the Senate wraps up work on the omnibus, the House is preparing
> another short-term continuing resolution that would keep the > government
> funded in case Congress needs more time to finish work on the bill. > The
> omnibus is made up of nine of the 12 annual FY09 appropriations bills
> Congress has not approved. Programs covered by the bills are being > funded
> at FY08 levels by a continuing resolution that expires Wednesday.
>
>
> http://www.nationaljournal.com/congressdai...090310_4293.php
>
> -----
> TRADE: GEITHNER LETTER: OMNIBUS CUBA CHANGES WILL BE LIMITED
> By Dan Friedman
>
>
> With Senate Democrats working to lock down votes to a pass $410 > billion
> omnibus spending bill, top White House officials have pitched in by
> assuring two previously wavering Democratic senators that language > in the
> bill on U.S. trade policy with Cuba will not be enforced. Sens. Robert
> Menendez, D-N.J., and Bill Nelson, D-Fla., said last week they might > not
> vote to end debate on the omnibus due to changes the measure makes in
> travel and export restrictions with Cuba. The threatened defection > of the
> Democrats left Reid seeking votes from several Republicans who > Thursday
> announced they would not support cloture, forcing Reid to delay a > vote on
> the omnibus until today. But Menendez and Nelson now say they will > back the
> bill based on written assurances sent last Thursday by Treasury > Secretary
> Geithner. White House Chief of Staff Emanuel is copied on the > letters. The
> support from Nelson and Menendez reduces the number of GOP votes > Reid needs
> to pass the omnibus.
>
> In Thursday's letter, Geithner noted that the senators are concerned > about
> a section of the bill that blocks Treasury from enforcing a Bush
> administration rule requiring cash-in-advance payment for agricultural
> shipments to Cuba. But he said the language will not become law when > the
> bill passes. "Treasury believes that this change will likely have no
> influence on current financing rules," he wrote. "The term 'cash in
> advance' is in the Trade Sanctions Reform and Export Enhancement Act > of
> 2000 and therefore private parties are and will continue to be > statutorily
> required to comply with payment terms. Because the bill's language > does not
> modify or negate the ... act, exporters will still be required to > receive
> payment in advance of shipment." Sen. Mel Martinez, R-Fla., who also
> expressed concern about the Cuba language, said he believes the letter
> makes clear that the provision will not alter U.S. policy regarding
> agricultural shipments.
>
> After the senators in a Friday letter said they continued to have > concerns
> about a section of the bill dealing with private travel, Geithner > Monday
> offered further assurance. He noted the department would issue new
> regulations that narrow language in the bill loosening travel laws by
> making clear changes apply only to a "narrow class of business > travelers"
> traveling to Cuba to sell agricultural and medical goods. They would > be
> required to obtain a license to travel to Cuba, Geithner noted.
>
>
> http://www.nationaljournal.com/congressdai...090310_2250.php
>
> -----
> FINANCE: SCHUMER, DURBIN UNVEIL FINANCIAL PRODUCT REGULATION BILL
> By Bill Swindell
>
>
> Top Democrats today unveiled legislation that would create a consumer
> protection agency, similar to the Consumer Product Safety Commission,
> responsible for regulating financial products. Sen. Charles Schumer,
> D-N.Y., and Majority Whip Durbin said their bill was needed to protect
> consumers from the predatory mortgage loans and abusive credit card
> practices that have contributed to the economic crisis. "The financial
> companies have found ways to basically dupe consumers," Schumer said.
> "Disclosure doesn't work." Under the bill, a new Financial Product > Safety
> Commission will be created with a five-member panel appointed by the
> president and confirmed by the Senate. Reps. William Delahunt, D-> Mass., and
> Brad Miller, D-N.C., have sponsored a companion bill in the House. > The new
> agency would have lead authority to make rules covering the sale of
> financial products, including the ability to ban abusive, unfair or
> deceptive offerings. It would also coordinate enforcement among all > other
> federal financial regulators, though state attorneys general would > have
> similar powers. The bill would not prevent states from setting higher
> levels of protection. Funding for the new agency would come through > the
> appropriations process, not agency fees.
>
> The bill, based on a proposal by Harvard University law professor
> Elizabeth Warren, is likely to spark a hot debate when Congress > takes up an
> overhaul of the financial regulatory system. Financial services > companies
> oppose changing the current system, under which the agencies that > monitor
> the safety and soundness of financial institutions are also > responsible for
> consumer protection. "Consumer protection is inexorably linked with > safety
> and soundness and is best kept within the current regulators," the
> Financial Services Roundtable said in a statement. But consumer > activists
> contend the current system does not work, noting that the Federal > Reserve,
> which has had authority to regulate home mortgages since 1994, > waited until
> last year, in the midst of the foreclosure crisis, to issue new > rules to
> protect borrowers. "Currently, bank regulators are also charged with
> regulating the soundness of financial institutions, which often > means they
> ignore or overlook protecting consumers from unsafe credit products. > The
> legislation would no longer allow financial institutions to shop > around at
> the state or federal level for a regulator that will keep oversight > at a
> low level," said a statement by the Consumer Federation of America, > the
> AFL-CIO and the Center for Responsible Lending.
>
>
> http://www.nationaljournal.com/congressdai...090310_3638.php
>
> -----
> TRADE: CHAIRMAN BAUCUS: FINANCE PANEL TO VOTE ON KIRK THURSDAY
> By Peter Cohn
>
>
> The Senate Finance Committee will vote Thursday on the nomination of
> former Dallas Mayor Ron Kirk to be U.S. Trade Representative, Senate
> Finance Chairman Max Baucus announced today. Kirk appeared before > the panel
> in a rapid-fire hearing Monday evening that was cut short due to > votes on
> amendments to the FY09 omnibus appropriations bill. There appear to > be no
> impediments to his confirmation, although the hearing Monday was > sparsely
> attended. There was little reference to Kirk's tax troubles, which > include
> nearly $10,000 in underpayments uncovered by Finance investigators.
>
> Across the Capitol, House Ways and Means Trade Subcommittee Chairman
> Sander Levin, D-Mich., held an organizational meeting for the 111th
> Congress, outlining a broad agenda ranging from a hearing on the trade
> aspects of climate change March 24 to renewal of expiring trade > preferences
> programs granting numerous developing nations duty-free access to U.S.
> markets. Levin said he was heartened by Kirk's testimony Monday, which
> signaled a shift away from negotiating new trade agreements and toward
> enforcement of existing ones. He said he hopes to move trade > enforcement
> legislation that he introduced with Ways and Means Chairman Charles > Rangel
> in January "expeditiously," but said the bill could be revamped in > talks
> with Kirk and the Obama administration.
>
> Levin would not comment on potential movement on pending free trade
> agreements, such as a deal with Panama that Kirk and Baucus said > Monday
> should move quickly. That deal's most obvious hurdle fell when > Panamanian
> National Assembly Speaker Pedro Miguel Gonzalez, indicted for the > slaying
> of a U.S. soldier in 1992, stepped down last fall. But it still faces
> criticism that it does not do enough to protect workers and the > environment
> and has banking secrecy laws that protect tax haven-abusers. "That > is the
> biggest concern I have with Panama," said Rep. Lloyd Doggett, D-Texas.
> "That needs to be fully explored before we act." Doggett last week
> introduced legislation, co-sponsored by Levin, to crack down on > individuals
> and companies that shelter money from the IRS in overseas tax havens.
>
> Levin, who opposes the Korean-U.S. Free Trade Agreement as unfair to > U.S.
> automakers, praised Kirk's comments Monday that the existing deal > signed by
> the Bush administration "isn't fair" and is "simply unacceptable." > Rep.
> Linda Sanchez, D-Calif., a new member of the panel and an opponent of
> expanding trade agreements without better worker protections, injected
> herself into the mix with a plea for oversight hearings on the North
> American Free Trade Agreement and Central America Free Trade > Agreement.
> Levin agreed and singled out problems in El Salvador and Guatemala > that are
> cause for concern about CAFTA's implementation. Ways and Means Trade
> Subcommittee ranking member Kevin Brady, R-Texas, made a plea for > "balance"
> in the committee's agenda and noted that CAFTA has had "a real > positive
> impact" on the poorest and most rural areas of Guatemala.
>
>
> http://www.nationaljournal.com/congressdai...090310_3582.php
>
> -----
> HEALTH: ORSZAG STICKS TO BUDGET NEUTRALITY FOR HEALTHCARE OVERHAUL
> By Anna Edney
>
>
> Lawmakers and interest groups looking for a little pay/go leniency > when it
> comes to universal health care will not get a helping hand from the > Obama
> administration. Despite prodding from Senate Finance Chairman Max > Baucus in
> the other direction, OMB Director Orszag today said a healthcare > overhaul
> needs to be budget neutral over five to 10 years, what he described > as the
> medium term. "You have to invest to get savings later, but again, > given our
> medium-term fiscal trajectory, we think the best way to move forward > is to
> invest in a deficit neutral budget," Orszag said. Baucus had asked > Orszag
> whether it might be a mistake to focus on paying for universal > health care
> in a six-year window. Baucus and many advocacy groups, including > healthcare
> industry lobbies and groups working for businesses and patients, have
> raised concerns that focusing on fully paying for healthcare could > hinder
> an overhaul. They argue CBO is limited by scoring rules from > realizing the
> full potential of many cost-saving measures. (See related item, page > 8).
>
> Orszag, who formerly led CBO, agreed with the concern and suggested
> changes should be made. "There's a group of scorekeepers that should > get
> together to discuss the rules; that would be a good thing" he said. > Orszag
> recently has been the administration's point man on universal health > care,
> but he said today that White House Health Reform Office Director > Nancy-Ann
> DeParle would begin meeting with senators to craft comprehensive
> legislation this week and take over that role. Orszag and HHS
> Secretary-designate Kansas Gov. Kathleen Sebelius will be involved > in the
> effort. Sebelius also will be on Capitol Hill this week meeting with
> senators as she awaits confirmation.
>
>
> http://www.nationaljournal.com/congressdai...090310_9293.php
>
> -----
> EMPLOYMENT: CARD-CHECK BILL SUCCESS IN SENATE MAY DEPEND ON FRANKEN
> By Kasie Hunt
>
>
> The Employee Free Choice Act depends on Democrat Al Franken winning > the
> Minnesota Senate race, backers said today as they introduced the > bill in
> the House and Senate. "Mr. Franken's election would be very > important to
> the passage of this bill," said Sen. Tom Harkin, D-Iowa, who > introduced the
> Senate bill. He said Democrats were counting on Franken being > declared the
> winner before the end of the spring recess (see related item, page > 11) so
> the Senate, which will consider the bill before the House does, > could bring
> it up in May or June. House Education and Labor Chairman George Miller
> introduced the bill there. The legislation, commonly referred to as > card
> check, would allow workers to unionize if a majority signed > authorization
> cards, and it would strip a company's ability to demand a secret-> ballot
> election as proof of support. It would require mandatory government
> arbitration of the company's first contract with a union if the > parties
> cannot come to an agreement within 90 days. The language in the bill > is the
> same as the version that passed the House in 2007 but stalled in the > Senate
> eight votes shy of the necessary 60.
>
> Senate Democrats will need to retain all the support they had before > to
> overcome a certain Republican filibuster, and some moderate > Democrats from
> conservative-leaning states have expressed reservations about the
> legislation in recent days. Harkin downplayed concerns. "I see no > erosion
> among Senate Democrats on the basic premise," Harkin said, though he
> acknowledged there would likely be changes before the vote took place.
> "There might be some amendments that don't destroy the underpinnings > of the
> bill ... that might be acceptable. That could happen," he said. Sen. > Ben
> Nelson, D-Neb., said Monday he could not support the bill in its > current
> form. The bill has 40 co-sponsors in the Senate and 223 in the > House, where
> three Republicans -- Reps. Tim Murphy of Pennsylvania, Frank > LoBiondo of
> New Jersey and John McHugh of New York -- have signed on. Supporters > and
> opponents have framed the debate in economic terms. Republicans say > the
> legislation would force unions on small businesses that can't even > afford
> to hire labor lawyers and would cost jobs in the long run. Miller said
> passing the measure was about raising wages and living standards to > make
> the economic recovery "fair and sustainable."
>
>
> http://www.nationaljournal.com/congressdai...090310_1446.php
>
> -----
> DEFENSE: TAYLOR URGES NAVY TO ALLOW COMPETITION FOR LITTORAL SHIP
> By Megan Scully
>
>
> House Armed Services Seapower and Expeditionary Forces Subcommittee
> Chairman Gene Taylor, D-Miss., today called on the Navy to open up
> competition for the troubled Littoral Combat Ship to bring down the
> program's cost. "It appears to me the solution is simple," Taylor said
> during a hearing. "Bring true competition into this program, not the
> pseudo-competition we currently have between the two poor performers > but
> true competition based on price, schedule and quality." General > Dynamics
> Inc. and Lockheed Martin Corp. are slated to build two versions of > the LCS,
> a ship that Navy officials had hoped would cost just $220 million. > But the
> program has more than doubled in costs since its inception and has > been
> delayed 18 months. "What makes you think you owe these two shipyards
> anything?" said Taylor, suggesting that other shipyards get a chance > to
> build the shallow-water vessel. He added that he sees the need for > the LCS,
> but questions whether it is affordable.
>
> But the Navy appears committed to keeping the two lead contractors > in the
> program, with the possibility of dropping one firm at some point. > Opening
> up competition for the program could add $60 million to the price of > each
> ship and delay production by another 18 months, said Rear Adm. William
> Landay, the service's program executive officer for ships. So far, > Lockheed
> Martin has completed construction on the first LCS, while General > Dynamics
> is about 85 percent finished building the second ship. In 2007, the > Navy
> canceled contracts with both defense firms to build the third and > fourth
> ships after their costs rose to more than $500 million a piece. > During the
> hearing, service officials said they remain committed to building > all 55
> planned LCSs and are working on fixed-price contracts with the two
> companies for the additional ships. Landay would not disclose how > much the
> next ships would cost, but he said "learning-curve benefits should be
> evident" when the contractors build the next ships. Meanwhile, Navy
> officials stressed that the service, whose last-minute design changes
> helped drive up the ship's price, is committed to current designs.
> Officials acknowledged that changes to the hull design after the > initial
> contracts were awarded were the primary reasons behind the cost > increases.
>
>
> http://www.nationaljournal.com/congressdai...090310_3880.php
>
> -----
> JUDICIARY: CHAIRMAN LEAHY'S 'GATEKEEPER' LANGUAGE GETS BACKING
> By Andrew Noyes
>
>
> Witnesses and stakeholders appearing before the Senate Judiciary > Committee
> today said including "gatekeeper" language in patent legislation > sponsored
> by Senate Judiciary Chairman Patrick Leahy and Sen. Orrin Hatch, R-> Utah,
> would be a solid first step in addressing the controversial issue of > how
> damages are calculated in infringement lawsuits. Such language was > backed
> by Judiciary ranking member Arlen Specter and Sen. Dianne Feinstein,
> D-Calif., when a similar bill was under consideration in the 110th
> Congress. The Specter-Feinstein proposal, which would provide courts > with
> clearer requirements on handling evidence of infringement and > determining
> damages, was not included in the current version or in the bill that > passed
> Leahy's panel in July 2007. That legislation stalled and was shelved > for
> reintroduction this year.
>
> Micron Technology CEO Steven Appleton, IBM Vice President David > Kappos,
> Tessera Vice President Taraneh Maghame, Stanford Law School > professor Mark
> Lemley and Intellectual Property Owners Association Executive > Director Herb
> Wamsley all praised the gatekeeper concept. However, Appleton, > Kappos and
> Lemley want the bill to go further to address the value of an entity's
> contributions to a patent. Leahy called the Specter-Feinstein proposal
> "constructive," pledging to work with members and industry > stakeholders to
> craft the right language. Feinstein vowed not to vote for any bill > unless
> various interests could find middle ground. "High-tech seems to feel
> they'll get whatever they want," she said. "No one element ... > should rule
> the roost."
>
> Specter cautioned that a case slated to go before the U.S. Court of
> Appeals for the Federal Circuit later this year could shed new light > on the
> scope of the "entire market value" standard, suggesting Leahy > postpone a
> markup until that case is heard. "If it takes a little more time, > we'll
> have to spend the time," Specter said. Meanwhile, Kappos said > lawmakers
> should weigh the potential impact of a recent Supreme Court ruling > that
> patent law cannot be used to control the subsequent use or > disposition of a
> product "that substantially embodies a patent" once the product has > been
> sold.
>
> The witnesses painted vastly different pictures of how the > legislation, as
> introduced, could affect the nation's economy, particularly the > impact of
> damages language. Appleton said his firm spent $30 million in 2008
> defending against what he said was unnecessary litigation. He also > argued
> that in the tech sector alone, 100,000 jobs would be crated over > five years
> if Leahy's bill passed. For its part, IBM's Kappos noted his company > earns
> about $1 billion of intellectual property-related revenue annually > and has
> been the leading assignee of U.S. patents for 16 years. "Failure to > act [on
> patent reform] will harm the nation's economy at a time when we can > ill
> afford it," Kappos said. But Maghame argued Leahy's language would > diminish
> the value and enforceability of patents, particularly among small > firms
> such as Tessera, and lead to a "massive and irreversible transfer of
> wealth" abroad. Johnson & Johnson Chief IP Counsel Philip Johnson, who
> opposes the damages text as written, called on Congress to "preserve > and
> enhance the patent system's incentives."
>
>
> http://www.nationaljournal.com/congressdai...090310_9373.php
>
> -----
> HILL BRIEFS: FRANK HOPES SEC WILL REINSTATE 'UPTICK' RULE ON TRADES
>
> Finance. House Financial Services Chairman Barney Frank said today > he is
> hopeful that SEC Chairwoman Mary Schapiro would reinstate the > "uptick rule"
> within the month to bring more stability to the financial markets. > The SEC
> eliminated the rule, which required that each short-selling > transaction be
> at a price higher than the previous trade, in 2007. The agency > adopted the
> rule in 1938 to stem volatility from the previous year, when the > market
> dropped by about a third. Advocates say the rule would help prevent > a free
> fall in stock prices. Senate Banking Chairman Christopher Dodd said > today
> he agrees with Frank on the issue and that it is a good idea to > reinstate
> the rule. Frank also said his panel would work on modifying mark-to-> market
> accounting rules, which require companies to value assets at current
> prices, not their value when they mature. Frank has ruled out > eliminating
> these rules but spoke about possibly giving regulators more > flexibility on
> how to mark assets that have been temporarily devalued. The issue is
> crucial in the real estate market, where many properties that have > been
> drastically devalued are expected to rebound. The Capital Markets
> Subcommittee will hold a hearing on these accounting rules Thursday. > Frank
> also said his panel would explore ways to get more Troubled Asset > Relief
> Program funds to smaller banks.
>
>
> http://www.nationaljournal.com/congressdai...090310_3627.php
>
> -----
> HILL BRIEFS: EXPERTS DETAIL CAUSES OF FINANCIAL CRISIS IN SENATE > HEARING
>
> Banking. The crisis in the U.S. financial markets was caused by an > excess
> of unsound, risky actions by too many financial institutions and an > absence
> of oversight and action by the regulatory bodies, a panel of experts > told
> the Senate Banking Committee today. Most of the witnesses, from > academia
> and investment institutions, called for creation of a "systemic risk
> regulator," a strengthened Federal Reserve and a separate consumer
> protection agency, which could be the SEC merged with the Commodity > Futures
> Trading Commission. "Self regulation alone simply does not work," > said John
> Coffee, professor of law at Columbia University. Damon Silvers, > associate
> general counsel for the AFL-CIO, expressed concern over broader > power for
> the Fed. Senate Banking Chairman Christopher Dodd cited the Fed and > the SEC
> as reasons for "what may be the greatest regulatory failure in human
> history." Dodd said the hearing was the start of a process to > rebuild the
> nation's financial structure. He said the approach would ensure a > new era
> of responsibility in financial services and a tough set of > protections for
> investors. Banking ranking member Richard Shelby agreed that "a broad
> failure of risk management in the financial system led us to where > we are
> today." He added that Congress cannot create a regulator big enough to
> cover everything and investors must exercise due diligence in > decisions.
>
>
> http://www.nationaljournal.com/congressdai...090310_9133.php
>
> -----
> HILL BRIEFS: NAACP MAY SCORE HOUSE VOTE ON D.C. VOTING RIGHTS
>
> Politics. The NAACP may score the vote on legislation granting a House
> seat to the District of Columbia on its vote ratings, adding other
> potential problem for Democratic leaders looking to cobble together > a deal
> to pass the measure. NAACP Washington bureau director and vice > president
> for advocacy Hillary Shelton said the group has told House Democratic
> leaders it is considering not just the vote on the bill but the > amendment
> added by the Senate to eliminate many of the district's gun > restrictions.
> That amendment was pushed by the National Rifle Association. A vote > on the
> underlying bill was delayed last week because of the gun provision, > which
> has made getting support for the bill difficult among conservative
> Democrats. Senior Democratic sources said the NAACP joining the NRA in
> scoring the gun provision will only exacerbate the problem they have > in
> getting together enough votes to move the bill forward. "If the NAACP
> decides to go to war on this gun provision, that's a real problem," > said
> one senior Democratic aide. House Majority Leader Hoyer said today > he is
> working to find a deal on the gun issue. "There is no 'the' option > right
> now," he said. "I want the option that gets the job done."
>
>
> http://www.nationaljournal.com/congressdai...090310_4141.php
>
> -----
> HILL BRIEFS: PETERSON: NO ACTION ON ANIMAL ID BILL WITHOUT CONSENSUS
>
> Agriculture. House Agriculture Chairman Collin Peterson will not > pursue
> animal identification legislation unless he gets clear support from > Senate
> Agriculture Chairman Tom Harkin and Agriculture Secretary Vilsack. In
> comments to the National Farmers Union Monday, Peterson said he does > favor
> a system of mandatory animal identification that would allow the > trace-back
> of disease to its source, and he has scheduled a hearing on the issue
> Wednesday. Furthermore, a recent briefing by the Homeland Security
> Department about the problems that would follow an outbreak of
> hoof-and-mouth disease among cattle has intensified his support. But > all
> parties must "be willing to take this on," Peterson said. Farm and > ranch
> groups oppose a mandatory program due to cost and fears that > meatpackers
> and others might try to push legal responsibility for food-borne > illnesses
> back to them. In other comments, Peterson said he and Vilsack have
> discussed taking up management issues at USDA, potentially including > crop
> insurance, computers, and USDA's record in following income > restrictions in
> conservation-grant awards. Peterson said he believes Vilsack has an
> interest in better management because he eliminated three Iowa > departments
> when he was governor of that state.
>
>
> http://www.nationaljournal.com/congressdai...090310_5085.php
>
> -----
> HILL BRIEFS: VILSACK OUTLINES BROADBAND EXPANSION EFFORTS
>
> Commerce. Agriculture Secretary Vilsack, joined by Commerce > Department and
> FCC officials, today outlined the Obama administration's efforts to > expand
> broadband access as part of the economic stimulus package. > Representatives
> from business, state and local governments and other organizations > packed
> the Commerce Department's auditorium in hopes of finding out how > they can
> get a piece of the $7.2 billion in broadband funding included in the
> stimulus. Officials from the Commerce Department's National
> Telecommunications and Information Administration, which received $4.7
> billion for broadband grants, and the Agriculture Department's Rural
> Utilities Service, which got $2.5 billion to expand broadband access > in
> rural areas, said they were seeking advice from the public in their > efforts
> to choose projects aimed at meeting the goals outlined in the > stimulus law.
> These include providing broadband to unserved areas, improving > access in
> underserved areas, providing broadband education, awareness, > training and
> equipment, and stimulating demand for broadband and job creation. > NTIA, RUS
> and the FCC will hold a series of public meetings this month in > Washington
> as well as field hearings in Las Vegas and Flagstaff, Ariz. An NTIA
> official did say the money would be provided in three stages, with the
> initial grants available April through June, followed by a second > round
> from October to December and the third round in April through June > 2010.
> All the awards must be made before the end of FY2010.
>
>
> http://www.nationaljournal.com/congressdai...090310_6733.php
>
> -----
> HILL BRIEFS: CBO'S ELMENDORF BEARISH ON HEALTHCARE SAVINGS
>
> Health. CBO Director Elmendorf warned lawmakers today that whatever > course
> Congress and President Obama take on a healthcare overhaul, it may not
> produce the huge cost savings that most reformers desire. Over the > first 10
> years, in particular, any major reform program "might not yield > substantial
> budgetary savings or reductions in national spending on health care,"
> Elmendorf told the House Energy and Commerce Health Subcommittee. He > added
> that various options might even cost more, citing analyses that > foretell
> the complexity of any overhaul scheme. He noted as one example > "expanding
> use of disease management." Such a proposal would likely improve > health and
> may well be cost-effective. But those efforts may still fail to > generate
> net reductions in spending on health care because the number of people
> receiving the services is generally much larger than the number who > would
> avoid expensive treatments as a result.
>
>
> http://www.nationaljournal.com/congressdai...090310_7938.php
>
> -----
> HILL BRIEFS: REPUBLICANS URGE SLOWER APPROACH TO RADIO ROYALTIES BILL
>
> Judiciary. House Judiciary Committee members clashed today over a bill
> proposed by House Judiciary Chairman John Conyers that would end the
> royalty exemption given to AM and FM radio stations. At a hearing, > many
> panel members agreed that under current laws artists are not > compensated
> for songs played on terrestrial radio. In contrast, satellite radio > and Web
> casters do have to pay royalties to performers. Many panel > Republicans,
> however, favored a slower approach to the issue of royalties. House
> Judiciary ranking member Lamar Smith proposed designating a third-> party to
> study the economic impact of royalty payments for both performing > artists
> and radio stations. Republicans also urged artists and radio-station > owners
> to hammer out their own solution instead of getting Congress > involved. But
> Rep. Howard Berman, D-Calif., said if the National Association of
> Broadcasters did not help negotiate a settlement, the committee > would have
> "no choice" but to move forward with the legislation. Conyers said > that
> although the bill had wide support behind closed doors, many members > were
> afraid to anger local radio stations.
>
>
> http://www.nationaljournal.com/congressdai...090310_3945.php
>
> -----
> HILL BRIEFS: LOFGREN: WHITE HOUSE KEY FOR PASSING IMMIGRATION OVERHAUL
>
> Immigration. Rep. Zoe Lofgren, D-Calif., said today presidential
> leadership will be needed to pass any significant immigration reform > this
> year. Lofgren supports measures that would make it easier for highly
> educated immigrants, particularly those with advanced degrees in the
> sciences, to remain in the United States. "It is in our best > interest to
> keep educated immigrants here rather than make them go back to their
> countries and found start-ups that rival our own," said Lofgren, who > heads
> the House Judiciary Immigration Subcommittee. Lofgren was speaking > at a
> lunch hosted by the Technology Policy Institute, which presented a > report
> on how high-skilled immigrants affect the U.S. economy. She declined > to
> offer details on when any legislation might be unveiled, but she did > note
> that it might be difficult to win Republican support.
>
>
> http://www.nationaljournal.com/congressdai...090310_7241.php
>
> -----
> HILL BRIEFS: EPA TO REQUIRE MANDATORY GREENHOUSE GAS REPORTS
>
> Environment. EPA officials today proposed a new reporting system that
> would require companies to disclose how much greenhouse gas they are
> releasing into the atmosphere. The order would cover approximately > 13,000
> facilities nationwide, including refineries, automobile manufacturers,
> power plants, coal mines and large manure ponds at farms. Together, > the
> facilities account for an estimated 85-90 percent of the country's
> greenhouse gas emissions. Companies would have to file their first > reports
> in 2011. "Our efforts to confront climate change must be guided by > the best
> possible information," said EPA Administrator Jackson. "This is a > critical
> step toward helping us better protect our health and environment -- > all
> without placing an onerous burden on our nation's small businesses." > Sens.
> Dianne Feinstein and Barbara Boxer, California Democrats who are the > lead
> authors of a bill to accomplish the same goal, joined Sens. Amy > Klobuchar,
> D-Minn., and Olympia Snowe, R-Maine, in applauding the move.
>
>
> http://www.nationaljournal.com/congressdai...090310_4663.php
>
> -----
> HILL BRIEFS: POST-TRIAL DELIBERATIONS CONTINUE IN STEVENS' CASE
>
> Judiciary. Nearly five months after former Sen. Ted Stevens, R-> Alaska, was
> convicted on political corruption charges, U.S. District Judge Emmet
> Sullivan said today that post-trial deliberations will continue for at
> least another month, with no date for sentencing in sight. At a > hearing to
> discuss the case, Sullivan scheduled another hearing for April 15 to
> discuss results of interviews the government plans to turn over to the
> Stevens' defense team. The interviews have been conducted by Justice
> Department officials with people named in allegations by FBI whistle-> blower
> Chad Joy and prosecution witness David Anderson. Joy has claimed
> prosecutorial misconduct in the case and Anderson came forth after the
> trial to say he would not have testified as he did if he had not been
> coached and promised immunity by prosecutors. Sullivan said he is > weighing
> whether to have Joy and Anderson testify under oath in open court on > their
> allegations. Defense lawyers pounced on Joy's allegations to demand > that
> the indictment against Stevens be dismissed or that he get a new > trial.
> There has been no ruling on those motions. Joy alleged that lead FBI > agent
> Mary Beth Kepner had an improper relationship with the chief > prosecution
> witness, Bill Allen, former president of VECO. Stevens was convicted > Oct.
> 27 on seven counts of falsifying Senate financial disclosure forms.
>
>
> http://www.nationaljournal.com/congressdai...090310_1529.php
>
> -----
> HILL BRIEFS: WAXMAN WANTS MEDICARE CHANGES AS PART OF REFORM
>
> Health. House Energy and Commerce Chairman Henry Waxman today assured
> physicians that he was committed to changing the Medicare physician > payment
> system as part of the effort to reform health care. "We want to reward
> quality care and we want to have a dependable payment system," > Waxman said
> at the American Medical Association annual advocacy conference. As > he wooed
> the group's support for reform, he twice emphasized that he viewed the
> current payment system as unacceptable. He said "we have to do a much
> better job of rewarding primary care." Physicians have long > complained that
> the Medicare reimbursement system has become inadequate and > arbitrary as
> Congress has sought to rein in program spending. Waxman also sought > to lay
> to rest allegations that he wanted to replace the current healthcare > system
> with socialized medicine. "That is definitely not something I want > to do,"
> he told the AMA gathering. He said he did back the creation of the > public
> plan advocated by President Obama to provide coverage to the > uninsured, but
> Waxman said he did not want to put in place a plan that crowded out > other
> options. He said he was convinced that there must be a significant > role for
> private insurance. Waxman reiterated that his goal was to have the > reform
> bill reported out of his committee before the August recess.
>
>
> http://www.nationaljournal.com/congressdai...090310_8462.php
>
> -----
> HILL BRIEFS: COCHRAN AIDE PLEADS GUILTY ON ABRAMOFF CHARGE
>
> Ethics. Ann Copland, a longtime former aide for Senate Appropriations
> ranking member Thad Cochran, has pleaded guilty today to swapping
> legislative favors for event tickets and other gifts from disgraced
> lobbyist Jack Abramoff's firm, the Associated Press reported. > Copland wiped
> tears from her eyes as she admitted taking the gifts in exchange for
> helping one of Abramoff's top clients, the Mississippi Band of Choctaw
> Indians. A series of e-mails Copland sent to Abramoff's firm show > she was
> particularly demanding in what she wanted from the lobbyist. At one > point
> she sent a long list of ticket requests that included several > concerts,
> hockey, ice skating and the circus. At other times she sent e-mails > from
> inside the firm's luxury box seats complaining about the food and > drinks.
>
>
> http://www.nationaljournal.com/congressdai...090310_6572.php
>
> -----
> POLITICAL ROUNDUP: HOUSE GOP SETS UP MENTORING PROGRAM FOR NEW > CANDIDATES
>
> National. Rep. Kevin McCarthy, R-Calif., who oversees recruitment > for the
> National Republican Congressional Committee, told the House Republican
> Conference this morning that the Young Guns will take over > recruitment and
> install a benchmark process for new candidates to help in raising > money.
> Similar to the Democratic Congressional Campaign Committee's Red to > Blue
> program, the program pairs each new candidate with a mentor member of
> Congress. Like Red to Blue, candidates labeled "Young Guns" will > receive
> the most support from the NRCC, followed by "Contenders" and then > those "On
> the Radar."
>
>
> http://www.nationaljournal.com/congressdai...090310_8210.php
>
> -----
> POLITICAL ROUNDUP: DODD IN DEAD HEAT WITH SIMMONS, POLL FINDS
>
> Connecticut. Sen. Christopher Dodd, D-Conn., faces a competitive
> re-election race, according to a Quinnipiac University poll released > today.
> In hypothetical match-ups, former Rep. Rob Simmons, a Republican, > takes 43
> percent of the vote to Dodd's 42 percent; Dodd leads GOP state Sen. > Sam
> Caligiuri 47-34 percent and holds a 46-34 percent advantage over > CNBC-TV
> host Larry Kudlow, a Republican. "These numbers have to worry Sen.
> Christopher Dodd. Former Congressman Simmons is not well known > outside his
> district, yet he is running neck and neck with Dodd at this point," > said
> Douglas Schwartz, the poll's director. While Simmons has not made a
> decision on running, he told the Connecticut Post today that did not > see
> anything that would prevent him from challenging Dodd. He said he > plans to
> make a decision by Sunday. He welcomed the poll's results. "The > Quinnipiac
> Poll, which is very impartial and independent and reliable, tells me > there
> is support for me as a candidate and I should be encouraged to > declare my
> candidacy sometime soon," Simmons said. The poll of 1,238 registered > voters
> was conducted from last Tuesday through Sunday and has a 2.8-point > error
> margin.
>
>
> http://www.nationaljournal.com/congressdai...090310_2779.php
>
> -----
> POLITICAL ROUNDUP: FRANKEN VISITS SENATE DEM LUNCHEON TO TALK APPEAL
>
> Minnesota. Democratic nominee Al Franken stopped in briefly today at > the
> start of the Senate Democrats' weekly policy luncheon to give a > "good and
> optimistic" report about his legal battle to defeat former GOP Sen. > Norm
> Coleman, said Sen. Charles Schumer, D-N.Y. "We see the light at the > end of
> the tunnel," Schumer said shortly after Franken left the lunch. The > contest
> between Franken and Coleman is entering its seventh week after a > recount
> showed the Democratic comedian and commentator with a 225-vote lead > over
> Coleman. The two are arguing their case before a three-judge state > panel
> and a decision is widely expected by the end of the month. Either side
> could then appeal to the state Supreme Court. "They've been very fair,
> that's why it's taking a while," Schumer said. Schumer declined to
> speculate on whether Democrats would make a move to seat Franken.
>
>
> http://www.nationaljournal.com/congressdai...090310_9470.php
>
> -----
> POLITICAL ROUNDUP: SHULER PASSES ON SENATE BID
>
> North Carolina. Democratic Rep. Heath Shuler said Monday he will not
> challenge Republican Sen. Richard Burr in 2010, the Associated Press
> reported. Shuler said he was flattered so many people asked him to > run.
> "However, with our nation facing the most difficult economic times in
> generations, I feel my efforts are better utilized focusing on > solutions to
> these challenges rather than campaigning across the state," Shuler > said in
> a statement. North Carolina Attorney General Roy Cooper, a Democrat, > is
> viewed as a possible challenger for Burr.
>
>
> http://www.nationaljournal.com/congressdai...090310_8294.php
>
> -----
> POLITICAL ROUNDUP: CONSERVATIVE ACTIVIST TO CHALLENGE SPECTER
>
> Pennsylvania. A conservative activist who ran for governor three > times in
> the 1990s says she will challenge Sen. Arlen Specter, R-Pa., as a
> Republican, the Associated Press reported. Peg Luksik said today she > is not
> deterred by the possible candidacy of former GOP Rep. Patrick Toomey.
> Luksik unsuccessfully sought the GOP nomination for governor in 1990 > and
> came in third place running for governor under the Constitutional > Party
> banner in 1994 and 1998. Luksik says Toomey told her last month that > he
> would not make another run against Specter. She says it is up to > Toomey to
> decide whether he wants to risk dividing the party's conservative > wing and
> allowing Specter to win a sixth term.
>
>
> http://www.nationaljournal.com/congressdai...090310_2146.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "I have one question, and the answer is 'yes.'"
>
> -- Sen. Pat Roberts, R-Kan., questioning Finance Committee witness OMB
> Director Orszag today on health care.
>
>
> http://www.nationaljournal.com/congressdai...090310_3954.php
>
> -----

[Snuffysmith]

> CongressDaily AM for Wednesday, March 11, 2009
>
> --------------------
> CONTENTS
>
> APPROPRIATIONS: SENATE BELATEDLY WRAPS UP FY09 PROCESS
> By Humberto Sanchez and Dan Friedman
>
>
> Almost six months after the beginning of the fiscal year, the Senate
> Tuesday drew a line under the FY09 appropriations process after they
> approved a $410 billion omnibus appropriations bill, sending it to
> President Obama for his signature.
>
> The Senate approved the bill on a voice vote after voting 62-35 to > cut off
> debate. Senate action on the package came after Majority Leader Reid
> postponed a scheduled vote Thursday after realizing he did not have > the 60
> votes needed to invoke cloture. Three Democrats -- Sens. Claire > McCaskill
> of Missouri, Russell Feingold of Wisconsin and Evan Bayh of Indiana --
> voted against cloture. Eight Republicans voted to cut off debate:
> Appropriations ranking member Thad Cochran and Sen. Roger Wicker, > both of
> Mississippi, and Sens. Christopher (Kit) Bond of Missouri, Lisa > Murkowski
> of Alaska, Lamar Alexander of Tennessee, Richard Shelby of Alabama, > Arlen
> Specter of Pennsylvania and Olympia Snowe of Maine. Of that group, > all but
> Wicker and Snowe are appropriators.
>
> Senate passage also prevented Congress from having to pass another
> continuing resolution. The current CR, which is funding at FY08 levels
> programs covered by the nine FY09 spending bills in the omnibus, > expires at
> midnight tonight.
>
> Three of the appropriations bills -- Defense, Military Construction-> VA and
> Homeland Security -- were included with the CR Congress passed in
> September. The House passed the package last month.
>
> The omnibus fight was tougher than expected for Democrats, Reid
> acknowledged today. "It's been surprising," he said.
>
> The struggle indicates Democrats face a tough fight passing Obama's > FY10
> budget, a fact indicated by both parties' decision to trot out budget
> talking points before completing votes on the omnibus.
>
> At a briefing Tuesday, Minority Leader McConnell and Budget ranking > member
> Judd Gregg said several times the budget "spends too much, taxes too > much
> and borrows too much." Democrats, meanwhile, stepped up accusations > of GOP
> obstructionism. "Saying 'no' to everything is not a way to move this
> country forward," Reid said.
>
> The Democratic National Committee offered a similar take, citing "50 > days
> of GOP obstructionism" since Obama took office. "Republicans in > Washington
> have chosen to follow Rush Limbaugh's obstructionist politics every > step of
> the way," the DNC said in a release.
>
> Senate Democratic leaders Tuesday remained focused on repelling > amendments
> to the omnibus, which would have required the House to vote on the > bill
> again before the president could sign it.
>
> The Senate defeated six amendments, including a bid from Sen. David
> Vitter, R-La., to require Congress to vote on cost-of-living pay > increases,
> which occur automatically. The Senate voted 52-45 to table the > amendment.
>
> Prior to that vote, Reid sought to pass, by unanimous consent, a > similar
> bill as stand-alone legislation.
>
> "By passing this legislation as stand-alone, it can become law without
> threatening completion of this appropriations bill," Reid said.
>
> But Vitter objected and argued that Reid's bill would not likely be
> considered in the House and was just a way to provide political > cover for
> senators to oppose Vitter's amendment.
>
> "The best way to get it into law is to put it in a must-pass bill," he
> said.
>
> The Senate also batted down, 50-47, an amendment from Sen. John Thune,
> R-S.D., to prevent the FCC from using omnibus funds to reinstate the
> Fairness Doctrine, which would force broadcasters to give varied > political
> views equal time.
>
> Sen. Jeff Sessions, R-Ala., offered an amendment to extend > authorization
> for the E-Verify program for five years, which was tabled, 50-47. The
> omnibus extends authorization through the end of FY09 for the program,
> which allows employers to check the citizenship status of employees.
>
> An amendment from Sen. John Ensign, R-Nev., to strike language > prohibiting
> the use of omnibus funds for the District of Columbia's school voucher
> program before it is reauthorized, which Republicans claim would > kill the
> program, was also rejected, 58-39.
>
> The Senate also defeated two amendments by Sen. John Cornyn, R-Texas,
> including a proposal to prohibit state attorneys general from > entering into
> contingency fee agreements with experts or outside counsel. The Senate
> rejected the amendment 64-32. The other Cornyn amendment, which failed
> 59-38, would have prohibited omnibus funds from being used to pay > for the
> portion of a Jan. 30 executive order relaxing regulations requiring > federal
> contractors to post signs that non-union workers in union shops can > seek a
> refund of union dues used for political activities.
>
> Sen. Jim Bunning, R-Ky., withdrew his amendment to require the > secretary
> of state to issue a report on investments by foreign companies in the
> energy sector of Iran.
>
> Passage of the bill came after Senate Democratic leaders secured the
> support of Sens. Robert Menendez, D-N.J., and Bill Nelson, D-Fla., > who had
> both backed away from voting for the package due to language that > would
> loosen restrictions on travel to Cuba. The senators got behind the > omnibus
> after being assured by Treasury Secretary Geithner that the agency > would do
> its best to ensure the provisions would not benefit the regime of > Raul and
> Fidel Castro.
>
> "I would have preferred that the [Cuba] provisions not be in this > bill at
> all, but the assurances that I have received from Secretary Geithner > have
> allayed my most significant concerns and I will vote in favor of the
> omnibus appropriations bill," Menendez said.
>
> Nelson also agreed that the assurances were enough to allow him to > support
> "badly needed operational funding for the U.S. government and so > many other
> important initiatives."
>
>
> http://www.nationaljournal.com/congressdai...090311_3310.php
>
> -----
> TRADE: LAWMAKERS MIGHT LOOK FOR OPENINGS FOR GOODS FROM UNCONVENTIONAL
> PLACES
> By Peter Cohn
>
>
> Congress may soon move to eliminate tariffs on goods from war-ravaged
> regions of Pakistan, Afghanistan and Georgia, and could eventually > consider
> easing trade ties with Russia and Kazakhstan, according to key > Democrats.
>
> At a panel organizational meeting Tuesday, House Ways and Means Trade
> Subcommittee Chairman Sander Levin, D-Mich., said his aim was to > "try to
> avoid the polarization that has gripped the nation for the last > decade,"
> noting an "easy tendency to look at trade policies as an either-or
> proposition."
>
> One proposal that blurs partisan lines is a bill from Rep. Chris Van
> Hollen, D-Md., to provide duty-free access for goods produced in
> "Reconstruction Opportunity Zones," encompassing Afghanistan and > border
> regions of Pakistan.
>
> The measure is co-sponsored by Republicans, including Intelligence > ranking
> member Pete Hoekstra, and "the Obama team has pretty much embraced > it," Van
> Hollen said. "We see it as just as much a national security bill as > a trade
> bill."
>
> Similar legislation has been introduced in the Senate by Sens. Maria
> Cantwell, D-Wash., and Orrin Hatch, R-Utah. It would provide 15 > years of
> duty-free access for goods produced in "ROZs," designed to bolster the
> local economy and counteract terrorism.
>
> The measure was a priority of the Bush administration, but it ran > out of
> time in the 110th Congress, particularly after lengthy negotiations > with
> the domestic textile and apparel industry to exempt sensitive > products such
> as knit fabric, cotton yarn, shirts, socks and underwear.
>
> One domestic group, the National Council of Textile Organizations, > will
> not oppose the bill given its language carving out sensitive > products, NCTO
> President Cass Johnson said.
>
> But the American Manufacturing Trade Action Coalition is not > completely
> sold. AMTAC spokesman Lloyd Wood said the textile and apparel > exclusions
> were welcome, but prospects for enforcing the measure were murky.
>
> "There are two problems here. One potentially is the rules of origin > being
> followed. And two, things like misclassification, where you claim a > product
> is bathrobes when in reality it's cotton trousers. Enforcement is > going to
> be very difficult," Wood said. "There's more potential for abuse in > the
> rules of origin in Pakistan, where it's easier to manufacture products
> outside the ROZ, or even in other countries, including China."
>
> Afghanistan exports a relatively small amount of textile and apparel
> products to the United States, $3.9 million worth in 2008, according > to the
> Commerce Department. Pakistan is the 7th-largest exporter to the > United
> States, sending $3.1 billion last year.
>
> A spokeswoman for Rep. Bob Etheridge, D-N.C., who represents textile
> interests, said he would be closely examining the bill to ensure it > does
> not negatively affect North Carolina workers. Levin also said further
> examination was necessary. "This is a perfect example that trade > isn't a
> simple issue," he said. "Few trade proposals are win-win. I don't > like that
> word."
>
> The House may move a bill to extend trade preferences to Georgia, > which is
> recovering from its war with Russia last year. At the same time, > Russia is
> still in negotiations to join the World Trade Organization, which > would
> require Congress to vote to establish permanent normal trade > relations with
> Russia.
>
> Rep. Richard Neal, D-Mass., suggested taking up PNTR for Russia might
> "give us a little bit of additional leverage" with that country. > Levin said
> the Obama administration "has signaled they want to try to review our
> relationship with Russia," which "could be a controversial exercise."
>
> Levin also said Congress may consider PNTR for Kazakhstan, a former > Soviet
> Republic subject to similar Cold War-era restrictions facing Russia. > That
> country is making a bid to join the WTO.
>
> Congress will also have to deal with existing preferences programs > that
> expire Dec. 31. That includes the 132 country-strong Generalized > System of
> Preferences, which provides duty-free access for thousands of > products.
>
> Some of the biggest beneficiaries are countries that have run afoul of
> domestic industry interests, however, such as Thailand, India and > Brazil.
> Similar problems exist with Vietnam's desire to be added to the > program as
> a beneficiary.
>
> There is also the Andean trade preferences program, which also expires
> Dec. 31. The Bush administration suspended Bolivia's eligibility > last year
> after it deemed that country uncooperative in counter-narcotics.
>
> Obama could decide to reinstate Bolivia, but that country's > prospects were
> hurt by its expulsion of a U.S. diplomat Monday. There is also > concern with
> Ecuador's treatment of U.S. companies operating there, expressed in > recent
> days by Chevron Corp. and the U.S. Chamber of Commerce.
>
> Another wild card is the Colombia Free Trade Agreement, which has
> implications for that nation's inclusion in the Andean program. > Republicans
> and some Democrats have argued that it makes little sense to keep > allowing
> Colombian goods into the United States duty-free when passing the
> reciprocal trade pact would eliminate average tariffs on U.S. goods > of 12.5
> percent. The United States exported $11.4 billion worth of goods to
> Colombia in 2008.
>
>
> http://www.nationaljournal.com/congressdai...090311_6161.php
>
> -----
> LABOR: MODERATE DEMOCRATS START HEARING FROM INTERESTS BACK HOME
> By Kasie Hunt
>
>
> Moderate Senate Democrats will be getting an earful from business and
> labor groups in their home states about the Employee Free Choice Act > when
> they head home for the spring recess next month.
>
> Sen. Mark Pryor, D-Ark., said he doesn't spend much time listening to
> national organizations lobbying on card check, but pressure from > home was
> intense. "I've heard from a lot of business people around my state," > he
> said Tuesday.
>
> Wal-Mart is one of the largest employers in Arkansas -- and one of the
> large retail companies that have the most to lose if the legislation
> becomes law and companies lose the ability to demand a secret-ballot
> election before workers can form a union. "They're concerned," Pryor > said.
> "They want us to vote 'no.' "
>
> "We remain opposed to card check because it would effectively > eliminate
> freedom of choice and the right to a secret-ballot election," said > Wal-Mart
> spokeswoman E.R. Anderson. "Our employees should have the right to > make a
> private and informed decision regarding union representation that is > free
> of intimidation and coercion."
>
> Pryor would not say he opposes the bill outright but said > circumstances
> have changed since he supported the measure in 2007. "The economy is > in a
> whole different situation right now," he said.
>
> He said he could look home to find possibilities for compromise, too,
> despite claims that each side's position is set in stone. "There's a > range
> of reasonableness from the business community" in Arkansas, Pryor > said.
>
> Democrats introduced the measure in the House and Senate Tuesday,
> escalating the war of words and sparking speculation about whether > there
> are enough Senate Democrats to overcome a filibuster and, if not, > how the
> bill will change.
>
> "There are some legitimate concerns that the unions have, and now > might be
> a good time to address some of those questions," Pryor said.
>
> Sen. Mark Warner, D-Va., another moderate who will be heavily > lobbied by
> business and labor interests, said he would wait to see what came > out of
> the Senate Health, Education, Labor and Pensions Committee before he > made
> any decisions. "We're just starting the legislative process," Warner > said.
> "We'll just have to see how it turns out."
>
> Pryor said changing some of the procedures that govern the National > Labor
> Relations Board to help unions was a possibility. "That system is > tilted a
> little bit toward management right now," he said.
>
> Senate Republican Policy Committee Chairman John Ensign of Nevada > was less
> accommodating. "I am appalled by the Democrats' decision to > introduce this
> bill. I will not rest until this bill is dead," he said.
>
> Majority Leader Reid said the Senate might consider the bill on the > floor
> before the August recess and said his party could overcome a > Republican
> filibuster. Reid made a clear distinction between voting for cloture > and
> voting to pass the bill. "Getting 60 on the procedural aspect of it is
> certainly doable," he said Tuesday.
>
> That tactic has set off alarms in the business community. Voting for
> cloture "is the same as supporting the bill, because EFCA lives or > dies on
> the cloture vote," said Tim Miller, a spokesman for the pro-business > Center
> for Union Facts.
>
>
> http://www.nationaljournal.com/congressdai...090311_4419.php
>
> -----
> HOMELAND SECURITY: BORDER AGENCY DRAWS FIRE FOR WEAPONS TRAFFIC TO > MEXICO
> By Chris Strohm
>
>
> For years, the Homeland Security Department has been criticized for > not
> doing enough to prevent illegal immigrants and drugs from coming > into the
> country across the southern border. Now the department is under > heavy fire
> for not stopping the flow of illegal weapons from the United States to
> Mexico.
>
> Homeland Security officials told lawmakers Tuesday they are quickly > trying
> to clamp down on arms trafficking into Mexico that is fueling a > bloody war
> between drug cartels and the Mexican government.
>
> According to the Mexican government, about 90 percent of weapons > seized
> from the cartels came illegally from the United States.
>
> One shipment seized in November included 500,000 rounds of > ammunition, 288
> assault rifles, 287 grenades, two grenade launchers and a rocket > launcher
> used to take out tanks, Mexico's ambassador to the United States wrote
> recently in a letter to Sen. Dianne Feinstein, D-Calif.
>
> U.S. Customs and Border Protection is ramping up its ability to > inspect
> vehicles traveling through checkpoints into Mexico, Jayson Ahern, the
> agency's acting commissioner, told the House Homeland Security
> Appropriations Subcommittee at a hearing Tuesday.
>
> The effort includes using nonintrusive inspection equipment and dogs > to
> find weapons, Ahern said. He added that the department's FY10 budget
> request in April will include initiatives to inspect southbound > traffic.
>
> But lawmakers expressed frustration over the lack of coordination > among
> U.S. agencies to combat arms smuggling.
>
> House Homeland Security Appropriations Subcommittee Chairman David > Price,
> D-N.C., demanded a detailed report explaining what CBP is doing, and > what
> Immigration and Customs Enforcement is doing, to address the > situation.
>
> Price said he wants the report to include what kinds of weapons are > being
> smuggled from the United States into Mexico.
>
> Other lawmakers said the Bureau of Alcohol, Tobacco, Firearms and
> Explosives, an arm of the Justice Department, lacks enough resources > to
> inspect firearm dealers in the United States.
>
> Ahern said stopping illegal arms smuggling depends on assistance > from the
> Mexican government, especially through inspections at Mexico's border
> checkpoints.
>
> He said after the hearing that CBP is examining what it needs in > terms of
> checkpoint improvements and technology to sustain inspection efforts > of
> southbound traffic over time. He said everything is under > consideration,
> from scanners to personnel.
>
> Feinstein and Senate Majority Whip Durbin want the Senate to ratify > the
> Inter-American Convention against the Illicit Manufacturing of and
> Trafficking in Firearms, Ammunition, Explosives, and Other Related
> Materials.
>
> To date, 29 countries have ratified the convention, including Mexico > --
> but not the United States.
>
> Feinstein and Durbin wrote to Senate Foreign Relations Chairman John > Kerry
> and ranking member Richard Lugar asking them to consider the > convention and
> report it to the full Senate.
>
> They said ratification would "provide an unequivocal statement that > the
> United States is serious about stemming the tide of weapons flowing to
> Mexico."
>
> Feinstein asked President Obama in a letter Monday to support > ratification
> of the convention.
>
> "The bottom line is this: Mexican drug cartels are spewing death and
> destruction across large swaths of territory along the U.S.-Mexican > border
> which will inevitably spill over to the American side and threaten > American
> lives," Feinstein wrote.
>
> Lawmakers emphasized at Tuesday's hearing they worry that violence > will
> spread in the United States due to Mexico's drug wars.
>
> "This is a war with potentially devastating consequences for the > United
> States," said Homeland Security Appropriations Subcommittee ranking > member
> Harold Rogers, R-Ky.
>
> "Don't tell me there's no spillover possibility in the United > States," he
> added. "And yet I don't believe we're taking it seriously."
>
> Ahern said CBP has developed contingency plans under which it would > flow
> more personnel and technology to the border if needed. He declined to
> provide details on the contingency plans to reporters after the > hearing.
>
>
> http://www.nationaljournal.com/congressdai...090311_4632.php
>
> -----
> JUDICIARY: BUSINESSES LEAD CHARGE AGAINST PATENT CHALLENGE LANGUAGE
> By Andrew Noyes
>
>
> A few little words added to Senate Judiciary Chairman Patrick Leahy's
> patent legislation could spark a controversy among stakeholders if
> testimony before his committee Tuesday is an indicator.
>
> The bill adopts House-passed language from 2007 that extends the > current
> timeline for challenging a granted patent rather than the limitless > window
> approved by Leahy's committee last session. It also adds prior > "public use
> or sale" as a basis for challenging a patent, which some witnesses > believe
> could be a poison pill.
>
> Johnson & Johnson Chief Intellectual Property Counsel Phillip Johnson
> testified on behalf of the Coalition for 21st Century Patent Reform. > He
> said components of Leahy's bill would improve patent quality and > spur R&D
> investment, but added the prior use or sale clause was unwise.
>
> His group, which includes 3M, General Electric, Motorola and others,
> claims patentees would be disadvantaged if proceedings are initiated > years
> after the alleged acts took place without letting the patent holder > engage
> in discovery and cross-examination, which courts can provide. "This
> [change] is neither appropriate nor acceptable." he said.
>
> The Innovation Alliance also opposes the wording. The group represents
> small technology firms and those whose business models rely heavily on
> licensing patents. An alliance spokesman said the proposal would
> "exacerbate confusion and uncertainty as to the statutory standards > that
> govern patentability" while overburdening the Patent and Trademark > Office.
>
> The higher education community also finds the language problematic,
> Association of American Universities Executive Vice President John > Vaughn
> said last week.
>
> But the ability to base a re-examination request on evidence of prior
> public use or sale is essential in order to make the new procedure > relevant
> to the technology sector -- a key area where questionable patents > have been
> granted, Micron Technology CEO Steve Appleton told the committee. His
> company, along with Apple, Google, Microsoft, Time Warner and others,
> belongs to the Coalition for Patent Fairness, which has championed > Leahy's
> legislation in its various forms for several years.
>
> Those most closely aligned with Leahy's thinking believe the wording
> offers a more efficient challenge to patents that should have been > rejected
> by the PTO the first time. Anticipating the potential spat, a > Republican
> Senate aide has asked those stakeholders who vehemently support or > oppose
> the proposal to engage in informal discussions on how a compromise > might be
> reached, according to an aide.
>
>
> http://www.nationaljournal.com/congressdai...090311_3358.php
>
> -----
> TECHNOLOGY: ADMINISTRATION MIGHT MOVE INTO NEW CYBERSECURITY ROLE
> By Andrew Noyes
>
>
> The Obama administration's 60-day examination of federal cybersecurity
> should result in a mandate for a national strategy for safeguarding
> cyberspace and the commitment of executive-branch involvement, House
> Homeland Security Emerging Threats Subcommittee Chairwoman Yvette > Clarke,
> D-N.Y., said at a Tuesday hearing intended to inform the review.
>
> The Bush administration drafted a high-level cyber strategy in 2002, > but
> it stopped short of requiring security changes, Clarke said. It > initiated a
> largely classified multibillion-dollar program in 2008 to reduce the
> connections from federal agencies to external computer networks and > get
> real-time awareness of potential threats to government systems. NSC > Senior
> Director Melissa Hathaway, who is leading Obama's review, was on > former
> President George W. Bush's cybersecurity team as well.
>
> A lack of leadership "has cost our country dearly," Clarke said, and
> Hathaway's audit must clearly delineate roles and responsibilities > of each
> agency with a stake in cybersecurity. It should describe how the White
> House will coordinate policies and budgets for each department, she > said.
> To accomplish that, Clarke called for the appointment of an > assistant to
> the president for cyberspace security -- a key recommendation in a > report
> from a Center for Strategic and International Studies task force > last year.
>
> Emerging Threats Subcommittee ranking member Dan Lungren, R-Calif., > agreed
> "much, much more work needs to be done" and any strategy should > involve the
> private sector, which designs, deploys and maintains much of the > nation's
> infrastructure.
>
> A renewed focus on cybersecurity by the subcommittee, which plans to > hold
> two more hearings on the topic this month, is timely given Friday's
> resignation of Rod Beckstrom, who ran the National Cybersecurity > Center for
> less than a year, Homeland Security Chairman Bennie Thompson said. > "Mr.
> Beckstrom did not have experience working miracles," Thompson said > of the
> former Silicon Valley entrepreneur, who was in the audience. > "Without clear
> authority or budget, he was placed in a no-win situation."
>
> Lawmakers' frustration was echoed by witnesses. Amit Yoran, who > directed
> the Homeland Security Department's National Cybersecurity Division > in the
> Bush administration, said federal cybersecurity would be in grave > peril if
> the effort is dominated by the National Security Agency. He said DHS > is a
> suitable hub for coordinating cyber efforts. But Jim Lewis, who > spearheaded
> the CSIS report, said that function should reside at the White House.
>
>
> http://www.nationaljournal.com/congressdai...090311_7652.php
>
> -----
> ENVIRONMENT: DEMS RESISTANT TO USING RECONCILIATION FOR CLIMATE BILL
> By Darren Goode
>
>
> Senate Democratic leaders might face healthy opposition within their > party
> if they decide to use the budget reconciliation process to move > climate
> change legislation.
>
> Several Democrats Tuesday echoed many Republicans in citing concern > that
> using reconciliation would shortchange the legislative process and
> bipartisan comity. "Reconciliation tends to be partisan," Senate > Finance
> Chairman Max Baucus said. "It's not a good idea."
>
> One clear advantage of doing a climate change bill through > reconciliation
> is avoiding the need to overcome a filibuster and its 60-vote > threshold,
> which would likely be needed if it were brought up otherwise. But Sen.
> Byron Dorgan, D-N.D., is not convinced it is worth it. "I don't > believe
> that's the way we ought to do climate change legislation," Dorgan > said.
> "It's going to be difficult, controversial. It's going to take some > time,
> but I think it ought to be done under regular order."
>
> It is not clear whether Democratic leaders -- who are contemplating > how to
> move a bill mandating a market-based cap-and-trade plan for > greenhouse gas
> emissions -- face too much opposition in their party to do it through
> reconciliation.
>
> "I'd be surprised if there wasn't enough [opposition] to make it > happen a
> different way, if it's going to happen at all," Sen. Ben Nelson, D-> Neb.,
> said. Nelson is one of 15 Senate Democrats who sent a letter to party
> leaders last year citing the need to "ensure that consumers and > workers in
> all regions of the U.S. are protected from undue hardship" from such a
> bill.
>
> Nelson said it is possible these senators will revolt if > reconciliation is
> used. "I don't think we have any strategy at this point but that > certainly
> is one possibility," he said.
>
> One of those 15 -- Sen. Sherrod Brown of Ohio -- said he does not much
> care how a climate change bill is moved as long as the substantive > issues
> are worked out.
>
> That would include the possibility that Majority Leader Reid echoes > the
> strategy of House Democratic leaders and combines climate and energy > bills,
> which Dorgan and Energy and Natural Resources Chairman Jeff Bingaman > would
> rather not do. "The bigger and more complex any legislation gets, > the more
> difficult it is to move ahead with it," Bingaman said.
>
> GOP critics said they hope Democrats revolt. "It would undermine the
> process where public policy of that significance should be open on the
> floor for amendments and subject to significant airing," Budget > ranking
> member Judd Gregg said.
>
> But there are obvious advantages for Democrats. "Well, you only need > 51
> votes," Environment and Public Works Chairwoman Barbara Boxer said.
>
> It can also be used to combine the input of multiple committees.
>
> "It's not by its nature an attempt by one party to ram something > through
> on a party-line vote," said Jim Horney, a former CBO and Senate Budget
> Committee Democratic aide, who heads the Center for Budget and Policy
> Priorities. "But that's how many Republicans view it this year."
>
> There is little public advantage for Democrats to favor a process > removing
> the minority party's main procedural tactic, leading some to wonder > whether
> they might only use it as a bluff.
>
> There is also the potential that a climate bill might violate the Byrd
> rule, which forbids nongermane language in a reconciliation bill. > "It seems
> entirely likely a number of things" in a climate bill would be > subject to
> the Byrd rule, which requires 60 votes to waive, Horney said.
>
> Democrats could avoid it, though, if there is a link between revenue
> generated and deficit reduction or if it concerns revenues for already
> authorized programs.
>
> Sen. Debbie Stabenow, D-Mich., said reconciliation "brings a lot of
> difficulties with it," but said the idea is being discussed because, > while
> the Byrd rule makes it more challenging, avoiding filibusters helps. > "It's
> complicated," she said. She and the other Gang of 15 senators have not
> begun writing elements of a partial substitute cap-and-trade bill.
>
>
> http://www.nationaljournal.com/congressdai...090311_2397.php
>
> -----
> BUDGET: ORSZAG PUSHES RECONCILIATION AS OPTION FOR UPCOMING FIGHT
> By David Hess
>
>
> OMB Director Orszag told the Senate Budget Committee Tuesday the
> administration might push Congress to use the filibuster-proof
> reconciliation procedure to shepherd President Obama's FY10 budget
> proposal, due to its large number of contentious proposals.
>
> Despite warnings by Budget ranking member Judd Gregg that such tactics
> would guarantee no Republican support for the plan, Orszag said, "We'd
> prefer not to start there ... but we're not taking anything off the > table."
>
> Gregg said it would "create real consternation [and] be regarded as > an act
> of violence" against the minority. "There would be no point > [cooperating]
> in the exercise if we are going to get blindsided by reconciliation."
>
> In some respects, the clash over use of reconciliation in pushing > through
> the more controversial items -- such as a cap-and-trade program to > limit
> greenhouse gas emissions -- could be moot, since most Republicans > and a few
> Democrats have indicated their opposition.
>
> Those oft-cited objections were raised anew at Tuesday's hearing, as
> Republicans assailed several provisions they said would lead to big
> increases in spending, including the enlargement of the federal role > in
> health care and education, and a substantial increase in deficits > and the
> national debt.
>
>
> http://www.nationaljournal.com/congressdai...090311_4870.php
>
> -----
> SENATE: DESPITE THREAT, APPOINTED SENATORS HOLD FIRM AGAINST VITTER
> By Dan Friedman, with Erin McPike contributing
>
>
> Cue the attack ads. Fourteen Democrats facing re-election next year,
> including appointed Sens. Michael Bennet of Colorado, Kirsten > Gillibrand of
> New York and Roland Burris of Illinois, voted Tuesday night to table > an
> amendment to abolish automatic cost-of-living increases for lawmakers.
>
> Sen. David Vitter, R-La., offered that amendment to require a vote > before
> any pay raise could take effect that, had it passed, would have been
> included in the $410 billion omnibus spending bill the Senate > subsequently
> sent to the White House for President Obama's signature.
>
> Vitter's insistence on a vote on his amendment helped force Senate
> Majority Leader Reid to postpone final action on the omnibus until > this
> week. It was the most politically painful of several GOP amendments > Reid
> allowed in exchange for GOP votes for cloture on the bill.
>
> Democrats did what they could to give senators cover on the vote. It > came
> on a motion to table the amendment, giving senators the protection > of an
> additional layer of procedural opaqueness.
>
> Reid attempted to pass by unanimous consent a stand-alone bill that > would
> have eliminated the automatic pay raise provisions, although Vitter > stopped
> that by objecting to its consideration.
>
> "Sen. Vitter just confirmed what we already knew: that he is > interested
> only in scoring political points," Reid said, after Vitter objected to
> consideration of his alternative.
>
> Additionally, senators noted the omnibus itself already prevents > lawmakers
> from receiving a pay increase in 2010.
>
> But few in either party doubted the vote will be used in campaigns to
> accuse incumbents of voting to give themselves a pay raise during a
> recession.
>
> "It's always possible to do a 30-second spot," noted Democratic > Senatorial
> Campaign Committee Chairman Robert Menendez of New Jersey.
>
> A National Republican Senatorial Committee spokesman said in a > statement
> that "Democrats effectively used the pay raise issue against several
> Republican candidates in past cycles, notably against Senator [Rick]
> Santorum [R-Pa.], so I don't think they should be at all surprised > if this
> emerges as an issue in some of their own campaigns, particularly at > a time
> when working families across the country are struggling to make ends > meet."
>
> Former NRSC Chairman John Ensign of Nevada said while it is hard to
> predict which votes senators will be attacked for, "I wouldn't want > to vote
> against this one."
>
> Four Democrats who are up for re-election next year -- Sens. Blanche
> Lincoln of Arkansas, Russell Feingold of Wisconsin, Evan Bayh of > Indiana
> and Christopher Dodd of Connecticut -- voted against tabling Vitter's
> amendment.
>
> "It is wrong for members of Congress to accept a cost-of-living > raise at a
> time when families and small businesses across the country are > struggling,"
> Lincoln said in a statement.
>
> Gillibrand declined to comment on her vote, suggesting that a reporter
> contact her office to set up an interview. Four more Democrats -- > Sens.
> Claire McCaskill of Missouri, Amy Klobuchar of Minnesota, Jon Tester > of
> Montana and Ben Nelson of Nebraska -- also voted to keep Vitter's > amendment
> alive.
>
> Sen. Mark Begich, D-Alaska, will not face the voters until 2014 but
> expects to be attacked for his vote against Vitter. "This is all about
> developing campaign commercials," he said.
>
> Democrats got help from several Republicans in defeating Vitter's
> amendment. Two of them would have been on the 2010 ballot had they not
> announced their retirements -- Sens. Mel Martinez of Florida and > Judd Gregg
> of New Hampshire.
>
>
> http://www.nationaljournal.com/congressdai...090311_7844.php
>
> -----
> FINANCE: DODD SECURES SOME REPUBLICAN SUPPORT FOR FDIC BILL
> By Bill Swindell
>
>
> Senate Banking Chairman Christopher Dodd has some key GOP support on > his
> bill that would expand the FDIC's borrowing authority up to $500 > billion
> for a limited time in an effort to give the agency resources to > address the
> banking sector's problems.
>
> Dodd has attracted as co-sponsors committee Republican Sens. Mike > Crapo of
> Idaho and Bob Corker of Tennessee. Banking ranking member Richard > Shelby of
> Alabama has not signed onto the bill, with an aide saying Tuesday > that the
> measure needs to be first examined in a committee hearing.
>
> Dodd unveiled the bill last week after receiving a letter from FDIC
> Chairwoman Sheila Bair asking for an increase. She noted that her > agency
> has not had an increase in its $30 billion cap since 1991, though > banking
> assets have tripled since then to $13.6 trillion. The Dodd bill would
> increase it to $100 billion and give the agency the authority to > borrow up
> to $500 billion through the end of 2010.
>
> The House passed legislation last week that would boost the FDIC's
> borrowing authority from the Treasury to $100 billion. It was > combined with
> legislation that would allow bankruptcy judges to restructure home
> mortgages, including reducing the principal.
>
> Corker said he was not concerned that the Dodd effort could be > construed
> as a backdoor effort to bolster funding efforts to banks similar to > the
> Troubled Asset Relief Program. The key difference, Corker noted, is > that
> banks will pay into the agency's insurance fund, not taxpayers.
>
> "This money gets paid back by financial institutions. I don't want the
> FDIC to be timid right now. I want them to feel like they have the
> resources they need if they need to seize a facility, seize a bank > and make
> sure a depositor's deposits are guaranteed. I want them to have the > ability
> to do that," said Corker, who has recently played a more visible > role on
> the panel.
>
> The FDIC recently imposed a special assessment fee on banks because > of its
> small margin of error without a bigger cap. In a March 5 letter to > Dodd,
> Bair said increased borrowing authority would allow the agency to > lower
> such assessments, which have been particularly hard on community > banks. "In
> some cases for some small banks, it's their entire quarterly > earnings,"
> Corker said.
>
> Camden Fine, president of the Independent Community Bankers of > America,
> said scaling back the assessment is a good first step, but the FDIC > should
> consider broadening the base of the fees so its does not > disproportionately
> affect smaller banks.
>
>
> http://www.nationaljournal.com/congressdai...090311_8714.php
>
> -----
> PEOPLE: PEOPLE
> By Gregg Sangillo
>
>
> ON A BUDGET. Joseph Gaeta has been named general counsel at the Senate
> Budget Committee under its chairman, Sen. Kent Conrad, D-N.D. In the
> position, he'll deal with legal and parliamentary issues and help > enforce
> Senate budget rules. Gaeta spent the past four-and-a-half years in the
> Justice Department's Civil Rights Division. He's also been a special
> assistant attorney general in Rhode Island. Gaeta has a master's > degree in
> political theory from the London School of Economics and Political > Science
> and a law degree from Stanford University. Gaeta replaces Lisa > Konwinski,
> who is working for the Obama White House as deputy director of > legislative
> affairs.
>
> CAR TALK. Some people are landing jobs in the beleaguered auto > industry.
> Toyota Motor North America has hired Thomas J. Lehner in its > Washington
> office. In a statement, Toyota's Lehner didn't dance around how > tough times
> are for automakers: "The current economic crisis has severely impacted
> Toyota's operations in the U.S. market, and we are responsible for
> protecting the interests of our employees, customers, dealers and
> suppliers." From 1993 through early 2001, Lehner was chief of staff > for
> former Sen. Charles Robb, D-Va. The graduate of San Francisco State
> University is also a former treasurer of the Democratic Senatorial > Campaign
> Committee. He most recently served as director of public policy at the
> Business Roundtable. Lehner will serve as vice president of > government and
> industry affairs for Toyota.
>
> NEW RESOURCE. Emily Lawrimore, a former White House spokeswoman in the
> Bush administration, has landed as communications director for the > minority
> at the House Natural Resources Committee under its ranking member, > Rep. Doc
> Hastings, R-Wash. Lawrimore was most recently press secretary at the
> Commerce Department. Earlier in her career, she was an aide for Rep. > Joe
> Wilson, R-S.C.
>
>
> http://www.nationaljournal.com/congressdai...090311_4290.php
>
> -----
> WIRED IN WASHINGTON: DEAL HIM IN
> By David Hatch
>
>
> Sen. John (Jay) Rockefeller, D-W.Va., wears a poker face these days. > On
> the surface, there's been little activity stirring with > telecommunications
> and media issues before the Senate Commerce Committee he chairs, but > behind
> closed doors and in hushed conversations around town, there's plenty > of
> legislative shuffling.
>
> Rockefeller has emerged as one of the most influential voices on
> communications policy in Washington. Even President Obama's pick for > FCC
> chairman, Julius Genachowski, can't move into his new digs without the
> approval of the senator's committee. For now, the seasoned lawmaker > and his
> aides are playing it cool and not showing their cards.
>
> But the senator can't completely escape this congressional > oddsmaker. I've
> been reviewing his record, working the angles and gauging the shifting
> political winds to bring you: Beat the House -- The Unofficial and > Wholly
> Unauthorized Guide to Sen. Rockefeller's 2009 Communications Agenda. > Let's
> review his hand:
>
> Aces in the Hole: These cards must be played to meet deadlines or fill
> vacancies.
>
> Broadband Oversight: After fighting to up the stimulus ante to spur
> broadband deployment to mostly rural areas, Rockefeller will use his > panel
> to monitor how the Commerce Department doles out the $4.7 billion > jackpot.
>
> Confirmation Hearings: One or more hearings will be scheduled for at > least
> three (and potentially four) FCC nominees. A source said Rockefeller > also
> is planning hearings on the topics his committee will tackle, but > Senate
> aides, perhaps bluffing, claim few are in the works.
>
> Digital Television: There will be continued oversight of the shift > from
> analog to digital signals culminating June 12. The four-month > postponement
> from February to June came about with the help of Rockefeller, who > engaged
> in a high-stakes gamble with a bill delaying the switch.
>
> Satellite Reauthorization: With a Dec. 31 deadline, legislation
> streamlining copyright licensing for broadcast programming carried on
> satellite television systems is the only major communications bill > that's a
> sure bet to pass this year.
>
> House Edge: The House Energy and Commerce Committee already plans to > open
> the legislative round with bills in these areas.
>
> Mobile Phones: Rockefeller wants to review the results of an > upcoming GAO
> report assessing the wireless industry before plotting his next > move, aides
> insisted recently. But a range of sources confirmed he is quietly > working
> with Sen. Amy Klobuchar, D-Minn., on reintroducing legislation > overhauling
> regulation of the mobile phone sector. The measure would establish > national
> standards for consumer protection, which the industry wants, > balanced with
> regulations carriers oppose. Rockefeller co-sponsored the original > version
> offered by Klobuchar in 2007.
>
> Universal Service: Revamping the $7.1 billion universal service fund
> subsidizing telecom costs in rural and low-income areas is a high > priority
> for Rockefeller, who helped modernize the program and whose state > benefits
> heavily from it. But it's unclear whether he wants Congress to bet > on a
> bill, so he might let the FCC wager on new regulations instead.
>
> Trump Card: Senate Commerce has an opportunity to one-up the House.
>
> Network Neutrality: In the House, Energy and Commerce Communications
> Subcommittee Chairman Rick Boucher, D-Va., wants broadband and content
> providers to agree on preserving an openly accessible Internet, > favoring
> such deals over legislation. But Senate Commerce is moving in the > opposite
> direction as Sens. Byron Dorgan, D-N.D., and Olympia Snowe, R-Maine,
> prepare to reintroduce a net neutrality measure. Rockefeller is on > record
> supporting tough neutrality laws to ensure telecom and cable giants > don't
> act as Internet gatekeepers.
>
> Soft-Play: Rockefeller might go easy on another player.
>
> FCC Overhaul: You're forgiven for assuming Rockefeller would > champion a
> bill to restructure the FCC, since he proposed one in late 2007. Now > that
> his party runs the agency, many experts think he's backing off. Not > so,
> insists a Senate aide, who said the goal remains a priority, but some
> changes can be implemented without a bill.
>
> Wild Card: Anyone's guess as to whether this comes up.
>
> TV Violence: The senator cares deeply about reducing violence on > broadcast
> television, but has run into constitutional hurdles with > legislation. The
> outcome of a Supreme Court case involving the scope of the FCC's > authority
> to regulate content might determine his next step. A horrendous > incident --
> such as another school shooting -- might provide momentum for action.
>
> Fold: Democrats will give up some issues in a recession.
>
> Media Ownership: When the Republican-controlled FCC relaxed media
> ownership limits to throw a lifeline to struggling newspapers, > lawmakers on
> both sides of the aisle railed against the plan. Dorgan led the > charge with
> a resolution of disapproval that passed the Senate last May by voice > vote
> with Rockefeller's support. Among the co-sponsors was Sen. John Kerry,
> D-Mass.
>
> But with newspapers now dead or dying, Kerry -- who as chairman of the
> newly created Commerce Communications Subcommittee is in a position > to keep
> the pressure on -- is suddenly sympathetic to their plight. "I will > make it
> a priority to take a hard and close look at the disturbing trend > that is
> the disappearance of journalism," Kerry said last month after the > Rocky
> Mountain News, one of Denver's two major papers, closed.
>
>
> http://www.nationaljournal.com/congressdai...090311_6070.php
>
> -----
> MARKUP REPORTS: FIRST LADY'S FEDERAL STATUS AT ISSUE IN HOUSE PANEL
> By Andy Leonatti
>
>
> The House Oversight and Government Reform Committee approved a bill
> Tuesday to strengthen a 1972 law regulating the more than 1,000 > federal
> advisory committees, sparking a debate over the employment status of > the
> first lady.
>
> The bill, passed on a 16-1 vote, would clarify that appointees to > federal
> advisory committees must be made without regard to political > affiliation
> and require agencies to obtain conflict-of-interest statements from
> committee members, with beefed up disclosure requirements.
>
> Bill sponsor Rep. William Lacy Clay, D-Mo., said the GAO has found > that
> many advisory committee appointments were made "based on ideology > rather
> than on expertise."
>
> The GAO also found that many committee members are improperly > designated
> as members of outside organizations instead of as special government
> employees, who are temporary employees used to consult or provide > expertise
> on certain issues. Special government employees are subject to tougher
> conflict-of-interest rules.
>
> Oversight and Government Reform ranking member Darrell Issa > introduced,
> but then withdrew, an amendment that would have classified the > spouse of a
> sitting president as a nonfederal employee for purposes of the bill.
>
> Issa said a U.S. Court of Appeals ruling in 1993 found that former > first
> lady and current Secretary of State Hillary Rodham Clinton was a > federal
> employee and that allowed her to conduct meetings of a healthcare task
> force with other federal employees in secret.
>
> After the committee's markup of the bill in the 110th Congress, former
> Rep. Tom Davis, R-Va., then the panel's ranking member, wrote that > the bill
> "should be amended to prevent certain high-level advisory committees > from
> evading transparency and accountability by using this presidential > spouse
> loophole."
>
> Clay argued the amendment "pigeonholes [First Lady Michelle Obama] > into
> some clearly defined role," and that President Obama might see the
> amendment as an attack. "Let's not go in that direction," he said.
>
> Other committee Democrats argued that the first lady's status as a > federal
> employee should be taken up in separate legislation. Issa said his
> amendment did not prevent a president from designating a spouse as a
> federal employee in regards to other issues. He also said he had no
> preference for a spouse's status, but was offering the amendment to
> establish rules.
>
> Issa voted against the bill, but said he would work with committee > counsel
> on the amendment before the bill reaches the House floor.
>
>
> http://www.nationaljournal.com/congressdai...090311_2621.php
>
> -----
> POLITICAL ROUNDUP: SCHWARZENEGGER SETS DATE FOR CALIF. SPECIAL > ELECTION
>
> California Republican Gov. Arnold Schwarzenegger announced the special
> election primary for the seat vacated by Rep. Hilda Solis will take > place
> May 19.
>
> If a candidate wins a majority vote in that contest, there will be no
> general election. If not, the top vote-getters from each party would
> qualify for the general election, which would be July 14.
>
>
> http://www.nationaljournal.com/congressdai...090311_1231.php
>
> -----
> POLITICAL ROUNDUP: AIDE TO EX-REP. SIMMONS WEIGHS CHALLENGE TO MURPHY
>
> Justin Bernier, who served as a senior legislative aide to former > Rep. Rob
> Simmons, R-Conn., is contemplating a run against Democratic Rep. Chris
> Murphy for Connecticut's 5th District.
>
> In an interview Tuesday, Bernier said concerns about the faltering > economy
> and Congress' handling of the issue propelled him to consider > running for
> the seat.
>
> Bernier is an officer in the Navy Reserve and served in Afghanistan in
> 2007. Last week, he stepped down as executive director of > Connecticut's
> Office of Military Affairs.
>
>
> http://www.nationaljournal.com/congressdai...090311_7879.php
>
> -----
> POLITICAL ROUNDUP: FRANKEN IS READY TO REST IN MINNESOTA SENATE CASE
>
> Minnesota's Senate saga will take a large step toward conclusion > today,
> when lawyers for Democrat Al Franken plan to call their final > witnesses,
> the Associated Press reported.
>
>
> http://www.nationaljournal.com/congressdai...090311_6531.php
>
> -----
> POLITICAL ROUNDUP: SEN. BUNNING REFUSES TO DIVULGE POLL RESULTS
>
> Sen. Jim Bunning, R-Ky., hurled an expletive during a conference > call with
> reporters Tuesday and declined to release the results of an internal
> political poll, McClatchy Newspapers reported.
>
> Bunning told the reporters the results are "none of your g--d---
> business."
>
> When asked by a reporter if Bunning's choice to keep the survey > numbers
> private implies that he is not satisfied with the results, he > responded:
> "You are going to infer any damn thing you choose, so why should I > try to
> influence it."
>
> Bunning had said he would release the results of the poll conducted in
> late February.
>
>
> http://www.nationaljournal.com/congressdai...090311_7276.php
>
> -----
> POLITICAL ROUNDUP: HORN SAYS SHE LIKELY TO MAKE ANOTHER > CONGRESSIONAL BID
>
> Republican Jennifer Horn says it is highly likely she will make > another
> run for New Hampshire's 2nd District, the Associated Press reported.
>
> Horn lost to Democratic Rep. Paul Hodes 57-41 percent last year.
>
>
>

[Snuffysmith]

> CongressDaily PM for Wednesday, March 11, 2009
>
> --------------------
> CONTENTS
>
> FINANCE: DODD IS OPEN TO MORE FLEXIBILITY ON MARK-TO-MARKET RULES
> By Bill Swindell
>
>
> Senate Banking Chairman Christopher Dodd today said he is open to > giving
> federal regulators additional flexibility to modify an accounting > rule that
> many claim has contributed to the financial crisis by forcing firms to
> write down toxic mortgage assets to historic lows. Critics complain > that
> under existing mark-to-market rules, banks are forced to value > assets at
> current low values, taking billions of dollars in losses, even > though in
> the long term these assets could recover. Dodd spoke favorably about > the
> idea of lifting the rules at certain times of crisis. "You would > have to
> define in some ways what [crisis times] are, so you don't interrupt > the
> mark-to-market functions on a normal basis," Dodd said in remarks at > the
> U.S. Chamber of Commerce. But he cautioned lawmakers to be careful > if they
> weigh in, because authority over accounting standards lies with the
> Financial Accounting Standards Board. "I have been vehemently > opposed to
> Congress getting into the business of accounting standards," Dodd > said.
>
> SEC Chairwoman Mary Schapiro, whose agency oversees FASB, testified > today
> before the House Financial Services Appropriations Subcommittee that > her
> agency has launched a study on the issue and is offering additional
> guidance to firms on how to provide investors with greater > disclosure on
> hard-to-value assets. (See related story, page 3.) At a hearing today,
> Schapiro said the Financial Accounting Standards Board has promised to
> issue mark-to-market accounting guidance in the second quarter for > banks
> struggling to price assets, Reuters reported. Under the financial > rescue
> package passed last year, Congress gave the SEC authority to suspend > an
> accounting rule implemented in 2007 that provided a single, concrete
> definition for fair value. But the SEC has not acted on that option. > The
> House Financial Services Capital Markets Subcommittee will hold a > hearing
> on the issue Thursday. Jamie Dimon, CEO of JPMorgan Chase & Co. also > called
> for modifying the rule today in a speech in front of the Chamber. > "We have
> taken it to a ridiculous point," said Dimon.
>
> Meanwhile, Dodd said he remains unsure about giving the Federal > Reserve
> the power to be the sole risk regulator for the entire financial > system.
> The idea would be to ensure that the failure of one or two firms > does not
> endanger the whole economy, as did Bear Stearns and American > International
> Group. But Dodd was skeptical that Congress could create an entire new
> agency, calling it "a daunting idea." Dodd also refrained from > endorsing
> legislation backed by Majority Whip Durbin and Sen. Charles Schumer,
> D-N.Y., to establish a new Financial Product Safety Commission, > which would
> protect borrowers from deceptive loans just as the Consumer Product > Safety
> Commission protects buyers from faulty toys, household products and > other
> items. But he indicated that he sympathizes with the sponsors' > goals. "No
> one suggests that the buyer is to blame for a toaster that catches > on fire
> or a toy for your child that is contaminated with lead. Should it be > any
> different for the borrower who takes out a mortgage or signs up for a
> credit card?" Dodd asked.
>
>
> http://www.nationaljournal.com/congressdai...090311_1126.php
>
> -----
> TAXES: BAUCUS DRAFT BILL TARGETS MONEY FLOWING INTO TAX HAVENS
> By Peter Cohn
>
>
> Senate Finance Chairman Max Baucus is circulating a draft bill to > crack
> down on offshore tax dodgers by doubling fines and penalties for
> underpayments and providing a paper trail of funds being transferred > to
> overseas accounts so the IRS can spot potential red flags. The 15-page
> draft aims to give the administration more tools to stop tax evasion > at the
> earliest signs, rather than simply reacting once it occurs. It would
> require financial institutions transferring more than $10,000 to an > account
> outside the United States on behalf of an individual or business, > other
> than a publicly traded company, to report to the IRS the name and > address
> of their client as well as the destination and account information > related
> to the offshore account. A Baucus spokeswoman declined to comment on > the
> proposal, which has not been publicly unveiled. The measure would also
> extend the statute of limitations from three to six years for tax > returns
> reporting international transactions to give the IRS more time to > detect
> potential offshore abuses. It would allow the IRS to require U.S.
> individuals to submit reports on their foreign financial accounts > along
> with their tax returns. The bill also would boost penalties for > failure to
> file information about foreign trusts to a minimum of $10,000, up > from 35
> percent of the gross reportable amount, and broaden the definition of
> foreign trust property to include items like real estate, artwork and
> jewelry as well as securities.
>
> The measure is being readied for introduction as the Obama > administration
> and congressional Democrats look for ways to close the "tax gap" > that costs
> the Treasury hundreds of billions dollars annually, and wealthy > individuals
> and companies that shelter money in offshore accounts have become
> particularly attractive targets. Obama consistently raised the issue > on the
> campaign trail, and it has been in the news of late particularly > given the
> massive frauds allegedly perpetrated by financiers Bernard Madoff > and R.
> Allen Stanford, in which offshore tax evasion has reportedly played > a role.
> The Finance Committee has scheduled a hearing Tuesday on overseas tax
> shelter issues. Treasury Secretary Geithner has told lawmakers the
> administration is eager to move forward on a bill to crack down on tax
> haven abuses, but is letting Congress take the lead on drafting
> legislation.
>
> Since Baucus' panel has primary jurisdiction over tax matters, his > bill
> will likely form the basis for the eventual legislation. But other
> Democrats have also gotten out front on the issue. Sen. Carl Levin,
> D-Mich., chairman of the Senate Homeland Security and Governmental > Affairs
> Permanent Subcommittee on Investigations, has held a series of > hearings
> about offshore tax abuses, including the failure of the Swiss > government to
> identify 52,000 U.S. holders of UBS AG bank accounts. Levin and Rep. > Lloyd
> Doggett, D-Texas, have introduced legislation in both chambers to > require
> companies operating in offshore tax haven countries controlled by
> individuals within the United States to pay taxes as a U.S. domestic > firm.
> That bill, seen as more punitive by tax lobbyists, would also boost
> penalties for tax-shelter promoters to 150 percent of their unpaid > taxes
> and to $1 million for individuals that transfer stock option > holdings to
> offshore accounts in violation of U.S. securities law.
>
>
> http://www.nationaljournal.com/congressdai...090311_3572.php
>
> -----
> BUDGET: OBAMA CALLS FOR EARMARK OVERHAUL BUT WILL SIGN OMNIBUS
> By George E. Condon Jr. and Humberto Sanchez
>
>
> President Obama called for fundamental earmark reform today even as he
> prepared to sign an FY09 omnibus spending bill packed with thousands > of
> earmarks the White House did not want. The president was expected to > sign
> that $410 billion spending bill today, away from cameras and > questions.
> Obama offered a mild defense of the bill during brief remarks this > morning
> and rejected Republican calls that he issue his first veto. "I am > signing
> an imperfect omnibus bill because it's necessary for the ongoing > functions
> of government, and we have a lot more work to do. We can't have > Congress
> bogged down at this critical juncture in our economic recovery," he > said.
>
> But Obama made it clear that this bill is an exception as he laid out
> principles for reforming the process. Those principles call for more
> transparency, public acknowledgment of earmarks on the Web sites of
> lawmakers who request them and public hearings. "These principles > begin
> with a simple concept -- earmarks must have a legitimate and worthy > public
> purpose," Obama said. But he also acknowledged that lawmakers have a > right
> to seek funds for "worthy projects that benefit people in their > districts."
> If future legislation includes money for a project that does not > have a
> public purpose, he said, "we will seek to eliminate it, and we will > work
> with Congress to do so." Such earmarks, he said, "have been used as a
> vehicle for waste and fraud and abuse."
>
> Obama's comments came as House Speaker Pelosi and other Democratic > leaders
> announced two new initiatives on earmark transparency. One would > give the
> appropriate executive-branch agency 20 days to review a member-> requested
> project to ensure the earmark is eligible to receive funds and meets > the
> goals established in law. The other would require the executive > branch to
> ensure that any earmark for a for-profit entity be awarded through
> competitive bidding. These two initiatives are part of a raft of
> earmark-related reforms House Democrats issued earlier in the year. > "With
> the inclusion of these new reforms, we will ensure accountability for
> congressional earmarks at every step of the process," Pelosi said in a
> statement.
>
> The omnibus bill funds most government operations through the rest of
> FY09. It includes about 8,600 earmarks totaling $7.7 billion, > according to
> Taxpayers for Common Sense, a watchdog group. The House Appropriations
> Committee minority staff puts the number at about 8,000 earmarks, > with a
> price tag of $5.5 billion. Obama said Congress could avoid many > problems
> with spending-related bills by considering spending bills on time and
> sending them to him "without delay or obstruction, so that we don't > face
> another massive, last-minute omnibus bill like this one."
>
>
> http://www.nationaljournal.com/congressdai...090311_8927.php
>
> -----
> FINANCE: SEC CHIEF: COMMISSION NEEDS MORE MONEY, SKEPTICISM
> By Otto Kreisher
>
>
> The new head of the SEC said today the commission's failure to > regulate
> the rapidly expanding financial markets and understand the risk > involved in
> a host of new investment products contributed to the collapse of the
> economy. SEC Chairwoman Mary Schapiro said that failure was due > partly to
> inadequate staff and technology. But she said SEC officials were > also at
> fault for assuming that self-regulation would work and relying on > honesty.
> "We as regulators lost our skepticism," Schapiro told the House > Financial
> Services Appropriations Subcommittee. In comments later, she also > said the
> Financial Accounting Standards Board has promised to issue mark-to-> market
> accounting guidance in the second quarter for banks struggling to > price
> assets.
>
> The SEC chairwoman said she was determined to restore SEC's role as > the
> protector of the individual investor and to "get back to basics and > rebuild
> our enforcement structure." She listed a number of steps SEC has > already
> taken, including increasing the commission's ability to act quickly on
> reports of fraud and hiring a veteran federal prosecutor, Robert > Khuzami,
> as director of enforcement. But she said SEC needs more staff and to
> overhaul its information technology systems so that regulators can > enforce
> rules and keep pace with the expanding and changing investment > field. A
> priority is improving IT to enhance SEC's ability to process the > flood of
> tips received about possible fraud.
>
> On the issue of funding, Schapiro said the commission was grateful > for the
> $943 million provided by the subcommittee in FY09 appropriations. > But she
> asked for authority to reprogram $17 million in unspent funds to pay > for
> some of the new initiatives. House Financial Services Appropriations
> Chairman Jose Serrano, D-N.Y., noted that under the Bush > administration the
> SEC assured the subcommittee it did not need additional resources, > telling
> Schapiro "it is our intent to make sure you have the resources you > need."
> But House Financial Services Appropriations ranking member Jo Ann > Emerson,
> R-Mo., pointed out that following the collapse of Enron and other > major
> financial institutions, Congress provided the SEC with additional > authority
> and doubled its funding. She said it is "hard to see how the SEC was
> unprepared to deal with" the emerging crisis and the massive Bernard > Madoff
> fraud. She added the panel would want to ensure that "any resources > we give
> you are used efficiently."
>
> Responding to committee members' questions, Schapiro endorsed a > proposal
> to have two major institutions oversee the financial markets. She also
> agreed on the need for a "systemic regulator" governing investment > products
> and financial institutions, as well as a separate body primarily > concerned
> with protecting investors. The latter would be the SEC's role, she > said.
> Schapiro said she is working closely with the SEC's inspector > general on
> his probe into why the commission failed to act on numerous warnings > about
> Madoff's operations. She suggested the SEC might want authority to > reward
> individuals who provide actionable tips on fraud and probably would > need
> additional regulatory authority to close the "gaps" created by new and
> risky forms of investment. The SEC is studying the need for additional
> authority to regulate credit rating agencies, which have been cited as
> contributors to the financial crisis, she added.
>
>
> http://www.nationaljournal.com/congressdai...090311_4396.php
>
> -----
> FINANCE: HOUSE COMMITTEE WANTS TRANSPARENCY ON TARP REPORTING
> By David Hess
>
>
> House members in both parties blistered Treasury's financial bailout > boss
> today for what they claimed is the department's leniency in not > demanding
> stricter accountability from banks that have received billions in > federal
> dollars to rescue them from bankruptcy. In a hearing of the House > Oversight
> and Government Reform Domestic Policy Subcommittee, Neel Kashkari, > head of
> Treasury's Office of Financial Stability, was swarmed by members who > said
> their constituents are up in arms about what they perceive as the > coddling
> of corporations whose reckless behavior triggered the swoon of the > housing
> and financial markets. "Our constituents are demanding to know how
> [Congress and the banks] are spending all this money, and we can't > give
> them an answer," said Rep. Dan. Burton, R-Ind. "People are madder > than hell
> and we don't have the facts to explain what's going on. If you want > support
> for your [recovery plan], you're going to have to give us the facts."
>
> Treasury is providing monthly reports on which of the larger banks are
> receiving federal assistance and how much they are receiving. But > there is
> no breakdown of how the banks are using the money to provide credit to
> small businesses and consumers. The GAO and the Special Inspector > General
> of the Troubled Asset Relief Program told the subcommittee that > Treasury
> and some regulatory agencies are posting a lot of information about > the
> rescue effort online and reporting to Congress. But they also urged
> Congress to make sure that more details are disclosed about how the > money
> is being used. House Oversight and Government Reform Domestic Policy
> Subcommittee Chairman Dennis Kucinich, D-Ohio, and Rep. Darrell Issa,
> R-Calif., ranking member of the full committee, charged that the TARP
> program lacks "transparency and accountability." That has enraged > citizens,
> they said. "That money was provided with virtually no strings > attached,"
> Kucinich said. "Most of the banks didn't even bother to account > separately
> for the federal monies. Treasury doesn't even ask TARP recipients > for a
> detailed accounting of their use of TARP funds."
>
> "We don't know how $300 billion of taxpayer money has changed anyone's
> behavior," Issa said. Kucinich said that "several very large > transactions"
> were conducted by some banks after they got their first tranche from > the
> Treasury. Citigroup, he said, arranged an $8 billion loan for a public
> project in Dubai; Bank of America pumped $7 billion into the China
> Construction Bank Co., and JPMorgan Chase invested $1 billion in > expanding
> operations in India. "How does that help U.S. taxpayers?" Kucinich > asked
> Kashkari. Without addressing those transactions, Kashkari said many > of the
> troubled banks that got federal loans are multinational institutions > that
> routinely make profitable loans abroad. If they make money on such > loans,
> he said, it will strengthen their finances and enable them to pay > off their
> debts to the federal government. "We want these banks to make > money," he
> said, adding that Treasury does not intend to get into the position of
> micromanaging banks.
>
>
> http://www.nationaljournal.com/congressdai...090311_9692.php
>
> -----
> DEFENSE: PANEL CHAIRMAN SAYS RIVAL FIRMS SHOULD SHARE TANKER PACT
> By Megan Scully
>
>
> House Armed Services Air and Land Forces Subcommittee Chairman Neil
> Abercrombie, D-Hawaii, said today that he will push to split the > contract
> for the Air Force's next fleet of aerial refueling tankers between > the two
> defense contracting giants who have been at war over the lucrative > program.
> "I think the most sensible thing to do is to have what is come to be > termed
> as a split buy," Abercrombie said after delivering a speech today. > "If we
> do that sensibly and take into account the strategic interests > involved ...
> I think we can come to a reasoned conclusion on getting both bids > accepted,
> if you will, and moving forward with that." Last year, the Air Force
> awarded the $35 billion contract for the refueling tankers to a team > led by
> Northrop Grumman Corp. and the European firm EADS, which proposed > using
> modified Airbus A330 commercial aircraft. Losing bidder Boeing Co., > which
> offered a modified 767 passenger plane, successfully protested the > award.
> The Pentagon does not expect to award another contract until early > 2010.
>
> Abercrombie said a consensus is developing behind the split-buy > approach
> but acknowledged there is opposition to buying two tanker models. > House
> Defense Appropriations Subcommittee Chairman John Murtha, D-Pa., has > backed
> the idea. But others, including Defense Secretary Gates and dozens of
> lawmakers, have argued that doing so would be too costly. "I think > the idea
> of a split buy is an absolutely terrible idea and a very bad mistake > for
> the U.S. taxpayer," Gates told the House Armed Services Committee in
> January.
>
> Opponents of a split buy have argued that fielding two types of > tankers
> would cost more because each would have its own training and > maintenance
> requirements. They have said it would eliminate competition and > ultimately
> drive up development and procurement costs of the program. Abercrombie
> suggested today that the tanker capability is needed now. "How do we
> justify the costs of saying we need to have a tanker seven or nine > years
> ago and the explosion of costs since then just by not doing it?" he > said.
> "I justify everything on the basis of meeting the strategic interest > of the
> nation. ... If you have a mission and you agree that that's what the
> mission is, then you pay for it."
>
> Abercrombie criticized the Obama administration for regarding as one
> option for budget cuts a delay of the tanker replacement program, > which the
> Air Force has repeatedly called its top procurement priority. "If > you could
> do that [delay the program] in the first place, why did we go > through all
> this?" Abercrombie said. "Why did we go through this for seven or > eight or
> nine years ... and say we've got to have it?" A postponement of the
> contract award is among several options on the table as the > administration
> weighs the details of the FY10 budget, but several sources tracking > the
> issue said such a move was not likely.
>
>
> http://www.nationaljournal.com/congressdai...090311_8120.php
>
> -----
> HEALTH: WAXMAN, DEAL INTRODUCE BILL TO PERMIT GENERIC BIOLOGICS
> By Anna Edney
>
>
> House Energy and Commerce Chairman Henry Waxman and Health > Subcommittee
> ranking member Nathan Deal, R-Ga., introduced a final version today of
> long-awaited legislation that will permit FDA to approve generic > versions
> of biologic drugs but with significantly fewer incentives for brand-> name
> drugmakers than other bills originating from Democrats. Sen. Susan > Collins,
> R-Maine, will co-sponsor the Senate version of the bill expected to be
> introduced soon by Sens. Charles Schumer, D-N.Y., and Sherrod Brown,
> D-Ohio, a spokesman for Collins confirmed today. Sen. David Vitter, > R-La.,
> also will co-sponsor the Senate version, according to Waxman's office.
> Energy and Commerce Health Subcommittee Chairman Frank Pallone, D-> N.J., and
> Rep. Jo Ann Emerson, R-Mo., are key sponsors of the House bill. The
> legislation would protect brand biologic drug companies from generic
> competition for five years. A brand biologic that is improved or > approved
> to treat a new condition would be eligible for three years free from
> generic competition, and an additional six months can be tacked on > if the
> company conducts a pediatric study on the product.
>
> Rep. Anna Eshoo, D-Calif., and House Energy and Commerce ranking > member
> Joe Barton are expected to reintroduce legislation Thursday that would
> award brand companies 12 years of protection from generic > competition, a
> term known as exclusivity. "There's bipartisan support both ways, > and we'll
> sit down and talk it out," Waxman said today when asked how he will > bring
> even his own party together on the issue. Waxman's bill also gives FDA
> discretion to decide whether a follow-on biologic company's > application for
> a generic version should be accompanied by clinical trials and > whether a
> generic product can be substituted for a brand drug at the pharmacy
> counter. Waxman said he is unsure when his committee will move to > markup
> the bill given other major issues on its plate, including universal > health
> care and climate change.
>
>
> http://www.nationaljournal.com/congressdai...090311_6526.php
>
> -----
> TRADE: LEVIN OUTLINES CONDITIONS FOR U.S.-PANAMA TRADE DEAL
> By Peter Cohn
>
>
> House Ways and Means Trade Subcommittee Chairman Sander Levin, D-> Mich.,
> said today that the proposed Panama Trade Promotion Agreement, > slated for
> action this year by the Obama administration, has potential but faces
> hurdles that must be addressed. "Panama is a country of small size > but an
> important ally. Right now, 96 percent of our exports come to the U.S.
> duty-free, while our exports face significant barriers. An agreement > would
> change that," Levin said in a speech to the Washington International > Trade
> Association. But he added that Panama must first boost labor > standards such
> as loosening restrictions on smaller, newer firms where employees > cannot
> form a union. "I think that has to change. Panama has expressed a
> willingness to proceed, and before congressional consideration of the
> agreement, that must occur." With Levin and other Democrats calling > for a
> crackdown on tax-haven abuses, the country's liberal banking laws > have run
> into criticism from groups like Public Citizen, and 54 Democrats > wrote to
> Obama last month opposing the deal. "We have to face the issue of tax
> havens in Panama," Levin said
>
> Levin said he hopes to take a fact-finding trip to Panama "fairly > soon."
> He also wants to visit Colombia, with which the United States has a > pending
> free trade agreement. The Colombia FTA "poses an expanded > challenge," Levin
> said, although he noted U.S. exporters would gain better access and > that it
> "will affirm our strong relationship." But he said Democratic > leaders have
> reiterated their concern about labor violence in that country, and
> improvements will be necessary before that pact can move. Levin is > probably
> most opposed to a pending deal with South Korea, which he said would > lock
> in an imbalance where more than 600,000 cars are shipped to the United
> States annually while between 5,000 and 10,000 U.S. cars are shipped > on
> average to South Korea. He said other industrial goods, such as home
> appliances sold by Whirlpool Corp., face obstacles to the Korean > market.
> "We made it clear to USTR before they started the negotiations that > they
> had to effectively address the issue of one-way trade with Korea. They
> failed to do it. And unless that's remedied, the Korea FTA cannot > proceed,"
> Levin said.
>
> Levin said he expected the Obama administration to take a tougher > line on
> enforcing international trade rules, including bringing more cases > at the
> World Trade Organization against countries like China. He said > Congress
> would move enforcement legislation strengthening trade remedy laws > against
> unfair imports, such as products enhanced by export subsidies. He > did not
> specifically mention Chinese currency devaluation, but noted that he
> expects there "will be a lot of discussion as to China" at next > month's
> G-20 summit of global economic ministers in London. In general, Levin,
> said, he expected "a more active role of the U.S. Congress" in trade
> policy, including when it comes time for Obama to request "fast-track"
> trade negotiating authority. "It will not work simply for the > Congress to
> be told we'll touch lightly with consultation and then in the end > vote yes
> or no," he said.
>
>
> http://www.nationaljournal.com/congressdai...090311_2523.php
>
> -----
> FINANCE: OVERSIGHT PANEL SAYS IT LACKS DETAILS ON TARP SPENDING
> By Bob Kemper
>
>
> The Congressional Oversight Panel, the group charged with overseeing > how
> the federal government allocates $700 billion to prop up the nation's
> financial institutions, supports greater public disclosure of how the
> program is working, but the panel itself often can't get the > information it
> needs to do its job, members said today. Damon Silvers, the oversight
> panel's deputy chairman, told the Joint Economic Committee that he and
> other panel members are waiting for Treasury Secretary Geithner to > appear
> before them to explain how the Obama administration plans to help > failing
> banks. Among the things the panel still needs to know is how the
> administration plans to deal with the toxic assets like failed loans > and
> foreclosures that are bogging down banks, panel members said.
>
> The oversight panel had asked Henry Paulson, Treasury secretary in the
> Bush administration and the chief architect of the Troubled Asset > Relief
> Program, for the same information but never heard back from him, > Silvers
> said. The bottom line, panel members said, is that even though about > $300
> billion has been spent and another $350 billion has been made > available to
> bail out financial institutions, those who are supposed to be > overseeing
> the program lack the information they need to perform their duties, > Silvers
> said.
>
> "Time is not on our side," Silvers told the committee, noting the > crisis
> has led to a consolidation of banks that means that half of all bank
> deposits in the U.S. are concentrated in just four federally insured > banks:
> JPMorgan Chase, Citibank, Wells Fargo and Bank of America. The > oversight
> panel's problems came to light in a hearing on how to add > transparency to
> the bailout program so that the public can know how its money is being
> spent. Greater transparency, committee members said, could help > increase
> greater public confidence in the bailout process and the financial
> institutions. "If we continue down this road (with little public
> information about how TARP is performing) we're going to erode the
> confidence the American people should have a right to expect ... and > those
> of us in government need to sustain these programs over a long > period of
> time," said Sen. Robert Casey Jr., D-Pa.
>
>
> http://www.nationaljournal.com/congressdai...090311_7050.php
>
> -----
> ENERGY: CHU'S BUDGET PLAN FOCUSES ON RENEWABLE ENERGY, BIOFUELS
> By Jeannette J. Lee
>
>
> If President Obama's budget is enacted, the Energy Department would > move
> more money into loan guarantees for renewable energy; upgrades to > battery
> technology and the electricity grid; carbon sequestration; biofuels; > and
> making homes and buildings more energy-efficient, according to Energy
> Secretary Chu. He outlined those and other goals today to the Senate > Budget
> Committee in describing the priorities in Obama's proposed $26.3 > billion
> Energy budget. According to Chu, nuclear waste disposal would > receive a
> share, although the budget will scale back funding for the storage of
> radioactive materials at Yucca Mountain in Nevada. He called the Yucca
> facility "not a workable option" for nuclear power-plant waste and > promised
> to "begin a thoughtful dialogue" on alternatives.
>
> Republicans criticized the administration for not putting more stock > in
> nuclear energy. Senate Budget ranking member Judd Gregg said he was
> disappointed that $50 billion in loan guarantees for the industry > had been
> stripped from the economic stimulus bill. Gregg called the pullback on
> Yucca a "backdoor way" of limiting licensing for new nuclear plants > by not
> making waste disposal possible. Chu countered that nuclear power and > other
> controversial energy sources, such as coal and offshore oil, have a > place
> in a diversified mix of energy sources. The Energy Department, he > said,
> "will be focused on finding oil substitutes and decreasing > unnecessary use
> of oil" to reduce dependence on imports. Despite coal's high output of
> carbon and pollutants, Chu said it will remain a major energy resource
> because of its abundance in the United States. "We have to develop
> clean-coal technologies because India and China will not turn their > backs
> on coal," he said. "I plan on putting a lot of money into research > to test
> new ideas that could revolutionize this." The budget would bump up > funding
> for the basic sciences. The Office of Science, the field of climate > study,
> and graduate students in "critical energy-related fields" all stand to
> benefit. Over the long term, Chu said, the administration will work > with
> Congress on a cap-and-trade system.
>
>
> http://www.nationaljournal.com/congressdai...090311_7584.php
>
> -----
> ENVIRONMENT: PUBLIC LANDS LEGISLATION FALLS SHORT OF PASSAGE IN HOUSE
> By Darren Goode
>
>
> A massive and long-sought package of public lands, water and natural
> resources bills fell two votes shy today of getting the two-thirds > support
> necessary for expedited approval in the House. The 282-144 vote came > after
> a Senate-approved package of more than 150 bills was modified with > language
> from Rep. Jason Altmire, D-Pa., that clarifies the measure would not
> restrict access to hunting, fishing, trapping and other recreational
> activities. But enough Republicans complained about the expedited > process
> -- which does not allow for amendments -- of the 1,200-page-plus > product. A
> spokeswoman for House Natural Resources Chairman Nick Rahall said 73 > of the
> 166 bills in the package were previously passed by the House and > another 20
> were reviewed in committee.
>
> Republicans said 19 of the bills would block energy production, > including
> hundreds of millions of barrels of oil and trillions of cubic feet of
> natural gas. This includes a House-passed bill that designates the > Taunton
> River in Massachusetts as part of the National Park Service's Wild and
> Scenic River program. Republicans said it would kill a proposed > liquefied
> natural gas facility along an urban section of the river. > Environmental
> groups, who are pushing for the overall package, oppose one of its
> provisions that would authorize a road in Alaska's Izembek National
> Wildlife Refuge. The package would set aside more than 2 million > acres in
> nine states as protected wilderness and 100 miles of wild and scenic
> rivers.
>
> The next step for House Democratic leaders is unclear. "We will > continue
> to determine the best course of action to advance these measures," > Rahall
> said in a statement. All but 34 Republicans opposed the package, while
> three Democrats -- Reps. Dan Boren of Oklahoma, Jim Marshall of > Georgia and
> Collin Peterson of Minnesota -- voted against it. The package had > trouble
> getting through the Senate. Sen. Tom Coburn, R-Okla., forced a > cloture vote
> on it in January after holding it up for months on grounds it > contained
> frivolous spending.
>
>
> http://www.nationaljournal.com/congressdai...090311_1548.php
>
> -----
> HILL BRIEFS: AT&T CHIEF WARNS OBAMA NOT TO 'STIFLE' INVESTMENT
>
> Telecommunications. AT&T Chairman Randall Stephenson urged the Obama
> administration today to tread lightly with regulations, declaring that
> "less regulation results in more investment." Speaking at a Newseum > event
> sponsored by the Economic Club of Washington, Stephenson warned that > "if
> you want to stifle investment, if you want to slow down the amount of
> capital attracted into" the telecom sector and other industries, then
> impose burdensome regulatory requirements. His firm spent $38 > billion over
> the last two years on its broadband network and plans to spend up to > $18
> billion this year on infrastructure. Stephenson anticipates the > biggest
> growth opportunities in wireless services, both domestically and > abroad.
> AT&T said Tuesday it is adding 3,000 high-technology jobs, a > development
> that comes three months after it disclosed plans to shed 12,000 > positions,
> or 4 percent of its workforce. Meanwhile, Stephenson announced that > AT&T
> would spend up to $565 million over the next decade to buy 15,000
> alternative-fueled vehicles, the largest such commitment by a U.S. > company.
>
>
> http://www.nationaljournal.com/congressdai...090311_5844.php
>
> -----
> HILL BRIEFS: REPUBLICANS PROPOSE DRILLING OFFSHORE AND IN ANWR
>
> Energy. A group of House and Senate Republicans Tuesday introduced > energy
> legislation that would expand oil and gas drilling on the Outer > Continental
> Shelf, open the Arctic National Wildlife Reserve to oil and gas > drilling,
> and encourage other initiatives they contend will spur the economy > at no
> cost to taxpayers. "It is a broad-based energy proposal, which would > have
> major positive impact on the economy," said Sen. David Vitter, R-La. > The
> bill has 11 co-sponsors in the Senate and 30 in the House; it is > estimated
> to create about 2 million jobs, and would reduce the cost of energy, > Vitter
> said. Revenue raised by increased oil and gas drilling would be used > for a
> clean and renewable energy trust fund. Rep. Rob Bishop, R-Utah, > called the
> bill "a different way to create jobs" and handle the nation's energy > needs
> until clean energy production methods are perfected.
>
>
> http://www.nationaljournal.com/congressdai...090311_7835.php
>
> -----
> HILL BRIEFS: HOUSE GOP TO OFFER OWN BUDGET
>
> Budget. House Republicans plan to offer an alternative budget on the > floor
> as GOP lawmakers from both chambers step up pressure on the Obama
> administration. House Republican Conference Chairman Mike Pence of > Indiana
> offered few details at a news conference this morning but said the > budget
> will focus on "fiscal restraint" and tax cuts for "working families > and
> small business and family farmers." Senate Republican Conference > Chairman
> Lamar Alexander of Tennessee said Senate Republicans will not offer > their
> own budget but will push alternatives to specific White House > proposals,
> such as a market-based cap-and-trade program. House Minority Leader > Boehner
> and Senate Minority Leader McConnell are expected to offer a similar
> message at a news conference this afternoon.
>
>
> http://www.nationaljournal.com/congressdai...090311_6956.php
>
> -----
> HILL BRIEFS: SCHOCK TOUTS MIDDLE GROUND ON FILLING SENATE VACANCIES
>
> Politics. Rep. Aaron Schock, R-Ill., said today the House bill he has
> offered would be the quickest solution to keep Senate seats from > sitting
> vacant while waiting for a special election to fill them. Testifying > before
> a joint hearing of the House and Senate Judiciary Constitution
> subcommittees, Schock said his bill would allow governors to make a
> temporary appointment until a special election is held within 90 > days to
> finish the term. Schock said his proposal was a "middle ground" > approach,
> although he would support a constitutional amendment being offered > by Sen.
> Russell Feingold, D-Wis., House Judiciary Chairman John Conyers and > House
> Rules ranking member David Dreier stripping governors of their power > to
> fill Senate vacancies and requiring special elections instead. "The > fact
> that only 33 percent of appointed senators win their first general > election
> bid speaks to the fact that the will of the people is not being > represented
> when politicians are allowed to hand-select other 'elected' leaders,"
> Schock said.
>
>
> http://www.nationaljournal.com/congressdai...090311_9416.php
>
> -----
> HILL BRIEFS: CORRECTIONS
>
> Corrections: Due to incorrect information provided to CongressDaily, a
> story in Tuesday's PM edition mistakenly identified Rep. Tim Murphy of
> Pennsylvania as one of three Republicans co-sponsoring the card > check bill
> in the House. He is not a cosponsor. The third Republican co-sponsor > is
> Rep. Chris Smith of New Jersey. Also, a headline in Tuesday's PM > attributed
> language to the wrong lawmaker. It should have read "Specter's > 'Gatekeeper'
> Language Gets Backing."
>
>
> http://www.nationaljournal.com/congressdai...090311_7660.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "The fact that somebody knows how to type with their thumbs can't hurt
> us."
>
> -- Intel Chairman Craig Barrett commenting today on President Obama's
> high-tech prowess. He was responding to a question at a Washington > press
> breakfast on what impact Obama's administration will have on his > industry.
>
>
> http://www.nationaljournal.com/congressdai...090311_4513.php
>

[Snuffysmith]

CongressDaily AM for Thursday, March 12, 2009

--------------------
CONTENTS

TRADE: BIPARTISAN SUPPORT FOR ASIAN DEAL GROWS
By Peter Cohn


Bipartisan support is building to get trade negotiations back on track
with a group of nations in the Asia-Pacific region, after the Obama
administration put talks on hold pending a broader review of United States
trade policy.

Forty-seven House members on both sides of the aisle wrote to President
Obama Wednesday urging him to engage in talks begun by the Bush
administration on joining the Trans-Pacific Strategic Economic Partnership.
The letter notes that the Asia-Pacific region accounts for 60 percent of
global economic output and almost half of all global trade.

"Engagement in the TPP process will strengthen U.S. ties with key allies,
increase market access for U.S. industries, and spur domestic growth,"
states the letter spearheaded by Rep. Ellen Tauscher, D-Calif., co-chair of
the New Democrat Coalition, and House Ways and Means Trade Subcommittee
ranking member Kevin Brady, R-Texas. "We are confident that this agreement
can also provide strong protections for labor, the environment, investment
and intellectual property."

The last point is important, as a strong undercurrent of skepticism has
emerged among Democrats, many of whom blame unfettered trade in part for
the economic downturn and job losses.

Fifty-four House Democrats wrote to Obama last month calling for a timeout
on pending trade deals and ongoing negotiations left over from the Bush
administration. Trade Representative-designate Ron Kirk, who gets a vote
today in the Finance Committee, told the panel this week that the "deal
fever" that marked the Bush administration is over. Additionally, U.S.
trading partners expressed alarm at "Buy American" provisions in the $787
billion economic stimulus package.

To allay fears of centrist Democrats eager to expand trade, Obama
discussed the issue with 65 New Democrats on Tuesday. "He was very clear
about that, that he's not for protectionism," said Rep. Rick Larsen,
D-Wash. He said Obama believes opening markets can "use the benefit that
comes from U.S. exports and help create jobs as we climb out of this global
recession."

"I think it's safe to say he said some very positive things there on free
trade. He believes it's an important aspect of U.S. foreign policy, as well
as a means to help grow our economy and exports," added Rep. Joseph
Crowley, D-N.Y. "The president also made it quite clear yesterday that he
did not describe himself in any way, shape or form as an isolationist."

Larsen, Crowley, Brady and Rep. Wally Herger, R-Calif., on Wednesday
relaunched the House Caucus for Asia-Pacific Economic Cooperation for this
Congress. The 21 countries making up the APEC group will meet in the United
States in 2011 - with a location to be determined -- by which time backers
hope to have a signed Trans-Pacific trade deal in place. The Bush
administration launched the talks Sept. 22, partly with that goal in mind.

The original group of participating countries included Singapore, Chile,
New Zealand and Brunei Darussalam. It has since grown to encompass
Australia, Vietnam and Peru. At Kirk's nomination hearing, Finance Chairman
Max Baucus said approving the TPP would help make the 2011 APEC meeting
"meaningful" and could pave the way for a broader trade agreement including
regional economic powerhouse Japan.

At a news conference to promote the APEC Caucus Wednesday, Singapore's
ambassador to the United States, Chan Heng Chee, made a pitch for making
the TPP a "deliverable" in time for the 2011 meeting. "Trade has benefited
the U.S. enormously. Trade has benefited my country enormously. In
Singapore, our prosperity is largely based on trade, because we have no
resources, not even water," Chan said.

Larsen said the New Democrats' discussion with Obama did not get into
specifics of pending trade deals and negotiations. But he said "I believe
and he believes that APEC will be a critical player in maintaining the
balance of trade."

Even if the Obama administration eventually dives into the TPP talks,
negotiating that agreement will prove no easy lift, as evidenced by the
raft of comments submitted to USTR on the subject in the past week. On one
side are the usual pro-trade suspects, major importer-exporters like Boeing
Co. and Wal-Mart, for example. On the other side are the AFL-CIO and Public
Citizen. Then there are more specialized circumstances that negotiators
will have to consider.

Take Vietnam, for example. Domestic textile and shrimp producers oppose
Vietnam's participation in the deal, noting that country's major export
presence in those products. Pacific Northwest apple, pear and sweet cherry
producers view Vietnam as a particularly ripe market for their goods. The
American Potato Trade Alliance also views Vietnam as a major untapped
market for frozen fried and dehydrated potato exports with its burgeoning
fast-food industry. The Potato Alliance represents growers as well as firms
like Wendy's International Inc., and Yum Brands Inc., which owns KFC, Long
John Silver's and Taco Bell.

In the case of New Zealand, that country is a target of the domestic wine
and dairy industries' ire. Wine interests -- noting that the United States
has 150 million Americans of drinking age and New Zealand 2 million,
meaning the potential for growth is heavily skewed to New Zealand wine
exporters -- requested U.S. tariffs be phased-out as slowly as possible.
The U.S. dairy industry, including Land O'Lakes Inc., argued even more
strongly for limits on New Zealand's access.


http://www.nationaljournal.com/congressdai...090312_5210.php

-----
REPUBLICANS: MCCARTHY PLOTS TO TAKE BACK THE HOUSE
By Erin McPike


Even before early voting began in most states in the fall, a small group
of Republican lawmakers and strategists started plotting what was
originally cast as a five-year effort to rebuild the GOP.

The group meets semi-regularly. It's led by Rep. Kevin McCarthy of
California with assists from Kevin Madden and Alex Gage, who were senior
strategists on former Massachusetts Gov. Mitt Romney's presidential
campaign. Part of their mission is figuring out how to eventually get the
GOP back in control of the House.

"It's bringing those together who want to find solutions and want to fight
to get to the majority," McCarthy said in an interview.

In an interview, McCarthy likened it to the invitation-only Wednesday
Night Meeting, a small, off-grounds gathering of President Obama's advisers
to discuss polling trends, as reported by the New York Times this week.

One thing McCarthy stresses is the importance of speaking with one voice.

"The microphone Obama has is so large," he said. "If we all say different
things, nothing ever gets through. But if we focus our energy, we're able
to break through that level. So it's more fine tuning on focusing people in
the right directions."

Madden is known as "the facilitator" for bringing McCarthy together with
some of the more established figures and sharp strategists in the party.
McCarthy also calls Madden an opinion leader because of all the political
and policy people he deals with on a daily basis and said Madden has been a
tremendous help to the group in refining their messaging.

He also said that because of Madden's visibility as a cable-television
commentator, it is vital to let him know what Hill Republicans are up to so
he can help drive the message.

Ever the diplomat, Madden made sure to point out that the ad hoc group is
"a contribution, not a supplement" to the party committees and official GOP
efforts.

Gage, the CEO and founder of TargetPoint Consulting, provides the group
with a fresh supply of polling data from his firm and, with the help of
TargetPoint research director Alex Lundry, breaks down polling done by
others to explain voter trends and demographics.

Between Election Day and Thanksgiving, Lundry did the leg work for a
TargetPoint project called the "Obama Agenda Study." It studied voter views
about Obama's game plan.

The gist of their findings, Lundry said, is that Republicans "need to
modernize our message." The study found that the country is still
"center-right," but Lundry emphasized the "center" part. "If we have data
helpful to the party or to conservatives, we want to get it in front of
them," he said.

McCarthy said the growing group has begun to extend to all the Young Guns
and the whip team. House Minority Whip Cantor and some of his staff have
participated on occasion.

"The best times we have may be down in the Capitol Hill Club or [when] we
do a Young Guns dinner where there's no set agenda, and we'll be at a
restaurant and we're just brainstorming," he said. The group also meets at
the National Republican Congressional Committee, where McCarthy is
recruitment chairman.

But if Madden is "the facilitator" and Gage and Landry describe themselves
as "the investigators," then McCarthy is "the delegator" because, Madden
said, he ends each meeting by doling out tasks.

Members of the group are aware of the generation gap that faces the party
and the challenges of convincing younger voters that the party is relevant.
One way McCarthy is trying to close the gap is presenting every member of
the whip team with iPods so they can follow podcasts about congressional
developments and stay on the same page with their message. The iPods, which
McCarthy and Cantor are buying with leadership funds as a "continuing
education" tool, might help an older member relate to high school students
by going into a class and talking about how he uses an iPod in his work.

Wearing his recruiting hat, McCarthy said another way to attract younger
voters is by finding "another Republican that has great ideas that they can
relate to and associate with." That extends down the ballot, he said, to
Republican council members and mayors.

"Democrats did an excellent job," he said. "They won more than just the
House. They focused on secretary of state's races. We've got to think
beyond just the House."

While most of the NRCC operation is focused on next year's elections,
McCarthy said he is taking a longer view.

"I'm not recruiting for just two years from now. I'm recruiting six years
out," McCarthy said.


http://www.nationaljournal.com/congressdai...090312_8009.php

-----
SENATE: BURRIS, TRYING TO OUTLAST DEM CRITICS, VOTES WITH THEM
By Dan Friedman


While Sen. Roland Burris might not get along well with the Senate's
Democratic leaders, you'd never guess it from his voting record.

The embattled Illinois Democrat has outdone all other Democrats who might
seek re-election in 2010 by voting with his party every time, quietly
racking up a voting record that so far rivals the ultra-loyal Sen. Daniel
Akaka, D-Hawaii. Burris voted to keep funding the unpopular Troubled Asset
Relief Program in January, against eliminating automatic pay raises for
lawmakers on Tuesday, and with his party on every measure in between.

Burris backers say his votes reflect his convictions. But as Burris tries
to outlast calls for his resignation over omissions in his testimony before
an Illinois impeachment panel in January and gain viability for a possible
2010 run, aides tout the consistency as part of making his case.

"Roland is a strong Democratic vote ... he's there to do this job," said
Delmarie Cobb, Burris' public relations consultant in Chicago.

The approach might not win him leadership backing in 2010, but it will not
hurt. Majority Leader Reid "appreciates his vote," said Jim Manley, a
spokesman for Reid.

Burris aides said he plans to outlast critics and win Senate allies by
making clear he will not resign, and by simply showing up for work. He has
already shed the cameras and the constant media queries that Majority Whip
Durbin cited a few weeks ago as a hindrance on Burris' ability to work.

And in Illinois, following the recent hiring of Cobb, a series of black
ministers and aldermen have publicly defended Burris. Cobb discounts
assertions by Illinois political observers that the defenses reflect her
influence, but acknowledges a new "proactive" push to combat the
"drip-drip" of negative news that aides said they expect to continue
through the summer.

Recent examples include reports that impeached Gov. Rod Blagojevich gave
Burris' son a job and that a Sangamon County prosecutor investigating
Burris for perjury sought FBI tapes of his conversations with Blagojevich's
brother.

Cobb and other Burris backers claimed the reports are part of a strategy
by candidates interested in Burris' seat and their backers to "weaken
Roland politically with these legal bills, so he will think twice about
running in 2010." Cobb said Burris' legal fees are in six figures.

After Illinois legislators rejected Illinois Gov. Pat Quinn's call for a
special election, the Sangamon County probe appears to be Burris' top legal
issue.

The Senate Ethics Committee has opened an inquiry into Burris' statements,
but Cobb and Burris attorney Tim Wright told CongressDaily the committee
has not yet contacted Burris or his lawyers. Cobb suggested the committee
might be awaiting the result of the perjury probe or deliberately moving
slowly to draw out the probe.

A spokeswoman for Ethics Chairwoman Barbara Boxer declined to comment on
the specifics of the case but said the panel "is doing what it always does
when it receives allegations of misconduct, which is to open a preliminary
inquiry."

Other Senate aides and Ethics Committee veterans cautioned against
concluding the panel has put off an investigation based on Burris' backers
claims that they have not been contacted.

"The fact that someone who may be the focus of an investigation hasn't
been contacted yet, does not mean that nothing's going on," said Robert
Walker, a former House and Senate ethics committee staff director now with
Wiley Rein.

Walker said that while the panel could defer the probe without announcing
it, "It may be that they are proceeding at least in evaluating the
preliminary evidence that is on the public record, and there is certainly
some substantial evidence on the public record."


http://www.nationaljournal.com/congressdai...090312_8762.php

-----
ECONOMY: OBEY SAYS PRUDENCE DICTATES LOOKING INTO SECOND STIMULUS
By Humberto Sanchez


Just more than three weeks after a $787 billion economic stimulus package
became law, the House Appropriation Committee is looking into drafting a
second stimulus, just in case more action is needed to help turn the
economy, Appropriations Chairman David Obey said Wednesday.

"Prudence would dictate that you would anticipate that you might need
other things," Obey said. "It's a simple routine to prepare possible
options if you have a next requirement."

His comments came one day after House Speaker Pelosi -- following a
meeting with economists -- said that she is open to the possibility if
needed.

Obey threw some blame at the Senate for the situation, noting that the
stimulus initially approved by the House -- an $819 billion bill -- had to
be cut to $787 billion to win three Republican votes.

"I said from the beginning that we would probably undershoot," Obey said.
"The Senate squeezed it by a couple of hundred billion dollars. I regret
that, but that's democracy."

He also said Democratic leaders would wait to see what effect the first
stimulus will have.

"It is spectacularly unreasonable to expect to see this stimulus package
to produce any action any time soon," Obey said. "It takes a number of
months to get out in the field and get moving ... [But] that doesn't mean
that we shouldn't be thinking and preparing options for the time when it
may become necessary."

Talk of a second stimulus left Republicans cold. Senate Minority Leader
McConnell compared it to Japan's Lost Decade, when in the early 1990 after
a crash in real estate and stock prices, Japan enacted a series of stimulus
packages, which did not pull the economy out of a deep recession.

"As we all know, they passed numerous fiscal stimulus bills throughout the
decade of the 1990s," McConnell said. "And at the end of the decade ... the
Japanese economy looked very much like it did at the beginning of the
decade. So my members are highly skeptical that we can spend our way out if
this particular problem."

Obey's comments also came after House Democratic leaders Wednesday issued
two new initiatives to improve the earmark process, and after President
Obama called for overhaul of the earmark process as he prepared to sign the
$410 billion FY09 omnibus spending bill packed with thousands of earmarks
the White House did not want.

One initiative would give the appropriate executive-branch agency 20 days
to review a member-requested project to make sure the earmark is eligible
to receive funds and meets the goals established in law. The second would
require the executive branch to ensure that any earmark for a for-profit
entity be awarded through competitive bidding.

As Congress considered the omnibus over the last few weeks, Republicans
have hammered Democrats and Obama for the nearly 9,000 earmarks in the bill
worth about $7.7 billion, although Republican members sponsored a large
number of them. Republicans were pessimistic the Democratic earmark
proposals would improve the process.

"I think the president missed a golden opportunity today to fulfill his
campaign commitment to not sign bills that have a lot of wasteful spending
and are overburdened with earmarks," said House Minority Leader Boehner.
"When you look at the earmark reforms ... proposed today, the question I
asked is, 'where is the beef, where is the reform.' I just don't see it."

Obey became irate when asked about Republican criticism of the proposals
and pointed to the fact that the earmarks in the bill only comprised 1
percent of the total omnibus spending.

"I am tired of talking about doughnut holes," said Obey.

Senate Appropriations Chairman Daniel Inouye, in a statement, said that
Democrats have brought down the level of earmarks since they won the
majority in Congress in 2006.

"I very much appreciate President Obama's announcement today in support of
reforming the practice of congressional earmarking," Inouye said. "The
reforms we have already implemented ensure that the earmarking process now
has an unprecedented level of transparency, accountability and openness."

Inouye, along with Senate Appropriations ranking member Thad Cochran, also
sent letters to senators Wednesday reminding them that FY10 earmarks must
be posted on their Web sites, the request must be made 30 days before any
markup, and that earmarks to private companies are subject to competitive
bid requirements.

"I will work with the White House and Senate leadership to identify and
put in place any additional changes which may be required to ensure
complete accountability," Inouye said.


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WHITE HOUSE: SENATE TO VOTE ON OGDEN TODAY
By Dan Friedman


The Senate is set to vote today to confirm David Ogden as deputy attorney
general after Republicans dropped an objection that would have forced a
cloture vote. Some GOP senators have criticized positions on social issues
that Ogden represented while working as an attorney, but Republicans agreed
to allow a vote.

Majority Leader Reid said Wednesday that he also hopes to confirm Thomas
Perrelli as associate attorney general this week.

Other nominees for top Justice Department posts, including Harvard Law
Professor Elena Kagan to be solicitor general, are awaiting confirmation
amid GOP grumbling about their views on social policies.


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HEALTH: BAUCUS OVERTURES ON EMPLOYER MANDATES GET CHILLY RECEPTION
By Anna Edney


Senate Finance Chairman Max Baucus appealed to business leaders Wednesday
to assist him in crafting a pay-or-play system that mandates employers
provide health coverage as part of an overhaul of the nation's healthcare
system, but he appears to have a tough road ahead if he wants employer
groups on board.

"My vision for reform is one of shared responsibility. I hope that you
will agree," according to his prepared remarks at an appearance before the
National Business Group on Health.

Employer responses to Baucus' proposal to require employers who do not
offer health coverage to pay into a fund for the uninsured range from
resistance to vehement opposition.

"I can well appreciate the chairman's sentiments, but that's just going to
recreate the battle that sunk Clinton health care in '93 and '94," said E.
Neil Trautwein, vice president and employee benefits counsel with the
National Retail Federation, adding an employer mandate would "blow up the
reform process."

Baucus proposed in a November white paper providing tax subsidies on a
sliding scale for businesses to purchase health coverage and exempting the
smallest companies that cannot afford it.

He has said he wants legislation ready for markup in June and headed for
the Senate floor before the August recess.

House Energy and Commerce Chairman Henry Waxman, House Ways and Means
Chairman Charles Rangel and House Education and Labor Chairman George
Miller committed to coordinating healthcare overhaul efforts Wednesday much
like Baucus and Senate Health, Education, Labor and Pensions Chairman
Edward Kennedy. The House chairmen wrote a letter to President Obama
outlining their plans, pledging to pass an overhaul that would provide
universal health care by the August recess.

The National Retail Federation and other business groups, including the
U.S. Chamber of Commerce and the National Federation of Independent
Business, participate in an ongoing discussion with a range of healthcare
stakeholders coordinated by Kennedy's staff. Those groups and the National
Business Group on Health did not express a fondness for an employer
mandate, and the retail federation and national business group said an
individual mandate is the only coverage requirement they could get behind.

"We're opposed to an employer mandate," Helen Darling, president of the
National Business Group on Health, said. "We believe there should be
individual responsibility."

Darling called an employer mandate "the worst possible solution."

Employer groups worry a mandate on them would cost jobs, and the recession
has given them extra ammunition.

"We don't want to put employers out of business. I think we're going to
have to be very conscious of the environment we're in right now," said
Amanda Austin, senior manager of legislative affairs for the National
Federation of Independent Businesses, who met Wednesday with Baucus' staff
to discuss the employer mandate and other issues.

Still hoping to reach a compromise with employers, Baucus noted Wednesday
evening one of the crucial details staff and stakeholders need to work out
is the minimum benefit employers would be required to provide to keep from
paying into the fund.

"Once Congress starts to define what the minimum benefit is, it's kind of
hard to see where it would stop," said Randel Johnson, the Chamber's vice
president of labor, immigration and employee benefits.

Johnson, as well as Darling, envisioned essentially a "Cadillac" plan that
would require benefits above and beyond what many employers offer.

Each group said they stay in contact with Baucus' staff, and the chairman
pushed for them to keep open minds.

"Wait until we can see all parts of the puzzle," he said.


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TRANSPORTATION: MEXICAN TRUCK PROGRAM DIES, BUT OBAMA WANTS NEW IDEAS

An 18-month-old pilot program that allowed some Mexican trucks to carry
goods into the United States died when President Obama signed the omnibus
spending bill Wednesday, but his administration will try to reinvent the
controversial program.

A spokeswoman for the Office of the U.S. Trade Representative, Debbie
Mesloh, told the Associated Press that Obama wants the office to take the
lead on developing "a new trucking project that will meet the legitimate
concerns" of Congress and meet U.S. commitments under the North American
Free Trade Agreement.

The United States prohibits most Mexican trucks from driving more than
about 20 miles, or 75 miles in Arizona, beyond the border, but agreed to
lift the ban after NAFTA was signed in 1994. The Bush administration
started a pilot program allowing access for up to 500 Mexican trucks beyond
the border zone.

Under pressure from labor, safety and other groups, Congress voted to
block spending on the program in 2007, but last year the Bush
administration used a loophole in the law to keep it operating. The omnibus
bill signed Wednesday bars further spending on it.

Sen. Byron Dorgan, D-N.D., sponsor of the provision that ended the
program, wrote Transportation Secretary LaHood this month to say he does
not oppose Mexican long-haul trucks on U.S. roads, but wants them to be
safe.


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JUDICIARY: MICROCHIP INDUSTRY EXECUTIVES MAKE THEIR VOICES HEARD
By Andrew Noyes


Giants of the $120 billion U.S. microchip business are united in their
message to Congress on topics from the need for industry-friendly tax
policies to greater federal investment in research and development, but
they are divided over legislation that would bring sweeping changes to the
patent system. Intel Chairman Craig Barrett and Qualcomm CDMA President
Steve Mollenkopf acknowledged the friction Wednesday during a roundtable
that was bookended by visits with lawmakers.

The split is over language in a bill sponsored by Senate Judiciary
Chairman Patrick Leahy and Sen. Orrin Hatch, R-Utah, that would dictate how
damages are calculated in patent infringement lawsuits. Qualcomm believes
altering the damages regime could disadvantage entities that rely on
patents, particularly small high-tech companies, Mollenkopf said. Barrett
argued the opposite, pointing to what he believes is a patent system that
has not kept pace with innovation.

"We are a big industry that has a lot of different business models and
perspectives and we cannot agree on everything," said Mollenkopf, whose
company is part of a lobbying group that launched in 2007 to represent the
interests of small tech and patent-licensing firms as similar bills moved
through the House and Senate. The House passed its version, but the Senate
measure stalled in the spring when Leahy and Judiciary ranking member Arlen
Specter could not reach agreement on damages language.

Barrett's company is part of a coalition, backed by Apple, Google,
Microsoft and others, that is trying to persuade lawmakers to sign on to
Leahy's legislation and a companion bill sponsored by House Judiciary
Chairman John Conyers and ranking member Lamar Smith. His contingent argues
that current law provides little guidance to courts and juries on how to
fairly calculate damages, and they are often set as a percentage of a known
product even when the invention is one component of that product.

"Gatekeeper" language offered by Specter last session is a good place to
start negotiating this year, they said. The concept would give courts
clearer requirements on handling evidence of infringement and determining
damage, but Intel and its allies believe that solves only part of the
problem.

Texas Instruments Vice President Paula Collins, whose firm is part of yet
another coalition, predicted the bill's passage will hinge on parties'
willingness to compromise on damages.

Semiconductor Industry Association President George Scalise, who brought
Barrett, Mollenkopf, and other executives to Washington this week, arranged
meetings with Hill groups like the New Democrat Coalition and the
Republican Study Committee.

The executives' conversations focused on areas where the firms see
eye-to-eye, like ramping up federal funds for R&D and K-12 education and
promoting tax policies that will retain and attract semiconductor
investment in America.


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HEALTH: PANEL EXAMINES FDA CHALLENGES ON EVE OF NOMINATIONS
By Katie Sanders


Illustrating one of the many challenges the new leaders of the FDA will
face, House members Wednesday examined the difficulties in overseeing food
safety just before news broke that President Obama was nominating former
New York Health Commissioner Margaret Hamburg to lead FDA and Baltimore
Health Commissioner Joshua Sharfstein to be her deputy director.

The House Energy and Commerce Health Subcommittee's hearing of ways to
reform the food safety system, including granting FDA authority to issue
mandatory product recalls, comes in the wake of one of the largest food
recalls in history, following a lethal salmonella outbreak in the peanut
industry that killed nine people.

"It is shameful that FDA does not have authority to mandate recalls," said
Rep. John Dingell, D-Mich., who added that FDA needs a predictable revenue
stream and updated oversight powers.

Lawmakers and panelists did not shun the idea of stripping food oversight
from the FDA and forming a new food safety system. Agriculture
Appropriations Subcommittee Chairwoman Rosa DeLauro, D-Conn., has
introduced legislation to split the food safety functions of the FDA into a
separate division of HHS, establish a food safety commissioner and update
food safety laws.

But Energy and Commerce Chairman Henry Waxman said reorganizing federal
bureaucracies would take too much time, and quickly solving the problems of
the current system should take precedence. "After we finish that job, we
can consider whether a reorganization is necessary, and if so, how to go
about it," Waxman said.

Energy and Commerce Health Subcommittee Chairman Frank Pallone, D-N.J.,
said his panel's next hearing would explore which legislation it would try
to move through Congress. He said the subcommittee is still awaiting
recommendations from the new FDA commissioner. "It is our intention to move
fairly quickly," he said.


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PEOPLE: PEOPLE
By Jeannette J. Lee and Gregg Sangillo


PARTNER UP. Former Sen. John Warner, R-Va., has rejoined his former law
firm, Hogan & Hartson. Warner, who retired this year, told CongressDaily he
would draw on his expertise on national security and international trade
and devote a lot of time to climate-change issues. Warner said he intends
to "adhere strictly" to the relevant ethics laws and Senate rules that bar
him from lobbying his former colleagues. "I do not foresee that my
activities, which will be unrestricted with respect to the executive
branch, will constitute lobbying," he said. Warner joined Hogan & Hartson
as an associate in 1961 and made partner in 1964. In February 1969, Warner
left the firm for the Defense Department, where he served for over five
years as Navy undersecretary and secretary.

WHIP MOVE. Denzel McGuire is heading to Senate Minority Whip Kyl's office
to serve as deputy chief of staff and policy director. McGuire is chief of
staff in the personal and committee offices of Senate Budget ranking member
Judd Gregg. She previously served as education policy director at the
Senate Health, Education, Labor and Pensions Committee when Gregg chaired
that committee. In the 1990s, McGuire work on the House Education and the
Workforce Committee and for Rep. Bob Goodlatte, R-Va. She takes over for
Lisa Wolski, who was promoted to chief of staff.

TEAM ALLEN. George Allen Strategies, the firm of former Sen. George Allen,
R-Va., has brought Paul Unger on board. Unger served as counsel and
legislative director for Allen during his 2001-2007 Senate tenure. Unger
previously served as vice president and lobbied for McGuireWoods
Consulting. Before joining Allen's Senate staff, he was the majority staff
director for the House Agriculture Committee and counsel for former Sen.
Gordon Smith, R-Ore.


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HOUSE RACE HOTLINE EXTRA: HOME RULE
By Tim Sahd


Even one very average year of high school Latin still taught me enough to
translate the phrase "divide et impera." But you don't have to have taken
the dead language -- even in some misguided attempt to do well on the SAT
-- to know that "divide and rule" is the tactic Democrats are employing,
with some success, against Republicans these days.

The Rush Limbaugh affair is a key example of this. It started when
Limbaugh said he wanted President Obama -- and/or his policies -- to fail.
The administration then used that situation to challenge congressional
Republicans on Limbaugh's place in the party, as well as to help Obama pass
the stimulus package, which then received zero Republican House votes.

But what was, until that point, an interparty fight turned into an
intraparty scrum. Republican National Committee Chairman Michael Steele
took the bait and affirmed that he, in fact, was the leader of the GOP, and
called Limbaugh's show "ugly" and "incendiary." While Steele later said he
meant no offense to Limbaugh, the damage was done. Democrats were able to
claim both that Steele caved to the real Republican leader, and at the same
time attack the polarizing Limbaugh. It was a no-lose situation.

Democratic-leaning groups then got into the act. Americans United for
Change is airing a radio ad against four House Republicans who sit in
districts Obama won in 2008, asking those incumbents if they support
Limbaugh's desire for Obama to fail, or if they'll work with the president.

This does nothing but split Republicans, with Limbaugh loyalists on one
side, and party stalwarts on the other. Think that hurts National
Republican Congressional Committee fundraising?

Another example of the divide-and-rule strategy can be seen with the
stimulus. While House Republicans were united in their opposition, the same
can't be said for some of their longtime business allies. The U.S. Chamber
of Commerce, the Business Industry PAC, and the National Association of
Manufacturers, all supported the bill.

And that support is foiling Republican attempts to label vulnerable
Democrats who supported the stimulus as tax-and-spend liberals. The NRCC
has targeted 30 Democrats who supported the package, but Bloomberg has
reported that 10 of those Democrats were identified by BIPAC as
"pro-business supporters." And the Chamber is on record praising 16 of
them.

So it's difficult for Republicans to brand their opponents as big spenders
when their allies are praising those same opponents. Will the upcoming vote
on the Employee Free Choice Act help the GOP with its business ties?

This divide, though, doesn't just appear to be playing out inside the
Beltway or on radios; it's also apparent in the latest Diageo/Hotline poll.

First, congressional Democrats have a 49 percent approval rating in the
House. That's significant, considering overall congressional job approval
was in the teens for much of last year, although 45 percent disapprove.

The poll, conducted Feb. 28-March 2 by Financial Dynamics, surveyed 803
registered voters and has a 4-point error margin.

On the Republican side, just 34 percent of all voters approve of the job
they're doing in Congress, compared to 60 percent who disapprove.

These numbers don't necessarily mean GOP voters are mad at their own.
There are several reasons why this number is so low, including the
possibility that these voters are so angry at the overall direction of
Congress that they're punishing even congressional Republicans, with whom
they agree.

Regardless, this is not a great environment for the NRCC to raise money or
recruit candidates.

But while things might look rosy for Democrats, there's still some good
news for Republicans.

First, the Hotline poll shows that while Republicans are having trouble
with their base, those members are coming home in the generic ballot test,
and so are independents. Overall, Democrats still lead, 40-34 percent, but
that's down significantly from their 24 percent lead on this question in
the euphoric days following the inauguration. The best news for the GOP?
Independents split their support between the two parties.

Second, there's a special election coming up to fill the House seat of
Sen. Kirsten Gillibrand, D-N.Y. Due to the overall vacuity of election
news, the victorious party in a special election always claims bragging
rights, and pundits tend to overstate the importance of the results.

So, while a pickup here would still leave Republicans 39 seats shy of the
majority, it would give them needed momentum, and might help soothe
lingering problems within the party. Victory heals wounds.

Of course, a win here is still a big if. State Assembly Minority Leader
James Tedisco is still the frontrunner, but both sides agree that
Democratic venture capitalist Scott Murphy is closing the gap.

It didn't help Tedisco's cause that he didn't say how he'd vote on the
stimulus. That gave Murphy and Democrats an opening to paint Tedisco as an
Albany politician -- a reliable line of attack.

If Tedisco survives these attacks and wins, it will give the Republican
Party a burst of momentum it sorely needs.


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HILL BRIEFS: OBAMA NAMES PICKS FOR IRAQ, AFGHANISTAN POSTS

The White House announced NNWednesday that President Obama will nominate
Lt. Gen. Karl Eikenberry as ambassador to Afghanistan and veteran diplomat
Christopher Hill as ambassador to Iraq.

Eikenberry, deputy chairman of the NATO Military Committee in Brussels,
Belgium, is former head of the Combined Forces Command in Afghanistan. His
previous Army postings include director for strategic planning and policy
for the U.S. Pacific Command and U.S. security coordinator and chief of the
Office of Military Cooperation in Kabul, Afghanistan.

Hill is assistant secretary of State for East Asian and Pacific affairs.
He has been a U.S. ambassador to Korea, Poland and Macedonia, and he was
special envoy to Kosovo in the Clinton administration.


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HILL BRIEFS: MERRILL LYNCH WAS DECEPTIVE ABOUT BONUSES, CUOMO SAYS

New York Attorney General Andrew Cuomo said Wednesday that Merrill Lynch &
Co. may have misled Congress by saying in November it planned to pay out
bonuses at year end, when in fact it decided to accelerate those payouts,
Reuters reported.

Cuomo also said Merrill traders may have delayed taking hefty losses late
last year until after the company decided to pay out $3.62 billion of
overall bonuses.

The allegations were made in filings with the New York State Supreme Court
in Manhattan, two days before Justice Bernard Fried is expected to hold a
hearing on whether Bank of America, Merrill Lynch's owner, can keep the
bonus data confidential.

In his filing, Cuomo said Bank of America "clearly could have influenced,
if not controlled, the timing" of the bonuses, but chose neither to request
nor demand changes.

John Finnegan, a Merrill director and member of its compensation
committee, said at a March 3 deposition "I don't remember any" resistance
to a proposal by Chief Executive John Thain at a Nov. 11 meeting to paying
out bonuses before year end.

Cuomo said it was thus "misleading" for Merrill to tell a congressional
subcommittee that it planned to make incentive compensation decisions at
year end.


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HILL BRIEFS: OBAMA URGED TO CALL WWI ARMENIAN DEATHS GENOCIDE

Four House members have asked President Obama to follow up on campaign
statements and label a 1915 massacre of Armenians as genocide, Reuters
reported Wednesday.

The pressure on Obama comes ahead of an expected presidential trip to
Turkey, which has warned that such declarations by the United States would
damage relations. Turkey denies that up to 1.5 million Armenians suffered
genocide at the hands of Ottoman Turks during World War I.

Ronald Reagan was the only U.S. president to publicly call the killings
genocide. Others avoided the term out of concern for the sensitivities of
Turkey, an important NATO ally. Turkey accepts that many Armenians were
killed, but denies they were victims of a systematic genocide. The 94th
anniversary of the killings is April 24.

"As a presidential candidate, you were .... forthright in discussing your
support for genocide recognition, saying that 'America deserves a leader
who speaks truthfully about the Armenian genocide and responds forcefully
to all genocides.' We agree with you completely," a letter to Obama from
the lawmakers said.

It was signed by Reps. Mark Kirk, R-Ill.; Frank Pallone, D-N.J.; George
Radanovich, R-Calif.; and Adam Schiff, D-Calif.


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HILL BRIEFS: DODD, SHELBY TALK REFORM WITH GEITHNER, SUMMERS

Senate Banking Chairman Christopher Dodd and ranking member Richard Shelby
met Wednesday with Treasury Secretary Geithner and Lawrence Summers,
director of the National Economic Council, on restructuring regulation of
the financial industry.

Afterward, the two senators issued a joint statement calling for a
bipartisan approach to the restructuring, which is the top agenda item for
their committee.

"With an undertaking so broad and complex, our efforts must be
deliberative and coordinated in order to be effective," the statement said.
"We recognize the importance of moving beyond party lines to ensure that
the problems in financial oversight that contributed to the economic crisis
do not reoccur."


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HILL BRIEFS: MUSGRAVE JOINS CAMPAIGN AGAINST ABORTION RIGHTS

Former Rep. Marilyn Musgrave, R-Colo., is joining the Susan B. Anthony
List, which raises money for female candidates who oppose abortion, to head
a project aimed at unseating abortion-rights supporters in Congress, the
Coloradoan reported Wednesday.

The program will be called "Votes Have Consequences" and Musgrave told the
Christian Broadcasting Network that she would travel around the country
informing voters on how their lawmakers voted on abortion issues.

"We're going to be assertive," she said. "We're going to be aggressive and
this is a new day in politics for the pro-life movement."

After three terms in the House, Musgrave lost a re-election bid last fall
to now-Rep. Betsy Markey, D-Colo. The Susan B. Anthony List helped Musgrove
raise nearly $50,000 for the 2008 race, the Coloradoan said.


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POLITICAL ROUNDUP: LATE S.C. GOVERNOR'S SON MAY CHALLENGE REP. BROWN

Republican Carroll Campbell III has begun raising money and testing the
waters for a 2010 primary bid against Rep. Henry Brown, R-S.C.

Campbell said Tuesday he was talking to prospective donors and not ready
to formally announce plans. Campbell said he is going to see how the
discussions go before deciding on a bid to unseat Brown from his 1st
District seat.

He is the son of the late GOP Gov. Carroll Campbell, who is credited with
much of the growth of the state's Republican Party. He held the 4th
District seat for four terms and won the first of two terms as governor in
1986.

Meanwhile, Paul Thurmond says he is being encouraged to run, too. Thurmond
is the son of the late Sen. Strom Thurmond, R-S.C.

First elected in 2000, Brown handily won each general election until last
year, when he defeated Democrat Linda Ketner, 52-48 percent.


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POLITICAL ROUNDUP: ILL. HOUSE PANEL BLOCKS SPECIAL SENATE ELECTION

Efforts to remove Sen. Roland Burris, D-Ill., from his seat hit another
roadblock Wednesday in the Illinois Legislature.

A House committee rejected two bills that would have canceled Burris'
appointment and set up a special election to replace him.

One bill was sponsored by a Democrat and the other a Republican, but the
vote on both was 7-4 against passage.

Critics say Burris was tarnished by accepting an appointment from former
Gov. Rod Blagojevich, who was removed from office partly because of
accusations he schemed to benefit from his power to name President Obama's
successor in the Senate.

Burris has repeatedly changed his story about his contact with
Blagojevich's friends and aides before being appointed.


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[Snuffysmith]

> CongressDaily AM for Friday, March 13, 2009
>
> --------------------
> CONTENTS
>
> TRADE: HOYER: 'IT'S APPROPRIATE' TO TAKE UP COLOMBIA FREE TRADE DEAL > THIS
> YEAR
> By Peter Cohn
>
>
> House Majority Leader Hoyer confirmed Thursday he plans to visit > Colombia
> on a regional tour during the recess next month, adding that "my > view is
> it's appropriate for us to" take up the United States-Colombia Free > Trade
> Agreement this year.
>
> Hoyer stressed that the languishing pact was not his primary reason > for
> visiting, and his trip will also include Mexico, which has been > wracked by
> drug-related violence. But Hoyer's apparent focus on the subject > will no
> doubt buoy supporters of the Colombia deal, who are searching for a
> powerful ally within Democratic-controlled Washington.
>
> Hoyer's views on the pact are fairly well-known, and at odds with > many in
> the labor community who are adamantly opposed to a trade deal with a
> country where violence against unionized workers still occurs.
>
> "Colombia has made significant progress in reducing violence, and we > are
> encouraged by the commitment of the Uribe government to continue these
> efforts," Hoyer told the Spanish-language newspaper Semana in January,
> referring to Colombian President Alvaro Uribe. "I continue to > believe that
> a U.S.-Colombia Free Trade Agreement would be beneficial to both > nations,"
> he said, adding that he looks forward to discussing the matter with
> President Obama and Speaker Pelosi.
>
> The deal faces staunch opposition among Democratic leaders. House > Ways and
> Means Trade Subcommittee Chairman Sander Levin, D-Mich., this week > said
> concerns about labor violence still must be addressed by the Colombian
> government. Obama opposed the deal on the campaign trail, and in > written
> responses to questions submitted by Senate Finance Committee > members, Trade
> Representative-designate Ron Kirk reiterated the president's > position, but
> left the door open.
>
> "The concerns the president expressed with the situation in Colombia > were
> not political rhetoric. They are real. They are also something we > can work
> with Colombia to address," Kirk wrote in an answer to Finance ranking
> member Charles Grassley. Responding to Sen. Orrin Hatch, R-Utah, Kirk
> replied: "The president has made clear that Colombia is a friend and > ally
> and we will work with them in that spirit."
>
> Kirk reiterated that it was more likely the Panama Trade Promotion
> Agreement, another holdover from the Bush administration, would come > up
> first. Levin and others have concerns with that agreement as well, > and some
> trade-watchers predict it might be a heavier lift even than the Peru > trade
> pact that passed in 2007. The measure was enacted with more than > half of
> House Democrats opposed, and more "fair-trade" Democrats were > elected in
> 2008.
>
> In response to Sen. Debbie Stabenow, D-Mich., Kirk said the USTR would
> work with the Labor Department on what issues need to be addressed > before
> the Panama deal would be submitted. "Initial conversations with > experts
> indicate that while that list exists, it is not long. I cannot say > whether
> or not you should expect a bill before Easter," Kirk wrote. "We need > to
> present a list to the Panamanians and assess their willingness to > address
> the issues promptly. I can say that nothing we ask should require a > change
> to the text of the agreement."
>
> Kirk was peppered with questions on topics ranging from contaminated
> drywall imports from China to U.S. potato exports to Mexico to dairy
> imports from New Zealand, as well as a plan by a Japanese government-> owned
> firm to offer new insurance products. He was asked repeatedly about > issues
> related to China's currency devaluation, by Stabenow, Sen. Charles > Schumer,
> D-N.Y., and others, which each time he punted to the Treasury > Department as
> the proper arbiter.
>
> He was also asked repeatedly by Sens. John (Jay) Rockefeller, D-> W.Va., and
> Mike Crapo, R-Idaho, about efforts to reinstate the "Byrd > amendment," which
> distributed anti-dumping subsidies to affected U.S. firms until its > repeal
> a few years ago.
>
> Named for Sen. Robert Byrd, D-W.Va., the law was ruled illegal by the
> World Trade Organization, and major exporting industries have been > lobbying
> vigorously against renewed efforts to bring it back.
>
> Kirk was noncommittal, saying only USTR would study the matter in
> consultation with the Commerce Department. Kirk also told senators > the USTR
> would "take appropriate steps to protect our rights" in light of the
> European Union's decision Thursday to slap anti-dumping duties on U.S.
> biodiesel exports.
>
> In response to questions from several GOP senators about his unpaid > back
> taxes, Kirk said he sent amended returns to the IRS along with checks
> totaling $7,785 on March 5.
>
> While awaiting confirmation by the full Senate, Kirk is beginning to > fill
> out his staff roster. On Thursday, Obama announced he would nominate
> Baucus' top trade counsel, Demetrios Marantis, to be deputy trade
> representative. Previously, Obama tapped House Ways and Means Chairman
> Charles Rangel's top trade staffer, Tim Reif, to be general counsel at
> USTR, which does not require confirmation.
>
>
> http://www.nationaljournal.com/congressdai...090313_6589.php
>
> -----
> ENVIRONMENT: CANTWELL IS BLAZING OWN CLIMATE TRAIL
> By Darren Goode
>
>
> Sen. Maria Cantwell, D-Wash., was often labeled as a top deputy for > Senate
> Majority Leader Reid on energy in the 110th Congress, including major
> legislation upping fuel-efficiency requirements. While she might > fill that
> role again, she is staking out some independent ground from Reid on > major
> energy and climate change bills.
>
> President Obama and congressional Democratic leaders want to create a
> market-based cap-and-trade program to reduce heat-trapping > greenhouse gas
> pollutants. Cantwell, though, is in the early stages of drafting a
> "cap-and-refund" plan that eschews using a carbon market to battle > global
> warming. "I'm not really interested in a bill that's about people > trading
> things," she said this week. "I just think the chances of > manipulation in
> that market is so great."
>
> Cantwell has long been skeptical of energy markets. She helped lead > the
> Senate last Congress in going after potential fraud and manipulation > in oil
> and gas markets.
>
> Her climate bill also underscores that many Democrats understand > they have
> to sell such a plan in a recession by returning revenue to consumers > to
> offset likely hikes in utility bills.
>
> Sounding much like a "cap-and-dividend" bill Rep. Chris Van Hollen, > D-Md.,
> has introduced, Cantwell's idea is to distribute revenue monthly to > all
> Americans without it being filtered through government programs.
>
> Obama's budget blueprint attempted a variation of this by directing > more
> than $500 billion in cap-and-trade revenue starting in 2012 toward his
> "Making Work Pay" tax credit.
>
> Others -- including House Democratic Caucus Chairman John Larson of
> Connecticut -- are proposing a direct tax on industrial carbon > emissions
> and offsetting passed-down costs to consumers through payroll rebates.
>
> Another Washington Democrat -- Rep. Jim McDermott -- is working on a
> middle ground between cap-and-trade and a carbon tax. McDermott, > chairman
> of the Ways and Means Income Security Subcommittee, said Wednesday > the idea
> is based on a fixed cap and price on emissions.
>
> A cap-and-trade plan, he says, handles the former goal and a carbon > tax
> the latter but neither does both. "What I'm trying to do with my > bill is
> thread the needle," McDermott said, adding, "We're trying to find > the best
> way to ease the burden of the people at the bottom."
>
> Reid is considering using the filibuster-proof budget reconciliation
> process to move climate change legislation despite a chorus of > disapproval.
> "I wouldn't put all my chips on that number," Cantwell cautioned. > "I'm not
> saying it couldn't be used [but] I'm just saying that I would want > to have
> a backup plan."
>
> Reid reaffirmed Thursday he wants to package energy and climate change
> bills before lawmakers leave for the August recess.
>
> But Cantwell -- who chairs the Energy and Natural Resources Energy
> Subcommittee -- is siding with Energy and Natural Resources Chairman > Jeff
> Bingaman in preferring to move energy legislation first. "I think > the more
> you get done on energy, the more you can be bolder" on climate > change, she
> said. Further, "We ought to be passing energy legislation every year > that
> we can get consensus on ... and not hold it hostage as we have in > previous
> years to other pieces of legislation," Cantwell said. "And I think > that's
> the political philosophy that we need to adopt. There's so much here > to do.
> It's a major transition."
>
> This transition is highlighted, she said, by efforts to pursue > distributed
> generation -- based on the premise of energy stemming from many small
> sources instead of being centralized among larger sources -- which > Cantwell
> likened to the evolution of mainframe computers to desktops. "It's > going to
> give consumers better choices," and reduce costs in the long term, she
> said. She called it the biggest thing to happen to energy policy in
> "probably a hundred years. It's huge." This includes putting more > renewable
> energy sources -- such as hydropower in her home state -- on existing
> transmission lines.
>
>
> http://www.nationaljournal.com/congressdai...090313_1098.php
>
> -----
> BUDGET: BLUE DOGS WILL PRESENT GUIDELINES TO SPRATT NEXT WEEK
> By Humberto Sanchez
>
>
> The Blue Dog Coalition plans next week to present its budget > guidelines to
> Budget Chairman John Spratt, hoping to influence the budget > resolution.
>
> "We still, as a group, are trying to figure out what our guidelines > will
> be," Rep. Allen Boyd, D-Fla., a Blue Dog leader and senior member of > the
> Budget Committee, said Thursday. "We will be ready to send those to > Mr.
> Spratt sometime next week. We are having discussions with him about > how
> that would work."
>
> Boyd, who did not provide details, is chairman of the Blue Dogs > Budget and
> Financial Services task force, which was announced Thursday.
>
> House Democratic leaders have said they hope to pass a budget > resolution
> the week of March 30. Boyd's comments come after he and other > members of
> the House and Senate Budget committees met with President Obama > Wednesday.
>
> "It was a good meeting," Boyd said. Many lawmakers, both Democrats and
> Republicans, have been critical of a proposal in Obama's budget > outline
> that would limit itemized deductions for people who make more than > $250,000
> a year, including deductions for contributions for charities and > mortgage
> interest.
>
> Obama "is required by law to present a budget. That doesn't mean > that we
> will agree with every part of it. He has made it clear he > understands what
> the legislature's role is and he wants to work with us and he > expects us to
> write legislation on these issues. It doesn't have to be exactly > what he
> proposed," Boyd said.
>
> Boyd conceded some Blue Dogs have concerns about the cap-and-trade > program
> for carbon emissions in Obama's budget. The proceeds would be used > to fund
> Obama's signature "Making Work Pay" tax credit.
>
> "There are some parts of his cap-and-trade proposal that are > troublesome
> and we discussed those," Boyd said. "A lot of that has to [do with] > the tax
> portion of it and how you use the money and whether it is a transfer > of
> wealth from one part of the country to another and the nexus between > whom
> you tax and what the money is used for."
>
> Senate Budget Chairman Kent Conrad, who also attended the meeting, > agreed
> that Obama expects changes to his budget.
>
> Obama "made a very forceful case for his position, but he > understands to
> get the votes [needed to pass a budget resolution], we are going to > have to
> make changes and he understands that," Conrad said. "All of us are > going to
> have to be flexible and work together."
>
> One issue that was not discussed at the meeting, Conrad said, was > the use
> of reconciliation to help pass either climate change or healthcare
> legislation. Reconciliation is not subject to a filibuster. Senate > leaders
> and the White House have said it is an option.
>
> Conrad said he was confident about getting a budget resolution > through the
> Senate.
>
> "I was asked if I have the votes at this time," Conrad said of the
> meeting. "No, we don't, but that is not unusual. We never do at this > time.
> It is early in the process."
>
> Conrad stressed the importance of passing a budget resolution, which > in
> the Senate provides appropriators with the ability to require 60 > votes on
> amendments that spend more than the resolution permits. "Otherwise the
> spending would really run amok around here if we didn't have those," > Conrad
> said.
>
>
> http://www.nationaljournal.com/congressdai...090313_9085.php
>
> -----
> HOUSE RACES: DEMS DECRY TRACKING TACTICS; REPUBLICANS CALL IT WHINING
> By Erin McPike
>
>
> As House Democrats work to preserve their majority and House > Republicans
> try to steal it, Democrats are growing increasingly concerned about > how
> aggressive the GOP has gotten - and that's just the way the > Republicans
> want it.
>
> At issue are "trackers," volunteers who question and videotape > lawmakers
> in public places in search of the next "Macaca" moment. Both parties > have
> used trackers in the past, but the best-known moment came in 2006 when
> University of Virginia student S.R. Sidarth videotaped then-Sen. > George
> Allen, R-Va., calling him "Macaca." The episode helped cost Allen > his seat.
>
> During the 2008 presidential campaign, trackers were hoping to catch > an
> opponent unraveling but were largely using the videotapes to > determine what
> the opposition campaign might try next.
>
> But this year, a more assertive National Republican Campaign > Committee has
> taken the tactic a step further, with in-your-face interviews - some
> critics call them confrontations - that have left some Democrats
> complaining and others saying they will return fire.
>
> Democratic Congressional Campaign Committee Chairman Chris Van > Hollen of
> Maryland has warned party freshmen and sophomores of the NRCC's > practice,
> which some Democrats are calling "guerilla tactics." Among the > complaints
> are that trackers aren't identifying themselves, are misrepresenting
> themselves as reporters and are catching lawmakers off guard.
>
> But one politician's nasty practices are another's freedom of > expression
> and seeking to hold elected officials accountable.
>
> "The Democrats sound like a bunch of whiny babies who don't like to > have
> their picture taken," NRCC spokesman Ken Spain said. "Welcome to the
> modern-day world of campaign politics where if you're not tracking > your
> opponent's steps and missteps then you are operating in the Stone > Age. If
> they are so rattled by being asked tough questions then we are happy > to
> assist them in making their stays in D.C. shorter than they had > originally
> anticipated."
>
> The interactions between GOP trackers and three Democratic lawmakers -
> Reps. Chris Carney of Pennsylvania, Joe Courtney of Connecticut and > Dina
> Titus of Nevada - are viewable on the NRCC's YouTube page. All were
> approached outside the Capitol and were questioned about the stimulus
> legislation.
>
> Courtney tried to ignore the tracker at first, but when asked if he > had
> read the bill, Courtney replied, "Yes, I have." Meanwhile, Carney, > when
> pushed about a provision relating to sexually transmitted diseases > and was
> asked if he was ready to vote the next day, Carney said, "Like I > told you
> before, if I see the damn package then I'll have an answer."
>
> Titus suggested to a tracker that she had read the bill. "All 1,000
> pages?" the tracker asked. "It's a long one, but we've been talking > about
> it for a long time," Titus said, again not saying directly that she > had
> read the entire bill.
>
> Titus said she cut the interview short when questions about the "Harry
> Reid train" and a project involving mice made her realize the > interrogator
> had an agenda.
>
> "There's little they won't do," Titus said. She added that Republicans
> shouldn't use such tactics "as a matter of courtesy."
>
> In general, Democrats say they're accustomed to having trackers follow
> them on the trail without interference, but the new GOP approach is
> crossing the line. "Using new technology to attack each other like > this is
> not conducive to making public policy and lacks decorum," said Rep. > Dennis
> Cardoza, D-Calif., who previously supervised the DCCC's incumbent-> retention
> efforts.
>
> DCCC spokeswoman Jenn Crider explained that her committee is > aggressive
> and reserves the right to track however it chooses. "There is no > committee
> that holds Republican candidates more accountable than the DCCC. We > track
> them here in D.C., and in their districts to highlight their > hypocrisy and
> 'just say no' politics," she said.
>
> In fact, the DCCC was proud of what was called an "aggressive tracking
> operation" in the last cycle. The committee, sometimes in > conjunction with
> state parties, employed at least 50 trackers for its competitive > races.
> Democratic trackers were especially active in the races against GOP > Rep.
> Sam Graves of Missouri and state Rep. Jon Elrod, who lost to now-> Rep. Andre
> Carson, D-Ind. Elrod was filmed sitting at his desk on the state House
> floor, signing campaign thank-you notes. That violated ethics rules > and he
> was compelled to apologize.
>
>
> http://www.nationaljournal.com/congressdai...090313_3004.php
>
> -----
> ENVIRONMENT: DEMS MIGHT DEVISE STRATEGY TO PASS LANDS BILL BY MAJORITY
> By Darren Goode
>
>
> House Democrats are working on a strategy to pass a package of public
> lands, water and natural resources bills that would require only > majority
> support and no amendments, key lawmakers said Thursday.
>
> Democratic leaders fell two votes shy Wednesday of the two-thirds > support
> needed to expedite the package of 166 bills under suspension of House
> rules, which does not allow for amendments.
>
> The idea now would be to have the Senate use another bill as the > vehicle
> for the package before sending it back to the House. The House then > would
> vote to concur with the Senate amendment, which does not require > allowing
> Republicans the chance to offer a substitute. This could be done to > require
> either majority support or two-thirds support under suspension of > House
> rules.
>
> It echoes what happened last year when the Senate used a mental health
> parity bill as the vehicle to pass a financial services rescue > package and
> a tax extenders plan.
>
> House Majority Leader Hoyer said Thursday the lands package might come
> back up under either suspension or a rule. He called it a "very good"
> package that might have the support of two-thirds of voting > lawmakers if
> brought up again.
>
> But according to House Natural Resources National Parks Subcommittee
> Chairman Raul Grijalva, D-Ariz., Democrats are likely to seek only > majority
> support and not allow amendments.
>
> Natural Resources ranking member Doc Hastings is also expecting that.
> "It's exactly the same thing," he said.
>
> A House GOP aide predicted Senate Majority Leader Reid would likely > take a
> bill from Rep. Rush Holt, D-N.J., protecting Revolutionary War > battlefields
> that passed in the omnibus spending bill and replace its contents > with the
> lands package.
>
> A Reid spokeswoman said this was a possibility. Reid Thursday filed a
> cloture motion on the package, which will ripen Monday.
>
> A similar version of the package overcame a filibuster in January. > It was
> delayed for months by Sen. Tom Coburn, R-Okla., who said it contained
> frivolous spending.
>
> House Democrats this week modified that Senate package by adding > language
> from Rep. Jason Altmire, D-Pa., clarifying it would not block hunting,
> fishing, trapping and other recreational activities.
>
> Grijalva dismissed GOP critics who complain that the package should be
> open to multiple amendments. "The issue now is not embrace, > streamline and
> make the legislation better. It is to stop it," Grijalva said. "It's > had
> its fair hearing, it's had regular order." Supporters of the package > say 73
> of the 166 bills were previously passed by the House and another 20 > were
> reviewed in committee.
>
> The package got 282 votes in the House -- including 34 Republicans > and all
> but three Democrats -- more than a majority.
>
> Republicans say 19 of the bills would block energy production, > including a
> House-passed bill that designates the Taunton River in Massachusetts > as
> part of the National Park Service's Wild and Scenic River program.
> Republicans said it would kill a proposed liquefied natural gas > facility
> along the river.
>
>
> http://www.nationaljournal.com/congressdai...090313_6882.php
>
> -----
> HEALTH: KEY PLAYERS NOTICE THEY WEREN'T ON OBAMA SUMMIT LIST
> By Anna Edney
>
>
> A trio of key healthcare players, the pharmacy, pharmacy benefit > manager
> and generic drug lobbies, did not make the cut last week to score an > invite
> to President Obama's healthcare summit, with some taking the > omission with
> a grain of salt and others let down over the perceived slight.
>
> Some pharmacists, who point out pharmacy is the third-largest sector > of
> the health industry behind medicine and nursing, particularly want a > better
> seat at the table.
>
> "It just seemed like they left out some of the key groups while they
> seemed to have some duplication in the type of groups that were > represented
> there, and it just struck us as odd," a representative with the > pharmacy
> industry said Thursday.
>
> For example, the Pharmaceutical Research and Manufacturers of > America and
> one of its members, Pfizer, were invited. Eight union groups and > several
> physician groups attended. America's Health Insurance Plans and the > trade
> group for a bloc of its member companies, the Blue Cross-Blue Shield
> Association, also made the list.
>
> And some groups came away with a double win, racking up an invite to > both
> the president's fiscal summit a week earlier and the health summit. > Those
> groups included the American Medical Association, the American > Hospital
> Association, the American Nurses Association and the Service Employees
> International Union.
>
> "We're disappointed, because we're very [eager] to work with the
> administration," the pharmacy industry source said.
>
> The American Pharmacists Association cautioned a few days after the > summit
> that excluding pharmacists will leave holes in attempts to improve the
> nation's medicine use.
>
> "Not taking medications properly costs our nation close to $2 > billion ...
> a year in preventable medication-related errors," John Gans, APhA's > CEO
> said in a statement. "It would be unfortunate to look in the rear-view
> mirror a few months from now to see that we missed an opportunity that
> directly impacts the health of hundreds of thousands of patients and > our
> economic stability."
>
> White House spokesman Reid Cherlin said the administration could not
> accommodate all the interest it received in the summit but will work > with
> each sector concerned to decrease cost and expand coverage.
>
> Mark Merritt, CEO of the Pharmaceutical Care Management Association, > the
> trade group for pharmacy benefit managers, said his industry of
> prescription drug plan administrators is not stung they were not in > the
> room.
>
> "We're less concerned with process than we are with offering real
> solutions that work," Merritt said. "This town is a buffet of > meetings and
> receptions and whatever else, but where the rubber hits the road is, > 'Do
> you have a solution where people save money and care is improved?' "
>
> Merritt said PCMA is promoting savings in the prescription drug > industry
> at the Capitol and among the administration and is comfortable with > his
> group's level of involvement. A spokeswoman for the National > Association of
> Chain Drug Stores also said the group feels engaged, as does the > Generic
> Pharmaceutical Association, said its CEO, Kathleen Jaeger.
>
>
> http://www.nationaljournal.com/congressdai...090313_2339.php
>
> -----
> TAXES: GRASSLEY, WATCHDOGS ARGUE FOR MORE DISCLOSURE ON 'MTB'
> By Peter Cohn
>
>
> After a high-profile fight over earmarks in the omnibus appropriations
> bill, another front in that battle is shaping up to be a huge > package of
> tariff breaks on imported goods being cobbled together by the House > Ways
> and Means Committee.
>
> Senate Finance ranking member Charles Grassley wants to add the name > of
> each lobbyist or individual proponent to the hundreds of individual > tariff
> and duty suspensions Congress might consider, often of benefit to a > single
> company. "Since President Obama says he opposes earmarks and wants > more
> transparency surrounding them, he and his congressional allies should
> support full transparency, including lobbyist disclosure, in the
> miscellaneous tariff bill process," an aide explained.
>
> The measure ran out of gas last year when the Finance Committee > expressed
> little interest in moving forward. There is an added urgency now, > however,
> as many of the 817 tariff bills introduced in the 110th Congress in > the
> House would extend duty relief that either already expired or will > on Dec.
> 31.
>
> More than 100 House members introduced bills of benefit to numerous
> struggling companies in industries ranging from chemicals to textiles,
> including firms like Ford Motor Co. and DuPont Co. Under the "MTB" > process,
> backers must prove a product is no longer made in the United States > and
> thus has no domestic competition, subject to thorough review by the
> International Trade Commission. Individual bills must cost the > government
> no more than $500,000 each.
>
> "As we move forward in the 111th Congress, we must urge the Ways and > Means
> Committee to make the duty suspension process a priority," Reps. Ellen
> Tauscher, D-Calif., and Howard Coble, R-N.C., write in a "Dear > Colleague"
> they are circulating for signatures. "At a time of global financial > crisis,
> U.S. companies -- employers and employees -- need the MTB to help > sustain
> production levels and jobs here in America. It is in the best > interests of
> the American people to expeditiously complete the MTB." Ways and Means
> Trade Subcommittee Chairman Sander Levin, D-Mich., said the measure > is on
> the panel's agenda but did not give a timetable. A spokesman for > Senate
> Finance Chairman Max Baucus said he was "currently working with Sen.
> Grassley on how best to approach the MTB."
>
> One lobbyist disputed the notion that tariff breaks are earmarks, > and said
> the current process is "a million times more transparent" than
> appropriations projects. Each lawmaker is required to submit stand-> alone
> legislation bearing their name, and the ITC follows up with a report > on
> whom the provision would benefit, how much it costs, and if there is > any
> opposition from other companies. A Ways and Means aide said there > are no
> plans for added transparency rules.
>
> Bill Allison, a senior fellow with the Sunlight Foundation, a > government
> watchdog group, said although the tariff measures are more > transparent than
> appropriations, more can be done. "The frustrating thing is, you > still have
> to wait to see who the beneficiary is, and you have to wait until > the final
> bill and the ITC does its report, and then you've got to cross-> reference
> that data ... it's made for some bleary-eyed nights," he said.
>
> Allison, who put together a database of all 817 tariff bills > introduced in
> the House in the 110th Congress, praised Grassley's effort. "There's > no
> reason not to disclose this all at once and up front and make it > easy for
> people to find it," he said.
>
> According to Allison's database, Tauscher introduced 47 individual > tariff
> suspension bills, for example. Many of them were sought by Santa > Clara,
> Calif.-based Applied Materials Inc., and Walnut Creek, Calif.-based
> pesticide maker Valent U.S.A. Corp.
>
> She also wants to lower duties on imported oysters and sardines. Coble
> introduced 49 bills, on behalf of companies like Ciba Specialty > Chemicals,
> Syngenta Crop Protection Inc., and local textile firms.
>
> There is interest brewing in the Senate as well, based on questions
> submitted to Trade Representative-designate Ron Kirk from Finance > Committee
> members during his confirmation process. Sen. John Kerry, D-Mass., > asked
> about lowering tariffs on materials used in making golf clubs, as > under
> present law it is cheaper to import a finished club from overseas.
>
> Kerry co-sponsored a bill with California lawmakers in 2007 to lower > the
> tariff on imported driver heads, on behalf of Fairhaven, Mass.-based
> Acushnet Co. The clubs are assembled at the firm's Carlsbad, Calif.,
> facility.
>
> There are also some more sweeping proposals affecting broad swaths > of the
> retail industry. Footwear makers and distributors are pressing > Congress to
> eliminate the shoe tariff, which they call a punitive tax on lower-> income
> consumers.
>
> That effort fell flat during stimulus talks, but Sens. John Ensign,
> R-Nev., and Thomas Carper, D-Del., raised the footwear issue with > Kirk,
> arguing the tariff falls most heavily on the cheapest shoes -- as > high as
> 67 percent -- while expensive leather footwear has a lower tariff. > But Kirk
> hinted that proposal could have broader trade implications, telling > the
> senators that the Doha Round of multilateral talks is "the most > appropriate
> venue for considering" any reduction or elimination of footwear > tariffs. It
> would also be expensive -- about $800 million a year, according to > the ITC.
>
> The United States Association of Importers of Textiles and Apparel > has a
> similar argument to end tariffs on other clothing. "It would benefit
> retailers and consumers, particularly consumers at the lower end of > the
> market," said Laura Jones, the group's executive director. "If you're
> buying silk shirts, the tariff is 2 percent, but on other items,
> particularly man-made fiber and wool, it's 30 percent. The average > tariff
> on apparel is 14.5 percent ... it would be a huge tax cut for > consumers."
>
> As for the Doha argument, Jones argued that round has been ongoing > since
> 2001. "There are proposals to lower tariffs in the Doha Round, but > at the
> moment that doesn't look like its going anywhere," she said. "And in > this
> economy, it makes a lot of sense."
>
>
> http://www.nationaljournal.com/congressdai...090313_2786.php
>
> -----
> HOUSING: SENATE DEMS COURT CREDIT UNIONS ON BANKRUPTCY MEASURE
> By Bill Swindell
>
>
> In a bid to help passage, Senate Democrats are courting credit > unions to
> endorse legislation that would grant a bankruptcy judge the power to > modify
> home mortgages, including reducing principal.
>
> Senate Democrats are viewing the credit unions as an easier get than > banks
> and are dangling a sweetener in front of the Credit Union National
> Association and the National Association of Federal Credit Unions: a > bill
> to lift the ceiling on business loans credit unions can make. But that
> isn't enough to get them on board.
>
> In their public comments, credit unions have shown more flexibility > than
> banks on the bill that would allow borrowers to have their mortgages
> restructured through a Chapter 13 filing, just like consumer debt > such as
> second homes, autos and boats.
>
> "For our members, it's a toxic issue. But we also want to be engaged > in
> the [housing] crisis," said Ryan Donovan, vice president of > legislative
> affairs for CUNA. "We all have a responsibility to reduce > foreclosures."
>
> Contrast that with the statement of Jamie Dimon, CEO of JPMorgan > Chase &
> Co., who expressed his opposition to the bill Wednesday at the U.S. > Chamber
> of Commerce: "We do think it could cause another whole new round of
> problems in the capital markets." Despite strong opposition from the
> banking industry, the House voted 234-191 to approve the measure > March 5.
> Proponents say it would help stem foreclosures by forcing lenders to > modify
> their loans under threat of having a judge reduce the principal of > the loan
> to market value. Lenders argued the measure would bring more > uncertainty to
> the mortgage market and result in higher interest rates.
>
> Credit union lobbyists have been in contact with Senate Majority Whip
> Durbin, sponsor of the Senate version, and Sen. Charles Schumer, D-> N.Y. The
> two need help because at least 11 Democrats have major concerns, > according
> to one banking lobbyist, and Senate GOP leaders feel confident about
> stopping the measure.
>
> Democrats have offered to combine a Schumer bill that would > eliminate the
> cap that restricts credit union lending to small businesses at 12.25
> percent of their total assets coupled with the bankruptcy bill, > according
> to a Schumer aide.
>
> The offer was rejected, according a lobbyist, because credit unions > would
> like to see the bankruptcy option restricted to only subprime and > risky
> loans known as "Alt-A." Durbin spokesman Max Gleischman said his > boss met
> Wednesday with CUNA President Dan Mica, but "noth%C4%B1ng was > offered. No
> deals were offered." He could not comment on Schumer's talks but said
> Democrats are in contact with a number of institutions. So far > Citigroup
> Inc. is the only one to endorse the House bill, which would limit the
> bankruptcy option to only existing loans and require borrowers to > contact
> their lender 30 days before a bankruptcy filing.
>
> The bankruptcy bill has been referred to the Senate Banking Committee,
> where Banking Chairman Christopher Dodd said he would like to move it
> within weeks.
>
> Donovan said CUNA thought it was close to a deal with Durbin in the > 110th
> Congress on limiting the bankruptcy option to subprime and Alt-A > loans.
> NAFCU endorsed a 2007 House bill that contained similar > restrictions. But
> proponents have said the bankruptcy option should be available to > all loans
> given the housing downturn.
>
> Moderate House Democrats added language to the bill to require > judges to
> consider whether homeowners were offered a "qualified" loan workout > similar
> to that proposed by the Obama administration, which would lower > interest
> rates for up to 9 million borrowers and set their monthly payments > to 31
> percent of their income.
>
> But the banking industry has asked for more, specifically language
> requiring a judge to place borrowers into the Obama plan or something
> similar if they qualified, and exclude them from a principal > reduction.
> That stance appears to be the banks' firm line.
>
> -- with Dan Friedman contributing
>
>
> http://www.nationaljournal.com/congressdai...090313_7432.php
>
> -----
> GOVERNMENT OPERATIONS: PARTISAN SPAT HAS ISSA, TOWNS TRYING TO HIT THE
> RIGHT NOTES
> By Carrie Dann
>
>
> The initial chorus of bipartisan harmony from the House's principal
> oversight panel hit a discordant note Thursday, when its lead > Republican
> accused Democrats of being tone deaf to one alleged case of perjury > while
> aggressively pursuing another.
>
> The blast was sounded by House Oversight and Government Reform ranking
> member Darrell Issa, after Chairman Edolphus Towns announced a new
> investigation of allegations that Merrill Lynch executives lied to the
> committee last year. Earlier this week, New York Attorney General > Andrew
> Cuomo accused Merrill Lynch of misleading Congress in November by > saying it
> would pay out over $5 billion in executive bonuses at the end of the > year
> when it decided to award the money earlier.
>
> Within hours of Towns' announcement of the committee probe, Issa > fired off
> a news release accusing the chairman of "a double standard on pursuing
> allegations of perjury and obstruction."
>
> Issa has accused former Fannie Mae CEO Franklin Raines of giving false
> testimony to the committee in December by saying he was unaware that > he
> received preferential treatment on a loan from Countrywide > Financial. On
> Thursday, Issa asserted that his Democratic colleagues are looking > out for
> their own by shielding Raines from the same scrutiny that will be > applied
> to Merrill Lynch.
>
> "This committee, unfortunately, applies one standard in deciding > whether
> or not to investigate a prominent, wealthy and politically connected
> Democrat like Franklin Raines and another to those who aren't," Issa > said
> in his release.
>
> Towns reacted quickly to attempt to defuse the situation, responding > in an
> interview that he does not object to Issa's call for scrutiny of > Raines and
> is open to dispatching attorneys to investigate the matter.
>
> "If [Issa is] requesting it, I don't have a problem with it at all," > Towns
> said.
>
> The exchange between Issa and Towns exposed what sources called a
> behind-the-scenes partisan spat between the committee's majority and
> minority staffs. Republicans have accused Democrats of dragging > their feet
> on a Raines inquiry, noting that Towns' aides did not support a > March 6
> letter requesting further documentation on Countrywide's so-called > Friends
> of Angelo VIP loan program, which charged below-market interest rates.
>
> Democratic aides said they have been looking into the Raines matter > and
> countered that Republicans have been more interested in scoring > political
> points in public than coordinating a bipartisan inquiry.
>
> Towns, known for his even-tempered style, shrugged off Issa's partisan
> shot as a holdover from the committee's rancorous past.
>
> "They're so used to fighting around here," he said. "When they have a
> member who wants to work in a bipartisan fashion, it just takes a > little
> while to get there."
>
>
> http://www.nationaljournal.com/congressdai...090313_6650.php
>
> -----
> WHITE HOUSE: CAN CONGRESS KEEP UP?
> By George E. Condon Jr.
>
>
> House Minority Whip Cantor has lots of suggestions for President > Obama,
> almost all of which the president has ignored. But amid all the > advice from
> someone who does not exactly have the Democratic president's best > interests
> at heart is one suggestion Obama might want to take seriously.
>
> When Cantor spoke at a recent fundraising breakfast in Richmond, > Va., he
> struck close to what many in Congress fear is the truth -- that the
> president is overloading the legislative circuits by trying to do > too much
> too fast on too many issues.
>
> The White House vigorously rejects the criticism. But after recent > days in
> which the president seemed to be veering by the hour from economic > recovery
> to stem cells, from education to gender equality, from earmark > reform to
> health care, from energy to regulations, it is worth discussing.
>
> And that's what the president himself did when he addressed the > Hispanic
> Chamber of Commerce Tuesday. "I know there's some who believe we can > only
> handle one challenge at a time," he said. In self-defense, he cited
> Presidents Abraham Lincoln, Franklin Roosevelt and John Kennedy and > their
> abilities to multitask in times of crisis. "We don't have the luxury > of
> choosing between getting our economy moving now and rebuilding it > over the
> long term," he concluded.
>
> But that defense has two key points: whether Congress can handle > such a
> heavy load and whether voters increasingly terrified about their own > jobs
> and savings will remain patient with an administration that might not
> always appear to be focused on the economy.
>
> One person vouching for Obama's strategy is Thomas Mann of the > Brookings
> Institution. If anyone is aware of the failings of Congress it is > Mann,
> whose latest book -- co-authored with Norman Ornstein -- refers to > Congress
> as "the broken branch." But Mann thinks Obama will win his bet that
> Congress can handle both short-term and long-term issues. "There is no
> alternative," Mann argues.
>
> Mann concedes the White House might have "an appearance problem" > because
> the president is seen talking about so many topics. "There is this > sense
> that his eyes have drifted from the financial rescue and the broader
> economic crisis," he said. "But they know what their highest > priority is.
> It is dealing with a recession that could lead to a depression. ... > They
> know that and that's still their number one, two and three > priorities."
>
> Marist College pollster Lee Miringoff said Obama is so far retaining
> public support.
>
> "People want something done so the idea that he looks like he is doing
> things is really important," he said. "He also said he is going to > change
> Washington so if the message comes out that he is putting Congress on
> legislative overload, I don't think that's a bad message."
>
> But Miringoff said Obama will suffer if he seems distracted from the
> economy. "If the economy doesn't get better in three years, he's > going to
> have a real problem."
>
> The bigger burden, though, is on Congress to produce.
>
> "Can that institution rise to the occasion? Probably not," said > Miringoff.
> In that, he gets reluctant agreement from one of the most thoughtful
> experts on Congress -- former Rep. Lee Hamilton, D-Ind., director of > the
> Center on Congress at Indiana University.
>
> Hamilton thinks much of the debate in recent days has missed the > point.
> Too much has been focused on whether Obama is right that the nation > needs
> to solve long-term problems like health care, education and > entitlements.
>
> No one disputes that these contribute to economic instability. > Instead,
> analysts need to focus on the ability of Congress to deal with > everything
> the president is pumping into the legislative pipeline.
>
> "The agenda is formidable. I am not sure I can remember anything quite
> like it," said Hamilton, who fondly recalls the last time a new > president
> made so many demands of Congress. It was his first term in the > House, in
> 1965, and the president was Lyndon Johnson.
>
> "There is a big difference," Hamilton said. "In the Great Society, > Johnson
> presented very specific legislation -- Medicare, Medicaid, the > elementary
> and secondary education act -- that had really been debated. The
> legislation was sent to the Hill in quite specific form." But that > is not
> what Obama has done.
>
> "He has these major issues -- energy, health care, education - and > set out
> principles and, in effect, asked the Congress to do the drafting of > the
> legislation. That is a huge difference," said Hamilton. "Today the > Congress
> is a very different institution and I think the initiatives that > Obama has
> put forward represent an extraordinary, even historic, challenge to > the
> Congress." The question, he said, "is whether they can do it. And I > think
> the game is in doubt. It represents as great a challenge to the > leadership
> in the Congress as any I can recall."
>
> Hamilton said he fears Congress might be forced to take shortcuts,
> following the omnibus approach and "throwing everything into a single
> package or two or three packages. That approach undercuts > accountability
> and transparency and deliberation and all the virtues of the regular
> order."
>
> The stakes for Congress and the president are sky-high. Obama has > gone too
> far to start trimming his agenda. But if he belatedly learns he has > asked
> too much of Congress -- because he failed to make the tough choices > that
> are the essence of governing -- then, as Hamilton concluded, "his
> presidency will be dealt a body blow."
>
>
> http://www.nationaljournal.com/congressdai...090313_6512.php
>
> -----
> PEOPLE: PEOPLE
> By Winter Casey
>
>
> SERVICES SECTOR. The Centers for Medicare and Medicaid Services is
> bringing on two Capitol Hill veterans in senior positions. Jonathan > Blum, a
> former adviser for Senate Finance Chairman Max Baucus, has been named
> director of the Center for Medicare Management and acting director > of the
> Center for Drug and Health Plan Choice. He is leaving Avalere > Health, where
> he was a vice president and director of the Medicaid practice. Blum > was
> also a program examiner for OMB and a health adviser for the Obama
> transition team. In addition, Amy Hall, a senior aide for former House
> Energy and Commerce Chairman John Dingell, D-Mich., has been named > director
> of the Office of Legislation.
>
> YOU RANG? Steve Bell, chief of staff for former Sen. Pete Domenici,
> R-N.M., is joining the Bipartisan Policy Center as a visiting scholar,
> working on energy and fiscal policy. Domenici, a former chairman and
> ranking member for the Senate Energy and Natural Resources > Committee, is
> working at the center as a senior fellow, focused on energy and
> transportation policy.
>
> HAIL, CHIEF. Republican National Committee Chairman Michael Steele has
> named Ken McKay to be the RNC's chief of staff. McKay previously > managed
> Rhode Island GOP Gov. Don Carcieri's 2002 and 2006 gubernatorial > wins in
> the heavily Democratic state and also worked as Carcieri's chief of > staff.
> McKay most recently served as a partner with the law firm Brown > Rudnick.
>
> BEAN THERE. Lauren Bean is the new communications director for Rep.
> Michael Burgess, R-Texas. Bean, who got her start as a press > assistant for
> Burgess, later worked as a deputy press secretary for Sen. John > Cornyn,
> R-Texas, before returning to work for Burgess' office.
>
> Have a tip for CongressDailyAM's People column? Call 202-739-8400 or > send
> an e-mail to people@nationaljournal.com.
>
>
> http://www.nationaljournal.com/congressdai...090313_3799.php
>
> -----
> HILL BRIEFS: CHOICE FOR IRAQ AMBASSADOR CRITICIZED BY GOP SENATORS
>
> At least three Republican senators have said that President Obama > should
> reconsider his choice for the next U.S. ambassador to Iraq, dimming > the
> chances that veteran diplomat Christopher Hill could be confirmed.
>
> Sens. John McCain of Arizona, Lindsey Graham of South Carolina and Sam
> Brownback of Kansas said they were disappointed with Hill's > appointment,
> announced Wednesday by the White House. All three senators cited a > lack of
> experience in the Middle East to explain their opposition to Hill.
>
> During the Bush administration, Hill led nuclear disarmament talks > with
> North Korea. While considered a seasoned negotiator, Hill was > regarded by
> many Republicans as too willing to make concessions to try to prod
> Pyongyang to give up its nuclear weapons.
>
> If confirmed, Hill would replace Ryan Crocker as America's top > diplomat in
> Baghdad.
>
>
> http://www.nationaljournal.com/congressdai...090313_1042.php
>
> -----
> HILL BRIEFS: REP. OLSON HAS HEART SURGERY AFTER FAINTING IN HOUSE GYM
>
> Freshman Rep. Pete Olson, R-Texas, underwent emergency surgery > Thursday to
> have a cardiac pacemaker installed, the Houston Chronicle reported.
>
> Olson, 46, had the procedure after a slow heart rate caused him to > faint
> while lifting weights in the House gym. "It happened so fast that > when it's
> over you're kind of going, 'Wow!'" Olson said by telephone from George
> Washington University Hospital.
>
> Olson said White House Chief of Staff Emanuel, who was exercising with
> members of Congress at 6:20 a.m. Thursday, was the first person to > reach
> him. Rep. Jerry Moran, R-Kan., also helped, Olson said.
>
>
> http://www.nationaljournal.com/congressdai...090313_1089.php
>
> -----
> HILL BRIEFS: REPUBLICAN SENATORS PLAN TO MONITOR STIMULUS SPENDING
>
> Senate Republicans announced Thursday they will form an unofficial > group
> to track spending from the $780 billion stimulus package.
>
> Senate Republican Conference Chairman Lamar Alexander of Tennessee > said
> Republican Conference Vice Chairman John Thune of South Dakota and > Senate
> Homeland Security and Governmental Affairs Oversight Subcommittee > ranking
> member George Voinovich of Ohio will head up the GOP group.
>
> Voinovich said that while all but three Republican senators voted > against
> the stimulus, they want the money "spent the way it's supposed to be
> spent." Alexander said the Republican Conference will likely hold > hearings
> on stimulus spending similar to those it had last year on offshore > oil and
> gas drilling.
>
> The Republicans would not have subpoena power to compel testimony, but
> Voinovich said they would take steps such as asking OMB to study > whether
> federal agencies that get a sharp, temporary increase in funds under > the
> stimulus have the capacity to manage the money.
>
>
> http://www.nationaljournal.com/congressdai...090313_2904.php
>
> -----
> HILL BRIEFS: FIVE GOP REPS. WANT MORE REVIEW OF PATENT REFORM
>
> Five Republican members of the House Judiciary Committee wrote to > Chairman
> John Conyers and ranking member Lamar Smith on Wednesday urging them > to
> ensure legislation they introduced to overhaul the U.S. patent > system gets
> a thorough vetting by the panel.
>
> GOP Reps. Louie Gohmert and Ted Poe of Texas; Jim Jordan of Ohio; > Steve
> King of Iowa and Trent Franks of Arizona signed the letter. They voted
> against a similar measure that passed the House in 2007. "In > addition to
> its substantive shortcomings, one of the reasons the previous > legislation
> attracted so much opposition was due to the less than comprehensive > vetting
> it received," they wrote.
>
> The new bill should be the focus of hearings where industries that > will be
> affected can be heard, they said. A companion measure introduced by > Senate
> Judiciary Chairman Patrick Leahy and Sen. Orrin Hatch, R-Utah, was the
> focus of a Tuesday hearing, and the bill has been placed on the > committee's
> calendar for mark up next week. Under committee rules, any item > appearing
> on the agenda for the first time can be subject to a one-week hold.
>
>
> http://www.nationaljournal.com/congressdai...090313_3238.php
>
> -----
> HILL BRIEFS: ARGENTINA '01 BOND DEFAULTS STILL RILING RANCHERS, OTHERS
>
> Farm and ranch groups are joining with the owners of bonds on which > the
> government of Argentina defaulted in 2001 to urge Congress to take a > hard
> line in dealings with the South American nation.
>
> The American Task Force Argentina, composed of bondholder > representatives
> including U.S. pension funds, has been fighting for years to force
> Argentina to comply with U.S. court rulings that it owes money to
> Americans.
>
> But this week members of the U.S. Cattlemen's Association hav

[Snuffysmith]

> CongressDaily PM for Monday, March 16, 2009
>
> --------------------
> CONTENTS
>
> FINANCE: EFFORTS CONTINUE TO REACH DEAL ON CRAM-DOWN LEGISLATION
> By Bill Swindell
>
>
> Senate staff, lenders and consumer groups will meet this afternoon > to seek
> a deal on legislation to allow bankruptcy judges to modify the terms > of a
> primary mortgage, including reducing the principal. Senate Banking > Chairman
> Christopher Dodd and Majority Whip Durbin are trying to determine > whether
> they can get a deal on legislation letting borrowers have their > mortgages
> restructured through a Chapter 13 filing, just like other consumer > debt
> such as second homes, autos and boats. On one side are proponents > fighting
> against any weakening of the Durbin bill, noting that the principal
> reduction, also known as the "cram-down," is the only stick to get > lenders
> to modify mortgages. Sen. Charles Schumer, D-N.Y., has offered > sweeteners
> to get credit unions and banks on board by combining the bill with pet
> bills their lobbying groups want. One lobbyist indicated another offer
> could be made at the meeting to try to get the support of industry, > which
> currently has enough backers in the Senate to stop the bill. "It's all
> squishy. They [proponents] are systematically testing the fences," > said the
> source.
>
> So far, the inducements have been rejected by the lenders, who instead
> want to restrict eligibility to the program. The American Bankers
> Association, the Credit Union National Association and > representatives from
> JPMorgan Chase & Co. were slated to attend, according to another > source.
> The other side is a group of moderates led by Sen. Evan Bayh, D-> Ind., which
> wants to narrow the measure that is adamantly opposed by the lending
> industry. Industry officials say it would lead to higher interest > rates
> because it would bring more uncertainty into the marketplace. > Sponsors need
> to get all Democrats on board as well as Judiciary ranking member > Arlen
> Specter. One source indicated that Bayh has a delicate balancing act
> because a few Democrats, such as Sens. Ben Nelson of Nebraska and Jon
> Tester of Montana, are reluctant to vote for the bill, while Specter > feuded
> with Durbin last year over the issue.
>
> A deal could emerge over using the template of a new Obama plan to > lower
> interest rates for up to 9 million borrowers through inducments to > lenders
> and changes within Fannie Mae and Freddie Mac policies. A House-> passed bill
> would require judges to consider whether homeowners were offered a
> "qualified" loan workout similar to the Obama plan. The lending > industry
> wants to mandate that borrowers eligible for the Obama plan could not
> receive a cram-down. In contrast, consumer groups are adamant that > if a
> borrower cannot qualify for the Obama plan, they will automatically be
> eligible for principal reduction. An earlier plan floated by the
> Bayh-Specter working group, according to a source, would not > establish such
> a condition and would allow a lender in bankruptcy court to provide an
> interest rate cut or lengthen the term of the loan in lieu of the
> cram-down. "That's sort of gumming up the works," said the source. > Schumer
> said today he would not allow the bill to be limited to risky loans.
> "Limiting this bill to subprime and other exotic mortgages would > reduce the
> bill's effectiveness by up to 50 percent. We want to find a > compromise that
> can gain support, but we will not water down this proposal for the > sake of
> picking up a few additional votes," he said.
>
>
> http://www.nationaljournal.com/congressdai...090316_2999.php
>
> -----
> HEALTH: MEDPAC TO EXAMINE PRICING, SAFETY ISSUES WITH BIOLOGICS
> By Anna Edney
>
>
> The Medicare Payment Advisory Commission has waded into generic > biologic
> legislation as it starts to examine the effect the low-cost > medications
> could have on Medicare. The top six drugs covered under Medicare > Part B are
> biologics that account for $7 billion, or 43 percent, of all Part B
> spending, MedPac's Kim Neuman said late last week. MedPAC plans to > examine
> next month the effects that generic, or follow-on, biologics will > have on
> Part D, Medicare's prescription drug benefit. Current law governing > generic
> drug approval under FDA does not include a path for the agency to > approve
> generic versions of biologic drugs, which are more complex than > traditional
> chemical drugs, also called small-molecule drugs. They were not > commonplace
> when Congress passed the 1984 law that created the generic industry. > CBO
> estimates that follow-on biologics, also called biosimilars, would > save the
> federal government $9 billion over 10 years.
>
> Some of those savings, Neuman said, might depend on how Medicare > bills for
> follow-ons. Currently, generic and brand versions of small molecule > drugs
> are placed in the same billing code where they receive the same > payment
> rate to foster the most competition. "Given some of the safety > issues with
> biologics ... there may be reasons why financial incentives for the > use of
> the lower-priced product may not be clinically appropriate in all
> instances," Neuman said. While many small molecule generic drugs are
> considered interchangeable with their brand counterparts, meaning a > patient
> can take either one without harm, some experts question whether > follow-ons
> can be treated the same given the complexity of the living organisms > from
> which they are derived. Options to allow for the same billing code > include
> leaving the decision up to an advisory commission or FDA, possibly > based on
> the agency's determination of interchangeability, Neuman said. > MedPAC plans
> to issue a report in June that will include a chapter that delves > further
> into key issues on follow-ons, likely including billing.
>
>
> http://www.nationaljournal.com/congressdai...090316_2410.php
>
> -----
> FINANCE: OBAMA: GOVERNMENT TO SEEK REVERSAL OF AIG BONUSES
>
> American International Group executives are not entitled to $165 > million
> in bonuses approved last year, President Obama said today, and vowed > that
> the government would "pursue every legal avenue to block" them. > Obama noted
> that AIG has received $170 billion in rescue funds from the Federal > Reserve
> and that he has asked Treasury Secretary Geithner "to use that > leverage" in
> pushing AIG to cancel the payments. "It's hard to understand how > derivative
> traders at AIG warranted any bonuses, much less $165 million in > extra pay,"
> Obama said at the start of a White House event to announce help for > small
> businesses. "How do they justify this outrage to the taxpayers who are
> keeping the company afloat?" AIG reported this month that it lost > $61.7
> billion in the fourth quarter last year, a situation Obama said > resulted
> from "recklessness and greed" on the company's part.
>
> Lawmakers also joined in the criticism. "These people may have a > right to
> their bonuses; they don't have a right to their jobs forever," House
> Financial Services Chairman Barney Frank said on NBC's "Today" show. > "It
> does appear to me we're rewarding incompetence. Forget about the legal
> matter here for a second. These bonuses are going to people who > screwed
> this thing up enormously, who made terrible decisions." Because the > federal
> government essentially owns AIG after the bailout, Frank said "maybe > it's
> time to fire some people. We can't keep them from getting their > bonuses,
> but we can keep some of them from continuing in their jobs." The ax, > he
> added, should fall from the top down and "probably" include AIG > Chairman
> and CEO Edward Liddy. "You know, we keep getting bad surprises. Mr. > Liddy's
> been there for a while," he said. "My first contact with Mr. Liddy > was when
> he called me last year to see if he could enlist me in renegotiating > the
> terms under which he got money from the Federal Reserve to make it > easier.
> I refused to get involved in that. And yes, I think the -- the time > has
> come for the federal government to put some people in charge. We > need to
> examine whether we can get some of these bonuses back."
>
> On ABC's "Good Morning America," Senate Banking ranking member Richard
> Shelby took a similar stand. "You're rewarding failure," Shelby > said. "A
> lot of these people should be fired, not awarded a bonus. Think > about that.
> This is horrible. It's outrageous." Rep. Elijah Cummings, D-Md., a > member
> of the Joint Economic Committee, noted that in Liddy's letter to > Geithner,
> he said he could not do anything legally to stop or reduce the 2008 > bonuses
> but might be able to reduce bonuses for this year by 30 percent. > "What he's
> basically saying is there are going to be more bonuses coming," > Cummings
> said. "And we've got to stop that, and Geithner can do that."
>
>
> http://www.nationaljournal.com/congressdai...090316_2461.php
>
> -----
> TAXES: STUDY STRESSES MULTINATIONALS' DOMESTIC INVESTMENT
> By Peter Cohn
>
>
> A coalition of U.S. multinational corporations today released a report
> claiming that the global firms are focused on investing at home and
> employing American workers, contrary to the notion they would prefer > to
> "ship jobs overseas." The report, commissioned by the Business > Roundtable
> and U.S. Council for International Business, finds that as of 2006 > there
> were 2,278 multinationals headquartered in the United States, > accounting
> for nearly 25 percent of all U.S. economic activity and employing 70
> percent of their workers domestically. "The idea that U.S. > multinationals
> have somehow 'abandoned' the United States is not supported by the > facts,"
> states author Matthew Slaughter, professor of international > economics at
> Dartmouth College's Tuck School of Business.
>
> The report was released as the business community prepares to do > battle
> with the Obama administration and congressional Democrats over > proposals to
> eliminate or sharply curtail "deferral" of tax on overseas income, > which
> has been a staple of the U.S. tax code for decades. Under deferral, > U.S.
> companies are not taxed on income earned and reinvested overseas > until it
> is brought home, which firms argue is necessary to keep them > competitive
> with foreign-based firms in overseas markets. Some of the biggest U.S.
> multinationals are aggressively competing abroad, and have billions of
> dollars in profits overseas to prove it.
>
> Examples are General Electric Co., which had $75 billion invested > overseas
> at the end of last year, and Pfizer Inc., with $63.1 billion, > according to
> SEC filings. IBM CEO Samuel Palmisano, whose firm had $21.9 billion > abroad,
> pressed President Obama on the subject at a meeting last Thursday > organized
> by the Business Roundtable. Obama included a $210 billion revenue-> raising
> section of his budget to come from unspecified international tax > reforms,
> including of the deferral regime, which would help the president > meet his
> stated target of cutting the deficit in half. But the business > community
> will not go along with those and other corporate tax proposals unless
> accompanied by a significant reduction in the top corporate income > tax rate
> of 35 percent.
>
> The report issued today states that U.S. multinationals in 2006 > employed
> 21.7 million workers domestically. Of the $5.8 trillion in materials
> purchased for assembly into finished products, nearly 90 percent was
> purchased from other U.S. companies, the report said. In terms of > worldwide
> capital investment in new property, plants and equipment, > multinationals
> spent $442.6 billion in 2006, or 74.3 percent of worldwide capital
> investment, in the United States. As for research and development, > 86.8
> percent of worldwide R&D funds were spent at home. While the U.S.
> experienced a net loss of 1.6 million manufacturing jobs from > 2000-2006,
> multinationals' foreign affiliates gained 128,300 manufacturing > jobs, while
> retail and service-sector jobs experienced most of the growth > overseas.
> "The bottom line is that U.S. multinational companies strengthen the
> American economy through a combination of their domestic activity > and their
> international engagement," Slaughter's report states.
>
>
> http://www.nationaljournal.com/congressdai...090316_3292.php
>
> -----
> AGRICULTURE: WHITE HOUSE RECEIVES NFU, GETS ADVICE ON AG PAYMENTS ...
>
> National Farmers Union leaders told Obama administration officials > at a
> White House meeting that the group opposes any plans to cut farm > program
> spending in the budget, incoming NFU President Roger Johnson told
> CongressDaily today. "We delivered a clear message that the farm > bill was a
> long process, that at the end of the day [the farm bill] was > bipartisan and
> supported overwhelmingly, that it was passed over two vetoes, and that
> having to reopen the farm bill is a nonstarter in the ag community,"
> Johnson said. He said the group urged the White House to support > raising
> the percentage of ethanol allowed in the nation's gasoline from 10 > percent
> to 15 percent or 20 percent. Last week's meeting with the
> Democratic-leaning NFU, a 250,000-member organization of small > farmers, was
> the first White House event with a major farm group, Shin Inouye, a > White
> House spokesman confirmed today. "America's farmers play a vital > role in
> our economy and President Obama is committed to helping family > farmers and
> strengthening rural America. We look forward to working with NFU and > others
> to address the important issues facing the nation," Inouye said. > Johnson
> said the White House invited him as well as outgoing NFU President > Tom Buis
> and the presidents of 17 NFU chapters as their Washington convention > ended,
> and that they had the opportunity to present all the resolutions the > group
> passed.
>
> NFU has not been enthusiastic about the administration's plan to > phase out
> direct payments to farmers with more than $500,000 in sales. The NFU
> maintains that if the direct payments are cut, the money should be > used for
> other farm safety-net programs. Last week, it joined 38 other farm > groups,
> including the American Farm Bureau Federation, to urge Congress to > preserve
> direct payments and other parts of the farm program. Buis said the > meeting
> was run by Michael Strautmanis, the chief of staff to Valerie > Jarrett, an
> Obama senior adviser who oversees the White House Office of Public > Liaison
> and Intergovernmental Affairs. Others who were present, according to > Buis,
> were Deputy Chief of Staff Jim Messina and representatives from OMB, > EPA,
> and the Energy and Interior departments. The USDA official who > attended was
> David Lazarus, a personal assistant to Agriculture Secretary Vilsack > who
> previously worked for Senate Majority Whip Durbin as well as the Obama
> campaign. Officials asked for "clarifying" statements from NFU but > did not
> try to convince them to accept the president's farm budget cuts, > according
> to Johnson. Senate Budget Chairman Kent Conrad has said he opposes the
> proposed cuts, and the House Agriculture Committee sent the House > Budget
> Committee a letter last week stating its opposition.
>
>
> http://www.nationaljournal.com/congressdai...090316_7280.php
>
> -----
> AGRICULTURE: ... AS TOP USDA NOMINEES WARMLY RECEIVED BY GROUPS
> By Jerry Hagstrom
>
>
> Two USDA nominees are drawing praise from congressional farm > leaders, and
> farm and commodity groups. President Obama late Friday nominated James
> Miller, a former aide to Senate Budget Chairman Kent Conrad and > current
> chief of staff for the National Farmers Union, to be Agriculture
> undersecretary for farm and foreign agricultural services. Obama also
> nominated Dallas Tonsager, a member of the Farm Credit Administration
> board, to be undersecretary for rural development. Both positions > require
> Senate confirmation. Senate Agriculture Chairman Tom Harkin today > praised
> them for their "extensive knowledge of agriculture policy and strong
> experience" and urged the White House to forward the nominations > quickly.
> Senate Agriculture ranking member Saxby Chambliss said Miller's vast
> knowledge of agriculture policy and work on the 2008 farm bill will > make
> him an invaluable asset at USDA. Chambliss declined to comment on > Tonsager
> because he has not met with him.
>
> Miller's appointment is likely to reassure general farm and commodity
> group leaders, who have been concerned by the Obama plans to phase out
> direct payments to farmers with more than $500,000 in sales per > year, cut
> crop insurance subsidies, and end government promotion of branded > products.
> As undersecretary, Miller would be in charge of the Farm Service > Agency,
> which distributes farm subsidies; the Risk Management Agency, which > handles
> crop insurance; and the Foreign Agricultural Services, which > promotes the
> sale of U.S. products overseas, analyzes production in foreign > countries
> and advises the Agriculture secretary on trade policy. Conrad praised
> Miller today, saying in a release that he played a central role as a
> staffer during congressional talks last year in making sure the farm > bill
> was completely paid for.
>
> Tonsager, who co-chaired the pro-Obama private sector effort in his
> campaign, would run the division that oversees the Rural Utilities > Service
> and the housing and business loan programs. That has traditionally > been a
> backwater at USDA, but it may gain more attention because its
> responsibilities include carrying out the administration's > commitment to
> bring high-speed Internet service to unserved sections of rural > states and
> develop renewable fuels and other forms of alternative energy. > Tonsager was
> the South Dakota state director for rural development in the Clinton
> administration. Rural Votes, a Democratic-leaning group that played > a role
> in the Obama campaign, Saturday called Tonsager "a great choice."
>
>
> http://www.nationaljournal.com/congressdai...090316_8863.php
>
> -----
> JUDICIARY: ARCHIVES OFFICIALS URGE CAUTION ON DECLASSIFICATION POLICY
> By Andrew Noyes
>
>
> A forthcoming executive order from President Obama on > declassification of
> government information will probably revert to the Clinton > administration's
> policies rather than overhaul the practices under former President > George
> W. Bush, a National Archives and Records Administration official said
> today. Speaking at a conference kicking off Sunshine Week, NARA > Information
> Security Oversight Office Director William Bosanko said if Obama truly
> wants to reverse his predecessor's "policy of secrecy," he could > follow
> through on his campaign pledge to create a National Declassification > Center
> as a starting point. Bosanko added that an executive announcment may > be
> "imminent."
>
> Steven Garfinkel, who ran NARA's information security office for > more than
> 20 years, said the Obama administration might be following former > President
> Jimmy Carter's approach in its wish to "change things radically." > Former
> President Richard Nixon instituted a 30-year automatic > declassification
> order, which Carter changed to six years. Garfinkel warned that every
> classification executive order issued since Nixon has proven > problematic
> for a variety of reasons, and he urged Obama officials to move > carefully.
> "Our system of classifying and declassifying information, while > rightly
> criticized, is still a model throughout the world," Garfinkel said. > Bosanko
> took a similar line, arguing that overclassification is never going > to go
> away. Legislation to address that concern -- by altering the > "controlled
> unclassified information" designation created by Bush in 2008 -- > passed the
> House last month and awaits Senate action. The category was created to
> cover most information previously referred to as sensitive but
> unclassified.
>
> Speakers also addressed how to overhaul the Freedom of Information > Act.
> Senate Judiciary Chairman Patrick Leahy said he, along with Sen. John
> Cornyn, R-Texas, will reintroduce a bill this week requiring > Congress to
> explicitly state its intention when writing statutory FOIA > exemptions into
> new legislation. FOIA "is the power cord that connects the American > people
> to their government," said Leahy. "The growing use of legislation to > carve
> out new exemptions to FOIA poses a danger to the ideals of open
> government." Leahy added that Attorney General Holder will release > new FOIA
> guidance for federal agencies "in the very near future." Justice > Department
> officials did not respond to inquiries about that announcement by
> presstime, but speakers at the conference said they expect a statement
> later this week. The senator also lauded the inclusion of $1 million > to
> fund a first-ever NARA ombudsman to mediate FOIA disputes in the FY09
> omnibus spending bill. Legislation that he and Cornyn introduced last
> Congress authorized the creation of the new office.
>
>
> http://www.nationaljournal.com/congressdai...090316_4883.php
>
> -----
> SENATE RACES: DAVIS VOWS TO HELP BUNNING, BUT CHANDLER MAY CHALLENGE
> By Patrick Crowley
>
>
> HEBRON, Ky. -- As he continues to battle through concerns about his
> re-election campaign, Sen. Jim Bunning, R-Ky., this weekend picked > up the
> support of one House member but a potential challenge from another. > At a
> GOP dinner Saturday night outside of Cincinnati in Bunning's home > base of
> northern Kentucky, GOP Rep. Geoff Davis endorsed Bunning, who > previously
> held Davis' 4th District seat. "I'm going to stand for him ... > regardless
> who his opponents may be," said Davis, who gave a speech praising > Bunning
> as a mentor and a conservative deserving of a third term. Davis' > comments
> came even as some top Republicans -- including Senate Minority Leader
> McConnell -- are not embracing Bunning's candidacy. There are concerns
> within the party that Bunning is not raising the money necessary to > defend
> a seat he barely won in 2004 and 1998. His year-end campaign finance > report
> showed just $150,000 in the bank, a paltry sum considering Bunning > himself
> has said the race would cost $10 million or more.
>
> But Davis told a crowd of more than 300 Republicans here that he > plans to
> aggressively campaign and raise money for Bunning. And he told them to
> dismiss rumors that they shouldn't contribute to Bunning's campaign > because
> he can't win. "If you've heard this myth going around about don't > give to
> him because we're not so sure, I'm going to tell you something: > Double down
> in your pockets and give to him because this congressman is going to > be
> raising one helluva lot of money to make sure [Bunning] stays in the > Senate
> if that's what he chooses to do," he said. Though Davis is with > Bunning,
> other Republicans are not. Kentucky state Senate President David > Williams
> has said he may challenge Bunning in the May 2010 primary. Earlier > in the
> week Williams told reporters that Bunning was in "cahoots" with GOP
> Secretary of State Trey Grayson, who has said he will run if Bunning
> retires but will not challenge him in a primary. He dismissed > Williams'
> accusation. "No one is cahoots," Grayson said in an interview. "Jim > Bunning
> and I are friends, we are close, but he's running for re-election > and I'm
> supporting him." If Bunning does not run, other Republicans who > might enter
> the race include Rand Paul, the son of Rep. Ron Paul, R-Texas, and 1st
> District Rep. Edward Whitfield.
>
> Meanwhile, Democratic Rep. Ben Chandler, who represents Kentucky's 6th
> District in and around Lexington, said Friday he is considering > challenging
> Bunning. He made his comments after meeting with Gov. Steve Beshear.
> Beshear's lieutenant governor, Democrat Daniel Mongiardo, is already > in the
> Senate race. He lost, 51-49 percent, to Bunning in 2004. According > to the
> Associated Press, Chandler said he is being encouraged by supporters > and
> been approached by the Democratic Senatorial Campaign Committee > about a
> possible run. Chandler said he has been told he likely would be > considered
> a frontrunner if he decided to enter the race. Also considering the > race
> are Democratic state Attorney General Jack Conway and state Auditor > Crit
> Luallen.
>
>
> http://www.nationaljournal.com/congressdai...090316_7777.php
>
> -----
> HILL BRIEFS: OBAMA PLANS SMALL BUSINESS LENDING BOOST
>
> Economy. The Obama administration announced today that the 21 largest
> banks receiving government money must report monthly on how much > lending
> they do to small businesses, the Associated Press reported. All > other banks
> getting taxpayer help are being asked to report quarterly on small-> business
> loans. Even banks that are not taking government funds are being > told by
> the administration to "make an extra effort" to increase small-> business
> lending. The White House figures that making billions in federal loans
> available to small businesses was one way to address misgivings over > the
> unpopular bailout program, which has sent hundreds of billions to > large
> financial institutions. "The ability to secure a loan at affordable > terms
> often makes the difference between whether a small firm stays > afloat, grows
> and creates jobs, or shuts its doors," said House Small Business > Chairwoman
> Nydia Velazquez. "The policies put forth today will go a long way > toward
> addressing the credit shortage that small firms face."
>
>
> http://www.nationaljournal.com/congressdai...090316_7374.php
>
> -----
> HILL BRIEFS: CITING CRISIS, KING WILL NOT VOTE FOR CARD-CHECK BILL
>
> Employment. Because of the current economic crisis, Rep. Peter King,
> R-N.Y., will not support controversial card-check labor legislation > this
> year even though he co-sponsored the bill in 2007. "I was an original
> co-sponsor of the Employee Free Choice Act when it was first > introduced in
> 2003 and continued to support it and vote for it in subsequent > Congresses,"
> King said in a statement. "I do not, however, intend to support EFCA > in
> this Congress. Our country is facing its most severe economic crisis > in 75
> years." King bucked party leaders with 13 other Republicans in 2007 > when he
> voted for the bill, which passed 241-185. His New York district leans
> Democratic and has a significant labor union presence. King has been
> mentioned as a possible GOP challenger against Democratic Sen. Kirsten
> Gillibrand next year, and the business community has called the > fight over
> the Employee Free Choice Act "Armageddon." The bill, which would > make it
> easier to form a union by eliminating a company's ability to demand a
> secret ballot election, has drawn near universal opposition from > Republican
> senators. Sen. Arlen Specter of Pennsylvania was the only Republican > to
> vote to end debate on the bill when the Senate considered it in > 2007, and
> several moderate Democrats have indicated they have not decided to > support
> it this time around. Gillibrand has co-sponsored the Senate's version.
>
>
> http://www.nationaljournal.com/congressdai...090316_8861.php
>
> -----
> HILL BRIEFS: LEAHY HOPES FOR OBAMA JUDICIAL NOMINEES SOON
>
> Judiciary. Senate Judiciary Chairman Patrick Leahy hopes his committee
> will receive the first batch of judicial nominees from the Obama
> administration before lawmakers begin the spring recess early next > month.
> He said today he wants to have hearings soon after members return > and has
> urged the White House to work quickly to finalize nominations.
> Confirmations are likely to be difficult after 41 Senate Republicans > wrote
> to President Obama this month threatening to filibuster if they do not
> agree with his choices. They described selecting judges as a "shared
> constitutional responsibility" and recommended that Obama renominate > three
> of former President George W. Bush's failed nominees: Peter Keisler, > Glen
> Conrad and Paul Diamond. If Obama and Senate Democrats do not get GOP
> senators' blessing for the nominees in their home states, "the > Republican
> Conference will be unable to support moving forward on that > nominee," the
> letter said.
>
>
> http://www.nationaljournal.com/congressdai...090316_7724.php
>
> -----
> POLITICAL ROUNDUP: PALIN TO HEADLINE GOP DINNER
>
> National. Gov. Sarah Palin of Alaska will headline the June 8 Senate-> House
> Dinner to raise money for the National Republican Senatorial > Committee and
> the National Republican Congressional Committee, committee leaders
> announced today. In a joint statement, NRSC Chairman John Cornyn and > NRCC
> Chairman Pete Sessions, both of Texas, cited Palin's ability to help
> rebuild the Republican Party as the primary reason for choosing her.
>
>
> http://www.nationaljournal.com/congressdai...090316_6304.php
>
> -----
> POLITICAL ROUNDUP: SIMMONS TO CHALLENGE DODD IN 2010
>
> Connecticut. Senate Banking Chairman Christopher Dodd, already facing
> sagging approval ratings due to the financial crisis, will face a
> re-election challenge in 2010 from former Republican Rep. Rob > Simmons. "The
> family had a long meeting today and was unanimous that I run, so I am
> running," Simmons told the Associated Press over the weekend. > Simmons, who
> once worked at the CIA, served three terms in the House before a > narrow
> loss to now-Rep. Joe Courtney, a Democrat, in 2006. GOP state Sen. Sam
> Caligiuri and CNBC host Larry Kudlow, a Republican, also have been
> mentioned as possible candidates.
>
>
> http://www.nationaljournal.com/congressdai...090316_4630.php
>
> -----
> POLITICAL ROUNDUP: SHEA-PORTER PASSES ON SENATE RUN
>
> New Hampshire. Democratic Rep. Carol Shea-Porter announced today she > will
> not run for the seat GOP Sen. Judd Gregg will vacate in 2010, the
> Associated Press reported. The second-term lawmaker had considered > running
> for the seat, but she said she has decided against it and that she > enjoys
> her work in the House. Democratic Rep. Paul Hodes already has > announced his
> bid for the Senate seat. Republicans are said to be waiting for a > decision
> from former GOP Sen. John Sununu, who lost his Senate seat in > November and
> has not said whether he will run again.
>
>
> http://www.nationaljournal.com/congressdai...090316_5583.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "If they were in high school, they wouldn't have gotten retention, > they
> would have gotten detention."
>
> -- House Financial Services Chairman Barney Frank commenting today on
> NBC's "Today Show" on the millions in retention bonuses that American
> International Group paid out after receiving bailout loans from the > Federal
> Reserve.
>
>
> http://www.nationaljournal.com/congressdai...090316_3629.php

[Snuffysmith]

> CongressDaily PM for Tuesday, March 17, 2009
>
> --------------------
> CONTENTS
>
> TAXES: DEMS REACH FOR TAX CODE TO RECOVER AIG BONUSES ...
> By Peter Cohn, with Erin McPike and Dan Friedman contributing
>
>
> Senate Democrats today said they might slap a 91 percent excise tax > on the
> $165 million in bonus payments by bailed-out insurer American > International
> Group if the firm does not reconsider. "We insist that you immediately
> renegotiate these contracts in order to recoup these payments and > make the
> American taxpayer whole," states a letter to AIG Chairman and CEO > Edward
> Liddy that senators are planning to send today. "We stand ready to > take the
> difficult, but necessary step of working to enact legislation that > would
> allow the government to recoup these bonus payments, perhaps by > imposing a
> steep tax -- as high as 91 percent -- that will have the effect of
> recovering nearly all of the bonuses that have been paid out since AIG
> turned to taxpayers for help." Senate Majority Leader Reid and > Democratic
> Conference Vice Chairman Charles Schumer of New York were among the 10
> signers on the letter by presstime, and they were in the process of
> rounding up more. "For those of you getting the bonuses, be > forewarned you
> will not be getting to keep them," said Schumer.
>
> At a hearing today, Finance Chairman Max Baucus said he was readying a
> bill to impose the excise tax, backed by Finance ranking member > Charles
> Grassley. "I am looking very closely at tax options that will > reclaim these
> outrageous bonuses at AIG," Baucus said. "The country is angry. I am > angry.
> Four and a half million Americans have lost their jobs. And these > people
> are getting multimillion-dollar bonuses. It is totally unfair." > Grassley
> made the point that the legislation establishing the $700 billion > financial
> services bailout package contained loopholes enabling excessive > bonuses
> that need to be examined. House Democratic leaders have not revealed > their
> legislative approach, but Rep. Gary Peters, D-Mich., introduced a > bill that
> would impose a 60 percent excise tax on bonuses over $10,000 paid by > any
> company in which the government has a 79 percent or greater stake. > AIG is
> the only company that meets that criterion. Reps. Steve Israel and > Carolyn
> Maloney, both D-N.Y., introduced separate bills to tax the bonuses > at 100
> percent. "If we can't kill the bonuses; we'll tax the bonuses," Israel
> said.
>
> House Majority Leader Hoyer joined Reid in asking that the bonuses be
> returned, and noted the House passed legislation in February to > preclude
> companies from giving bonuses of this kind if they receive money > from the
> government. "I would hope that the Senate would pass that > legislation," he
> said. While also condemning the bonuses, Republicans suggested the > Obama
> administration should have kept a better watch on things. Senate > Minority
> Leader McConnell noted President Obama's pledge Monday to recover the
> bonuses. "It would have been better if this pledge included action two
> weeks ago when the Treasury agreed to give AIG another $30 billion in
> taxpayer money," he said. And House Minority Leader Boehner noted > that "two
> weeks ago, the president's spokesman said that they were confident > that
> they knew how every dime was being spent at AIG. Well clearly, they > didn't
> know what they were talking about."
>
>
> http://www.nationaljournal.com/congressdai...090317_4351.php
>
> -----
> TAXES: ... AS CUOMO LETTER DETAILS BONUSES OF UP TO $6.4M
>
> New York Attorney General Andrew Cuomo today said his office has
> identified one individual at AIG who received a bonus of $6.4 million,
> while the top seven recipients got more than $4 million each. In a > letter
> to House Financial Services Chairman Barney Frank, Cuomo urged the
> committee to raise those facts and question the legal basis for > paying the
> bonuses when AIG CEO Edward Liddy testifies before the committee > Wednesday.
> "AIG now claims that it had no choice but to pay these sums because > of the
> unalterable terms of the plan. However, had the federal government not
> bailed out AIG with these billions in taxpayer funds, the firm > likely would
> have gone bankrupt, and surely no payments would have been made," > Cuomo
> wrote. "It is not at all clear that these [AIG] lawyers even > considered the
> argument that it is only by the grace of American taxpayers that > members of
> Financial Products [an AIG division] even have jobs, let alone a > pool of
> retention bonus money." Cuomo also questioned why AIG had been able to
> negotiate salaries of $1 per year with employees who got the bonuses > but
> was not able to stop the bonuses. "The fact that AIG engaged in this
> negotiation flies in the face of AIG's assertion that it had no > choice but
> to make these lavish multimillion-dollar bonus payments," he said.
>
> Frank renewed his suggestion that the federal government consider > taking
> over the firm's leadership. "I think the time has come to act as the > owner
> and then look at whether ... some changes ought to be made," Frank > said. "I
> do think asserting our rights to ownership strengthens the legal > case. I
> think we should be suing to get those bonuses back not as the > government
> that gave money to this private entity, but as the owner, saying, > 'You know
> what, you got bonuses that you didn't deserve.'" Liddy is slated to > testify
> in front of the House Financial Services Capital Markets Subcommittee
> Wednesday, and will meet with members this afternoon in advance of his
> testimony.
>
>
> http://www.nationaljournal.com/congressdai...090317_6348.php
>
> -----
> TAXES: IRS' SHULMAN OUTLINES RELIEF FOR MADOFF FRAUD VICTIMS
> By Peter Cohn
>
>
> Commissioner Douglas Shulman today said the IRS would allow victims of
> convicted financier Bernard Madoff to immediately deduct almost all of
> their losses. "Beyond the toll in human suffering -- as entire life > savings
> and retirements appear to have been wiped out -- the Madoff case > raises
> numerous tax and pension implications for the victims," Shulman told > the
> Senate Finance Committee at a hearing. Democratic Sens. Charles > Schumer of
> New York, Robert Menendez of New Jersey and Maria Cantwell of > Washington
> requested the hearing, noting that many defrauded constituents did not
> understand their rights under the tax code. Shulman said victims of > Madoff
> and similar frauds could treat their losses as theft, not capital > losses,
> including "phantom" gains on non-existent securities transactions in > prior
> years. Shulman also said 95 percent of losses would be deductible in > the
> year they are discovered, even if the taxpayer's reasonable chance of
> recovery of lost funds is uncertain. The remaining 5 percent could be
> deducted later, once the loss had been confirmed. If eventually > recovered,
> the funds would be subject to tax.
>
> Some lawmakers want victims to be able to go back at least three > years to
> amend returns that show tax payments on phantom profits, but the IRS > ruling
> does not address that. Still, they applauded the guidance. "I am very
> pleased that the IRS has decided that in each area in which there > was a
> major dispute, the IRS today sides with the victims," Schumer said. > "This
> means that victims will not owe taxes on income that they never > received.
> Victims will receive the most lenient tax treatment in a simple and
> straightforward way." Finance ranking member Charles Grassley argued > that
> more must be done to ensure that charitable organizations, such as > those
> that lost billions of dollars with Madoff, are adequately policed so > they
> do not make similar mistakes in the future. William Josephson, a > former New
> York state assistant attorney general, suggested increasing to more > than
> $20,000 the maximum excise tax liability for charitable fund managers.
>
> The hearing also focused on offshore tax compliance. Senate Finance
> Chairman Max Baucus is preparing to introduce a bill that would > require
> greater disclosure of funds transferred to overseas accounts, as > well as
> bigger penalties for noncompliance with U.S. tax laws. Shulman said > the
> Obama administration was looking carefully at that and other > proposals and
> would be "taking aggressive action" in the coming months on > international
> tax enforcement. He said he shares the Justice Department's interest > in
> obtaining the names of secret Swiss bank account-holders at UBS, for
> example. Sen. Olympia Snowe, R-Maine, noted that American > International
> Group has parked $2.5 billion of the $170 billion received in > government
> aid in UBS coffers. "It's inconceivable to me that the Treasury > Department
> didn't look at these cash flows," she said. "It doesn't make sense, > and
> frankly it's preposterous."
>
>
> http://www.nationaljournal.com/congressdai...090317_4153.php
>
> -----
> FINANCE: HOUSE COMMITTEE SKEPTICAL OF MAKING FED SUPER-REGULATOR
> By Bill Swindell
>
>
> A House panel expressed skepticism today over a proposal to make the
> Federal Reserve the top regulator of systemic risk to the financial > system,
> fearing that the central bank would be too willing to bail out > companies as
> it has done with American International Group, Citigroup Inc. and Bear
> Stearns. The idea of the Fed as a super-regulator has been floated > as one
> way to ensure that one firm's failure does not imperil the nation's
> financial system. But House Financial Services Committee members > from both
> parties threw some cold water on that idea today amid growing populist
> anger over the Fed's huge loans to at-risk firms since September and > fury
> about AIG paying out executive bonuses. Such lending does not require
> congressional approval.
>
> "Before we agree on the creation of a systemic risk regulator or > observer,
> we need to agree on one important precondition. This so-called > systemic
> risk regulator should not have the power to commit or obligate > billions or
> hundreds of billions of taxpayer dollars to bailing out the so-called
> 'too-big-to-fail' institutions. If it does, I cannot support it," said
> House Financial Services ranking member Spencer Bachus. Rep. Brad > Sherman,
> D-Calif., said he was concerned the Fed as a super-regulator would too
> readily use its emergency lending powers to help rescue a firm to > avoid
> criticism for not acting quickly enough to stave off a collapse. "I > think
> we need to divorce the rescue authority from the regulatory > authority or a
> regulator may do a rescue in order to cover up the fact that their
> regulatory authority was not used all that prudently," said Sherman, > one of
> the toughest bailout critics in Congress. Such comments will make it > even
> more difficult for House Financial Services Chairman Barney Frank to > follow
> through on his plans to write legislation by early May that would > create a
> systemic-risk regulator to help provide more stability to economy.
>
> Treasury Secretary Geithner will testify in front of the panel March > 26,
> when he is expected to detail the administration's plan. While the > Fed has
> come under criticism for its lending practices, it is considered the > most
> likely candidate to be a systemic-risk regulator given its reach > over the
> economy. Lawmakers also could opt to create a new agency, although > some top
> members view that as an unlikely route given the massive wrangling > needed
> to establish such a regulator from scratch. Moreover, conservatives > are
> warning that the result of the banking and housing crises was not a > lack of
> regulation, but that the agencies were not doing their jobs. > Progressives
> also have some worries over the creation of a new regulator. Damon > Silver,
> associate general counsel of AFL-CIO, said a systemic-risk regulator > should
> not be given such broad authority that it could overrule or > interfere with
> the ground-level agency responsible for consumer and investor > protection
> over banks, insurance companies, hedge funds and other entities. "If > you
> give the systemic-risk regulator the authority to hide things, there > is a
> real danger they will use it. That will actually not protect us > against
> systemic risk," Silver said.
>
>
> http://www.nationaljournal.com/congressdai...090317_8307.php
>
> -----
> FINANCE: PANEL MULLS INSURANCE REGULATOR AS AIG ISSUES LOOM
> By Otto Kreisher
>
>
> The Senate Banking Committee and expert witnesses today differed > sharply
> on the concept of a federal regulator for the insurance industry, > which has
> been governed by the states for 135 years. Michael McRaith, Illinois
> director of insurance, who appeared on behalf of the National > Association
> of Insurance Commissioners, and several other industry representatives
> insisted states should be allowed to retain that authority. Others
> supported either a strong federal regulator or the "federal charter
> option," that would allow insurers to choose who governs them. The > deeply
> troubled financial giant American International Group became the 600-> pound
> gorilla in the room, even though it was not represented at a hearing > today
> on the need to modernize regulation of the insurance industry. While > Senate
> Banking Chairman Christopher Dodd said AIG's problems were not an
> indication of systemic industry problems, he said the importance of
> insurance to individuals and the economy, and changing conditions > suggest
> the need for "a modernized regulatory structure."
>
> Sen. Jon Tester, D-Mont., pointed out that without $170 billion in > federal
> funds, AIG would have failed "and those people would be on the > street."
> Tester said allowing firms like AIG to go broke "makes absolute > sense to
> me." And several of the witnesses challenged the administration's
> assumption that AIG was "too big to fail," making the federal bailout
> necessary. "Given that the U.S. has the world's most vibrant and
> competitive insurance market place, it is unlikely that any one > insurer is
> 'too big to fail,'" said McRaith. If an insurer were to fail, > McRaith said,
> state guaranty funds would protect existing policy holders and pay > claims.
> Although Senate Banking ranking member Richard Shelby said the high-> risk
> activities that led to AIG's crisis indicated the need for more > federal
> regulation of insurance companies, industry representatives at the > hearing
> emphasized that AIG's insurance operations remain financially sound, > as
> does the industry as a whole. The insurance industry representatives
> emphasized that it was AIG's involvement in unregulated financial
> instruments such as credit default swaps that put it on the verge of
> collapse.
>
> Committee members from both parties attacked AIG's recent announcement
> that it had paid $165 million in bonuses to executives of the sector > that
> had put the conglomerate in need of a $170 billion federal bailout. > Dodd
> demanded to know what the administration was doing about AIG's > "outrageous"
> behavior and offered any help it might need to recover the > taxpayers' money
> used for the bonuses. "AIG is a unique institution in the financial
> services world and an anomaly in the insurance industry," said Spencer
> Houldin, who represented the Independent Insurance Agents and > Brokers of
> America. Only one-third of AIG's subsidiaries are insurance-related > and the
> crisis was created by the London-based Financial Products division, he
> noted. It was executives in that division who received the huge > bonuses,
> which AIG's top officials said were required by their contracts and
> necessary to retain top talent.
>
>
> http://www.nationaljournal.com/congressdai...090317_1630.php
>
> -----
> BUDGET: OBAMA PUSHES FOR QUICK ACTION ON FY10 SPENDING PLAN
> By Humberto Sanchez and George E. Condon Jr.
>
>
> President Obama today urged Congress to pass a budget resolution that
> would let lawmakers move forward on overhauling the healthcare system,
> capping emissions of greenhouse gases and improving education. "I > see it as
> an economic blueprint for our future -- a foundation on which to > build a
> recovery that lasts," Obama said after meeting with House Budget > Chairman
> John Spratt and Senate Budget Chairman Kent Conrad. Both panels are
> expected to mark up their budget measures next week, with floor action
> anticipated for the week of March 30. The budget resolutions are > expected
> to reflect the health, energy and education initiatives included in > Obama's
> $3.55 trillion FY10 budget released last month. Obama stressed the
> proposals "are directly linked to our long-term prosperity," > including a
> reform of health care that would help "bring down the cost of > Medicare and
> Medicaid so that we can reduce our deficit in the long run."
>
> Obama's comments come after Republicans and some Democrats have raised
> concerns about the budget, citing among other items its proposal to > help
> fund healthcare reform by limiting itemized deductions on people who > earn
> more than $250,000 a year. Obama said today his critics should "be > ready
> and willing to propose constructive, alternative solutions" for > portions of
> the proposal they do not like. He also answered those who have said > he is
> taking on too much, warning that delay would "continue the same
> irresponsibility that led us to this point."
>
> Senate Majority Leader Reid today praised Obama's budget, > particularly the
> plan to develop a cap-and-trade program to reduce greenhouse gases, > which
> would provide about $150 billion over 10 years for clean-energy
> initiatives. "This budget finally takes the logical approach that all
> Americans understand: We need to reduce our consumption, and we need > to
> find new, renewable sources of clean energy that we can grow right > here at
> home, creating hundreds of thousands of good new jobs right here at > home,"
> Reid said.
>
> The cap-and-trade proposal has come under fire from Republicans. House
> Minority Leader Boehner said Monday such a plan would spur higher > energy
> costs and amount to a tax on all Americans. "It ... punishes anyone > who has
> the audacity to flip on a light switch thanks to a brand new ... > energy
> tax," he said. "This means less money in the family budget and more > jobs
> being shipped overseas." Taking a similar tack, a pro-business group > of
> more than 1,000 trade associations, corporations and advocacy groups > sent a
> letter today to lawmakers detailing how Obama's budget does not > focus on
> fixing the economy. "The ongoing financial and housing crises are the
> number one challenge to turning America's economy around," the Tax > Relief
> Coalition said in its letter. "Unfortunately, instead of focusing on > the
> nation's number one priority -- the economy -- the administration has
> announced the most sweeping expansion of government in decades." The
> coalition includes Americans for Tax Reform, the U.S. Chamber of > Commerce,
> and the National Association of Wholesaler-Distributors.
>
>
> http://www.nationaljournal.com/congressdai...090317_8144.php
>
> -----
> ENERGY: SALAZAR: ENERGY DEVELOPMENT CONTINUES ON PUBLIC LANDS
> By Darren Goode
>
>
> Interior Secretary Salazar today defended the Obama administration's
> stance on developing energy on federal lands and waters at his first
> appearance before the Senate Energy and Natural Resources Committee > since
> becoming the head of the department. Salazar responded to Energy and
> Natural Resources ranking member Lisa Murkowski and other critics > who have
> accused the administration for trying to roll back Bush administration
> attempts to expand domestic oil and natural gas production. "The > fact is
> that much of what we are still doing is continuing to develop oil > and gas
> both onshore and offshore," Salazar said. "It is very much a part of > our
> energy future." The department in the last seven weeks, he said, has > sold
> seven oil and gas leases worth $33 million in federal revenue.
>
> Salazar is traveling to New Orleans Wednesday for a lease sale > covering
> nearly 35 million acres in a section of the Gulf of Mexico opened up > in
> energy legislation signed into law in December 2007. The department is
> reviewing ways to at least partly reinstate an offshore drilling ban > that
> expired last year and may scale back oil shale development in the > West. But
> Salazar said the administration still opposes drilling in the Arctic
> National Wildlife Refuge. Murkowski has offered a new bill authorizing
> slant drilling there provided it minimizes disturbances to wildlife > and the
> environment.
>
> The Interior Department and Federal Energy Regulatory Commission > announced
> today the end of a long stalemate between the two agencies regarding
> federal oversight of offshore renewable energy projects. The two > agencies
> have signed an initial memorandum of understanding "that will allow > us to
> move forward with the siting of renewable energy facilities in the > outer
> continental shelf," Salazar told the committee. Interior would > handle wind
> projects and FERC would oversee hydropower projects, such as wave, > tidal
> and ocean current. Energy and Natural Resources Chairman Jeff > Bingaman and
> Murkowski suggested they may need to clarify this division in an > energy
> bill they are working on this month.
>
> Another memorandum of understanding between the two agencies > regarding the
> permitting and licensing of the projects is forthcoming, Salazar > said. He
> said that while the two agencies may be ready to finalize rules > proposed by
> the Bush administration for setting up offshore alternative energy
> development in a couple of months, that could be delayed several more
> months if major changes are made to them. Salazar afterward said he is
> interested in talking to Bingaman and Murkowski about including > language in
> the bill that would at a minimum examine whether solar power plants > can be
> located at Defense Department sites in Southern California, and > perhaps
> elsewhere, without compromising military missions.
>
>
> http://www.nationaljournal.com/congressdai...090317_9024.php
>
> -----
> ENVIRONMENT: REID-COBURN DEAL MAY CLEAR WAY FOR VOTE ON LANDS BILL
> By Darren Goode
>
>
> Senate Majority Leader Reid has reached an agreement with Sen. Tom > Coburn,
> R-Okla., to give him half a dozen chances to amend the omnibus bill
> containing more than 150 public lands, water and natural resources > measures
> before action is wrapped up, likely by Wednesday night. Coburn will be
> allowed to offer "six good amendments and we'll debate them > thoroughly and
> we should finish probably tomorrow evening," Reid said today. "Six
> amendments is a pittance, but it is about all I could push for and > get."
> Coburn did not detail the amendments he would offer as part of a > unanimous
> consent agreement with Reid, but he said they will not include his > plan to
> allow firearms in national parks. Reid said the agreement means "we > should
> be able to finish the legislation without a lot of heavy lifting." > He noted
> he spoke this morning with Senate Energy and Natural Resources > Chairman
> Jeff Bingaman about the subjects of the amendments. Coburn has > objected to
> the package of bills for containing frivolous spending and impeding > energy
> production. "It shackles us as far as energy production," he said. > But more
> than 70 senators support the package -- which includes a variety of > bills
> sponsored by members of both parties -- and the debate on Coburn's
> amendments may largely be symbolic.
>
> If a time agreement had not been reached with Coburn, there was > concern
> that he could require a full reading of the lands package and then > require
> cloture to be filed on that package as well as the Revolutionary War
> battlefields protection bill being used as its vehicle. That could > have
> extended debate well into the weekend. Coburn since last Congress has
> blocked voice votes on the lands bill, which delayed Senate action > until
> this Congress. The Senate is amending the battlefields protection > bill with
> the public lands package to make it easier for the House to quickly > approve
> it. The House would only need to "concur" with the Senate amendment, > which
> requires a simple majority. House Democratic leaders last week fell > two
> votes shy of expediting passage of the package under suspension of > House
> rules, which requires a two-thirds majority.
>
>
> http://www.nationaljournal.com/congressdai...090317_8993.php
>
> -----
> AGRICULTURE: BIPARTISAN SENATE GROUP PUSHES GEITHNER ON CUBA TRADE
> By Jerry Hagstrom
>
>
> A bipartisan group of 15 senators led by Senate Finance Chairman Max
> Baucus has told Treasury Secretary Geithner it is concerned by his > apparent
> resistance to easing agricultural sales to Cuba -- despite language > in the
> FY09 omnibus appropriations bill that would facilitate such trade. > At issue
> is whether the term "payment in advance" requires payment before > goods are
> received or shipped. From 2000-05, Treasury's Office of Foreign Assets
> Control allowed Cuba to pay for farm products in advance of arrival. > The
> Bush administration then changed the rule to require payment before
> shipping. When Sens. Robert Menendez, D-N.J., and Bill Nelson, D-Fla.,
> threatened to vote against the omnibus because of the Cuba language,
> Geithner wrote that he believed the 2000 law allowing agricultural > sales to
> Cuba required payment in advance of shipping. Last Wednesday, OFAC > issued a
> notice saying it would stick with the Bush rules.
>
> "I'm dismayed that the spirit and intent of the law has been > disregarded
> by Treasury, but I fully expect that Secretary Geithner will revisit > this
> issue to get U.S.-Cuba relations back on track and get our Cuba policy
> right for America's farmers and ranchers," said Baucus in a letter > Monday.
> "In these difficult economic times we have an opportunity in Cuba as a
> growing and loyal trading partner with the U.S. I've worked to build > ties
> and open Cuba to U.S. products, including world-class Montana wheat > and
> peas, and I will continue to press Treasury on this until the issue > gets
> resolved." Last Friday, House Agriculture Appropriations Subcommittee
> Chairwoman Rosa DeLauro, D-Conn., and a bipartisan group of House > members
> in the Cuba Working Group also wrote Geithner asking for a meeting to
> discuss his actions on Cuba. DeLauro said they want to discuss how > Geithner
> will implement provisions in the omnibus requiring Treasury to > liberalize
> rules on travel to Cuba.
>
>
> http://www.nationaljournal.com/congressdai...090317_6466.php
>
> -----
> TRANSPORTATION: BUDGET COMMITTEE GRAPPLES WITH TRANSPORTATION > SHORTFALL
> By David Hess
>
>
> A yawning gap between domestic transportation needs and the revenue > stream
> to pay for them appeared to overwhelm the House Budget Committee > today as
> outside experts drew a grim and controversial picture of the nation's
> crumbling infrastructure and the hundreds of billions it would cost to
> modernize it. Spokesmen for a special commission on transportation > needs
> and for state highway commissioners delivered a sobering assessment > that
> more than a half trillion dollars -- at a minimum -- would be > required over
> the next five years to meet the country's expanding needs. The Federal
> Highway Trust Fund, which for decades has provided the main source of
> capital for transportation needs, is essentially bankrupt and had to
> receive an $8 billion infusion from general revenues this year > simply to
> honor work already contracted by state and federal authorities.
>
> Robert Atkinson, chairman of the National Surface Transportation
> Infrastructure Financing Commission, along with Debra Miller, who > spoke for
> the American Association of State Highway and Transportation > Officials,
> both told the panel that upwards of $545 billion would be needed > from 2010
> to 2015 to adequately meet long-neglected infrastructure and public > transit
> requirements. That amount would effectively double the sum provided > in the
> existing five-year highway law, which expires later this year. The
> officials also warned that billions of dollars worth of ongoing > projects
> could be halted, in the midst of the recession, unless Congress > moves by
> Sept. 30 to repeal an existing mandate to rescind about $8.7 billion > in
> future contract authority for state projects. "The $8.7 billion > rescission
> provision would result in the cancellation of vital projects in every
> region of the country by a similar amount," Miller told the committee.
> Officials said the $8 billion transfer to the trust fund made > earlier this
> fiscal year probably will not be enough to cover FY09 projects, > requiring
> Congress either to ignore the shortfall or provide some additional > funding
> through Sept. 30.
>
> Miller and Atkinson also warned the panel that the transportation > system
> faces both short-term and long-term funding challenges that cannot > be met
> by existing revenue sources. Over the short term, Atkinson said, his
> commission recommends that "Congress enact a modest 10-cent [a gallon]
> increase in the federal gasoline tax, a 15-cent increase in the > diesel tax,
> and a doubling of the heavy vehicle use tax on trucks." Over the > long term,
> they said, trust fund financing for transportation infrastructure > should be
> augmented by a new vehicle-miles-traveled tax, calibrated to > differentiate
> between miles traveled on superhighways and those on rural roads. > Miller
> said should Congress enact a new carbon tax or cap-and-trade system to
> reduce greenhouse gases, some of the revenue should be shunted into > highway
> and mass transit projects. Predictably, the proposals for increased > fuel
> taxes fell with a thud on the budget panel, as both Republicans and
> Democrats bridled at the prospect of voter reaction to higher taxes.
>
>
> http://www.nationaljournal.com/congressdai...090317_5611.php
>
> -----
> HILL BRIEFS: PALLONE SEES WIGGLE ROOM ON TAXING BENEFITS
>
> Health. Every option for cutting healthcare costs is on the table, > Energy
> and Commerce Health Subcommittee Chairman Frank Pallone, D-N.J., > said today
> -- including the tax plan championed by former Republican presidential
> candidate Sen. John McCain of Arizona. At a hearing on healthcare
> affordability, Pallone mentioned as possible options for reducing > costs:
> the health connector program used in Massachusetts; a public plan;
> individual mandates for coverage; and eliminating the tax exclusion > for
> health benefits offered by employers. "Not that I'm taking a > position on
> any of those right now," he added. But he deviated from the written
> statement provided to reporters when he discussed the tax change > championed
> by McCain. He replaced what was written -- "I think that this is a
> dangerous road to go down" -- with much less forceful language, > stating:
> "But obviously this is controversial as well." Pallone has been > working
> with Energy and Commerce Health Subcommittee ranking member Nathan > Deal,
> R-Ga., to build consensus on reform.
>
>
> http://www.nationaljournal.com/congressdai...090317_4779.php
>
> -----
> HILL BRIEFS: GM'S WAGONER SAYS ADMINISTRATION LEERY OF BANKRUPTCY
>
> Transportation. General Motors CEO Rick Wagoner today seconded > comments by
> Steven Rattner, leader of the administration's auto task force > Monday that
> the administration was looking for ways to avoid a "structured > bankruptcy"
> of GM and Chrysler. Wagoner said at a news conference that "the > concerns
> about the supply chain have risen pretty rapidly recently," and that > this
> is leading the task force to take "a very broad view" to "make sure > that
> anything they do doesn't fix one problem here and not there." GM and
> Chrysler face a March 31 deadline to reach agreement with unions,
> bondholders and the government on a plan to keep the companies in > business
> under the terms of a deal granting them $17.4 billion in short-term
> government financing. Wagoner said a bankruptcy filing "brings > significant
> risks and put things out of the control" of management and the board > of
> directors. "It could work, but it might not work," he said, adding > that if
> the quick timetable slows down to more than a couple months, then GM > would
> be forced to liquidate.
>
>
> http://www.nationaljournal.com/congressdai...090317_5784.php
>
> -----
> HILL BRIEFS: FEDERAL RESERVE DELAYS NEW CAPITAL REQUIREMENTS
>
> Finance. The Federal Reserve today announced it will delay by two > years
> new limits on trust-preferred securities and other core capital held > at
> bank-holding companies to help lenders maintain adequate capital as > they
> weather the financial crisis, Bloomberg News reported. "This action is
> being taken in light of continued stress in financial markets and the
> efforts of bank-holding companies to increase their overall capital
> levels," the Fed said in a statement. The new rules, originally set > to take
> effect March 31, would limit the amount of cumulative perpetual > preferred
> stock, trust preferred securities and minority interests in the equity
> accounts included in banks' Tier 1 capital. "In the prevailing market
> conditions, it is especially important for bank-holding companies to > expand
> efforts to increase their overall capital levels, although it is
> challenging to do so now through retention of earnings, the most > typical
> means," added the Fed statement.
>
>
> http://www.nationaljournal.com/congressdai...090317_7034.php
>
> -----
> HILL BRIEFS: CHU LOOKS TO SCIENCE FOR ENERGY BREAKTHROUGH
>
> Energy. Energy Secretary Chu told Congress today he is aiming for a
> revolutionary breakthrough in clean energy technology as important > as the
> development of the computer. Outlining his priorities before the House
> Science Committee, the 1997 Nobel Prize co-winner put an emphasis on > more
> scientific research to achieve major energy breakthroughs. "Our > previous
> investments in science led to the birth of the semiconductor, > computer and
> biotechnology industries," Chu said. "Now we need similar > breakthroughs on
> energy." The nation has made a start, Chu said, but needs to do more,
> including increased funding and refocused research dollars, noting > that the
> FY10 budget would increase science funding and the forthcoming April > budget
> details will focus on energy research and development. His goals > include
> development of gasoline and diesel-like biofuels from lumber, crop and
> solid wastes and nonfood crops; car batteries that will last up to > three
> times longer; solar power that is five times cheaper than today's > panels;
> computer tools that can save up to 80 percent of energy consumption in
> commercial and residential buildings, and large-scale energy storage
> systems for wind or solar power. House Science Chairman Bart Gordon > said he
> was pleased that nuclear energy was among the goals but expressed > concerns
> about nuclear waste storage now that the Yucca Mountain repository > project
> in Nevada has been canceled. Science ranking member Ralph Hall > criticized
> the de-emphasis on oil and gas development research.
>
>
> http://www.nationaljournal.com/congressdai...090317_5261.php
>
> -----
> HILL BRIEFS: FEBRUARY SEES SURGE IN HOUSING STARTS
>
> Economy. The Commerce Department today reported a surprising surge in
> housing construction in February, with strong growth everywhere > except the
> West. The government said construction of new residences jumped 22 > percent
> over January by a seasonally adjusted annual rate of 583,000 units.
> Economists had forecast construction would drop to around 450,000 > units a
> year. Also today, the Labor Department said wholesale prices rose > just 0.1
> percent last month. A big dip in food prices helped offset rising > energy
> prices.
>
>
> http://www.nationaljournal.com/congressdai...090317_8626.php
>
> -----
> HILL BRIEFS: LAHOOD WANTS TO REVIVE MEXICAN TRUCK PROGRAM
>
> Transportation. Transportation Secretary LaHood vowed today to make a
> strong effort to revive the pilot program that allowed Mexican > trucks to
> operate deep within the United States. LaHood said he had been asked > by
> President Obama to develop safety standards for the program that would
> satisfy the congressional sponsors of the recently approved > legislation
> closing the U.S. border to Mexican long-haul trucks. That move > prompted
> Mexico to impose tariffs on 90 U.S. products. "We are going to > develop the
> safest standards we can," LaHood said after an appearance at the > annual
> legislative conference of the National League of Cities. Lahood said > he
> intended to propose the requirements to Congress soon. He said he > planned
> meetings on the issue with U.S. Trade Representative-designate Ron > Kirk and
> top officials of the Commerce and Homeland Security departments. In > his
> remarks to the league, LaHood reiterated his belief that the federal > gas
> tax had outlived it usefulness as a mechanism for funding road and > bridge
> projects, and suggested tolling as an alternative. He later > clarified to
> reporters that he envisaged tolls only on new roads.
>
>
> http://www.nationaljournal.com/congressdai...090317_2434.php
>
> -----
> HILL BRIEFS: PALIN HASN'T CONFIRMED SHE'LL ATTEND SENATE-HOUSE DINNER
>
> Politics. A spokesman for Alaska Republican Gov. Sarah Palin said > Monday
> that congressional Republicans were mistaken in announcing Palin would
> deliver the keynote address at the Senate-House dinner in > Washington, the
> Anchorage Daily News reported. The governor's office said Palin had > not
> confirmed she would attend the annual fundraiser for Republican
> congressional candidates. "I communicated with the governor directly > and
> she did not know anything about it," said the spokesman.
>
>
> http://www.nationaljournal.com/congressdai...090317_8431.php
>
> -----
> HILL BRIEFS: GINSBURG TO HAVE PRECAUTIONARY CHEMOTHERAPY
>
> People. Supreme Court Justice Ruth Bader Ginsburg said today she will
> undergo a precautionary, post-surgery course of chemotherapy at the
> National Institutes of Health later this month. Ginsburg said she > does not
> expect the treatment to affect her schedule at the court. In February,
> physicians removed a small cancerous growth from Ginsburg's pancreas.
>
>
> http://www.nationaljournal.com/congressdai...090317_4965.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "Let's just say I'm probably not going to be doing too many ski > vacations
> in the Swiss Alps."
>
> -- IRS Commissioner Douglas Shulman, speaking before the Senate > Finance
> Committee today on efforts to crack down on individuals evading taxes
> through secret Swiss bank accounts.

[Snuffysmith]

> CongressDaily AM for Wednesday, March 18, 2009
>
> --------------------
> CONTENTS
>
> TAXES: CONGRESS MOVES QUICKLY TO PUNISH AIG
> By Peter Cohn, with Humberto Sanchez and Carrie Dann contributing
>
>
> Senate Finance Committee leaders Tuesday announced they were preparing
> legislation to impose steep excise taxes, perhaps 70 percent or > more, on
> bonuses granted by firms like American International Group Inc., and > others
> receiving government aid.
>
> "Financial institutions that in our judgment accept federal funds to > avoid
> bankruptcy should watch every penny, not give million-dollar bonuses,"
> Finance Chairman Max Baucus said. "We believe this is the right > thing to
> do. American taxpayers are justifiably outraged at what AIG has done."
>
> At the same time, House Democratic leaders are preparing a more > expansive
> three-pronged approach involving multiple committees, even as Ways and
> Means Chairman Charles Rangel expressed some unease at going after
> executive bonuses through the tax code.
>
> The House's chief tax-writer said "I don't know" if an excise tax > was the
> right approach, but Speaker Pelosi appears to be barreling ahead, and
> several House Democrats have announced bills to impose as much as 100
> percent excise taxes on bonuses.
>
> Pelosi announced Tuesday that the Ways and Means, Financial Services > and
> Judiciary committees were working on a joint bill, which could be on > the
> floor this week.
>
> In addition to "special taxation legislation," it would authorize the
> attorney general to recover "excessive" compensation payments made > by firms
> that received federal aid and prohibit abuse of retention bonuses.
>
> The Obama administration made some moves of its own. Treasury > Secretary
> Geithner wrote to congressional leaders Tuesday that "as part of our
> provision of recently announced taxpayer funds, we will impose on > AIG a
> contractual commitment to pay the Treasury from the operations of the
> company the amount of retention awards just paid. In addition, we will
> deduct from the $30 billion in assistance an amount equal to the > amount of
> those payments."
>
> Rangel met with Baucus to discuss the AIG situation Tuesday afternoon.
> Rangel indicated that a decision still needs to be made among the > House
> leadership, let alone on a bicameral deal.
>
> "There is no question that AIG should not have used taxpayer funds > to pay
> bonuses to executives," Rangel said in a statement. "The question we > have
> to deal with now is how do we repair this damage? I have met with > members
> and House leadership to discuss legislative options, and will continue
> these discussions tomorrow to develop a legislative response to this
> problem."
>
> House Ways and Means Select Revenue Measures Subcommittee Chairman > Richard
> Neal, D-Mass., appeared to share Rangel's unease.
>
> "I don't know ... how you punish them through the tax code, but at the
> same time we all acknowledge the accurate sense of outrage that > people feel
> everyplace," Neal said. "I suppose one could argue you could do a > rifle
> shot, but I think a more comprehensive response is necessary."
>
> In the Senate, it is unclear if GOP leaders will throw their weight > behind
> the bill. Minority Whip Kyl said he was opposed to retroactive tax
> increases, arguing they could hinder businesses' decision-making.
>
> The measure Baucus is working on with Finance ranking member Charles
> Grassley would impose a 35 percent tax on each corporation receiving > funds
> out of the $700 billion Troubled Asset Relief Program, or others in > which
> the government has taken an equity stake, that have paid bonuses > since Jan.
> 1.
>
> That includes federally backed mortgage financiers Fannie Mae and > Freddie
> Mac, as well as AIG, into which the government has pumped about $170
> billion and owns 80 percent.
>
> On top of the 35 percent corporate excise tax, individuals receiving
> retention bonuses of the sort being paid out to AIG employees that > have
> aroused public outrage would face a 35 percent excise tax of their > own on
> the entire amount of the bonus.
>
> Individuals receiving other types of bonuses, including performance
> incentives, would face the 35 percent additional tax on bonuses > worth more
> than $50,000. Those excise taxes would be non-deductible.
>
> The measure is modeled after an amendment from Sens. Olympia Snowe,
> R-Maine, and Ron Wyden, D-Ore., adopted by the Senate to the stimulus
> package, "only tougher," a senior Finance Committee aide said. That
> provision was dropped during final negotiations.
>
> Finance Committee leaders had not yet decided the exact structure of > the
> excise tax, such as whether the tax would apply on top of ordinary > income
> taxes paid by bonus recipients, or just on the bonus itself.
>
> Assuming an individual earns enough to be in the 35 percent income tax
> bracket, adding the 35 percent excise tax bonus plus additional > state and
> local taxes could bring the total tax burden for bonus recipients > under the
> bill to around 80 percent. "It's going to end up being north of 70
> percent," Baucus said.
>
> Baucus likened executives at organizations like AIG's now-infamous
> financial products division to being in a "cocoon," out of touch with
> millions of taxpayers who have lost jobs. "Give me a break," he > said. "What
> were they thinking? Which is part of the problem -- they're not > thinking."
>
> An enraged Grassley -- who has been in rare form this week -- told
> reporters that "from my standpoint, it's irresponsible for > corporations to
> give bonuses at this time when they're sucking the tit of the > taxpayer."
>
> The bill contains safeguards ensuring that foreign employees of > firms like
> AIG -- and those who leave the country after receiving bonus pay -- > could
> not escape the tax. The money would be withheld from an employee's
> paycheck, or would be collected from the company itself. Also, firms > could
> not restructure the bonuses as base salary or deferred compensation to
> escape the 35 percent levy.
>
> Baucus and Grassley said they reviewed the measure with lawyers and > are
> confident it would pass constitutional muster, despite concerns about
> abrogating legally binding contracts.
>
> When asked about concerns that the provision would deter firms like > AIG
> from being able to hire and keep talented staff, a Finance aide > replied:
> "We're talking about giving retention bonuses to the financial > products
> group at AIG ... if they're the people that are going to get us out > of this
> mess, then we're in a world of hurt."
>
> House Oversight and Government Reform Chairman Edolphus Towns has
> dispatched committee investigators to look into AIG's contracts with > the
> executives who received millions in bonuses -- particularly the 11
> recipients no longer employed by the company.
>
> The probe is intended to pinpoint when the contracts were written > and the
> bonuses paid in relation to the influx of Troubled Asset Relief > Program
> stabilization funds into the insurance giant's coffers.
>
> Towns has scheduled a hearing -- at which AIG CEO Edward Liddy will be
> asked to testify -- April 2. Liddy is testifying before the House > Financial
> Services Committee today.
>
>
> http://www.nationaljournal.com/congressdai...090318_8123.php
>
> -----
> HEALTH: OBAMA ADMINISTRATION LIKELY TO REVIEW UMASS SCIENTIST'S BID > TO GROW
> MARIJUANA
> By Katie Sanders
>
>
> Days before President Bush left office in January, his administration
> fired a parting shot at Professor Lyle Craker's eight-year quest to
> cultivate marijuana for medical research by abruptly denying him a > federal
> license despite a nearly two-year old Drug Enforcement > Administration law
> judge's recommendation that he receive one.
>
> But the new administration led by President Obama, who has publicly > backed
> the use of marijuana for medical purposes to stave off pain, might > reverse
> the decision and keep Craker's license application from going up in > smoke.
>
> A source familiar with the case said the White House will likely > demand
> that the decision be reviewed.
>
> "Basically they want to do an autopsy of what occurred and have it go
> through a proper review," the source said.
>
> Craker, who is based at the University of Massachusetts-Amherst, is
> cautiously optimistic Obama will do to the denial of the marijuana > license
> what he has done to other Bush administration decisions on such hot-> button
> cultural issues as embryonic stem-cell research and the abortion > "gag rule"
> affecting overseas family planning groups.
>
> "Obama has indicated that he's for science over politics," Craker > said in
> an interview. "And I certainly feel the situation we have currently is
> politics over science."
>
> Just last week, Obama called for the head of the White House Office of
> Science and Technology Policy to "develop a strategy for restoring
> scientific integrity to government decision making."
>
> "The public must be able to trust the science and scientific process
> informing public policy decisions," Obama wrote. "Public officials > should
> not suppress or alter scientific or technological findings and
> conclusions."
>
> On the issue of medicinal marijuana, Obama said at a November 2007
> campaign stop in Iowa that he was open to allowing its use if it is > what
> science and physicians suggest would be the best way to ease > suffering.
>
> "There's no difference between that and morphine when it comes to just
> giving people relief to pain," Obama said then.
>
> Administration officials familiar with Craker's application for a DEA
> license to grow the plant would not comment on the case.
>
> Last month, 16 House members wrote Attorney General Holder asking > him to
> amend or withdraw the DEA's final order on Craker's application so the
> president's new head of DEA could review the application. They wrote > that
> the administrative law judge's decision "left no doubt" that Craker is
> qualified to cultivate marijuana for research purposes.
>
> The members, led by Rep. John Olver, D-Mass., said they were > concerned the
> Bush administration's ruling violated the "spirit" of a Jan. 20 > memorandum
> from White House Chief of Staff Emanuel that essentially froze all > "11th
> hour" final orders. The memo distributed shortly after the > inauguration
> asked agency officials to reconsider final rules and regulations > that have
> been published in the Federal Register, but have yet to take effect.
>
> Craker's battle with the Bush administration began in 2001, when he
> applied for a federal license to become a bulk manufacturer of > marijuana
> and establish a privately funded facility at his university for DEA- > and
> FDA-approved marijuana research.
>
> His application posed a challenge to a decades-long monopoly enjoyed > by
> the University of Mississippi as the country's only legal producer of
> marijuana for medical research, a program started in 1968 and > overseen by
> the National Institute on Drug Abuse since 1974.
>
> A longtime backer, Senate Appropriations ranking member Thad Cochran,
> funneled $3.5 million in earmarked funds to the university's National
> Center for Natural Products Research, which is housed in a building > that
> bears his name, in the FY09 omnibus spending bill.
>
> His press secretary said this week that, as an Ole Miss alumnus, > Cochran
> is proud to have the center in his state, and that the decision on any
> other license is "up to DEA."
>
> In 2007, a DEA administrative law judge issued a non-binding
> recommendation in favor of granting Craker a license, saying NIDA's
> Mississippi-grown supply provided to approved scientists was > insufficient
> for the research marijuana merits. Despite letters of support from > 45 House
> members and Massachusetts Democratic Sens. Edward Kennedy and John > Kerry,
> then-DEA Administrator Karen Tandy and her successor, acting > Administrator
> Michele Leonhart, made no decision on the license application for > more than
> a year.
>
> But less than a week before Bush left the Oval Office, Leonhart > issued a
> final order denying Craker's application, aiming to close the books > on a
> case that lasted nearly as long as Bush's tenure in office. She set > Feb. 13
> as the final order's effective date.
>
> The timing led Craker and Allen Hopper, who heads a legal team > provided by
> the American Civil Liberties Union, to assume the decision was > politically
> motivated. Administrative law judges usually are nonpartisan > "technocrats"
> who examine cases from legal and rational points of view, Hopper said.
>
> "But when you get to [the] level of DEA administrator, that's a > political
> appointment," he said.
>
> The source familiar with the case agreed the decision was "entirely
> political."
>
> "It just seems it was rushed on ideological grounds," this source > said.
>
> Craker said one reason Leonhart did not favor granting him a license > was
> concern it would set off a rush of license applications from > researchers
> seeking to grow their own.
>
> "I think our case is dynamite in a logjam," Craker said. "Once > something
> like this is broken, it's kind of hard to put it back together."
>
> Since the final order, Hopper has filed a motion to reconsider and has
> asked for a hearing to present witnesses and evidence that can refute
> Leonhart's arguments.
>
> Meanwhile, four days before the Feb. 13 effective date of the order
> denying a license to Craker, Leonhart, who is still DEA's acting > chief but
> now reports to Obama, extended the date to April 1.
>
> Justice Department spokeswoman Laura Sweeney, who fielded questions > about
> marijuana licensing, said the date was pushed back because Craker's > legal
> team asked for an extension to file supplemental evidence. She said > it was
> not in response to Emanuel's Jan. 20 memo.
>
> Much of the outcome hinges on the fact that Obama has not yet > nominated
> someone to lead the DEA. Rep. Sam Farr, D-Calif., who co-signed the > letter
> to Holder, remarked that the Obama administration has moved > "incredibly
> slow" at filling this position.
>
> But with a plunging economy and two wars, who can blame Obama for > the lack
> of immediate attention to the drug issue? "I hate to tell you this > -- it's
> not the most important issue that I'm concerned about," Farr said.
>
>
> http://www.nationaljournal.com/congressdai...090318_1850.php
>
> -----
> HEALTH: DRUG INDUSTRY IS WARY OF OBAMA'S PICK FOR FDA DEPUTY
> By Anna Edney
>
>
> Food, pharmaceutical and medical device groups have lauded President
> Obama's pick to lead FDA, but his selection for second in command is > giving
> the drug industry heartburn.
>
> Industry insiders describe their colleagues as cautiously optimistic > about
> FDA Administrator-nominee Margaret Hamburg, a former New York City > health
> commissioner who works at a nuclear nonproliferation think tank, and
> nervous in varying degrees about Baltimore City Health Commissioner > Joshua
> Sharfstein.
>
> "Hamburg will be focused on the food supply and creating regulation of
> tobacco, and to some degree it's expected Sharfstein will have a > certain
> amount of autonomy on pharmaceuticals and medical devices," one > lobbyist
> said. "Companies are clearly going to get more scrutiny."
>
> The drug industry is viewing the dual picks, as one FDA lawyer put > it, as
> a "power-sharing agreement."
>
> Obama emphasized food safety when he announced the selections of > Hamburg
> and Sharfstein, likely keeping in mind the string of deadly foodborne
> illness outbreaks in recent years. Hamburg's public health and > bioterrorism
> background make food safety a natural fit. She is a senior scientist > at the
> Nuclear Threat Initiative, which publishes Global Security Newswire, a
> National Journal Group affiliate.
>
> Sharfstein, on the other hand, has a long and sometimes contentious
> history with the pharmaceutical industry.
>
> "Anyone who spent their career under Henry Waxman ...," said one > lobbyist,
> trailing off with a shudder.
>
> Sharfstein worked under the now-House Energy and Commerce chairman > from
> July 2001 to December 2005, a Waxman spokeswoman said.
>
> Waxman has been tough on drug companies, particularly given several
> scandals involving contaminated drugs or unheeded warnings in the > recent
> years. Sharfstein has carried the torch on many of his former boss' > public
> health priorities, ranging from cracking down on medication use for
> illnesses not approved by FDA to criticizing pharmaceutical > companies for
> gifts handed out to physicians.
>
> Sharfstein led the Obama transition team's FDA evaluation and was > thought
> by many to be a shoo-in for the top post at the agency. He raised > warning
> bells as well that led the agency to re-evaluate the safety of cough > and
> cold medicine use for children.
>
> The pediatrician could play a key role implementing 2007 FDA > legislation
> that set up a system for pharmaceutical companies to assess risks
> associated with their products and come up with a plan to mitigate > those
> risks -- hence the term risk evaluation and mitigation strategy, or > REMS.
> The law affords FDA the discretion to determine how stringent a > product's
> REMS should be, and the drug world fears potentially burdensome REMS > could
> become the norm.
>
> "I think companies are really nervous based on his track record," an
> industry insider said.
>
> Peter Pitts, co-founder of the Center for Medicine in the Public > Interest
> and a former FDA associate commissioner for external relations, > argued the
> drug lobby's fears are unfounded.
>
> "I don't think you'll see more strident regulations," Pitts said. "I > think
> you'll see a more effective way to use existing regulations."
>
> He anticipates FDA will experience an influx of resources this year > that
> will have the underfunded agency running smoother and more > efficiently.
>
> One lobbyist called the new funding on the horizon "a blessing and a
> curse," adding, "With that money, the question is: What type of > additional
> oversight or regulatory burden [is] not going to be put on just
> pharma-companies but biotech and medical device companies as well?"
>
> Waxman is a leader in trying to move legislation that would grant > FDA the
> authority to oversee tobacco, a bill Sharfstein worked on with the
> chairman, as well as his most recent legislation that would allow > FDA to
> approve generic versions of biologic drugs.
>
>
> http://www.nationaljournal.com/congressdai...090318_4079.php
>
> -----
> BUDGET: MODERATE DEMOCRATS FLEXING MUSCLES ON FISCAL MATTERS
> By Dan Friedman
>
>
> With Congress gearing up to consider President Obama's budget, > moderate
> Senate Democrats are stepping up their efforts on the budget and other
> Democratic priorities in a push to form a unified block urging fiscal
> restraint.
>
> Fifteen or more Democrats will announce today that they are aligning > in a
> working group focused on fiscal responsibility, said Sen. Evan Bayh,
> D-Ind., a key member of the group. The senators this week held their > second
> meeting, where Senate Budget Chairman Kent Conrad gave a > presentation on
> the budget, members said. Staffers are also meeting over the next week
> regarding holding down spending in the budget.
>
> While the budget will be in the forefront in coming weeks, Democratic
> centrists have weighed in recently on several fronts. At least eight > Senate
> Democrats have signed a letter opposing use of the budget > reconciliation
> process to pass climate change legislation -- a step Majority Leader > Reid
> is mulling to deny Republicans a chance to filibuster the bill. (See
> related stories, page 7.)
>
> Moderate Democrats are also resisting entreaties from Majority Whip > Durbin
> and Sen. Charles Schumer, D-N.Y., to back a housing bill that would > allow
> bankruptcy judges to modify mortgage terms through steps including > reducing
> the principal. Bayh and Sen. Arlen Specter, R-Pa., are pushing to > pick up
> backing from Republicans and Democrats who are uneasy with Durbin's
> approach for an alternative that would make the so-called cram-downs
> available to far fewer homeowners.
>
> Bayh said his approach is more likely than Durbin's to win 60 votes
> because it will not "impose higher costs on the vast majority of > Americans
> that won't have to resort to bankruptcy in the long run." (See related
> story, page 11.)
>
> The increased moderate heft results from Senate Democrats' pick-up > of many
> formerly Republican seats in 2006 and 2008. The wins brought in more
> Democrats who come from right-leaning states with electoral > incentives to
> line up with longer-serving centrists like Bayh and Sen. Ben Nelson, > D-Neb.
> Sens. Mark Warner of Virginia, Jeanne Shaheen of New Hampshire and Kay
> Hagan of North Carolina are among those likely to join or vote with > the
> moderate group.
>
> The group appears particularly focused on Obama's climate change > plans in
> his budget outline, with Nelson organizing moderate efforts on that > front,
> senators said.
>
> The senators anticipate their position will be strengthened by new
> economic news. "I think you'll see in coming days there will be new
> estimates coming in that will reflect that the economy is not good > that
> will make the budget challenge even more difficult," Bayh said.
>
> "You have to set priorities and fund what you can and perhaps defer > for a
> modest period of time those things that you can't afford." Bayh said,
> adding, "because there is a limit to things that we can borrow from > the
> rest of the world without it causing grave economic consequences in > the
> longer term."
>
> With Republicans staking out positions generally opposed to the > budget,
> moderates see an opportunity to hold sway in various areas.
>
> "You will probably see the Republicans provide no votes for > addressing the
> [financial crisis], and so it will be up to moderate Democrats to > play a
> constructive role in trying to do that," Bayh said.
>
>
> http://www.nationaljournal.com/congressdai...090318_3454.php
>
> -----
> BUDGET: CONRAD, OTHER DEMS STILL WARY ABOUT USING RECONCILIATION
> By Humberto Sanchez
>
>
> Senate Budget Chairman Kent Conrad said Tuesday it would be > difficult to
> use the budget reconciliation process to get around a Senate > filibuster on
> healthcare and climate change legislation, despite calls from > Democratic
> leaders that it is an option.
>
> "There are many more discussions that I have to have, so we still > are in
> the same posture, no final decisions," Conrad said after emerging > from a
> meeting with Majority Leader Reid.
>
> House and Senate Democratic leaders and White House officials have > said
> they are not ruling out the possibility of including reconciliation
> instructions in the FY10 budget resolution -- potentially for > healthcare
> reform, climate change policy, or shifting federal student loans > into the
> direct-loan program administered by the Education Department.
>
> Under reconciliation, only 51 votes would be required to pass a bill,
> rather than the 60 that would be needed to overcome a filibuster.
>
> Conrad said the issue came up in his meeting with Reid, who earlier > in the
> day noted that the process is ongoing and that no decision on the > issue had
> been made. House Majority Leader Hoyer Tuesday indicated > reconciliation
> remains an arrow in leadership's quiver.
>
> Both the House and Senate Budget committees plan to consider their > budget
> measures next week.
>
> Conrad said he is wary of using reconciliation primarily because of > the
> Byrd rule, which bars extraneous provisions from being included in a
> reconciliation bill. It takes 60 votes to waive the Byrd rule.
>
> "If you try to write in reconciliation healthcare reform and climate
> change you'll be left with Swiss cheese because so much will be > subjected
> to Byrd rule strikes," Conrad said.
>
> He stressed that reconciliation is limited to legislation that has a
> fiscal impact, which makes many healthcare changes, for example, > subject to
> the Byrd rule.
>
> "Reconciliation, I believe, was written for deficit reduction," Conrad
> said. "These initiatives are primarily not deficit reduction."
>
> Other Democrats also are skeptical. Sen. Ben Nelson, D-Neb., said > Tuesday
> that: "I think it is totally inappropriate to use the reconciliation
> process for something like cap and trade or anything else that ought > to be
> considered in regular order, going through the committee process. > Whether
> it can get enough votes or not, in my opinion is secondary to > whether it
> ought to go through regular order."
>
> Republicans also have argued against the use of reconciliation, > which they
> claim will trample the rights of the minority.
>
> "Using reconciliation in this manner ... would do fundamental > harm ... to
> the institution of the Senate," Budget ranking member Judd Gregg > said on
> the floor Tuesday. "I mean, why have a Senate if you're going to do
> reconciliation on something this significant? You might as well go > to a
> unicameral body. Be like Canada. Have one body and have it be the > House of
> Representatives because that will be the practical effect of using
> reconciliation here."
>
> Conrad said he is also considering a budget with only a five-year > horizon
> rather than a 10-year window employed in President Obama's budget > outline
> because economic estimates beyond five years might not be helpful > given the
> current economy.
>
> "I have never seen more uncertainty in the out-year forecasts than I > see
> know," Conrad said. "I think it makes a 10-year budget far more
> problematical when the out-year estimates are at such variance."
>
>
> http://www.nationaljournal.com/congressdai...090318_6775.php
>
> -----
> BUDGET: ORSZAG WON'T RULE OUT USING RECONCILIATION FOR HEALTH CARE
> By By John Maggs
>
>
> OMB Director Orszag said Tuesday that while it would not be unusual > to use
> the budget reconciliation process to pass a major initiative like > President
> Obama's healthcare plan, it is not the administration's first choice.
>
> "It is not where we would like to start," Orszag said at a Christian
> Science Monitor luncheon. "[However] I think it is premature to be > taking
> it off the table at this point. I am aware, and the president is > aware, of
> the concerns that have been expressed, especially by Republicans."
>
> Legislation that moves through the reconciliation process is protected
> from filibusters and can be passed by a simple majority rather than > require
> 60 votes to invoke cloture.
>
> Reconciliation has been used frequently for major, controversial
> legislation when President Ronald Reagan used it to evade Democratic
> objections to pass his budget and tax program.
>
> "Somehow this is being presented as an unusual thing, where it is > actually
> the historical norm, rather than the exception," said Orszag.
>
> Orszag said he expected a CBO forecast of economic growth to project a
> significantly larger contraction of the economy during 2008 because > it will
> reflect new, and worse, data from the final quarter.
>
> However, he rejected the charge by some economists that the Obama
> administration had made an overly optimistic prediction of economic
> performance this year and next, arguing that its numbers are > consistent
> with others that incorporate the impact of the $787 billion economic
> stimulus plan enacted last month.
>
> Orszag's office has estimated that the economy will contract 1.2 > percent
> in 2009 and grow 3.2 percent in 2010. Before incorporating the > stimulus
> plan, the CBO expected a 2.2 percent contraction this year and only > 1.5
> percent growth in 2010.
>
>
> http://www.nationaljournal.com/congressdai...090318_2300.php
>
> -----
> JUDICIARY: ANTITRUST LAW GETS LONG LOOK IN SUBCOMMITTEE HEARING
> By Andrew Noyes
>
>
> A House subcommittee heard divergent opinions Tuesday on how > Congress and
> federal agencies should proceed in light of a growing list of > financial
> institutions that have gotten government bailouts and been deemed > "too big
> to fail."
>
> House Judiciary Courts and Competition Subcommittee Chairman Hank > Johnson,
> D-Ga., called the hearing to examine whether the recession was > worsened by
> the U.S. antitrust regime. Ranking member Howard Coble, R-N.C., said > the
> hearing allowed consideration of "whether the existing antitrust view
> properly protects taxpayers from having to save other institutions."
>
> American Antitrust Institute President Bert Foer said antitrust law is
> inadequate and would benefit from a deputy assistant attorney > general post
> to protect competition policy during a recession and emergency
> consolidation situations. He said legislation is needed that would > let the
> government halt the formation of entities that are gauged too big to > fail
> -- with carve-outs for mergers approved by the president during an > economic
> emergency. The White House would have the discretion because > Congress and
> the courts would lengthen the process when time is of the essence, > he said.
>
> MidSouth Bank CEO C.R. Cloutier, who testified on behalf of the
> Independent Community Bankers of America, pressed lawmakers to take a
> different approach. He said they should direct an interagency task > force to
> immediately identify financial institutions that pose a systemic > economic
> risk and put them under the supervision of the Federal Reserve. > Under his
> proposal, the interagency group could order the breakup of such
> institutions over a five-year period while the FDIC could impose a > premium
> on any affiliated insured bank.
>
> Another path was proposed by the Financial Services Roundtable policy
> adviser William Askew.
>
> He pressed for the reconstitution of the President's Working Group on
> Financial Markets to allow for congressional oversight and said the > SEC and
> Commodity Futures Trading Commission should merge with the stated > goal of
> regulating and supervising capital markets. Askew argued the Federal
> Reserve should be authorized to survey the entire financial sector > and flag
> interconnections that could be troublesome
>
> Deborah Garza, former assistant attorney general for antitrust, > argued the
> term "too big to fail" creates a moral hazard that diminishes the > effects
> of market discipline. Rep. Brad Sherman, D-Calif., called the phrase > "an
> affront to capitalism," which he said only works if entities are > allowed to
> go under. "These companies are not too big to fail. ... They're too
> well-connected to fail," Sherman said.
>
>
> http://www.nationaljournal.com/congressdai...090318_5838.php
>
> -----
> TECHNOLOGY: JUSTICE DEPT. WANTS SHIFT IN CYBERCRIME LAW APPLICATION
> By Andrew Noyes
>
>
> The Justice Department urged the U.S. Sentencing Commission Tuesday to
> alter how it proposes to implement cybercrime legislation that passed
> Congress last year to reflect key differences between economic > crimes such
> as fraud and those involving information theft.
>
> Some of the information theft incidents include high-tech hacking > cases
> that involve large-scale data breaches like a 2003 incident involving
> information broker Acxiom, where more than 1.6 billion customer > records
> were stolen.
>
> Michael DuBose, who heads the agency's Computer Crimes and > Intellectual
> Property Section, testified that guidelines being contemplated > restrict
> consideration of fair market value for calculating loss in > situations where
> "property [is] taken or destroyed."
>
> He said that formulation is ambiguous and could be construed as
> inapplicable to situations in which information is merely copied. In > turn,
> courts could impose inadequate sentences.
>
> In cases that involve trade secrets and other information that is
> difficult to value, development costs can appropriately gauge the > crime's
> severity, DuBose said.
>
> The ID theft bill, authored by Senate Judiciary Chairman Patrick > Leahy and
> signed by former President George W. Bush in September, allows the
> prosecution of those who steal personal data from a computer even > when the
> victim's computer is located in the same state as the thief's. Under > prior
> law, federal courts only had jurisdiction if the crime was committed > across
> state lines.
>
> The measure made it a felony to employ malicious software to damage > 10 or
> more computers and criminalized threats to steal or release > information
> from a computer.
>
> In written testimony, Electronic Frontier Foundation technologist Seth
> Schoen said his watchdog group opposes the commission's proposed > rules that
> would give the use of a computer proxy, which acts as a middleman > between
> computers, as a specific example of technology representing a
> "sophisticated means" of committing a crime. Proxies are used for > various
> purposes, but most are unconnected to criminality, he said.
>
> National Sentencing Resource Counsel Jennifer Coffin objected to > that and
> other proposed sentencing changes, which she believes run counter to > the
> commission's goal of simplifying guidelines.
>
> "The Commission should leave it to courts to consider on a case-by-> case
> basis whether the use of a particular form of technology or software > truly
> constitutes sophisticated means," she wrote.
>
>
> http://www.nationaljournal.com/congressdai...090318_7911.php
>
> -----
> JUDICIARY: BAYH: 60 VOTES NOT THERE ON CRAM-DOWN
> By Bill Swindell
>
>
> A key Senate Democrat said Tuesday it was unlikely the chamber would
> consider a bill to allow bankruptcy judges to modify terms of a > primary
> mortgage until after the spring recess.
>
> Sen. Evan Bayh, D-Ind., said there is not enough support to prevent a
> filibuster of the bill that would allow mortgages to be restructured
> through a Chapter 13 filing, just like other consumer debt such as > second
> homes, autos and boats.
>
> "I think this is going to be probably not taken up until after the
> upcoming recess. But right now I think there is going be some > difficulty in
> getting to the 60 votes," said Bayh.
>
> Senate Majority Leader Reid Tuesday said that timeframe was about > right.
> "I would expect very soon after we get back after April recess that > we'll
> be working on what they [Banking Committee] report out," he said.
>
> He is working with Judiciary ranking member Arlen Specter to narrow > the
> eligibility for borrowers who could have the principal of their > mortgage
> reduced, also referred to as a "cram-down." Senate staffers met > Tuesday
> afternoon in an effort to work on a compromise.
>
> A House-passed version allowed the bankruptcy judge to consider > whether
> homeowners were offered a "qualified" loan workout similar to a plan > the
> Obama administration has announced to help lower the interest rate > for up
> to 9 million families. But the House measure did not mandate that the
> borrower had to take such an offer if he were eligible, in lieu of
> cram-down -- a provision advocated by the lending industry. Senate
> moderates are pushing for such a requirement.
>
> Bayh said he is looking to impose a sunset period for the cram-down
> provisions.
>
>
> http://www.nationaljournal.com/congressdai...090318_8290.php
>
> -----
> FOREIGN AFFAIRS: LUGAR BACKS HILL FOR IRAQ POST; OTHER GOP SENATORS > RESIST
>
> Senate Foreign Relations ranking member Richard Lugar offered support
> Tuesday for veteran diplomat Christopher Hill to become the next U.S.
> ambassador to Iraq, even as other GOP senators bluntly urged President
> Obama to reconsider his nomination.
>
> Two administration officials told Associated Press they were > counting on
> Lugar's support in order for Hill to overcome GOP opposition and > secure the
> 60 votes that would ensure his confirmation. The officials spoke
> anonymously because Hill was meeting with senators Tuesday.
>
> Following his meeting with Hill, Sen. Sam Brownback, R-Kan., > circulated a
> letter asking Obama to pull the nomination. Among those who signed > it were
> Senate Minority Whip Kyl and Sens. John Ensign, R-Nev., James Inhofe,
> R-Okla., and Christopher (Kit) Bond, R-Mo.
>
> Obama nominated Hill to the post last week and almost immediately drew
> fire from Republicans, including Brownback and Sens. John McCain of > Arizona
> and Lindsey Graham of South Carolina, who say Hill lacks experience > in the
> Middle East.
>
> A confirmation hearing is planned March 25.
>
> Hill is assistant secretary of State for East Asian and Pacific > affairs
> and has been a U.S. ambassador to Korea, Poland and Macedonia; he is > best
> known for his role in the Bush administration as chief U.S. > negotiator in
> disarmament talks with North Korea.
>
> Brownback has been the most outspoken opponent of Hill because of a
> long-running dispute over how to handle human rights abuses by the > North
> Koreans.
>
> After his meeting with Hill, Brownback said he remained unmoved. > Brownback
> contends that Hill deliberately misled him when he promised in July > 2008
> congressional testimony that he would invite North Korea special > envoy Jay
> Lefkowitz to future disarmament talks.
>
> Official talks stalled before he could do so, but Brownback contends > that
> meetings were still held and Lefkowitz was not part of them.
>
> Standing behind Hill's nomination are former Iraq ambassadors Ryan
> Crocker, Zalmay Khalilzad and John Negroponte. The three wrote a > letter
> supporting Hill for the post and urging the Senate to approve his
> nomination.
>
> "We need his experience during this crucial time in Iraq," they > wrote in
> the letter obtained by the AP. "His previous experiences will serve > him
> greatly when addressing extreme challenges in Iraq."
>
> Other Republican critics, including McCain, have focused on what > they say
> is a lack of expertise on issues facing Iraq.
>
>
> http://www.nationaljournal.com/congressdai...090318_3115.php
>
> -----
> PEOPLE: PEOPLE
> By Gregg Sangillo
>
>
> RETURN TRIP. Former Rep. Jim Slattery, D-Kan., is returning to his old
> firm, Wiley Rein, as part of its public policy group. Slattery > served in
> the House from 1983-1995. He went to work for Wiley Rein after > making an
> unsuccessful run for governor. In 2008, he attempted a return to > public
> life with a run against Sen. Pat Roberts, R-Kan., but he was defeated,
> 60-36 percent. Slattery's work in the private sector became an issue > in the
> 2008 campaign, with a Roberts ad attacking the Democrat as a "Gucci
> loafers" lobbyist; Slattery defended his work and said he didn't > advocate
> for any issue or client he didn't already believe in. "Whether it is > health
> care, energy or the financial crisis, we are facing historic > challenges.
> There are also wonderful opportunities for those who want to play a
> constructive role in our nation's public policy debate," Slattery > said in a
> statement.
>
> TORRA, TORRA, TORRA. The Raben Group is bringing in Michael J. > Torra, a
> former chief of staff for Rep. Linda Sanchez, D-Calif. Torra will > serve as
> a principal at the D.C.-based public affairs firm. Torra has also > worked at
> the Congressional Hispanic Caucus and, in addition to his work for > Sanchez,
> he was an aide to two other Caucus members, Texas Democratic Reps.
> Silvestre Reyes and Charles Gonzalez. Robert Raben, who founded the > Raben
> Group, is a former counsel for Rep. Barney Frank, D-Mass. The Raben > Group
> has plenty of ties to the Hispanic Caucus. Three people at the firm > have
> done fellowships at the Caucus; Los Angeles-based Laura Rodriguez is a
> former chief of staff for former Rep. Rep. Hilda Solis, D-Calif., > who is
> now Labor secretary, and was a top aide for Rep. Loretta Sanchez, D-> Calif.,
> Linda Sanchez' older sister.
>
>
> http://www.nationaljournal.com/congressdai...090318_4346.php
>
> -----
> OUTSIDE INFLUENCES: CULTIVATING FARM INTERESTS
> By Jerry Hagstrom
>
>
> When President Obama nominated former Iowa Democratic Gov. Tom > Vilsack to
> be Agriculture secretary, big farmers and agribusiness were thrilled
> because he supported biotechnology. "Foodies" who favor organic and > local
> production, and advocates for USDA's roles in nutrition, > conservation, food
> safety and rural development feared Vilsack's appointment meant USDA > would
> not change much from the Bush administration's promotion of industrial
> agriculture.
>
> Nearly two months into the administration, the critics of Vilsack's
> appointment seem happy while the very lobbyists who praised his > appointment
> are nervous. What happened?
>
> For one, there haven't been any biotech controversies in the time > Vilsack
> has been in office so he hasn't had a chance to prove his commitment > to one
> of the factors that has made industrial agriculture so successful.
>
> Two, Obama has nominated Kathleen Merrigan, a Tufts University > professor,
> former aide for Sen. Patrick Leahy, D-Vt., and organic advocate as > deputy
> secretary. And Obama's FY10 budget outline included provisions to cut
> subsidies for the biggest farmers and crop insurance companies and > spend $1
> billion per year to improve child nutrition programs.
>
> Vilsack added to the furor when he urged anti-hunger advocates to side
> with the administration in the budget battle because it was more > important
> to help the 30 million children who eat school lunches and > breakfasts than
> the 90,000 farmers whose subsidies would be cut. The call to arms > didn't
> work.
>
> The anti-hunger leaders who won big increases in food stamps in the > 2008
> farm bill said they supported the administration's plans to increase > child
> nutrition spending, but they wouldn't presume to identify the source > of
> funding.
>
> And Vilsack himself has pulled back a little, telling USA Today that > he
> had "probably phrased that inartfully."
>
> Meanwhile, farm groups and farm leaders on Capitol Hill, including > Senate
> Budget Chairman Kent Conrad and House Agriculture Chairman Collin > Peterson,
> have all said the farm bill should not be reopened, and Conrad's > opposition
> has essentially killed any possibility that the budget will include > the
> Obama provisions.
>
> Farm lobbyists say they still believe Vilsack will be a good > Agriculture
> secretary because they believe the budget proposal came from the > bowels of
> OMB and that he was put in a position of trying to promote something > he and
> USDA staff did not have much of a role in.
>
> In an interview, Vilsack declined to comment where the proposal to cut
> subsidies came from but said the budget reflected the administration's
> priorities and he supports them.
>
> Vilsack said the day he took the job Obama told him that his three top
> goals for USDA are to improve child nutrition, develop renewable > fuels and
> wean American agriculture from its dependence on fossil fuels.
>
> The farm lobbyists will have to get used to the fact, however, that > many
> of Vilsack's priorities are not theirs and he comes from a somewhat
> different set of life experiences.
>
> An orphan, as Vilsack noted in his Senate confirmation papers, he > did not
> even have a last name before he was adopted. His adoptive parents > suffered
> from addiction problems and he has noted that his own weight > struggles,
> including his obesity as a child, have made him committed to improving
> children's diets and eating habits.
>
> On the day he was sworn in, Vilsack said he had decided to make civil
> rights a priority. Vilsack told CongressDaily he was motivated to > focus on
> civil rights because USDA was founded by President Abraham Lincoln and
> because the election of the first black president seemed to make it > "timely
> to resolve decades of long-standing complaints."
>
> Vilsack made his first trip out of Washington to speak to black > farmers at
> a Federation of Southern Cooperatives meeting in Georgia and later > called
> up the National Congress of American Indians and offered to address > their
> group about civil rights.
>
> Vilsack, who was born and grew up in Pittsburgh, says frequently > that if
> his adoptive parents were alive they would be amazed that he has > become
> Agriculture secretary.
>
> But he has also says he learned how much farmers depend on the > weather and
> the vagaries of world prices when he married an Iowa woman and > joined her
> father's law practice, doing farmers' taxes and helping them try to > stay in
> business in the farm crisis of the 1980s.
>
> When the latest Ag Census revealed that the smallest and biggest > farms had
> grown in number while the mid-sized farms had declined, Vilsack said > he
> wants to use USDA's resources to help them to stay in business and > keep
> rural communities from losing population.
>
> "My heart goes out to them," Vilsack said of the mid-sized farmers.
>
> Some lobbyists believe Vilsack favors small and mid-sized farmers > over big
> farmers, but he denies that that's the case. Farmers "along the > spectrum"
> are important, Vilsack said, and the big farmers can expect help > from him
> on biotech and export assistance and will also benefit from his > efforts to
> increase biofuels production and raise USDA's profile.
>
> But it seems clear that if the big farmers believe they still need > direct
> subsidies, they better get to know Vilsack and make a convincing > case to
> him before the next farm bill comes up in 2012.
>
>
> http://www.nationaljournal.com/congressdai...090317_6548.php
>
> -----
> POLITICAL ROUNDUP: OHIO REPUBLICANS SEEKING GREATER REDISTRICTING ROLE
>
> Republican state senators in Ohio seeking a greater role in drawing up
> congressional districts are working on a pair of competing plans for
> changing the redistricting process.
>
> Both plans give increased power to the minority party and take some > of the
> politics out of the current redistricting system, the Associated Press
> reported.
>
> "Nobody can defend the system that we have now," said Republican state
> Sen. Jon Husted, who is spearheading a committee to build consensus on
> wholesale reform of the process for redrawing congressional lines,
> including recasting the powerful state apportionment board and > developing
> clearer criteria for establishing districts.
>
> Husted, the former House speaker, has pushed election reform since
> successfully fighting a package of reform initiatives that voters > defeated
> in 2005.
>
>
> http://www.nationaljournal.com/congressdai...090318_9208.php
>
> -----
> POLITICAL ROUNDUP: REP. TAUSCHER TO BE TAPPED FOR STATE DEPARTMENT > POST
>
> Rep. Ellen Tauscher, D-Calif., is the Obama administration's choice > to be
> undersecretary of State for arms control and international security, > the
> Associated Press reported Tuesday.
>
> Tauscher was a supporter of Secretary of State Clinton when she ran > for
> the Democratic presidential nomination last year. The State > Department post
> requires Senate confirmation.
>
> Tauscher is chairwoman of the House Armed Services Strategic Forces
> Subcommittee and also is head of the New Democrats, a centrist group > of
> House Democrats.
>
>
> http://www.nationaljournal.com/congressdai...090318_2303.php
>
> -----
> POLITICAL ROUNDUP: RNC MAKES ANOTHER $100,000 TRANSFER TO NEW YORK GOP
>
> The Republican National Committee Tuesday announced it was > transferring
> $100,000 to the New York Republican State Committee.
>
> New York GOP Assemblyman Jim Tedisco is locked in a tight race with
> Democrat Scott Murphy for the House seat left vacant by the > appointment of
> Democratic Sen. Kirsten Gillibrand.
>
> The RNC sent $100,000 to the state Republican committee last week.
>
> "The RNC is proud to make another investment in our state parties > and the
> hard workers in our grassroots organizations. I am confident this
> additional investment will help ensure victory in the special > election in
> New York's 20th Congressional district," said RNC Chairman Michael > Steele.
> The special election is slated for March 31.
>
>
> http://www.nationaljournal.com/congressdai...090318_4083.php
>
> -----
> HILL BRIEFS: TWO GENERIC-BIOLOGIC BILLS SET STAGE FOR DRUG BATTLES
>
> Rep. Anna Eshoo, D-Calif., and House Energy and Commerce ranking > member
> Joe Barton forged an alliance Tuesday with Rep. Jay Inslee, D-Wash., > to
> introduce legislation rivaling another bipartisan group to allow FDA > to
> approve generic versions of biologic drugs.
>
> The bill by Eshoo, Barton and Inslee comes on the heels of one > introduced
> last week by Energy and Commerce Chairman Henry Waxman and Health
> Subcommittee ranking member Nathan Deal, R-Ga.
>
> The bills vary widely, with the Waxman-Deal measure favored by the
> generic-drug industry and the Eshoo-Barton-Inslee proposal backed by > the
> brand biologic drugmakers. Inslee previously proposed a bill that > was more
> brand-friendly.
>
> The rivalry, particularly among Democrats, sets up a tough road > ahead for
> Waxman as he tries to move the bill through his panel.
>
> Eshoo, Barton and Inslee would give brand biologic drugmakers a 12-> year
> period of exclusivity during which they can sell a new product free > from
> generic competition to recoup the cost of innovation. Their bill also
> requires a higher level of data from generic companies.
>
> In contrast, Waxman and Deal would award a five-year exclusivity > period
> and leave FDA more wiggle room to determine the data required for > approval.
>
>
> http://www.nationaljournal.com/congressdai...090318_7843.php
>
> -----
> HILL BRIEFS: HUTCHISON OFFERS CANDIDATES FOR REPUBLICAN SLOT ON FCC
>
> Senate Commerce ranking member Kay Bailey Hutchison has recommended > two
> women to fill a Republican vacancy at the FCC: Texas native Meredith > Baker,
> who ran a telecommunications-related division of the Commerce > Department,
> and Lee Carosi Dunn, general counsel for Sen. John McCain, R-Ariz., a
> former Commerce Committee chairman.
>
> Sources said Hutchison recently told Senate Minority Leader > McConnell that
> either choice would be fine to fill the spot vacated by the > departure of
> GOP commissioner Deborah Taylor Tate early this year.
>
> A McConnell spokeswoman said the selection process is ongoing but > declined
> to comment further.
>
> McConnell could recommend one of these names to the White House or > select
> another candidate, possibly a current or former staffer, sources > said. The
> Republican nominee is expected to be packaged with President Obama's > choice
> for chairman, his chief technology adviser Julius Genachowski.
>
> Sources also expect the White House to tap Mignon Clyburn, a South
> Carolina regulator and daughter of House Majority Whip Clyburn, to > replace
> Democratic commissioner Jonathan Adelstein, who is under > consideration to
> head the USDA's Rural Utilities Service.
>
>
>

[Snuffysmith]

> CongressDaily PM for Wednesday, March 18, 2009
>
> --------------------
> CONTENTS
>
> TAXES: RANGEL TO INTRODUCE SEPARATE TAX MEASURE ON BONUSES
> By Peter Cohn
>
>
> House Ways and Means Committee Democrats are drafting their own bill > to
> tax the bonuses of American International Group executives and other
> financial institutions that receive government aid. Ways and Means > Chairman
> Charles Rangel said today that it would differ from a Senate bill > under
> development that would impose a 35 percent surcharge on both > companies that
> pay out bonuses as well as individuals receiving them. Rangel's > proposal
> would tax only the recipients, but that additional tax could be as > high as
> 90 percent, a level not seen since the Eisenhower administration. > Rangel
> said he was satisfied with the approach laid out by Treasury Secretary
> Geithner in a letter to congressional leaders last night would > address the
> matter on the corporate end. He initially hesitated to attack > executive
> bonuses through the tax code, but said today he is "comfortable" > with the
> new approach, citing the magnitude of outrage. "This is a very > awkward way
> in which to handle a very serious problem," Rangel said, "but I am
> convinced the damage that has been done by these people to the > economy, as
> well as to American families, warrant unique tools to handle it as a
> deterrent. This is an extraordinary use of the code for an > extraordinary
> attack on our economy."
>
> Rangel said that Ways and Means Committee staff is drafting the bill > and
> that he expects it on the floor by the end of the week. "I think it > would
> be awkward to allow this to simmer over the weekend," Rangel said. > He met
> Tuesday with Senate Finance Chairman Max Baucus to discuss their > different
> approaches, and he called the session a "good meeting." But he > acknowledged
> each chamber might approve a different bill. Baucus said today the > Senate
> bill could be on the floor as early as today. Rangel said the > differences
> would have to be worked out quickly. "I don't think we can afford to
> conference," he said.
>
> Ways and Means Democrats met this morning to plot their approach. > After
> the meeting, panel members expressed outrage about the AIG bonuses > but said
> some issues remain to be worked out. "Quite frankly this is an > unusual role
> for the Ways and Means Committee, and it's not one that is our > preference,"
> said Rep. Earl Pomeroy, D-N.D. He said the bill should be as narrowly
> tailored as possible to target AIG and other bad actors. "The > broader the
> response, the more likely you are going to start stumbling into > unintended
> consequences," he said. "If [financial institutions] expand their > lending
> with additional capitalization, some of it will come from the federal
> government. That would be the way you get more credit flowing and more
> economic activity, and that's a good thing." But that could be > hampered if
> the reaction to AIG bonuses is excessive, he added. House Ways and > Means
> Select Revenue Measures Subcommittee Chairman Richard Neal, D-Mass., > made
> that point as well, noting that the government "enticed" TARP > recipient
> Bank of America to absorb Merrill Lynch. "But they'll get the > message,"
> Pomeroy said.
>
>
> http://www.nationaljournal.com/congressdai...090318_8066.php
>
> -----
> FINANCE: OBAMA: SHAREHOLDERS SHOULD GET GREATER SAY ON PAY
> By Bill Swindell
>
>
> Looking to get back on offense over bonuses paid to American > International
> Group executives, President Obama today promoted legislation that > would
> give shareholders a greater say over the salaries of top executives. > As his
> administration suffers through a backlash for not doing enough to > stop the
> $165 million in AIG bonuses, Obama endorsed an effort by House > Financial
> Services Chairman Barney Frank to curb extravagant executive salaries.
> "People are rightly outraged about these particular [AIG] bonuses, > but just
> as outrageous is the culture that these bonuses are a symptom of > that have
> existed for far too long; a situation where excess greed, excess
> compensation, excess risk-taking have all made us vulnerable and > left us
> holding the bag," Obama said before flying to California. Frank > sponsored a
> 2007 bill that would require public companies to include in their > annual
> proxy statements an advisory vote for shareholders to weigh in on > executive
> pay practices. It also would allow another vote if a company > provides a
> golden parachute pay package to executives while simultaneously > negotiating
> to buy or sell a company. The measure passed the House by a 269-134 > vote,
> but stalled in the Senate due to opposition from business interests.
>
> Republicans have seized on the AIG bonuses, targeting Treasury > Secretary
> Geithner for failing to stop them. They also noted that Democrats > failed to
> prohibit bonuses in firms that received government aid during > negotiations
> over the stimulus package, offering a weak amendment that failed to > stop
> the AIG bonuses; GOP members were excluded from the discussion. House
> Republicans today pushed a previous-question motion proposed by Rep. > Erik
> Paulsen, R-Minn., that would have forced the Treasury to recoup the
> bonuses. It was defeated by a strong Democratic majority. Obama has
> attempted to turn the issue back on the Republicans, noting that > many of
> his critics opposed the Frank bill in 2007. Fifty-five GOP members
> supported it, while 129 opposed it. "I think it is very important to > remind
> ourselves that there are a whole bunch of folks now who are feigning
> outrage about these bonuses, that a year ago, or two years ago or > three
> years ago said 'Well, we should never meddle in these compensation > plans.
> These are the best and the brightest. They know what they are doing. > That's
> part of the market,' " Obama said. "Now, suddenly they are > outraged." The
> Obama endorsement will give Frank further ammunition to move a bill > this
> Congress, after he was rebuffed in trying to put it into the economic
> rescue plan Congress passed last year.
>
> Obama also said his team is working on creating an authority similar > to
> the FDIC that could take over nonbank entities like AIG and place > them in
> receivership. He did not elaborate whether this would be part of a
> systemic-risk regulator that many policymakers are urging so the > collapse
> of one firm does not have the potential to take down others and > imperil the
> economy. Frank and others have complained that while the government > owns 80
> percent of AIG, it does not have enough say over its operations, > including
> the payment of the retention bonuses. "What they're able to do is > to, at
> the same time, protect creditors, depositors, and consumers, while > also
> exercising greater power proactively over institutions like AIG, > which is
> not a bank, which is an insurance company with a hedge fund on top > of it,"
> said Obama, who added he talked to Frank on the issue.
>
>
> http://www.nationaljournal.com/congressdai...090318_6997.php
>
> -----
> FINANCE: LIDDY TELLS COMMITTEE HE IS SEEKING RETURN OF BONUSES
> By Bill Swindell
>
>
> American International Group Chairman and CEO Edward Liddy testified > this
> afternoon that he has asked those AIG employees who received more than
> $100,000 in bonuses to return at least half of the payment and that > several
> have already done so. Noting the widespread public and congressional
> criticism of those bonuses, Liddy said, "I share that anger." Liddy > told
> the committee that "mistakes were made at AIG on a scale few could > have
> ever imagined possible," but said the bonuses should be honored as a > legal
> commitment of the government. "When you owe someone money, you pay > that
> money back," Liddy said. "We at AIG want to believe that we are all > in this
> together." During the hearing, subcommittee members noted there was a
> regulatory breakdown in not stopping AIG's moves into credit default > swaps
> -- a very risky and complicated insurance contract -- that led to its
> downfall because they were based largely upon faulty subprime > mortgages.
> Scott Polakoff, acting director of the Office of Thrift Supervision, > noted
> during the hearing that his agency had the authority to take action on
> AIG's business unit that oversaw some of the risky investment but > did not
> until it was too late.
>
>
> http://www.nationaljournal.com/congressdai...090318_9528.php
>
> -----
> DEFENSE: OBAMA TO SUBMIT FY09 WAR-FUNDING REQUEST NEXT WEEK
> By Megan Scully
>
>
> The Pentagon's top numbers-cruncher said today that he hopes to send
> details of the Obama administration's $75.5 billion request for war > funding
> for the remainder of FY09 to Capitol Hill next week. During testimony
> before the House Budget Committee, Robert Hale, who recently was > confirmed
> as Pentagon comptroller, told lawmakers that Defense officials are > still
> working with OMB on the supplemental spending request. Once the > request
> gets to Capitol Hill, Congress will have to work quickly to get a > bill to
> the White House for signing. Hale said in his written testimony that > the
> department needs the money by Memorial Day "to avoid funding > problems and
> to maintain continuity of operations for the troops." Congress has > approved
> $66 billion for the wars this fiscal year, so the additional spending
> request, if approved, would bring the war total for FY09 to $141.5 > billion
> -- more than $45 billion below last year's level.
>
> During today's hearing, Hale punted any questions about details of the
> budget request for FY10, which the administration plans to send to > Capitol
> Hill next month. Defense Secretary Gates has required senior Pentagon
> officials to sign nondisclosure agreements to prevent leaks of budget
> decisions, including anticipated cuts in some weapons systems. But > several
> committee Republicans took today's hearing as an opportunity to warn
> against cuts in the massive missile defense program. "It's being > looked at
> carefully with regard to whether we want to make some of those > difficult
> choices in that area," Hale told the committee, adding that no final
> decisions have been made on the budget. The FY10 Pentagon request > includes
> $533.7 billion for the base budget and another $130 billion to pay > for the
> wars next year.
>
> Meanwhile, Hale said the Defense Department has identified most of the
> shovel-ready projects on military bases slated for funding from the
> economic stimulus bill. The Defense Department received $7.4 billion > in
> stimulus funds, including $4 billion to upgrade existing facilities. > Hale
> said he expects those projects to be under way by April. "We are > pushing as
> fast as we can consistent with doing a good job and making sure that > we get
> benefit for the taxpayer out of these dollars," he said. The > military also
> received $2.2 billion for more in-depth construction projects, such as
> hospitals and day care centers, but Hale acknowledged that work on > those
> efforts will take longer to get started.
>
>
> http://www.nationaljournal.com/congressdai...090318_2798.php
>
> -----
> TRADE: SENATE APPROVES RON KIRK AS U.S. TRADE REPRESENTATIVE
> By Peter Cohn, with Carrie Dann contributing
>
>
> The Senate confirmed former Dallas Mayor Ron Kirk to be U.S. Trade
> Representative today, 92-5, winning over a reluctant Sen. John McCain,
> R-Ariz., and other Republicans concerned about mixed signals from > the Obama
> administration on trade. "Mr. Kirk has been less than forthcoming on a
> number of trade issues that affect this country, and some of the > positions
> that he has articulated are very dangerous for this nation's future,"
> McCain said in a floor speech, before concluding that he would vote to
> confirm Kirk regardless. McCain was particularly incensed about a > provision
> in the FY09 omnibus appropriations bill blocking Mexican trucks from
> extensive cross-border access, although the North American Free Trade
> Agreement stipulates that the trucks be allowed into the United > States.
>
> Mexico announced Monday that it was slapping retaliatory duties on 90
> agricultural and industrial exports worth $2.4 billion in response > to the
> language on Mexican trucks. "The signal that sends to the world that > the
> United States is on a path of protectionism which shows that at > least a
> majority of this body have ignored the lessons of history ... and that
> lesson obviously we learned in the Great Depression," McCain said. As
> McCain spoke, however, President Obama was meeting with the > Congressional
> Hispanic Caucus, where he announced he would travel to Mexico next > month to
> discuss the two nations' relationship.
>
> McCain also took Kirk to task for failing to endorse the pending free
> trade agreements with Colombia and South Korea, although a separate > deal
> with Panama appears to be on track for later this year. Senate Finance
> Chairman Max Baucus, who is more of a centrist on trade than many in > his
> party, said in Kirk's defense that the "shifting economic landscape" > and
> negative public opinion have necessitated a review of U.S. trade > policies.
> "Mayor Kirk will chart the right course," Baucus said. "He > understands that
> he must steady the tilting ship of public opinion. And he will do so > by
> rebuilding America's faith in the benefits of international trade." > Obama
> still has some additional top trade positions to fill. He announced > last
> Thursday that he would nominate Demetrios Marantis, Baucus' top trade
> staffer, to be deputy USTR, but Marantis withdrew from consideration
> Tuesday.
>
> In another matter concerning trade, Commerce Secretary nominee Gary > Locke
> pledged at his Senate confirmation hearing today to reduce U.S. trade
> deficits by boosting American exports to markets worldwide. "We cannot
> continue to have such large trade deficits with any one particular
> country," Locke said in response to a question from Sen. Byron Dorgan,
> D-N.D. "The Department of Commerce wants to be an aggressive and an > active
> champion of trying to reduce that trade deficit by helping sell more
> products and services around the world." Dorgan, who lamented soaring
> deficits with nations like China and Japan, described the current > imbalance
> as a major force fueling the global financial meltdown. "No one is
> describing these trade deficits as helping to undermine this economy > and
> help cause this crisis," Dorgan said. "It has, but no one wants to > talk
> about it." Sen. Mel Martinez, R-Fla., also urged Locke to serve as > "a clear
> voice on the issue of trade" to an administration that he said has > sent
> "confusing and mixed signals" to trade partners. If confirmed, Locke > will
> serve at the helm of the wide-ranging department that includes the
> International Trade Administration.
>
>
> http://www.nationaljournal.com/congressdai...090318_4574.php
>
> -----
> ENERGY: BENNETT THREATENS HOLD ON INTERIOR DEPT. DEPUTY NOMINEE
> By Darren Goode
>
>
> Sen. Robert Bennett, R-Utah, is threatening to hold up the > nomination of
> the Interior Department's second-in-command to get more answers on > why the
> Obama administration canceled oil and gas leases in his state. The > Senate
> Energy and Natural Resources Committee today approved the nomination > of
> David Hayes to be deputy Interior secretary, 17-5. Bennett afterward > said
> he will put a hold on the nomination until he sits down with Hayes and
> Interior Secretary Salazar about those leases. "We've been trying to > get an
> appointment with them; I think maybe now they'll give us one," > Bennett said
> after the vote. An Interior spokesman said Salazar and Hayes "are > looking
> forward to talking to Sen. Bennett about his concerns."
>
> Bennett was joined by Republican Sens. Jeff Sessions of Alabama, John
> Barrasso of Wyoming, James Risch of Idaho, and Jim Bunning of > Kentucky in
> voting against Hayes' nomination. Sessions afterward said Hayes should
> eventually be confirmed. "I'd like the president to get who he > wants. But
> if you're not going to respond to a respected senator's questions > then I
> think that is a basis for slowing this thing down," Sessions said. > Energy
> and Natural Resources ranking member Lisa Murkowski, who voted to > move his
> nomination out of the committee, said Hayes needs to better explain > the
> administration's decision before his nomination goes forward. "It > could be
> that we see his nomination held up until there is a response that is a
> satisfactory response," she said. Sen. Mary Landrieu, D-La., also > suggested
> she might vote against his nomination on the floor. "I think his > nomination
> will go forward, but I do think that Sen. Bennett has some legitimate
> concerns," she said. "Democrats and Republicans alike will not allow > any
> backward movement ... on domestic production onshore and offshore."
>
> Hayes sent a letter to Bennett this morning trying to further > clarify an
> initial response he gave the Utah Republican regarding coordination > between
> the Bureau of Land Management and the National Park Service on the > Utah
> lease sale. After initially telling Bennett that BLM did not > coordinate
> with the park service regarding the sale of leases near park service
> properties, Hayes said he followed up with acting National Park > Service
> Director Dan Wenk, who told him that the two agencies had > discussions after
> the sale was announced. The result of the talks was that some proposed
> leases were withheld by BLM for sale. Hayes pledged in the letter to > be
> involved in a review that Salazar has promised to conduct on those > lease
> sales.
>
> Bennett said he is not convinced. The letter today from Hayes "gave > me no
> indication whatsoever that the review of the secretary will be in > any way
> substantive," Bennett said. "I do not believe that we have been > assured
> that there will be an honest review." Sen. John McCain, R-Ariz., who > raised
> questions over Hayes' previous lobbying jobs and comments regarding > former
> President Ronald Reagan, ended up voting for his nomination. Hayes
> mentioned Reagan in a 2006 article for the Progressive Policy > Institute
> criticizing Western conservatives for backing logging, mining and > drilling
> without restrictions. McCain said he was offended by the "derogatory
> remarks" and questioned whether President Obama is breaking a campaign
> pledge on hiring former lobbyists in his administration. Hayes has > not been
> a lobbyist for two years. He had a previous run as Interior deputy
> secretary at the tail end of the Clinton administration from 1999 to > 2001
> before joining the lobbying world.
>
>
> http://www.nationaljournal.com/congressdai...090318_5197.php
>
> -----
> GOVERNMENT OPERATIONS: LOCKE, ON FAST TRACK, ASSURES SENATORS ON DTV,
> CENSUS
> By Carrie Dann
>
>
> Commerce Secretary-designate Gary Locke today assured the Senate > Commerce
> Committee there will be timely implementation of the transition to > digital
> television and told Republicans that statistical sampling will not > be used
> for apportionment purposes in the 2010 census. Speaking at a > confirmation
> hearing that brought up a range of issues from the monitoring of > commercial
> fishing to cybersecurity, Locke said the Commerce Department will not
> require additional resources or time to complete the DTV transition,
> delayed to June 12 in part due to a logjam of consumer applications > for
> discount coupons for DTV converter boxes. Locke said officials at the
> department's National Telecommunications and Information > Administration,
> which runs the coupon program, expect to have the backlog cleared by > next
> week, and the turnaround time for future requests for coupons is > expected
> to be less than 10 days. Locke warned that many Americans still do not
> realize that their analog televisions will go dark in June if they > do not
> install a converter box.
>
> Pressed by Senate Commerce ranking member Kay Bailey Hutchison, Locke
> affirmed that the yet-unnamed Census Bureau director will report > directly
> to him. House Republicans have been vociferous opponents of an initial
> Obama administration announcement, made when Sen. Judd Gregg, R-> N.H., was
> its choice to head the Commerce Department, that the Census Bureau > director
> would report to the White House. Gregg eventually withdrew his > nomination
> amid the census controversy. Addressing GOP fears that the > apportionment of
> federal resources and congressional redistricting -- determined by the
> decennial census -- would be influenced by a politicized inflation of
> minority and hard-to-reach populations, Locke vowed that the bureau > will
> use an actual head count for apportionment and has "no plans to use > any
> kind of statistical sampling with respect to population count."
>
> Throughout the hearing, members joked about their relief at > documentation
> showing that Locke's record is clean of the problems that have > derailed
> other Obama administration nominees. Praising Locke as a civil > servant who
> "gets it," Commerce Chairman John (Jay) Rockefeller promised to > accelerate
> the former Washington governor's move toward confirmation, > requesting that
> the nomination be referred by the committee to the full Senate with a
> rolling vote Thursday morning.
>
>
> http://www.nationaljournal.com/congressdai...090318_5592.php
>
> -----
> ENERGY: SENATE PANEL REFEREES CLASH OVER NUCLEAR ENERGY ISSUE
> By David Hess
>
>
> The Senate Energy and Natural Resources Committee presided today > over a
> squabble about federal subsidies for new nuclear power plants, even > as the
> chairman of the Nuclear Regulatory Commission boasted about a > streamlined
> procedure for approving a number of new facilities. NRC Chairman Dale
> Klein, noting a long hiatus when no additional generating plants were
> brought on line, told the panel the agency is now reviewing > applications
> from 17 firms for 26 new nuclear reactors and expects to get > requests by
> the end of next year for seven more plants. Interest has revived in
> construction of the highly expensive reactors ($8 billion a copy) in > the
> wake of efforts to reduce greenhouse gas emissions from coal-fed power
> plants. But the old disputes about the wisdom of federal subsidies > to build
> nuclear plants -- as well as where to dispose of spent nuclear fuel > over
> the long term and whether to begin reprocessing such fuel to > replenish the
> supply -- erupted anew at today's hearing.
>
> Marvin Fertel, head of the Nuclear Energy Institute, whose members > are the
> companies licensed to run the plants, strongly defended both the $18.7
> billion available in current federal law to guarantee construction > loans to
> the industry and the recycling of used fuel. His testimony was > challenged
> by Thomas Cochran of the Natural Resources Defense Council, who > argued that
> the government "should not use loan guarantees or any other > subsidies to
> promote inefficient use of nuclear power ahead of low-carbon energy
> alternatives that will be available sooner, at lesser cost, and with > fewer
> environmental impacts." Cochran also maintained that the > reprocessing of
> commercial spent fuel "has proven to be more costly and less safe" > than
> simply replacing spent fuel with fresh supplies of enriched uranium. > On the
> committee itself, there appeared to be little support for > withholding the
> loan guarantees for nuclear energy expansion. Both Energy and Natural
> Resources ranking member Lisa Murkowski and Sen. Mary Landrieu, D-La.,
> mounted vocal support for more nuclear reactors to help bolster the
> nation's increasing demand for electricity without adding further to > the
> threat of global warming.
>
> Members also expressed concern about the Obama administration's > intention
> to shut down the Yucca Mountain nuclear waste repository in Nevada. In
> response to several questions from the panel, Klein said the only
> alternative for storage now, without Yucca Mountain, is on-site "dry-> cask
> storage" or in pools at existing plants. When Sen. John McCain, R-> Ariz.,
> questioned the security of such sites from terrorist attacks, Klein > said
> the government "watches this very carefully and we consider it to be > very
> secure." If there was any agreement among the various voices on the
> committee and at the witness table, it centered on the desire to > find a
> safe, long-term solution to the disposal of nuclear waste. "Spent > fuel is
> one of the biggest unsolved problems facing the industry," Energy and
> Natural Resources Chairman Jeff Bingaman said. Even though the
> administration has ruled out Yucca Mountain, Fertel said existing law
> enables Congress to insist that the ongoing review of Yucca's license
> application "should continue."
>
>
> http://www.nationaljournal.com/congressdai...090318_2789.php
>
> -----
> LABOR: SENATE HELP CLEARS $5 BILLION VOLUNTEER WORK FORCE BILL
> By Terry Kivlan
>
>
> The Senate Health, Education, Labor and Pensions Committee approved > a $5
> billion five-year plan today to more than double the volunteer work > force
> of domestic Peace Corps-type programs and expand their missions. The > bill
> cleared the committee on a voice vote, with Sen. Tom Coburn, R-Okla.,
> warning beforehand that he intended to seek changes in the > legislation when
> it reached the Senate floor. Coburn said he did not want to delay the
> progress of the bill but believed it should contain "metrics" to > ensure it
> was managed properly. "You can't manage what you can't measure," he > said.
> Sen. Barbara Mikulski, D-Md., who presided over the markup in the > absence
> of ailing HELP Chairman Edward Kennedy, pledged to work the Coburn > on his
> amendments. The bill received a ringing endorsement from Sen. Orrin > Hatch,
> R-Utah. Hatch, who co-sponsored the bill with Kennedy, said that > although
> critics might dismiss national service programs as "paid > volunteerism,"
> their results "tell a different story."
>
> The Senate bill would reauthorize the National and Community Service > Act
> of 1990 and increase the number of full-time and part-time national > service
> volunteers eligible for college scholarship aid under the law from the
> current 75,000 to 175,000. The stipend for one year's service would be
> hiked from $4,725 to $5,350. Building on the Clinton-era AmeriCorps
> initiative, the legislation would create a series of service > programs in
> which new volunteer recruits would be sent into low-income > communities to
> carry out a range of tasks, such as mentoring and tutoring potential > high
> school dropouts, cleaning up parks and other public areas, launching
> efforts to upgrade energy efficiency, and helping low-income > citizens gain
> better access to health care services.
>
> Health, Education, Labor and Pensions ranking member Michael Enzi
> expressed reservations about a provision in the House bill requiring
> competition for grants in the program for senior volunteers. He said > he
> recognized that competition could serve as a catalyst for improving
> performance, but added, "We don't want competition for the sake of
> competition." Mikulski said she was confident that a "third way" > could be
> found in talks with House members. The legislation would offer tax
> incentives to employers who give employees paid leave to become > national
> volunteers. Retired volunteers would be eligible for Encore > Fellowships if
> they extended their year of service. The fellowship awards could be > passed
> along to the children or grandchildren of the recipients.
>
>
> http://www.nationaljournal.com/congressdai...090318_2972.php
>
> -----
> HILL BRIEFS: FED KEEPS RECORD-LOW RATE, WILL BUY BONDS, SECURITIES
>
> Finance. With a key interest rate already near zero, the Federal > Reserve
> today announced some other tools it will use to try to jolt the > country out
> of recession. After a two-day meeting, the Fed left its bank lending > rate
> between zero and 0.25 percent, a record low, and said it will buy up > to
> $300 billion in long-term government bonds over the next six months, > the
> Associated Press reported. The Fed said it will purchase more
> mortgage-backed securities from Fannie Mae and Freddie Mac in an > effort to
> bolster the crippled housing market. The decision to buy government > bonds
> is aimed at lowering the costs of many kinds of debt - from > mortgages to
> corporate bonds - that are linked to Treasury rates. Fed purchases > would
> boost Treasury prices and drive down their rates. That would ripple > through
> and lower rates on other types of debt.
>
>
> http://www.nationaljournal.com/congressdai...090318_5072.php
>
> -----
> HILL BRIEFS: NEW DEMOCRATIC COALITION HEAVY ON FROSH
>
> Senate. Freshmen are heavily represented in a coalition of 15 moderate
> Senate Democrats that officially announced its formation today. The
> centrists said they will meet every other Tuesday before the > Democratic
> Caucus lunch to discuss legislative strategies focused on fiscal
> discipline, particularly in the budget. The coalition will be led by > Sens.
> Evan Bayh of Indiana, Thomas Carper of Delaware and Blanche Lincoln of
> Arkansas. Freshman Sens. Michael Bennet of Colorado, Mark Begich of > Alaska,
> Kay Hagan of North Carolina, Jeanne Shaheen of New Hampshire, Mark > Udall of
> Colorado, and Mark Warner of Virginia are in the group. Other > participants
> are Sens. Herb Kohl of Wisconsin, Mary Landrieu of Louisiana, Joseph
> Lieberman of Connecticut, Claire McCaskill of Missouri, Ben Nelson of
> Nebraska and Bill Nelson of Florida. Senate Majority Leader Reid > offered
> praise for the group. "Established organizations like Third Way and > new
> ventures like this group offer us a new opportunity to get things > done, and
> I support every effort that puts real solutions above political > posturing,"
> Reid said.
>
>
> http://www.nationaljournal.com/congressdai...090318_7467.php
>
> -----
> HILL BRIEFS: THOMPSON, HARMAN URGE CHANGES TO DHS PERSONNEL OFFICE
>
> Homeland Security. House Homeland Security Chairman Bennie Thompson > and
> Homeland Security Intelligence Subcommittee Chairwoman Jane Harman,
> D-Calif., today urged the Homeland Security Department to overhaul its
> Office of Intelligence and Analysis, which works with state, local, > and
> tribal governments and the private sector to ensure data related to
> potential threats is collected, analyzed and disseminated. The office
> should end its "top-down approach" to intelligence and put its > nonfederal
> partners' needs first, Thompson said at a subcommittee hearing. > "Refocusing
> I&A as a national fusion center -- with strict privacy and civil > liberties
> protections in place -- would be a step in the right direction," he > said.
> Harman has unsuccessfully pushed Homeland Security Secretary > Napolitano to
> name a state or local law enforcement official to head I&A, calling > the
> void "a huge missed opportunity." Napolitano might yet name a deputy > from
> that community for that post. A DHS spokeswoman declined to comment on
> personnel matters.
>
>
> http://www.nationaljournal.com/congressdai...090318_8833.php
>
> -----
> HILL BRIEFS: HOUSE PASSES SIX-MONTH EXTENSION OF FAA FUNDING
>
> Transportation. By voice vote, the House this afternoon extended > funding
> for the FAA from March 31 through the end of the fiscal year, Sept. > 30. The
> bill would give lawmakers more time to work on the FAA reauthorization
> bill, which cleared the House Transportation and Infrastructure > Committee
> this month. That House bill is similar to legislation it passed in > the last
> Congress but which failed to get out of the Senate.
>
>
> http://www.nationaljournal.com/congressdai...090318_5044.php
>
> -----
> HILL BRIEFS: BIDEN ANNOUNCES FOOD AIDE
>
> Economy. Vice President Biden, meeting with local officials charged > with
> spending stimulus funds, announced this morning that $100 million of > the
> money will be used to feed low-income elderly. The White House said > up to
> 14 million meals will be provided to tens of thousands of people at > senior
> centers and through home delivery programs. "Today more senior > citizens are
> in need, but the programs they depend on are on the brink of > reducing their
> services or closing down," Biden said. "The Recovery Act will help > ensure
> older Americans are not forced to choose between paying bills and > buying
> food." Many states and local governments have reported trouble meeting
> increased demand for food programs.
>
>
> http://www.nationaljournal.com/congressdai...090318_4102.php
>
> -----
> HILL BRIEFS: FALCONER LEAVING WTO DOHA POST
>
> Trade. Crawford Falconer, chairman of the World Trade Organization > Doha
> Round agricultural talks in Geneva, is leaving that post to become a > deputy
> secretary of the New Zealand Ministry of Foreign Affairs and Trade, > the
> nation's embassy in Washington confirmed today. The New Zealand > government
> has offered David Walker, a diplomat and trade negotiator, to chair > the
> talks, but the WTO has not decided whether to accept him, an embassy
> spokeswoman said.
>
>
> http://www.nationaljournal.com/congressdai...090318_8973.php
>
> -----
> HILL BRIEFS: KERRY, LUGAR BACK ADDITIONAL IMF CONTRIBUTIONS
>
> Foreign Affairs. Senate Foreign Relations Chairman John Kerry and > ranking
> member Richard Lugar today supported the administration's call for > billions
> of dollars in additional contributions to the International Monetary > Fund.
> They said the IMF and the World Bank were essential to ending the > global
> recession and to add financial and political stability in the > developing
> world. Kerry said the international institutions that lend money to
> struggling countries "are not only essential to long-term stability" > but to
> the U.S. ability to withstand the economic crisis. "We are convinced > the
> IMF needs additional funds. [Treasury] Secretary Geithner has > requested it,
> and I support that." He noted that Geithner proposed an additional > $500
> billion for the IMF, with $100 billion this year. The senators spoke > after
> a meeting with IMF managing director Dominique Strauss-Kahn and > World Bank
> President Robert Zoelleck. Strauss-Kahn said to avoid the risk of > "having
> countries destabilized economically and politically, we need more
> resources." Kerry called an increased IMF contribution "a small > investment
> compared to the stakes if this starts to unravel." Lugar said there > has not
> been a whip check of how the Senate Republicans feel about > additional IMF
> funding, but there was bipartisan support within the committee.
>
>
> http://www.nationaljournal.com/congressdai...090318_9978.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "Obviously, I don't want people in the United States to commit > suicide.
> That's not my ethic. I'm pro-life."
>
> -- Senate Finance ranking member Charles Grassley speaking on CNN > today,
> walking away from comments earlier this week that business > executives of
> failed firms receiving bailout funds should commit suicide.
>
>
> http://www.nationaljournal.com/congressdai...090318_7990.php
>
> -----

[Snuffysmith]

> CongressDaily AM for Thursday, March 19, 2009
>
> --------------------
> CONTENTS
>
> FINANCE: HOUSE TO SLAP AIG BONUSES WITH TAXES
> By Bill Swindell and Peter Cohn, with Michael Posner contributing
>
>
> Congressional Democrats are taking the first step today to stem the
> political fallout over the federal government's $182 billion role in
> propping up American International Group with a House vote today on
> legislation to tax executive bonuses at the insurance carrier.
>
> The House bill is the first effort to reclaim $165 million in > retention
> bonuses paid to AIG executives, an action that has served as a tipping
> point for populist anger against the federal government's efforts to
> allocate more than $1 trillion in loans since September to at-risk > firms
> whose potential collapse could have threatened the overall economy.
>
> "Because they could not use sound judgment in the use of taxpayer > funds,
> these AIG executives will pay the Treasury in the form of this tax," > House
> Speaker Pelosi said. "I urge all my colleagues to vote in favor of > this
> legislation and in favor of recovering taxpayer dollars and protecting
> Americans from the continued poor judgment of some of America's > largest
> companies."
>
> The outrage over the bonuses has become the first major challenge of > the
> Obama presidency as Republicans seek the scalp of Treasury Secretary
> Geithner, who they claim should be the fall guy because he did not > stop the
> bonuses -- some that went to individuals who already left the > company --
> before they were distributed.
>
> "Secretary Geithner either didn't know about the bonuses and was > grossly
> negligent or he did know and failed to bring this to the president's
> attention," said Rep. Darrell Issa, R-Calif. "Either way, the end > result
> has been a significant waste of taxpayer dollars and he should take
> immediate responsibility and resign."
>
> But beyond the political broadsides lies the vote-counting reality: > The
> Obama administration must stem the controversy over continuing > funding of
> the AIG bailout in order to pick up support for any further funding it
> might request from Congress to help buoy the banking industry and get
> credit flowing.
>
> The Obama budget request would allow Treasury to provide up to $750
> billion in new aid to the financial industry to help buy off the toxic
> mortgage debt that is dragging down banks. It is a request many > analysts
> think the administration will have to make, but would have trouble > passing
> in the current environment.
>
> The AIG case has been problematic because the Federal Reserve and > Treasury
> have authorized seven different programs to keep the insurance > conglomerate
> solvent with no end in sight.
>
> "This AIG bonus scandal is simply the outrage of the week and the > week is
> not yet half over," said Rep. Jeb Hensarling, R-Texas. "The greater > outrage
> should be the almost $180 billion of taxpayer exposure, and growing. > The
> greater outrage ought to be four bailouts later no end in sight and > no plan
> of sustainability or exit strategy that has been explained to this > [House
> Financial Services] Committee."
>
> To that end, Financial Services Chairman Barney Frank and the Obama
> administration are working on legislation to create an authority > similar to
> the FDIC that could take over nonbank entities like AIG and place > them in
> receivership so they could unwind the assets, reorganize and emerge > as a
> smaller firm that could make a profit.
>
> AIG moves into credit default swaps -- a very risky and complicated
> insurance contract -- led to its downfall because they were based > largely
> upon faulty subprime mortgages.
>
> "It may not be the same agency for all institutions. You want to get > some
> expertise. The model [of] how the banks do it is a good model," > Frank said.
>
> The first action will be today's House vote on a bill that would > impose a
> 90 percent tax on individuals receiving bonuses at companies taking $5
> billion or more in government aid, limited to those earning more than
> $250,000 annually.
>
> That would increase taxes on bonuses paid by AIG and others to > levels not
> seen since 1963. "It's basically taxing the hell out of the bonuses. > And if
> you do that, you in effect make people more or less disgorge these
> bonuses," said Rep. Artur Davis, D-Ala., a Ways and Means member. > "It's
> confiscatory taxation, and it should be confiscatory taxation > because we're
> trying to undo unjust enrichment."
>
> The obvious target of the Democrats' ire is AIG, but placing the $5
> billion threshold in the bill would sweep in about a dozen other > firms that
> have received taxpayer assistance.
>
> That includes financial institutions like Morgan Stanley, which > received
> $10 billion as part of the Troubled Asset Relief Program and is > considering
> $3 billion in retention bonuses, which drew a rebuke this week from > Sen.
> Robert Menendez, D-N.J., and others.
>
> Bank of America Corp. and Citigroup Inc., which received $45 billion > each,
> would be covered by the bill, as would JPMorgan Chase & Co. and > Wells Fargo
> & Co., at $25 billion each.
>
> Automaker General Motors Corp. could be subject to the restrictions, > as
> would federally backed mortgage financiers Fannie Mae and Freddie Mac.
>
> Fannie Mae plans to give retention bonuses of at least $1 million to > four
> key executives as part of a plan to keep hundreds of employees from > leaving
> the government-controlled company, according to a recent filing with > the
> SEC.
>
> Other firms receiving more than $5 billion in aid from the TARP > include
> Goldman Sachs Group, U.S. Bancorp and PNC Financial Services Group.
>
> "Make no mistake about it; we will not tolerate these abuses. We > will send
> the clearest of signals, a solid red light, to say 'Stop, do not go
> there,'" Ways and Means Chairman Charles Rangel said.
>
> The bill would cover any bonus awarded to government beneficiaries > since
> Jan. 1. It would not apply to the $18 billion in bonuses paid out > last year
> by Wall Street firms. The measure would not distinguish between > retention
> and nonretention bonuses, such as performance incentives, and firms > that
> repay TARP funds would be exempt.
>
> Rangel's approach is different than a bill authored by Senate Finance
> Chairman Max Baucus and ranking member Charles Grassley, which would > slap a
> 35 percent excise tax on companies that pay out the bonuses as well > as the
> individuals receiving them. Retention bonuses would be subject to > the full
> tax, while other bonuses would be exempt up to $50,000.
>
> The Senate could take up its bill soon, but Baucus said he hoped it > didn't
> come to that and that AIG employees return the bonuses. "There's so > much
> pressure on AIG right now ... but we'll introduce the bill as > leverage," he
> said.
>
> Thus far, other than Grassley, few Republicans are jumping on board. > They
> prefer to blame the Treasury, the Federal Reserve and the Obama
> administration.
>
> But there is no unanimity among Democrats that the tax angle is the > best
> course to recoup the bonuses.
>
> The House Judiciary Committee Wednesday approved legislation that > would
> allow the Justice Department to file civil lawsuits to recover prior
> excessive payments for all companies receiving more than $10 billion > in
> federal financial assistance since Sept. 1. It is tailored to seek > recovery
> of AIG's $165 million in bonuses.
>
> Critics of the bill questioned whether it was constitutional, > including
> its reliance on the commerce clause within the Constitution. They > argued
> that ordering the recovery of the money could violate the Fifth > Amendment
> takings clause that limits confiscation of property. But Judiciary > Chairman
> John Conyers argued that he has been told by attorneys the bill is
> constitutional.
>
> The congressional pressure has had some effect. AIG CEO Edward Liddy
> testified Wednesday that he has asked those AIG employees who > received more
> than $100,000 in bonuses to return at least half of the payment and > that
> several have done so.
>
> Frank said it is a better option for the federal government to bring a
> shareholder lawsuit against the employees who do not return the > bonuses,
> noting taxpayers own about 80 percent of the firm.
>
> "That ought to reassure people who worry that the Congress is going to
> abrogate contracts. We are the major shareholder there. We ought to > bring a
> lawsuit as the shareholders against the people who are getting our > money
> and didn't deserve it," Frank said.
>
> Geithner met with Frank Wednesday night to talk about how to go > forward on
> legislation this spring on the FDIC-like agency to place troubled > firms
> into receivership. The idea seems to have some support across the > aisle.
>
> Hensarling said he was receptive to that idea because he believes AIG
> should be placed into receivership because it is a failed firm. If "as
> majority shareholders, we have the ability to place AIG into > receivership,
> then we ought to do it," Hensarling said.
>
> Meanwhile, Senate Banking Chairman Christopher Dodd said Wednesday > night
> that, at the request of administration officials, he agreed to > changes in
> his Senate-passed amendment to the stimulus bill to ban bonuses for
> executives of firms who got federal assistance.
>
> But he said administration officials "gave us no indication that > this was
> in any way related to AIG. Let me be clear -- I was completely > unaware of
> these AIG bonuses until I learned of them last week."
>
>
> http://www.nationaljournal.com/congressdai...090319_6868.php
>
> -----
> IMMIGRATION: HISPANIC CAUCUS SAYS OBAMA WILL BACK ITS PUSH FOR > OVERHAUL
> MEASURE THIS YEAR
> By Chris Strohm, with George E. Condon Jr. contributing
>
>
> Hispanic lawmakers on Wednesday said they believe President Obama will
> support their efforts to move forward with legislation this year to
> overhaul the nation's immigration system and give millions of > undocumented
> workers in the country a path to legal citizenship.
>
> Members of the Congressional Hispanic Caucus said they met for an hour
> with Obama at the White House and "shared their plan and agenda for > moving
> comprehensive immigration reform forward." They left the meeting > excited
> about the prospects of passing comprehensive immigration > legislation, even
> though previous efforts in Congress failed in recent years.
>
> "The president made clear to us that he is a man of his word. He > clearly
> understands the consequences of a broken immigration system," said > Hispanic
> Caucus Chairwoman Nydia Velazquez, D-N.Y. "President Obama has > committed to
> working with us as we continue to lead on this issue, and serve as
> advocates for the immigrant community."
>
> Rep. Luis Gutierrez, D-Ill., chairman of the caucus' immigration task
> force, said after the meeting that Obama promised to introduce
> comprehensive immigration reform "in the very near future."
>
> "The Latino community supported President Obama overwhelmingly in the
> election, and they remain energized not only by his victory but also > by his
> message of support for comprehensive immigration reform," Gutierrez > added.
> "I believe that a plan is forthcoming, and that we will see real > change
> this year."
>
> It was not clear, however, if the White House would push congressional
> leaders to actually take up immigration reform legislation this year.
>
> The White House described the meeting as "robust and strategic," > saying
> Obama "discussed how the administration will work with the CHC to > address
> immigration concerns in both the short and long term."
>
> A congressional aide said Obama committed to work with the Hispanic > Caucus
> and "start the process" of holding meetings and forums on immigration
> reform within the next few months.
>
> "We look forward to working with him strategically," said Sen. Robert
> Menendez, D-N.J.
>
> A White House aide said Obama will make a public statement on > immigration
> reform "at some point." But discussions at Wednesday's meeting did > not go
> into detail on the format for immigration forums, the aide added.
>
> In a conference call Wednesday, immigration advocates told reporters > they
> are revved up and already at work plotting their legislative strategy.
>
> "The great thing is that the political space is there," said Ali > Noorani,
> executive director of the National Immigration Forum. He said there > is "a
> moral, political and economic" reason for Congress to take up > immigration
> reform this year.
>
> For now, immigration reform advocates are focused on building a broad
> coalition of labor, religious and immigrant communities. They > believe the
> political environment will be ripe in the fall for immigration reform
> legislation. "I think this is going to be a tough one to punt on this
> year," said Simon Rosenberg, president of NDN, which describes > itself as a
> progressive think tank.
>
> Rosenberg said he believes politicians will get "worn down" over the
> summer over other political battles, especially on healthcare reform.
> Compared to the other battles, immigration reform should be > "relatively
> easy" to pass, he predicted.
>
>
> http://www.nationaljournal.com/congressdai...090319_3293.php
>
> -----
> ETHICS: COMMITTEE QUESTIONS REID, DURBIN ABOUT TALKS WITH BURRIS
> By Dan Friedman
>
>
> The Senate Ethics Committee heard Wednesday from Senate Majority > Leader
> Reid and Majority Whip Durbin regarding conversations with Sen. Roland
> Burris, D-Ill., prior to his seating, Senate aides said, offering > the first
> public sign that the panel is moving along in its probe of the > appointed
> lawmaker.
>
> Durbin said Wednesday that he met last week with a prosecutor in > Illinois'
> Sangamon County, who is investigating whether Burris committed > perjury when
> he failed to mention contacts with several associates of ousted > Illinois
> Gov. Rod Blagojevich during questioning by a state House impeachment > panel
> in January.
>
> "In both instances, I shared my recollection of events leading up to > and
> following Senator Burris' appointment to the Senate," Durbin said in a
> statement.
>
> It was unclear if Reid has met with the prosecutor, but Reid did > tell the
> Ethics Committee of conversations he had with Burris before he > joined the
> Senate. Reid and Durbin initially refused to seat Burris after > Blagojevich
> appointed him, but relented.
>
> The Ethics Committee appears to be focused on Burris' testimony > before the
> Illinois House panel, which was investigating impeachment of > Blagojevich
> for misdeeds including allegedly trying to trade the appointment to > the
> Senate seat for campaign cash or other favors.
>
> Asked about contacts with several Blagojevich associates, Burris named
> only one. In a subsequent affidavit, he acknowledged contact with
> Blagojevich's brother Rob and others. Burris has also said he
> unsuccessfully tried to raise money for the governor.
>
> Burris spokeswoman Delmarie Cobb said Wednesday that Burris did not > have
> to appear before the committee but would cooperate with all inquiries.
>
> "We welcome any investigation because it is going to only prove that > there
> was not any wrongdoing," she said. Cobb said Burris and his lawyers > have
> not heard from the Ethics panel.
>
> Robert Walker, a former House and Senate Ethics committee staff > director,
> said the interviews of Durbin and Reid suggest the committee is moving
> along in its investigation and is close to talking to Burris. "I don't
> think the committee would interview such prominent fact witnesses as > Sen.
> Reid and Sen. Burris until they had taken all the necessary > preliminary
> steps," Walker said.
>
> The Sangamon County probe might be wrapping up. Cobb said the state's
> attorney has told Burris' lawyers to expect a decision on whether > the case
> will be dropped or pursued this week or next week. Cobb said Burris > has
> sent the prosecutor a document making the case that Burris did not > commit
> perjury because the impeachment panel did not give Burris a chance to
> answer fully.
>
> "The questioning went off in another direction. The questioners > never came
> back to what they asked," she said.
>
>
> http://www.nationaljournal.com/congressdai...090319_2719.php
>
> -----
> GOVERNMENT OPERATIONS: PANEL TO PRESS STIMULUS WATCHDOG FOR MORE
> TRANSPARENCY
> By Carrie Dann
>
>
> The man assigned to put stimulus spenders on the hot seat will face a
> grilling today in his first appearance before Congress as the > government's
> top watchdog for waste and fraud in the allocation of $787 billion in
> federal stimulus funds.
>
> Members of the House Oversight and Government Reform Committee will > turn
> the bright lights on Earl Devaney, whom President Obama named > chairman of
> the Recovery Accountability and Transparency Board. Questions are > expected
> to focus particularly on how he will achieve the president's promise > of a
> transparent online database that will let taxpayers track the flow of
> stimulus cash.
>
> The existing Web effort, administered by OMB, has been roundly > criticized
> for its lack of streamlined data reporting requirements from federal
> agencies and states responsible for distributing payouts.
>
> Speaking Wednesday to city and county officials, Devaney said > control of
> the much-touted Recovery.gov site -- which he said gets 3,900 hits per
> second -- will be transferred from OMB to his new transparency board > within
> 30-45 days.
>
> Devaney acknowledged the challenges facing the Web engineers but > remains
> optimistic that the final result will allow unprecedented > transparency. In
> written testimony prepared for today's hearing, he makes the case that
> federal administrators have few good models from which to draw > inspiration.
>
> "Simply stated, the federal government's systems have never been fully
> successful at producing timely and reliable data," Devaney says in his
> testimony. "Add to that problem the difficulty of transmitting and
> reporting data up through multiple layers of government, as this > [American
> Recovery and Reinvestment] Act contemplates, and you begin to > understand
> the basis for my concern."
>
> At the hearing, Oversight and Government Reform ranking member Darrell
> Issa will concentrate his line of questioning on the depth of data > that
> subrecipients of stimulus payouts will be required to report back to
> overseers, according to an aide.
>
> Issa objects to a provision in the reporting guidance written by OMB
> Director Orszag, which directs that only the first tier of > recipients of
> stimulus funds -- but not contractors or subgrantees downstream -- is
> subject to detailed public accounting requirements.
>
> "After that, the money trail runs cold," Issa says in a statement > prepared
> for delivery at the hearing. "Under this plan, there will be zero
> accountability for any contractors, lobbyists or special interests > that get
> taxpayer money."
>
> Calling that limitation contrary to the Obama administration's
> transparency pledge, the aide said Issa will urge Devaney to weigh > in. "The
> onus of living up to that promise of transparency is on the
> administration," the aide said.
>
> Committee members are also expected to question Devaney about the
> availability of resources to agencies charged with short-circuiting > waste
> and fraud as they rapidly pay out billions of dollars for stimulus
> programs.
>
> Although the stimulus bill gave more money to federal inspectors > general,
> some state and community leaders are concerned that no additional > funds
> were directed to state and local auditors best equipped to catch
> mismanagement and thievery.
>
> Devaney indicated Wednesday to city and county officials that Congress
> will be addressing the dearth of funding for auditors, who have been
> increasingly strapped for cash as the recession has deepened and local
> governments have tightened their belts.
>
> "I think attention has been drawn to this issue and people on the > Hill are
> thinking about what they might be able to do," he said. "I need all > the
> help I can get, and we all have to work together in this."
>
> The new stimulus bulldog, who has been praised for his candid > demeanor and
> hardnosed investigation of the Jack Abramoff scandal during his > tenure as
> inspector general at the Interior Department, said he is operating > in his
> old office space and is even still waiting for new phone lines > dedicated to
> his board.
>
> In addition to overseeing the huge stimulus spending effort, Devaney > will
> have to keep an eagle eye on his own $84 million budget, most of > which will
> pay for the creation and administration of the Recovery.gov site.
>
> The board, comprised of inspectors general from major agencies > receiving
> stimulus funds, will meet for the first time next week.
>
>
> http://www.nationaljournal.com/congressdai...090319_5707.php
>
> -----
> HEALTH: ROCKEFELLER CONSIDERS GIVING MEDPAC BROADER AUTHORITY
> By Anna Edney
>
>
> Senate Finance Health Subcommittee Chairman John (Jay) Rockefeller,
> D-W.Va., posed the idea Wednesday of taking Medicare reimbursement
> decisions out of the hands of lawmakers and Medicare employees and > giving
> the payment decisions to an independent group where outside influences
> might not hold as much sway.
>
> The plan, which he offered at his panel's first hearing this year on
> overhauling health care, is to tap Congress' gurus on federal > healthcare
> spending, the Medicare Payment Advisory Commission.
>
> "You take a MedPAC and give them the money and time to ... go all > around
> the country and they can dissect health care," Rockefeller said. "To > me,
> they're a lot better deal than having Congress do it and politics do > it,"
> he added later.
>
> Lawmakers face intense pressure from the physician lobbies, medical
> equipment suppliers, hospital trade groups, insurance giants and other
> campaign contributors from the healthcare industry when it comes > time to
> slash payments to scrounge together offsets or otherwise set > reimbursement
> rates.
>
> "It's not pretty; it's not quality; it's not American medicine the > way it
> should be," Rockefeller said of the current process.
>
> His suggestion to elevate MedPAC and substantially increase its > resources
> faced defiance from other agencies that bristled at the hint of a turf
> battle.
>
> 'The idea of having that independent expertise has a lot to do with > the
> mission of AHRQ," Carolyn Clancy, director of the Agency for > Healthcare
> Research and Quality, said.
>
> Marjorie Kanof, managing director of health care for GAO, quipped, > "I'm
> glad you think so highly of MedPAC, since it is GAO that appoints > them."
>
> Rockefeller said one hole in his proposal lies in his inability to > link a
> reimbursement-setting commission to improving quality of care. One > of the
> basic tenets of a healthcare overhaul nearly every lawmaker and > special
> interest group agrees must occur is a payment system based on quality
> rather than volume of care, as is now the case.
>
> Coincidentally, MedPAC Executive Director Mark Miller was speculated > to
> have been President Obama's pick to head the Centers for Medicare and
> Medicaid Services, gossip Miller quickly quashed. Rockefeller, who > said he
> views CMS as no more than a disburser of payments, would bestow as > much, if
> not more, power on Miller in his current position.
>
> Rockefeller suggested the groups that set quality benchmarks for the
> healthcare providers need more coordination. Comparing the scattered
> process to "stovepiped" intelligence collection, he said the > healthcare
> world might need a central figure based on the national intelligence
> director, created after the Sept. 11, 2001, terrorist attacks, to
> coordinate their efforts.
>
> "We need an entity at the federal level that coordinates public and
> private healthcare quality efforts," Rockefeller said. "I believe the
> Agency for Healthcare Research and Quality can fulfill that > responsibility
> even more than it does now -- and we should give AHRQ greater > authority and
> resources to do so."
>
>
> http://www.nationaljournal.com/congressdai...090319_8575.php
>
> -----
> TRANSPORTATION: BILL EXTENDING FAA FUNDING GOES TO WHITE HOUSE
>
> The Senate approved a six-month extension of FAA funding by unanimous
> consent late Wednesday, just hours after the House passed the same > measure
> by voice vote.
>
> The bill, which now goes to President Obama, extends FAA funding from
> March 31 through the end of the fiscal year, Sept. 30, giving > lawmakers
> more time to work on an FAA reauthorization bill that cleared the > House
> Transportation and Infrastructure Committee this month.
>
> The House bill is similar to legislation it passed in the last > Congress
> but that failed to get out of the Senate.
>
>
> http://www.nationaljournal.com/congressdai...090319_4635.php
>
> -----
> TRANSPORTATION: LAHOOD, DONOVAN PLEDGE TO COORDINATE ON HOUSING, > TRANSIT
> By Jeannette J. Lee
>
>
> Plans to synchronize federal housing and transit planning won't > require
> higher gas taxes, Transportation Secretary LaHood said Wednesday,
> emphasizing the Obama administration is firmly against a hike.
>
> "This administration is not in the mood to raise the gasoline tax > when the
> economy is as bad as it is," LaHood told the House Transportation-HUD
> Appropriations Subcommittee. The 18.4-cent-per-gallon tax feeds into > the
> Highway Trust Fund, the main source of money for federally-assisted > bridge
> and highway projects. The ailing fund needed an $8 billion boost from
> Congress last year and "will probably run low again toward the end > of the
> fiscal year," LaHood said.
>
> With more than half of the average U.S. household budget going toward
> housing and transportation, LaHood and HUD Secretary Donovan said > their
> departments will begin cooperating more closely to make mass-transit > more
> convenient and affordable for working families.
>
> They'll encourage metropolitan areas to use "sophisticated analytic,
> modeling, and mapping tools" to produce "integrated housing, land > use and
> transportation plans."
>
> Such planning initiatives would qualify for federal assistance, but > LaHood
> warned that finding the money would also require "thinking outside the
> box."
>
> "The Highway Trust Fund could be a part of how we pay for these > things,"
> he said, but it is "not going to fund all the things that all of us > want to
> do." He offered other options, including public-private partnerships,
> infrastructure banks, or tolls. "There are lots of ideas out there," > he
> said.
>
> The departments will also work jointly to develop an "affordability > index"
> that will calculate the cost of living in a neighborhood based on both
> housing and transportation costs. The index is aimed at those who have
> moved to cheaper housing outside city centers only to see jumps in > their
> transit costs.
>
> "Over the last few years, many homeowners and renters have traded
> relatively high housing costs for high transportation costs in their > search
> for affordable housing," Donovan said. Joint agency studies would > collect
> an array of housing and transit data for use by both federal > programs and
> the private sector.
>
> Some panel members worried that urban areas in the East stand to > gain most
> from the approach. "The reality probably is that the use of cars > today is a
> larger part of daily lives than ever before," said Transportation-HUD
> Appropriations Subcommittee ranking member Tom Latham, R-Iowa. "A > bus or a
> train might not be a viable alternative for a working parent who > must get
> to day care, the drycleaners, work, or the grocery store all in the > same
> day."
>
> Reps. Ciro Rodriguez, D-Texas, and John Carter, R-Texas, also > questioned
> how such a plan might work in their state.
>
> Donovan said denser development could be centered around rail stops > and,
> in the case of rural areas, more compact living would help preserve
> farmland. Lahood said the $8 billion in economic stimulus money for
> high-speed rail will be doled out as soon as he receives guidance > from the
> White House. "We have sent a memo to the president that outlines > several
> corridors in the country," he said. LaHood also said a trust fund for
> high-speed rail is "something we ought to think about."
>
>
> http://www.nationaljournal.com/congressdai...090319_5029.php
>
> -----
> JUDICIARY: SOLICITOR GENERAL NOMINEE UP FOR SENATE VOTE TODAY
>
> The Senate will vote this afternoon on the nomination of Harvard Law
> School Dean Elena Kagan as solicitor general, Majority Leader Reid > said
> Wednesday evening.
>
> Kagan has drawn criticism from some Senate conservatives for her > positions
> on several social issues, but does not appear to face serious > opposition to
> her confirmation. Reid said he reached an agreement with Republicans
> earlier Wednesday for a vote on her nomination.
>
>
> http://www.nationaljournal.com/congressdai...090319_4446.php
>
> -----
> INTELLIGENCE: HOMELAND SECURITY DEPT. URGED TO GUARD CIVIL LIBERTIES
> By Andrew Noyes
>
>
> Congress should press the Homeland Security Department to clean up its
> intelligence operations and fix civil liberties problems that have > gone
> unaddressed, watchdog groups told a House subcommittee on Wednesday.
>
> House Homeland Security Intelligence Subcommittee Chairwoman Jane > Harman,
> D-Calif., said Tuesday the hearing was a starting point for > discussions
> that will involve those who collect, analyze and disseminate data > and those
> with ideas about how to foster transparency and accountability.
>
> As a next step, Harman scheduled an April 1 hearing on state-run
> intelligence "fusion centers" -- facilities the American Civil > Liberties
> Union claims have experienced "mission creep" after reports surfaced > of
> government spying on Maryland peace activists, a surveillance > scandal at a
> California military base and other incidents. The centers were created
> after the Sept. 11, 2001, terrorist attacks to expand information > sharing
> among federal, state and local agencies, and the private sector.
>
> In addition to the fusion centers, the watchdog group is concerned > about
> Homeland Security's implementation of warrantless laptop and > electronic
> device searches at U.S. borders, ACLU Washington Legislative Office
> Director Caroline Fredrickson told the subcommittee. "DHS has been
> overzealous in its information gathering and innocent Americans have > been
> caught in the web of suspicion," she said. "DHS cannot continue to > vacuum
> up benign intelligence."
>
> The Center for Democracy and Technology's Gregory Nojeim said the > agency
> could take several steps to focus its intelligence mission, including
> instituting a framework of fair information practices. The DHS Privacy
> Office adopted such a policy late last year and said it would be > applied to
> the "full breadth and diversity" of DHS activities.
>
> Harman's subcommittee should sample DHS intelligence products to > ascertain
> what is being collected, how it is being used and whether it is > useful to
> prevent terrorism, he said. Members should consider whether more > targeted
> collection efforts would be more effective and should review training
> materials the agency uses to see whether officials are being told to > avoid
> inappropriate surveillance.
>
> Nojeim also said the subcommittee should assess the effectiveness of > the
> agency's suspicious activity reporting.
>
>
> http://www.nationaljournal.com/congressdai...090319_9546.php
>
> -----
> GOVERNMENT OPERATIONS: AMERICORPS EXPANSION EASILY PASSES HOUSE, > GOES TO
> SENATE
> By Katie Sanders
>
>
> Responding to President Obama's calls for a "renewed spirit of > national
> service," the House approved a bill Wednesday that would expand > AmeriCorps
> in hopes that volunteerism can help bring the economy around.
>
> House members approved the GIVE Act, an estimated $6 billion measure > that
> will reauthorize programs under the Corporation for National and > Community
> Service for the first time since its inception in 1993.
>
> The authorization would run from FY10-14. The Senate is poised to > vote on
> a similar plan next week called the "Serve America Act."
>
> The House bill, which passed 321-105, aims to triple the number of > service
> opportunities in AmeriCorps, upping positions from 75,000 to > 250,000. It
> would add four new service corps in areas of clean energy, education,
> health care and veteran service to aid low-income communities.
>
> Education and Labor Chairman George Miller, co-sponsor of the bill, > said
> the plan would provide "a continuum of care" for volunteers, whether > they
> are college graduates approaching a bleak job market or senior > retirees
> with time to serve.
>
> A Summer of Service program would reward middle and high school > students
> with $500 college scholarships for their local work.
>
> Seniors would have a chance to earn fellowships for creating volunteer
> initiatives or by entering post-career service opportunities.
>
> The National Civilian Community Corps would be expanded so areas > such as
> disaster relief and energy conservation would be its responsibility.
>
> Miller shrugged off criticisms that the volunteer act will take > governance
> away from organizations like the Boy Scouts of America, saying he > has only
> seen bills like this multiply "the number of people in the community > that
> come to service."
>
> House Speaker Pelosi told reporters and a crowd of about 80 volunteers
> from service organizations the program would reward volunteers "with > real
> investments" that would pay out as scholarships, grants and stipends.
>
> Although criticisms of the bill were few, Republican opposition > largely
> focused on the billions being poured into the "paid volunteerism" > bill amid
> other large spending bills.
>
> Rep. John Kline, R-Minn., voted against the bill. He said in a > statement
> that he supported expanding volunteerism, but he could not support a > bill
> that authorized up to $10.4 billion in spending for programs like the
> National Civilian Community Corps, which was previously > characterized as
> ineffective by the OMB.
>
> According to a CBO cost estimate, the changes made by the bill would
> result in outlays of nearly $6 billion over the five fiscal years > while
> authorizing $10.4 billion.
>
>
> http://www.nationaljournal.com/congressdai...090319_5877.php
>
> -----
> FINANCE: GAO: REGULATORS FAILED TO IDENTIFY FINANCIAL WEAKNESSES
> By Terry Kivlan
>
>
> A GAO audit has found that the SEC, Federal Reserve, Office of Thrift
> Supervision and other federal regulators fumbled opportunities to > prevent
> the financial industry meltdown.
>
> In a report released Wednesday at a Senate Banking Committee > hearing, the
> GAO said it found that regulators identified numerous risk management
> weaknesses and other problems in financial institutions long before > the
> onslaught of the debacle but failed to take forceful action against > those
> threats until afterward.
>
> Orice Williams, the GAO financial markets director, said regulators
> acknowledged to investigators that they initially failed to > appreciate the
> seriousness of the risks involved.
>
> The report added that regulators shrank from requiring the financial
> institutions to take corrective steps because they seemed to have > strong
> financial positions and promised to change their ways voluntarily.
>
> In the case of the Federal Reserve, the GAO reported that the > central bank
> found in its surveys that none of the large complex financial > institutions
> it regulated had an ongoing stress-testing program incorporating all > the
> financial risks facing them, including scenarios that would render > them
> insolvent.
>
> The GAO concluded that the financial regulatory system was inherently
> flawed because it lacked a mechanism for doing a comprehensive risk
> evaluation on the entire financial system.
>
> "As a result, both banking and securities regulators continue to > assess
> risk management on an individual institutional level," the GAO said.
>
> In other testimony, Timothy Long, the chief bank examiner for the > Office
> of the Comptroller of the Currency, said the GAO report raised > legitimate
> issues.
>
> He said his agency had made progress in addressing them, taking > steps such
> as making sure that banks do not water down underwriting standards > due to
> competitive pressures.
>
> Erik Sirri, director of the SEC's Division of Trading and Markets,
> acknowledged that his agency failed to anticipate that a run-on-the-> bank
> scenario was a real possibility for institutions such as Bear > Stearns with
> well-capitalized securities and high-quality assets.
>
> Scott Polakoff, OTS' acting director, said the crisis showed that
> financial entities must take into account how risk concentrations can
> reverberate throughout their organizations.
>
> Roger Cole, the Fed's director of banking supervision, said regulators
> must have a firmer resolve to hold companies accountable for prudent > risk
> management policies despite complaints from the banks about the cost > of
> regulation and the effect on their international competitiveness.
>
>
> http://www.nationaljournal.com/congressdai...090319_7379.php
>
> -----
> HOMELAND SECURITY: TSA LACKS TECHNOLOGY TO MEET AIR CARGO SCREENING > GOAL
> By Chris Strohm
>
>
> The Transportation Security Administration is not on pace to meet a
> congressional mandate to ensure that all cargo transported on > passenger
> planes is screened for weapons of mass destruction, government > officials
> said Wednesday.
>
> That prompted at least one key lawmaker to say Congress might have > to take
> new steps to help the agency reach that goal instead of changing the > August
> 2010 deadline.
>
> House Homeland Security Transportation Security Subcommittee > Chairwoman
> Sheila Jackson Lee, D-Texas, and ranking member Charles Dent, R-Pa., > agreed
> that TSA should meet the air cargo mandates that Democrats placed in > a 2007
> bill, which was intended to implement unfulfilled recommendations of > the
> 9/11 Commission.
>
> The bill, which then-President Bush signed into law, set the 2010 > deadline
> for TSA to ensure all cargo carried aboard passenger aircraft is > screened.
> Lawmakers say the mandate applies to aircraft originating in this > country
> and aircraft coming into the Untied States from abroad.
>
> But TSA does not expect to meet the requirement for inbound > aircraft, Ed
> Kelly, the agency's manager for air cargo, told the subcommittee > during a
> hearing.
>
> "One of the challenges we face is the limitations of the currently
> available technology -- specifically, the effectiveness of existing
> technology for detecting explosives in cargo, its operational > feasibility,
> and its general availability for deployment to the industry to meet > the
> mandate of the 9/11 Act," Kelly said in written testimony.
>
> "TSA has the legal authority to require that a given percentage of > inbound
> cargo be screened before it reaches the United States," he added. > "Given
> the physical limitations of many airports, however, requiring U.S. and
> foreign air carriers to screen 100 percent of inbound cargo by a > given date
> would significantly impede the flow of commerce into the United > States."
>
> Jackson Lee said after the hearing she is not ready to give up on > the 2010
> deadline or to seek legislation that would push back the date. She > said the
> subcommittee has time to craft legislation to help TSA.
>
> "The push back, I think, should be our last resort," she said.
>
> Congress could help by providing more funding, expediting the > procurement
> of screening technology and directing TSA to use transportation > security
> officers to help screen cargo, Jackson Lee said.
>
> She added that she plans to examine what kind of cooperation TSA is
> getting from airlines to meet the mandate.
>
> But the Homeland Security Department has the power to give relief to > TSA,
> said a congressional aide. The aide said the department has the > authority
> to exempt cargo on inbound planes from the screening mandate.
>
> The 9/11 bill also required TSA to ensure that 50 percent of cargo > being
> shipped on passenger planes is screened beginning on Feb. 3. To meet > that
> mandate, TSA now requires air carriers in the United States to > screen cargo
> put on narrow-body airplanes -- those with only one aisle.
>
> But TSA's ability to meet even that deadline is under dispute. The > agency
> has not been able to produce data to verify the claim, said Stephen > Lord,
> GAO's director of homeland security and justice issues.
>
> Kelly testified that he believes the mandate is being met. TSA is
> collecting screening data from the airlines and will give Congress a > report
> in mid April to prove the 50 percent mandate is being met, he said.
>
> "I would argue that we didn't miss the deadline," he said. "We > missed the
> ability to report on it."
>
>
> http://www.nationaljournal.com/congressdai...090319_5754.php
>
> -----
> PEOPLE: PEOPLE
> By Winter Casey
>
>
> HEFTY EQUIPMENT. Daniel Fisher left his post as counsel for Senate
> Judiciary ranking member Arlen Specter to join the law firm Obadal, > Filler,
> MacLeod & Klein as a legislative associate. His will serve as the > director
> of government affairs and associate counsel for the Associated > Equipment
> Distributors, a trade association representing companies involved in > the
> distribution, rental and support of equipment used in construction, > mining,
> forestry, power generation, agriculture and industrial applications. > Fisher
> will lobby on behalf of the group on infrastructure, tax and labor > issues.
> He says he is excited to work on transportation issues in his new > role,
> particularly given his personal and family work history. He interned > for
> the FAA and at the Transportation Department and his father, Allan, > was an
> official for the Transportation Department's Federal Motor Carrier > Safety
> Administration. Fisher is a graduate of St. Mary's College and has a > law
> degree from George Mason University.
>
> RAPID RESPONSE. Hari Sevugan started work Wednesday as the national > press
> secretary and a designated rapid responder at the Democratic National
> Committee. In an e-mail to his contacts, he showed he's ready with a > quick
> quip: "So far it's been the easiest job I've ever had as there's > still no
> Republican budget proposal to respond to." Sevugan worked as a > spokesman
> for President Obama's presidential campaign and before that was the
> communications director for the presidential campaign of Sen. > Christopher
> Dodd, D-Conn.
>
> MOUTHPIECE. Andrew Blasko, a longtime communications staffer at the
> Heritage Foundation, is joining the Republican staff of the House > Education
> and Labor Committee as a speechwriter and communications adviser. > Before
> his nine years at the conservative think tank, Blasko was a reporter > for
> the Associated Press, where he helped cover the 1996 presidential > campaign.
>
>
> http://www.nationaljournal.com/congressdai...090319_3102.php
>
> -----
> BALANCE OF PAYMENTS: A G-20 GRAND BARGAIN
> By Bruce Stokes
>
>
> The U.S. trade deficit was down $3.9 billion in January, or 9.7 > percent,
> as exports fell, but imports declined even more. The narrowing of > America's
> imbalance with the world is good news. But beware: This could be a > sucker's
> rally.
>
> The trade deficit improvement is largely a product of the spreading > global
> recession. Consumers everywhere are buying less. There is no > evidence of
> the structural changes that would be necessary to fundamentally > alter the
> global account imbalances that have grown up over the last few > decades and
> were one of the principal underlying causes of the recent financial > crisis.
>
> When the leaders of the 20 largest economies meet in London April 2, > they
> will necessarily focus on reviving consumer demand and reregulating > the
> global financial system. But they should also lay the groundwork for a
> Global Bargain to rebalance international accounts.
>
> At a broad, conceptual level, this will require each of the G-20 > nations
> to assume responsibility for its own role in destabilizing the world
> economy. Going forward, the United States will need to produce more > of what
> it consumes and China, Japan and Germany will need to consume more > of what
> it produces.
>
> Practically, this will involve a new exchange rate regime so that in > the
> future the values of currencies more closely reflect the strength of > each
> economy. And it will require a revamping of trade relations with an > eye to
> reciprocity and a balance of benefits to better apportion the costs > and
> rewards associated with a global economy.
>
> This is a tall order. But anything less makes another economic crisis
> almost inevitable.
>
> The broadest measure of any country's economic balance sheet with the
> world is its current account, which measures the movement of goods,
> services and capital. In former President George W. Bush's first > year in
> office, the U.S. current account deficit was 3.8 percent of GDP. In > 2007,
> it went to to 5.2 percent. Meanwhile, in 2007 China ran a current > account
> surplus equal to 11.4 percent of its GDP, Germany a surplus of 7.6 > percent
> and Japan a surplus of 4.8 percent.
>
> To balance national ledgers at the end of the year, these imbalances > have
> required ever-more innovative recycling of funds from surplus > countries to
> the United States. The overwhelming volume of cash involved, coupled > with
> lax financial regulation, was a recipe for trouble.
>
> U.S. borrowers created exotic financial products to entice deep-> pocketed
> foreign lenders to part with their money. These proved unsafe. The > global
> financial crisis ensued. Avoiding similar problems in the future > will not
> simply involve better regulation, but the prevention of the re-> emergence of
> destabilizing current account imbalances.
>
> Most economists believe the United States can safely maintain a > current
> account deficit of about 3 percent of GDP. While the U.S. current > account
> deficit is now declining, if the United States is the first nation to
> recover from the global downturn, its current account might worsen > again as
> U.S. consumers return to their import-dependent lifestyles.
>
> To avoid that eventuality, Americans need to buy fewer imports and > thus
> have less of a need to borrow abroad to pay for them. This can be > achieved
> by Americans' consuming less and saving more.
>
> But a sustainable current account balance might prove difficult to > achieve
> based solely on a higher American savings rate. Returning to > historic norms
> would require a doubling or tripling of current American saving. > That would
> translate into a relatively lower American standard of living, a > prospect
> that will be unpalatable to many.
>
> Internationally, any long-term decline in U.S. consumption would > also have
> a devastating effect on the economies of other countries, forcing a
> reduction in production, unless consumption abroad increased.
>
> Enter the opportunity for the Grand Bargain. Americans need to produce
> more of what they consume. This can be accomplished by increasing > domestic
> production. Similarly, the Chinese need to consume more of what they
> produce, improving the Chinese standard of living while reducing > China's
> trade surplus.
>
> A weaker dollar and stronger renminbi, as part of a global currency > regime
> that also weakened the yen and the euro, would go a long way toward
> accomplishing this rebalancing by making imports into the United > States
> more expensive and the domestic market more attractive to Chinese or
> Japanese manufacturers.
>
> To reinforce that Grand Bargain, the Obama administration could > reframe
> U.S. trade policy with an eye on making and enforcing trade agreements
> based on reciprocity and on attaining a more economically sustainable
> balance of benefits for the United States. This might mean pursuing > trade,
> tax and other policies that encourage domestic production and > discourage
> imports and outsourcing.
>
> Such efforts would undoubtedly prove controversial because > reciprocity and
> a balance of benefits have long been used as thinly veiled excuses for
> protectionism. They were that when the world valued consumption over > all
> else. But now the goal of attaining and maintaining economic stability
> trumps consumption. If the underlying cause of the current financial > crisis
> is structural imbalances, then exchange rates and trade policy must be
> tailored to avoid them developing again.
>
> This should be the next challenge on the agenda of the G-20 and the > Obama
> administration.
>
>
> http://www.nationaljournal.com/congressdai...090319_7319.php
>
> -----
> MARKUP REPORTS: PANEL APPROVES SAVINGS FUND AS OPTION FOR FEDERAL > RETIREES
> By Bob Kemper
>
>
> The House Oversight and Government Reform Committee approved > legislation
> Wednesday that would increase the ways federal employees can build
> retirement savings and correct inequities that have plagued some > federal
> workers for a decade or more.
>
> The panel passed by voice vote an amended version of a law that > deals with
> the Thrift Savings Plan. That plan provides a 401(k)-style > retirement fund
> for both federal employees and civil service retirement systems.
>
> Among the principal changes the bill would make is to allow federal
> employees to make after-tax contributions to their retirement plans > similar
> to those made to a Roth IRA. The change would allow employees to > channel
> more money toward their retirement and would generate $1.8 billion in
> additional tax revenue within 10 years, according to committee > estimates.
> The Roth IRA option would be in addition to the current pretax
> contributions employees now make, though it would not be matched by > federal
> agencies.
>
> The legislation would also change the way sick days are administered > for
> federal employees, abolishing the use-it-or-lose-it system and > allowing
> employees to credit unused sick days toward their service time. > Oversight
> and Government Reform Chairman Edolphus Towns said the change is > needed to
> reduce absenteeism among federal employees and to give them the same
> benefit civil service workers already have.
>
> New federal employees would be automatically enrolled in the Thrift
> Savings Plan under the proposed bill. Those employees now must > choose to
> join the savings plan and, because of confusion over how the plan > works,
> many of them fail to enroll and miss out on matching funds their > agencies
> provide even if the employee is not making a contribution, committee
> members said.
>
> The committee approved an amendment offered by Oversight and > Government
> Reform ranking member Darrell Issa, requiring the Pentagon to > determine how
&g

[Snuffysmith]

> CongressDaily AM for Monday, March 23, 2009
>
> --------------------
> CONTENTS
>
> OUTLOOK: BUDGET RESOLUTIONS COME INTO FOCUS
> By Humberto Sanchez and Peter Cohn, -- with Dan Friedman, Darren > Goode,
> Kasie Hunt, Megan Scully, Bill Swindell, Carrie Dann, Anna Edney, > Andrew
> Noyes, David Hatch and George E. Condon Jr., contributing
>
>
> As the House and Senate Budget committees prepare to take up their
> respective budget resolutions this week, Democratic and Republican
> lawmakers expect Congress to pass a budget blueprint this year that
> reflects the goals set out in President Obama's FY10 outline.
>
> "This is a very clear statement of goals by the president," Rep. > Allyson
> Schwartz, D-Pa., vice chairwoman of the House Budget Committee, said > late
> last week.
>
> Obama presented Congress last month with his $3.6 trillion FY10 > outline
> that focused on reforming health care; implementing a cap-and-trade > bill
> that would limit greenhouse gas emissions while raising revenue for
> middle-class tax cuts and renewable-energy research; and improving
> education.
>
> "Those of us that agree with [Obama], and I am one of them and I > think the
> Democratic Caucus is one of them, want to get there," Schwartz said. > "It is
> our job as members of Congress to work out those details in bills > going
> forward."
>
> She added that the resolution will also reflect the need to rein in > the
> deficit as the economy recovers and the panel remains on track to > take up
> the resolution Wednesday. Action on the House floor is expected next > week.
>
> Democrats remained undaunted in light of new estimates from CBO that
> projected the budget deficit would top $1.8 trillion, or 13.1 > percent of
> gross domestic product, under initiatives proposed in the Obama > plan. As a
> percentage of GDP, the deficit never gets below 4 percent over the > 10-year
> budget window.
>
> House Speaker Pelosi said that regardless of what was expected in > the CBO
> projections, "our priorities are the same."
>
> House Budget ranking member Paul Ryan agreed the Democrats will > manage to
> pass a budget resolution this year, though he contends it would be > harmful
> to the economy because it spends too much and raises taxes, > particularly
> the cap-and-trade initiative.
>
> "I think they will get it out of committee and pass it largely > intact,"
> Ryan said last week. "They don't want to defeat their new president's
> signature agenda coming out of the gates; that would be a pretty big
> failure."
>
> However, "they do so at their own peril" because "tax increases are > lethal
> for our economy," he said. "Where I come from, cap-and-trade is > death to
> manufacturing."
>
> House budget writers will have to contend with the Blue Dog Coalition,
> which late last week released a raft of guidelines for the resolution,
> which included capping nondefense domestic spending increases to the > rate
> of inflation, and barring use of budget reconciliation to get around a
> Senate filibuster to pass a cap-and-trade program.
>
> The group is concerned that creating a cap-and-trade program will pit
> regions of the country that have plentiful renewable resources against
> regions that rely on traditional energy resources, such as coal.
>
> Aiming to ensure fairness, the Blue Dogs oppose using reconciliation > for
> the cap-and-trade initiative.
>
> However, House and Senate Democratic leaders and the White House > last week
> said that it remains an option, potentially for healthcare reform and
> shifting federal student loans into the direct-loan program > administered by
> the Education Department.
>
> But with the opposition from the Blue Dogs and eight Senate > Democrats who
> have come out against using reconciliation to help pass a cap-and-> trade
> bill, it has become a less-attractive option.
>
> Under reconciliation, only 51 votes in the Senate would be required to
> pass a bill, rather than the 60 needed to overcome a filibuster.
>
> House Majority Whip Clyburn said Thursday he could envision a scenario
> where the House includes reconciliation instructions in its > resolution and
> the Senate does not in order to keep it as an option during conference
> negotiations. But he stressed he takes his cues on the budget from > Budget
> Committee leaders.
>
> Schwartz said "it is one of the possibilities we are looking at." She
> added that "we will always seek to work in a bipartisan way if we > possibly
> can," but using reconciliation remains an option.
>
> In the Senate, Budget Chairman Kent Conrad has been adamant against > using
> reconciliation for such reasons, because it is limited to > legislation that
> has a fiscal impact, which makes many healthcare changes, for example,
> subject to the Byrd rule, which bars extraneous provisions from being
> included in a reconciliation bill. It takes 60 votes to waive the Byrd
> rule.
>
> The Senate Budget Committee is planning to mark up its resolution
> Wednesday and Thursday, with action on the floor expected next week.
>
> Conrad last week said he feels confident he can get a resolution > through
> the Senate.
>
> So does Sen. Jeff Sessions, R-Ala., who has been very critical of the
> budget's tax proposals.
>
> "I think it is possible we will see some alteration," said Sessions, a
> member of the Budget Committee. "But the Democratic majority is very > large
> in the Senate. It can be passed with a simple majority, 51 votes. > Senators
> are loath to challenge their newly elected president. I think there > will be
> a lot of pressure on them to pass it as it is" or with few significant
> changes.
>
> Budget writers in the Senate will have to contend with a group of > moderate
> Democrats who want to trim spending and oppose the use of > reconciliation to
> pass contentious legislation.
>
> "If they are looking at reconciliation with a lot of things in it, > such as
> cap-and-trade, I would have a major problem with that," said Sen. Ben
> Nelson, D-Neb.
>
> Sen. Mark Pryor, D-Ark., a moderate who opposes using reconciliation > for
> the climate change bill, thinks it will be a challenge to get a > resolution
> through the Senate, but expects one to get through.
>
> "We will see how we pull this thing together," Pryor said. "I would > like
> to see it pass, obviously. I'd like for it to be bipartisan, if > possible,
> we can have it that way. Part of this depends on if the Republicans > are
> going to work with the administration and Democrats in the House and > Senate
> to try to get something that they can agree to or are they just > going to
> say 'no.' I am not sure if anybody knows that yet."
>
> Meanwhile, populist anger at American International Group's bonus > payments
> heads to the Senate for debate as early as this week, when the chamber
> could debate legislation to slap taxes worth more than 70 percent on > the
> company and its employees' pay packages.
>
> Scheduling remains unclear as the banking industry tries to curb the > scope
> of the measure, which would apply to every financial institution > with more
> than $500 million in assets that took more than $100 million in > government
> aid.
>
> Industry lobbyists are making the argument that it will sweep in
> lower-level employees as well as executives, and will have the > effect of
> forcing companies to focus on repaying Troubled Asset Relief Program > funds
> to avoid the tax rather than lending money.
>
> The Senate bill, as well as a rival House-passed bill, would "have > serious
> negative implications on the recovery efforts," said Scott Talbott, > senior
> vice president for government affairs at the Financial Services > Roundtable,
> who nonetheless conceded the industry faces "an uphill battle."
>
> Some senior Democrats, including Finance Chairman Max Baucus, have > hinted
> that legislation might not be necessary if AIG employees would simply
> return their bonuses, and in fact both House and Senate bills would > give
> them a pass if they were to give up the bonuses.
>
> Baucus introduced the bill with bipartisan support on Thursday, > however,
> and said "we must act quickly" to restore taxpayer confidence. Senate
> Majority Leader Reid tried almost immediately to bring it up but was
> blocked by Minority Whip Kyl. Reid on Thursday said the Senate would > tackle
> the bill before adjourning for the spring recess, and a spokesman said
> Friday the goal was to approve the measure this week.
>
> A unanimous consent request would be unnecessary if Reid can muster 60
> votes, which appears to be in sight as Finance ranking member Charles
> Grassley and Sen. Olympia Snowe, R-Maine, are lead co-sponsors. > Democratic
> Sens. Blanche Lincoln of Arkansas and Nelson have signaled their > support.
>
> Still, opponents like Kyl and Budget ranking member Judd Gregg are
> promising a fight. On Friday, Gregg issued a statement arguing that > "the
> implications of pursuing this course of action are not that we will > recover
> the bonuses distributed to AIG executives, but that we will > undermine the
> credibility of our tax system, create an atmosphere where any group > that
> offends the sensibilities of the majority may be at risk for > punitive tax
> treatment, and step into a world more akin to the government of > Venezuela
> than that of America."
>
> The Senate bill would tax companies awarding bonuses since Jan. 1 at > 35
> percent, as well as individuals receiving bonuses at 35 percent. > There is
> no minimum income threshold for the tax, unlike the House bill, > which sets
> a minimum household income requirement of $250,000 to qualify for a > more
> punitive 90 percent added tax.
>
> The scope of the House bill is smaller in that it would apply only to
> recipients of more than $5 billion in government aid, which only > applies to
> about a dozen firms.
>
> Three-quarters of House members supported the measure, including > almost
> half of all Republicans, indicating how politically radioactive it > might be
> to be seen as supportive of excessive AIG bonuses. Obama said the > House
> vote "rightly reflects the outrage that so many feel" over the AIG
> situation. He did not explicitly endorse the House version but said > "I look
> forward to receiving a final product that will serve as a strong > signal to
> the executives who run these firms that such compensation will not be
> tolerated."
>
> The House this week returns again to an omnibus public lands package > that
> failed to receive expedited passage this month. The difference this > time is
> that the bill will need only majority support, which it received and > then
> some when Democratic leaders fell two votes short of the two-thirds > support
> needed to move it under suspension of House rules March 11.
>
> The Senate subsequently took up that package, modified it slightly, > and
> then moved it by using a House-passed battlefields protection bill > as its
> vehicle. This means the House only needs to "concur" with the Senate
> changes to the House bill, requiring only majority support and no
> amendments. A Democratic aide said the bill should come up on the > floor
> either Wednesday or Thursday. The House Rules Committee meets on it
> Tuesday.
>
> National service legislation will be on the Senate floor this week. > Dubbed
> the "Serve America Act," the $6 billion bill would reauthorize > AmeriCorps
> and expand its ranks from 75,000 to 250,000. The House passed a > similar
> measure last week 321-105. A procedural vote on the measure is > scheduled
> for today.
>
> The Senate meets today at 2 p.m. for morning business.
>
> The House meets today at 12:30 p.m. for morning hour and 2 p.m. to
> consider suspension bills. On Tuesday, the chamber meets at 10:30 > a.m. for
> morning hour and noon for legislative business, and meets at 10 a.m. > for
> legislative business Wednesday and Thursday. No votes are expected > Friday.
>
> CONGRESSIONAL LEADERSHIP
>
> Congressional leaders from both chambers and parties head over to the
> Hyatt Regency on Capitol Hill Wednesday for the Legislative and U.S.
> Government Policy Seminar. Clyburn and House Minority Leader > Boehner, Kyl
> and Baucus and Grassley are among several members slated to speak.
>
> DEFENSE
>
> The Pentagon hopes to send its $75.5 billion request for war funding > for
> the remainder of FY09 to Capitol Hill this week, although the timing > was
> uncertain as administration officials continued last week to > finalize its
> details.
>
> Specifics have remained under tight wraps, but Defense Department
> officials have indicated they plan to include money for four F-22 > Raptor
> fighter jets to replace combat losses of older aircraft.
>
> If approved, the request would bring total war spending this year to
> $141.5 billion. But House Defense Appropriations Subcommittee > Chairman John
> Murtha, D-Pa., has signaled he intends to add about $12 billion to the
> request. Part of that funding, he has said, would pay for rebidding > the
> contract for a new fleet of Air Force refueling tankers, plus the > aircraft
> development costs.
>
> Nonetheless, the request will likely require quick action. The > military
> has said it needs the money by the Memorial Day recess to avoid any
> disruption of its day-to-day operations.
>
> The Pentagon is working on its $663.7 billion request for FY10 > funding,
> expected to be delivered to Congress next month. That figure > includes the
> base budget and war funds for next year.
>
> In anticipation of that request, several committees will hold hearings
> this week that could guide congressional work on the annual defense
> authorization and appropriations bills.
>
> The Senate Defense Appropriations Subcommittee will meet Wednesday > with
> senior National Guard and Reserve officials to discuss their funding > needs
> for next year. And the House Defense Appropriations Committee has > scheduled
> a hearing for Wednesday with Air Force and Navy officials on combat
> aircraft acquisition plans.
>
> Meanwhile, the Senate Armed Services Committee will hold a > confirmation
> hearing Thursday for several nominees for senior Pentagon posts. They
> include Ashton Carter to be the Defense Department's acquisition > director,
> James Miller to be deputy undersecretary of Defense for policy and
> Alexander Vershbow to be assistant secretary of Defense for > international
> security affairs.
>
> The Senate panel will meet Tuesday to hear testimony from the > commanders
> of U.S. European Command and U.S. Joint Forces Command. Also > Tuesday, the
> House Armed Services Committee will meet with the commanders of U.S.
> Pacific Command, U.S. European Command and U.S. Forces Korea on > security
> developments in those areas.
>
> On Thursday, the House Armed Services Air and Land Forces Subcommittee
> will meet with senior Army and GAO officials on the status of the $160
> billion Future Combat Systems program.
>
> In a critical report released this month, GAO said many of the > program's
> technologies were immature and predicted that the program would face > cost
> increases.
>
> Army officials have questioned portions of the report and argued > that the
> program's technologies are on track. They also have stressed that the
> program is going through rigorous testing.
>
> ENERGY
>
> The Senate Energy and Natural Resources Committee Tuesday holds a > hearing
> on a draft Democratic plan to improve the oversight and transparency > of
> energy markets to curb excessive speculation.
>
> The idea, unveiled Friday by Energy and Natural Resources Chairman > Jeff
> Bingaman, calls for the Energy Information Administration -- the
> independent research arm of the Energy Department -- to develop a > plan to
> collect information identifying the ownership of all U.S. > commercially held
> oil and natural gas inventories.
>
> This includes company-specific data involving product volumes and > storage
> and transportation capacity and the details of company officials who > hold
> or control energy futures contracts or commodity swaps.
>
> Bingaman's draft creates a Financial Market Analysis Office within EIA
> that would be responsible for financially analyzing energy markets, > which
> EIA would have to take into account when analyzing and forecasting > energy
> prices.
>
> The draft creates a seven-member federal working group headed by the
> Energy secretary to investigate how increased financial investment in
> energy commodities affects energy prices and security.
>
> The group would recommend to the president and Congress changes > needed to
> prevent excessive energy commodity market speculation. It would > conduct a
> study to look at what affects the price of crude oil and refined > petroleum
> products, including whether and how it is affected by market > speculation.
> The group would issue recommendations for coordinating federal > oversight
> and adopting rules.
>
> Bingaman will include a market transparency plan in broader energy
> legislation his committee plans to mark up before the spring recess. > Energy
> and Natural Resources ranking member Lisa Murkowski recently said she
> expects an agreement could be reached with Bingaman on an energy > market
> plan, though she has not yet signed off on his draft. The House > approved
> energy market speculation legislation last Congress, but the Senate > did
> nothing. The House Agriculture Committee passed a new bill this year.
>
> FINANCE
>
> The House Financial Services Committee will vote Wednesday on > legislation
> that would ban any bonus from government firms that are receiving > loans
> under the Troubled Asset Relief Program.
>
> Financial Services Chairman Barney Frank's bill aims in an
> across-the-board basis to stem the uproar over the firms paying out > lavish
> bonuses even as they turned to the federal government to bolster their
> bottom line, instead of addressing it on an ad-hoc way -- as in the > AIG
> case.
>
> The bill would ban any bonus regardless of when the agreement to pay > such
> bonuses was entered into; any compensation deemed "unreasonable or
> excessive" as deemed by the Treasury Department, and any other bonus
> payment that is not tied to performance-based standards set by > Treasury.
>
> It would apply to firms that received benefits from the 2008 housing
> stimulus bill, which would include Fannie Mae and Freddie Mac.
>
> The full panel will hear from Federal Reserve Chairman Bernanke and
> Treasury Secretary Geithner on the federal government's $182 billion > in
> assistance to AIG.
>
> Geithner likely will come under criticism for not doing enough to > prevent
> AIG from paying out more than $165 million in executive bonuses. The > two
> will be questioned over a proposal to create an authority similar to > the
> FDIC that could take over nonbank entities like AIG and place them in
> receivership -- so that they could unwind the assets, reorganize and > emerge
> as smaller firms.
>
> Geithner also will testify on Thursday on the administration's plans > to
> overhaul the financial regulatory structure.
>
> Congress is examining ways to create a super-regulator that would > oversee
> the entire financial system and head off large-scale failures that > place
> the economy at risk as was the case with AIG and Bear Stearns.
>
> Most policymakers expect the Fed to play such a role, though some > members
> of the Senate Banking Committee have expressed concern the central > bank
> might not be the best entity for the job because its role as an > emergency
> lender of last resort could present a conflict of interest.
>
> Staff for the Senate Banking Committee will continue to meet to seek a
> compromise over legislation that would grant a bankruptcy judge the > power
> to modify home mortgages, including reducing principal. Staff met > three
> times last week with banking lobbyists and consumer advocates to > strike a
> deal on the bill, which is also expected to contain provisions to > expand
> business lending for credit unions and lower fee assessments for > banks.
>
> The panel will hold a hearing Tuesday on proposals to modernize the
> nation's bank supervision system. On Thursday, it will hold another > hearing
> on how to better protect securities investors.
>
> GOVERNMENT OPS
>
> United States Postmaster General John Potter might be hoping that last
> week's red-hot controversy over Wall Street executive pay cools down > fast.
>
> Potter will testify Wednesday before the House Oversight and > Government
> Reform Federal Workforce Subcommittee. He has come under fire for > how his
> compensation package, swollen by a performance bonus and deferred
> retirement benefits, totaled over $800,000.
>
> Reports of the sizeable earnings -- which Potter's backers say have > been
> overstated -- seemed particularly garish to observers when the USPS
> recently announced a proposal to cut Saturday mail delivery in the > face of
> an increasingly dire financial situation. Lawmakers at Wednesday's > hearing
> will address the financial stability of the Postal Service and > examine the
> executive compensation of its top managers.
>
> Meanwhile, Commerce Secretary-designate Gary Locke's nomination sailed
> unanimously out of the Senate Commerce Committee last week, and even > Rep.
> Patrick McHenry, R-N.C., praised the likely overseer of the Census > Bureau
> for mollifying Republicans concerned about possible politicization > of the
> decennial count.
>
> But debate about the Census continues, especially as observers turn > their
> attention to whom Obama will nominate to head the bureau and how > soon the
> pick will be announced.
>
> Today the House Oversight and Government Reform Information Policy
> Subcommittee will hear testimony on how historically undercounted > minority
> populations will be reached in coordination with community partners > and
> advertisers.
>
> On Thursday, the Senate Homeland Security and Governmental Affairs
> Committee holds a confirmation hearing for John Berry, Obama's pick > to head
> the Office of Personnel Management.
>
> The director of the National Zoo was a longtime legislative director > for
> House Majority Leader Hoyer, and has been lauded by federal workers' > unions
> as an optimal choice for the challenging government human relations > post.
> If confirmed, Berry will be the highest-ranking openly gay official > in the
> history of the executive branch.
>
> HEALTH
>
> Senate and House committees continue work on overhauling the nation's
> healthcare system as they face a tough deadline to prepare > legislation by
> early summer.
>
> The Senate Health, Education, Labor and Pensions Committee will
> participate in a roundtable discussion Tuesday on insurance coverage.
>
> Members will discuss improving the insurance market with seven > insurance
> industry and academic experts, including Karen Ignagni, president of
> America's Health Insurance Plans. Also on Tuesday, the House Energy > and
> Commerce Health Subcommittee will examine improving access to health > care.
>
> The Senate Finance Health Subcommittee plans Wednesday to look at > the role
> of long-term care in overhauling the nation's health system, and > will hear
> from Raymond Scheppach, executive director of the National Governors
> Association, as well as a range of witnesses from the Center for > American
> Progress Action Fund to the Heritage Foundation.
>
> HOMELAND SECURITY
>
> House and Senate lawmakers will continue to examine the federal
> government's response to increased violence in Mexico and what > should be
> done if fighting between Mexican drug cartels escalates inside the > United
> States.
>
> The House Commerce-Justice-Science Appropriations Subcommittee plans a
> hearing Tuesday on the federal law enforcement response to violence > on the
> Southwest border.
>
> Some lawmakers have criticized the Bureau of Alcohol, Tobacco, > Firearms
> and Explosives for not doing enough to stop gun dealers in the United
> States from selling to purchasers who funnel weapons illegally to > the drug
> cartels in Mexico.
>
> On Wednesday, the Senate Homeland Security and Governmental Affairs
> Committee has scheduled a landmark hearing with Homeland Security > Secretary
> Napolitano to examine the crisis.
>
> Napolitano is likely to be asked for specifics on a plan the Obama
> administration is crafting to help Mexico respond to violence along > the
> border and prevent guns and cash from reaching the cartels. > Napolitano said
> last week the plan is being worked "at the highest levels" of the
> administration and would soon be announced.
>
> Napolitano also plans to travel to the border and Mexico from April > 1-3, a
> trip that will include attending a conference on combating illegal > arms
> trafficking with Attorney General Holder.
>
> On Thursday, the Senate Homeland Security and Governmental Affairs
> Committee will hold a confirmation hearing for Jane Holl Lute to be > the
> Homeland Security Department's deputy secretary.
>
> JUDICIARY
>
> FBI Director Robert Mueller will appear before the Senate Judiciary
> Committee Wednesday for the first time since Obama took office.
>
> Mueller was nominated by former President George W. Bush and took > office
> shortly before the terrorist attacks on Sept. 11, 2001. His term > expires in
> September 2011.
>
> The hearing is expected to cover a range of issues, which may > include FBI
> probes into subprime and other mortgage fraud; mismanagement of > national
> security letters that let the FBI obtain private records about > citizens'
> communications without court approval and high-tech challenges to
> intelligence-gathering.
>
> LABOR
>
> Senate Republicans will keep the focus on the Employee Free Choice Act
> this week.
>
> The Republican Policy Committee -- including its chairman, Sen. John
> Ensign of Nevada, Vice Chairman John Thune of South Dakota and Sens. > Orrin
> Hatch and Robert Bennett, both of Utah, and James Risch of Idaho -- > will
> hold an open meeting today with small business leaders focusing on how
> increased unionization will affect entrepreneurs and job creation.
>
> Eugene Scalia, a top Labor Department lawyer in the Bush > administration
> and the son of Supreme Court Justice Antonin Scalia, is also slated to
> speak.
>
> The measure, commonly dubbed "card-check," would make it easier to
> unionize by eliminating a company's ability to demand a secret ballot
> election; send management and labor to binding arbitration if they > can't
> reach a first contract within 120 days, and increase penalties against
> businesses that violate current labor laws.
>
> Labor groups say the legislation will help rebuild the middle class > and
> restore a level playing field for workers.
>
> TAXES
>
> With the budget process getting under way this week as a backdrop, the
> Senate Finance Committee Thursday will hold a hearing on the planned > 2010
> expiration of former President George W. Bush's tax cuts affecting the
> middle class.
>
> On Friday, CBO estimated that extending the tax cuts for all but those
> with household income exceeding $250,000 -- or $200,000 for single > filers
> -- combined with other Obama-proposed tax breaks, would cost $2.1 > trillion
> over 10 years.
>
> Republicans measure those figures differently, arguing Obama's > policies
> amount to a $1.9 trillion tax increase over what would happen if > policies
> were simply continued.
>
> TECHNOLOGY
>
> The boards of both the Information Technology Industry Council and > TechNet
> converge in Washington this week. ITI represents heavyweights like > Apple
> Computer, Cisco Systems, IBM, Hewlett-Packard, and Dell while > TechNet's
> leadership consists of investors in, and CEOs of, top Silicon Valley > firms.
>
> Together and separately, officials from ITI and TechNet will meet with
> Democratic and Republican leaders of the House and Senate as well as > key
> members from the Judiciary, Commerce, Finance, and Ways and Means
> committees. They will sit down with cabinet secretaries and top
> administration officials from a range of agencies and departments. > Areas of
> focus include patent legislation and tax and trade policies.
>
> Intel Corp. Chairman Craig Barrett will speak at a New America > Foundation
> forum today that will examine how mobile computing devices can advance
> efforts to improve healthcare through electronic medical records and > other
> technology-based initiatives.
>
> Barrett will focus on the importance of achieving ubiquitous broadband
> service while other speakers will describe cutting-edge applications > in
> tele-health like remote monitoring and care and extending specialist > care
> to rural and remote areas. White House Office of Science and > Technology
> Policy Associate Director Thomas Kalil will also be on hand to offer > views
> from the Obama administration.
>
> TELECOM
>
> On Tuesday, House Energy and Commerce Communications Subcommittee > Chairman
> Rick Boucher, D-Va., addresses the National Telecommunications > Cooperative
> Association with a speech likely to include discussion of broadband > and
> universal service issues. Boucher and Rep. Lee Terry, R-Neb., plan > to soon
> introduce legislation to overhaul the multibillion-dollar federal > telecom
> subsidy fund.
>
> Meanwhile, the Agriculture and Commerce departments continue their
> nationwide series of public meetings about the $7.2 billion in loans > and
> grants to be distributed for broadband deployment, with concluding > sessions
> in Washington today and Tuesday.
>
> Also those days, the National Emergency Number Association holds a
> conference in Crystal City, with Rep. Mike Rogers, R-Ala., ranking > member
> of the House Homeland Security Emergency Communications Subcommittee,
> delivering the Tuesday keynote.
>
> WHITE HOUSE
>
> President Obama will find budget issues, energy and politics on his > plate
> this week at the White House. He'll make remarks about his budget > proposal
> and clean-energy initiatives today. Tuesday's schedule includes a > meeting
> with Prime Minister Kevin Rudd of Australia and an 8 p.m. news > conference.
>
> On Wednesday, the president is scheduled to attend an evening > fundraiser
> for the Democratic National Committee. He'll also hold his weekly > meeting
> with Democratic congressional leaders that day.
>
>
> http://www.nationaljournal.com/congressdai...090320_4467.php
>
> -----
> HEALTH: BAUCUS' SUGGESTION TO TAX BENEFITS FACING HEAT EVEN WITHIN HIS
> COMMITTEE
> By Anna Edney
>
>
> Senate Finance Chairman Max Baucus has taken a good bit of heat over > his
> suggestion to tax employer-sponsored health benefits to help pay for a
> healthcare overhaul, and his ability to sell the hefty revenue-raiser
> appears to face an uphill climb even among members of his party on the
> committee.
>
> Finance Committee Democrats either avoided committing, saying they > were
> still weighing all options, or cast a skeptical eye on the proposal. > None
> who spoke with CongressDaily or whose offices' responded to reporter
> inquiries fully endorsed the idea.
>
> Sen. Robert Menendez, D-N.J., resisted the strongest.
>
> "I know the chairman is trying to figure out how we finance this > reform,
> but I have serious problems with capping and taxing above the > amounts,"
> Menendez said. "It's a big challenge with organized labor and > others, and
> they are rightfully concerned, as am I, and we look forward to > working with
> the chairman to work out other ways to finance what needs to be done."
>
> Baucus made his proposal in November in a white paper outlining his > ideas
> on overhauling the nation's healthcare system, suggesting capping the
> amount of premiums that are excluded from income and payroll taxes. > The
> cost of health benefits is not taxed, which many economists believe > drives
> up healthcare spending because employees choose more comprehensive > plans
> with low co-pays and deductibles, making them more inclined to seek
> unnecessary medical attention. Baucus suggested taxing employee health
> benefits on a sliding scale based on income.
>
> The discussion surrounding the idea escalated in the last few weeks > after
> OMB Director Orszag and Treasury Secretary Geithner said the > administration
> is open to all ideas -- a surprise to some after President Obama > criticized
> his presidential rival, Sen. John McCain, R-Ariz., for advocating a > similar
> proposal.
>
> The administration's FY10 budget outline included a $634 billion
> healthcare overhaul reserve fund, about half of which would be > funded by
> limiting itemized deductions to raise more taxes from the top > earners. But
> the idea fell flat on Capitol Hill and taxing health benefits is being
> raised as an alternative.
>
> Even the Finance Committee's own Health Subcommittee chairman, Sen. > John
> (Jay) Rockefeller, D-W.Va., said he is worried about talk of taxing > health
> benefits, particularly since he believes Congress has not seriously > focused
> on a public plan option, a proposal Republicans vehemently oppose.
>
> "For those still fortunate enough to have a job in this economy, we > should
> not add to their worries by jeopardizing their healthcare coverage > -- it is
> this very way of thinking which derailed health reform under President
> Clinton," Rockefeller said.
>
> Sen. Debbie Stabenow, a Democrat who represents Michigan, home to
> America's automakers, said she is concerned about the impact taxing > health
> benefits could have on her state. "We're analyzing the whole piece > right
> now because we have a lot of employer-based health insurance > programs in
> Michigan," she said.
>
> Sen. Blanche Lincoln, D-Ark., said she could not support any tax > plan that
> would hurt small businesses or working middle-class families that are
> struggling. "They should not shoulder a disproportionate burden for
> healthcare reform," she said.
>
> Finance ranking member Charles Grassley called the health benefit tax
> exclusion, or employer exclusion, "the 800-pound gorilla in the room."
>
> He was careful not to reveal where he comes down on the topic.
>
> "It's something that we're going to have to move in cautiously, and > quite
> frankly ... it's not going to happen unless there's a great big > consensus
> to get it done," Grassley said.
>
> One Finance member hopes to play mediator. "One of my jobs is to try > to
> find compromise," Sen. Thomas Carper, D-Del., said. Carper hopes to > meld
> Baucus' proposal with well-supported legislation introduced by Sens. > Ron
> Wyden, D-Ore., a Finance member, and Robert Bennett, R-Utah, who is > not on
> the committee.
>
> The bill falls close to McCain's plan during his presidential run. The
> Healthy Americans Act seeks to eliminate employer-sponsored health
> insurance and provide a standard tax deduction to help Americans > purchase
> health coverage.
>
> Carper envisioned a compromise he said he thinks would work.
>
> "Basically, for example, hold a family harmless if their health > costs are
> less than $15,000 a year, but if they have Cadillac coverage as > opposed to
> Chevrolet coverage there'd be some exposure on the tax," he said.
>
> However it might be done, taxing the cost of employee health > benefits as
> income would close the gap on the third-largest federal health > insurance
> expenditure behind Medicare and Medicaid. Massachusetts Institute of
> Technology economics professor Jonathan Gruber told the Finance > Committee
> last summer the employer exclusion leads the government to forgo $250
> billion in tax revenue annually.
>
>
> http://www.nationaljournal.com/congressdai...090323_3480.php
>
> -----
> BEYOND THE BELTWAY: BILL TO DISCLOSE HOSPITAL ERRORS ADVANCES IN N.J.
>
> New Jersey took a step toward legislation that would make hospital > safety
> information more transparent.
>
> The state Senate unanimously passed a measure that would require the > state
> to publicly report preventable patient-safety errors at hospitals in > the
> state. It builds on a law passed a few years ago.
>
> In 2004, the state enacted a measure that obligated hospitals to > report
> errors to the state. The total number of adverse patient-safety > events at
> hospitals is disclosed, but the hospitals where they occur are not
> identified.
>
> The legislation would require the state's Department of Health and > Senior
> Services to include in the annual hospital performance report certain
> patient-safety indicators and preventable medical errors on a
> hospital-by-hospital basis.
>
> "As we work to make health care safer for patients in New Jersey, we > have
> to recognize that one of the biggest drivers of patient safety is a > free
> and open marketplace," said Democratic state Sen. Joseph Vitale, and
> chairman of the Senate Health Committee. "Publicizing patient safety
> records of hospitals would allow healthcare consumers to make informed
> decisions about their medical care."
>
> The measure would prohibit hospitals or physicians from charging a > patient
> or third-party payer for certain types of medical errors or
> hospital-acquired conditions that are ineligible for reimbursement > under
> the Centers for Medicare and Medicaid Services established medical > error
> guidelines.
>
> The legislation moves to the Assembly.
>
>
> http://www.nationaljournal.com/congressdai...090323_2248.php
>
> -----
> BEYOND THE BELTWAY: IOWA SENDS BILL PLACING LIMITS ON CAMPAIGN FUNDS > TO
> GOVERNOR
>
> Iowa's Legislature last week sent a measure to the governor's desk > that
> would prevent candidates from using campaign cash to pay themselves or
> immediate family members, the Des Moines Register reported.
>
> The legislation passed in the House, 96-0.
>
> A similar measure failed to become law last year. It was proposed > after it
> became public that former Democratic state Rep. Ed Fallon had paid > himself
> $13,750 from his gubernatorial campaign after he lost the primary in > 2006.
>
> Fallon last year unsuccessfully challenged Democratic Rep. Leonard > Boswell
> in the primary. He criticized the measure, saying it makes politics > "the
> domain of the rich and powerful."
>
> "Low-income and middle-income people who want to run for office are
> already at a huge disadvantage," Fallon said. "If a candidate > receives a
> modest stipend from his or her campaign account, what business is > that to
> state government? It's between that candidate and her or his donors."
>
> He added if lawmakers were concerned about money in politics, they > would
> pass a measure that would create public funding of state campaigns.
>
> Iowa Democratic Gov. Chet Culver has not said whether he will sign the
> measure.
>
> "We'll wait and see the bill when we get it," Culver's spokesman said.
>
>
> http://www.nationaljournal.com/congressdai...090323_5352.php
>
> -----
> PEOPLE: PEOPLE
> By Mike Magner
>
>
> FULL CIRCLE. Shelly O'Neill Stoneman is right back where she started > in
> Washington as an intern from Vassar College in 1997 -- the White House
> Office of Legislative Affairs.
>
> An aide for Rep. Steven Rothman, D-N.J., for more than five years,
> Stoneman recently moved to the same office in the East Wing where she
> interned during the Clinton administration, this time as one of more > than a
> dozen Capitol Hill veterans helping this administration keep tabs on
> Congress.
>
> "I spend 75 percent of my time on the Hill," Stoneman said. "We try > to be
> as visible as possible."
>
> Stoneman was tapped for the position after her former boss "did a > lot of
> surrogate work" on President Obama's campaign last year. "She is > now, and
> forever, an honorary 'Jersey Girl,' " Rothman said. "The White House > is
> lucky to have her."
>
> A San Diego native who grew up in Orlando, Fla., Stoneman joined the > staff
> of the old Senate Governmental Affairs Committee after graduating from
> Vassar in 1999, working for the subcommittee on international > security and
> its then-ranking member, Sen. Daniel Akaka, D-Hawaii.
>
> After a stint in Germany with her military husband from 2000-03 -- > where
> she earned a master's degree from the University of Oklahoma's > program in
> Europe, focusing on arms-control issues -- Stoneman returned to > Washington
> and joined Rothman's staff, eventually becoming deputy chief of staff.
>
> With her national security background, Stoneman's White House > assignment
> is to work with 90 lawmakers involved in defense issues. Since she > spends
> most of her time on Capitol Hill, Stoneman said her new job is not > much
> different from her old one, "except now I have only 90 constituents."
>
>
> http://www.nationaljournal.com/congressdai...090323_6799.php
>
> -----
> CHINA WATCH: CHINA'S MILITARY: AT SEA?
> By Art Pine
>
>
> The latest Chinese military surprise -- in which Beijing sent five > vessels
> to harass a U.S. surveillance ship, and then complained angrily that > the
> Americans were operating illegally inside Chinese waters -- might have
> discomfited U.S. policymakers, but it likely won't be the last such
> incident the United States will face.
>
> Overall, U.S.-China relations still are good, and Washington is > trying to
> draw Beijing into taking a more active role in solving global > economic and
> diplomatic problems. But such blowups seem almost inevitable as China
> continues to expand into a major world power, diplomats and military
> analysts say.
>
> "What is happening is just normal jostling between a rising power > and an
> established power," says Robert Work, a retired Marine Corps colonel > and
> now a China-watcher at the Center for Strategic and Budgetary > Assessments,
> a defense-oriented think tank. "There will be instances where the two
> nations cooperate and instances where they butt heads. There's no > reason it
> has to turn hostile."
>
> Indeed, after some harsher-than-usual charges and countercharges, both
> governments quickly put the latest issue aside -- or, more likely, > shelved
> it until Chinese President Hu Jintao can bring it up to President > Obama
> when the two meet at the Group of 20 summit in London next month. > Beijing
> will be pushing the issue for some time.
>
> But the incident occurred in a broad context. China clearly is an > emerging
> power, with regional and some global ambitions. Its strengthened > army and
> navy are beginning to feel their oats. While China's relations with > Taiwan
> seem better than ever, there's always the possibility of a military
> conflict. And China wants to reduce American influence in Asia, its
> backyard.
>
> "The only military that can contest China's position in the South > China
> Sea effectively is the U.S. military," says Dennis Wilder, former > President
> George W. Bush's top Asian adviser, who is now a national security > analyst
> at the Brookings Institution. "What you're seeing is a Chinese > military
> that wants to assert the claims that China has in this area. It > feels it
> has some muscle."
>
> Moreover, the Chinese are in the middle of a pan-Asia naval buildup > that
> they dare not ignore. Japan has just built four helicopter-carrying
> destroyers. India now has three carrier battle groups and is > expanding its
> fleet. South Korea is building three full fleets, centered on large-> deck
> amphibious ships that could be converted into carriers. Australia is
> building up its navy.
>
> To be sure, China has a history of providing military surprises. In > 2001,
> it detained the 24-person crew of a crippled U.S. EP-3 surveillance > plane
> for 10 days -- similarly, over Beijing's claim that the Americans > had been
> flying over Chinese waters. Both cases rest on China's > interpretation --
> disputed by the United States -- of the U.N. Convention on the Law > of the
> Sea.
>
> In the past several years, the Chinese military has surprised U.S.
> analysts by shooting down one of its own communications satellites;
> surfacing a Chinese submarine in the midst of an American carrier > battle
> group, and blocking a port visit by an American warship. The latest
> incident, involving the surveillance ship USNS Impeccable, was the > worst
> since 2001.
>
> Difficult for U.S. analysts to figure out is why the Chinese picked > now to
> provoke such a faceoff. Besides coming so close to next month's > Obama-Hu
> meeting, the incident follows a resumption of military-to-military > talks,
> held at China's request, and a successful effort by China's navy to > help
> the United States and other powers combat pirates in the Gulf of Aden.
>
> "The Chinese have been sending a clear signal for months that they > want a
> good relationship with the Obama administration and good relations > with the
> U.S.," says Bonnie Glaser, a China-watcher at the Center for > Strategic and
> International Studies, a think tank that specializes in defense and
> security issues.
>
> Glaser argues that one of the most important steps the two sides could
> take would be to hammer out an agreement that provides set > procedures for
> dealing with such incidents and defusing them before they get out of
> control. The two worked out a Military Maritime Consultative > Agreement in
> 1998, but it never was used.
>
> "That's a big agenda item" for future negotiations, Glaser asserts. > "There
> will be more incidents like this one in the future because the two > navies
> will be operating in close proximity more than they used to. We have > to
> agree that we need to use safer techniques for signaling our > displeasure in
> these cases rather than risking an accident."
>
> And the Pentagon is pressing for a more serious resumption of
> military-to-military talks, which give officers on both sides a > chance to
> get to know one another better -- and to get a closer look at each > other's
> forces as well.
>
> Meanwhile, the Navy has dispatched a guided-missile destroyer to > protect
> the Impeccable and other U.S. vessels that venture close to the > offshore
> zone that China considers part of its waters. That's likely to > forestall
> further harassment for a while, Glaser says, though it could create > new
> questions about what to do if the destroyer becomes a provocation > rather
> than a deterrent.
>
> "It's not always easy to see into the Chinese system," Brookings' > Wilder
> points out.
>
>
> http://www.nationaljournal.com/congressdai...090323_2791.php
>
> -----
> OUTLOOK: HOT TICKET
> By Jason Mann and Jason Dick
>
>
> STARS COME OUT
> When was the last time you were in a room where the politicians were > not
> the biggest talkers? If your answer, like most folks, is never, then > score
> a ticket to Wednesday's sixth annual National Alzheimer's Gala at the
> National Building Museum and see for yourself what happens when MSNBC
> gabmaster Chris Matthews and Buffalo Bills wide receiver Terrell Owens
> occupy the same space. Matthews is set to emcee the event, while > Owens will
> receive the Alzheimer Association's Young Champions Award. Sen. John > (Jay)
> Rockefeller, D-W.Va., and French President Nicolas Sarkozy will also > be on
> hand to pick up awards for their efforts on behalf of the > association and
> to raise awareness of Alzheimer's disease. For information on tickets,
> contact (703) 766-9005 or NationalGala@alz.org, or go to
> www.alz.org/galas/NationalGala.
>
> BEAM ME UP, ABE
> The Library of Congress' Mary Pickford Theater continues its > recognition
> of Abraham Lincoln's bicentennial Thursday with a doubleheader > screening of
> "Star Trek" and "Touched By An Angel." You read that correctly. The
> celebration, which started in February and lasts through May, > obviously has
> a lot of time to fill. The theater has been very creative in > choosing which
> films and shows will be included, and it appears its only criteria > is that
> Lincoln be portrayed in some fashion, even if it's on a different > planet.
> In the episode of "Star Trek," "The Savage Curtain," a replica of > Lincoln
> invites Captain Kirk and Mr. Spock to an alien planet where the > three must
> battle the forces of evil, including Genghis Khan. This episode was > the
> third-to-last one of the original series, which, well, we'll let you > draw
> your own conclusions. The episode of "Touched By An Angel" has a > much more
> plausible storyline; a couple of angels try to prevent Lincoln's
> assassination. To see this unusual tribute and pairing, head over to > the
> third floor of the Library of Congress at 7 p.m.
>
> PAWS FOR THOUGHT
> With the economy in its messed-up state, a gala where pets are > dressed in
> top fashions and paraded down a runway might seem a tad excessive. > Luckily,
> however, Saturday's "Fashion for Paws" event is a fundraiser for the
> Washington Humane Society and not an attempt to dress dogs in designer
> duds. The human models are average Joes, or Josephines, who have > raised
> funds on their own -- last year the top model raised $15,000 -- with > those
> raising the largest amounts strutting their stuff down the catwalk > with
> their favorite dog in tow. Honorary chairman and actor, and > prospective New
> Mexico gubernatorial candidate, Val Kilmer will join host and Italian
> Ambassador Giovanni Castellaneta at the Italian Embassy at 3000 > Whitehaven
> Street, NW, for the event, which starts at 8 p.m. Tickets cost $75 > and can
> be bought by e-mailing rsvp@washhumane.org.
>
>
> http://www.nationaljournal.com/congressdai...090323_1236.php
>
> -----
> DRAWING BOARD: DRAWING BOARD
> By Mark Armstrong
>
>
>
> http://www.nationaljournal.com/congressdai...090323_7684.php

[Snuffysmith]

> CongressDaily PM for Monday, March 23, 2009
>
> --------------------
> CONTENTS
>
> TAXES: LAWMAKERS BACK OFF FROM QUICK ACTION ON BONUS TAX
> By Peter Cohn, with George E. Condon Jr. and Dan Friedman contributing
>
>
> The Obama administration and Democratic leaders appear to be taking > a step
> back from slapping tax penalties on bonuses doled out by American
> International Group and other companies benefiting from government > aid.
> Senate Majority Leader Reid appears content to let Republicans > object again
> today to taking up a tax bill by unanimous consent, as they did > Thursday
> after the House passed a 90 percent bonus tax on firms that received > $5
> billion or more in federal aid. The move looks calculated to maximize
> political damage to Republicans on the AIG bonus issue, while allowing
> Democrats time to negotiate a more palatable solution with the
> administration. "Still working out next steps," a Reid spokesman said.
>
> Instead of moving to force a vote on its version of the tax bill, the
> Senate will debate an unrelated bill passed by the House last week to
> reauthorize national service programs. With next week to be > dominated by
> the FY10 budget debate in the Senate, the window could soon be > closing for
> action on a punitive tax bill. Other financial firms that received > federal
> aid, such as Citigroup Inc., Bank of America Corp. and JPMorgan > Chase &
> Co., are using the time to press lawmakers against passing a bill > that they
> say could affect thousands of employees and hinder participation in
> continued economic recovery plans. In an interview aired Sunday on "60
> Minutes," President Obama seemed inclined to keep the focus on AIG and
> indicated concerns about the broader impact on financial firms > entrusted
> with getting credit flowing again.
>
> Even House Democratic leaders are embracing a cooling-off period. > "We are
> a political body; we are a body that's responding to people's dreams > and
> aspirations, and sometimes we respond to their emotions," House > Majority
> Whip Clyburn said this morning on CNBC. "We do need some time to > have a
> cooling-off period, and the weekend allowed the public to calm down > a bit,
> it allowed the elected officials to take a second look, and I think > we will
> have a much cooler look this week." When asked about the > constitutionality
> of the House bill's approach, Clyburn said that was a matter for the > courts
> to decide.
>
> Treasury Secretary Geithner today echoed Obama's comments. "We need to
> balance that basic objective -- we do not reward failure -- against > the
> hugely important imperative that we get the financial system doing > what it
> needs to do," Geithner said at a news conference. "On the specific
> legislation ... we are going to look carefully at how this works > with the
> Congress and try to make sure that we get this balance right." Senate
> Democrats are also beginning to advise caution. "I think the tax > plan has
> lots of issues about it, especially constitutional questions. Do you > really
> want to use the tax code to go after just a handful of people?" Senate
> Budget Chairman Kent Conrad said today on MSNBC. A bipartisan Senate
> Finance Committee bill introduced last week has a less punitive 70 > percent
> tax on bonuses, split evenly between the employee and company, but a
> broader reach, hitting every firm taking at least $100 million in
> government aid except the smallest banks.
>
>
> http://www.nationaljournal.com/congressdai...090323_1693.php
>
> -----
> FINANCE: SOME LAWMAKERS WARY OF GEITHNER FINANCIAL RESCUE PLAN
> By Bill Swindell
>
>
> Some lawmakers quickly raised questions about the plan Treasury > Secretary
> Geithner released today for the federal government and private > investors to
> purchase up to $1 trillion in toxic assets in order to unfreeze credit
> markets that are dragging down the economy. Rather than nationalize
> distressed banks burdened by bad mortgages, the Geithner plan instead
> offers private investors a chance to partner with the federal > government
> with a chance to share up to 50 percent of the profits. But while some
> questioned the approach, Senate Majority Leader Reid gave his support,
> saying the "plan is based on the sound principle that if we are to > revive
> our economy, we must unfreeze the credit markets so people can get the
> loans they need to keep their small businesses open, buy a car or send
> their children to college." Under the plan, which does not need
> congressional approval, Treasury would provide up to $100 billion in
> capital through the Troubled Asset Relief Program. Private investors > would
> provide up to a share of around 5 percent. FDIC would then provide > leverage
> funding -- about 80 percent of the purchase price -- to buy a pool > of whole
> loans. The Federal Reserve and Treasury would apply such leverage > for the
> purchase of toxic securities, up to 50 percent of the purchase > price. The
> investments would be managed privately with Treasury oversight on a
> long-term basis.
>
> Geithner faces a skeptical Congress that is moving to severely > restrict
> executive compensation at firms that receive government bailout funds
> through TARP. Geithner said asset managers and private investors > would not
> have to adhere to compensation limits because the new partnership is
> designed to thaw credit markets, not stabilize banks like the first > round
> of TARP funds aimed to do. "If you are already an institution that has
> received TARP assistance then you will be covered by the range of
> conditions that will apply to people who received capital to the
> government. These programs are different programs," Geithner said.
>
> That answer did not sit well with some who feel the private > investors are
> getting a sweetheart deal. Rep. Brad Sherman, D-Calif., noted private
> investors would share in up to half the profits with little > investment on
> their part. "It would make the American people a thousand times as > angry
> [as AIG] except that the fact that it is so technical, the American > people
> may not fully understand it," Sherman said this afternoon. House > Minority
> Whip Cantor echoed concerns that Geithner may be giving too much to > private
> investors. "As described, the plan seems to offer little incentive for
> private investors to participate unless the subsidy is made so rich > that it
> comes at the expense of the taxpayer," Cantor said in a statement.
>
> Business interests are very concerned about the impositions Congress > may
> put on the Geithner plan. For example, hedge funds and private > equity firms
> would likely be willing investors in the plan. But they could face > pressure
> from lawmakers who would want to impose additional burdens on such
> businesses, such as requiring hedge funds to register with the SEC or
> taxing private equity managers' income from investment services as > regular
> income. "There is hesitancy about the counterparty risk, that the
> government will change the terms after the fact," said Scott Talbot > of the
> Financial Services Roundtable. House Financial Services Capital > Markets
> Subcommittee ranking member Scott Garrett, R-N.J., said he heard > from Wall
> Street officials over concern over how such assets will be priced,
> especially if they will be valued at their current low market value > as what
> is called for under current accounting practices. Geithner noted "a
> principal virtue" of the plan is that it allows the private market > to take
> the lead in the buying of such assets, allowing them to strike a > better
> deal than the federal government because of their upside potential.
>
>
> http://www.nationaljournal.com/congressdai...090323_7492.php
>
> -----
> DEFENSE: GENERAL SAYS BUDGET WILL FAVOR VERSATILE MISSILE DEFENSES
> By Megan Scully
>
>
> The military's No. 2 officer today warned that the missile defense > program
> must evolve into a more flexible system that can adapt to future,
> unexpected threats. Speaking at a missile defense conference this > morning,
> Gen. James Cartwright, vice chairman of the Joint Chiefs of Staff, > said
> budgetary pressures demand that the Defense Department invest in > systems
> that can adapt to unexpected threats. Cartwright added that the > department,
> wrapping up internal deliberations on the FY10 budget, is placing a
> priority on programs that allow the military to stay ahead of the > threat
> and maintain a "competitive edge" over potential adversaries. For > missile
> defense, that means developing sensors and command-and-control > technologies
> that allow the weapons system to change quickly. "The leverage is in > that
> sensor net and the leverage is in the command and control of that > sensor
> net," he said. "Would you buy, in tough economic times, something > that does
> one thing well or something that does 100 things well and you haven't
> thought of 50 of the 100 yet?"
>
> Also today, Senate Armed Services Chairman Carl Levin criticized the > Bush
> administration's handling of missile defense efforts. Under Bush, he > said,
> the Pentagon did not require the missile defense system -- the most
> expensive program on the Pentagon's books -- to go through rigorous > testing
> and adhere to strict acquisition regulations. "For the last eight > years,
> these programs have been exempted from normal acquisition > requirements and
> processes, and the results have not been favorable," Levin said. In a
> speech to the conference, Levin cited a recent GAO report, which > found that
> many technologies in core missile defense systems -- including the
> Ground-Based Midcourse Defense, Multiple Kill Vehicle and Airborne > Laser --
> are immature after years of development. "This is the high price > that we
> have paid for our failure to impose needed discipline on our overall
> acquisition system, and for our failure to complete needed system
> engineering tasks, perform appropriate developmental testing and > build and
> fully test prototypes," said Levin, who is sponsoring legislation with
> Senate Armed Services ranking member John McCain to overhaul the > Pentagon's
> weapons-buying system.
>
> Both Levin and House Armed Services Strategic Forces Subcommittee
> Chairwoman Ellen Tauscher, D-Calif., expressed confidence in new > leadership
> at the Missile Defense Agency. Agency chief Lt. Gen. Patrick > O'Reilly, they
> said, is committed to adequately testing the systems and otherwise > changing
> how missile defense capabilities get to the field. Tauscher, who is
> President Obama's pick to be undersecretary of State for arms > control and
> international security, acknowledged that funding levels for missile
> defense programs may decline because of budget pressures. Areas of
> potential cuts, she signaled, include problematic programs like the
> Airborne Laser, which is eight years behind schedule and $4 billion > over
> budget. "We can no longer continue to do everything and explore every
> potential technology," she said. "Missile defense cannot be like some
> second marriages -- the triumph of hope over experience."
>
>
> http://www.nationaljournal.com/congressdai...090323_5595.php
>
> -----
> GOVERNMENT OPERATIONS: CENSUS BUREAU OUTLINES MINORITY OUTREACH > PROGRAM
> By Carrie Dann
>
>
> Ghost towns created by foreclosures, underfunded local governments and
> significant language barriers are just a few of the problems that > will face
> census takers in 2010, the acting head of the U.S. Census Bureau > told a
> House panel today. But a network of community partners and a media > campaign
> bolstered by a recent influx of stimulus funds will help to target
> historically hard-to-reach communities for the high-stakes decennial > count.
> Testifying before the House Oversight and Government Reform > subcommittee
> that oversees the census, acting director Thomas Mesenbourg and others
> described an outreach effort that includes millions of dollars for > targeted
> ethnic and foreign-language advertising, as well as a focus on > reaching
> parents through their school-age children. More than 10,000 community
> organizations have committed to aiding the bureau effort, he added, > and
> additional funding provided from the American Recovery and > Reinvestment Act
> will provide a boost to paying for a staff devoted to cultivating > support
> for the census from local and community leaders. The bureau originally
> budgeted for a "partnership staff" of 680; stimulus funds will be > used to
> hire 2,000 more to be in place by June.
>
> The flagging economy makes the extra funding for paid media and the
> involvement of local community organizations in census outreach > crucial,
> said Robert Goldenkoff, GAO's director of strategic issues. "State and
> local governments do not have the budget, staff or time to address or
> promote the census," he said. Saying that government has "scared the
> bejesus" out of historically undercounted urban groups such as non-> English
> speaking Hispanics and blacks, Del. Eleanor Holmes Norton, D-D.C., > urged
> Mesenbourg to make use of trusted community and media voices to > ensure that
> minorities are not undercounted. Community leaders and locally > targeted
> media will be crucial to represent "a friendly voice," Norton said,
> emphasizing that those voices should come "not from the Census > [Bureau]."
> In September 2007, the bureau selected Chicago-based firm Draftfcb to
> implement its $312 million communication plan, which an executive > described
> today as right on track. "Today, we are exactly where we should be," > said
> Draftfcb executive vice president Jeff Tarakajian.
>
> As community organizations are brought into the partnership, House
> Oversight and Government Reform Committee Republicans are laying the
> groundwork for a political fight amid reports that one of their > party's
> favorite targets, the Association of Community Organizations for > Reform
> Now, will be one of many groups helping the census mobilization > effort.
> Without naming ACORN, a pro-Democratic Party group that has drawn > repeated
> Republican charges of systemic fraud in its voter registration > drives, Rep.
> Jason Chaffetz, R-Utah, pressed Mesenbourg to outline the specific > criteria
> that would be used to give community organizations the green light > to join
> the bureau's army of census promoters. It is "totally unacceptable and
> scary" that there are no standardized requirements for partner groups,
> Chaffetz said.
>
>
> http://www.nationaljournal.com/congressdai...090323_6100.php
>
> -----
> ENVIRONMENT: EPA RELEASES 'ENDANGERMENT FINDING' ON GAS EMISSIONS
> By Darren Goode
>
>
> The EPA has sent the White House an "endangerment finding" citing > global
> warming as a risk to public health and welfare, seen as a precursor > for
> congressional action mandating cuts in industrial greenhouse gas > emissions.
> The finding by EPA, sent Friday, was expected as President Obama has > been
> touting the need to mandate reductions in greenhouse gas emissions 80
> percent by midcentury. But it is still an important step for > advocates of
> mandatory reductions. "This is historic news," said Frank O'Donnell,
> president of Clean Air Watch. "It will set the stage for the first-> ever
> national limits on global warming pollution. And it is likely to > help light
> a fire under Congress to get moving."
>
> Industry groups said it will end up bottlenecking construction and > other
> projects because of litigation and regulatory obstacles. Bill > Kovacs, vice
> president of environment, technology and regulatory affairs at the > U.S.
> Chamber of Commerce, said environmental groups will sue EPA to make > the
> endangerment finding apply to the entire Clean Air Act. "And at that > point
> in time, you have a regulatory nightmare," Kovacs said. He said
> construction jobs funded by the economic stimulus plan will disappear
> because they will be subject to environmental reviews for greenhouse > gas
> emissions.
>
> Environmental groups and Democratic leaders blamed Bush administration
> officials for suppressing an endangerment finding from the agency. > House
> and Senate Democratic leaders are working on plans to reduce > greenhouse gas
> emissions through a market-based cap-and-trade program. Senate > Environment
> and Public Works Chairwoman Barbara Boxer said last week that an
> endangerment finding is needed to make sure that federal greenhouse > gas
> regulations hold legal water. "There is no question that the law and > the
> facts require an endangerment finding," she said. Neither Boxer nor > House
> Energy and Commerce Chairman Henry Waxman has released their cap-and-> trade
> proposals. Waxman plans to move cap-and-trade and energy legislation > in one
> large package through his panel by Memorial Day. Boxer may wait for > Waxman
> to act first before moving her proposal as she continues to work out a
> strategy for gaining at least 60 votes in the Senate.
>
>
> http://www.nationaljournal.com/congressdai...090323_1497.php
>
> -----
> GOVERNMENT OPERATIONS: POSTMASTER GENERAL TO FACE CONGRESS OVER
> COMPENSATION
> By Michael Posner
>
>
> With the U.S. Postal Service headed for its third year with a
> multibillion-dollar deficit, Postmaster General John Potter will > face tough
> questioning on Capitol Hill Wednesday to explain the red ink as well > as his
> compensation package. As last week's outrage over the American
> International Group executive bonus fiasco remains fresh in members' > minds,
> House Oversight and Government Reform Federal Workforce, Postal > Service and
> the District of Columbia Subcommittee Chairman Stephen Lynch, D-Mass.,
> promised to grill Potter, saying "the huge increase in pay for Mr. > Potter
> is incongruent with the post office's recent performance." The Postal
> Service, which is a semigovernment agency that has not received an
> operational subsidy from Congress since 1982, faces another massive > deficit
> that Potter estimates will reach $6 billion in FY09. This follows > deficits
> of $2.8 billion in FY08 and $5.1 billion in FY07. The service last > turned a
> profit of $900 million in FY06. Potter's $857,459 package in > includes base
> compensation for FY08 listed at $263,575, according to Postal > Regulatory
> Commission records with a $135,041 performance incentive bonus, > deferred
> until he leaves office. His other compensation includes $77,347 in > perks,
> including parking, life insurance premiums, airline clubs, spousal > travel
> and security, plus his $381,496 pension. Also deferred until he leaves
> office is accrued annual leave totaling more than $245,000, as of > September
> 2008, which he will receive in a lump sum. He has been in office > since June
> 2001.
>
> The salary for Potter and four lower-level postal executives was > approved
> by the U.S. Postal Service's Board of Governors in May 2007, > retroactive to
> January 2007. It first came to light in January under a Freedom of
> Information Act request by a trade publication. The board boosted > Potter's
> salary from $186,600 to $258,840 for FY07, but with deferred > compensation
> and performance incentive pay his compensation came to more than > $850,000
> that year and remained the same for FY08. The pay increases for > Potter and
> other top postal executives are a result of a 2006 Postal > Reorganization
> Act approved by Congress that allowed increases in salary for top > officers.
> Board of Governors Chairman Carolyn Gallagher and Postal Rate > Regulatory
> Commission Chairman Dan Blair are also scheduled to appear before the
> subcommittee Wednesday to explain the pay structure.
>
> Potter told the Senate Homeland Security and Governmental Affairs > Federal
> Financial Management Subcommittee in January the financial situation > of the
> mail service is "grave." To save money, he is proposing cutting back > six
> day mail delivery to five days -- which would require congressional
> approval to delete a rider on appropriations bills requiring six-day > mail
> service. The price of a first-class stamp is due to go from 42 to 44 > cents
> in May and commercial mail rates are also scheduled to rise. To help > reduce
> the deficit Potter wants Congress to end a structural requirement > that it
> pre-fund health benefits of future retirees that he says will save $2
> billion in FY09. Although Potter and other top executives have > received big
> pay boosts, he told the Senate panel he has frozen all their pay to > 2008
> levels.
>
>
> http://www.nationaljournal.com/congressdai...090323_8122.php
>
> -----
> ELECTIONS: SPECIAL ELECTIONS FERVOR DAMPENS OUTSIDE OF LIMELIGHT
> By Andy Leonatti
>
>
> When controversy swirled around the appointments of Sens. Kirsten
> Gillibrand, D-N.Y., and Roland Burris, D-Ill., the idea of holding > special
> elections to fill Senate vacancies started to gain favor. But only > months
> later the idea appears to have lost most of its momentum. Sen. Russell
> Feingold, D-Wis., along with House Judiciary Chairman John Conyers and
> House Rules ranking member David Dreier, R-Calif., have introduced a
> constitutional amendment that would strip the power of governors to > appoint
> senators. Proposals have popped up in 10 state legislatures this > year. But
> a spokesman for Conyers said "[We] don't have immediate plans" to > mark up
> the bill to keep it in the spotlight. So far, the only movement in > any of
> the states with pending legislation is Rhode Island, where it has > passed
> the House and passed the state Senate's Judiciary committee Tuesday. > Rhode
> Island has a Republican governor who has signaled opposition to the
> measure, but Democratic state Rep. David Segal said the bill stands a
> reasonable chance of being overridden because of the heavy Democratic
> majorities in the legislature.
>
> Segal, also an analyst for Fair Vote, testified before the House and
> Senate Judiciary Constitution subcommittees March 11 that many bills > stand
> no chance of passage due to the "awkward, frequently tense intra- and
> interparty political dynamics endemic to most state governments." > Segal
> said Rhode Island has the perfect formula for passing the legislation;
> veto-proof majorities of one party in the state House and Senate, > and a
> governor of the opposite party. Jennie Bowser with the National > Conference
> of State Legislatures said many states "tend to park [bills] until > the very
> end of the session," until they are forgotten. "[They] might have > just lost
> momentum," she said. In states with one-party control such as > Illinois,
> Colorado, New York and Maryland, where bills have been introduced, > there is
> not as much pressure to act on bills, Segal said. Special election
> legislation died in committee in both the Illinois House and Senate, > over
> what several Democrats said were concerns about the excessive costs of
> staging a special election to fill a vacancy. Illinois Republicans > have
> tried to keep the issue in the spotlight.
>
> Rep. Jerrold Nadler, D-N.Y., also expressed concern about cost, and > that a
> shortened election calendar would restrict the field to > establishment and
> wealthy candidates who could raise large sums or self-fund a campaign.
> Legislation died in committee in Colorado. Maryland has held > hearings, but
> the proposed bill would not take effect until 2015. Currently, only
> Massachusetts, Oregon and Wisconsin have laws filling vacancies by
> appointment. Former Illinois Democratic Gov. Rod Blagojevich appointed
> Burris in the midst of a scandal that saw him arrested for allegedly
> attempting to sell a Senate seat vacated by President Obama. In New > York,
> when Secretary of State Clinton vacated her Senate seat, Gov. David
> Paterson, a Democrat, faced criticism for a drawn-out process with > multiple
> high-profile names dangled in the spotlight, including Caroline > Kennedy and
> Attorney General Andrew Cuomo, before choosing Gillibrand. Vacancies > also
> opened up in Delaware (for Vice President Biden) and Colorado (for > Interior
> Secretary Salazar).
>
>
> http://www.nationaljournal.com/congressdai...090323_8474.php
>
> -----
> HILL BRIEFS: OBAMA WILL MEET WITH SENATE DEMS
>
> White House. President Obama will go to the Capitol Wednesday to > meet with
> the Senate Democratic Caucus. The meeting comes as both the White > House and
> the Senate are grappling with how best to change the legislation > crafted by
> the House to slap a punitive tax on the bonuses paid to top > executives of
> American International Group. The president has voiced doubts about > the
> constitutionality of using tax law to punish specific individuals > but both
> he and Senate Democrats want to be seen on the side of an angry > public.
>
>
> http://www.nationaljournal.com/congressdai...090323_9636.php
>
> -----
> HILL BRIEFS: GENSLER'S BACKERS REGROUP AFTER SANDERS PLACES HOLD
>
> Agriculture. Gary Gensler, President Obama's pick to head the > Commodity
> Futures Trading Commission, is getting support from backers today > following
> reports Friday that Sen. Bernie Sanders, I-Vt., has placed a hold on > the
> nomination. A spokesman for Senate Majority Leader Reid said today the
> White House "is trying to deal with the objections," while a > spokesman for
> Senate Agriculture Chairman Tom Harkin said his boss sees no reason to
> block the nomination. The Senate Agriculture Committee unanimously > approved
> Gensler's nomination last week. In an e-mail today, Sanders praised > Gensler
> as "intelligent and knowledgeable." But Gensler's past work with > former
> Sen. Phil Gramm, R-Texas, and former Federal Reserve Chairman Alan
> Greenspan to exempt credit default swaps from regulation rule him out,
> Sanders said. Another sticking point was Gensler's efforts to > deregulate
> electronic energy trading, which many say led to the downfall of > Enron. "We
> need an independent leader who will help create a new culture in the
> financial marketplace and move us away from the greed, recklessness > and
> illegal behavior which has caused so much harm to our economy," > Sanders
> wrote.
>
>
> http://www.nationaljournal.com/congressdai...090323_1361.php
>
> -----
> HILL BRIEFS: MORE KEY USDA NOMINATIONS ANNOUNCED
>
> Agriculture. Agriculture Secretary Vilsack announced today he has
> appointed Michael Michener, an international development specialist > who has
> worked for the State Department as a civil servant and a contractor, > as
> administrator of USDA's Foreign Agricultural Service. The agency runs
> USDA's international market development, export credit programs and > food
> aid programs. Michener most recently served in the State Department's
> Office of the Coordinator for Reconstruction and Stabilization and > was lead
> Iraq policy officer for the State Department's Bureau of Democracy, > Human
> Rights and Labor in 2005-07. He has worked for the U.S. Agency for
> International Development in Kosovo, Montenegro, and Bosnia and
> Herzegovina. Last year, when Vilsack was a fellow at Harvard > University's
> John F. Kennedy School of Government, he and Michener worked > together in a
> study group on Iraq and Afghanistan reconstruction. The position > does not
> require Senate confirmation. In related news, a spokesman for Senate
> Agriculture Chairman Tom Harkin said the committee has received the
> nomination papers for Kathleen Merrigan, the nominee to be deputy
> Agriculture secretary, and for James Miller, the nominee to be
> undersecretary for farm and foreign agricultural services. Both > positions
> require Senate confirmation.
>
>
> http://www.nationaljournal.com/congressdai...090323_7936.php
>
> -----
> HILL BRIEFS: ADELSTEIN: FCC LAGGING ON RURAL HEALTH IT GRANTS
>
> Technology. FCC Commissioner Jonathan Adelstein, who was tapped by
> President Obama to head the USDA's Rural Utilities Service, said > today a
> $417 million pilot program for awarding health information technology
> grants to rural areas is not advancing quickly enough. The FCC effort,
> unveiled in late 2007, has 37 projects at various stages of vendor
> selection and 69 total, but only one to date has been funded, he > said. "We
> need to make sure rural areas have access on par with urban centers. > It's
> going to take ingenuity and important planning from our government," > said
> Adelstein, who made his remarks at an event sponsored by the New > America
> Foundation and the wireless industry trade group CTIA. The RUS is the
> primary agency administering the $7.2 billion in broadband funding
> contained in the economic stimulus bill. Its programs traditionally > have
> focused on bringing electricity and telephone service to rural > America.
>
>
> http://www.nationaljournal.com/congressdai...090323_3464.php
>
> -----
> HILL BRIEFS: REP. LEVIN GETS A PRIMARY CHALLENGER
>
> House Races. Democratic state Sen. Mickey Switalski said Saturday he > plans
> to run for the seat held by Rep. Sander Levin, D-Mich., the Detroit > Free
> Press reported. "We can't continue with the status quo. We need to > make
> changes. I have the energy and fresh ideas to accomplish this," said
> Switalski, who is serving his final term in the state Senate. The race
> would pit two of the state's premier political families against each > other.
> Levin is the elder brother of Sen. Carl Levin, D-Mich. Two of > Switalski's
> brothers sit on the Macomb County Circuit Court.
>
>
> http://www.nationaljournal.com/congressdai...090323_1219.php
>
> -----
> HILL BRIEFS: HIGH COURT REJECTS APPEAL BY FORMER BORDER OFFICERS
>
> Judiciary. The Supreme Court has refused to hear an appeal from two > former
> Border Patrol agents -- Ignacio Ramos and Jose Compean -- convicted > in 2006
> of shooting a fleeing drug smuggler and trying to cover up the > incident,
> the Associated Press reported. Prosecutors said the former agents > fired 15
> shots at Osvaldo Aldrete, hitting him once. Investigators said the > agents
> never reported the shooting and tried to cover it up by picking up > several
> spent shells. The former agents' conviction had been affirmed by the > 5th
> U.S. Circuit Court of Appeals. They served two years in prison before
> getting their 10-year sentences commuted by former President George W.
> Bush.
>
>
> http://www.nationaljournal.com/congressdai...090323_1747.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "Retention bonuses are, to a great extent, extortion. It is people > saying
> ... I've got the combination to the safe, and if you don't bribe me, > I'm
> going to leave and you'll never be able to open the safe."
>
> -- House Financial Services Chairman Barney Frank, commenting Sunday > on
> CBS' "Face the Nation" on the American International Group bonus
> controversy.
>
>
> http://www.nationaljournal.com/congressdai...090323_3358.php
>

[Snuffysmith]

> CongressDaily PM for Monday, March 30, 2009
>
> --------------------
> CONTENTS
>
> FINANCE: EIGHT FINANCIAL SERVICES MEMBERS TARGETED ON CARD FEES
> By Bill Swindell
>
>
> A retailer coalition has launched a campaign to persuade eight House
> Financial Services Committee members to endorse an effort to curb > the fees
> that banks charge merchants for using a credit or debit card. The > Merchants
> Payment Coalition has singled out Reps. Shelley Moore Capito, R-> W.Va.; Bill
> Foster, D-Ill.; Paul Hodes, D-N.H.; Jim Gerlach, R-Pa.; Dan Maffei, > D-N.Y.;
> Walt Minnick, D-Idaho; Travis Childers, D-Miss.; and Jim Himes, D-> Conn., in
> a six-figure ad campaign using television, radio and newspapers. As > junior
> members on the panel and lawmakers from swing districts, the > coalition is
> hoping to bring them to its side. "This is the opening salvo. We are > going
> to be running it as long as it takes to solve the problem," said Hank
> Armour, president of National Association of Convenience Stores.
>
> The merchants are protesting the fee, which averages 1.75 percent, > that
> they are charged for using Visa and MasterCard networks to process > each
> debit- and credit-card transaction, arguing that they have no say in > the
> pricing and that rules are arbitrary. The fees totaled $48 billion > in 2008.
> Banks dispute the contention, saying that merchants are looking to > reduce
> their costs, not pass savings on to consumers. The push comes as the > Senate
> Banking Committee and the House Financial Services Financial > Institutions
> Subcommittee mark up bills this week that would curb what they call > abusive
> credit-card practices. Mallory Duncan, general counsel of the National
> Retail Federation, said the group is promoting provisions that would > allow
> stores to offer a discount for cash purchases and weaken rules > requiring
> merchants to accept all cards that are part of either the Visa or
> MasterCard system, including those that have more expensive fees, > such as
> signature debit cards. Those items could be offered as stand-alone
> amendments during the credit-card debate. "We're supportive of any > way it
> can be addressed," said Jennifer Hatcher of the Food Marketing > Institute.
>
> In the last Congress, the coalition pushed a measure that would > require
> Visa and MasterCard to negotiate with them on lowering the fee. The > House
> Judiciary Committee approved it, 19-16, but it was stalled in a
> jurisdictional spat with House Financial Services Chairman Barney > Frank.
> Since then, however, Frank "has indicated an expanded interest in > the issue
> because of the similar factors behind it and behind subprime > mortgages,"
> Duncan said. The rival Electronic Payments Coalition, which represents
> banks and card networks, contends that the vote count has not > changed much
> since last year's Judiciary vote, and that the issue remains deeply
> divisive. "Everyone in the industry is working to restore the > economy and
> protect consumers, the interchange bill does neither," Scott Talbott > of the
> Financial Services Roundtable said.
>
>
> http://www.nationaljournal.com/congressdai...090330_6002.php
>
> -----
> SENATE: BAYH IS PUSHED IN WASHINGTON BUT APPEARS SAFE AT HOME
> By Dan Friedman
>
>
> Newly visible as a leader of Senate Democratic centrists who have
> criticized some recent Senate bills from the right, Sen. Evan Bayh, > D-Ind.,
> is starting to face the kind of liberal criticism once reserved for > Sen.
> Joseph Lieberman, D-Conn. Progressive groups are pushing Bayh to > embrace
> President Obama's agenda and popular liberal blogs question his > motives.
> But Bayh and his backers shrug off the attacks, saying he is taking
> positions he has pushed throughout his career. "Folks in Washington > make a
> bigger deal out of it than folks back here," said Indiana Democratic > Party
> Chairman Dan Parker. "Sen. Bayh is doing what he's always done."
>
> Bayh is annually among senators most likely to cross party lines, > but he
> has drawn notice in recent months by not just bucking Democratic > leaders on
> key bills, but publicizing the break. Before voting against the FY09
> omnibus spending bill, Bayh faulted the measure in an op-ed article > that
> Minority Leader McConnell praised on the Senate floor. Bayh also > appeared
> on MSNBC to announce a moderate Democratic working group interested in
> trimming Obama's budget and is drafting a narrow alternative to a bill
> Senate Majority Whip Durbin is promoting to stem foreclosures by > letting
> bankruptcy judges cut borrowers' mortgage principal.
>
> In response, MoveOn.org, the Campaign for America's Future and > others last
> week began pressuring Bayh to back Obama's budget. Liberal bloggers
> speculate Bayh is positioning for his 2010 re-election bid, resents > missing
> out on the vice presidential nod last year, or is pushing the > interests of
> banking industry groups that have contributed to his campaign. But > Bayh
> calls each stance a policy-based response consistent with budget-> balancing
> goals he has pushed since his years as Indiana's governor, where he > left a
> budget surplus and did not raise taxes. "People who would make those
> comments are unfamiliar with my career," Bayh said in a brief > interview
> last week. "It's not an ideological thing. It's certainly not a > political
> thing."
>
> Ed Feigenbaum, who publishes newsletters on Indiana politics, said > Bayh's
> views are not calculated and reflect the philosophy of conservative
> "Butternut Democrats" in southern Indiana. Feigenbaum argued Bayh has
> stepped forward because of circumstance: the prominence of fiscal > matters,
> his increased Senate tenure and the national recognition in late > 2007 as he
> briefly contemplated a presidential run. Feigenbaum and others > argued Bayh
> has no need to maneuver for a 2010 race in which he has no opponent > and
> almost $11 million on hand. "I'll give you 11 million reasons why > he's not
> positioning himself for 2010," Feigenbaum said. "In a recession, > it's going
> to be very difficult for anyone to raise the kind of money you need as
> challenge him." Marvin Scott, a Butler University sociology > professor who
> challenged Bayh in 2004 and said he has not ruled out another run, > called
> Bayh's voting record calculated and faulted his robust out-of-state
> fundraising. But Scott said Bayh is "ingrained into the psyche of the
> Indiana people," and deters challengers with a reputation of > invincibility.
> National Republican Senatorial Committee Chairman John Cornyn of > Texas said
> Bayh looks "pretty good" in 2010 and suggested NRSC will not spend > much on
> the race. "We have a sort of priority list," Cornyn said. "He's down > on
> that." Cornyn praised Bayh's recent stands. "I welcome what he's been
> trying to do around here," Cornyn said. "What he's doing is > constructive."
>
>
> http://www.nationaljournal.com/congressdai...090330_3049.php
>
> -----
> ECONOMY: OBAMA PUTS TOUGH CONDITIONS ON ADDITIONAL AUTO BAILOUT
> By George E. Condon Jr. and Darren Goode
>
>
> President Obama, declaring the government "will not let our auto > industry
> simply vanish" but decrying "a failure of leadership" in Detroit and
> Washington, said this morning that General Motors will have 60 days > and
> Chrysler will have 30 days to firm up restructuring plans if they > want more
> federal bailout help. The administration plan was developed on the
> recommendations of the auto task force Obama appointed. It is one of > the
> more muscular uses of presidential authority in American history, as
> evidenced by forcing the ouster of the head of one private company > -- GM
> CEO Rick Wagoner -- and ordering the merger of another private firm --
> Chrysler with Fiat. The unprecedented White House moves were greeted > warily
> by investors, with the Dow Jones industrial average falling around 300
> points. But they appeared to have one quick result -- a preliminary > deal
> between Chrysler and Fiat was reported less than two hours after Obama
> spoke.
>
> GM and Chrysler have received $17.4 billion so far and GM has asked > for
> more than $16 billion in additional loans. They were required by the > end of
> the month to come up with proposals to revitalize their companies and
> become solvent in order to receive more federal aid. But the > president,
> concluding that the industry is "not moving in the right direction > fast
> enough to succeed," bluntly rejected their plans. "After careful > analysis,
> we have determined that neither goes far enough to warrant the > substantial
> new investments that these companies are requesting." He said the
> automakers must move fast to "produce plans that would give the > American
> people confidence in their long-term prospects for success" and he > warned
> that the companies must make "hard choices" and that workers who > have made
> "extraordinarily painful concessions" will have to make more. "These
> companies -- and this industry -- must ultimately stand on their > own, not
> as wards of the state," he declared.
>
> Sen. Carl Levin, D-Mich., said Obama risks jeopardizing consumer
> confidence by talking about the prospect of a controlled bankruptcy > for an
> auto giant. "Any suggestion of bankruptcy carries the risk that that
> confidence is weakened," Levin said. But he also stressed that Obama > made
> clear he was "absolutely committed to a strong and viable auto > industry in
> Michigan. ... There was a lot here to be very positive about in the
> president's statement." Sen. Bob Corker, R-Tenn., a leading > congressional
> backer of making the companies restructure through bankruptcy, said > the
> firing of Wagoner "is a sideshow to distract us from the fact that the
> administration has no progress to announce today. The administration > is
> hoping the media and the public will stay focused on Wagoner and > fail to
> notice that negotiations have not progressed since December." Corker > called
> the announcement "a major power grab" by the administration that > "should
> send a chill through all Americans who believe in free enterprise."
>
> The president sought to reassure consumers that their warranties > will be
> honored and that financing will be available if they want to buy
> American-built cars. And he promised to work with Congress, > suggesting he
> could support a measure pushed by some in Congress to provide "an > even more
> ambitious incentive program to increase car sales while modernizing > our
> auto fleet." He said this program would provide "a generous credit to
> consumers who turn in old, less-fuel-efficient cars and purchase > cleaner
> cars."
>
>
> http://www.nationaljournal.com/congressdai...090330_4404.php
>
> -----
> BUDGET: WEEKLONG DEBATE ON SPENDING PRIORITIES BEGINS IN SENATE
> By Humberto Sanchez
>
>
> Senate Democratic leaders today touted the merits of the Senate's FY10
> budget resolution, which sets the stage for Congress to pursue > healthcare
> reform and other initiatives in President Obama's budget outline as > the
> Senate began 50 hours of debate on the measure. No votes were set for
> today. Senate Budget Chairman Kent Conrad said the resolution would > cut the
> deficit by two-thirds over five years and includes deficit-neutral > reserve
> funds for healthcare reform, energy and education -- three pillars > of the
> Obama agenda. The funds allow the committees of jurisdiction to draft
> legislation on the three issues, such as a cap-and-trade program to > limit
> greenhouse gas emissions. Conrad called healthcare reform an > imperative in
> order to help tackle the problem of the long-term deficit. "That is > the
> part of our spending that is absolutely out of control and the only > way to
> get it back under control is fundamental healthcare reform and that is
> provided for in this budget on a deficit neutral basis," he said.
>
> Conrad repeated his oft-stated position that reconciliation should > not be
> used for passing healthcare legislation, but he said if there is no
> Republican cooperation a second budget resolution could be written > later
> this year to allow it. "I believe there are a group of Republicans who
> fully intend to help write major healthcare reform legislation, and > they've
> said so publicly and privately. And we, I think, ought to engage > them," he
> said.
>
> Democrats emphasized that Obama inherited a record budget deficit > that was
> created under President George W. Bush. Conrad said the debt under > Bush
> grew from $5.8 trillion to over $12 trillion, more than half of > which is
> held by foreign governments, according to Conrad. Senate Budget > ranking
> member Judd Gregg said that under Obama's proposal -- which is > essentially
> the same as the resolution -- the debt would double in five years and
> triple in 10 years. The Senate budget resolution "represents a clear > and
> present danger to the financial health or our nation and to the > financial
> security of our children," Gregg said. Republicans intend to offer a > raft
> of amendments to the resolution this week, including proposals to > bring
> down spending in the measure.
>
>
> http://www.nationaljournal.com/congressdai...090330_5696.php
>
> -----
> HEALTH: RETAIL GROUPS PUSH CPSC FOR RE-EVALUATION OF LEAD BAN
> By Kasie Hunt
>
>
> The ban on lead in children's toys that Congress enacted last year is
> causing a partisan and personal fight among business groups, > congressional
> Democrats and the leadership of the Consumer Product Safety > Commission.
> Business groups want Congress to re-evaluate the new consumer safety > law,
> which banned lead and phthalates from children's toys and increased > funding
> for the CPSC because the lead provision applies to an unexpectedly > wide
> range of products. Many retailers -- including thrift stores, > bookstores,
> and even yard sales and church bazaars -- have been affected, and > the CPSC
> has been inundated with requests for guidance and clarification. In a
> letter to Congress last week, Acting CPSC Chairwoman Nancy Nord said > the
> agency has been overwhelmed and its mission is imperiled because of > the
> law.
>
> "They really need to stay this entire legislation for a significant > period
> of time, say a year, to facilitate a series of hearings so the > issues can
> be fleshed out," said Rick Woldenberg, who heads the Alliance for
> Children's Product Safety, a coalition of business groups. The > Alliance is
> planning a Wednesday Capitol Hill rally to call for changes in the > law.
> "It's not as if you change a word here or a word there the problem > goes
> away. We'd like to start a process to fix the law and take some of the
> businesses that are being crushed by it right now," he added.
>
> Consumer groups acknowledge implementing the law has been > challenging, but
> they argue leadership at the CPSC is largely responsible for the
> difficulties. "They are problems that very easily could have been > avoided,"
> said Ami Gadhia, policy counsel at the Consumers Union. "Instead > they've
> either been slow to put out regulation, or what they have put out > hasn't
> always been as clear as it should be. That's resulted in a lot of the
> confusion for the thrift stores and the libraries." Rachel > Weintraub, who
> directs product safety at the Consumer Federation of America, said the
> solution "is not opening up the law and weakening it."
>
> Congressional Democrats have laid the blame at Nord's feet. "I feel > that
> Chairman Nord is creating some of these problems unnecessarily," > said Sen.
> Mark Pryor, D-Ark., a chief architect of the original law. "We gave > the
> commission plenty of room and plenty of authority to manage the > transition
> without having to redo this law. Let's see who the president is > going to
> nominate as the next chairman of the commission."
>
> Senate Majority Whip Durbin accused Nord last week of allowing > "misguided
> personal views" impede the agency's implementation of the new law > and said
> she failed to emphasize consumer safety. Joseph Martyak, Nord's > chief of
> staff, disputed Durbin's charge and said Nord had repeatedly > emphasized
> consumer protection both in her public appearances and in last week's
> letter to Congress. "We should be able to discuss how and why the law
> should or should not be changed without recriminations and personal
> attacks," she said in a recent speech. She is planning to respond to > Durbin
> in a letter this week, Martyak said.
>
>
> http://www.nationaljournal.com/congressdai...090330_3872.php
>
> -----
> GOVERNMENT OPERATIONS: CENSUS OFFICIALS LAUNCH BID TO WIN TRUST OF
> IMMIGRANTS
> By Carrie Dann
>
>
> With a year to go until Census Day, earning the trust of historically
> undercounted communities remains a key challenge for decennial
> headcounters, census officials and lawmakers said today. In a > kickoff event
> for "census partnership" organizations ranging from the NAACP to the > Target
> Corp. retail chain, leaders of the 2010 effort stressed the need to
> demystify the census among hard-to-reach populations that may be > reluctant
> to offer personal information to gover