Congress Daily Options

[Snuffysmith]

> CongressDaily AM for Tuesday, Oct. 20, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: CHANGE IN MARK WOULD AFFECT TAX CREDIT QUALIFICATION
> By Peter Cohn
>
>
> Fewer middle-income families would qualify for tax credits to purchase
> health insurance, under a little-noticed change to the Senate Finance
> Committee health bill made just before the markup began in late > September.
>
> Under the bill, eligible individuals and families with annual > incomes of
> between 100 and 400 percent of the federal poverty line would > receive tax
> credits to cover the cost of insurance purchased through state > exchanges.
> As part of a package of managers' modifications, Finance Chairman Max
> Baucus changed the definition of income from "modified adjusted gross
> income," or AGI plus investment interest, to simply "modified gross
> income."
>
> That is a departure from the way all other federal tax credits are
> calculated, and it means when determining eligibility for the > credit, the
> IRS would have to disregard a household's usual above-the-line > deductions,
> such as for individual retirement account contributions and college
> tuition.
>
> The effect of the change would be to put the credit out of reach for > some
> families that otherwise would have received them by putting them > over the
> 400 percent of poverty threshold; others would see a reduced credit. > It
> also could create administrative problems for the IRS, a Senate aide > said,
> which would have to create an income base from which to determine > credit
> eligibility.
>
> The amount of money saved by the change, $1.8 billion according to the
> Joint Committee on Taxation, might be small in the context of an $829
> billion bill. And the combined effect of the managers' package > actually
> provided an extra $48 billion to make the tax credits more generous, > and
> penalties for failure to buy insurance less onerous, even after > changing
> the income definition.
>
> But it represents the frenzied back-and-forth Finance aides have gone
> through to make the numbers add up without adding to the deficit.
>
> Under the Finance bill, individuals and families receive tax credits > on a
> sliding scale, based on what percentage of income goes toward the > cost of
> insurance premiums. Beginning in 2013, a family of four with household
> income above 133 percent of the poverty line -- that goes down to 100
> percent beginning the following year -- would receive a credit worth 2
> percent of income, rising to 12 percent for those in the 300 to 400 > percent
> of poverty range. Those figures are down from 3 percent and 13 percent
> respectively, a change Baucus made to help make buying insurance more
> affordable that made up most of the added $48 billion cost of his
> modifications.
>
> More affordable for some, but not all. The change would mainly hit
> potential credit beneficiaries in the 300 to 400 percent of poverty > range,
> who are more likely to have IRA contributions or other deductions from
> gross income, according to Senate aides.
>
> In 2013, 400 percent of poverty for a family of four is estimated to > be
> $91,200. The premium credit would offset the difference between the > cost of
> that family's insurance coverage and 12 percent of its gross income, > which
> in this case is $10,944. So if the premium is, for example, $15,000, > the
> family would get a subsidy lowering the cost of their coverage by > $4,056.
>
> Under the original bill, that family could have factored in IRA
> contributions and other deductions and received a tax credit of that
> amount. In the modified mark, they would no longer receive a tax > credit to
> purchase health coverage, because they would now be above 400 > percent of
> poverty.
>
> "The committee wanted to ensure that the measure of income used was > the
> most accurate reflection of an individual or family's true economic
> circumstances," a Finance aide said. "This change was made to ensure > that
> the people who are receiving the credit are the people whose > household cash
> flow represents true need."
>
> The differences can be subtle. Take a household with no children > earning
> $50,518 in modified adjusted gross income, which is not quite 350 > percent
> of the poverty line using 2009 dollars.
>
> For purposes of their health insurance tax credit, under the new
> definition using modified gross income, that figure would climb by > $662 on
> average, under a simulation run by the Tax Policy Center. If that
> household's insurance coverage costs $8,000, again assuming 2009 > dollars,
> the effect of the added income would reduce the value of that > family's tax
> credit by about $80.
>
> Tax experts who looked at the change said while it was unusual, it's > not
> completely surprising. One analyst who asked not to be named noted the
> House had already gone in the direction of capturing more revenues > than the
> norm, by making its 5.4 percent "surtax" on the wealthy based on > modified
> AGI. That is a departure from current law, which mainly taxes that > income
> after standard and itemized deductions.
>
> Tax Policy Center co-director Rosanne Altshuler said that while > modified
> gross income is not used elsewhere in the tax code for other > credits, it
> might be a more accurate definition for income used to define federal
> poverty levels. She noted that the Census Bureau uses money income > as the
> standard to compute poverty status. That category includes all forms > of
> income other than capital gains or losses and noncash benefits such > as food
> stamps.
>
>
> http://www.nationaljournal.com/congressdai...091020_3103.php
>
> -----
> FINANCE: CONSUMER GROUPS FACE FIRE ON CFPA
> By Bill Swindell
>
>
> Consumer groups could suffer another setback today on legislation to
> create a Consumer Financial Protection Agency, not at the hands of New
> Democrats on the House Financial Services Committee but by someone > more
> liberal.
>
> Rep. Gwen Moore, D-Wis., appears close to getting her amendment > adopted to
> exclude providers of credit insurance -- such as title and private-> mortgage
> insurance -- from regulation by the CFPA. The Treasury Department in > its
> proposal had included those industries under the proposed agency's > purview,
> arguing their products are different than auto and home insurance and
> deserve greater scrutiny.
>
> Moore is sponsoring the amendment to exempt credit-insurance > products at
> the behest of the credit union industry, specifically CUNA Mutual > Group,
> the nation's largest credit-life insurance provider, located in > Madison,
> Wis.
>
> Moore contends all insurance products should be treated the same and > no
> carriers should be singled out for greater scrutiny -- rather, > regulation
> should continue at the state level. Financial Services Chairman Barney
> Frank has not weighed in, but sources said he has raised no > objections. A
> Frank spokesman said he could not comment on Frank's stance as the > panel
> will resume the CFPA markup today.
>
> "The underlying bill only proposes to regulate mortgage, credit and > title
> insurance, leaving out all other lines of insurance. We cannot > cherry-pick
> the types of insurance we want to regulate in this bill. Aside from > the
> fact that the bill is supposed to be about credit and lending product
> regulation -- not insurance regulation -- cherry-picking three types > of
> insurance products is simply bad policy," Moore said in a statement.
>
> Consumer activists are lobbying against the exclusion, arguing the
> industry needs to be under CFPA oversight, noting that since 2004 > consumers
> have been overcharged $17.5 billion for credit insurance products.
>
> Travis Plunkett, legislative director for the Consumer Federation of
> America, said such products have a low loss ratio, significantly > below a
> minimum 60 percent level called for by the National Association of
> Insurance Commissioners.
>
> He argues much of the problem is due to a structure where the insurer
> sells indirectly through a lender, which in turn sells the product > to the
> borrower. Such a system spurs a race to provide higher compensation > to the
> lender, Plunkett argues, rather than providing the best deal for the
> consumer.
>
> "We're talking about insurance that is vastly overpriced," he said.
>
> Consumer groups are focusing on credit-life insurance products > relating to
> car loans and credit cards, which would pay off such debts in the > event of
> incidents such as death and serious illness. Ed Mierzwinski, program
> director for U.S. Public Interest Research Group, said such insurance
> should not be bought 99 percent of the time because the benefits go > to the
> lender, not survivors. Heirs typically are not responsible to pay off
> decedents' debts.
>
> "From a policy standpoint, credit insurance is the absolute worst > kind of
> insurance and the most overpriced with the least benefit to > consumers,"
> said Mierzwinski. "It's sold under a massive commission to the > financial
> institution that is able to piggyback it onto its credit products like
> title insurance and private-mortgage insurance." The Moore amendment > comes
> on the heels of other significant efforts by business groups to > weaken the
> bill. Last week, small banks and credit unions succeeded in getting
> language exempting banks with less than $10 billion in assets and > credit
> unions with less than $1.5 billion in assets from examination and > primary
> enforcement provisions from the CFPA, keeping those powers with their
> current regulators.
>
> Reps. Melvin Watt, D-N.C., and Dennis Moore, D-Kan., are expected to > offer
> an amendment today to reach middle ground on whether state laws > should be
> able to supersede agency regulations.
>
> Their amendment would exempt national banks from state laws if the > Office
> of the Comptroller of the Currency determines that it "significantly
> interferes" with the OCC. Consumer groups are lobbying for the CFPA, > not
> the OCC, to make the call.
>
> Gwen Moore contends consumer activists' worst fears will not be > realized
> because the agency would still have authority to go after abusive and
> unfair products, including credit insurance products. Instead of > focusing
> on the insurance carrier, though, the agency would target the lender > and
> still provide the consumer the same amount of protection, her argument
> goes.
>
> "My amendment would preserve the CFPA's authority to regulate those
> lenders who offer credit, title and mortgage insurance to consumers, > while
> eliminating the CFPA's authority to regulate insurers, who fall > under the
> regulatory authority of state insurance commissioners," she added in a
> statement.
>
> A House aide said the CFPA would first have to contact a state > insurance
> commissioner before taking action. "Sure, they would have to call > the state
> insurance commissioner and say, 'I don't know why you let this go > through.'
> But it will still have this authority," said one House aide. The > aide said
> much of the consumer groups' ire comes over the loss-ratio amounts, > but the
> CFPA is not empowered to address that issue in the underlying bill.
>
> Jimi Grande, senior vice president of federal affairs for the National
> Association of Mutual Insurance Companies, said the products are > heavily
> regulated at the state level. "It's not as though we have discovered a
> product out there that is slipping between the cracks. This would just
> create another layer for these guys," said Grande. CUNA Mutual > belongs to
> NAMIC.
>
> Mierzwinski said CUNA Mutual had an advantage because of its > association
> with the Credit Union National Association, which has good relations > on
> Capitol Hill with lawmakers on both sides of the aisle. The carrier > is one
> of the more responsible providers of such products, not offering > some of
> the more questionable type single-premium credit insurance, as > opposed to
> others that have a poor reputation, sources noted.
>
> Gwen Moore's outreach proved key with getting more liberal members on
> board, Grande said, especially with an uphill battle to take it out > after
> Treasury had included it at the urging of consumer groups.
>
> "If you ask me a month ago, I thought we wouldn't get a lot of > traction on
> it. Gwen has carried a lot of water," he said.
>
>
> http://www.nationaljournal.com/congressdai...091020_4649.php
>
> -----
> HEALTH: GROUPS TO PUSH SENATORS ON AFFORDABILITY OF COVERAGE
> By Anna Edney, with Dan Friedman contributing
>
>
> Patient, consumer and labor groups are crafting a proposal they plan > to
> shop to key senators to make health coverage more affordable than it > would
> be under legislation approved by the Senate Finance Committee, > hoping to
> influence a final Senate version of healthcare overhaul.
>
> Eleven groups, including AARP, The American Cancer Society Cancer > Action
> Network and the Service Employees International Union, are working > on the
> pitch, which has not been signed off on by every group.
>
> A draft outline pushes further expanding Medicaid to those earning 150
> percent of the federal poverty level and decreasing out-of-pocket > costs for
> certain wage earners. The changes would cost $103 billion, according > to the
> outline. It does not suggest a specific offset, but it said the groups
> might ask leaders to designate any additional cost savings > identified in
> the final bill to be allocated toward affordability measures.
>
> Those 11 organizations, including the American Heart Association and
> Consumers Union, put out a statement Monday pushing for a final > Senate bill
> that "makes high quality health care affordable for all Americans."
>
> "The current proposal that cleared the Senate Finance Committee does > not
> yet pass that test," they wrote. The specifics on the groups' pitch to
> improve affordability did not accompany the letter but are being > quietly
> finalized.
>
> Democrats and Republicans have expressed concerns the Finance > legislation
> does not do enough to make insurance affordable, particularly given it
> mandates everyone purchase coverage.
>
> Senate Majority Leader Reid, Senate Finance Chairman Max Baucus and > Senate
> Banking Chairman Christopher Dodd, the point man for the Health, > Education,
> Labor and Pensions Committee's bill, met Monday to negotiate the > public
> option as well as affordability, a Reid spokesman said. The group > plans to
> reconvene today to continue melding the HELP and Finance proposals.
>
> The Finance measure -- as well as the three House committees' overhaul
> bills -- expands Medicaid to those earning 133 percent of the federal
> poverty level, while the HELP's version is set at 150 percent. The > more
> inclusive expansion would cost an additional $19 billion.
>
> The groups based their cost estimates on analysis done by > Massachusetts
> Institute of Technology economics professor Jonathan Gruber. He does > not
> necessarily endorse the groups' ideas but was instrumental in > helping shape
> Massachusetts' health reform effort. He is the healthcare program > director
> at the National Bureau of Economic Research.
>
> The proposal calls for the final Senate measure to establish subsidy > and
> coverage levels in between those in the Finance and HELP bills. CBO
> determined HELP's bill would not reduce the growth of cost spending, > which
> makes relying solely on the provisions in that version unlikely.
>
> The proposal calls for the final bill to increase -- by one-third of > the
> difference between the Finance and HELP bills -- premium subsidies for
> those earning between 150 percent and 250 percent of the federal > poverty
> level and the percentage of the cost of covered services an > insurance plan
> assumes for those earning between 150 percent and 400 percent of the
> federal poverty level.
>
> Baucus said Monday the affordability issue has "a lot of moving > parts."
>
> The Finance Committee issued its committee report on the overhaul > measure
> Monday, complete with dissenting views from members. Finance made > all 1,502
> pages of the legislative language of its bill available Monday.
>
> Five committee Democrats wrote with concerns that an excise tax on
> high-cost "Cadillac" insurance plans -- starting at $8,000 for > individuals
> and $21,000 for families -- will hit the middle class despite > changes made
> during committee to make the proposal more friendly towards those with
> high-risk jobs.
>
> "We remain concerned the thresholds are too low and will impact > plans that
> are not overly generous and that in 2019 far too many plans will be
> impacted by the excise tax," wrote Health Subcommittee Chairman John > (Jay)
> Rockefeller of West Virginia and Sens. John Kerry of Massachusetts, > Charles
> Schumer of New York, Debbie Stabenow of Michigan and Robert Menendez > of New
> Jersey.
>
> Several Democrats, including Majority Whip Durbin, have said the > threshold
> for excise taxes will likely increase in the merged bill. Senators and
> aides have said there is momentum for a plan by Sen. Thomas Carper, > D-Del.,
> whereby states could opt-in or out of a public option or a version > of the
> trigger plan proposed by Sen. Olympia Snowe, R-Maine. But no > combination
> commands 60 votes, meaning Reid will have to persuade some Democrats > to
> change their stated positions to pass the bill.
>
> "At the end of the day you are trying to get to 60; right now, there
> doesn't seem to be an option out there that can get us to 60, unless > [some
> senators] back away from their positions," a senior Democratic aide > said
> Monday.
>
> Rockefeller for the first time detailed concerns he had with an > exemption
> Baucus created for the hospital industry from cost-cutting > recommendations
> that would be handed down by a Medicare commission. Rockefeller > originally
> championed the commission as a way to remove special interest > influence
> over cost-cutting decisions.
>
> "The language to protect certain providers weaves special interests > into
> the very fabric of the commission," Rockefeller wrote.
>
> He added that he plans to work to eliminate the carve-out, signaling > he is
> not satisfied by an amendment passed in committee that would permit > the
> commission to make nonbinding cost-cutting recommendations about the
> hospital industry.
>
>
> http://www.nationaljournal.com/congressdai...091020_7773.php
>
> -----
> TELECOMMUNICATIONS: EXECUTIVES, TRADE GROUP TAKE SIDES ON PENDING > FCC VOTE
> By David Hatch
>
>
> Top executives from Silicon Valley provided FCC Chairman Julius
> Genachowski with some political cover for his controversial plan to
> strengthen the agency's network neutrality rules while an association
> backed partly by AT&T and Verizon launched an advertising campaign > opposing
> the move.
>
> Both sides used economic arguments to reinforce their opposing > positions.
>
> The developments preceded Thursday's planned commission vote on a > proposal
> to expand and toughen agency guidelines designed to preserve the > Internet's
> openness.
>
> The ad campaign, which includes spots in Capitol Hill publications > and on
> WTOP news radio, is sponsored by the U.S. Internet Industry > Association, a
> nonprofit broadband trade group representing 200 members, most of them
> Internet service providers.
>
> Link Hoewing, vice president of Internet and tech policy at Verizon, > is
> among its board members. USIIA President and CEO David McClure said > the
> campaign was limited and would likely end Wednesday.
>
> AT&T and Verizon, along with other major telecom and cable carriers,
> strongly oppose the proposed rule changes, arguing that additional
> regulations would interfere with their ability to manage traffic on > their
> networks. The proposal is widely viewed as the first step toward more
> stringent rules to be enforced by the agency.
>
> "Who would hurt jobs in a recession?" the print version of the USIIA > ad
> states. "Jobs and the economy is the number one issue facing our > country.
> Yet the Federal Communications Commission is proposing a measure > that would
> throw the broadband industry into turmoil, badly hurting broadband
> companies and their one million jobs."
>
> In a letter to Genachowski Monday, 27 senior executives of many of the
> country's biggest technology firms sought to counter such arguments by
> arguing that "an open Internet fuels a competitive and efficient
> marketplace."
>
> They added, "This allows businesses of all sizes, from the smallest
> startup to larger corporations, to compete, yielding maximum economic
> growth and opportunity."
>
> Signatories included Amazon Founder and CEO Jeff Bezos, eBay CEO John
> Donahoe, Google CEO Eric Schmidt, IAC Chairman and CEO Barry Diller, > Skype
> CEO Josh Silverman, Sony Electronics President & COO Stan Glasgow, > Tivo
> President & CEO Thomas Rogers, Twitter Co-Founder & CEO Evan > Williams and
> YouTube Founder Steve Chen.
>
> Genachowski also received a vote of confidence from White House Chief
> Technology Officer Aneesh Chopra, who reaffirmed the Obama > administration's
> support for his proposal during a weekend appearance on C-SPAN.
>
>
> http://www.nationaljournal.com/congressdai...091020_1733.php
>
> -----
> ENVIRONMENT: CHAMBER WANTS THE LAW TO HELP GO AFTER 'YES MEN' HOAX
> By Darren Goode
>
>
> The U.S. Chamber of Commerce is seeking law enforcement help in
> investigating Monday's hoax by pranksters posing as the business > group and
> claiming it supported a draft Senate climate bill.
>
> "These irresponsible tactics are a foolish distraction from the > serious
> effort by our nation to reduce greenhouse gases," Chamber Senior Vice
> President for Communications and Strategy Thomas J. Collamore said > in a
> statement. Collamore added, "We will be asking law enforcement > authorities
> to investigate this event."
>
> A Chamber spokesman said the group "is standing by the statement" and
> declined further comment on an investigation.
>
> A spokesman for House Global Warming Chairman Edward Markey said the > hoax
> against the Chamber "has not been discussed here as of yet." Markey > has
> been probing falsified letters sent to three House Democrats prior > to a
> House climate vote this year. The letters were sent from a lobbying > firm --
> hired by a coal industry group -- that falsely claimed to represent
> opposition to the House bill from local NAACP, Hispanic and other
> organizations.
>
> A GOP spokesman for Markey's select committee did not know whether it
> would be brought up at an upcoming hearing on those letters. The > hearing --
> initially set for last week -- was postponed, likely until Oct. 29. > "We're
> looking into it now," the GOP spokesman said.
>
> Monday's hoax involved a morning event at the National Press Club
> apparently orchestrated by The Yes Men, a group that describes > itself as
> corporate impostors and activists. Members of the group have performed
> other hoaxes, notably posing as a spokesman for Dow Chemical and > going on
> the BBC to announce Dow was taking responsibility for the Bhopal > disaster,
> as well as printing fake copies of the New York Post during last > month's
> U.N. climate conference bearing the headline, "We're Screwed." A movie
> about their exploits, "The Yes Men Fix The World," is in limited > release.
>
> According to a blow-by-blow provided by National Press Club President
> Donna Leinwand, two young women claiming to be members of a group > called
> the "U.S. Council on Climate" Friday requested a room at the Club > for a
> Monday morning event. The Club later Friday received a contract > signed by
> two persons, including one named "Kristiane Skolmen." The room was > paid for
> with a credit card.
>
> A "US CoC" representative Monday morning contacted the Press Club and
> asked to change the contact person for the event from Skolmen to > "Erica
> Avidus." Avidus was then listed as the contact person for a press > release
> later that morning purporting to be from the Chamber and for an event
> featuring Chamber President Tom Donohue to talk about the group's > position
> in the climate talks.
>
> The Chamber has been a leading opponent of a House-passed cap-and-> trade
> bill and has not issued a formal position on the draft Senate bill, > which
> includes a tougher mid-term emission reduction target. Its position > in the
> climate debate has led to a handful of recent defections or partial
> defections by member companies -- including Apple, Exelon and Nike.
>
> The hoax press advisory included contact information for Avidus, > including
> a number that when called played the message, "Hello you've reached > Erica
> Avidus at the Chamber of Commerce, please leave a message." But a > Chamber
> spokesman said no one by that name works for the trade association. > There
> was also no response to the e-mail address included in the fake press
> release.
>
> There were a couple of clues in the press release that something was
> amiss. For one, it misspells Donohue's name as "Donahue." It also > stated
> that the Chamber represents more than 300,000 businesses and > organizations,
> whereas the real Chamber has officially claimed a membership of more > than 3
> million.
>
> This membership distinction has been a recent point of contention > between
> the business group and left-wing activists. The magazine Mother > Jones ran
> an Oct. 13 piece debunking the 3 million number and instead saying the
> Chamber's membership is probably closer to 200,000.
>
> About an hour before the scheduled 11 a.m. Press Club event and > after the
> fake advisory was issued, the Chamber contacted the Club to tell > them that
> the event was a farce. Leinwand said Club officials by that point were
> already suspicious. Representatives of the faux Chamber were called > into
> National Press Club Assistant General Manager David King's office and
> admitted that they were Yes Men members performing a spoof, Leinwand > said.
> They were told it was illegal to falsely claim to represent the > Chamber and
> to remove any material at the event purporting that claim, she said.
>
> The Yes Men representatives were "argumentative," Leinwand said, and > at
> one point demanded that their credit card be refunded. Press Club > officials
> refused and banned the group, though they did not remove them from the
> premises because they were told a real representative from the > Chamber was
> on the way. "They were the one who were getting punked here, not us,"
> Leinwand said of the Chamber. "It's not our trademark to protect."
>
> The "press conference" then began as planned until it was broken up > when a
> genuine Chamber spokesman confronted the faux Chamber officials > after about
> 15 minutes.
>
> Despite the hoax, Leinwand said the Press Club does not plan to > change its
> policies for renting rooms for events. "We do 1,000 press > conferences a
> year," with the vast majority occurring without problems, Leinwand > said.
> "We're not going to change our policies for one thing."
>
> She said senior Club officials have agreed, though, that at least if
> something smells fishy, "especially a last-minute press conference, > maybe
> we'll make some phone calls." She added, "This is Washington, D.C.; > I mean,
> groups form all the time."
>
>
> http://www.nationaljournal.com/congressdai...091020_6502.php
>
> -----
> DEFENSE: ARMY MAKING PROGRESS ON PLAN FOR NEXT COMBAT VEHICLE
> By Megan Scully
>
>
> Six months after the demise of the $160 billion Future Combat > Systems, the
> Army's latest effort to modernize its fighting forces is well under > way,
> hitting two milestones last week that ultimately will define what the
> service's next combat vehicle will be and how the Army will buy it.
>
> More than 650 representatives from about 60 companies gathered in
> Dearborn, Mich., Friday to hear and provide feedback on the service's
> preliminary plans for the ground combat vehicles that will replace the
> vehicles that formed the hardware core of FCS.
>
> The meeting marked the first outreach to industry officials, who > signed
> nondisclosure forms barring them from discussing any of the Army's
> preliminary specifications and requirements for the vehicles. They > now have
> until the end of the month to submit "white papers" to the Army in > advance
> of another meeting next month.
>
> The goal, according to Army officials, is to get feedback from the
> industry on what is technologically feasible and affordable before the
> service rolls out a formal request for proposals early next year, > which
> would mark the official start of the competition.
>
> "We want to bring industry early into this process so we're not just
> providing them a fait accompli" when the request for proposals is > released,
> Col. Brian McVeigh, product manager for manned systems integration, > said
> during a teleconference Monday.
>
> Rickey Smith, director of the Washington, D.C.-area office of the Army
> Capabilities Integration Center, added that setting a requirement > for the
> vehicles "without resourcing or the ability to achieve it is a > fantasy."
>
> As industry representatives gathered in Michigan, senior Army > officials
> met Friday at the Pentagon with Defense Department acquisition chief > Ashton
> Carter, who evaluated the service's post-FCS modernization strategy.
>
> Topics at the high-level Pentagon meeting included the Army's plans to
> develop and field the ground combat vehicle, which service officials > hope
> will be ready in five to seven years, an Army source said.
>
> Officials also discussed the Army's strategy for integrating the
> electronic network designed for FCS into its force. They also reviewed
> plans to develop and field many of the other technologies that had > been
> developed under the FCS program.
>
> Sometime in the next several days, Carter is expected to sign off on a
> memo endorsing the Army's plans or providing recommendations on how
> officials should proceed, the source said.
>
> Smith, whose office participated in a task force created this summer > to
> draft the Army's path forward, signaled he was optimistic that > Carter wants
> the Army to "continue to march in the approach that we're taking."
>
> The Army has been scrambling to devise modernization plans since > Defense
> Secretary Gates announced in April his decision to kill the FCS ground
> vehicles - whose price tag was expected to total $87 billion -- > because of
> concerns the Army had not adequately incorporated lessons learned > from Iraq
> and Afghanistan in their design.
>
> In June, the Pentagon formally ended the FCS program and directed > the Army
> to devise a modernization strategy made up of separate programs. The
> service still is pursuing many of the other technologies developed > under
> FCS, but those efforts will now be called Army Brigade Combat Team
> Modernization.
>
> The first batch of those technologies -- including small unmanned > air and
> ground vehicles and unattended ground sensors -- underwent an > intensive
> "critical design review" in St. Louis last week.
>
> The Army source indicated that there are some lingering technical
> questions from the design review, but it was generally considered to > be a
> success.
>
>
> http://www.nationaljournal.com/congressdai...091020_2867.php
>
> -----
> HOMELAND SECURITY: MOVEMENT STARTS FOR INTELLECTUAL PROPERTY > PROTECTION
> BILL
> By Andrew Noyes
>
>
> Legislation to bolster intellectual property enforcement resources and
> tools for the Homeland Security Department through its Customs and > Border
> Protection and Immigration and Customs Enforcement agencies could move
> through the Senate Finance Committee before Thanksgiving, aides said
> Monday.
>
> The measure, which Finance Chairman Max Baucus and ranking member > Charles
> Grassley introduced in August, will be the focus of a hearing today.
>
> After extensive negotiations with industry stakeholders, the bill > has the
> backing of groups like the U.S. Chamber of Commerce's 650-member > Coalition
> Against Counterfeiting and Piracy. Coalition Chairman Rick Cotton, who
> serves as general counsel for NBC-Universal, will testify in support > of the
> IP provisions, which are part of a broader CBP reauthorization > effort. The
> bill would establish an IP coordination center within ICE to prevent
> importation or exportation of pirated and counterfeit goods.
>
> The measure strengthens CBP's targeting efforts to detect goods that
> violate IP rights and requires CBP to dedicate port personnel with > primary
> responsibility for enforcing those rights. The bill requires a > strategic
> plan to decide where best to position those agents and would assign at
> least one full-time IP specialist at each of the top 10 ports.
>
> The Chamber's IP coalition believes port selection should not be based
> solely on the volume of seizures, because traffickers will quickly > switch
> shipping schedules. Instead, dedicated IP personnel should be > present at
> all high-volume ports. Cotton's group wants at least three full-time > CBP
> employees assigned to ICE's IP coordinating center and a stronger > emphasis
> by CBP on employee training. The agency reportedly cancelled its IP
> training this year.
>
> Additionally, the legislation gives CBP explicit authority to seize
> bootlegging devices and streamlines the copyright recordation process.
> Currently, it takes months for a product to win Copyright Office > approval,
> and only then can it be seized when found in cargo by CBP agents. > Under the
> bill, an application for copyright would suffice. "That's a huge step
> forward for copyright," said one source.
>
> Industry officials and aides expect CBP and ICE to complain that > requiring
> them to dedicate resources and funding to certain IP endeavors could
> hamstring their current operations. The Justice Department registered
> similar concerns when Congress tried to enhance domestic IP > enforcement
> capabilities through legislation former President George W. Bush > signed
> last year.
>
> Separately, Baucus and Sen. Orrin Hatch, R-Utah, are working on ways > to
> improve the U.S. Trade Representative's annual assessment of foreign
> countries' efforts to fight IP crime. The pair sponsored legislation > in the
> last Congress to beef up the USTR's "Special 301" report but have > been said
> to differ on how to proceed this time. Baucus views the 301 language > as a
> sweetener for a trade-enforcement bill, but Hatch and business > groups are
> sour to that approach. Baucus plans to introduce his trade > enforcement bill
> in the coming months.
>
>
> http://www.nationaljournal.com/congressdai...091020_4321.php
>
> -----
> AGRICULTURE: FARM BILL PROVIDED ROOTS FOR LOCAL FOOD PROMOTION EFFORT
> By Jerry Hagstrom
>
>
> Deputy Agriculture Secretary Kathleen Merrigan credits Congress with
> providing the impetus for the Obama administration's "Know Your > Farmer,
> Know Your Food" initiative and says it will ultimately benefit all > farmers
> much more than critics think.
>
> Agriculture Secretary Vilsack launched the initiative in mid-> September,
> urging consumers to "know where your food comes from and how it gets > to
> your plate." He also said the initiative would use USDA's existing > programs
> to help produce food and wealth that stays in local communities.
>
> Merrigan, who was an aide to Sen. Patrick Leahy, D-Vt., when he > chaired
> the Senate Agriculture Committee and who wrote the Organic Standards > Act,
> runs the program day to day.
>
> Last Thursday, when she announced $49 million in grants to fruit,
> vegetable, nut and consumer groups in all states and U.S. > territories to
> market specialty crops, Merrigan was joined by Sen. Debbie Stabenow,
> D-Mich., and Rep. Dennis Cardoza, D-Calif. The two lawmakers said > they were
> pleased to have led the effort during the 2008 farm bill debate to > help
> smaller growers process and promote their products. Many of the > grants will
> help local fruit and vegetable farm groups figure out how to sell > their
> products to local schools, hospitals and other institutions.
>
> Merrigan notes that the farm bill also set aside 5 percent of USDA's
> business and industry loan guarantee program for local food > production.
>
> Some big farm lobbyists have privately dismissed "Know Your Farmer, > Know
> Your Food" as a somewhat silly administration appeal to rich, liberal
> consumers and the nation's smallest farmers, who were more likely to > have
> voted for Obama.
>
> Merrigan said the administration wants to help small farmers get > started
> and hopes that local consumption will help them grow into medium-sized
> producers. But she added, "We do not expect people to be 100 percent
> 'locavores.'"
>
>
> http://www.nationaljournal.com/congressdai...091020_4649.php
>
> -----
> ETHICS: CALVERT'S LAND PURCHASE UNDER SCRUTINY BY FBI
>
> Rep. Ken Calvert, R-Calif., is being investigated by the FBI over an
> alleged inside deal to buy publicly owned land, the Riverside
> Press-Enterprise reported.
>
> Agents are probing whether Calvert improperly bought land from a
> government agency that was earmarked for a park, the newspaper said. > State
> law requires surplus public land to be first offered to other public
> agencies before it is sold for private use.
>
> Calvert, who represents parts of Orange and Riverside counties, is > part of
> an investment group that wants to build mini-storage units on the > site in
> Jurupa.
>
> The investigation follows a 2007 grand jury probe that concluded the > sale
> violated state laws.
>
> Calvert says the FBI probe is part of "a desperation effort" to > force him
> to sell the land to the Jurupa Area Recreation and Park District.
>
>
> http://www.nationaljournal.com/congressdai...091020_4968.php
>
> -----
> APPROPRIATIONS: PHYSICIAN FIX, CENSUS AMENDMENT MIGHT AFFECT SCHEDULE
> By Humberto Sanchez, with Dan Friedman and Carrie Dann contributing
>
>
> The Senate might try to wrap up work on the $64.9 billion, FY10
> Commerce-Justice-Science Appropriations bill this week, but it might > slip
> to next week as the Senate attends to other business, and as > lobbying heats
> up against an amendment to the bill that would require census > workers to
> ask about citizenship.
>
> An aide for Senate Majority Leader Reid Monday said the C-J-S has been
> temporarily set aside while the Senate considers other initiatives --
> including legislation to fix a Medicare reimbursement formula that > annually
> threatens physicians with payment cuts -- but the spending measure > could
> still be considered this week.
>
> Last week, the chamber failed to cut off debate on the C-J-S bill, > leading
> Reid to charged Republicans with delaying its appropriations work.
>
> The Senate has cleared seven of the 12 annual appropriations bills, > while
> the House has finished its versions of all the spending measures.
>
> One amendment to the bill making waves is from Sens. David Vitter, R-> La.,
> and Robert Bennett, R-Utah, and would prevent funding of the 2010 > Census
> unless census workers are required to ask if those they question are > U.S.
> citizens.
>
> Several groups will speak out against the amendment today, including > the
> Asian American Justice Center, the Leadership Conference on Civil > Rights,
> the National Association of Latino Elected and Appointed Officials, > and
> NDN, a progressive think tank.
>
> NALEO said the amendment "would derail the 2010 Census and deprive our
> nation of timely and accurate data critical to our representative
> democracy," NALEO said in a release. "We call on the White House to > work
> with the Senate leadership to help ensure that lawmakers reject this
> disastrous course."
>
> Opponents of the amendment tout a letter signed by eight former Census
> Bureau directors warning that the addition of an untested question to
> already-printed questionnaires would result in "incalculable" cost to
> taxpayers.
>
> "Such a massive revision could not be accomplished in time to > conduct the
> census on its currently envisioned schedule, thus placing all previous
> decisions and preparations in jeopardy," they wrote.
>
> The Senate will begin considering the final version of the $42.8 > billion,
> FY10 Homeland Security Appropriations bill today, Sen. Sherrod Brown,
> D-Ohio, said in Monday's floor wrap-up. The House passed the measure
> Thursday, 307-114.
>
> Meanwhile, House and Senate negotiators are working to reconcile their
> versions of the FY10 Defense Appropriations bill, the FY10
> Transportation-HUD measure, and the FY10 Interior-Environment bill.
> Conferees might meet this week to approve the final version of the > Interior
> measure, which would likely be followed by House action.
>
>
> http://www.nationaljournal.com/congressdai...091020_3214.php
>
> -----
> HOMELAND SECURITY: GOVERNORS PROTEST CHANGES TO FEMA GRANT PROGRAMS
> By Chris Strohm
>
>
> A policy shift by the Homeland Security Department on how state and > local
> governments can spend grants could put critical programs at risk of > being
> stalled or killed, the National Governors Association said Monday.
>
> But a department spokesman said Homeland Security is "undertaking a
> thorough review" of its grant efforts and downplayed tension with the
> nation's governors.
>
> In a letter sent to Homeland Security and White House officials, the > NGA
> complained that a recent policy change by the Federal Emergency > Management
> Agency will prevent homeland security grants from being used to > support
> current projects. The association believes the change will restrict > the
> ability of state and local governments to sustain critical programs, > and
> asked for the policy to be altered.
>
> Without greater flexibility to use grant funds, "critical national
> capabilities that have been strengthened over the past several > years, such
> as interoperable emergency communications, intelligence and > information
> sharing, hazardous materials (HAZMAT) response and search and > rescue, will
> be severely weakened or lost entirely," the letter said.
>
> "For example, information technology projects that support > interoperable
> communications systems or intelligence fusion centers are dependent > upon
> the maintenance of software agreements, technology upgrades, and > user fees
> throughout the life of the system," the letter added.
>
> An NGA spokeswoman said the policy applies to using funding under the
> State Homeland Security Grant program and the Urban Area Security
> Initiative program -- two of the largest sources of national emergency
> preparedness grants.
>
> She said the policy shift is also unfair because state and local
> governments are in the middle of their grant cycles. The states were
> notified of the policy shift Sept. 22, she said.
>
> The department spokesman said Homeland Security Secretary Napolitano
> "appreciates the NGA letter and is committed to working with all of > our
> partners for a more fully integrated and responsive process that > recognizes
> the operational and fiscal needs of first responders."
>
>
> http://www.nationaljournal.com/congressdai...091020_6570.php
>
> -----
> PEOPLE: PEOPLE
> By Sara Jerome
>
>
> CARRYING ON. Prime Policy Group has tapped Cary Gibson as director > in its
> healthcare practice. She arrives from the American Medical > Association,
> where she was a congressional lobbyist. She was previously legislative
> director for Rep. Russ Carnahan, D-Mo., and a senior legislative > assistant
> to Rep. Shelley Berkley, D-Nev., and former House Majority Leader > Richard
> Gephardt, D-Mo. Gibson says one of the challenges of healthcare > lobbying is
> that "these folks on the Hill are getting hit from all sides." But her
> Capitol Hill experience gave her some insight on how to make her > message
> stand out: Lobbyists should tailor their message to the needs of > particular
> districts and states. "All politics is local," she says.
>
> SCIENCE GUYS. Two American Association for the Advancement of Science
> fellows from the office of Rep. Rush Holt, D-N.J., have been asked > to stick
> around as legislative assistants. Holt was an AAAS fellow himself. > One of
> them, Will O'Neal, was a research associate at the Rockefeller > Center for
> Public Policy and the Social Sciences at Dartmouth College in > Hanover, N.H.
> He has switched gears, now covering foreign affairs and science > research
> funding. Meanwhile, Robert Saunders, a new healthcare legislative
> assistant, has worked on medical issues before but from a different
> perspective: He won his doctorate in physics from Duke University > after
> studying breast cancer mammography. In his new post, he says he is > struck
> by how backward-looking the healthcare debate is. "Everyone's > looking at
> '93 and '94 and asking, 'Are we making the same mistakes we made last
> time?' It's interesting watching people try not to repeat history," he
> says. The observation spurred him to read "The System: The American > Way of
> Politics at the Breaking Point," by Haynes Johnson and David Broder, > an
> account of the Clinton administration's attempt at healthcare > reform. The
> 1997 book seems to have undergone a resurgence among Hill staffers,
> Saunders says, who says he often sees other Metro riders with the > book in
> hand.
>
> MUSICAL CHAIRS. As the Senate Appropriations Committee loses its
> Republican clerk on the Legislative Branch Appropriations > Subcommittee to a
> different post, Bruce Evans will take up those duties for now. The > minority
> staff director for the full committee, Evans joined the panel in > 1995. He
> has served as staff director on the Senate Energy and Natural > Resources
> Committee. Carrie Apostolou, who had Evans' new duties, has become
> Republican clerk for the Senate Energy and Water Appropriations
> Subcommittee.
>
>
> http://www.nationaljournal.com/congressdai...091020_9252.php
>
> -----
> OFF TO THE RACES: SETTING THEIR PRIORITIES
> By Charlie Cook
>
>
> This column has focused, some would say dwelled, for several months on
> problems congressional Democrats face as the 2010 midterm elections
> approach.
>
> To be sure, the odds are very high that the party will fare worse > than the
> average for post-World War II, first-term, midterm elections, where > the
> majority party typically loses 16 House seats and it's a wash in the
> Senate.
>
> Having covered that ground so often over the last few months, several
> Democrats have asked what they should do to prevent those losses, > while
> Republicans have asked what they could do to keep from blowing it.
>
> Democrats have become no less obsessed this year over health care than
> Capt. Ahab was with Moby Dick. The best advice for Democrats would > be to do
> whatever you are going to do on health care, get it done and then > shift as
> quickly as possible to the economy and jobs, the things most voters > are
> actually obsessing over.
>
> While most economists believe the recession is over, more Americans
> believe it is not. Politically speaking, the recession isn't over > until
> voters, not economists, say it's over.
>
> Voters care and see the economy as jobs and disposable income. Every > day
> spent on health care, climate change or virtually anything not > directly and
> immediately involved in the economy and job creation is a minute spent
> ignoring what voters think really matters. Health care and climate > change
> are important and worthy objectives, and it is true that no time is > easy to
> take on these challenges. But this is probably the worst time in > decades to
> try. Get health care out of the way, push climate change back and > get onto
> jobs.
>
> On the economy and jobs, a second big economic stimulus package > would just
> get bogged down and then, once passed, what then?
>
> Come up with a series of things that would boost the economy, create > jobs
> and appeal to Main and Maple streets, to average people, people who > have
> lost jobs or hours or are in fear of losing ground. They already see
> themselves as picking up the tab for bailouts of the big boys and > girls.
>
> After extending unemployment and COBRA health insurance benefits, > the tax
> credit for homebuyers ought to be extended and expanded. Given that > 15 jobs
> are created for every house built, this one should be a no-brainer. > The
> original plan, which expires next month, was much too modest. Expand > its
> availability to more would-be home buyers.
>
> Though most liberals might gag at this next suggestion -- by an > economic
> adviser to former President George W. Bush -- maybe they should > listen.
>
> Former Federal Reserve Gov. Lawrence Lindsey proposed in January in > the
> Wall Street Journal that "the government could essentially cut the > payroll
> tax in half, taking 3 points off the rate for both the employer and > the
> employee. This would put $1,500 into the pocket of a typical worker > making
> $50,000, with a similar amount going to his or her employer. It would
> provide a powerful stimulus to the spending stream, as well as a
> significant, 6-percentage-point reduction in the tax burden of > employment
> for people making less than $100,000. The effects would be immediate."
>
> Most Americans believe average people and small businesses have gotten
> little relief; a payroll tax cut would address that problem and be a
> solution Republicans could hardly argue with. In the long haul, it > might be
> lousy public policy, but in the short term we're all dead, and this > economy
> needs to get turned around and people put back to work. If small > business
> really is the engine of job growth, a payroll tax cut can help.
>
> For Blue Dog Coalition members who object that these measures would > only
> exacerbate the deficit, paying for stimulus measures eliminates any
> positive, stimulative impact.
>
> The best way to increase federal revenues and start cutting the > deficit is
> to get the recession over and get people back to work.
>
> For Republicans, putting aside the lack of a clear leader that won't > occur
> until the presidential nomination fight narrows, the remaining > challenges
> are a lack of a positive message and a tendency to alienate swing > voters
> who don't see eye-to-eye with the increasingly conservative economic > and
> social agenda the party has adopted in recent years.
>
> Conservatives will vote next year because many of them loathe > President
> Obama and Democratic congressional leaders. Though independents vote > in
> lower numbers in midterm elections than presidential elections, they > were
> still enough that their margin in 2006 cost the GOP control of > Congress.
>
> Part of the genius of the 1994 GOP "Contract with America" was its > message
> that resonated with the independent voters and others who voted for > Ross
> Perot in 1992.
>
> It was less ideological and more outsider. That direction certainly > didn't
> cost the GOP any conservative support in 1994; it simply brought less
> ideological voters who had grown disgruntled with President Bill > Clinton
> and Democratic majorities.
>
> Until the Republican Party practices more addition than subtraction, > they
> will continue to have problems, notwithstanding Democratic efforts > to lose
> their own elections. The question is whether Republicans have been > in the
> wilderness long enough to learn that lesson.
>
>
> http://www.nationaljournal.com/congressdai...091019_5433.php
>
> -----
> POLITICAL ROUNDUP: PHYSICIAN DROPS KOSMAS RACE, WILL CHALLENGE GRAYSON
> INSTEAD
>
> Physician Ken Miller, a Republican who had been running for the 24th
> District seat held by Rep. Suzanne Kosmas, D-Fla., Monday announced > he will
> file with the FEC to run against Democratic Rep. Alan Grayson in the > 8th
> District.
>
> Miller said he decided to switch races after Daniel Webster, a former
> state House speaker, declined last week to challenge Grayson. He said
> wanted to make sure Grayson, who has sharply criticized Republicans > over
> health care, had a viable opponent.
>
> Developer Armando Gutierrez Jr. has entered the race and has picked up
> several early endorsements from state lawmakers.
>
>
> http://www.nationaljournal.com/congressdai...091020_6712.php
>
> -----
> POLITICAL ROUNDUP: BUSINESSMAN JOINS FIELD CHALLENGING PERRIELLO
>
> Businessman Ron Ferrin said he filed

[Snuffysmith]

CongressDaily AM for Thursday, Oct. 22, 2009

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

HEALTH: IN WAKE OF DEAL, HOUSE DEMS SAY THEY HAVE 218 VOTES
By Kasie Hunt with Billy House contributing


House leaders say they have at least 218 votes for liberals' preferred
public option in the wake of an agreement to address regional disparities
in Medicare reimbursement rates, Democrats said Wednesday.

House Ways and Means Chairman Charles Rangel said there was "a general
feeling" the 218 figure had been reached, referring to an overhaul that
includes a public option that would pay physicians Medicare plus 5 percent
and pay hospitals Medicare rates.

But a Democratic aide said leaders needed to hit a higher number to
account for members who would support a "robust" public option but might
object to other parts of the bill.

The agreement on how to address Medicare reimbursement rate disparities, a
key concern for rural lawmakers, likely helped push Democrats over the
threshold, a Democratic aide said.

"We 17 high-quality low-cost states are holding very tight on this issue,
but the speaker has been kind enough to come up with compromise language
that is satisfactory, I believe, to all parties," said Rep. David Wu,
D-Ore. He called the agreement "a reasonable compromise between high-cost
states and the high quality low-cost states."

The agreement, which members are set to announce today, would call for two
Institute of Medicine studies that would determine reimbursement rates. A
Democratic aide said the studies would account for a variety of factors,
including geography and the demographic makeup of a particular community.
The studies' recommendations would go into effect unless both chambers of
Congress passed resolutions of disapproval condemning them.

The agreement is still unlikely to bring all rural Democrats to liberals'
preferred public option, and leadership's decision to push for it drew fire
from the Blue Dog Coalition. "For those of us in rural districts, the
robust public option would be like a BTU tax vote," said Rep. Earl Pomeroy,
D-N.D., referring to a 1993 vote on a tax that many freshman members
believe lost them elections in 1994.

Freshmen members are also concerned about voting for an overhaul that
includes elements unlikely to survive a conference with the Senate; the
Senate Health, Education, Labor and Pensions Committee bill includes a
public option that would require the HHS secretary to negotiate rates, many
Blue Dogs' preferred course of action.

"We would prefer to not have to vote on a lot of issues that are not going
to survive conference, especially the controversial ones," said Rep. Gerry
Connolly, D-Va., the president of the Democratic freshmen class.

Pomeroy and other rural lawmakers prefer a public option that would
require the HHS secretary to negotiate rates with providers, a plan that
costs about $80 billion more than using Medicare rates. House leaders also
asked CBO for a score on that version of the public option, combining it
with a Medicaid expansion to bring the total cost to $895 billion, a
Democratic aide said.

"I'm very pleased with the speaker's offer of alternatives. Straight
negotiated rates is more expensive, but if you add this Medicaid expansion
the speaker mentioned, that does offer savings," Pomeroy said.

The Blue Dogs' co-chairman, Rep. Jim Matheson, D-Utah, said fewer than 12
Blue Dogs were ready to vote for a public option based on Medicare rates.
He said Blue Dogs are focused on the total cost of the bill and bringing
down healthcare costs over the long term.


http://www.nationaljournal.com/congressdai...091022_9053.php

-----
POLITICS: OBAMA OUTREACH TO MODS DRAWS IRE
By George E. Condon Jr.


The very public wooing of Sen. Olympia Snowe, R-Maine, during the
healthcare debate has left many leaders of the Democratic Party's liberal
wing frustrated by a White House that they fear is listening more to
moderates than to progressives who fought so hard to send President Obama
to the White House.

That frustration is rarely voiced publicly by elected Democrats, whose
party loyalty outweighs their anxiety and who understand that Obama remains
wildly popular with Democrats across the country. But the restiveness
surfaced publicly Tuesday night when the president's speech at a party
fund-raiser in New York was interrupted by a couple of liberal hecklers.

When Obama mentioned there are "still some details and some disagreements
that have to be worked out" on health care, one Democrat shouted, "Single
payer!" Another shouted, "Public option!"

The interruptions forced the president to acknowledge the party divisions.
"Among Democrats and progressives there are a whole set of views about how
we should do health care," he said. "I want to say to you, Democrats, let's
make sure that we keep our eye on the prize." He insisted that even the
health bill "you least like" will deliver on things important to
progressives.

When he was interrupted again, he joked, "You know, sometimes Democrats
can be their own worst enemies. Democrats are an opinionated bunch."

The 80-member Congressional Progressive Caucus, which met with the
president for more than an hour earlier this year, has repeatedly warned
the White House that a public option is essential if Obama wants their
votes for the final version of healthcare reform. But that warning did not
deter the White House from its ardent courtship of Snowe, who has said she
could not support any measure that includes a public option.

Sen. John (Jay) Rockefeller, D-W.Va., vented his frustration last weekend,
when he appeared on "Political Capital with Al Hunt" on Bloomberg TV. He
warned that Democrats risk losing "our leadership and our momentum" if too
much is conceded to Snowe.

"Yes, we did get her vote, [but] she said just for this one. It doesn't
mean for the next ... rounds of votes," said Rockefeller. "But we can't
sort of hedge and say, 'What's Olympia going to do?' We've got to decide
what we want. And now you're on the whole floor, with all Democrats
participating, or you're close to that point."

Senate Majority Leader Reid also is the target of a new round of
television ads sponsored by the Progressive Change Campaign Committee. The
ads question: "Is Harry Reid Strong Enough?" In this case, "strong enough"
means pushing through a bill with a public option -- something lacking in
the Snowe-backed bill that cleared the Senate Finance Committee last week.

OpenLeft, a progressive Web site, is sponsoring ads featuring Reid and
declaring: "We have the votes for the public option. No excuses. Make it
happen." Chris Bowers, a member of the Pennsylvania Democratic State
Committee and the man behind OpenLeft, is determined that progressives not
be put off again by talk of needing 60 votes to do anything in the Senate.

"That isn't going to fly this time," he wrote last week. "The grassroots
are learning about Senate process, and we know we have the votes. What we
need is leadership from President Obama and Sen. Harry Reid to make sure
that a public option is included in the final bill."

Perhaps the loudest complaint about the White House attention to Snowe was
voiced by David Sirota, a former House Appropriations Committee aide and a
Western Democratic strategist. The party establishment "used the 60-vote
thing as a campaign tactic between 2006 and 2008 as the reason why they
couldn't really pass anything," he said. "And then they got 60. ...
Mathematically, there are no more excuses."

But, he noted, "The supposed need to get Olympia Snowe's vote is being
used as a rationale to do what a lot of people suspect they really want to
do, which is to water down the bill on behalf of the healthcare industry."

Most frustrating to liberals, he said, is that "the White House has shown
it is willing to go up against Republicans. And it is willing to go
slightly more gently against progressive Democrats. The one group that is
totally immune from any pressure at all from the White House are corporate
Democrats, the conservative Democrats, the Max Baucus Democrats."

Because of the White House approach, he said most grassroots progressive
organizations are putting most of their efforts into lobbying in Congress
"to get as many commitments as they can among Democrats in Congress to vote
against the bill without a public option."

And he warned that failure to heed progressive demands could have
consequences in next year's elections. "If the bill is weak regulation, low
subsidies and no public option, then I think you are going to significantly
demoralize the progressive base," Sirota said.

One Democrat who has been deeply involved in progressive campaigns and the
movement said that while they are frustrated, most liberals understand that
some Democrats come from conservative districts and need Republican votes
to get re-elected.

"The progressive movement built a map to get to 270 electoral votes. We
did not build a map to get to 60 Senate votes," said this veteran
strategist.

"There is frustration on the progressive side about compromises being
made," said Jennifer Palmieri at the Center for American Progress, a
liberal think tank. But she said the White House is aware of the tension.

"There is a constant dialogue going on between progressive groups fighting
for healthcare reform and the administration," she said. "It is not as if
there needs to be some kind of grand overture to progressive groups."

One White House official said progressives are not being taken for
granted. "We have reached out to progressive members," he said, citing a
meeting last week with Sen. Bernie Sanders, I-Vt., a member of the
Progressive Caucus. He said the president also has made several phone calls
to progressives to discuss their concerns.

One person involved in those talks said the breaking point for
progressives would come if the final healthcare bill hit progressives with
a one-two punch -- no public option but a new tax, opposed by labor, on
top-of-the-line insurance programs negotiated by workers.

"You could survive one or the other," this Democrat said, "but not both."


http://www.nationaljournal.com/congressdai...091022_8732.php

-----
HEALTH: ROCKEFELLER OPEN TO DEAL ON PUBLIC OPTION TO GET VOTES
By Anna Edney with Dan Friedman contributing


One of the Senate's staunchest government-run public insurance option
advocates said Wednesday he is measuring up an alternative that would allow
states to opt-out of a national public option, the latest signal centrist
senators are set to dictate where the chamber's healthcare overhaul is
headed.

Finance Health Subcommittee Chairman John (Jay) Rockefeller, D-W.Va., said
Wednesday he believes giving states the choice to opt out of a national
public option is one compromise that "could work very well that could pick
up some of the moderates."

Rockefeller previously offered up what is likely the most liberal public
option for consideration, one based on Medicare payment rates in the
beginning, which would allow the government to make reimbursement
adjustments. Rockefeller Wednesday signaled a willingness to meet moderates
in the middle.

"For example, I started out with a two-year Medicare requirement. People
hated that," Rockefeller he said. "I don't agree with them, but the fact is
they hated it and they were going to vote against it, so wisdom says back
up a little bit. So it was just two years of Medicare and I took it out,
and I'm looking very much now at this opt-out public option."

A small group of centrist Democrats and Republicans met Tuesday with
Majority Leader Reid to discuss their concerns, Sen. Ben Nelson, D-Neb.,
said.

A senior Democratic aide said the centrists are the group to watch.

"That group will set the highwater mark of what can happen" on the public
option and on other fronts, the aide said.

Nelson said Wednesday he supports giving states the choice to establish
their own public options rather than permitting states to opt out of a
national public option. "In this area, I think [people] have less concern
and less fear of what might come their way than when it's coming out of
[the Centers for Medicare and Medicaid Services] and Washington, D.C.," he
said.

The state choice alternative stems from a compromise hatched by Sen.
Thomas Carper, D-Del.

Nelson said centrists have shared concerns with Reid on the individual and
employer mandates, the affordability of insurance, taxes on medical devices
and insurance companies to help raise revenue for the overhaul and a
national insurance program for those who become disabled.

Sen. Olympia Snowe, R-Maine, who attended the moderates' meetings, prefers
that any public option include a trigger.

Snowe and Carper Tuesday discussed combining their trigger and state
choice proposals, according to Senate staffers. Possibilities could include
a state choice plan with a public option that is then triggered later if
the state approaches fail to produce affordable healthcare choices. A
state-based approach might instead be triggered if an approach without a
public option fails to produce adequate competition.

Nelson met Wednesday evening with Finance Chairman Max Baucus and
centrists met again as well. Reid, Baucus and Senate Banking Chairman
Christopher Dodd met Wednesday to discuss the public option, among other
topics, as they work to meld the Finance and Senate Health, Education,
Labor and Pensions committees' overhaul bills.

Dodd was not optimistic about the group finishing its work with the White
House this week to marry the bills and did not expect a final overhaul bill
on the floor next week even if they did, because CBO will need time to draw
up a cost analysis. A spokesman for Reid said there is no chance of floor
activity next week.

Rockefeller noted Baucus meets with Finance Democrats every morning for
about an hour to brief them on the discussions with Reid and the White
House, but he said he's mostly unclear about where the merger talks are
headed.

"Max tries to bring us up on what's going on, but basically it's not a
dynamic process, I think, at this point," Rockefeller said.

Sen. Bernie Sanders, D-Vt., said he and a small group of liberal members
met recently with Reid to discuss their desire to see a strong public
option included in the bill, but he declined to say more.


http://www.nationaljournal.com/congressdai...091022_1544.php

-----
TELECOMMUNICATIONS: GENACHOWSKI REVISES PROPOSED RULES IN NOD TO CRITICS
By David Hatch


FCC Chairman Julius Genachowski has extended an olive branch to his
Republican colleagues by slightly toning down his plan for expanding and
strengthening network neutrality regulations.

A second draft of his proposed rules, which he circulated Tuesday night,
drops tentative conclusions about steps the commission must take to
preserve the Internet's openness and is reworded to come across as more
balanced, sources said.

The chairman is believed to have the backing of his two Democratic
colleagues, Michael Copps and Mignon Clyburn, giving him the three votes
required for passage at a public meeting this morning.

Republican regulators Meredith Baker and Robert McDowell are expected to
concur on the need for the rulemaking while dissenting on its substance.
The proposal is widely viewed as the first step toward changes that would
be considered next year.

Sources said the latest iteration of the text retains language that
amounts to an exemption for companies such as Google and Skype by
clarifying that online providers of applications, content and services
would not be subject to the proposed rules.

Google has been tussling recently with AT&T over whether it should be
covered under net neutrality rules. But in an apparent attempt at
compromise, the latest version of Genachowski's proposal seeks public
comment on whether the recommended regulations should apply to such
entities.

Google officials said Wednesday that to the extent there's an exemption,
it affects a wide range of companies and Web sites and not just their
search engine and products. "What the commission is doing is delineating
between the Internet and broadband networks," said Rick Whitt, Washington
telecom and media counsel for Google.

"The commission doesn't have jurisdiction over content and application
providers," he argued, even though the agency's existing net neutrality
guidelines include those categories.

The proposed rules would bar network operators from engaging in
discriminatory behavior, require them to disclose their network management
practices and subject violators to stepped up FCC enforcement.

In addition, the latest version also proposes a definition of what
constitutes "reasonable management." And it seeks comment on whether the
agency should regulate other services that flow over high-speed Internet
systems, including video offerings such as Verizon's FiOS TV.

Among the last-minute letters to the FCC weighing in on the proposal, 11
senators on Wednesday expressed support, saying: "We believe that this is
the path toward guaranteeing that consumers will hold ultimate control over
the content they send and receive over the Internet, and that the Internet
will remain open and free for everyone who uses it."

Signing the letter were Sens. Mark Begich, D-Alaska; Byron Dorgan, D-N.D.;
Senate Commerce Communications Subcommittee Chairman John Kerry, D-Mass.;
and Maria Cantwell, D-Wash., all members of the Senate Commerce Committee.
Also signing were Sens. Patrick Leahy, D-Vt.; Tom Harkin, D-Iowa;
Christopher Dodd, D-Conn.; Richard Durbin, D-Ill.; Ron Wyden, D-Ore.; Bill
Nelson, D-Fla.; and Bernie Sanders, I-Vt. Dorgan is the author of
legislation designed to bolster net neutrality safeguards.

During a conference call Wednesday, nonprofit groups supportive of
Genachowski's efforts acknowledged they've been outgunned in lobbying by a
deep-pocketed communications sector that opposes the chairman's approach.

"In the last several weeks, what can only be described as a shock-and-awe
campaign by the incumbent telephone and cable operators," has occurred,
said Harold Feld, legal director for Public Knowledge, a consumer advocacy
group. "It is certainly the case that they have generated an enormous
amount of backlash."


http://www.nationaljournal.com/congressdai...091022_8634.php

-----
FINANCE: PETERSON PANEL A BIT TOUGHER THAN FRANK'S ON DERIVATIVES
By Jerry Hagstrom


The House Agriculture Committee by unanimous voice vote Wednesday passed
an over-the-counter derivatives regulation bill that is slightly tougher
than one approved by the House Financial Services Committee last week but
does not contain a provision requiring all derivatives contracts involving
big banks to go through clearinghouses.

House Agriculture Chairman Collin Peterson said after the markup that he
would prefer that the House vote separately on the derivatives bill as soon
as possible rather than have it merged into a larger bill strengthening
regulation of the financial services industry. "The public wants us to move
on this," Peterson said.

Technically, the Agriculture Committee amended the Finances Services bill
with a substitute Peterson measure. House Financial Services Chairman
Barney Frank would not object to a separate floor vote on the derivatives
bill, Peterson said. But Peterson added that he thinks the House leadership
and the Obama administration expect to put all the financial services bills
in one package.

The bipartisan vote contrasted sharply with the Financial Services
Committee markup in which only one Republican voted for the bill. House
Agriculture ranking member Frank Lucas, who also sits on Financial Services
and voted against the bill on that committee, said he supported Peterson
because he abandoned plans to require almost all derivatives to be cleared.
Lucas said it is "quite rational" to think that the derivatives bill could
get a strong majority vote on the House floor but that the minority would
reserve its right to dissent if the bill is merged with others and changed.

The bill attempts to address problems that have occurred after
over-the-counter derivatives were exempted from regulation in the 2000
Commodity Futures Modernization Act. During the 2008 financial crisis, the
American International Group could not fulfill the derivatives contracts
and required a $180 billion government bailout.

The bill requires registration and transparency in the derivatives market
and requires that the institutions issuing the derivatives back them with
capital. Peterson, whose committee has jurisdiction over the futures
industry, generally took a tougher approach than Frank, whose committee
oversees the banking and securities industry.

In an effort to deter excessive speculation in oil and wheat, Peterson
added provisions allowing the Commodity Futures Trading Commission to
impose limits on the size of positions that institutions can take in
physically deliverable commodities.

Agriculture Committee aides said the bill's many technical provisions
tighten up the Frank bill. Last week Frank toughened his bill, but he did
not include a proposal that Peterson had made at the request of the Obama
administration to require that all standardized derivatives contracts
involving "Tier 1" banks such as Goldman Sachs and J.P.Morgan Chase go
through a clearinghouse.

Peterson said Wednesday he had decided to leave that out because many
manufacturers and airlines said it would make their use of derivatives
prohibitively expensive.

Commodity Futures Trading Commission Chairman Gary Gensler said Wednesday
in a speech in Chicago that swaps should be taken off the books of large,
complex financial institutions in order to reduce systemic risk. But
Peterson said that he does not consider the issue to come under the
jurisdiction of his committee and questioned whether government can address
systemic risk. "I am not a big believer in doing something about systemic
risk," he said.

Gensler argued that end users would benefit from all standardized
over-the-counter trades going through exchanges or trade-execution houses
because it would reveal pricing information, but Peterson said the end
users did not believe they would save money.

Peterson noted that the big banks would still have to back up the
derivatives with capital and said he believes that his bill addresses
Gensler's concerns. Gensler could not be reached for comment by presstime.

The Consumer Federation of America said in a news release Wednesday that
leaving out the clearinghouse mandate would "fatally weaken the bill."

"While Chairman Peterson deserves credit for trying to pass a stronger
bill, apparently there 'just aren't the votes' in Congress to fix the
problems that brought the global economy to the brink of collapse," CFA
Director of Investor Protection Barbara Roper said in the release.


http://www.nationaljournal.com/congressdai...091022_4758.php

-----
ENVIRONMENT: KERRY PUSHES THANKSGIVING DEADLINE FOR CLIMATE PANELS
By Darren Goode


Senate Majority Leader Reid and Foreign Relations Chairman John Kerry plan
to meet Friday to discuss a strategy for moving a climate and energy bill
that might include a Thanksgiving deadline for committees to act.

Kerry -- the lead sponsor of a cap-and-trade bill he drafted with
Environment and Public Works Chairwoman Barbara Boxer -- is pushing for
that Thanksgiving deadline for the remaining five committees with
jurisdiction over the bill, according to a Kerry spokeswoman.

Kerry met Wednesday with Boxer regarding his meeting Friday with Reid,
which is the same day President Obama is making a speech at the
Massachusetts Institute of Technology in Cambridge, Mass., about climate
change.

A spokesman for Reid confirmed the meeting with Kerry but declined to
comment on Reid's position on setting a deadline for the panels. Reid
initially gave all six panels with jurisdiction on a bill until late
September to finish up work but then removed that deadline as lawmakers
became locked in a healthcare debate that has taken longer than many hoped.

Finance Chairman Max Baucus -- whose panel has jurisdiction or partial
jurisdiction over major pieces of a cap-and-trade bill dealing with
allocating emission credits to businesses and issuing possible border
tariffs against developing nations -- has been noncommittal on whether he
will hold a markup before Thanksgiving.

Baucus has been deferring to Reid on that timing. "It's possible.
Anything's possible," he said this week on whether his panel would do a
markup before Thanksgiving.

The Senate Energy and Natural Resource Committee has passed an energy bill
that would be merged with a cap-and-trade plan. Some on the panel --
including Sen. Byron Dorgan, D-N.D., and ranking member Lisa Murkowski --
want the energy bill to be moved first and separately. Energy and Natural
Resources Chairman Jeff Bingaman prefers that but will back Reid if he
continues to advocate one larger energy and climate bill. "Sen. Reid is
very realistic about where votes are in the Senate," Bingaman said. "He's
not going to be wasting people's time around here voting on things that he
doesn't think can have a decent chance of prevailing."

Boxer is starting a three-day set of hearings next week on the draft
Kerry-Boxer bill and hopes to do a markup the first week of November. "I
hope right after Halloween," she said Tuesday. But nothing has been
officially planned yet, she added.

The timing at least partly has to do with an economic analysis of the
Kerry-Boxer bill EPA is expected to deliver Friday and whether next week's
hearings bring up problems that need to be addressed before a markup. Both
EPA and Boxer promise the agency's analysis will be thorough. "It will
encompass our bill," Boxer said, minus placeholders representing holes left
to be filled by the other panels.

Even if Boxer, as expected, gets a bill through her panel next month, a
bill that is brought to the floor could look very different in part because
of discussions Kerry is starting with Sen. Lindsey Graham, R-S.C. "I think
the best thing to do ... is just sort of take a fresh approach," Graham
said. "We're trying to find a way to sort of recast the debate." No bill
out there at the moment, he said, is close to getting 60 votes.

Graham wants more help for nuclear energy, offshore drilling, possible
border tariffs and other language.

Murkowski -- another Republican who is a potential supporter of a
cap-and-trade bill -- said Kerry and Graham "are still in the gathering
stage" in seeking the opinions of colleagues before starting to write up
details. "Right now we have nothing. We have a blank piece of paper as I
understand it from Sen. Graham," Murkowski said. "I'm a long ways from
knowing whether or not I'm part of a deal."

She predicted that a bill would not be brought up in the full Senate this
year. "I just don't see days left on the calendar," she said. "Getting
something through the Senate I think is very, very, very dicey."

Sen. Debbie Stabenow, D-Mich. -- a key Midwesterner working on deals to
help manufacturing and allow agricultural activities to be used to offset
cap-and-trade emission reduction targets -- also is doubtful a climate
debate in the full Senate will happen this year. "I think a lot of progress
is being made, but we will probably really see us turn to climate change
after the first of the year," she said.

Meanwhile, critics of pending climate legislation are at the beginning
stages of trying to pressure Graham off of his plan to work with Kerry and
other Democrats on a compromise.

Starting today and through the end of next week, the American Energy
Alliance is running radio ads in Graham's state "to make sure Mr. Graham's
stance is well known throughout South Carolina," the group's spokesman
Patrick Creighton said. The group's 60-second radio ad mentions the state's
near-12 percent unemployment rate. "South Carolinians are struggling,"
according to the ad. "This recession has pushed local businesses to the
brink." The ad continues, "So why would Sen. Lindsey Graham support new
energy taxes, called cap and trade, that will further harm our economy and
kill millions of American jobs?"

The ad cites statistics mainly from a study -- disputed by cap-and-trade
advocates -- done on House climate legislation by the National Association
of Manufacturers and the American Council for Capitol Formation.

EPA did a far more favorable analysis of the House bill and is expected to
do one on the Kerry-Boxer bill that cap-and-trade backers should be able to
tout as well.

The alliance -- an affiliate of the larger free-market advocate Institute
for Energy Research -- has so far committed "a few hundred thousand
dollars" for a larger three-tier South Carolina media campaign that also
will include television and online ads and videos, Creighton said.


http://www.nationaljournal.com/congressdai...091022_3230.php

-----
APPROPRIATIONS: MURTHA EXPECTS DEFENSE BILL TO PAY FOR 10 MORE C-17S
By Megan Scully with Humberto Sanchez contributing


House Defense Appropriations Subcommittee Chairman John Murtha, D-Pa.,
said Wednesday that he expects the FY10 Defense spending bill will include
funding to buy about 10 C-17 Globemaster III cargo planes, but signaled he
is worried about the $250 million price tag for each aircraft.

Before he signs off on the additional planes, Murtha said he wants Boeing
Co., the plane's maker, to give the government a price more comparable to
the roughly $200 million per plane the government paid as part of the last
multiyear procurement deal for C-17s, which ended in 2007.

The House-passed Defense Appropriations bill included $674 million to buy
three C-17s, or $225 million per plane. The Senate version added $2.5
billion for 10 planes.

Defense Secretary Gates and other senior administration officials have
said repeatedly that the current plan for 205 C-17s, when combined with the
existing fleet of larger C-5 Galaxy aircraft, is enough to meet the
military's airlift needs.

In a letter to appropriators last week, OMB Director Orszag estimated that
buying 10 more C-17s would cost $100 million in operations and maintenance
costs annually -- in addition to the $2.5 billion required to purchase
them.

"Procuring additional C-17s is an inefficient use of critical defense
resources," he wrote.

But the aircraft program, which employs more than 30,000 people in 43
states, has a legion of supporters on Capitol Hill who do not want to see
the plane's production lines stopped.

Meanwhile, Murtha said there still has been no decision by House and
Senate conferees on whether to include funding for the problem-plagued
VH-71 presidential helicopter program, which the administration has sought
to cancel because of soaring costs and schedule delays.

Defying a veto threat from the White House, the House passed a bill with
an added $400 million to make five initial "Increment 1" helicopters
operational, reflecting Murtha's concerns that the military already had
invested $3.2 billion in the program.

The Senate bill included only the funds requested to cancel the program.

In a "heartburn" letter to appropriators Oct. 14, Gates said he would
personally recommend the president veto the defense bill if it includes
funds to continue the VH-71 program. Making the five aircraft operational,
he said, would cost an additional $2 billion -- and the helicopters would
still not meet full operational requirements.

Undeterred, Murtha is still speaking with the administration about the
issue. "We're still negotiating, trying to convince them," he said.

In another move the Pentagon strongly opposes, conferees are expected to
include funding in the bill to keep alive the second engine program for the
F-35 Joint Strike Fighter, Murtha said. The House bill includes $560
million for the engine, while the Senate bill contained no funding,
effectively allowing the administration to terminate the program.

The White House has said it would veto the bill if officials determine
that funding the alternate engine would seriously disrupt the overall F-35
program.

Despite some lingering issues that still must be resolved, Murtha said the
bill would be ready for a final vote as early as next week.

But House leaders still are weighing whether to attach to the must-pass
measure unrelated legislation, such as a Washington, D.C., voting rights
bill or legislation to raise the national debt limit.

The bill also could become the vehicle for an omnibus FY10 spending bill
or a continuing resolution that would keep the government operating beyond
the end of November.

House Defense Appropriations Subcommittee ranking member C.W. (Bill)
Young, R-Fla., said he has put Democrats "on notice" not to add contentious
and unrelated legislation to the spending bill.

But Young said he might support the addition of a needed continuing
resolution, depending on what is included in the CR.

Young added that he believes an omnibus bill -- which could include the
defense bill -- likely will be necessary. To date only four of the 12
annual spending bills have been sent to the president for his signature.

House Transportation-HUD Appropriations Subcommittee Chairman John Olver,
D-Mass., agreed that an omnibus is likely in the offing.


http://www.nationaljournal.com/congressdai...091022_1284.php

-----
TRADE: CANTWELL HOLD LATEST IN LOGJAM ON INTERNATIONAL NOMINEES
By Peter Cohn


Sen. Maria Cantwell, D-Wash., has placed a hold on Miriam Sapiro,
President Obama's nominee for Deputy U.S. Trade Representative, over the
administration's perceived failure to help move her bill to create
duty-free trade preferences for imports from Pakistan and Afghanistan,
sources said Wednesday.

The measure is a top legislative priority for Cantwell, who represents
Army troops rotating into the region from her state's Fort Lewis. The White
House this year included the measure as part of its regional strategy to
help the local populace develop their economy and stay out of the terrorist
fold.

An increasingly frustrated Cantwell blames USTR and others in the
administration for not pushing hard enough for action on the bill, which
has been held up in a House-Senate dispute over labor standards for
Afghan-Pakistani workers. Last week, Cantwell told CongressDaily, in
apparent jest, that it would be easier for her to start a company in
Pakistan than to get the bill approved.

A USTR spokesperson was not immediately available for comment.

A Senate aide confirmed Cantwell's hold, which becomes the second obstacle
to Sapiro's nomination after a hold placed by Sen. Jim Bunning, R-Ky.
Bunning wants USTR to move faster to adjudicate a dispute with the Canadian
government over legislation pending in that country's parliament that could
affect his state's tobacco farmers.

Sapiro, who can do little to affect the outcome of either dispute, upon
confirmation would have a portfolio including responsibility for World
Trade Organization affairs, and trade relations with Europe, the Middle
East and the Americas. Her nomination was approved unanimously by the
Senate Finance Committee on July 23.

On Wednesday, nine major industry groups representing multinational firms,
such as the Business Roundtable, National Association of Manufacturers and
U.S. Chamber of Commerce, wrote to Senate leaders urging them to break the
logjam on Sapiro and four other nominees with international
responsibilities.

They include Francisco Sanchez, Obama's nominee to be Commerce
undersecretary for international trade; Lael Brainard, nominated for
Treasury undersecretary for international affairs; Arturo Valenzuela, who
would be assistant secretary of State for Western Hemisphere affairs; and
Thomas Shannon, to be ambassador to Brazil.

"The U.S. government is vital to opening markets abroad, ensuring level
playing fields, preventing discrimination in favor of local interests, and
ensuring transparency and fair competition in business dealings overseas,"
states the letter, addressed to Senate Majority Leader Reid, Minority
Leader McConnell, and the bipartisan heads of the Finance and Foreign
Relations panels. "Unfortunately, nominees in five key positions have been
unable to obtain votes in the United States Senate; and this is hampering
the advancement of U.S. trade objectives and jobs."

The Finance Committee has yet to hold a nomination hearing on Sanchez or
Brainard, as panel investigators continue vetting their tax returns and
financial dealings. The investigation is bipartisan, panel aides said. It
is unclear what possible infractions are being looked into, but sources
said in Brainard's case it might have to do with tax issues. The committee
is further behind in the vetting process on Sanchez, sources said.

The other two nominees, Valenzuela and Shannon, are being held up by Sen.
Jim DeMint, R-S.C., over the administration's policy toward Honduras.
DeMint supported the military coup in that country that overthrew leftist
President Manuel Zelaya, a move opposed by Obama. Both nominees have been
approved by the Foreign Relations Committee.


http://www.nationaljournal.com/congressdai...091022_3522.php

-----
TAXES: HOUSE DEMS CONTEMPLATE ADDITIONAL ECONOMIC STIMULUS
By Peter Cohn


House Democrats continued discussing options to jolt the economy on
Wednesday, and it remains unclear how much, if any, will be paid for.

Ways and Means Chairman Charles Rangel convened a second session with
economist Mark Zandi for panel Democrats in the afternoon, after Speaker
Pelosi held a four-hour meeting earlier in the day with Zandi and other
economists.

Rangel said the discussion included "the standbys," such as the $8,000
first-time homebuyer credit, five-year net operating loss carry-back period
for businesses and a new tax credit for job creation. He said
transportation funding came up as well.

The White House is touting a new $250 payment to seniors, veterans and
others on Social Security and government-benefit programs, similar to
checks that went out this year as part of the stimulus package. Like the
first round, Rangel said the $13 billion cost would probably not be offset.
"I don't see how" we pay for it, he said.

Earlier in the day, economists told Pelosi that to stimulate the economy,
some short-term deficit increases might be necessary. She and other
Democrats have suggested proposals that are extensions of the stimulus
might not have to be paid for since they are extending emergency economic
aid. Rep. Joe Courtney, D-Conn., who sent Pelosi a letter with 165
signatures on Wednesday backing a homebuyer credit extension, said it
didn't need to be paid for since it was in the prior stimulus.

Ways and Means Select Revenue Measures Subcommittee Chairman Richard Neal,
D-Mass., said the credit's effectiveness has been proven and should be
extended into the spring.

Neal is also a leading proponent of the net operating loss provision that
would extend from two to five years the amount of time firms could offset
current losses with prior taxes paid when they were profitable. A
scaled-down version in the stimulus covered only the smallest companies, a
change made at the last minute over Neal's objections. As to whether the
tax measures should be paid for, Neal replied: "We're talking about all
that."

Rangel also said the House might move quickly on an extension of the
estate tax at 2009 rates.

The tax expires at the end of the year; a permanent extension would not be
offset under President Obama's budget, but House Democratic leaders have
made that contingent on Senate passage of a statutory pay/go law.

Rangel said the House was also looking at a one-year extension. "We're
debating within the committee, so we'll be ready for it," he said. The
virtue of a one-year extension is that it actually raises revenue, about $1
billion, since otherwise there would be no estate tax in 2010. But other
panel Democrats, such as Rep. Earl Pomeroy of North Dakota, are urging a
permanent solution to give family businesses some certainty in
estate-planning.


http://www.nationaljournal.com/congressdai...091022_7733.php

-----
EMPLOYMENT: REID FILES FOR CLOTURE ON EXTENSION OF JOBLESS BENEFITS
By Dan Friedman


Senate Majority Leader Reid filed cloture Wednesday night on a bill to
extend expiring unemployment insurance benefits for million of jobless
Americans, moving to bring the bill to the floor in spite of GOP
objections.

Reid and Finance Chairman Max Baucus want to amend a House-passed bill and
extend benefits for 14 weeks in all states and another six weeks in states
with unemployment rates above 8.5 percent. The unemployment tax on
businesses would be extended to pay for the measure.

Republicans, many of whom want to pay for the bill with stimulus funds,
have objected to moving the bill, and the measure has stalled amid a
dispute over amendments.

"On an issue like this that should transcend party labels, we had high
hopes that Senate Republicans would stand with us. But the disturbing
Republican trend of stonewalling any progress continues," Reid said in a
statement.

Reid and top Democrats said they wanted to avoid forcing the bill through
with a cloture vote because doing so would require multiple cloture votes
and consume at least a week.

But after the failure Wednesday of a cloture vote on a bill to fix a
Medicare formula that annually threatens physician pay, and with a
healthcare overhaul bill at least two weeks from Senate floor action, the
chamber has time for the jobless benefits bill, a Democratic leadership
aide said.

"You can only negotiate for so long," the aide said. "But if there doesn't
appear to be movement, then you need to move forward."

Senate Democrats have said they want to block an amendment to the
unemployment bill offered by Sen. Johnny Isakson, R-Ga., and Banking
Chairman Christopher Dodd to extend an $8,000 tax credit for homebuyers and
expand it beyond only first-time buyers. Reid is seeking a separate
legislative vehicle to extend the credit, senators said.


http://www.nationaljournal.com/congressdai...091022_5335.php

-----
FINANCE: AFTER CHANGES, HOUSE PANEL PREPARES TO APPROVE CFPA BILL
By Bill Swindell


The House Financial Services Committee is expected today to approve
legislation to create a Consumer Financial Protection Agency, providing a
victory for the Obama administration in its push to revamp the financial
regulatory system and a defeat for the banking lobby that fought
aggressively to kill it.

The final vote is expected to break along partisan lines, ending five days
of debate where moderates were able to limit the scope of the bill that
will take consumer protection duties from federal banking regulators and
give it to a proposed agency with rulemaking, examination and enforcement
powers.

On Wednesday, the panel voted to provide national banks a limited
pre-emption of state consumer laws, if the Office of the Comptroller of the
Currency determines that state law "significantly interferes" with the
business of banking.

Before final approval, the panel will vote on a series of amendments, most
notably one from Rep. John Campbell, R-Calif., that would exempt car
dealers from agency oversight if they do not have a related lending
business.

Campbell stressed that auto lenders such as GMAC Financial Services or
Toyota Financial Services would not fall under the definition of his
language.

"You come to an automobile dealer to buy a car and they will have various
finance options. ... Some of those will be banks, some of those will be
credit unions, and some of those will be captive finance companies, but in
all cases those will be covered elsewhere under CFPA," said Campbell, who
was a CEO of an auto dealership group before getting elected to Congress.

The amendment is expected to be adopted, especially given that the
politically influential National Automobile Dealers Association is strongly
lobbying for its support, a fact that Financial Services Chairman Barney
Frank acknowledged, even though he opposed it.

"I can tell you from being involved in the lobbying on this ... automobile
dealers are very well-liked," he said.

Frank said he wanted additional clarifying language to ensure that
auto-financing firms would not be exempted. He also had concerns if the FTC
was the proper agency for oversight of the car-dealer industry and whether
the CFPA should play some role, specifically in administering the Truth In
Lending Act for their marketing and advertising activities.

Members also will vote on an amendment by Rep. Maxine Waters, D-Calif.,
that would expand CFPA coverage to for-profit colleges that facilitate
student loans. Waters has been a longtime critic of those institutions,
arguing they engage in predatory lending because federal rules require at
least 10 percent of their revenue come from outside the federal government.

She noted a GAO report that showed students at for-profit schools have a
default loan rate of 23 percent, well above the rate for nonprofit
institutions.

"While we have all of these accusations about [the Association of
Community Organizations for Reform Now] ... ACORN pales in comparison to
the billions of dollars that are being ripped off by these private
schools," Waters said.

Rep. Alan Grayson, D-Fla., opposed the Waters amendment because he said it
would unfairly single out the for-profit colleges while the underlying bill
excludes nonfinancial retailers and merchants and that it would decrease
the amount of loans for such students because their colleges are sometimes
the only ones that will make the loan.

"We're talking about people who are receiving these loans today who are
generally not totally creditworthy. The reason the school is willing to
take a risk on them is because they believe they can increase their human
capital and be paid back from that increase in human capital," Grayson
said.

The panel also approved two modified amendments by voice vote. Rep. Gwen
Moore, D-Wis., reached an agreement with the Treasury Department on her
amendment that would exclude providers of credit insurance -- such as title
and private-mortgage insurance -- from regulation by the CFPA.

Credit unions pushed heavily for the exemption, arguing that such services
face strong regulation at the state level. But consumer groups say those
products carry a low loss ratio, resulting in customers being overcharged
in their policies.

The compromise would allow CFPA to target such products but do so through
the lender that sells them to the consumer, rather than through the insurer
that provides them as part of a package for such products as car loans,
credit cards or mortgages.

In addition, Rep. Ed Perlmutter, D-Colo., successfully modified a Grayson
amendment that would require the agency to identify the underlying cause of
home foreclosures and bankruptcies and give it the ability to eliminate or
restrict products that contribute to high rates.

Business groups were lobbying strongly against the amendment, asking the
panel to strip language to ban or limit certain products because of such
high foreclosure rates. Perlmutter's amendment would do that.


http://www.nationaljournal.com/congressdai...091022_4621.php

-----
LOBBYING: BUSINESSES SEEK HEALTH BILL FIX FOR TEMPORARY WORKERS
By Carrie Dann


Restaurants, retailers and other businesses with high rates of employee
turnover are pushing lawmakers to revisit how "full-time" workers are
defined in a healthcare overhaul measure to avoid being slapped with hefty
fees for failing to insure their temporary or short-term workforces.

Current versions of healthcare legislation would force large companies to
pay a penalty if they choose not to provide health insurance for employees
who work more than 30 hours a week.

But the current definition of "full-time" does not specify how many weeks
these employees would have to work to qualify for insurance coverage.

That omission could be devastating for firms whose employees may work long
hours on a single assignment and then go without working for weeks at a
time. Among them are professional staffing companies who cater to
businesses seeking temporary workers.

"What we're trying to avoid is a situation where employers are paying fees
to cover time when their employees weren't actually working," said Ed Lenz,
a lobbyist for the American Staffing Association.

About 12 million Americans are employed by temporary staffing agencies
like Kelly Services or Manpower Inc. each year, he said. But on any given
day, only 2 million of those employees are actually working.

Along with a broad coalition of retail and restaurant companies, Lenz's
group supports a provision proposed by Sen. Maria Cantwell, D-Wash.,
requiring that, to be classified as full-time, employees must work at least
30 hours a week over the course of a calendar quarter -- 390 hours over 13
weeks.

During its markup last month, Senate Finance Chairman Max Baucus appeared
to support Cantwell's proposal, but backers were dismayed to find the
clarifying language missing from the final version of the committee's bill.

A spokeswoman for Cantwell said inclusion of the clarification is "very
much a live issue."

John Emling, a lobbyist for the Retail Industry Leaders Association, said
he is hopeful Baucus will add Cantwell's clarification as he and Senate
Democratic leaders merge the bills passed by his panel and the Health,
Education, Labor and Pensions Committee.

But if the definition is not clarified, Emling warned, his group "will
have to weigh in against the bill coming out of the Senate." His
association has spent close to $1 million on lobbying expenses this year,
according to the Center for Responsive Politics.

Another priority for Emling's group is the institution of a 90-day waiting
period for new employees before they are automatically enrolled in an
employer's healthcare plan.

A coalition of over 30 business and trade associations joined together
last month to urge lawmakers to insert the waiting-period provision.

Backers of the provision -- including the National Restaurant Association,
U.S. Chamber of Commerce, 7-Eleven, and Hooters of America Inc. -- wrote a
letter to Baucus saying that, without a grace period, "the resources spent
to cover employees who have no intention of staying with the company for an
extended period of time will drastically increase the cost of benefits
available to those who do stay."

No grace period has been included in any version of the reform
legislation, but employer groups continue to press negotiators in both
chambers to consider inserting it.

The imposition of fines on companies that fail to insure full-time workers
was heavily opposed by most large business organizations, but both the
House and Senate versions of the healthcare overhaul include at least some
penalty to force employers to subsidize the healthcare costs of uncovered
employees.

Advocates for the temporary staffing and retail industries will lobby
lawmakers to adopt the most lenient proposal, the Finance Committee's cap
of $400 for each uninsured employee.

A much harsher House "pay-or-play" rule would hit employers with a payroll
tax of 8 percent on the wages of uncovered workers.

"The employer community as a whole is really, really frightened by that,"
said Lenz.


http://www.nationaljournal.com/congressdai...091022_4895.php

-----
HEALTH: REPUBLICANS CLAIMING VICTORY IN FIRST OVERHAUL SKIRMISH
By Dan Friedman


Senate Republicans portrayed Wednesday's trouncing of a Democratic effort
to invoke cloture on a bill to fix a Medicare payment formula for
physicians as an early win in their effort to defeat healthcare reform
legislation.

"Many people are looking at this as the first big vote in the healthcare
debate," Senate Minority Whip Kyl said after Democrats not only came up
short of the 60 votes they needed, but couldn't even win a majority.

Republicans voted uniformly against the fix, citing a failure to offset
the plan's $245 billion cost, and 13 Democrats joined them in opposition.

GOP senators crowed that the vote hands them momentum in the healthcare
fight, arguing they had effectively linked the issues by accusing Senate
Majority Leader Reid of trying to lower the price of the healthcare bill by
shifting the cost to the physician pay measure, then not offsetting it.

After the vote, Reid and the bill's sponsor, Sen. Debbie Stabenow,
D-Mich., said American Medical Association representatives predicted 14 to
27 Republican votes, but Kyl said that explanation made no sense.

"Republicans were always going to be unified in opposition to this," Kyl
said. "I don't know where they could have possibly gotten any other ideas."

A Democratic leadership aide said the pay-fix amendment had to come before
the larger health bill so the pay matter didn't become a poison pill that
would doom the overhaul attempt.

If the amendment had been accepted as part of the overall healthcare
measure, the aide said, "the bill we would be trying to get cloture on
would be a nearly $1.2 trillion budget-buster that increased the deficit by
nearly $200 billion. By pressing this issue to a vote first on a
stand-alone vehicle, we have taken the steam out of this issue and defused
any efforts to use this amendment to blow up health care."

Some Republicans suggested Reid pushed for the cloture vote even though he
knew he would lose as part of an agreement that AMA and AARP would back the
larger health bill.

Reid disputed that view.

"The issue is making sure that those patients have doctors to take care of
them and the American Association of Retired People, more than 40 million
members, believe this is one of the most important issues they've dealt
with during the time they've been in existence," he said.

Reid added that he was "stunned" when he learned Kyl would not support the
measure, even though he was a co-sponsor.

An aide said Kyl did not co-sponsor "a complete repeal" but actually was
on board with a 2005 bill "that would have averted Medicare cuts for two
years and given physicians a modest pay raise."

Speaker Nancy Pelosi, House Majority Leader Hoyer, and the chairmen of the
three committees leading the healthcare reform effort said they were
disappointed by the Senate vote. They said in a statement that the House
"remains strongly committed to addressing this critical issue" while
meeting pay/go requirements.


http://www.nationaljournal.com/congressdai...091022_7798.php

-----
HEALTH: CMS STUDY OF ONE HOUSE BILL SAYS IT WOULD INCREASE COSTS
By Kasie Hunt and Billy House


The Centers for Medicare and Medicaid Services Wednesday released a study
showing overall medical costs would increase an extra 2.1 percent over 10
years if Congress were to pass the House Ways and Means Committee's version
of health overhaul.

The increase comes from increasing the number of Americans with insurance
-- more insured people means more medical services consumed. That increase
could strain the existing system, according to the report. "The additional
demand for health services could be difficult to meet initially with
existing health provider resources and could lead to price increases,
cost-shifting and/or changes in providers' willingness to treat patients
with low-reimbursement health coverage," the report says.

Republicans pounced on the announcement. "This report underscores what
I've said all along: The Democrats' costly government takeover plan will
raise -- not lower -- healthcare costs," said House Minority Leader
Boehner.

Brendan Daly, a spokesman for House Speaker Pelosi, panned the study as
"old news."

He said the Ways and Means bill is in the process of being merged with two
other versions in the House -- and will ultimately be combined with the
Senate bill. "These estimates are based on large, complicated models and
that different bodies can analyze the data in different ways," said Daly.
"What's critical is the analysis of the final bill," he said.


http://www.nationaljournal.com/congressdai...091022_8518.php

-----
PEOPLE: PEOPLE
By Gregg Sangillo


MAXING OUT. Amy Maxwell landed a position as a vice president with
lobbying firm Dutko Worldwide. Maxwell, who is handling healthcare and
financial services issues for the firm, loves the flexibility this job will
entail. "It's perfect for me, really, because I get to do state and local
issues, and also focus on what's happening at the federal level," she says.
Maxwell hails from Stratford, Conn., went to college at Elon University in
North Carolina, and came to Washington in 1995. She started out as an
intern at HUD and eventually we

[Snuffysmith]

> CongressDaily AM for Thursday, Oct. 29, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: REID LARGELY FLYING SOLO IN EFFORT TO SHAPE FINAL BILL NOW
> By Anna Edney and Dan Friedman
>
>
> Senate Majority Leader Reid is angling for a favorable CBO score on > his
> health proposals to win support from deficit hawks, even as he keeps > those
> senators, and everyone else, largely in the dark.
>
> The secrecy might make sense as a strategy because it prevents an
> unfavorable score from getting out, but it does not make it easy to > nail
> down senators on their votes on a motion to proceed to the bill.
>
> "Before he can really make it public, he has to see what CBO says > because
> if CBO says that it's going to be above a certain amount or not be a
> balanced budget, increase the deficit, he's going to have to resubmit
> something," Senate Democratic Conference Vice Chairman Charles > Schumer of
> New York said. "So that's why letting it all out now doesn't make much
> sense until he gets a CBO score."
>
> Reid is running the show from here on out, keeping the circle of > those in
> the know extremely tight.
>
> "I know several people have said, 'Could we see the bill?' You know,
> 'Could you share that bill so the American people can see what we're
> talking about here?'" Minority Whip Kyl said. "So far, no luck. No > bill."
>
> Following a handful of meetings between Reid, Finance Chairman Max > Baucus
> and Sen. Christopher Dodd, D-Conn., to negotiate a final bill, an > aide to
> Reid says there are no meetings scheduled. Staffers said Baucus, > Dodd, and
> committee staffers continue to consult with Reid.
>
> While the high-level meetings are over, none of the hot-button > issues are
> resolved, aside from the public option Reid went ahead with on his > own.
> That includes how best to make coverage affordable and whether the > bill
> will include an employer mandate, a tax on high-cost insurance plans > or a
> long-term insurance program for the disabled known as the CLASS Act.
>
> The administration was in on those Reid-Baucus-Dodd meetings as > well, but
> when asked if consultation would continue, the aide replied "Reid > talks to
> [White House Chief of Staff Emanuel] all the time." There was no > mention of
> White House healthcare czar Nancy Ann DeParle or OMB Director Orszag.
>
> Reid sent multiple draft proposals to CBO Monday and plans to > "cherry-pick
> the best scores/language and put that in the final bill," the aide > said.
>
> Moderate Democrats, concerned with the overhaul's impact on the > deficit
> and a public option, were mostly noncommittal Tuesday about the > votes that
> will allow the Senate to begin debate on the overhaul bill. Reid > needs 60
> votes, every Democrat, to proceed to debate.
>
> Some of those moderates are pushing for removal of the CLASS Act. > Budget
> Chairman Kent Conrad has called the plan to fund the program "a Ponzi
> scheme."
>
> Sens. Evan Bayh, D-Ind., Ben Nelson, D-Neb., Joseph Lieberman, D-> Conn.,
> Blanche Lincoln, D-Ark., and Mark Warner, D-Va., and Conrad urged > dropping
> the provision on budget grounds in a letter last week to Reid. Reid is
> considering the request and has sent draft language with and without > CLASS
> to CBO, senators and aides said.
>
> Some moderates claimed they could not commit until they see Reid's
> proposals, but they did not fault the leader for keeping his cards > close.
>
> "Sen. Nelson wants to see the CBO score and plan details together so > he
> can see the whole picture of Sen. Reid's plan and the associated > costs," a
> Nelson spokesman said. "That will help him understand the > implications of
> the policy issues in the bill."
>
> Democratic leaders' hope is that moderates who are not completely > happy
> with the overhaul bill will still allow the Senate to vote to move > onto the
> bill then wheel and deal with leaders later to help them hit the 60-> vote
> threshold to hold a final vote on the bill.
>
> Reid and Democratic leaders have insisted that once the bill is on the
> floor, the amendment process will help win over fence-sitting > Democrats,
> though they have not specified how.
>
> "We all know that the bill that emerges after weeks of debate on the
> Senate floor is not going to be the same one that Leader Reid > submitted,"
> Schumer said. "There's going to be lots of change, compromise, lots > of push
> and pull."
>
> A senior Democratic aide said floor time will provide flexibility for
> tradeoffs.
>
> "You don't know until you get onto the bill," the aide added. > "Moderate
> Senator X may have a problem with issue A. Well, maybe Senator X > can't get
> his problem with issue A taken care of. But he can get B and C taken > care
> of and maybe's that's enough."
>
> With the bill yet to be unveiled, the aide questioned why lawmakers > like
> Lieberman, who has said he will not back cloture on a bill with a > state
> opt-out public plan Reid intends to include, would take a firm > position.
>
> "It's a little bit premature to be drawing lines in the sand, by him > or
> anyone else," the aide said.
>
> Democratic leaders are also hoping that floor consideration will > ramp up
> pressure from the left on Democratic moderates, with top Democrats
> repeatedly referring to "the historic moment" the bill's > consideration will
> represent.
>
> "I hope so," Majority Whip Durbin said when asked if constituent > pressure
> on moderates will grow when the bill hits the floor. "I hope they
> understand the historic responsibility we have here. It's a
> once-in-a-lifetime opportunity."
>
>
> http://www.nationaljournal.com/congressdai...091029_4350.php
>
> -----
> FINANCE: HOUSE DEMOCRATS SET UP BATTLE OVER PROXY ACCESS, RULES
> By Bill Swindell with Andy Leonatti contributing
>
>
> House Democrats attempted Wednesday to give the SEC more defined power
> over corporate proxy rules, setting up another battle with business
> lobbyists over the revamp of the nation's financial regulatory system.
>
> The latest skirmish occurred over an amendment by Rep. Maxine Waters,
> D-Calif., that would codify the SEC's authority to issue rules over
> shareholder proxy access. Waters offered the amendment to > legislation that
> would beef up protection for securities investors. It comes in the
> aftermath of the SEC's failure to head off frauds such as Bernard > Madoff's
> Ponzi scheme.
>
> The SEC this year proposed a rule that would require companies in some
> circumstances to include in their proxy materials the nominations for
> directors by shareholders. But some critics question whether the > agency has
> the right to issue rules over corporate governance standards that are
> enacted at the state level.
>
> Waters said the language would clear up any confusion. "This part of
> governance just has to do with making sure the SEC has the authority > to
> move with making rules for proxy," said Waters, who had the backing of
> institutional investors.
>
> But it was opposed by Rep. Michael Castle, R-Del., whose state is the
> nation's leader for corporate headquarters, with more than 50 > percent of
> all publicly traded U.S. companies.
>
> "What I don't think [that] we in this committee or in this Congress > should
> be doing is stepping up and starting to tell corporations exactly > how they
> should elect directors or conduct other business. It's the > federalization
> of corporate law, which I think is exactly wrong," Castle said. "These
> powers should be left to the states."
>
> The fight over corporate governance was not supposed to be part of the
> regulatory reform debate. Financial Services Chairman Barney Frank > said he
> would take a comprehensive look next year at an effort spearheaded > by Reps.
> Gary Peters, D-Mich., and John Campbell, R-Calif.
>
> The Obama administration has not made it part of its agenda, but Sen.
> Charles Schumer, D-N.Y., has sponsored legislation that would, among > other
> things, split duties between the board chairman and CEO, require > annual
> director elections and eliminate staggered board terms -- and he > might look
> to attach pieces of the bill when regulatory reform moves in the > Senate.
>
> The U.S. Chamber of Commerce has ramped up its opposition to the > Schumer
> bill and has been on guard against any move to place it in the > regulatory
> package.
>
> Campbell and Peters were on opposite sides Wednesday, with the > Democrat
> pushing ahead for the Waters amendment and the Republican asking > that it
> would be taken up as part of the debate next year.
>
> Castle further argued that states are acting on their own in > response to
> the SEC action, lessening the need for federal action. Delaware's
> Legislature passed a bill in April that would allow a company to > amend its
> bylaws to give shareholders such a similar right as proposed by the > SEC.
>
> "My sense of all the things you are talking about are happening > anyhow,
> all across the country," Castle said.
>
> Frank sided with Waters, noting that she was not dictating what the > SEC
> should implement. "This is not us intervening on this with > specifics. It is
> saying to the SEC in this bit, 'go ahead, because we think it's > better for
> you to have your authority asserted,'" Frank said.
>
> The committee is scheduled to complete its markup on the bill > Wednesday,
> when it will vote on the Waters amendment as well as others, before
> approving the bill.
>
> The committee Wednesday adopted an amendment from Financial Services
> ranking member Spencer Bachus by voice vote that would give the > Financial
> Industry Regulatory Authority, an independent market regulator, the > power
> to enforce compliance by its members.
>
> Frank tentatively supported the amendment, saying the committee would
> examine the issue further. But he was leery of giving a private
> organization enforcement powers. "FINRA also did not do the best job,"
> Frank said, referring to protecting investors' money in the financial
> scandals.
>
> Bachus said the SEC was handed the cases of accused swindler Allen
> Stanford and Madoff "on a silver platter" and failed to protect > investors'
> money. Bachus added that he was not "substituting" the SEC's > oversight but
> adding more enforcement to the bill.
>
>
> http://www.nationaljournal.com/congressdai...091029_7335.php
>
> -----
> SENATE RACES: CLUB FOR GROWTH EYES UNDERDOG IN FLORIDA CONTEST
> By Erin McPike
>
>
> After seeing how its backing of Conservative Party nominee Doug > Hoffman
> turns out in a Nov. 3 special election for the New York House seat
> previously held by Army Secretary John McHugh, the Club for Growth > will
> turn its attention to the Florida Senate primary between GOP Gov. > Charlie
> Crist and former state House Speaker Marco Rubio.
>
> While Crist is the well-funded frontrunner, Rubio has started > lapping up
> endorsements from national conservative leaders and groups in his > upstart
> bid to become the GOP nominee in the race to succeed former GOP Sen. > Mel
> Martinez, who resigned this fall.
>
> Club for Growth President Chris Chocola said he expects the > organization
> will decide whether to get involved in the race by the end of the > year.
>
> "It's no secret we like Rubio," Chocola said in an interview. "We're
> looking at the same FEC reports as everyone else."
>
> Those reports showed Rubio bringing in more than $1 million in the > third
> quarter, a surprisingly strong number for someone taking on a > candidate who
> was supposed to be a lock for the nomination.
>
> While the Club's backing would provide a boost for Rubio, several
> Republican operatives in Washington and Florida questioned whether the
> group has the financial capacity to wade into such a massive state > with 10
> media markets, especially since the Club is already supporting its > former
> president, former GOP Rep. Pat Toomey, in the Pennsylvania Senate > race.
>
> One veteran Florida Republican said it would take an outside > organization
> roughly $5 million to make an impact on a statewide race there.
>
> At the end of September, the Club for Growth's PAC had just more than
> $420,000 on hand and spent at least $377,000 in October on behalf of
> Hoffman in the New York House race.
>
> Club for Growth members bundled an additional $315,000 for Hoffman,
> according to the organization. "Our members have never been more
> enthusiastic," given the impact they've had on the House race, said > Andy
> Roth, a Club for Growth spokesman. And, although Roth wasn't able to
> provide specifics, he said donations have rolled in this month and > that the
> group has plenty of time ahead of the Aug. 24 Senate primary in > Florida if
> it decides to get involved.
>
> While Rubio waits for the Club for Growth's decision, his fund-raising
> operation hasn't rested. Campaign aides say he has added about 1,000 > new
> contributors in October.
>
> Crist, meanwhile, has put together the heftiest back-to-back > fundraising
> quarters of any Senate candidate nationwide and still swamps the
> competition in a money battle. Party sources said Crist is also on the
> verge of adding some top staffers to his campaign.
>
> While the Florida primary will be the marquee intraparty battle for > the
> GOP in 2010, Chocola said the Club for Growth is looking at getting
> involved in other races, including the contest to replace GOP Sen. > Judd
> Gregg in New Hampshire.
>
> "We're doing our research on that one," he said, but unlike in > Florida,
> "we're not close to a decision there."
>
>
> http://www.nationaljournal.com/congressdai...091029_7172.php
>
> -----
> ETHICS: BEHAVIOR HAS COST OTHER HOUSE CHAIRMEN THEIR POSTS
> By Billy House
>
>
> While it is rare for powerful House chairmen to be stripped of > authority,
> the efforts by the party out of power to dislodge a chairman -- as
> Republicans are trying with Ways and Means Chairman Charles Rangel > -- are
> not unusual and sometimes have been successful.
>
> But such an effort is almost always an uphill climb, "as long as what
> they'd done did not become egregiously embarrassing," said Fred > Beuttler,
> the deputy historian of the House. Short of that -- getting indicted > or
> hiring an aide who can't type in a sex scandal -- the party in power > is
> usually reluctant to forcibly remove one of their own from the head > of a
> committee.
>
> The House Ethics Committee is still investigating allegations of > financial
> improprieties against Rangel, and as long as that probe continues,
> Democrats should have the votes to easily defeat GOP efforts to get > him to
> step down as chairman of the powerful tax-writing committee.
>
> But if the committee rules against him, Rangel could join a short but
> noteworthy list of powerful lawmakers -- including his predecessor > in his
> Harlem-based House seat -- driven from power by something other than > being
> on the short end of the vote count on Election Day.
>
> Whether that happens, and whether Rangel would give up his > chairmanship or
> leave Congress if it did, remains to be seen.
>
> But his situation does bring to mind some notorious sidebars to
> congressional history.
>
> In 1967, the House did remove the late Rep. Adam Clayton Powell Jr.,
> D-N.Y., as chairman of the Education and Labor Committee by voting > not to
> seat him as a member because of his alleged misuse of public funds > after a
> special House committee determined the allegations were valid.
>
> Powell filed suit in federal court challenging the decision, and the
> Supreme Court ruled in his favor, saying his exclusion was
> unconstitutional. Powell won back his seat in a special election but > did
> not regain his chairmanship or his influence, and the up-and-coming > Rangel
> defeated him in a Democratic primary in 1970.
>
> The Democratic Caucus forced Rep. Dan Rostenkowski, D-Ill., to give > up his
> Ways and Means Committee gavel in June 1994, after he was indicted on
> embezzlement, fraud and coverup charges in the House Post Office > scandal.
> He continued to serve as a member of the committee until losing his
> re-election bid in 1994. Rostenkowski later served time in prison for
> misuse of public funds, and was later pardoned by former President > Bill
> Clinton.
>
> The late Rep. Daniel Flood, D-Pa., chairman of the House Labor, > Health,
> Education and Welfare Appropriations Subcommittee from 1967 to 1979, > was
> indicted on bribery, conspiracy and perjury charges in 1978, but his > trial
> ended in a hung jury. He might have been removed from his > chairmanship and
> expelled from the House, but he resigned from Congress before a
> recommendation was made by the Ethics Committee.
>
> In fact, the Ethics Committee had appointed a special counsel and an
> investigative subcommittee in April 1979 to look into allegations that
> Flood "used official influence on behalf of private parties and > foreign
> governments in return for unlawful payments." But a hearing set for > Dec. 12
> was deferred because of Flood's hospitalization. Shortly after, Flood
> resigned from the House and in February 1980 pleaded guilty to a
> misdemeanor of "conspiracy to defraud the government."
>
> The late Rep. Wayne Hays, D-Ohio, chairman of the House Administration
> Committee, resigned from Congress amid a House Ethics Committee
> investigation into his payroll-sex scandal involving Elizabeth Ray > that
> erupted in May 1976. Hays at first denied any wrongdoing, but then > asked
> the committee to investigate the matter, admitting he had had a > personal
> relationship with Ray. His resignation from Congress on Sept. 1 of > that
> year caused the committee to drop its investigation.
>
> While working on a plan for national health insurance, the late Rep.
> Wilbur Mills, D-Ark., stepped down as chairman of the Ways and Means
> Committee in December 1974, after it became clear his House colleagues
> would likely force him to give up his gavel.
>
> His problems arose after his car was stopped in October 1974 by U.S. > Park
> Police and a burlesque dancer who performed under the name Fanne Fox > --
> "the Argentine Firecracker" -- famously jumped into the Tidal Basin. > Mills
> added to the furor when he showed up in Boston for Fox's next public
> performance, apparently intoxicated. He later acknowledged a drinking
> problem and did not seek re-election in 1976.
>
>
> http://www.nationaljournal.com/congressdai...091029_4864.php
>
> -----
> HEALTH: HOUSE DEMS TO UNVEIL COMPROMISE REFORM BILL TODAY
> By Kasie Hunt and Billy House, with Peter Cohn contributing
>
>
> After months of negotiations, House Democrats this morning plan to > unveil
> a landmark healthcare reform bill they hope to pass by the end of next
> week.
>
> The bill that Speaker Pelosi expects to announce at a news > conference will
> contain a public option alternative based on negotiated rates, > rather than
> a more "robust" plan based on Medicare rates preferred by liberals,
> including Pelosi herself. It will expand Medicaid to cover anyone > who makes
> less than 150 percent of the federal poverty level.
>
> In a change from previous House versions, the bill will also make > some of
> the legislation's benefits available earlier than 2013, Pelosi > spokesman
> Nadeam Elshami said, though he would not give details.
>
> House leaders have pledged to make the bill available to the public at
> least 72 hours before the vote, and say that extends to changes > contained
> in a manager's amendment. It likely does not apply to additional > changes,
> if any, after that.
>
> The legislation is to be posted online today, say House Democratic
> leadership aides. Pelosi is aiming to have a vote on the bill next > Thursday
> or Friday.
>
> CBO has yet to release the House bill's price tag, though Pelosi has
> assured members it will cost less than $900 billion over 10 years > and not
> worsen the federal budget during that timeframe.
>
> The shape of the public option has sharply divided liberals from > moderate
> Democrats and captured much of the public focus regarding the top > domestic
> priority of President Obama.
>
> Even Wednesday night, key House liberals say they plan to continue > their
> fight for a more robust option on the House floor.
>
> "I am not rolling over," said Rep. Raul Grijalva, D-Ariz., co-> chairman of
> the Congressional Progressive Caucus. "I will insist on a
> Medicare-plus-five amendment on the floor so that the full Caucus > can vote
> on it."
>
> But that dispute reflects just one component of a sweeping bill that
> supporters say will cover most of the country's uninsured and require
> almost all Americans to buy health insurance. And even House > passage, which
> is not yet assured, will set up a difficult conference with the > Senate.
>
> A key difference is the tax used to pay for much of the legislation, > which
> is expected to cost close to $900 billion over 10 years. The House > relies
> on a surtax on millionaires to raise about $460 billion. The Senate
> includes a tax on high value insurance plans to raise about $200 > billion,
> though changes will likely reduce its value.
>
> A majority of House Democrats are opposed to the tax because they > argue it
> will affect middle-class families. Labor unions are also strongly > opposed
> to it and have threatened to oppose the Senate bill if it is not
> substantially changed.
>
> House Democrats would push hard to strip it in conference. "It's not > in
> the House bill, and they're going to fight for the House bill," said > Rep.
> Joe Courtney, D-Conn. More than 180 House Democrats signed a letter > he sent
> to leadership opposing the tax.
>
> Rural House Democrats could also revolt if a House agreement to > address
> geographic disparities in Medicare rates is not included in the > conference
> report. The agreement calls for an Institute of Medicine Study to > report
> within 18 months on the geographical disparities in healthcare costs > and
> quality.
>
> The House and Senate will also have to reconcile differences in the
> Medicaid expansion. The Senate version likely would enroll in Medicaid
> Americans who make 133 percent of federal poverty level or less.
>
> Most of the taxes in the bill are scheduled to begin in 2010 while > many of
> the benefits -- including insurance industry reforms that require > companies
> to cover people with pre-existing conditions, eliminate co-pays for
> preventative care, and cap annual out-of-pocket expenditures -- > don't take
> effect until 2013. House changes to accelerate some of these > benefits could
> help members facing close election fights in 2010 and even 2012.
>
>
> http://www.nationaljournal.com/congressdai...091029_8863.php
>
> -----
> TAXES: UNEMPLOYMENT BILL MIGHT CARRY HOMEBUYER CREDIT, NOL
> By Peter Cohn
>
>
> Senate Democrats appear to have gone back to "Plan A" and intend to > move
> an extension of the $8,000 first-time homebuyer tax credit and > lengthened
> loss carryback rules for unprofitable companies as part of a renewal > of
> unemployment insurance benefits.
>
> Final approval might slip until next week, but that might help the > cause
> of the downtrodden housing sector and retailers, manufacturers and > other
> businesses seeking swift enactment of the tax benefits. The > unemployment
> insurance bill is considered a must-pass item and the tax provisions > stand
> a better chance of becoming law quickly if attached to it.
>
> The reversal comes after Senate negotiators reached agreement to > extend
> the housing credit through the spring, including a reduced $6,500 > credit
> for not-quite first-time buyers, or those who have not bought a > primary
> residence in the last five years.
>
> The credit is set to expire Nov. 30, and Senate Banking Chairman
> Christopher Dodd said extending it was critical to help maintain the
> recovery. If allowed to expire, the housing market "would stall out in
> these cold months, and I think that would be a great mistake."
>
> Extension of the credit is also a top priority for Senate Majority > Leader
> Reid, who, like Dodd, faces a re-election race in 2010, but the > agreement
> was bipartisan and driven in part by Sen. Johnny Isakson, R-Ga. "I'm > not
> going to give you a deadline," Isakson said Wednesday, but "there's > a good,
> solid understanding; it's just a question of process."
>
> Isakson declined to comment, but sources said to qualify for the > credit, a
> contract must be signed by April 30, with another 60 days allotted > to close
> on the sale. That effectively pushes the credit through the critical
> April-June period, which the real estate industry regarded as a must.
>
> In addition to expanding eligibility to previous homeowners, it also > bumps
> up income thresholds, from $75,000 for individuals and $150,000 for > couples
> to $125,000 and $250,000 respectively, before the credit phases out. > The
> price of a home could not exceed $800,000, however, in a shift from > the
> current credit, which has no maximum sale price.
>
> As of Wednesday morning, it appeared the UI bill might move quickly > in the
> Senate as a free-standing bill, without the tax provisions, after
> Democratics and Republicans continued to squabble over what amendments
> could be offered.
>
> But leaders spent the day negotiating and Republicans appeared > resigned to
> eventual passage of the UI bill, even as they lambasted the > Democrats for
> shutting out their amendments. "The list [of amendments] is very > small,"
> Minority Whip Kyl said. "This could have been done two days ago."
>
> The amendment dispute was lingering, casting doubt on whether > Democrats
> would be able to follow through and approve the combined package. > Industry
> officials called on senators to stop arguing and move quickly. "The > Senate
> plan has bipartisan support but is being held up by political > wrangling.
> Senators must put aside their parochial interests and stand up for the
> American people," National Association of Home Builders President > and CEO
> Jerry Howard said in a statement.
>
> The tax package is also expected to include an option for companies to
> obtain refunds on taxes paid in up to five previous years for losses
> suffered in either 2008 or 2009. The benefit is generally uncapped > except
> that in the fifth year, losses carried back would be limited to 50 > percent
> of taxable income for that year. Companies could carry the remainder
> forward, however.
>
> Numerous unprofitable sectors have been seeking the net operating loss
> relief. In a letter to Senate GOP leaders dated Tuesday, Newspaper
> Association of America President and CEO John Sturm wrote that it > would
> help respond to lawmakers' concerns about the struggling industry,
> particularly local journalism.
>
> The amendment "will provide a significant boost to newspapers and > other
> businesses to preserve jobs -- providing a cash infusion for > businesses to
> go from cutting to stabilizing, and eventually, to expanding > operations,"
> Sturm wrote.
>
> The total cost of the package is likely to exceed $20 billion, > including
> the 14-week extension of UI benefits. It would be paid for through a > delay
> of new interest expensing rules for multinationals' worldwide income > and an
> extension of the surtax employers pay to fund jobless aid.
>
> Republicans are objecting at least to the unemployment tax, which > raises
> $2.6 billion. Sen. Mike Johanns, R-Neb., called it a tax on small
> businesses that would cost companies in his home state $17 million. > "That's
> $17 million that will not be spent creating jobs," he said. Johanns > would
> instead take the money from unspent stimulus funds, but Democrats > likely
> won't allow a vote on his amendment.
>
>
> http://www.nationaljournal.com/congressdai...091029_2338.php
>
> -----
> APPROPRIATIONS: HOUSE SET TO CONSIDER INTERIOR MEASURE, WITH CR, TODAY
> By Humberto Sanchez with Megan Scully contributing
>
>
> The House today is set to consider the $32.2 billion, FY10
> Interior-Environment Appropriations conference report, which > includes a
> continuing resolution to fund government programs at FY09 levels > through
> Dec. 18.
>
> The Rules Committee Wednesday approved a rule for the measure.
>
> Interior-Environment Appropriations Subcommittee Chairman Norman > Dicks,
> D-Wash., said he expects the bill to pass, with some Republican > support
> despite expected GOP criticism over the roughly 17 percent increase > in the
> bill over FY09 and for including the CR.
>
> "I hope we have a good vote," Dicks said. "I am sure there will be > some
> people who will be upset about the CR and some who will think that the
> level of funding is too great." Dicks believes the spending increase > is
> justified given that the programs funded by the legislation have > suffered
> cuts in recent years.
>
> "Between FY01 and FY07 [funding for the Interior Department] went > down 16
> percent, [the EPA] went down 29 percent, and the Forest Service 35
> percent," Dicks said. "So this is a little bit of a catch-up, but > still we
> have a huge backlog to do out there on the public lands."
>
> Interior-Environment Appropriations Subcommittee ranking member Mike
> Simpson, R-Idaho, said he supports the bill, though he does have > concerns.
>
> "It is too much money, but that is something that we can agree to > disagree
> about," Simpson told Rules. "I also have concerns about putting the > CR on
> the bill, but I know how business is done. ... It is something that > needs
> to pass, and we all recognize that."
>
> The conference report is $4.7 billion over the FY09 bill and would > provide
> $10.3 billion for EPA; $6.7 billion for Native American and Alaska > Native
> programs; $3.5 billion for efforts to prevent and fight wildfires at > the
> Forest Service and Interior Department; and $2.7 billion for national
> parks. The Senate could take up the conference report as early as > today,
> according to a Senate leadership source.
>
> The CR is needed because the current one runs only through the end > of the
> week.
>
> Congress has sent President Obama four spending bills and on > Wednesday he
> signed into law the $42.8 billion, FY10 Homeland Security and the > FY10,
> $33.5 billion Energy and Water spending bills. He signed the FY10, > $23.3
> billion Agriculture and FY10, $4.6 billion Legislative Branch spending
> bills this month.
>
> The House has cleared its version of all 12 of the bills, while the > Senate
> has finished its version of seven. House and Senate negotiators are > working
> on reconciling differences between their respective versions of the > FY10
> Transportation-HUD bill and the FY10 Defense measure.
>
> House Defense Appropriations Subcommittee Chairman John Murtha, D-Pa.,
> said Wednesday work on the Defense measure continues, but doesn't > think
> there will be any action until the Pentagon needs money.
>
> While the military's bills are largely covered by the CR, the Defense
> Department relies on the annual appropriations bills to pay for > raises for
> military personnel and award contracts for new programs.
>
> "Last year, Christ, they were on the phone every day," Murtha said. > "Every
> year, the Defense Department has to raise hell or nothing happens."
>
> Pentagon spokesman Geoff Morrell said, "We obviously would always > prefer
> to be operating a full year appropriations, and the longer we > operate under
> a CR, the more likely we are to face negative consequences. But it's > only
> been three weeks, and we are not really at a point where it has been a
> problem to date."
>
> Murtha said he thinks the measure could include a provision to raise > the
> debt limit; he also said that it could be a vehicle for an omnibus > package,
> but Democratic leaders will need to make those calls.
>
> Meanwhile, House Appropriations Chairman David Obey said Wednesday he
> believes Congress should provide more aid to state governments, > possibly
> this year, and has mentioned the idea -- along with other proposals
> designed to stem unemployment -- to House Speaker Pelosi.
>
> There should be more state aid, Obey said. "We are going to have a > very
> serious problem with states facing even deeper budget holes than > they were
> facing last year," he said. "Adults would respond to a problem like > that."
>
>
> http://www.nationaljournal.com/congressdai...091029_8739.php
>
> -----
> HOMELAND SECURITY: LEAHY PLANS HEARING TO LOOK AT CYBERSECURITY
> COOPERATION
> By Andrew Noyes
>
>
> Senate Judiciary Chairman Patrick Leahy will soon hold a hearing to
> examine how federal agencies are working together to prepare for and > combat
> high-tech attacks, a senior committee aide said Wednesday. Leahy's > chief
> privacy counsel, Lydia Griggsby, said the panel will ask witnesses > about
> ways cybersecurity programs can be improved at the Justice and > Homeland
> Security departments.
>
> That came as a key Senate Homeland Security and government Affairs > panel
> announced a similar hearing for next week that will focus on how > agencies
> can better use taxpayer dollars to protect mission-critical networks.
> Witnesses will include former Rep. Tom Davis, R-Va.; President Obama's
> Chief Information Officer Vivek Kundra, and officials from the GAO and
> State Department.
>
> They will testify that the current method of overseeing > cybersecurity is
> ineffective and a waste of resources, according to a press release > from
> Financial Management Subcommittee Chairman Thomas Carper, D-Del. The
> hearing will highlight how provisions of a bill Carper sponsored can
> improve cybersecurity by requiring agencies to focus on continuous,
> technical monitoring.
>
> The GAO released a report Wednesday that found sector-specific > agencies
> have made limited progress updating IT protection plans and have not
> developed effective implementation actions or provided progress > reports.
> The study was requested by House Homeland Security Chairman Bennie > Thompson
> who urged Congress to work with the White House and agencies to > "address
> this issue with the urgency that it requires."
>
> Senate Homeland Security and Governmental Affairs Chairman Joseph
> Lieberman is expected to lay out his vision for cyber legislation > Friday at
> the U.S. Chamber of Commerce. Ranking member Susan Collins said last > month
> she was preparing a bill that would give DHS -- and not what she > called a
> "White House czar" -- primary authority to protect federal civilian > and
> private computer networks from attacks.
>
> On a related front, Leahy plans to ask the Justice Department for an
> update on a year-old statute that ensured criminals who impersonate
> legitimate entrepreneurs to steal sensitive personal data could be
> prosecuted under federal ID theft laws. He wants to hold a hearing > in 2010,
> Griggsby said.
>
> Leahy introduced the measure in 2007 and it quickly won Senate > passage. It
> languished in the House for months until it was attached to an > unrelated
> bill and former President Bush signed it into law in September 2008.
>
> The law allows federal 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 computer. Under the previous regime, federal courts only > had
> jurisdiction if a hacker was across state lines. The measure made it a
> felony to use secret, malicious software to damage 10 or more > computers,
> regardless of the aggregate amount of damage caused.
>
>
> http://www.nationaljournal.com/congressdai...091029_7948.php
>
> -----
> PEOPLE: PEOPLE
> By Gregg Sangillo
>
>
> WISE MEN. President Obama Wednesday named former Sens. Chuck Hagel,
> R-Neb., and David Boren, D-Okla., to be co-chairmen of his > Intelligence
> Advisory Board. Hagel served in the Senate for 12 years before > retiring at
> the end of the 110th Congress. A Vietnam veteran, Hagel got a > reputation
> for being a maverick within the GOP, especially on national > security. Hagel
> sat on the Senate Foreign Relations and Intelligence committees > during his
> tenure. Boren was elected to the Senate in 1978 and resigned in 1995.
> During that time, he served as chairman of the Intelligence Committee.
> Boren is president of the University of Oklahoma. His son, Rep. Dan > Boren,
> D-Okla., represents Oklahoma's 2nd District.
>
> RUNNING AGAIN. Anthony Coley is set to join the communications firm
> Brunswick Group as a director. Coley was most recently communications
> director for the late Sen. Edward Kennedy, D-Mass., and at the
> Kennedy-chaired Health, Education, Labor and Pensions Committee. Coley
> starts in his role in late November, and he's taking a vacation in > Costa
> Rica in the interim. The North Carolina native got involved in student
> government while in high school, and he has enjoyed government work > ever
> since. "Government and public service is still a noble profession," he
> says. He started out working on former Vice President Al Gore's 2000
> presidential campaign. He has worked for former Rep. Harold Ford Jr.,
> D-Tenn., and he's done two stints with former Sen. Zell Miller, D-> Ga. "I'm
> the only Democrat in America who worked for Zell Miller and Ted > Kennedy,"
> he jokes. Coley was a spokesman for New Jersey Democrat Jon Corzine > in both
> his Senate and governor's offices, and he was promoted to be Corzine's
> communications director just before Corzine's near-fatal car > accident in
> 2007 made headlines. Coley earned a "public relations professional > of the
> year award" in New Jersey for his handling of the accident and the > one-week
> government shutdown in the state. Outside of work, Coley has been > running a
> lot and he recently lost about 60 pounds. "I thought losing it was > hard,
> but keeping it off is harder," he says. He will take part in an > upcoming 5K
> race for the D.C. charity So Others Might Eat. Coley is excited about
> working in the private sector with Brunswick Group, and he likes the > firm's
> public affairs focus. The managing partner of Brunswick Group's D.C. > office
> is Hilary Rosen.
>
> CREDIT SCORE. Among the newest hires in law firm Brownstein Hyatt > Farber
> Schreck's government relations practice is policy advisor Edward > Ambrose, a
> legislative assistant for former Rep. Melissa Hart, R-Pa., and a
> legislative aide for former Sen. Rick Santorum, R-Pa. Most recently,
> Ambrose worked for the National Association of Federal Credit Unions.
>
>
> http://www.nationaljournal.com/congressdai...091029_3997.php
>
> -----
> BALANCE OF PAYMENTS: CROSSING OVER
> By Bruce Stokes
>
>
> Baroness Catherine Ashton, the European Union trade minister, was in
> Washington this week for a meeting of the Transatlantic Economic > Council.
> The engaging British Labor Party veteran has struck up a close working
> relationship with U.S. Trade Representative Kirk. The former House > of Lords
> leader and ex-Dallas mayor have brandished their political acumen by
> working together, in May, for instance, in resolving a long-standing
> trans-Atlantic dispute over hormones in U.S. beef exports.
>
> But major differences remain over poultry, aircraft subsidies and, > more
> broadly, over what can be done to complete the Doha Round of trade
> negotiations and to further broaden and deepen the trans-Atlantic > economic
> relationship.
>
> Ashton and Kirk were not trade experts when they got their jobs. But > some
> of the best U.S. and EU trade ministers weren't either. They are
> dealmakers. And they desperately need to resolve long-standing > problems
> needlessly distracting governments on both sides of the Atlantic -- > and to
> provide an economic vision and sense of purpose to a partnership > that faces
> new tensions over the slumping dollar and, more broadly, over foreign
> policy issues such as Afghanistan and Iran.
>
> Ashton knows that the beef deal, as important as it was, is not > sufficient
> to carry the relationship forward. "I keep saying we can't dine out > on this
> forever," she quipped, "we have to do another one."
>
> Given the recent World Trade Organization decision against European
> subsidies for Airbus and a pending WTO decision on alleged U.S. > subsidies
> of Boeing, Ashton thinks it is time to think about an agreement that
> constrains, but probably does not abolish, government support for
> commercial aircraft makers.
>
> "We had an agreement," she said, referring to the lapsed 1992 EU-> U.S. pact
> that put a ceiling on the permissible amount of direct public aid > for large
> civil aircraft. "We need to see how we can find a new agreement that > is
> reasonable."
>
> More broadly, she warned against overuse of the WTO dispute settlement
> system in resolving disputes between friends. "I think we should > negotiate
> solutions rather than litigate them, which takes years," she said.
> "Business will be better off."
>
> On the Doha Round, which has dragged on for nearly eight years and > looks
> likely to keep dragging, she urged: "It is time for everyone to show > their
> cards. I am certain that President Obama and Ambassador Kirk are brave
> enough to do this."
>
> Such pragmatism is a breath of fresh air. The only problem is: > Ashton is a
> lame duck. Her tenure is about to end. And her reappointment is > uncertain.
> Her prospects have nothing to do with her performance, which > generally wins
> plaudits. But, thanks to the Byzantine politics of the European Union,
> where commissioner slots are allocated on a national basis, it is > not clear
> if a Brit will again get the EU trade job.
>
> Moreover, as a British Labor Party veteran, some question whether > Ashton
> should be returned to one of the most powerful jobs in Brussels when > most
> observers expect the Conservatives to win the British election next > year.
>
> So, since personalities, as important as leadership can be, are > constantly
> changing, it is important to think about systemic renewal of trans-> Atlantic
> problem solving. That raises the issue of the Transatlantic Economic
> Council, whose semi-annual meeting was Ashton's purpose for crossing > the
> pond. The TEC is a body set up in 2007 to coordinate efforts to narrow
> differences in trans-Atlantic regulatory regimes. And is the latest
> iteration of similar institutional efforts that have gone on in one > form or
> another since 1995.
>
> Its record leaves much to be desired. "TEC is a success story > waiting to
> happen," observed Peter Skinner, a Labor Party member of the European
> Parliament. "I am not sure when it will acquire the take-off speed > to clear
> the runway."
>
> This week's TEC meeting produced little of substance, in part > because the
> European Commission is in flux and the Obama administration is not
> convinced the TEC is necessary or the best way to pursue trans-> Atlantic
> economic integration.
>
> If Ashton returns to her job, or once her predecessor is in place, > both
> Washington and Brussels need to apply a dose of her pragmatism to > how they
> proceed with the U.S.-EU economic relationship. Does it need fine-> tuning or
> a new political vision?
>
> The Atlantic Council of the United States and the Bertelsmann > Foundation
> in Germany have made some useful recommendations in a recent paper:
> "Resetting the Transatlantic Economic Council: A Blueprint."
>
> They argue that: "A radical restructuring of the TEC chairmanship > would
> send a powerful signal and help revitalize the TEC." To that end, they
> suggest designating the U.S. vice president and the European > Commission
> president as TEC co-chairmen, to elevate the public and bureaucratic > heft.
>
> As the dollar weakens and the euro strengthens, it is unclear > whether the
> TEC will be sufficient to manage the tensions likely to ensue. Such
> relationship management might require a broader deal on the future > of the
> alliance, one into which leaders on both sides can subsume day-to-day
> tensions.
>
>
> http://www.nationaljournal.com/congressdai...091029_3858.php
>
> -----
> POLITICAL ROUNDUP: DEMOCRAT WITHDRAWS FROM RACE AGAINST CANTOR
>
> A month after kicking off his campaign against House Minority Whip > Cantor,
> businessman Charlie Diradour is withdrawing, the Richmond Times-> Dispatch
> reported.
>
> "During the past months I have had to be away from my family at > hours that
> they deserved my attention," he said.
>
>
> http://www.nationaljournal.com/congressdai...091029_5281.php
>
> -----
> POLITICAL ROUNDUP: SEN. NELSON ENDORSES MEEK'S SENATE BID
>
> In a move that should further solidify him as the Democratic > frontrunner
> in Florida's Senate race, Rep. Kendrick Meek Wednesday picked up the
> endorsement of Sen. Bill Nelson, D-Fla.
>
> "Kendrick Meek's career has always been defined by his public > service,"
> said Nelson. "He's stood tall for the interests of all Floridians > and is
> not afraid to take on special interests that put their needs above > those of
> our state's citizens. His voice and convictions are needed in the U.S.
> Senate."
>
> Meek faces a primary challenge from former Miami Mayor Maurice > Ferre. The
> candidates are vying for the seat GOP Sen. George LeMieux will vacate.
>
>
> http://www.nationaljournal.com/congressdai...091029_6650.php
>
> -----
> POLITICAL ROUNDUP: ANOTHER REPUBLICAN MULLS CHALLENGE OF REP. BOSWELL
>
> Republican state Sen. Brad Zaun is considering a bid for the seat > held by
> Rep. Leonard Boswell, D-Iowa, IowaPolitics.com reported.
>
> "I am taking a serious look at it," he said.
>
> Zaun criticized Boswell for speaking out against cap-and-trade > legislation
> but then voting for it in the end.
>
> Zaun said he will make a decision in the next two to three weeks.
>
> Two other Republicans are already in the race: psychiatrist Pat > Bertroche
> and former airline pilot Dave Funk.
>
> Attorney Mike Mahaffey is also considering the race.
>
>
> http://www.nationaljournal.com/congressdai...091029_5973.php
>
> -----
> POLITICAL ROUNDUP: KUSTER WINS ENDORSEMENT OF EMILY'S LIST IN N.H.
>
> EMILY's List Wednesday endorsed attorney Ann McLane Kuster, a > Democrat who
> is seeking the seat Rep. Paul Hodes, D-N.H., is vacating.
>
> "EMILY's List is proud to support Ann McLane Kuster in her campaign > for
> U.S. Congress," said EMILY's List President Ellen Malcolm. "She has > what it
> takes to make life better for Granite State families and will work > to make
> health care affordable for every American, protect a woman's right to
> choose, and look for new opportunities for renewable energy."
>
> On the Republican side, Jennifer Horn, former radio host and 2008 > nominee,
> is running for the seat. Former Rep. Charlie Bass is also > considering a
> bid.
>
>
> http://www.nationaljournal.com/congressdai...091029_5708.php
>
> -----
> HILL BRIEFS: THREE TOP TRADE NOMINEES TO GET HEARING WEDNESDAY
>
> The Senate Finance Committee has scheduled a hearing for Wednesday on
> three nominees to serve in key trade and economic policy posts.
>
> Finance Chairman Max Baucus announced the hearings for Michael Punke,
> President Obama's nominee to serve as U.S. ambassador to the World > Trade
> Organization; Islam Siddiqui, tapped to be chief agricultural trade
> negotiator at USTR; and Michael Mundaca, Obama's pick for assistant
> Treasury secretary for tax policy.
>
> With Doha Round trade negotiations at a crossroads, business groups > have
> been pressing for action on the trade nominees. Earlier Wednesday, > several
> industry trade associations led by the Emergency Committee for > American
> Trade wrote to Baucus and Senate Finance ranking member Charles > Grassley
> urging them to move on Punke's nomination, citing the WTO's upcoming
> November ministerial conference.
>
>
> http://www.nationaljournal.com/congressdai...091029_9951.php
>
> -----
> HILL BRIEFS: HOUSE LAWMAKERS SEE RED OVER BROADBAND BUREAUCRACY
>
> For the second day in a row, members of Congress -- this time in the > House
> -- raised concerns about red tape associated with the $7.2 billion
> broadband stimulus program that might discourage otherwise viable
> applicants and prevent the loans and grants from reaching communities
> needing the most help.
>
> House Small Business Chairwoman Nydia Velázquez complained at a > hearing
> Wednesday that the applications are "overly complex" and nearly 200 > pages
> long. "More often than not, small businesses can't afford in-house > lawyers,
> accountant, or support staff," she said, recommending a more > streamlined
> process.
>
> Her views were echoed by Small Business ranking member Sam Graves, who
> said, "As the first round of broadband funding concludes, it is > imperative
> that the government make changes" to address their concerns.
>
> On Tuesday, Senate Commerce Committee members complained about red > tape
> and even second-guessed Congress' decision to divide the program > between
> the Agriculture and Commerce departments.
>
> After being inundated with applications, regulators have fallen behind
> schedule and will begin announcing awardees in mid-December -- a month
> later than planned.
>
>
> http://www.nationaljournal.com/congressdai...091029_3074.php
>
> -----
> HILL BRIEFS: OBAMA SIGNS DEFENSE BILL, SAYS HE'LL CUT 'MORE WASTE'
>
> President Obama on Wednesday signed the FY10 defense authorization > bill
> and signaled that the $680 billion measure, which includes cuts to > several
> military programs, is the first step toward uncovering significant > savings
> in the Pentagon budget.
>
> "I have always rejected the notion that we have to waste billions of
> taxpayer dollars to keep this nation secure," he said. "In fact, > wasting
> these dollars makes us less secure."
>
> Obama added that the bill, which provides $560 million to continue a
> second engine program for the F-35 Joint Strike Fighter that the > Pentagon
> doesn't want, "isn't perfect."
>
> "There is still more waste we need to cut," he said. "There are > still more
> fights we need to win."
>
>
> http://www.nationaljournal.com/congressdai...091029_6654.php
>
> -----
> HILL BRIEFS: ALASKA OIL EXEC SENTENCED AFTER LONG CORRUPTION PROBE
>
> The businessman at the center of a federal investigation of > corruption in
> Alaska politics has been sentenced to three years in prison.
>
> Bill Allen, former chief executive of VECO Corp., was sentenced > Wednesday
> and fined $750,000 for bribery and conspiracy. He pleaded guilty in > May
> 2007 to improperly influencing a handful of state lawmakers with the > aim of
> passing legislation that was beneficial to the petroleum industry.
>
> Allen's sentencing was delayed as federal prosecutors pursued cases
> against elected officials with Allen's cooperation. Allen testified > in the
> case against former Sen. Ted Stevens, R-Alaska, that was thrown out > this
> year due to prosecutorial misconduct.
>
> VECO Corp. was an oilfield services company that did millions of > dollars
> in contracting work for oil producers, including design, > construction and
> maintenance jobs.
>
> Allen said through his attorney he had no comment.
>
>
> http://www.nationaljournal.com/congressdai...091029_9490.php
>
> -----
> HILL BRIEFS: AIDE ADDRESSES PATENT BILL, BLOGGER BLOGS, FLAK FLIES
>
> Senate Judiciary ranking member Jeff Sessions' office is batting > cleanup
> after a lawyer-turned-blogger published excerpts of remarks the > Alabama
> senator's general counsel made about controversial patent > legislation at a
> Biotechnology Industry Organization dinner Tuesday.
>
> Sessions spokesman Stephen Boyd questioned the accuracy of Chicago
> attorney Kevin Noonan's lengthy blog post, which detailed Joe Matal's
> musings on the bill that Judiciary Chairman Patrick Leahy wants to > bring to
> the floor in the coming weeks.
>

[Snuffysmith]

CongressDaily AM for Wednesday, Nov. 4, 2009

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

HEALTH: REID WILL NOT 'BE BOUND BY ANY TIMELINES' ON REFORM
By Anna Edney


Senate Majority Leader Reid Tuesday backed off of a Democratic push to
pass a healthcare overhaul this year.

"First of all, we're not going to be bound by any timelines," Reid said,
refusing to commit to passage this year.

Senate Democratic Conference Vice Chairman Charles Schumer of New York put
the overhaul's timeline in CBO's hands, saying the budget office has been
slower than anticipated scoring proposals Reid sent for analysis at the
beginning of last week. "That's the big intangible here," he said.

Finance Chairman Max Baucus said Tuesday that CBO scoring on the overhaul
proposals is not expected until next week. He also maintained the Senate
should aim for this year to complete the overhaul.

"I think it can be done this year," Baucus said. "It may mean late nights.
It may mean weekends. It may mean extra work, but I think it can be done
this year. I think we should try to get it done this year."

Democrats had hoped to hand President Obama a healthcare victory his first
year in office. Obama has also pressed Democrats to send him a bill before
Christmas, according to a Democratic member.

When CBO does hand Reid its analysis as early as next week, Reid will
cobble together a final bill from the best proposals and send the product
back to scorekeepers.

"We hear from CBO, we get the final package to them and back from them,"
Reid said. Then, "we're going to make sure that my Caucus and the
Republicans have an opportunity to study this legislation. We're going to
put it on the Internet. We're going to do this legislation as expeditiously
as we can, but we're going to do it as fairly as we can also."

Between Veterans Day and Thanksgiving this month, there is little time for
floor debate once the bill is ready, causing speculation the debate will
slip to December and stretch possibly into next year.

Reid spokesman Jim Manley said passage this year is still possible. "Our
goals remain unchanged," he said. "We want to get health insurance reform
done this year, and we have unprecedented momentum to achieve that."

While Reid is not sharing his overhaul proposals publicly, he and his
leadership team are still trying to round up 60 votes to allow them to
proceed to the bill on the floor when the time comes. Moderates are the
main target, and the White House is weighing in as well.

Senate Agriculture Chairwoman Blanche Lincoln met with Obama Tuesday
evening, at her request, "to seek ways to achieve health insurance reform
without exposing taxpayers to further risk." She said she has met with Reid
as well this week.

Meanwhile, two senators took aim Tuesday at the health insurance industry.

Senate Health, Education, Labor and Pensions Chairman Tom Harkin launched
an investigation into insurers' premium pricing practices for small
businesses.

"For a small business' premiums to skyrocket, all it takes is one
diagnosis for one employee or the spouse of an employee," Harkin said. "All
it takes is one older employee, a drop in the number of employees in the
business, or a pre-existing condition."

Harkin wrote Humana, United Health, WellPoint and Aetna about their
pricing practices. House Energy and Commerce Chairman Henry Waxman and
Oversight and Investigations Subcommittee Chairman Bart Stupak, D-Mich.,
launched a similar investigation earlier this year.

Senate Finance Health Subcommittee Chairman John (Jay) Rockefeller,
D-W.Va., has also accused insurers of spending less per premium dollar on
medical care for the individual and small group markets than the large
group market. He wrote Cigna directly to ask for a breakdown of their
so-called medical loss ratio in each market.


http://www.nationaljournal.com/congressdai...091104_6292.php

-----
FINANCE: BANKERS, CHAMBER AT ODDS ON OVERSIGHT
By Bill Swindell


The banking lobby is splitting with the U.S. Chamber of Commerce over a
key battle to revamp the nation's financial regulatory structure, with the
two sides differing over whether a council to monitor systemic risk
throughout the financial markets should also oversee accounting rules.

The American Bankers Association and the Financial Services Roundtable are
lobbying in support of legislation by Reps. Ed Perlmutter, D-Colo., and
Frank Lucas, R-Okla., to create a Financial Accounting Oversight Board
within the council of regulators, overriding powers the SEC has over the
Financial Accounting Standards Board.

A version of the bill could be offered as an amendment to legislation to
be marked up today by the House Financial Services Committee that would
create an oversight council of regulators and allow it to seize and unwind
at-risk firms on the verge of collapse. The markup is slated to go into
next week.

Bankers argue that such a change is needed in the aftermath of an
accounting rule that exacerbated the housing crisis, where, under
mark-to-market rules, banks were forced to value mortgage assets at their
then-low values, taking billions of dollars in losses, even though in the
long term these assets are likely to recover.

"We need to reform FASB," said Scott Talbott, senior vice president for
government affairs for the Financial Services Roundtable. "Because
accounting rules can have systemic risk impact, it's a logical place to
house jurisdiction for FASB." But the Chamber, along with the Council of
Institutional Investors and the Center for Audit Quality, oppose such a
move and are arguing that the SEC should retain its jurisdiction and not be
given over to a body that will have a primary focus regulating big banks.

"The process by which accounting standards are developed must be free --
both in fact and appearance -- of outside influences that inappropriately
benefit any particular participant or group of participants in the
financial reporting system to the detriment of investors, businesses and
capital markets," the groups on Monday wrote to Financial Services Chairman
Barney Frank and ranking member Spencer Bachus.

Tom Quaadman, executive director for the Chamber's Center for Capital
Markets Competitiveness, said placing accounting oversight within the
council would tilt its decision-making toward the 20 to 25 large firms that
would be deemed systemically important, rather than the other approximately
15,000 public companies.

"They [the council] don't have the expertise, nor are they going to have
the appetite, to worry about the other 14,980 companies. You have SEC that
has the experience dealing with the very largest to the very smallest
public companies. We think that it is important that oversight function
remains there," Quaadman said.

Perlmutter said he will likely revise his language but added that there
needs to be a mechanism for accounting rules when markets don't function --
as was the case in the home mortgage market during the end of last year and
through the spring.

"This is about avoiding exaggerations in a dysfunctional market, and
having a big group looking at the whole market, and not just accounting
procedures," Perlmutter said.

Lawmakers have shown a willingness to weigh in on the issue on the side of
banks. In March, the Financial Services Capital Markets Subcommittee
grilled SEC and FASB officials on providing some flexibility to the rule in
regard to the housing crisis, especially for assets that banks will hold as
a long-term investment and provide some cash flow from monthly mortgage
payments. FASB issued new guidance a month later, allowing banks to change
how they can take write-downs on distressed assets, making it easier to
limit losses.

"The actions by the committee earlier this year make clear that people
understand there are ramifications, for example, just as going to
mark-to-market across the board. There are ramifications to the economy
that need to be considered," said Floyd Stoner, of the American Bankers
Association.


http://www.nationaljournal.com/congressdai...091105_8511.php

-----
ENVIRONMENT: BOXER MIGHT MOVE TOWARD MARKUP WITHOUT GOP PRESENCE
By Darren Goode


A partisan standoff on the Senate Environment and Public Works Committee
might escalate today when the panel continues debate on a climate bill.

Environment and Public Works Chairwoman Barbara Boxer might move to do
what critics have labeled a "nuclear option," which could allow the panel
to approve and possibly amend a cap-and-trade bill she and Senate Foreign
Relations Chairman John Kerry have offered.

At the very least, Boxer said, "I think we can vote a bill out of this
committee."

All seven panel Republicans are continuing their boycott of the markup and
are seeking more economic analysis from EPA. "The same position we had
before," Environment and Public Works ranking member James Inhofe said.

Boxer did not tip her hand about what she will try to do when the markup
resumes today, including whether she will move to allow amendments to be
offered and voted on without Republican participation. "I think you just
need to be here tomorrow," she said. "If they don't come, you know, I'll
say one thing. If they do show up, I'll say another." She did not say how
many more days she would keep the markup open before reporting a bill out
of the panel.

Inhofe warned there could be repercussions if Boxer proceeds. "You're
destroying the integrity of the committee system," he said. "By setting
that precedent, that could come back to haunt them and, in fact, I'm sure
it would. Either you live by the rules or you don't."

Republicans say the committee rules require two Republicans in the room to
mark up a bill, while Senate rules merely call for a majority of the panel
to be present to report a bill out.

Panel Republicans were briefly represented at the first day of the markup
Tuesday by Ohio Sen. George Voinovich, who gave a 15-minute opening
statement on their behalf. Republicans then declined to attend a briefing
that afternoon by an EPA official on the costs of the bill.

Several Democrats on the panel took the opportunity at the
question-and-answer session with David McIntosh -- EPA's associate
administrator for congressional and intergovernmental relations -- to try
to further make their public case that the agency has already sufficiently
analyzed the cost of the Kerry-Boxer bill.

McIntosh said a "zone of uncertainty" included in the modeling means it is
"particularly unlikely" that running a full suite of economic models as
Republicans are calling for on the Kerry-Boxer bill would change the
agency's opinion that its costs are essentially equal to that of a
House-passed climate bill. "That prediction we're making is accurate,"
McIntosh said. Further, he added that EPA "would be reluctant" to do
another analysis now before a markup because so far the agency has spent
about $135,000 and 1,600 employee hours analyzing the House and Senate
bills.

In a letter to EPA Administrator Jackson Tuesday, Voinovich said the
agency has already agreed to do a full analysis "with inputs and
assumptions that provide a more comprehensive and accurate picture of how
it would affect our nation's economy, jobs, energy prices, and our energy
security."

Off the panel, Senate Democratic leaders Tuesday rose to Boxer's defense.
"I don't know what more the woman could do," Majority Leader Reid said.
"You badly want to dance with that person and you go over and say, 'Would
you dance with me?' If the person doesn't get up, you can't dance."

Senate Republican Conference Chairman Lamar Alexander of Tennessee said
Democrats "are refusing to let us know what a bill costs and saying you
need to start voting on something that might cost hundreds of billions of
dollars and drive jobs overseas without knowing what it costs, and we're
not about to do that."

Kerry and Sen. Lindsey Graham, R-S.C., today are meeting on Capitol Hill
with Energy Secretary Chu, Interior Secretary Salazar and White House
climate czar Carol Browner to try to make ground on a bipartisan
compromise.

They are looking to "ascertain the administration's parameters" in adding
help in a bill for nuclear energy, domestic production and technologies
that are "essential to any framework" in the Senate, Kerry said. He said
the administration's limits need to be clarified before a formal coalition
of senators can be formed to fill in legislative details, although he said
he and Graham are informally working with others.

The U.S. Chamber of Commerce, which has been hit by a handful of recent
high-profile defections because of their opposition to the House climate
bill and overall stance in the climate debate, issued a letter to Boxer and
Inhofe Tuesday commending the basic Kerry-Graham blueprint as a "positive,
practical and realistic framework" for legislation.

"The Chamber welcomes the call for a new conversation on how to address
the issue, and believes their editorial can serve as a solid, workable,
common-sense foundation on which to craft a bill," wrote Bruce Josten, the
Chamber's executive vice president for government affairs, referring to an
op-ed Kerry and Graham wrote for the New York Times. "Many other important
details are needed, but the Chamber agrees that the objectives outlined in
that editorial, coupled with their clear recognition that 'this process
requires honest give-and-take and genuine bipartisanship,' can move this
important policy objective forward in a bipartisan manner that garners
strong business community support."

Boxer called the Chamber letter a "game changer" and highlighted that the
organization is calling for inclusion of "the best parts" of the
Kerry-Boxer bill. Notably absent, however, is mention of establishing a
cap-and-trade program, which is the central tenet of the Kerry-Boxer bill.


http://www.nationaljournal.com/congressdai...091104_7740.php

-----
TAXES: DEMS TARGET 'BLACK LIQUOR' TO CLOSE HEALTH REVENUE GAP
By Peter Cohn


House Democrats are targeting a potential tax windfall to paper companies
for producing a fuel source known as "black liquor" on site at their mills,
to raise $24 billion to help close a revenue gap in the healthcare bill.

They had initially included a provision raising $26 billion through a
delay in worldwide interest expensing rules for large multinational
corporations that were set to take effect in 2011. Now much of that revenue
is gone, however, used instead by the Senate to pay for extending the tax
credit for homebuyers and net operating loss carryback relief for
cash-strapped companies.

The Senate is expected to approve the tax measures as part of an extension
of unemployment insurance benefits as early as today, setting the stage for
the House to clear it for the president's signature.

The healthcare provision would ensure that "black liquor," a wood pulp
byproduct used by paper mills for decades, does not qualify for a $1.01 per
gallon tax credit for cellulosic biofuels production established by the
2008 farm bill. IRS guidance issued in June but only made public last
month, said that paper companies could potentially qualify for the credit,
which doesn't expire until Dec. 31, 2012.

The credit is nonrefundable, which means paper firms would have to have
tax liability to qualify. And the EPA would have to register black liquor
as a qualifying fuel, which it has not done to this point. When the IRS
guidance became public last month, industry officials did not believe paper
companies would receive much of a windfall because of those restrictions.

"We don't think black liquor qualifies for this credit and aren't pursuing
it, but when policymakers make these kinds of changes, they need to avoid
unintended consequences on other important renewable energy incentives,"
said a spokesman for the American Forest & Paper Association.

Congressional scorekeepers nonetheless appear to believe the provision
will raise significant funds and the numbers match up fairly evenly with
the revenue loss from using the worldwide interest language elsewhere.

The main sponsor of the energy provision is Democratic Congressional
Campaign Committee Chairman Chris Van Hollen of Maryland. He introduced
stand-alone legislation Monday to prevent paper firms from claiming the
cellulosic credit for making black liquor. It would expand eligibility for
the credit to "cultivated algae, cyanobacteria, or lemna," according to a
description released by his office.

"In addition to supporting homegrown renewable energy, it is my hope that
this legislation will be added to the manager's amendment for the House
healthcare reform package making its way to the floor this week so that the
savings generated by these improvements can help pay for health care for
all Americans," Van Hollen said in a statement.

Paper firms have broad support in the Senate, including from Sen. Olympia
Snowe, R-Maine, who is a pivotal player in the healthcare debate and might
not take kindly to the House Democrats' move.

Arizona Reps. Ann Kirkpatrick, a Democrat, and Jeff Flake, a Republican,
wrote to Ways and Means Chairman Charles Rangel on Oct. 21 urging him to
move quickly to close off paper firms' potential eligibility for the
cellulosic credit. They said it would otherwise put firms such as Catalyst
Paper Corp. -- which uses recycled fiber at its Snowflake, Ariz., facility
and thus does not produce black liquor -- at a competitive disadvantage.

Companies like Catalyst and Marcal Paper LLC are also calling on Congress
to end a separate tax credit paper firms have already benefited from.

Through midyear, paper firms had claimed about $2.5 billion through a
separate, 50 cents per gallon credit for alternative fuels mixtures. Of
that, International Paper Co. alone received more than $1 billion.

That provision expires at the end of the year, and House Ways and Means
and Senate Finance panel leaders, as well as the Obama administration,
would like to remove black liquor's eligibility for the alternative fuels
credit as well.


http://www.nationaljournal.com/congressdai...091104_4002.php

-----
POLITICS: OWENS HOLDING ONTO THE LEAD IN NEW YORK HOUSE RACE
By Erin McPike


Democrat Bill Owens appeared headed for victory Tuesday night in a special
New York House election that exposed a deep schism in the Republican Party
and threatened to undercut strong GOP performances in two governor's races.

With 84 percent of precincts reporting, Owens had 49 percent to 46 percent
for Conservative Party candidate Doug Hoffman and 5 percent for Republican
Dede Scozzafava, whose name remained on the ballot despite her 11th-hour
decision to suspend her campaign. The seat, which has been in Republican
hands for more than a century, opened when GOP Rep. John McHugh was
confirmed as Army secretary.

Republicans had framed the New York House election and governor's races in
Virginia and New Jersey as a referendum on President Obama, suggesting GOP
victories in three East Coast races reflected a nationwide unhappiness with
a president and his policies.

But their argument lost some luster as votes in the sprawling district
were counted.

Scozzafava, the handpicked candidate of GOP county leaders in the
district, came under fire early from conservatives in her own party,
including some prospective 2012 presidential candidates who backed Hoffman.

Scozzafava, running third in independent polling and struggling to raise
money, suspended her campaign over the weekend, then endorsed Owens. The
National Republican Congressional Committee, which had endorsed Scozzafava,
scrambled to back Hoffman -- and to play down suggestions that the party
was driving away moderates.

House Majority Leader Hoyer was happy to pursue that suggestion Tuesday,
saying, "I think, frankly, win or lose, the Republican Party's lost that
election," he said. He suggested the handling of Scozzafava showed the GOP
was "continuing to marginalize itself, continuing to narrow its base,
continuing to reject any moderate voices in its party."

In the Virginia governor's race, Republican Bob McDonnell coasted to
victory, handing a setback to Democrats who just a year ago trumpeted
President Obama's victory there as a sign of the party's resurgence in the
South. McDonnell topped state Sen. Creigh Deeds, whose lackluster campaign
drew criticism from White House political operatives even as Obama
campaigned for him.

And in the New Jersey governor's race, Democratic incumbent Jon Corzine
fell to former U.S. Attorney Chris Christie. Recent polls showed the race
tightening, giving hope to Democrats that Corzine could pull out a win
after trailing early by wide margins. But those hopes were dashed as the
final votes were being tallied late Tuesday.

Results were not available in a special House election in California, but
Democrat John Garamendi, a former lieutenant governor was highly favored
over Republican attorney David Harmer. The seat opened when Democratic Rep.
Ellen Tauscher resigned to take a senior position at the State Department.


http://www.nationaljournal.com/congressdai...091104_2517.php

-----
TAXES: CONCERN GROWING THAT EXTENDERS MIGHT LAPSE NEXT MONTH
By Peter Cohn


Concern is growing among business lobbyists that Democratic leaders will
let dozens of tax provisions lapse after their Dec. 31 expiration dates,
although top Democrats say it's too early to make that call.

"It sounds like it's a definite possibility," said one industry official.
"Every year we go through this fire drill, but it seems like this time
there is a sense of inevitability that hasn't been there before."

The uncertainty surrounding the provisions, such as tax credits for
research and development and renewable fuels and the deduction for state
and local sales taxes, is caused by a variety of factors, according to
aides and lobbyists.

The main obstacle to passage of an "extender" bill appears to be the need
to complete work on healthcare legislation, which has consumed the House
Ways and Means and Senate Finance panels for much of the year. Whatever
offsets are included in the final health measure will dictate what
revenue-raisers are left on the table for an extender package, for
instance.

"We still hope to do them this year," a senior Democratic aide said. "But
until we know how health care is going to shake out, finding acceptable
offsets will be a challenge."

Also, Congress has let the provisions lapse before only to extend them
retroactively the following year.

That occurred last year with a number of provisions, including the R&D tax
credit and state and local sales tax deduction, which expired in 2007. They
were eventually extended in October 2008 as part of the legislation
creating the Troubled Asset Relief Program.

Also, next year a debate on comprehensive tax reform is expected, driven
by the expiration of the 2001 and 2003 tax cuts at the end of 2010. That
creates an opportunity to review and determine whether the provisions
should be renewed or scrapped in favor of a different system. But
supporters argue the tax reform debate could take some time to conclude,
and given the perilous state of the economy, this would be no time to let
the tax provisions lapse and create uncertainty.

"Thousands of U.S. businesses and individual taxpayers would face major
tax increases if these tax provisions expire," over 500 companies and trade
associations wrote to lawmakers last month.

Backers will have an opportunity to make their case to extend the
provisions as part of legislation to extend the estate tax at 2009
parameters, which many Democrats regard as a must-pass measure. Otherwise,
the estate tax rate will go to zero next year only to snap back at a higher
rate in 2011.

Top tax-writers said they still have every intention of turning to the
extenders before they expire. "It's just staff discussion," House Ways and
Means Select Revenue Measures Subcommittee Chairman Richard Neal, D-Mass.,
said of speculation Democrats plan to let the extenders lapse.

Ways and Means Chairman Charles Rangel would not say with certainty that
the measure would get done this year, however. "I hope so; I really do,"
Rangel said. "It is our intention to not let the extenders cause any
problem. That's why we don't like extenders."

Meanwhile, Ways and Means Democrats met with National Economic Council
Director Lawrence Summers and Deputy Director Jason Furman on Tuesday to
discuss the employment outlook. Summers declined to comment after the
meeting, but lawmakers said it was just a meeting to discuss ideas to help
jolt the economy. "They said quite honestly that they were not prepared to
make a decision to unveil to the Congress," Rangel said. "I've made it
clear that I didn't want anything for the record and that we wouldn't be
able to report anything for the record. We just don't want to bump heads
with the administration."


http://www.nationaljournal.com/congressdai...091104_1157.php

-----
APPROPRIATIONS: NEGOTIATORS RACE CLOCK, HEALTH DEBATE TO FINISH PROCESS
By Humberto Sanchez, with Megan Scully contributing


House Democratic leaders hope to finish work on the remaining
appropriations bills in roughly the next two weeks, and could tee up an
omnibus package, but Senate Democrats still hope to finish some of the
bills one at a time.

"They want to get all of [the bills] done by about Nov. 16th. ... before
Thanksgiving," House Defense Appropriations Subcommittee Chairman John
Murtha, D-Pa., said Tuesday. "If that happens, who knows?"

Appropriations sources on and off Capitol Hill confirmed that the seven
remaining subcommittees that have not had their bills sent to President
Obama have been instructed to wrap up any undecided issues in the bills by
about Nov. 13 and be ready for the floor by about Nov. 16, which could be
the week the House takes up an omnibus package to wrap up the FY10
appropriations process.

The timing is expected to depend on how the House handles the healthcare
debate, as well as the subcommittees' ability to complete the work in time,
according to senior Republican aide. This source added that deadlines have
been set like this before, only for nothing to happen.

To date, Congress has sent Obama five of the 12 annual spending bills. The
House has finished work on all 12 bills, while the Senate has gotten
through just seven. Last week, Congress passed a continuing resolution
funding the government at FY09 levels through Dec. 18.

Murtha's comments come as Appropriations staffers have been working to
square differences on the remaining bills. The FY10 Defense measure and the
FY10 Transportation-HUD bill -- which were approved by both chambers -- are
waiting for a conference to be set once House and Senate negotiators are
ready.

"Most of these bills are pretty well done," Murtha said. "We got most of
the big stuff worked out."

Murtha added that he hopes conferees can meet next week to agree to a
compromise measure and send it to the floor and on to the Senate.

"I think next week we've got a chance," Murtha said, adding that the
measure could include a provision to increase the debt limit. "We've got to
pass a debt limit increase; everybody knows that."

House Transportation-HUD Appropriations Subcommittee Chairman John Olver,
D-Mass., said he was skeptical that the time frame would be met given that
the Senate still wants to try to pass more bills.

"I am not taking too seriously the intermediate stages along the way until
we begin to see whether they are actually going to produce any more of
those bills," Olver said.

Senate Appropriations Chairman Daniel Inouye said Tuesday he hopes to pass
as many individual bills as possible in the Senate, but he conceded time is
running out.

"We are trying to take up two bills this week, and next week a couple
more," Inouye said.

The Senate could move to the $64.9 billion, FY10 Commerce-Justice-Science
Appropriations bill as soon as today, once it finishes work on a $24
billion package of jobless benefits and tax incentives for homebuyers and
struggling businesses.

The Senate began considering C-J-S Oct. 5, but set it aside after failing
to get 60 votes to cut off debate on the bill Oct. 13.

After C-J-S, the Senate is expected to move to the $133.9 billion Military
Construction-VA spending measure.

Inouye said next week he would like to clear compromise Defense and
Transportation bills.

But he stressed that progress on the remaining appropriations bills and
the likelihood of ending the FY10 appropriations process with an omnibus
lies with cooperation from Senate Republicans. "We are going to try our
best to get every bill done, but it seems unlikely in this world," Inouye
said. Republicans "are not helping themselves because I think the people of
the United States are not that dumb."


http://www.nationaljournal.com/congressdai...091104_4721.php

-----
FINANCE: DODD MIGHT PUSH OUT REGULATORY OVERHAUL LEGISLATION
By Dan Friedman


Senate Banking Chairman Christopher Dodd is getting ready to move ahead
with financial regulatory reform legislation, a move that committee
Republicans said represents a potential partisan push on legislation that
had been expected to win backing from both parties in committee.

Though a timeline is not set, Dodd "could release a discussion draft as
soon as this week and the committee could mark up a bill as early as the
week of Nov. 16," a spokeswoman said Tuesday.

Dodd has not detailed his plans, but has indicated the bill would create
an independent consumer protection agency and create a bank regulator by
combining powers held by the FDIC, the Office of Thrift Supervision, Office
of the Comptroller of the Currency and the Federal Reserve.

Despite nearly daily talks, Dodd and Banking ranking member Richard Shelby
remain at odds on creation of an independent consumer financial agency,
Senate aides said.

"That seems to be the main sticking point," a Senate aide said.

Shelby declined to comment on Dodd's plans Tuesday. But Sen. Bob Corker,
R-Tenn., a key Republican on the panel who has worked with Sen. Mark
Warner, D-Va., to develop bipartisan reform proposals, said he is concerned
Democrats might move without real GOP input.

"It's detrimental to the process that he move something in a partisan
manner," Corker said.

Corker argued that the Obama administration is pushing for quick action on
a bill too focused on responding to the financial crisis.

"It's artificial pressure," Corker said. "It's to announce a victory. I
don't criticize Chairman Dodd for that. I think he is under pressure from
the administration and I understand why he might want to react to that.
It's solely political."

Corker said areas of contention will include creation of the consumer
agency and what he called Democratic plans to codify "a too-big-to-fail
mentality."

A Banking Committee spokeswoman said Dodd's urgency reflects the fact that
"it's been over a year since the collapse of Lehman Brothers and every day
we don't pass reform we leave the economy open to the risk of" similar
failures.


http://www.nationaljournal.com/congressdai...091104_5246.php

-----
DEFENSE: TEXANS MOUNT CAMPAIGN TO KEEP ARMY TRUCK CONTRACT
By Megan Scully


Texas lawmakers and other officials have launched a Web site intended to
mobilize public support to overturn the Army's decision to award a
lucrative truck contract to Wisconsin-based Oshkosh Corp.

The site, DefendTexasJobs.org, is the product of a task force set up in
recent weeks by state and local officials, business leaders and members of
Congress to make the case that BAE Systems, which has been building the
Army's Family of Medium Tactical Vehicles, should continue producing the
trucks at its plant in Sealy, Texas, just west of Houston.

BAE Systems is protesting the contract award -- a five-year deal whose
price tag could total as much as $3 billion -- to GAO, which is expected to
issue a ruling in mid-December.

The task force, which includes Texas Republican Sens. John Cornyn and Kay
Bailey Hutchison and GOP Rep. Michael McCaul, boasts on its site of BAE's
success with the truck program. It says the FMTV program has contributed
$500 million annually to the state economy and warns that losing the
contract will cost the Sealy area 3,000 jobs.

The group's campaign, which provides templates for letters that supporters
can write to Defense Secretary Gates and Army Secretary John McHugh, is
reminiscent of efforts by Boeing Co. supporters during the firm's protest
last year of the Air Force's decision to select Northrop Grumman Corp. and
EADS to build aerial refueling tankers.

Boeing also has had success teaming up with subcontractors and labor
unions to win congressional support for continued production of C-17 cargo
aircraft.

But it is unclear whether such public campaigns have any sway on
proceedings to consider contract protests, which focus on whether the
selection process was flawed. GAO officials, who conduct their reviews
largely in secret, do not weigh unsolicited input from concerned citizens
or consider the impact of the contract award on local economies.

Wisconsin's congressional delegation last month criticized BAE supporters
for "blatant efforts to affect the outcome of this independent,
quasi-judicial review by attempting to raise protest issues through a
public media campaign and through improper contact with Department of
Defense officials."

As is typical of winning bidders, Oshkosh has been quiet about the
contract protest. But Oshkosh CEO Robert Bohn said in a statement Tuesday
that he is confident that the competition for the trucks was fair and
objective.

"We expect that U.S. taxpayers will receive improved value and that U.S.
soldiers will benefit from Oshkosh's expertise as a producer of high
quality, high performance tactical wheeled vehicles," he said.


http://www.nationaljournal.com/congressdai...091104_5161.php

-----
HOMELAND SECURITY: HOUSE GOP SET TO CHALLENGE CHEMICAL PLANT SECURITY BILL
By Chris Strohm


A partisan House floor fight is expected this week over legislation that
would place new security requirements on facilities across the country that
use or store dangerous chemicals.

Tensions have simmered as the legislation made its way through House
committees, stoked by heavy lobbying from the chemical industry on one
hand, which wants to kill the most controversial parts of the bill, and
environmental and labor groups on the other hand, which support stricter
regulations.

But Democrats have roundly defeated Republican efforts to water down the
bill at the committee level, and are expected to prevail again on the
floor.

The bill would reauthorize and expand the ability of the Homeland Security
Department to enforce chemical security regulations. On a related front,
the bill also would codify the authority of the government to regulate
security at public water treatment facilities.

The House Rules Committee agreed Tuesday to give Republicans the ability
to offer amendments during floor debate.

Homeland Security Transportation Security Subcommittee ranking member
Charles Dent, R-Pa., will offer an amendment to strip out a provision that
would allow the department to require chemical facilities to use safer
technologies and processes.

Republicans, backed by the chemical industry, argue that a
safer-technology mandate would be onerous and costly for facilities. An
alliance of industry groups, including the American Petroleum Institute and
U.S. Chamber of Commerce, has been lobbying against the requirement.

Democrats counter that Homeland Security would have to determine that the
requirement is feasible and would not significantly impair a facility's
business. The Obama administration also supports the provision.

But some Democrats may vote for the amendment. Reps. G.K. Butterfield,
D-N.C., and Charlie Melancon, D-La., for example, have expressed concern
that a mandate might place too many burdens on companies in their
districts, which are home to farm industry firms and chemical plants,
respectively.

Energy and Commerce ranking member Joe Barton will offer an amendment that
would ensure that federal security requirements pre-empt state and local
regulations. The bill in current form would allow state and local
governments to enforce tougher regulations than those set at the federal
level.

There also will be an amendment by Homeland Security Intelligence
Subcommittee ranking member Michael McCaul, R-Texas, that would prevent
citizens from being able to sue the Homeland Security Department for
failing to enforce security requirements.

In addition, Rep. Jeff Flake, R-Ariz., will offer an amendment that would
prevent earmarks in a new grant program established by the bill. His
amendment has language saying that Congress expects grants to be awarded on
a competitive basis and, if they are not, the department must submit a
report to Congress with an explanation.

The ultimate fate of the bill is uncertain, as there is not yet companion
legislation in the Senate. The FY10 Homeland Security Appropriations bill
that President Obama signed into law last week also reauthorizes the
department's current chemical security program until next October.


http://www.nationaljournal.com/congressdai...091104_5886.php

-----
JUDICIARY: HOUSE COMMITTEE ARGUES OVER PATRIOT ACT PROVISIONS
By Andrew Noyes


The stage is set for a potentially raucous day in the House Judiciary
Committee today as Democrats try to push legislation to modify and
reauthorize expiring portions of the USA PATRIOT Act. They are also
scheduled to mark up a separate bill to provide courts with specific
standards for handling state-secrets claims by the government in civil
lawsuits.

House Judiciary ranking member Lamar Smith and other Republicans have
unsuccessfully argued that the PATRIOT Act bill introduced two weeks ago by
Chairman John Conyers with House Judiciary Constitution Subcommittee
Chairman Jerrold Nadler, D-N.Y., and Crime, Terrorism and Homeland Security
Subcommittee Chairman Bobby Scott, D-Va., deserves a hearing before it is
teed up for a vote.

Smith called the lack of a hearing an "unwarranted departure" from the
regular committee process. He chaired a GOP briefing on the bill Tuesday.
Smith said Democrats insist on making unnecessary changes to the law that
could undermine law enforcement. The Obama administration backed a full
reauthorization of the expiring provisions but said it remained open to
suggestions for modifications.

The Conyers bill clarifies "roving wiretap" language to ensure that the
government only conducts surveillance on an identifiable target; and beefs
up the standard for law enforcement orders for individuals' library,
bookstore and other business records. The measure includes safeguards
against abuse of "sneak and peek" searches and misuse of devices that
record numbers dialed from a specific phone line.

Additionally, the bill calls for annual inspector general audits and
reports to Congress on several PATRIOT Act powers through the end of 2013.
Certain statutes would sunset Dec. 31, 2013, and a related "lone wolf"
provision would expire at the end of this year. The Justice Department said
the lone wolf power has never been used but should remain an option.

Some Democrats don't believe Conyers has gone far enough. Rep. Rush Holt,
D-N.J., on Tuesday introduced a bill nearly identical to one sponsored by
Senate Majority Whip Durbin that would repeal the controversial shield
Congress gave telecom firms that helped the Bush administration spy on U.S.
residents without warrants. That provision and several others piggyback on
Rush's PATRIOT Act reauthorization proposal.

The Foreign Intelligence Surveillance Act's telecom immunity language
would be repealed under a separate bill that Conyers, Nadler and Scott
introduced last month. That measure would prevent the use of warrantless
wiretap authorities for "bulk collection" of data and places new limits on
"reverse targeting" of U.S. citizens.

Conyers and Nadler reintroduced their state secrets bill in February after
it passed Nadler's subcommittee a year ago despite strong objections.
Republican members claimed the privilege dates back to Marbury v. Madison,
the 1803 Supreme Court case that formed the basis for judicial review under
the Constitution.


http://www.nationaljournal.com/congressdai...091104_5001.php

-----
HEALTH: ELLSWORTH TAKES HEAT FROM ALL SIDES
By Kasie Hunt with Billy House contributing


An anti-abortion Democrat circulated a plan Tuesday to strengthen abortion
restrictions in House Democrats' health reform overhaul, drawing fire from
Democrats who support abortion rights.

Rep. Brad Ellsworth, D-Ind., is working with anti-abortion Democrats to
make sure the health bill contains ironclad rules prohibiting federal funds
from being used to provide abortion. "The bottom line is we're going to
exhaust every avenue to ensure pro-life concerns are addressed in this
legislation," Ellsworth said in a statement.

Ellsworth said his plan would include measures to make sure federal money
is not used to provide abortions under the public plan; prohibit federal
money from paying for abortion services in any plan purchased through the
exchange; strengthen accounting rules requiring insurance companies to
separate private premiums from public subsidies; and expand conscience
protections for plans that do not provide abortion.

Ellsworth's proposals would strengthen language drafted by Rep. Lois
Capps, D-Calif., and accepted in the House Energy and Commerce Committee's
markup of the overhaul. The changes are aimed at assuaging the concerns of
enough anti-abortion Democrats to ensure House leaders have enough votes to
bring the bill to the floor.

But Ellsworth's efforts have drawn fire from lawmakers who support
abortion rights. "The healthcare bill already includes language that
restricts federal funding of abortion," said Kristofer Eisenla, a spokesman
for Rep. Diana DeGette, D-Colo., co-chairwoman of the Congressional
Pro-Choice Caucus. "This issue was addressed with the adoption of the Capps
Amendment during the Energy and Commerce Committee markup of the
legislation."

Ellsworth is also facing strong condemnation from anti-abortion advocates.
The effort "serves no purpose except to assist Speaker Pelosi in her
attempt to peel votes away," said Douglas Johnson, legislative director for
the National Right to Life Committee.

Under the current bill, HHS would write regulations determining whether
the public plan would be allowed to cover abortion services. Ellsworth's
proposal would not change that but would add layers of protection to ensure
that private money paid to the public plan would be kept out of government
coffers.

Johnson said anti-abortion groups can't accept such a construction. "If
the federal government insurance plan pays for abortions, that is federal
funding for abortion," he said. Johnson said his organization would
consider the vote on the rule bringing the healthcare bill to the floor as
a direct representation of members' positions on abortion.

House leaders are working to finish a manager's amendment to the overhaul
package they released last week. They delivered the package of changes late
Tuesday night. That could push a final vote on the bill until at least
Saturday if they are to fulfill their pledge of allowing 72 hours for
people to read the changes. [Updated from print version.]

The House Rules Committee could meet as early as Thursday to structure
floor debate. Leaders are considering including any changes to the Capps
amendment language in the rule itself, though the final construction has
yet to be determined.

House Rules Chairwoman Louise Slaughter, also a co-chairwoman of the
Pro-Choice Caucus, said Tuesday she remains opposed to including abortion
compromise language in the rule for debate on the bill.

"There's talk about doing that. There's talk about not doing that. I'm the
one leaning against it," said Slaughter. "Rules have gotten harder and
harder to pass around here," she said.


http://www.nationaljournal.com/congressdai...091104_1815.php

-----
PEOPLE: PEOPLE
By Sara Jerome


AGRICULTURE SHUFFLE. Senate Agriculture Chairwoman Blanche Lincoln's
arrival in the top committee spot has occasioned some staff changes. R.L.
Condra will serve as a professional staff member. He was director of
congressional affairs for the Delta Regional Authority in its Washington
office. Brian Baenig will serve as a senior adviser. He was a professional
staff member on the Senate Judiciary Committee, a senior legislative
assistant to Judiciary Chairman Patrick Leahy, and a legislative assistant
to the late Sen. Paul Wellstone, D-Minn. Bart Kempf will serve as a senior
counsel. He was an associate at the law firm Beveridge & Diamond, where he
practiced environmental law. He also interned for Lincoln when he was a law
student at Georgetown University Law Center. Courtney Rowe will serve as
communications director. She was the associate director of rural outreach
for the Senate Democratic Steering and Outreach Committee, where she worked
for both Lincoln and Majority Leader Reid. Liz Friedlander will serve as
press secretary. She was communications director at the National Farmers
Union and an intern for Sen. Kent Conrad, D-N.D., and Rep. Earl Pomeroy,
D-N.D. Libby Whitbeck will serve as a staff assistant and Ashlee Nicole
Johnson will serve as executive assistant.

GOULE-ISH VEEP. Chandler Goule will start at the National Farmers Union as
vice president of government relations later this month. He arrives from
the House Agriculture Livestock, Dairy and Poultry Subcommittee, where he
served as staff director. Before that, he was a professional staff member
on the House Agriculture Committee and a senior legislative assistant to
House Agriculture Chairman Collin Peterson. When Goule first arrived on
Capitol Hill as an intern to former Rep. Charles Stenholm, D-Texas, he set
a goal for himself: "Become a House Agriculture Committee staffer," he
says. Now, as he looks forward to expanding his portfolio to include
energy, trade, taxes and immigration issues, he sees the private sector as
the "next logical step." Agriculture issues were a natural draw for Goule,
whose family owns a cattle farm in Texas.

PARALLEL MOVE. Aaron Smith has joined the office of Rep. Henry Brown,
R-S.C., as legislative director. He served in the same position in the
office of Rep. Aaron Schock, R-Ill. Before that, Smith spent over five
years in the office of former Rep. Kenny Hulshof, R-Mo., rising from staff
assistant to L.D. In Brown's office, Smith succeeds Ryan Bowley, who joined
Strategic Marketing Innovations, a government relations firm. Mark Roman
was promoted to L.D. in Schock's office.


http://www.nationaljournal.com/congressdai...091104_8358.php

-----
WIRED IN WASHINGTON: RUSHING INTO UNCHARTED TERRITORY
By David Hatch


What's the FCC not telling you?

You've probably heard that the regulatory agency is cooking up a national
broadband plan rivaling the watershed Telecommunications Act of 1996 in
size and scope. The massive blueprint, required by this year's economic
stimulus package, must be submitted to Congress Feb. 17.

Maybe you're familiar with the main goals: to achieve affordable and
universal broadband access and make the United States as wired as places
like tech-savvy Japan. Proponents envision robust networks that can
accommodate bandwidth-heavy applications such as telemedicine and
smart-grid technology and speak of connectivity that reaches every nook and
cranny, from remote hilltops to the poorest city blocks.

To hear FCC officials describe it, this will be the grand vision for
technology in the 21st century.

The agency has held dozens of public sessions to foster an open dialogue,
but it's not sharing everything it knows -- particularly about the huge
obstacles it faces. As the FCC prepares to issue a status report at its
Nov. 18 meeting, here are 10 things you need to know about the plan that
you won't hear from carefully scripted regulators:

Tight deadline means a rushed job: While FCC officials acknowledge they
would have preferred a later deadline, they haven't said what's become
clear: They need more time. The agency has been rushing because it has no
choice, and regulators insist they have enough data to finish the job on
time. But a national map of broadband availability that could inform their
decision-making won't even be ready until February 2011.

Blueprint may be dead on arrival: Since most of the recommendations are
expected to require congressional or FCC approval, a protracted war could
erupt next year over implementation. Right now, the only guarantee is that
the voluminous set of proposals will make a highly effective door stop.

Process suffers from mission creep: What began as a way to expand and
improve broadband service has morphed into an unwieldy effort to tackle
every modern technology problem, including cybersecurity, digital literacy,
emergency communications and privacy. It won't.

Rapid change could make the plan obsolete: Remember when the iPhone was
the only touch-screen smart phone on the market? No plan can predict the
next innovation and guarantee that taxpayers won't end up financing
outmoded technologies.

Goals are unrealistic: As the nation learned from this year's digital
television switchover, national technology initiatives are tough to
implement. According to the nonpartisan Pew Research Center, 33 percent of
Americans choose not to subscribe to broadband and another 4 percent live
in unserved areas. Universal access means connecting every resident in all
50 states and territories, despite educational, financial and language
barriers, the challenge of wiring isolated communities and even consumer
disinterest.

Industry participation is not assured: While telecom firms will continue
to invest in their infrastructure, less clear is whether those expenditures
will be consistent with the plan's egalitarian goals. AT&T is running ads
stating that it supports a national initiative to connect every citizen to
broadband in five years. But it's referring to its own strategy, not the
government's.

Gaps between "haves" and "have nots" will remain: Telecom companies
routinely roll out their newest products and services first to
predominantly well-populated, upper-income areas -- and there's unlikely to
be anything in the plan to change that.

Hidden costs may be daunting: Try surfing the Internet these days without
antivirus software. The expense of new computers, modems, software and
wireless devices are hidden costs that could run up the price tag for
consumers and the government. Not to mention the cost of educating the
public and replacing equipment and networks when they become outmoded.

Spectrum shortage could spoil the party: To accomplish the agency's
ambitious goals, the FCC will need a lot more wireless spectrum, yet it's
already running into roadblocks. When it recently floated a radical scheme
to convince television broadcasters to relinquish large chunks of their
digital airwaves, stations quickly panned the idea. With the deadline
looming, the agency is cutting it close by rummaging for frequencies now.

We're not South Korea, Japan or Singapore: What those countries have
accomplished with broadband deployment and usage will be tough to replicate
here for a variety of reasons, experts say, including demographic,
geographic and societal factors that make wiring those nations an easier
task.

To the FCC's credit, it has been working overtime on this project and
doing the best it can under the circumstances. But it is facing an
unforgiving deadline that will make it tough to deliver a plan in February
that can stand the scrutiny it's certain to receive.

Late last month in Chicago, Blair Levin, the FCC official overseeing work
on the plan, was delivering a speech on broadband when he collapsed from
exhaustion and illness and was briefly hospitalized. Let's hope that's not
a harbinger of the broadband plan's fate.


http://www.nationaljournal.com/congressdai...091104_1478.php

-----
POLITICAL ROUNDUP: GRAYSON RAISES OVER $500,000 ON MONDAY

Freshman Rep. Alan Grayson, D-Fla., who has quickly gotten a reputation
for his blunt comments, raised more than $500,000 on Monday, according to
his campaign.

The lawmaker set Monday, a year before next year's elections, as a day for
his "moneybomb."

More than 13,000 people made contributions to the event and the average
contribution was below $40.

"We have created a new paradigm for a congressional campaign," said
Grayson. "What we've demonstrated is that you can finance a campaign for a
competitive district in an expensive media market through People Power. Not
by sucking up to lobbyists, special interests or favor-seekers, but rather
by the small contributions of thousands upon thousands of people who care
about Central Florida and America."

Grayson will be a top target of the Republicans next year.

Developer Armando Gutierrez, a Republican, is running and has picked up
several endorsements from local lawmakers.


http://www.nationaljournal.com/congressdai...091104_2950.php

-----
POLITICAL ROUNDUP: ANOTHER CANDIDATE TO JOIN N.H. REPUBLICAN SENATE FIELD

Businessman Bill Binnie, a Republican, said he plans to file paperwork
with the FEC today or Thursday for the seat Sen. Judd Gregg, R-N.H., will
vacate, the Fosters Daily Democrat reported.

He said he would be willing to use his own resources as "seed money" for
the campaign.

Former state Attorney General Kelly Ayotte and businessman Jim Bender are
already in the Republican contest.

Businessman Sean Mahoney and attorney Ovide Lamontagne are also
considering bids. Rep. Paul Hodes is running on the Democratic side.

Binnie, who founded Carlisle Plastics, stressed he was not a "career
politician" but someone who knows "how to fix things."

"People want answers. They don't want bickering and they don't want
fighting. They just want people who can help solve the challenges that they
face in their every day lives," he said.


http://www.nationaljournal.com/congressdai...091104_2080.php

-----
POLITICAL ROUNDUP: REPUBLICAN OPTS OUT OF RUNNING FOR TIAHRT'S SEAT

Republican state Sen. Susan Wagle, who had expressed interest in running
for the seat Rep. Todd Tiahrt, R-Kan., will vacate next year, announced
Tuesday she would not run, the Wichita Eagle reported.

"I value my position as a senior state senator in a small group of 40,"
she said in a statement.

Wagle endorsed Mike Pompeo, a Republican national committeeman, who is
part of a crowded field seeking the open seat. Wagle passed on backing two
colleagues -- Sens. Dick Kelsey and Jean Schodorf -- who are also running.

State Rep. Raj Goyle and retired court services officer Robert Tillman are
seeking the Democratic nod.


http://www.nationaljournal.com/congressdai...091104_3519.php

-----
HILL BRIEFS: TWO NOMINEES, APPROPS BILLS LIKELY NEXT ON SENATE FLOOR

After passing a bill extending unemployment benefits as soon as today, the
Senate is likely this week to take up either the FY10
Commerce-Justice-Science or the Military Construction-VA Appropriations
bill and is set to clear at least two stalled executive nominations, Senate
Majority Whip Durbin said Tuesday.

The Senate may move to confirm Tara O'Toole as the Homeland Security
Department's undersecretary for science and technology and act on the
nomination of David Hamilton of Indiana to the U.S. Court of Appeals for
the 7th Circuit, Durbin said.

Democrats in recent days have repeatedly ripped Republican holds on
Hamilton and O'Toole, with Senate Majority Leader Reid suggesting the hold
on O'Toole, whose job includes bioterrorism preparation, endangers
Americans.

Sen. John McCain, R-Ariz., has held up O'Toole's nomination due to
concerns about her past lobbying work but will allow the nomination to move
after she responds to questions, an aide said.

Sen. James Inhofe, R-Okla., has said he placed a hold on Hamilton due to a
past ruling on religious expression. Other Republicans have criticized
Hamilton. A Reid spokeswoman said he will file cloture on the nominees if
agreements are not reached.


http://www.nationaljournal.com/congressdai...091104_1501.php

-----
HILL BRIEFS: PAID SICK LEAVE MEA

[Snuffysmith]

> CongressDaily PM for Wednesday, Nov. 4, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: HOUSE READIES FOR SATURDAY VOTE
> By Kasie Hunt and Billy House
>
>
> House Democrats today are scrambling to secure a compromise with
> anti-abortion rights moderates in their Caucus as they push for a > final
> vote on health reform legislation by Saturday.
>
> House Rules Chairwoman Louise Slaughter said today the House will vote
> Saturday on healthcare reform, and that an abortion-language > compromise
> will be "self-executed" as part of the rule for debate. The Rules > Committee
> will meet 2 p.m. Friday to vote on the rule.
>
> A group of anti-abortion rights Democrats met this afternoon in > Majority
> Leader Hoyer's office.
>
> "We're further trying to craft language," said Rep. Jim Langevin, D-> R.I.,
> as he left Hoyer's office. "We don't want the abortion issue to be the
> issue that derails universal healthcare reform."
>
> Hoyer would not confirm they were discussing abortion. "He is > meeting and
> talking to members but can't confirm a topic beyond health care," said
> spokeswoman Stephanie Lundberg.
>
> Democrats have to nail down the language before the Rules Committee > can
> meet to decide how to structure debate on the bill. Leaders promised > 72
> hours for the public to look at the bill, so late Friday evening is > the
> earliest the House could vote.
>
> "We're not coming in Friday night to do several hours of debate,"
> Slaughter said.
>
> Slaughter, who is also co-chairwoman of the Congressional Pro-Choice
> Caucus, said the rule for debating the bill on the floor will include
> language that represents a compromise on abortion.
>
> Republicans criticized the move.
>
> "If Speaker Pelosi intends to address critical issues like
> taxpayer-funding for abortion in the rule, they should make it > available
> for the American people to read for 72 hours. Transparency means > putting
> the whole bill online for 72 hours," said Michael Steel, spokesman for
> Minority Leader Boehner.
>
> Rep. Brad Ellsworth, D-Ind., has been circulating language that would
> strengthen protections already in the bill -- a proposal originally > drafted
> by Rep. Lois Capps, D-Calif. Ellsworth has said he cannot support > the bill
> unless he is assured no federal funds will pay for abortion services.
>
> Slaughter said leaders could back the Ellsworth language. "I don't > think
> there's any question at all that we were in perfect balance here > [among]
> the pro-choice people, and the law, and the anti-choice people," said
> Slaughter. "But none of us really objected to the Ellsworth > language. In
> fact, we think he did a good job."
>
>
> http://www.nationaljournal.com/congressdai...091104_7910.php
>
> -----
> TAXES: DEMOCRATS STRIP BIOFUELS CREDIT LANGUAGE
> By Peter Cohn
>
>
> House Democratic leaders today responded to concerns from Midwest
> lawmakers and are moving to strip language from the healthcare bill > that
> created uncertainty over ethanol producers' access to a renewable > energy
> tax credit.
>
> "I'll tell you what: it has certainly raised eyebrows," Rep. Earl > Pomeroy,
> D-N.D., said before it became clear the language would be stripped. > "This
> is, needless to say, no hour to start throwing in unrelated elements."
>
> At issue was language proposed by Democratic Congressional Campaign
> Committee Chairman Chris Van Hollen of Maryland and inserted in the
> managers' amendment that would have restructured a $1.01 per gallon > credit
> for cellulosic biofuels and shut off paper firms' eligibility for the
> recycled fuel source they produce.
>
> Democratic leaders plan to insert language in the rule for floor > debate
> clarifying that only the bill's prohibition on eligibility for paper > firms'
> "black liquor" that they burn on site at their mills will remain.
>
> That language alone raises $23.9 billion, according to the Joint > Committee
> on Taxation, which was the primary reason Democrats sought to > include it in
> the bill.
>
> A separate package of unemployment insurance benefits and tax breaks > for
> homeowners and cash-strapped businesses moving to final passage in the
> Senate, after a 97-1 cloture vote today, pulled an offset the House > had
> planned to use in the healthcare measure.
>
> Other parts of the Van Hollen proposal, which was backed by the > Advanced
> Biofuels Association of companies utilizing "second-generation" > renewable
> fuels, proved controversial with the ethanol industry and backers in
> Congress. First, the proposal would have tied eligibility for the
> cellulosic fuels credit to British Thermal Units rather than gallons
> produced. Backers said existing users would be held harmless and > continue
> to receive the $1.01 per gallon credit.
>
> But ethanol industry supporters argued the move could put the fuel > at a
> competitive disadvantage with other renewable fuels, such as > biodiesel made
> from vegetable oils, which may have a higher BTU content and receive > a more
> valuable credit.
>
> Since most auto manufacturers still build engines better able to > withstand
> gasoline than the more corrosive impact of ethanol, which has a higher
> octane, moving to a BTU standard would offer no incentive to > automakers to
> make engines that are more ethanol-friendly.
>
> Furthermore, the proposal could also prohibit eligibility for fuels
> co-processed with "non-qualified feedstocks." The provision simply > carries
> over language from an existing renewable diesel credit, but ethanol
> supporters feared that category could include corn cob or corn stover,
> which are the nonedible parts of corn.
>
> Chris Thorne, a spokesman for Growth Energy, an ethanol trade group, > said
> the industry supports shutting down tax loopholes such as for black > liquor.
> "We don't believe any intention to remove the loophole for paper mills
> should have the unintended consequence of erecting new obstacles to
> creating renewable, advanced biofuels by ethanol producers," said > Thorne.
>
> Also, the Van Hollen proposal would have expanded the credit's > eligibility
> to fuels derived from alternative sources such as algae and > duckweed. The
> uncertainty over ethanol's eligibility, combined with the potential
> expansion to other fuel sources, combined to make it look to > skeptics to be
> a re-distribution from one technology to others.
>
> "It looks like some kind of environmental agenda, from what we can > tell.
> And that's problematic," said House Agriculture Chairman Collin > Peterson.
> "But I'm not voting for [the healthcare bill] anyway."
>
>
> http://www.nationaljournal.com/congressdai...091104_2461.php
>
> -----
> POLITICS: BOTH SIDES SEE POSITIVES IN ELECTION RESULTS
> By Erin McPike, with Billy House and George E. Condon Jr. contributing
>
>
> Both parties found silver linings today in Tuesday's election results,
> with Democrats winning a New York House seat for the first time > since the
> Civil War and Republicans saying Bob McDonnell's strong win in the > Virginia
> governor's race put four House seats held by Democrats in play for > next
> year.
>
> Party leaders downplayed failures, with Democrats saying lost > governor's
> races in Virginia and New Jersey did not reflect on President Obama > and
> would not alter the healthcare debate, and Republicans said the loss > of the
> House seat in New York resulted from local party leaders handpicking > the
> GOP candidate.
>
> Rep.-elect Bill Owens will be sworn in Thursday to fill the upstate > New
> York seat vacated by Army Secretary John McHugh. Also joining the > House at
> that time will be Rep.-elect John Garamendi, who coasted to victory > in a
> special election to replace former Democratic Rep. Ellen Tauscher, > who is
> now a senior State Department official.
>
> That timetable would put two more Democrats in place in time for
> Saturday's crucial vote on healthcare legislation.
>
> By then, House Minority Whip Cantor and other Republicans suggested,
> moderate Democrats might start bailing out on their leaders. Cantor > called
> the Virginia and New Jersey results "a shot across the bow to > Democratic
> moderates and Blue Dogs as they consider Speaker Pelosi's radical
> healthcare overhaul."
>
> But Democrats were having no part of that argument.
>
> "I would be the most surprised person in the world if that > healthcare bill
> had anything to do with any races yesterday," said House Rules > Chairwoman
> Louise Slaughter.
>
> Pelosi said the election results improved chances of passing the
> contentious bill because leaders now have two more Democrats - 258 > in all -
> in their push for the 218 votes needed for passage.
>
> Republican Dede Scozzafava finished a distant third in the New York > race,
> with Conservative Party candidate Doug Hoffman second. Scozzafava, > bowing
> to criticism that she was too liberal for mainstream GOP voters, > suspended
> her campaign over the weekend and endorsed Owens, while the NRCC > scrambled
> to back Hoffman.
>
> National Republican Congressional Committee Chairman Pete Sessions of
> Texas tried to place the blame for Tuesday's loss of the long-held > New York
> seat at the feet of local Republican leaders who picked Scozzafava. > "There
> is no doubt in my mind that the candidate-selection process lacks > openness
> and transparency and should be changed to a primary system so voters > can
> have a say in who their respective parties nominate," Sessions said.
>
> Former Gov. Mike Huckabee, R-Ark., who ran for president in 2008 and > might
> run again in 2012, agreed the selection process was a "train wreck" > and
> intimated that he didn't initially side with the conservative choice,
> Hoffman, out of principle that third-party candidates simply don't > work in
> this two-party system.
>
> "I think Doug Hoffman would have likely won if he had been the > Republican
> nominee from the get-go and there hadn't been such a controversy," > he said
> at a Christian Science Monitor breakfast today.
>
> Still, the NRCC said it found some good news in Tuesday's numbers. The
> committee said in a memo that McDonnell's strong performance in the
> Virginia governor's race gives the GOP a chance to oust Democratic > Reps.
> Rick Boucher, Gerry Connolly, Glenn Nye and Tom Perriello. McDonnell
> carried all four districts by double-digit margins.
>
>
> http://www.nationaljournal.com/congressdai...091104_6229.php
>
> -----
> ENVIRONMENT: BOXER MULLS EXIT STRATEGY FOR MOVING BILL
> By Darren Goode
>
>
> Facing an ongoing GOP boycott, Senate Environment and Public Works
> Chairwoman Barbara Boxer continued to delay marking up cap-and-trade
> legislation today, even though members of both parties suggested > ways to
> break the standoff.
>
> To continue official work on the bill or to hold a vote, Boxer would > have
> had to overcome the objections of all seven panel Republicans, who are
> asking EPA to conduct a more thorough cost analysis of the > legislation,
> which is sponsored by Boxer and Senate Foreign Relations Chairman John
> Kerry.
>
> Boxer is likely to move the measure soon, as she and other panel > Democrats
> have consistently criticized Republicans for the boycott, defending > the
> analysis already completed by EPA as well as the way Boxer has > handled the
> process.
>
> "Stay tuned, you'll know very soon," Boxer told reporters after the
> panel's session this morning when asked whether she will try to mark > up the
> bill without Republicans. "That's what I hope to be doing," she had > noted
> earlier at the meeting. Democrats have filed about 80 amendments, > Boxer
> said.
>
> Boxer may give more details about her plans when she reconvenes the > panel
> this afternoon. She said the panel will also convene again Thursday,
> although it was unclear whether it would go beyond the speeches that > have
> been given today and Tuesday.
>
> Environment and Public Works ranking member James Inhofe, the only
> Republican to appear at today's meeting, made a short statement and > put
> into the record a letter from fellow panel Republican, Sen. George
> Voinovich of Ohio, to EPA Administrator Jackson asking for a full > EPA cost
> analysis of the bill.
>
> "I have it in writing exactly what we want," before Republicans will
> participate in a markup, Inhofe said.
>
> Meanwhile, a trio of senators is meeting today with White House > officials
> to find a way to get 60 votes in the full Senate. Kerry, joined by > Sens.
> Lindsey Graham, R-S.C., and Joseph Lieberman, D-Conn., are sitting > down
> with Energy Secretary Chu, Interior Secretary Salazar and White House
> climate czar Carol Browner to determine the administration's > positions on
> including support for nuclear energy, domestic oil and gas > production and
> other language that could be used to get enough bipartisan support > for a
> broader climate and energy bill.
>
> "We think we have a good team here to help create a dual track," > combining
> White House advice with what is occurring on Boxer's committee and the
> other five panels that have jurisdiction, Kerry told reporters > alongside
> Graham and Lieberman after their meeting with Chu. "The key is to > really
> negotiate once," Kerry said.
>
> He declined to offer details about the meeting with Chu or to set a
> timeline for the three of them to give legislation to Senate Majority
> Leader Reid so that he can put together a bill for the floor. "We're > not
> going to bind ourselves to a specific timeline," Kerry said.
>
> Graham told reporters of Chu. "He's great. He's a very good nuclear > guy."
> On whether there was talk about nuclear waste and its potential
> reprocessing, Graham said: "That's tough. He's convinced me that > there's
> maybe a way to skip over the French model and that we have 50 to 60 > years."
> The meeting with Salazar would touch upon helping domestic oil and gas
> production.
>
>
> http://www.nationaljournal.com/congressdai...091104_6761.php
>
> -----
> FINANCE: FRANK SEEKS ADVICE ON OTC REGULATIONS
> By Bill Swindell
>
>
> House Financial Services Chairman Barney Frank has written to SEC
> Chairwoman Mary Schapiro and Commodity Futures Trading Commission > Chairman
> Gary Gensler, asking that they help beef up legislation to regulate > the
> over-the-counter derivatives market.
>
> Frank's Tuesday letter comes after the legislation has been under > attack
> as being too friendly to Wall Street. House Agriculture Chairman > Collin
> Peterson amended Frank's bill, which is slated to come to the House > floor
> next month as part of a revamp of the nation's financial regulatory > system.
> Sen. Maria Cantwell, D-Wash., said the House bill has "so many > loopholes
> that the loophole eats the rule."
>
> Frank noted there is disagreement over how broad a carve-out is > needed for
> commercial businesses, such as airlines and farmers, so they do not > have to
> send their trades through a clearinghouse that guarantees the > underlying
> transaction.
>
> Under the bill, trades among large financial players would be > required to
> go through a clearinghouse, and those transactions would go upon an
> exchange or a similar type of facility to bring more transparency to > the
> multitrillion-dollar market.
>
> But some critics say the bill's language could allow hedge funds and
> private-equity firms to be exempted from the clearing requirement.
>
> "I realize that this will not fully alleviate disagreement about the > scope
> of transactions that should be forced to go through clearinghouses, > but I
> believe in the minds of some, the fact that an exception might be > exploited
> by inadequate regulatory toughness is part of the general concern," > Frank
> wrote.
>
> Frank noted he could clear up some confusion by tightening > instructions
> given to both agencies to decide whether a trade should be exempted > from
> clearing. He added he is considering limiting the clearing-and-trading
> requirement.
>
> On another issue, Frank noted there has been concern over language > that
> would give the clearinghouse the first chance to decide if a trade > should
> be cleared. Some critics have noted that big banks that control the > market
> have an ownership stake in some of the major clearinghouses, making > it less
> likely that those counterparties would push them to be cleared. > Instead,
> those would be left to the OTC market, which is less regulated and
> transparent.
>
> Frank noted that Gensler had feared it would be too burdensome for his
> agency to initially determine whether all trades under its > jurisdiction
> should be cleared, and he preferred delegating that responsibility > to the
> clearinghouses. But Frank said he has changed his mind and wants to > give
> the regulators the power to determine whether a trade is to be > cleared.
>
> He also noted that he is facing resistance from some, including
> Agriculture Committee members, over a requirement in his bill that > would
> limit ownership in a clearinghouse by a financial firm to 20 percent.
>
> Frank said he has been told that the requirement could reduce the > number
> of clearinghouses in the near term because of the divestiture.
>
> Frank added that he would attempt to reinsert the language, originally
> sponsored by Rep. Stephen Lynch, D-Mass., when the bill comes to the > floor.
>
>
> http://www.nationaljournal.com/congressdai...091104_9069.php
>
> -----
> FINANCE: PANEL OKS BILL WITH SMALL-CAP EXEMPTION
> By Bill Swindell
>
>
> The House Financial Services Committee approved legislation today that
> permanently exempts some small businesses from having to comply with
> provisions of the 2002 Sarbanes-Oxley Act.
>
> The panel passed an underlying measure that would beef up protection > for
> securities investors by a 41-28 vote. It is part of a revamp of the
> nation's financial regulatory system in the aftermath of last year's > credit
> crisis and several massive fraud cases, and final legislation is > slated to
> be on the House floor in December.
>
> But in a key vote, the panel adopted an amendment, 37-32, that would
> exempt publicly traded companies with market capitalization of less > than
> $75 million from having to comply with Section 404 of the law.
>
> That section requires public companies to establish and maintain > internal
> controls and financial reporting procedures, which must be certified > by an
> outside accounting firm.
>
> Since enactment, the SEC has issued a series of extensions for the > small
> caps from complying with Section 404. But SEC Chairwoman Mary Schapiro
> announced in October that she would provide only one more until June.
>
> Consumer activists protested the amendment, sponsored by Reps. Scott
> Garrett, R-N.J., and John Adler, D-N.J., arguing that small caps are
> exactly the type of firms that need extra oversight to guard against > fraud.
> But moderate Democrats were under pressure from the business > community to
> push for a longer ban.
>
> Adler worked with White House Chief of Staff Emanuel to dial back an
> earlier measure he had sponsored that would have exempted companies > with
> market caps of less than $700 million from Section 404 regulations > until
> the SEC modifies its rule based on the size of the company. He > settled on
> legislation that had originally been sponsored by Garrett but has
> languished under Democratic control of the chamber.
>
> But with White House blessing, nine Democrats defected on the > amendment.
> They included Reps. Melissa Bean and Bill Foster of Illinois; Walt > Minnick
> of Idaho; Steve Driehaus of Ohio; Suzanne Kosmas of Florida; Gary > Peters of
> Michigan; Dan Maffei of New York; and Travis Childers of Mississippi.
>
> The panel also adopted, 58-12, an amendment by Garrett and Rep. > Carolyn
> Maloney, D-N.Y., that would have continued the small-cap extension > through
> June 2011. But since the Garrett-Adler language is tougher, it will
> supersede the Maloney-Garrett measure. And the panel approved, > 39-30, an
> amendment by Rep. Maxine Waters, D-Calif., that would codify the SEC's
> authority to issue rules over shareholder proxy access.
>
> The SEC this year proposed a rule to require companies in some cases > to
> include in their proxy materials the nominations for directors by
> shareholders. But some critics, especially the U.S. Chamber of > Commerce,
> question whether the agency has the right to issue rules over > corporate
> governance standards that are enacted at the state level.
>
> The underlying bill would place the same fiduciary duty on investment
> advisers as well as on broker-dealers, who are held to a lower > threshold.
> It also proposes to double the SEC's funding over the next five > years, in
> part with a new fee on investment advisers, and create an > independent study
> of securities regulation that would make recommendations.
>
>
> http://www.nationaljournal.com/congressdai...091104_7997.php
>
> -----
> DEFENSE: MULLEN: TROOP DECISION SEEN IN FEW WEEKS
> By Katherine McIntire Peters
>
>
> Adm. Mike Mullen, the nation's top military officer, said today that
> despite enormous pressure on the Army and Marine Corps to support
> operations in Iraq and Afghanistan, he does not believe the services > are
> near a "tipping point" in their ability to supply ground troops to > those
> wars.
>
> Instead, Mullen said at a Government Executive leadership breakfast > that
> service leaders are seeing a gradual increase in "dwell time" -- the > amount
> of time troops spend at home between deployments.
>
> "For units we look at in the rotation [schedule], while some have > had only
> 12 months [between deployments] most are pushing 18 months," said > Mullen,
> chairman of the Joint Chiefs of Staff.
>
> It's not clear if that trend will continue. "Obviously it will > depend on
> the demands in Afghanistan," Mullen said. President Obama has been
> considering a request for tens of thousands of more troops from his > top
> commander in Afghanistan, Army Gen. Stanley McChrystal.
>
> "I do expect the president will make a decision in the next few > weeks,"
> Mullen said.
>
> The issue is of critical importance, especially in the Army, where > many
> soldiers have had multiple combat deployments of a year or more and > there
> is growing concern about the health of the force. Service leaders > have been
> grappling with rising suicide rates and an alarming increase in the > number
> of soldiers suffering from post traumatic stress disorder.
>
> Increasing the amount of time soldiers spend at home with their > families
> between deployments is seen as a critical step in rebalancing the > Army. The
> goal is to give soldiers at least two years between combat tours.
>
> Military commanders are planning to aggressively cut troop levels in > Iraq
> in the spring, reducing the force there from about 115,000 to 50,000 > by
> next fall. While some of those troops may be sent directly to > Afghanistan,
> most will return home.
>
> Mullen said the soldiers and Marines he talks to around the world "are
> proud of what they are doing and know they can succeed. It's the best
> military I've seen in 40 years. I don't see us right now getting > near a
> tipping point." [A full transcript of the discussion with Mullen > will be
> available at www.GovernmentExecutive.com.]-- Katherine McIntire > Peters is
> the senior correspondent for Government Executive.
>
>
> http://www.nationaljournal.com/congressdai...091104_2606.php
>
> -----
> AGRICULTURE: NOMINEES SUGGEST TOUGHER LINE ON DOHA
> By Jerry Hagstrom
>
>
> Two Obama administration trade nominees pledged today to take a hard > line
> in Doha round negotiations, including on the issue of farm-subsidy
> concessions.
>
> Michael Punke, the nominee to be deputy U.S. trade representative and
> ambassador to the World Trade Organization in Geneva, told the Senate
> Finance Committee at his confirmation hearing he had heard the > "mantra"
> from senators that no deal is better than a bad deal and promised to > follow
> that philosophy.
>
> Punke had served as international tax counsel to Senate Finance > Chairman
> Max Baucus before moving to Montana. He said he observed how trade > deals
> helped move Montana goods to export markets but also cause > devastation by
> closing U.S. lumber mills.
>
> Punke also pledged to Sen. Kent Conrad, D-N.D., he would not follow > a Bush
> administration trade negotiating strategy of offering concessions on > farm
> subsidies before gaining commitments in market access.
>
> But rather than taking the language the Bush administration agreed to
> completely off the table, as some farm leaders have suggested, Punke > said
> the Obama administration would retain enough flexibility to secure
> commitments from other countries through bilateral negotiations.
>
> Meanwhile, the nominee to be chief agriculture negotiator, Islam > Siddiqui,
> addressed the criticism he has come under from groups representing > small
> farms, organic growers and environmental lobbies that he would favor
> conventional production due to his background as a Crop Life America
> executive.
>
> He pledged to promote the exportation of sustainable produce as well > as
> conventional farm products. Siddiqui added he had never made any
> disparaging remarks about organic agricultural production and is a > "true
> believer in all systems" of agricultural production.
>
> Senate Agriculture Chairwoman Blanche Lincoln, who also sits on > Finance,
> defended Siddiqui, calling his nomination "a wise one" and > announcing she
> will vote for him. Lincoln said Siddiqui has supported positions > taken by
> "the vast majority" of farmers.
>
> Michael Mundaca, the nominee for assistant Treasury secretary for tax
> policy, also testified before the panel. On the issue of tax reform, > he
> noted the United States has the second highest corporate tax rates > after
> Japan but added any changes should be made in the context of > comprehensive
> tax reform. Treasury will likely issue new rules for credit card > reporting
> by the end of November, he added.
>
>
> http://www.nationaljournal.com/congressdai...091104_7511.php
>
> -----
> HILL BRIEFS: TREASURY: DEBT CEILING LIKELY HIT IN DEC.
>
> Budget. The Treasury Department today announced the federal government
> will not hit the $12.1 trillion debt ceiling until at least the > middle of
> December, with the caveat that "the government's cash flows are > volatile,
> and forecasting a precise date is difficult." Treasury had projected > it
> would hit the ceiling in November after it scaled back a borrowing > program
> operated on behalf of the Federal Reserve. Congress is working on
> legislation to boost the ceiling, likely above the $13.1 trillion > approved
> by the House as part of the FY10 budget resolution. Democratic > leaders are
> eyeing the compromise FY10 Defense Appropriations bill as a possible
> vehicle for the measure. Senate Budget ranking member Judd Gregg > said today
> Republicans will seek to strike the provision under Senate rules that
> prohibit adding items to conference reports that were not in either > the
> House or Senate versions. The Senate will need 60 votes to waive the > rule
> and keep the debt limit provision in the defense bill. Gregg said he > would
> oppose the increase unless Senate leaders committed to cutting the > deficit,
> which topped $1.4 trillion in FY09. The Budget Committee has > scheduled a
> hearing for next week on bipartisan proposals for long-term fiscal
> stability.
>
>
> http://www.nationaljournal.com/congressdai...091104_5116.php
>
> -----
> HILL BRIEFS: FED MAINTAINS RECORD-LOW RATES
>
> Economy. The Federal Reserve kept a key interest rate at a record low
> level today in hopes of encouraging consumer spending to give the > economic
> recovery some traction, the Associated Press reported. By > maintaining its
> bank lending rate at zero to 0.25 percent, the rate used by commercial
> banks on home equity loans, certain credit cards and other consumer > loans
> is expected to stay around 3.25 percent, the lowest in decades.
>
>
> http://www.nationaljournal.com/congressdai...091104_8864.php
>
> -----
> HILL BRIEFS: U.S. ENVOY: BLEAK CLIMATE DEAL FORECAST
>
> Environment. President Obama's top negotiator on climate change told a
> House committee today that developed and developing countries remain > far
> apart on a deal to limit carbon emissions at next month's > international
> summit in Copenhagen. "Progress has been too slow," said Todd Stern, > the
> State Department's special envoy on climate change. Developing > countries
> continue to see climate change as "a problem not of their own > making" and
> worry that any deal to cap emissions might stifle economic growth. > "The
> mentality that looks at the world through those lenses will not > produce
> results," Stern told the House Foreign Affairs Committee. Still, Stern
> insisted he still believes "there is a deal to be done," when
> representatives of 192 countries convene in Denmark next month. He > said the
> administration wants more than "a roadmap for future negotiations" > but did
> not offer details on the kind of preliminary agreement it would > consider
> successful. The House passed a cap-and-trade plan earlier this year, > over
> the vocal objections of Republicans who contend it will send U.S. > energy
> prices soaring and put American businesses at a disadvantage. > Committee
> Republicans reiterated those claims at today's hearing. An American > move to
> limit emissions, without similar action by China, India and other
> developing nations, would be "nothing less than unilateral > surrender," said
> Rep. Donald Manzullo, R-Ill.
>
>
> http://www.nationaljournal.com/congressdai...091104_6075.php
>
> -----
> POLITICAL ROUNDUP: FIORINA ANNOUNCES BID AGAINST BOXER
>
> California. Former Hewlett-Packard Co. Chief Executive Carly Fiorina > said
> today she is running for the seat held by Democratic Sen. Barbara > Boxer,
> the Associated Press reported. Fiorina ended months of speculation by
> announcing her decision with an opinion piece in the Orange County
> Register. While Fiorina could pose a formidable re-election > challenge to
> Boxer, she must first survive a Republican primary against State
> Assemblyman Chuck DeVore, who has courted GOP voters feverishly over > the
> past year. "I now understand, in a very real way, that the decisions > made
> by the Senate impact every family and every business, of any size, in
> America. This is what motivates me to run for the U.S. Senate," she > wrote.
> Fiorina served as economic adviser to Sen. John McCain, R-Ariz., > during
> last year's presidential campaign. She left HP after a public > falling-out
> with board members, who fired her in 2005.
>
>
> http://www.nationaljournal.com/congressdai...091104_1439.php
>
> -----
> POLITICAL ROUNDUP: SHURTLEFF DROPS PRIMARY BID AGAINST BENNETT
>
> Utah. State Attorney General Mark Shurtleff today dropped his primary
> challenge of GOP Sen. Robert Bennett, the Salt Lake Tribune reported.
> Shurtleff, who was one of four Republicans challenging Bennett, cited
> concerns about his daughter, who suffers from depression. "This
> announcement comes with sorrow because I want to serve my country > and I do
> believe both political parties have put this nation in grave danger by
> spending so foolishly," he said in a statement. "I have chosen to take
> pause because my daughter's health is very fragile." While he said > he was
> taking a pause, Shurtleff later told a local radio show that he did > not
> plan to return to the race. Shurtleff, who was running as a > conservative,
> had been critical of Bennett's support for the first round of > financial
> bailouts. Other Republicans challenging Bennett include businesswoman
> Cherilyn Eagar, businessman James Russell Williams and Tim > Bridgewater, a
> two-time congressional candidate. State liquor commissioner Sam > Granato is
> running on the Democratic side.
>
>
> http://www.nationaljournal.com/congressdai...091104_6753.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "We had one race that we were engaged in. It was in northern New > York. It
> was a race where a Republican had held the seat since the Civil War. > And we
> won that seat."
>
> --Speaker Pelosi, explaining this morning why she thought House > leaders
> were big winners in Tuesday's elections.
>
>
> http://www.nationaljournal.com/congressdai...091104_8074.php
>

[Snuffysmith]

> POLITICAL ROUNDUP: FORMER STATE LAWMAKER EYES BID AGAINST WALZ
>
> Former GOP state Rep. Allen Quist, who ran for governor in 1994, > appears
> to be preparing for a bid for the seat held by Rep. Tim Walz, D-Minn.,
> Minneapolis Star Tribune reported.
>
> Quist said Wednesday he felt he needed to run after following three
> issues: the stimulus package, cap and trade legislation and healthcare
> reform.
>
> "I've been retired from active politics for over 10 years. I really > have
> done nothing. And I have personally been alarmed at the direction that
> Washington is taking," said Quist, a conservative. "I just am super
> concerned."
>
> Quist said if he wins he sees himself in the mold of Rep. Gil > Gutknecht,
> R-Minn., who was unseated by Walz in 2006, and the late President > Ronald
> Reagan.
>
> "Gil and I worked together very closely in the Legislature. We're very
> good friends. ... I would identify more with Gil or Reagan, I'm a > Reagan
> Republican," he said. "I'm not real good at show. I try to have a > lot of
> substance. ... I would rather tell than show."
>
>
> http://www.nationaljournal.com/congressdai...091105_2446.php
>
> -----
> POLITICAL ROUNDUP: CRIST SETS SPECIAL ELECTION DATES FOR WEXLER'S SEAT
>
> Republican Gov. Charlie Crist Wednesday set special election dates > for the
> contests to fill the seat Rep. Robert Wexler, D-Fla., will vacate in
> January, the Sun-Sentinel reported.
>
> The primary is slated for Feb. 2 and the general election is for > April 6.
>
> Wexler announced last month he was resigning his seat Jan. 3 to become
> president of Center for Middle East Peace and Economic Cooperation.
>
> Wexler has endorsed state Sen. Ted Deutch as his successor in the > heavily
> Democratic South Florida district.
>
>
> http://www.nationaljournal.com/congressdai...091105_8702.php
>
> -----
> HILL BRIEFS: HOMELAND SECURITY NOMINEE WINS SENATE CONFIRMATION
>
> The Senate late Wednesday confirmed by voice vote Tara O'Toole as
> undersecretary of the Homeland Security Department's Science and > Technology
> Directorate.
>
> Her nomination had been held up by Sen. John McCain, R-Ariz., over
> concerns about past lobbying work. But an aide to McCain said he would
> allow the nomination to go forward after she responded to questions.
>
> "Dr. O'Toole is assuming her role at a critical time, as the H1N1 flu
> pandemic is spreading across the nation at an alarming rate," Senate
> Homeland Security and Governmental Affairs Chairman Joseph Lieberman > said
> in a statement. "Dr. O'Toole brings a remarkable breadth of > experience to
> this job that is so crucial to our nation's security. She is an > inspired
> choice and I congratulate her on her confirmation."
>
> On Tuesday, Senate Majority Leader Reid suggested that the hold up on
> O'Toole's nomination, for a job which includes bioterrorism > preparation,
> endangers Americans.
>
> On other nominations, Reid and Senate aides said the Senate is > expected to
> vote on the confirmation of David Hamilton of Indiana to the U.S. > Court of
> Appeals for the 7th Circuit, which has faced a hold by Sen. James > Inhofe,
> R-Okla., and Christopher Schroeder as assistant attorney general of > the
> Justice Department's Office of Legal Policy, whose confirmation has > been
> held up by Senate Judiciary ranking member Jeff Sessions.
>
>
> http://www.nationaljournal.com/congressdai...091105_7810.php
>
> -----
> HILL BRIEFS: BACHUS AND ISSA DISCOURAGE ANY CALLS FOR FHA BAILOUT
>
> Two key House Republicans said the Obama administration Wednesday that
> Congress does not have the appetite for a bailout of the financially
> strapped Federal Housing Administration, Reuters reported.
>
> "If not addressed promptly, problems at the FHA may result in yet > another
> massive taxpayer-funded bailout that this country cannot afford and > which
> the American people will not accept," wrote House Financial Services
> ranking member Spencer Bachus and House Oversight and Government > Reform
> ranking member Darrell Issa in a letter to HUD Secretary Donovan.
>
> The FHA announced in September that its capital reserve ratio is > expected
> to fall below the congressionally mandated 2 percent this month. The > agency
> had planned to make public an independent actuarial study of its > capital
> reserve levels Wednesday, but HUD officials postponed the release > after the
> actuary could not verify its accuracy.
>
> Bachus and Issa asked Donovan to provide proof that FHA would not > need a
> bailout and outline what the administration plans to do to boost FHA's
> reserve fund.
>
>
> http://www.nationaljournal.com/congressdai...091105_9158.php
>
> -----
> HILL BRIEFS: STABENOW CLIMATE BILL SEEKS INDUSTRY-FARM PARTNERSHIPS
>
> Sen. Debbie Stabenow, D-Mich., introduced legislation Wednesday to > create
> partnerships between manufacturers, utilities, farmers and foresters > on
> projects for capturing and storing carbon.
>
> The bill "will encourage and reward conservation efforts by farmers > and
> landowners while at the same time helping manufacturers make > investments in
> advanced technology and jobs here at home," Stabenow said in a > statement.
>
> Roger Johnson, president of the National Farmers Union, praised the
> measure. "This is a significant and positive step forward," he said. > "NFU
> strongly believes a legislative solution, rather than EPA > regulation, is
> the best means to address climate change."
>
> Stabenow said she is still lining up co-sponsors, but so far Senate
> Finance Chairman Max Baucus and Democratic Sens. Amy Klobuchar of
> Minnesota, Sherrod Brown of Ohio, Tom Harkin of Iowa, Mark Begich of > Alaska
> and Jeanne Shaheen of New Hampshire have signed on.
>
>
> http://www.nationaljournal.com/congressdai...091105_3763.php
>
> -----
> HILL BRIEFS: MANY 'CLUNKERS' DEALS WERE MILEAGE LEMONS
>
> The most common deals under the government's $3 billion "cash for
> clunkers" program replaced old Ford or Chevrolet pickups with new > ones that
> got only marginally better gas mileage, according to an analysis of > new
> federal data by the Associated Press.
>
> The single most common swap -- which occurred more than 8,200 times --
> involved Ford F150 pickup owners who took advantage of a government > rebate
> to trade their old trucks for new Ford F150s. They were 17 times more
> likely to buy a new F150 than, say, a Toyota Prius.
>
> The fuel economy for the new trucks ranged from 15 miles per gallon > to 17
> mpg based on engine size and other factors, an improvement of just 1 > mpg to
> 3 mpg over the clunkers.
>
> Owners of thousands more Chevrolet and Dodge pickups bought new > Silverado
> and Ram trucks, also with only barely improved mileage in the middle > teens,
> according to AP's analysis of sales of $15.2 billion worth of > vehicles at
> nearly 19,000 car dealerships in every state.
>
>
> http://www.nationaljournal.com/congressdai...091105_6155.php
>
> -----
> HILL BRIEFS: RAISE THE FEDERAL GAS TAX, AUTO EXECS SAY AT SUMMIT
>
> Auto executives speaking at a forum in Detroit this week said the > best way
> to get more fuel-efficient vehicles on the road is to sharply raise > federal
> gasoline taxes.
>
> Gradually raising taxes to the point where fuel costs $4 to $5 per > gallon
> will do more to stimulate demand for vehicles like the Chevy Volt > plug-in
> hybrid than any other policy initiatives, Mike Jackson, chief > executive of
> vehicle retailer AutoNation Inc., said during the Reuters Auto Summit.
>
> "If we migrate slowly over years to $4 or $5 a gallon, everybody will
> adjust, everybody will manage. It's not a problem," Jackson said, > according
> to Reuters.
>
> Others called for even bigger increases in gasoline taxes.
>
> "In the United States, we're afraid to touch the fuel price," said Tim
> Leuliette, chief executive of parts supplier Dura Automotive. "We've > got to
> continue to raise taxes in the United States so that, by the end of > the
> next decade, gas is about $8 a gallon in today's terms."
>
>
> http://www.nationaljournal.com/congressdai...091105_2035.php
>
> -----
> MARKUP REPORTS: SENATE BILL WOULD DISCOURAGE INTELLIGENCE
> OVERCLASSIFICATION
> By Terry Kivlan
>
>
> The Senate Homeland Security and Governmental Affairs Committee > moved a
> bill Wednesday intended to deter the excessive classification of
> intelligence information.
>
> In general, the bill, which cleared on a voice vote without > discussion,
> would require the Department of Homeland Security to develop > strategies to
> prevent excessive classification of information and to improve the > access
> of state and local law enforcement authorities to agency documents.
>
> The bill would establish stringent new procedures for labeling of
> information as too secret for dissemination and require the > department to
> prepare unclassified versions of intelligence reports likely to be > useful
> to state and local authorities.
>
> The bill cleared the House overwhelmingly earlier this year.
>
>
> http://www.nationaljournal.com/congressdai...091105_2511.php
>
> -----
> MARKUP REPORTS: TECHNOLOGY SUBCOMMITTEE CLEARS CYBERSECURITY BILL
> By Elaine S. Povich
>
>
> The House Science Technology Subcommittee easily approved a bill > Wednesday
> designed to streamline and strengthen government oversight of the > nation's
> electronic infrastructure, including computer and telecommunications
> networks.
>
> The bill, currently a committee print, was drafted to meet a need > for more
> coordinated oversight and regulation of security issues on the > Internet. It
> passed on a voice vote with no opposition. Of particular importance,
> committee members said, is streamlining cyberspace security > standards to
> keep information safe from computer hackers.
>
> "The convergence of telecommunication, Internet, and video devices
> requires a corresponding convergence in cybersecurity technical > standards
> development," said Science Technology Subcommittee Chairman David Wu,
> D-Ore. "A coordinated policy will ensure that these representatives > operate
> with the overarching need of the U.S. infrastructure in mind."
>
> At a hearing a few weeks ago, witnesses suggested that the director > of the
> National Institute of Standards and Technology be the coordinator, > and the
> legislation reflects that sentiment.
>
> Technology Subcommittee ranking member Adrian Smith, R-Neb., also
> supported the bill and praised Wu's cooperative spirit in drafting > it. He
> said the bill calls for coordination between the United States and > other
> countries, improved dissemination of "best practices" in > cybersecurity, and
> research into management of identity issues -- with an eye toward
> preventing identity theft.
>
>
> http://www.nationaljournal.com/congressdai...091105_3792.php
>

[Snuffysmith]

> CongressDaily AM for Thursday, Nov. 5, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: SURGEONS THREATEN SUPPORT FOR REFORM, BREAK FROM PACK
> By Anna Edney
>
>
> Surgeons are becoming more and more vocal as they break from the > physician
> pack in their protest of Democratic healthcare proposals, sending > Senate
> leaders a warning letter Wednesday and aiming to stir the pot at this
> weekend's American Medical Association meeting in Houston.
>
> The coordinated push Wednesday by the American College of Surgeons > and 20
> other surgeon groups to caution Senate leaders that some overhaul
> provisions threaten their support comes as the AMA is set to meet in
> Houston, potentially during the same time the House is voting on its
> overhaul.
>
> Six surgical groups, including the American Association of > Neurological
> Surgeons, the American Society of General Surgeons and the American > Academy
> of Facial Plastic and Reconstructive Surgery, plan during AMA's > conference
> to force a debate on AMA's original support for the House bill.
>
> The groups want AMA to oppose any overhaul that includes a public > option,
> a Medicare cost-cutting commission or a short-term patch to avoid > physician
> payment cuts set for next year rather than a permanent fix.
>
> The House bill includes a public option, while the Senate bill is > expected
> to include one, as well as a provision creating the Medicare > commission.
>
> Other resolutions call for the opposite, asking AMA to continue to > support
> the House bill.
>
> "Many physician organizations have formally supported health reform
> proposals; others have different opinions," AMA President James Rohack
> said. "This shows us that physicians are engaged and passionate about
> health reform, and that's a good thing."
>
> AMA endorsed House Democrats' overhaul bill in July and is > evaluating its
> position now that the bill is in its final form, an association source
> said.
>
> The American College of Surgeons and 20 other surgical groups wrote > Senate
> Majority Leader Reid Wednesday demanding that he not include a > handful of
> major provisions in the Finance overhaul bill in the final > legislation he
> is crafting.
>
> "Despite our deep desire to pass reform this year, if the Senate > chooses
> to ignore our stated concerns, we will have no other choice than to > oppose
> the bill," Brent Eastman, chairman of the American College of > Surgeons'
> board of regents said.
>
> Surgeons have concerns with a Medicare cost-cutting commission that > would
> leave federal payment decisions largely in the hands of an unelected > group
> of experts and Medicare payment cuts the bill is expected to impose on
> surgeons to help increase reimbursement for primary physicians, > among other
> provisions.
>
> Eastman said including those provisions, including one that requires
> physician participation in a quality reporting initiative "will make > an
> already flawed system worse." Physicians claim the reporting > initiative
> suffers from administrative problems that place unnecessary burden > on the
> medical community to keep up with the requirements.
>
> AMA expressed similar concerns to Senate Finance Chairman Max Baucus > when
> Finance was debating its overhaul bill, but did not go as far as to
> threaten opposition.
>
> Senate Democratic leadership attempted last month to bring > physicians on
> board with the overhaul by bringing up legislation to repeal the > formula
> that causes annual Medicare physician payment cuts, including a 21 > percent
> reimbursement reduction set to take effect next year. Leaders could > not
> garner the 60 votes necessary to pass the $245 billion measure.
>
> The American College of Surgeons and the American Osteopathic > Association,
> which also has concerns similar to surgeons on the Senate Finance > bill,
> lined up Wednesday behind the House overhaul effort that chamber is > looking
> to pass the same time as the permanent physician fix. The House is > set to
> vote Saturday on the overhaul.
>
> The House still could push back a vote on the physician fix, a House
> Democratic source said Wednesday.
>
> "[I]t is impossible to achieve meaningful health system reforms
> independent of establishing long-term stability in physician payment
> methodologies," Larry Wickless, president of the osteopathic > association
> wrote.
>
> The House originally included the physician payment fix in its > overhaul
> bill, but removed it to bring down the final cost. "We're perceiving > them
> as a package, but whether it will go before or after, I don't know," > House
> Energy and Commerce Health Subcommittee Chairman Frank Pallone, D-> N.J.,
> said.
>
> CBO determined Wednesday the House's physician payment fix will cost > $210
> billion over 10 years. The cost came down from CBO's previous $245 > billion
> estimate in part because the Obama administration removed the cost of
> physician-administered drugs from the formula.
>
>
> http://www.nationaljournal.com/congressdai...091105_2448.php
>
> -----
> FINANCE: SHELBY IS NOT ON BOARD DODD'S TIMELINE FOR OVERHAUL
> By Bill Swindell and Dan Friedman
>
>
> Senate Banking Chairman Christopher Dodd is planning to release his > draft
> for revamping the financial regulatory system on Monday without the > support
> of Banking ranking member Richard Shelby, who is complaining that > Dodd is
> getting pressure from the White House and liberals to move ahead > without a
> bipartisan consensus.
>
> Shelby said Wednesday that the issues surrounding the overhaul are > "too
> complex" for the economy to rush through on Dodd's timeline. The > chairman
> is intending to at least have a hearing on the discussion draft > during the
> week of Nov. 16 and to mark up the bill after the Thanksgiving recess.
>
> The opposition from Shelby is significant because the two have
> traditionally worked together on financial services legislation, > such as
> bills to bring greater oversight to Fannie Mae and Freddie Mac and to
> revamp the flood insurance program, ensuring that those bills could > not be
> filibustered and would receive bipartisan votes.
>
> Dodd can move the bill out of his committee given its 13-10 Democratic
> advantage if he wants to at least show movement. Treasury officials > are
> pushing for quick action over fears that as the nation's banking > crisis
> recedes, they will lose momentum for changes needed to prevent another
> collapse.
>
> Dodd's measure is likely to mirror bills that have been put forth by > House
> Financial Services Chairman Barney Frank. One notable difference is > that
> Dodd will call for greater consolidation among banking regulators > than the
> Obama administration or Frank has proposed by merging the Office of > the
> Comptroller of the Currency with the Office of Thrift Supervision.
>
> Dodd wants to further consolidate by likely merging the bank > supervision
> duties of the Federal Reserve -- which has jurisdiction over large > bank
> holding companies and state-chartered banks -- and the FDIC, which has
> oversight over most state-chartered banks, into the new agency.
>
> Frank argues the measure will not survive because of the resistance > from
> small banks. Both Dodd and Frank support a proposed Consumer Financial
> Protection Agency that would take consumer protection duties away from
> federal bank regulators and transfer them to the proposed agency, with
> additional oversight for payday lenders, check-cashing outlets and
> remittance providers. The agency would not have oversight of > insurance and
> securities.
>
> Shelby has opposed CFPA inclusion in the bill, calling it a "dangerous
> thing." When asked if its inclusion was a dealbreaker in > negotiations, he
> replied: "It's not a dealmaker." Shelby has signaled that a top > priority
> for him is reining in the Fed, especially its powers to conduct > emergency
> lending, which has resulted in its balance sheet swelling to more > than $2
> trillion. Shelby was an instrumental voice in encouraging Dodd to > chuck an
> administration proposal for the central bank to be the top systemic-> risk
> regulator. Instead, both chambers will create a council of > regulators to
> monitor firms too big to fail.
>
> Shelby added that he was supportive of the idea suggested by Rep. Paul
> Kanjorski, D-Pa., that would give regulators the authority to break > up big
> banks and other large firms whose collapse could threaten financial
> markets, such as was the case with American International Group and > Lehman
> Brothers. But Shelby held off on endorsing any language.
>
>
> http://www.nationaljournal.com/congressdai...091105_7709.php
>
> -----
> ENVIRONMENT: SWING SENATORS PUSH FOR BOXER TO CAVE ON GOP DEMANDS
> By Darren Goode
>
>
> Four GOP Senators who are potential supporters of cap-and-trade
> legislation Wednesday joined the chorus from their party in pushing
> Environment and Public Works Chairwoman Barbara Boxer to give in to > her
> panel Republicans' demands for more EPA analysis before the panel > marks up
> a bill.
>
> Boxer's panel is proceeding with a markup "without a clear picture > of the
> bill's impacts on our economy," Sens. Lindsey Graham, R-S.C., Olympia
> Snowe, R-Maine, Judd Gregg, R-N.H., and Susan Collins, R-Maine, > wrote EPA
> Administrator Jackson. "We share the concerns of our colleagues and
> encourage you to expeditiously provide the information" requested by > the
> Republicans, they wrote. "We cannot support legislation without this
> information."
>
> They added, "We are committed to an open process in which > information is
> readily available to our colleagues and the public." The letter > follows a
> similar request sent this week to Boxer from the ranking Republicans > on all
> six panels with jurisdiction over a climate and energy bill.
>
> Senate Majority Leader Reid has agreed to ask EPA for a five-week > analysis
> of any broader climate bill before it hits the floor, Boxer said, > possibly
> negating any need for her to adhere to the request of Republicans > for more
> agency work before she reports out a bill.
>
> She has continued to set up a confrontation with committee Republicans
> that could involve her trumping their objections to taking up a bill > and
> potentially amending it before it is reported out of the panel.
>
> Republicans boycotted a 45-minute briefing Wednesday afternoon given > by
> four Democratic aides on the committee and did not show up to one > Tuesday
> by a key EPA official on the bill's cost.
>
> "I think the record we're building here is very, very solid for our
> action," Boxer said. "The reason for not showing up is totally without
> merit."
>
> Boxer is reconvening the panel this morning for a third day this > week of
> meetings on the bill that have only featured speeches by panelists. > There
> was speculation off Capitol Hill that Reid has asked Boxer to wait > until
> Tuesday before she moves to mark up a bill over Republican > objections, but
> that has not been verified by aides to either senator.
>
> While partisan rancor has so far sidetracked consideration of climate
> legislation in Boxer's panel, it is unclear whether that will affect > the
> broader Senate debate.
>
> "I mean, presumably, the cliché answer would be 'yes' and the real > answer
> is 'I don't know,'" Senate Commerce Chairman John (Jay) Rockefeller > said.
>
> The West Virginia Democrat -- whose panel has partial jurisdiction > on a
> bill and is a potential swing vote -- does not believe the full > Senate will
> take up a climate bill this year because of the healthcare debate > and said
> there are staff rumblings about putting off debate until after the > 2010
> midterm elections.
>
> "Maybe it makes some sense -- you don't do it in 2010 because > everybody's
> up for election and all that kind of stuff," said Rockefeller, who > added he
> would like to debate climate change next year.
>
> "There's no way we can afford to do that," said Senate Foreign > Relations
> Chairman John Kerry said of delaying the climate debate until 2011. "I
> don't know what an election has to do with the temperature of the > Earth.
> ... This is not an issue that should be dominated by politics."
>
> "If you get into September of next year or something, you know, > that's a
> different story," Kerry added. But he thinks Congress will act > sooner and
> Boxer's panel will approve a bill by the time United Nations climate > change
> talks start in Copenhagen in December.
>
> At the same time, senators in both parties say there is an > unprecedented
> level of partisanship evident in this year's stimulus, healthcare > and now
> climate debate. "The polarization in this Congress is the worst that > I've
> ever seen it," Collins said. "And clearly is hampering our ability > to sit
> down and come up with common sense solutions" to a variety of > problems.
>
> Kerry, Graham and Sen. Joseph Lieberman, D-Conn., are leading an > effort to
> try to get around partisan roadblocks in the full Senate. "What I'm > trying
> to do is create a new pathway forward that doesn't have baggage," > Graham
> said.
>
> At the same time, Kerry and Graham have taken different sides in the
> standoff on Boxer's panel. "Sen. Boxer, we think, is doing an > extraordinary
> job in her committee," Kerry said. "She needs to do what she needs > to do as
> the chair of her own committee, and I support that," Kerry said.
>
> Kerry, Graham and Lieberman met with Energy Secretary Chu, Interior
> Secretary Salazar and White House climate czar Carol Browner to > gauge the
> administration's limits on adding help for nuclear energy, domestic > oil and
> gas production and other language to a bill. It is part of their > effort to
> lead the development of a bill with input from the White House and > the six
> relevant committees that Reid will need to package together.
>
> Graham said it is unlikely to include drilling in the Arctic National
> Wildlife Refuge, which has sharply split the two parties. "I don't > think
> so," he said. "You know, I'm somewhere between Inhofe and Al Gore on > this
> whole issue, so I know there'll be political bridges too far," he > said,
> referring to Environment and Public Works ranking member James Inhofe.
>
> Kerry declined to say whether they would go further on offshore > drilling
> than a bill passed this year with support in both parties in the > Senate
> Energy and Natural Resources Committee that Reid would presumably > combine
> with a cap-and-trade bill. "We're just at the beginning stage here," > he
> said.
>
> Kerry said at a Wednesday morning event hosted by National Journal > that
> offshore drilling should occur "where feasible and where you don't > run into
> inappropriate risks" with ocean current and oil spills and other > potential
> hazards. "But our technology is much better," he said, echoing a > rallying
> cry of many Republicans who have been pushing in recent years for > expanding
> drilling in federal waters. In addition, "It absolutely pays for the > United
> States to be doing that in our waters" instead of importing more > foreign
> oil, Kerry said.
>
> On nuclear energy, Kerry said expediting permitting of reactors is
> necessary. "I think it's inexcusable ... for the private sector to > have to
> wait eight to 10 years for the government to do its job," Kerry > said. He
> also said senators are "open to the idea that there may be some loan
> possibilities" to incentivize new reactors "but commensurate with > certain
> other responsibilities" in waste management and nuclear > proliferation. "The
> responsibility goes on both sides," Kerry said.
>
>
> http://www.nationaljournal.com/congressdai...091105_4906.php
>
> -----
> TAXES: HEALTH REFORM REVENUE RAISERS WILL PROVIDE MUCH FODDER
> By Peter Cohn
>
>
> House Democrats might make it to 218 votes when the $1 trillion > healthcare
> measure comes to a vote this weekend. But one thing is certain: Each > member
> casting a vote for it will have to defend the bill's roughly $730 > billion
> in tax increases.
>
> Those revenues go toward ensuring health coverage for 96 percent of > the
> population by 2019, cutting the number of uninsured by 36 million. Few
> Democrats want to be on the other side of that equation, but it > becomes
> tougher to explain considering where the money comes from.
>
> Republicans say House Democrats are walking themselves right off a
> political cliff. "Especially after [Tuesday]'s elections, the > country's
> changing, and a number of issues are changing right under their > feet," said
> Rep. Kevin Brady, R-Texas. "So I'd be leery, especially if the > Senate's not
> taking it up. ... That is a long time to be hanging out there."
>
> The biggest revenue-raiser is a 5.4 percent surtax on adjusted gross
> income above $500,000 for individuals and $1 million for couples > filing
> jointly. That raises $460.5 billion.
>
> Then there are $168 billion in penalties on individuals who don't buy
> health insurance and on employers that don't provide coverage. Other > taxes
> are levied, including on sales of medical devices and limits on
> tax-advantaged contributions to flexible spending accounts.
>
> A number of House Democrats, mainly freshmen, petitioned House > leaders to
> raise the surtax income thresholds from an earlier $280,000 for
> individuals, and $350,000 for couples. That was enough to win support
> Wednesday from two previous "no" votes, Reps. Jared Polis of > Colorado and
> Dina Titus of Nevada. Other anti-surtax Democrats are not so sure. > Rep.
> Michael McMahon, D-N.Y., said he remains undecided.
>
> He noted that the surtax is not indexed for inflation, as the previous
> iteration was. "So the people that it hits will continue to grow, and
> that's true in my district and the city of New York as a whole," said
> McMahon, who represents Staten Island and a part of Brooklyn.
>
> He said effective tax rates could top 50 percent for some of his
> constituents, if you add the surtax on top of the expiration of the > 2001
> and 2003 tax cuts at the end of next year and state and local taxes. > "While
> no time is a good time, this is certainly not a good time to be > raising
> taxes on anyone," McMahon said. "So this is a real concern for me."
>
> One reason Democrats did not index the income thresholds for > inflation was
> to help revenues keep up with rising medical costs. CBO estimated that
> under the bill, Medicare spending growth would slow from 8 percent > to about
> 6 percent a year over the next two decades, while the surtax would > bring in
> a little more than 5 percent in added revenues each year. "All > you're doing
> is you're putting more gas in the engine; you're not making it fuel
> efficient," McMahon said.
>
> Rep. Artur Davis, D-Ala., remains in the "no" column on the House > bill. He
> said the Senate Finance Committee's excise tax on insurers "while not
> popular in some circles, does have the effect of pushing savings and > does
> rein in private sector costs."
>
> He added that the "pay-or-play" mandate will prove an incentive for
> companies to walk away from covering employees since it will be more
> cost-effective to simply pay the penalty, equal to up to 8 percent > of their
> payroll. "I have no idea why that provision is in the House bill," > Davis
> said.
>
> Smaller employers with payrolls of $500,000 would be exempt, while > those
> with up to $750,000 would face a lower penalty. But those amounts > are not
> indexed for inflation either, meaning more small businesses could > have to
> pay the penalty each year. "That isn't widely known back home," > Brady said.
> "It got their attention."
>
> Groups like the National Federation of Independent Business have > rapped
> tax hikes in the bill and lack of indexing "certainly is a new > problem,"
> said NFIB tax counsel Bill Rys.
>
> "We've seen this horror film before: The Alternative Minimum Tax, > another
> Frankenstein's monster of the tax code, also wasn't indexed for > inflation
> and now affects millions of middle-class families with incomes below > the
> Democrats' surtax," read talking points from House Minority Leader
> Boehner's office.
>
> The nonpartisan Tax Policy Center found that while the surtax would > hit
> about 400,000 households in 2011, that figure would double by 2019,
> although that would be fewer than 1 percent of taxpayers. Of those > meeting
> the income thresholds who report business income, it would mostly > hit hedge
> fund managers, lawyers and others who are not necessarily small > business
> owners in the traditional sense, said Howard Gleckman, a senior > research
> associate at the center. "This isn't your average guy who runs a > corner dry
> cleaners," he said.
>
> A House Democratic aide extrapolated that a family earning $80,000 > would
> not get hit with the surtax until 2144, using CBO assumptions about > future
> inflation rates. "As a matter of historical perspective, it would be > like
> asking Ulysses S. Grant [who was president in 1874] to talk about the
> impact of legislation that he signed into law on individuals living > today,"
> the aide said.
>
> Democrats say as of now, 19 million households reporting business > income
> of some form would not be affected. According to the Joint Committee > on
> Taxation, only 231,000 households reporting 2006 business income > would be
> hit with the surtax. Individuals and households meeting the surtax > income
> thresholds reported about $255 billion in business income, and > nearly $1.3
> trillion in total income.
>
> Rys said the surtax would hit the most successful small companies > that are
> "doing fairly well and potentially adding jobs and growing their
> businesses." The tax would put the top federal rate for those small
> business owners at 45 percent -- up from the 35 percent top rate
> corporations pay, which are mainly much bigger firms, Rys noted.
>
> "Small businesses create 70 percent of new jobs," said Senate Finance
> ranking member Charles Grassley. "The economy is struggling enough > without
> these huge tax increases on those who create jobs."
>
>
> http://www.nationaljournal.com/congressdai...091105_9441.php
>
> -----
> APPROPRIATIONS: GATES-HOLDER LETTER MIGHT PROVIDE COVER FOR SENATORS
> By Humberto Sanchez
>
>
> A proposed amendment to the $64.9 billion, FY10 Commerce-Justice-> Science
> Appropriations bill that would prevent C-J-S funds from being used > to try
> perpetrators of the Sept. 11, 2001, terrorist attacks in federal > courts is
> opposed by high-level Cabinet members from both sides of the aisle, > which
> might provide the political cover needed for senators to vote it down.
>
> "Everyone I have talked to is pretty confident that it will go down,"
> Heather Hurlburt, executive director of the National Security > Network, said
> Wednesday.
>
> The Senate is set to vote on cloture on the C-J-S bill today and could
> also finish work on the measure today. Under an agreement announced
> Wednesday night by Senate Majority Whip Durbin, after completing the > C-J-S
> bill, the Senate will take up the FY10 Military Construction-VA
> Appropriations bill. Democrats intend to pass that bill before the > Senate
> recesses for Veterans Day next Wednesday, a Senate leadership aide > said.
>
> The Senate began considering C-J-S Oct. 5, but set it aside after > failing
> to get 60 votes to cut off debate on the bill Oct. 13.
>
> Hurlburt cited a letter sent last week to Senate Majority Leader > Reid and
> Minority Leader McConnell from Defense Secretary Gates, a holdover > from the
> administration of President George W. Bush, and Attorney General > Holder
> opposing the amendment, offered by Sen. Lindsey Graham, R-S.C.
>
> The NSN executive director said the letter will likely provide the
> political cover for Democrats from conservative states to oppose it, > as
> well as some Republicans.
>
> "When you have the Defense secretary ask you not to do something, > that is
> pretty serious," Hurlburt said.
>
> In the letter, Gates and Holder explained that the Defense and Justice
> departments are evaluating the cases of accused terrorists at the
> military's Guantanamo Bay, Cuba, detention facility to determine > whether
> they should be prosecuted in federal court or by military commission.
>
> "The exercise of prosecutorial discretion has always been and should
> remain an Executive Branch function," the letter said. "We must be > in a
> position to use every lawful instrument of national power -- > including both
> courts and military commissions -- to ensure that terrorists are > brought to
> justice and can no longer threaten American lives."
>
> Hurlburt said the Obama administration this year made it relatively > clear
> they want to try as many cases in civilian court as possible but > retain the
> military commission as an option.
>
> "The reason to have military commissions is that you have these > cases from
> Guantanamo, which the Bush administration mishandled, making it much > harder
> to win what otherwise would have been some pretty easy wins in > civilian
> court," Hurlburt said. "So what the administration thinks is that it > may
> need the military commissions for what I'll call the Guantanamo > hangover."
>
> Her comments came after the NSN Wednesday put out a release opposing > the
> Graham amendment.
>
> "America's justice system has a long history of successfully holding > and
> trying terrorist suspects. From the mastermind of the [1993] World > Trade
> Center attack to Zacarias Moussaoui -- the "20th Hijacker" -- to the > Shoe
> Bomber Richard Reid, our prison and court systems have a long track > record
> of keeping our communities safe while bringing dangerous terrorists to
> justice," NSN said. "The Obama administration is applying the same > record
> of success to detainees held at Guantanamo."
>
> Senate Republicans believe it will be difficult for Democrats who
> previously have voted against bringing Guantanamo detainees to U.S. > soil to
> oppose the Graham amendment.
>
> They also plan to argue, when the amendment comes up for debate, that
> federal courts are not the proper venue to try accused terrorists.
>
> For example, during the federal trial of Ramzi Yousef, the > mastermind of
> the 1993 World Trade Center bombing, an apparently innocuous bit of
> testimony in a public courtroom about delivery of a cell phone > battery was
> enough to tip off terrorists still at large that one of their > communication
> links, which the government had been monitoring, had been > compromised, and
> resulted in the loss of valuable intelligence, according to former > Attorney
> General Michael Mukasey.
>
> "I feel passionately [about] this idea. And there are too many press
> reports for me to ignore that they are going to take Khalid Shaikh > Mohammed
> into federal court and give him the same constitutional rights as an
> American citizen," Graham said, adding, "Judge Mukasey has written > that
> this is not the venue. They should be in military commissions. it's a
> transparent system, a quality justice system ... but it does allow > you some
> ability to protect classified information."
>
>
> http://www.nationaljournal.com/congressdai...091105_5214.php
>
> -----
> DEFENSE: LOCKHEED MARTIN CHIEF SEES LEANER BUDGETS, NEW PRIORITIES
> By Megan Scully
>
>
> After taking several high-profile hits in the Pentagon's FY10 budget,
> Lockheed Martin Corp.'s chief executive said Wednesday that the firm > is
> looking for new business opportunities to broaden the aerospace > giant's
> portfolio in an era of shifting defense priorities.
>
> Despite the Obama administration's decisions to end F-22 Raptor > fighter
> jet production and kill other lucrative Lockheed Martin programs, > such as
> the VH-71 presidential helicopter, Bob Stevens emphasized that the
> long-term outlook for his 140,000-employee company is positive.
>
> "You see an inflection point in the business where the balance of > 2009 --
> and probably '10 and '11 -- are flat-ish with probably some > rebalancing of
> our portfolio because there won't be more F-22s," Stevens said > during a
> roundtable interview with National Journal Group reporters and > editors.
> "The long-term trajectory, to me, looks very healthy."
>
> Indeed, defense programs such as the F-35 Joint Strike Fighter, > missile
> defense and classified satellites -- the bread and butter of Lockheed
> Martin's portfolio -- still are expected to claim large portions of > the
> U.S. defense budget, even as growth in procurement accounts slows or > even
> decreases over the next several years.
>
> But Stevens acknowledged that the Bethesda, Md.-based firm will have > to
> continue to grow its business in emerging areas such as energy > security and
> cybersecurity to remain competitive.
>
> Stevens pointed to the firm's decisions in recent years to compete > for the
> Joint Lightweight Tactical Vehicle -- successor to the venerable > Humvee --
> and the Navy's Littoral Combat Ship as key moves to diversify the > company's
> Air Force-heavy portfolio to reflect changing spending priorities.
>
> In addition, Lockheed has been moving into other areas, such as > providing
> more efficient logistics and sustainment solutions for the military. > It may
> even develop information technologies for healthcare organizations to
> manage information, Stevens said.
>
> As the firm adjusts its business plans, Stevens said Lockheed Martin > is
> positioning itself to respond to Defense Secretary Gates' call for > industry
> to pursue so-called "75 percent solutions" that are less expensive > and can
> be delivered on time rather than focusing primarily on "exquisite"
> technologies with considerable costs and development risks.
>
> "We've started to rebalance our business to focus a lot on the > operational
> environment and producing the 75 percent solution and having a higher
> confidence in delivering on time," he said, adding that he recently
> reinstituted the position of chief operating officer to handle this.
>
> But Stevens indicated the defense industry can only do so much to keep
> costs down on programs. Companies, he said, need stable requirements > and
> continuous funding streams to help keep escalating costs at bay.
>
> "Cost growth on programs is a function really of the same handful of
> things, and it's been that way probably since someone equipped George
> Washington with a musket," he said.
>
>
> http://www.nationaljournal.com/congressdai...091105_1772.php
>
> -----
> SENATE: BOTH SIDES EXPECT MORE PARTISAN GRIDLOCK IN ELECTION YEAR
> By Dan Friedman
>
>
> After 10 months in which Senate leaders touted success reaching > agreements
> to vote on amendments despite broader disputes, the Senate has hit a > new
> level of partisan gridlock that both sides warn could become the > norm next
> year.
>
> Unlike 2008, when Senate Majority Leader Reid used a procedural tactic
> called filling the tree to block unwanted Republican amendments more > than
> 20 times, he has done so just a few times this year. Despite constant
> sniping, Reid and Minority Leader McConnell have, with rare exception,
> reached agreement on lists of amendments that will get votes, deals > that
> both sides attribute to Democrats' ability this year to win those > votes and
> a desire to cooperate where possible.
>
> But that quiet accommodation might be fractured. For weeks, Reid and > top
> Democrats have stepped up rhetorical attacks on what they call GOP
> obstruction. Reid, for example, has repeatedly noted Republicans have
> blocked Democratic nominations 85 times this year.
>
> Senate Democratic Steering Committee Chairwoman Debbie Stabenow of
> Michigan even cited the opposition in a Democratic Senatorial Campaign
> Committee fundraising letter last week.
>
> And Democrats say Republicans are increasingly objecting to motions to
> proceed to bills, as they did on the unemployment bill, and as > McConnell
> has said they will on healthcare overhaul legislation.
>
> After a lengthy dispute over amendments, Reid filled the tree last > week on
> a bill extending unemployment benefits. Without an agreement, the > bill,
> which ultimately passed 98-0, tied up the Senate as Republicans > forced the
> scheduling of multiple procedural votes. While Reid blamed > Republicans for
> pushing unrelated amendments, Republicans noted he has generally > agreed to
> limited numbers of such votes this year.
>
> "Until we got to the UI bill, we were working pretty good on that this
> year," McConnell said.
>
> McConnell aides argued Reid's move aimed primarily at blocking an
> amendment to end the Troubled Asset Relief Program, a provision they > say
> many Democrats would have been hard-pressed to oppose. And staffers > on both
> sides said Democrats, who held frequent press events to bash GOP > opposition
> to passing UI without an amendments deal, saw a clear political > benefit in
> highlighting the dispute.
>
> But both sides also suggested the lack of agreement on amendments on > the
> bill could set the tone headed into 2010, when votes on so-called > message
> amendments will have added impact in an election year.
>
> "I think that getting into an election year it is probably going to be
> more pronounced that they don't want to vote on amendments that put > their
> members in difficult political situations, and so they'll try as > best they
> can to prevent any votes from occurring and do that," Republican > Policy
> Committee Chairman John Thune of South Dakota said.
>
> A Reid spokeswoman denied he will more frequently block GOP amendments
> next year, saying his actions were in response to Republican > filibusters.
>
>
> http://www.nationaljournal.com/congressdai...091105_8515.php
>
> -----
> TAXES: SENATE APPROVES EXTENSION OF JOBLESS BENEFITS
> By Peter Cohn
>
>
> The Senate Wednesday approved a $24 billion package of unemployment
> insurance benefits and tax breaks for homebuyers and cash-strapped
> businesses on a 98-0 vote.
>
> The agreement to bring up the measure for a final vote ended weeks of
> stalemate on the underlying bill, which would extend jobless aid for > 14
> weeks in all 50 states, with an additional six weeks in 27 high
> unemployment states.
>
> Republicans sought to offer amendments Democrats considered political
> cheap shots, on issues such as immigration, last year's bank bailout > and
> the Association of Community Organizations for Reform Now, and > Democratic
> leaders refused to allow them to come up for a vote.
>
> Finally, with the added sweetener of $21 billion in tax breaks added > over
> the past week, a bipartisan agreement was struck, although the > disagreement
> over amendments lingered until Wednesday. The measure now moves to the
> House for a final vote as early as today, and President Obama is > expected
> to sign it into law.
>
> "I am pleased the Senate has passed legislation that is vital to > Americans
> who have lost their jobs as a result of the deepest recession in over
> three-quarters of a century. Now that this legislation has passed the
> Senate, I will bring it to the House floor for a vote as early as
> tomorrow," House Majority Leader Hoyer said Wednesday in a statement.
>
>
> http://www.nationaljournal.com/congressdai...091105_3249.php
>
> -----
> FINANCE: BILL TO SPEED CREDIT CARD REGS MOVES TO SWAMPED SENATE
> By Bill Swindell with Dan Friedman contributing
>
>
> The House passed legislation Wednesday that would move up the > effective
> date of new restrictions on credit card issuers, but in a nod to > make it
> more palatable for the Senate, provided an exemption to those banks > that
> freeze their rates and fees.
>
> Members voted 331-92 for the bill sponsored by Rep. Carolyn Maloney,
> D-N.Y., that would immediately implement the Credit Card > Accountability,
> Responsibility and Disclosure Act. The CARD Act was enacted in May, > but
> some major provisions won't go into effect until Feb. 22.
>
> Democrats rushed through the Maloney bill after they became > distressed to
> hear of complaints about issuers jacking up fees and interest rates, > in
> some cases as much as 20 percent, before the implementation date.
>
> "During an economic downturn, Americans need to know they can rely on
> dependable credit, not be taken advantage of by credit card companies
> looking to make a quick profit," said House Majority Leader Hoyer.
>
> Sponsors allowed a vote for an amendment by Reps. Carolyn McCarthy,
> D-N.Y., and Betsy Markey, D-Colo., that would exempt issuers if they > froze
> rates and fees. It was adopted, 427-0. That brings the House bill in > line
> with a measure sponsored by Senate Banking Chairman Christopher Dodd > that
> would freeze credit card interest rates, fees and finance charges on
> existing balances until the law goes into effect.
>
> The Dodd bill has been placed on the Senate calendar, but Democratic
> leaders have not attempted to bring it to the floor, given expected > GOP
> opposition. The American Bankers Association said in a statement > that it
> would be "extremely difficult, if not impossible" to rearrange their
> computer and risk-modeling systems if the implementation date is > moved up.
>
> Dodd said he will push to get floor time for the bill, but said it > will be
> difficult. "It's just now between Veterans Day and Thanksgiving is > getting
> jammed," he said. "We're trying to find a window. And the leadership
> obviously has got a lot on its plate.
>
> "Nothing you bring up in the Senate can you do in a closed rule, so to
> speak, like you can in the House," Dodd added. "Anything you bring up
> becomes the subject of everything else. So we'll see. I am gonna try."
>
> A Senate aide, however, did not see the bill moving ahead.
>
> The Maloney bill had called for a Dec. 1 implementation date, but the
> House voted 251-174 for an amendment by Rep. Dan Maffei, D-N.Y., to > make
> the rules go into effect immediately once it is signed into law.
>
> The bill already contained a carve-out to small banks and credit > unions,
> limiting it to only issuers that have more than 2 million outstanding
> cards.
>
>
> http://www.nationaljournal.com/congressdai...091105_4510.php
>
> -----
> JUDICIARY: HOUSE PANEL FAILS TO VOTE ON PATRIOT ACT PROVISIONS
> By Andrew Noyes
>
>
> A divided House Judiciary Committee did not vote Wednesday on > legislation
> to modify and reauthorize provisions of the USA PATRIOT Act slated to
> sunset Dec. 31.
>
> After a heated debate over the 2001 antiterrorism law, the panel > approved
> a manager's amendment, 19-11, and rejected a handful of Republican
> proposals. The committee is expected to resume its consideration of > the
> bill this morning.
>
> Expiring PATRIOT Act sections pertain to roving wiretaps of terrorism
> suspects; law enforcement access to the records of library and > bookstore
> patrons; and a related intelligence law's "lone-wolf" provision that
> pertains to a noncitizen engaging in or preparing for international
> terrorism.
>
> Legislation introduced two weeks ago by House Judiciary Chairman John
> Conyers required more specificity for roving wiretaps and beefed up > the
> standard for law enforcement orders for individuals' library and > bookstore
> files. The measure included safeguards against "sneak and peek" > searches as
> well as limits on using devices that record numbers dialed from a > specific
> phone line.
>
> Conyers' narrowly crafted manager's amendment made clear that the
> government cannot use the PATRIOT Act to "merely fish through library
> accounts" and clarified how the authority pertains to businesses > that sell
> books but also much more. His proposal detailed the types of > connections
> that can justify the use of a controversial administrative subpoena > known
> as a "national security letter."
>
> Judiciary ranking member Lamar Smith said the bill could impede > important
> law enforcement efforts and expand terrorists' rights, and Rep. James
> Sensenbrenner, R-Wis., pointed out the Obama administration supported
> reauthorizing all three provisions. The Justice Department did say > it was
> open to suggestions for how to improve the statute but has not > publicly
> weighed in on the prevailing House bill or the version that passed the
> Senate Judiciary Committee last month.
>
> Freshman Reps. Mike Quigley, D-Ill., and Jason Chaffetz, R-Utah, > expressed
> concerns about the extent to which new committee members were > adequately
> briefed before moving forward. Quigley argued that DOJ had not > outlined its
> thoughts on proposed amendments to the PATRIOT Act, which means the > panel
> is largely "flying blind."
>
> The committee approved 19-12 an amendment by Rep. Adam Schiff, D-> Calif.,
> that altered the business records language to require the government > prove
> relevance rather than mandating that law enforcement show "specific > and
> articulable facts." It added a requirement that the executive branch > report
> within six months of the bill's enactment on alternatives to existing
> information collection practices.
>
> Also, Conyers said Justice Department Inspector General Glenn Fine is
> preparing a report that will examine accountability issues related > to the
> FBI's use of exigent letters and other improper telephone record > requests.
> A DOJ spokeswoman said the document's release is not imminent.
>
>
> http://www.nationaljournal.com/congressdai...091105_9699.php
>
> -----
> GRAPHIC: EMISSION ALLOWANCES IN THE BOXER-KERRY CLIMATE BILL
>
> Like the House climate bill, Senate legislation from Environment and
> Public Works Chairwoman Barbara Boxer includes detailed language as > to how
> emissions allowances are to be distributed and auctioned. The chart > below
> shows what percentage of the allowances various programs would > receive.
>
>
> http://www.nationaljournal.com/congressdai...091104_6046.php
>
> -----
> HEALTH: ABORTION-RIGHTS CAUCUS WON'T OPPOSE ELLSWORTH LANGUAGE
> By Kasie Hunt with Billy House contributing
>
>
> Abortion-rights supporters in the House will not oppose strengthening
> protections to make sure federal money is not used to pay for > abortions,
> eliminating one more hurdle for House leaders working to secure > votes from
> anti-abortion Democrats.
>
> Rep. Diana DeGette, D-Colo., said the Congressional Pro-Choice > Caucus will
> not oppose changes proposed by Rep. Brad Ellsworth, D-Ind., to > strengthen
> abortion-related language. "We're not excited about the Ellsworth > language,
> but if Congressman Ellsworth feels he needs this clarifying language > to
> just confirm that we're not going to have federal funding for > abortion in
> the bill, we are not going to object to the rule because it's in > there,"
> said DeGette, the caucus co-chairwoman.
>
> Ellsworth's proposal is an effort to ease the concerns of some
> anti-abortion Democrats who are worried that a compromise drafted by > Rep.
> Lois Capps, D-Calif., doesn't do enough to make sure that no federal > money
> would be used to pay for abortions. Rep. Bart Stupak, D-Mich., had
> threatened that 40 anti-abortion Democrats were prepared to vote > against
> the rule if leaders did not allow a vote on an amendment to codify > the Hyde
> Amendment.
>
> Ellsworth sent his proposal to the Congressional Research Service, > which
> he said confirmed that no federal money will be used to fund > abortions. If
> leaders include his language in the rule, "I can vote for the rule > and rest
> assured that no public dollars are going to fund abortion," > Ellsworth said.
> He said that at least three anti-abortion Democrats approached him > and said
> they could back his changes in light of the CRS report.
>
> House Speaker Pelosi and Majority Leader Hoyer addressed the issue > at a
> meeting Wednesday night with Democratic sophomores. Rep. Hank Johnson,
> D-Ga., said one of the messages was that "there's still a group of
> Democrats out there who would be willing to use abortion to scuttle > this
> whole bill."
>
> He said the strategy of the two leaders was to impress upon members > that
> "the bottom line is we have a reasonable position that we're going > to stick
> to on abortion."
>
> Hoyer said abortion discussions were ongoing. He said the Ellsworth
> language "is certainly one of the parts of the discussion, but it's > not the
> exclusive part."
>
> But even if leaders can secure enough votes to mitigate Stupak's > threat,
> they still have to address an emotional dispute over immigration -- a
> delicate balance as they work to find 218 votes before a possible > Saturday
> vote on the bill.
>
> "We have to come to a place where we don't lose votes. The whole > idea is
> to get votes," Pelosi said.
>
> Vulnerable Democrats have launched a last minute push to include > language
> excluding undocumented immigrants from buying insurance in the > exchange
> with private money -- a provision included in the Senate Finance > Committee
> bill.
>
> But adding the language to the House bill could jeopardize passage. > Rep.
> Ed Pastor, D-Ariz., said if the provision is included in the bill, a
> majority of the 22-member Congressional Hispanic Caucus will vote > against
> the rule.
>
> Losing those votes could combine with remaining anti-abortion > Democrats to
> leave leaders unable to bring the bill to the floor, said Pastor, a > chief
> deputy whip. "With the issue of pro-life and other people voting > against
> it, it becomes pretty difficult to deal with," he said.
>
> Rep. Luis Gutierrez, D-Ill., said leaders would risk his support. "It
> would make it extremely difficult for me to vote for the bill," he > said.
>
> "I have already said no tax dollars shall go to support healthcare for
> undocumented workers. What more do you want me to do?" Gutierrez > said. "I'm
> being consistent. But now they want to feed the frenzy of the > xenophobic,
> right-wing anti-immigrant."
>
> Democratic Congressional Campaign Committee Chairman Chris Van > Hollen of
> Maryland, the assistant to the speaker, is set to meet with CHC > members, a
> party aide said. Pelosi tasked Van Hollen with coordinating > negotiations
> with Democratic Conference Vice Chairman Xavier Becerra of California.
>
> A Democratic aide said the CHC should focus any anger on the White > House
> and the Senate, which added the language after President Obama > addressed a
> joint session of Congress. "The reforms I'm proposing would not > apply to
> those who are here illegally," Obama said, prompting Rep. Joe Wilson,
> R-S.C., to shout, "You lie!"
>
> Obama intends to come to the Capitol Friday to meet with House > Democrats
> and make a final pitch for the legislation, congressional officials > told
> the Associated Press.
>
> The issue will re-emerge in conference, the aide said. "We're going to
> come back to this thing," the aide said. "They should be directing > their
> energy and frustration toward the Senate for creating this > daylight ... and
> also at the White House, which has embraced the Senate language."
>
> "They [the Senate] either have to move toward us or we have to move > toward
> them. The reality is that the president needs to step in and make it > clear
> about where he stands," the aide said.
>
> Gutierrez criticized Obama because he referred to "illegal" > immigrants in
> his speech instead of referring to them as undocumented. Obama used
> "undocumented" on the campaign trail, Gutierrez said, but "he's not so
> careful when he's got them in his back pocket."
>
> Obama's top domestic priority will get a boost today when the AARP is
> expected to endorse the overhaul, the Associated Press reported.
> Republicans argue the overhaul would hurt seniors in part because it > cuts
> reimbursement rates to Medicare Advantage plans. But the AARP's > backing
> could give leaders a boost in their push for 218.
>
>
> http://www.nationaljournal.com/congressdai...091105_5602.php
>
> -----
> PEOPLE: PEOPLE
> By Gregg Sangillo
>
>
> OH, THE HUMANITY. David Abramowitz, a professional staff member and
> general counsel at the House Foreign Affairs Committee, is going to > head up
> the Washington office of Humanity United, a Silicon Valley-based
> philanthropic organization. Starting Monday, Abramowitz will serve as
> director of policy and government and help direct the Alliance to End
> Slavery and Trafficking, a Humanity United-organized coalition against
> human trafficking. Abramowitz joined the Foreign Affairs Committee > in 1999.
> He's worked on legislation to create the Millennium Challenge Corp., > as
> well as the Victims of Trafficking and Violence Act of 2000. Before > his
> time at the committee, he worked at the State Department and with > the U.S.
> District Court of the Eastern District of Michigan.
>
> SHE LANDED. Jennifer Kaleta is starting up the Washington office for > Land
> O'Lakes, the agriculture cooperative based in Minnesota. She is > serving as
> director of federal government affairs and will report to Steven > Krikava in
> the member and public affairs division. Kaleta is a former staffer > at the
> House Agriculture Committee. She's also worked in the personal > offices of
> Rep. John Shimkus, R-Ill., and former Rep. Steve Chabot, R-Ohio. She > has
> also spent about three years working for Monsanto.
>
> ROCKY RETURN. Capitol Hill veteran Andrew Cole is now a press > secretary
> for Josh Penry, a Republican gubernatorial candidate in Colorado for > 2010.
> Cole was communications director for Rep. Joseph Pitts, R-Pa. Before > that,
> Cole worked as deputy press secretary for former Rep. Marilyn > Musgrave,
> R-Colo., and was a legislative intern for former Sen. Wayne Allard, > R-Colo.
> In Pitts' office, Cole was replaced by Andrew Wimer, who worked for > Rep.
> Scott Garrett, R-N.J. from 2004-2007 as a staff assistant, legislative
> correspondent, and eventually a legislative assistant. More > recently, Wimer
> was a manager of communications at Printing Industries of America. > Wimer
> earned a master's this year in public communications from American
> University.
>
> VETERAN ADVOCATE. Rep. Tom Perriello, D-Va., hired a caseworker for
> veterans' affairs. The role will be filled by M. Martha Woody, who > will
> work out of two of Perriello's district offices. Woody was most > recently
> working for the Boys & Girls Club of Martinsville and Henry counties > in
> Virginia. She has worked in various healthcare positions over three
> decades, including time as a nurse. Woody has a bachelor's degree from
> Roanoke College and a master's in education from Virginia Tech. > Also, now
> working as Perriello's scheduler on Capitol Hill is Jay Tansey, a > former
> higher education research associate at the Advisory Board Company.
>
>
> http://www.nationaljournal.com/congressdai...091105_9255.php
>
> -----
> HOUSE RACE HOTLINE EXTRA: THIRD-PARTY MARGINS
> By Tim Sahd
>
>
> Another election night went into the books this week, and House
> Republicans blew yet another opportunity at a signature win when > Democrat
> Bill Owens turned back Conservative Doug Hoffman and won the upstate > New
> York seat vacated when former GOP Rep. John McHugh became Army > secretary.
>
> Owens' victory was a gut punch for the Republicans.
>
> Up until that point Tuesday night, the GOP enjoyed fantastic returns.
> Former state Attorney General Bob McDonnell crushed state Sen. > Creigh Deeds
> to capture the Virginia governorship for the GOP for the first time in
> eight years. And in New Jersey, former U.S. Attorney Chris Christie
> defeated Democratic Gov. Jon Corzine, who vastly outspent his GOP
> challenger and who had the benefit of having President Obama help > turn out
> the vote.
>
> Then, the results from New York trickled in. Surely voters there would
> shower Hoffman, who conservative Republicans heartily endorsed, with > the
> same support they showed Christie and McDonnell.
>
> They didn't.
>
> The main difference between the contests in Virginia and New Jersey > and
> the race in New York was the lack of a Republican candidate. GOP
> Assemblywoman Dede Scozzafava dropped out of the race over the > weekend,
> claiming she didn't have the funds to resuscitate her cratering > campaign.
>
> S

[Snuffysmith]

>
>
> CongressDaily PM for Tuesday, Nov. 10, 2009
>
> --------------------
> CONTENTS
>
> FINANCE: DODD UNVEILS FINANCIAL REGULATION PLAN
> By Bill Swindell, with Dan Friedman contributing
>
>
> Senate Banking Chairman Christopher Dodd today unveiled his discussion
> draft of legislation to revamp the nation's financial regulatory system in
> the aftermath of last year's banking crisis, throwing out a marker in a bid
> to jump-start action in the upper chamber where Republicans have signaled
> strong opposition to parts of the plan.
>
> The 1,136-page bill largely hews to an Obama administration overhaul plan
> and a package of bills crafted by House Financial Services Chairman Barney
> Frank, but it contains a few key differences.
>
> The Dodd draft would establish an Agency for Financial Stability to
> monitor threats to the financial system with a nine-member panel that would
> look at firms deemed too big to fail and could impose capital, liquidity
> and leverage requirements on them. The Frank bill would have a council of
> regulators play such a role.
>
> Dodd's draft would create an independent director selected by the
> president and confirmed by the Senate to head the agency, arguing such a
> position would be freer from political manipulation. Frank's bill would
> make the Treasury secretary the head of its council.
>
> Federal regulators would be given resolution authority to take over
> at-risk large firms and unwind their assets under the bill, similar to a
> process that the FDIC does for banks. Both the Obama plan and the Frank
> language call for such a proposal, but Dodd has offered up a few wrinkles
> in his bill.
>
> For example, the Senate measure would require firms deemed systemically
> important to issue long-term hybrid debt securities to provide them capital
> during a crisis and require institutions to submit "funeral plans" if they
> should fail. Those that do not submit such plans would be subject to higher
> capital requirements.
>
> Frank is tweaking the House bill to establish an upfront fund to cover
> such resolution authority over fears that without such a cushion, the
> federal government would face a continuing series of bailouts, making it
> politically untenable to move in the lower chamber.
>
> The Dodd measure would change the Federal Reserve's emergency lending
> authority that it has used within the last year to keep the economy afloat.
> Instead, it would make such aid available on a system-wide basis to healthy
> institutions and major market players, but not to prop up a failing firm.
>
> The Dodd bill consolidates banking regulation at the federal level much
> more than other proposals, merging the duties of four different agencies
> into a new Financial Institutions Regulatory Administration.
>
> It would merge the Office of the Comptroller of the Currency and the
> Office of Thrift Supervision and take supervision duties away from the
> Federal Reserve, which has jurisdiction over large bank holding companies
> and state-chartered banks, and the FDIC, which has oversight over most
> state-chartered banks.
>
> "This is not the time for timidity in this area," Dodd said. "This is a
> time for some ... sweeping and bold changes."
>
> That proposal has triggered opposition from small banks and state banking
> supervisors, who worry that their influence would wane under the structure
> and that oversight would be tilted in favor of large national banks, which
> are pushing the idea.
>
> In a nod to their views, the Dodd legislation would create a community
> bank division and a state bank advisory board within the proposed agency.
>
> Frank has argued that such consolidation is ultimately politically
> unrealistic, given the lobbying heft of such groups as the Independent
> Community Bankers of America, which blasted the provision as a "deeply
> flawed approach" that would hurt more than 8,000 community banks.
>
> Dodd Sides With Obama On CFPA
>
> The Dodd measure would create a Consumer Financial Protection Agency that
> would take consumer protection duties away from six agencies and
> concentrate such authority into one with rule-writing, enforcement and
> examination duties.
>
> The legislation largely mirrors an Obama administration plan and would not
> pre-empt state laws. It also would focus on institutions that pose the
> biggest risk to consumers, skewing to larger institutions.
>
> Frank was forced in his package to narrow the CFPA's scope, providing a
> limited state pre-emption, providing some exemption for auto financing, and
> giving primary examination and enforcement duties for small institutions
> back to primary regulators.
>
> Banking ranking member Richard Shelby has expressed concerns about
> creating a new bureaucracy with the agency. Dodd said he has been in
> contact with Shelby over the draft, which he hopes to mark up the first
> week of December, and incorporated some GOP ideas in the bill. "That door
> is very much open," Dodd said of GOP advice.
>
> "I had hoped today that we'd be standing here with a consensus bill, but I
> understand that isn't always possible when you want it to happen. But I'm
> confident and optimistic that will happen," Dodd said.
>
> Sen. Mark Warner, D-Va., a key moderate on the panel who has worked with
> fellow member Sen. Bob Corker, R-Tenn., on some issues, noted the bill
> would require more discussions going forward.
>
> "I have still got questions about the right way to do consumer protection.
> So there is stuff I tried to dig in pretty deep over the last 10 months,"
> Warner said. He added there is agreement between GOP and Democrats on about
> 80 percent of the package.
>
> The proposal would place further restrictions on the over-the-counter
> derivatives market, where American International Group bet heavily on
> credit default swaps that later went bust because they were tied to the
> subprime mortgage market.
>
> The language would strengthen the ability of the SEC and the Commodity
> Futures Trading Commission to regulate the multi-trillion-dollar industry
> and forcing more trades to go through a clearinghouse, which guarantees the
> underlying transaction, and then onto an exchange or similar facility.
>
> Unlike the current House approach, the SEC and CFTC would have the initial
> authority to decide which contracts should be cleared. The House bill would
> place such authority first with the clearinghouse, although Frank wants to
> switch the language to give the regulators such powers.
>
> Dodd also included provisions that would require private pools of capital
> with more than $100 million to register with the SEC; place new liability
> standards on credit-ratings agencies; beef up protection for securities
> investors, including new fiduciary standards on broker-dealers; and create
> an Office of National Insurance. Those provisions are very similar to the
> House measures.
>
> Corporate Governance Provisions Added
>
> Sen. Charles Schumer, D-N.Y., was successful in attaching his legislation
> that would place new corporate governance standards in the bill, an issue
> the Obama administration has not weighed in on during the debate and one
> the House is planning on for next year. It is strongly opposed by the U.S.
> Chamber of Commerce.
>
> The Schumer language included would give shareholders a nonbinding vote on
> executive pay and golden parachute packages; provide them with proxy access
> to nominate directors; require independent compensation committees; and
> mandate that public companies take back executive compensation based on
> inaccurate fraudulent statements.
>
> Dodd also included Schumer language to allow the SEC to self-fund its
> budget by retaining the fees it collects. The agency is funded at
> approximately $900 million annually, but Schumer noted that it collected
> $1.5 billion in fees last year.
>
>
> http://www.nationaljournal.com/congressdai...091110_4074.php
>
> -----
> HEALTH: DURBIN: FLOOR ACTION MIGHT WAIT UNTIL LATE NOV.
> By Dan Friedman and Anna Edney
>
>
> Top Senate Democrats plan to start debate on a healthcare overhaul bill
> next week, but they said today a key vote on a motion to proceed to the
> bill might not occur until after Thanksgiving and that final passage might
> not come this year.
>
> "I wish we could complete it this year, but if we don't, we'll get it
> done," said Senate Majority Whip Durbin.
>
> Senate Majority Leader Reid said today he expects to get a bill on the
> Senate floor next week and thinks the Senate can pass the bill before
> Christmas. Reid added he will bring a bill to the floor next week with a
> CBO score, but did not rule out moving without one.
>
> With Reid awaiting scores of potential provisions from CBO, Durbin said a
> vote on a motion to proceed is unlikely until after the Thanksgiving
> recess.
>
> "Boy, that would be terrific, if we could get a motion to proceed" before
> the holiday, Durbin said.
>
> Durbin said Reid is working to assure that 60 senators commit to initially
> vote to cut off a GOP filibuster on the motion to proceed, and Democrats
> will not move if they are not sure of the votes. Democrats remain focused
> on securing commitments to move to the bill, betting that changes on the
> floor can win over holdouts, he said.
>
> "What we are aiming for is for people to ... understand what's in the bill
> and commit to moving forward with the debate," Durbin said. "That is what
> the motion to proceed is all about. No final commitment has been made on
> passage, obviously, until people have a chance to review it carefully. And
> clearly we're going to make some changes."
>
> President Obama made clear Monday he hopes the Senate will "bring this
> healthcare reform bill to him as quickly as possible," Durbin said. The
> White House "wants us to finish quickly and we do, too, but some of these
> things are beyond our control," he added.
>
> Durbin downplayed the potential impact of Senate failure to finish before
> 2010. "The difference between Dec. 23, 2009, and Jan. 3, 2010, is not a
> dramatic difference," he said.
>
> Reid hopes to get CBO scores back by the end of this week. Reid's office
> is working to respond to a series of questions from CBO raised late Monday,
> a normal step, according to Durbin and Democratic aides.
>
> With scores in hand, Reid and Durbin said, they are prepared to unveil a
> bill next week despite the one-week break they would then be forced to take
> amid consideration.
>
> "If it sits out so that everybody in America gets to read it on the
> Internet and review it, I'm not afraid of that," Durbin said. He said the
> time will give a Republican who wants to read the entire bill on the floor
> enough of a chance to do so.
>
> Meanwhile, Sen. Thomas Carper, D-Del., said he and some senators, whom he
> declined to name, are working on an alternative public option if Reid
> cannot garner the 60 necessary votes for the public option that will allow
> states to opt out. Carper said the alternative "addresses concerns about
> government owned, government run."
>
> In states where private insurers are not offering affordable coverage,
> Carper said the alternative would set up a non-profit board, likely
> appointed by the president, to offer insurance. "That kind of approach
> might come close to hitting a sweet spot for a lot of people," Carper said.
> He added that his group is being encouraged to flesh out their plan, and
> that the non-profit board could be inserted in the final Senate bill before
> it gets to the floor if Reid lacks the 60 votes.
>
> Former President Bill Clinton spoke to the Democratic Caucus today on the
> overhaul. Sen. Ben Cardin, D-Md., said Clinton urged them to "get the job
> done" even if there are parts of the bill they do not like.
>
> "The point I tried to make is that this is an economic imperative,"
> Clinton said, speaking later to reporters. "Second thing is, on the policy,
> there is no perfect bill because there are always unintended consequences."
>
> On another key concern, senators today said a House amendment offered by
> Rep. Bart Stupak, D-Mich., restricting federal funding for abortion will
> force the Senate to address the matter.
>
> Reid did not say whether he plans to follow the House language. He said
> the bill that comes to the floor will ensure "that no federal funds are
> used for abortion and the conscience rights of providers and healthcare
> facilities like Catholic hospitals are protected."
>
> Moderate Senate Democrats, including Sen. Ben Nelson of Nebraska, want
> stronger abortion language added to the Senate bill.
>
> "It's going to have to be clear that taxpayer funding is not being used
> for abortion," said Sen. Kent Conrad, D-N.D. Conrad added a compromise
> different than the one made by the Finance Committee might need to be made,
> and it might not mirror the Stupak language.
>
>
> http://www.nationaljournal.com/congressdai...091110_6648.php
>
> -----
> ENVIRONMENT: NO PROMISES ON CLIMATE BILL, SAYS BAUCUS
> By Darren Goode
>
>
> Senate Finance Chairman Max Baucus said today he is not guaranteeing his
> panel can take up climate change legislation this year.
>
> His message to Senate Foreign Relations Chairman John Kerry today was,
> "We're going to do the best we can, but no promises," Baucus said following
> a Finance Committee hearing.
>
> Kerry said, "I think there will be something that will be marked up in the
> Finance Committee. The question is when."
>
> Senate Majority Leader Reid plans to meet next Monday with Baucus, Kerry
> and other committee chairmen on what is possible.
>
> The Finance panel has a diverse mix of senators from both parties who
> could play key roles in forming a cap-and-trade bill, including Baucus, who
> was the only Democrat to vote against an initial plan from Kerry and
> Environment and Public Works Chairwoman Barbara Boxer in Boxer's committee
> last week.
>
> It also includes Democrats such as Sens. Maria Cantwell of Washington, who
> does not want to set up a carbon market as called for in a cap-and-trade
> plan; Debbie Stabenow of Michigan, who will need the right language giving
> border protection to manufacturers; John (Jay) Rockefeller of West
> Virginia, who is opposed to the legislation because of how it would affect
> his coal-rich state; and skeptics like Sens. Kent Conrad of North Dakota
> and Blanche Lincoln of Arkansas.
>
> But Baucus might get some Republican help, particularly from Sen. Olympia
> Snowe of Maine, who is considered the Republican most likely to support
> legislation.
>
> Despite this political makeup, "I think in the end we'll get something"
> through the committee, said Kerry, who is a Finance Committee member.
>
> Baucus may have to do so without Finance ranking member Charles Grassley,
> who at a hearing today cited strong concerns about how climate legislation
> could affect jobs.
>
> "I've got to see the legislation," he said afterward. "I can tell you I
> don't like the House bill."
>
> Climate change "is a problem that should be addressed," he added, but said
> he has concentrated more on what kind of international climate agreement
> could be reached. "If we passed a bill that the rest of the world didn't
> follow, Uncle Sam would soon become Uncle Sucker and export all our jobs to
> China," he said.
>
> The Iowa Republican was skeptical the panel would mark up a bill this
> year. "I think that between the health bill and the estate tax bill, I
> don't know whether there's going to be time for a markup on this," he said.
>
> Kerry said he does not want to set a timeline for action on a bill beyond
> trying to get something finished this Congress.
>
> "The main thing to do here is to build the adequate base of support and
> consensus with people and working it through," he said. "If you get into an
> artificial timeline, then you don't give people the opportunity to feel
> that they're being listened to."
>
> Baucus at today's climate hearing in his panel noted that job-loss
> projections for EPA's acid rain program were worse than what actually came
> about. "The negative consequences were far less than projected," Baucus
> said. "We should keep this in mind when similar claims are made about the
> effects of legislation to address climate change."
>
> But he added, "To be fair, the scope of climate change legislation is much
> broader."
>
>
> http://www.nationaljournal.com/congressdai...091110_6622.php
>
> -----
> BUDGET: BAYH SEEKS VOTE ON DEBT PANEL DEAL
> By Humberto Sanchez
>
>
> A group of about 15 senators is looking at a must-pass increase in the
> debt ceiling as leverage for action on legislation to establish a
> bipartisan commission that would make recommendations on deficit reduction.
>
> Sen. Evan Bayh, D-Ind., said today after testifying before the Senate
> Budget Committee that he does not see how Senate Democratic leaders can
> avoid addressing the group's concern, given that 60 votes are needed to
> increase the debt ceiling.
>
> "There are just enough of us who are not going to vote to increase the
> national debt ... unless there is some fundamental reform and a credible
> reason to believe -- not just lip service or empty promises -- that things
> will get better on the fiscal front," he said.
>
> The Treasury Department recently announced the federal government will not
> hit the $12.1 trillion debt ceiling until mid- to late December, and Bayh
> hopes that a plan to create the commission can be agreed to by then.
>
> Bayh said he has been in touch with the White House and he believes that
> they are "open-minded to a different process if that is what is needed to
> produce a better outcome."
>
> "I think Majority Leader Reid is open minded on the issue," Bayh said,
> while adding he has not gotten any assurances.
>
> Bayh further argued the Senate could force the House's hand if the Senate
> attaches the commission provision to the debt limit increase and raises it
> above the $13.1 trillion debt ceiling approved by the House as part of the
> FY10 budget resolution.
>
> House Speaker Pelosi has opposed the commission idea and prefers that the
> committees handle the issue in regular order. But at the budget hearing,
> four senators and two members of the House argued regular order has proved
> unsuccessful.
>
> "Regular order is not going to produce the results necessary," said Senate
> Budget Chairman Kent Conrad.
>
> Bayh suggested the commission legislation should allow committees of
> jurisdiction a certain number of days to take up the problem, and it would
> only take over if they fail to do so. Conrad is working with Budget ranking
> member Judd Gregg on commission legislation they plan to co-sponsor.
>
> Gregg said he believes there is plenty of time to prepare their proposal
> before action is needed on the debt limit. He said Republicans also want to
> offer the commission legislation as an amendment to the debt limit as well
> as offer amendments that would enact a discretionary spending freeze,
> rescind stimulus funding after June, and require that any repayment of
> financial rescue funds be used to reduce the debt.
>
> The hearing came as Democratic leaders were considering whether to include
> the debt limit increase as part of the FY10 Defense spending bill.
>
> Also on the spending front, Reid said he hopes today to reach an agreement
> on amendments to the $133.9 billion FY10, Military Construction-VA spending
> bill and to finish the measure early next week.
>
>
> http://www.nationaljournal.com/congressdai...091110_7458.php
>
> -----
> TRADE: BAUCUS SEES CLEAN PREFERENCES EXTENSIONS
> By Peter Cohn
>
>
> Senate Finance Chairman Max Baucus said today lawmakers are likely to
> grant clean extensions of trade preferences to Ecuador and other
> beneficiaries of U.S. preferences programs, given the dwindling legislative
> calendar, but they will reassess the issue next year.
>
> Duty-free benefits for goods from Andean countries as well as the larger
> Generalized System of Preferences program expire Dec. 31. Baucus said
> Congress would act on an extension of both before the year is out.
>
> "Not just six-month extensions ... but not too long, because there are
> concerns about the propriety of some of these countries," he said after a
> speech to the Washington International Trade Association.
>
> Baucus noted unease about Ecuadorian President Rafael Correa's recent move
> to issue compulsory licenses for pharmaceutical products, for instance. The
> decree opens the door to competition from generic medicines for brand-name
> drugs, which the government and activist groups argue is essential to
> lowering costs and expanding access to life-saving medicines.
>
> But critics, including the U.S. pharmaceutical industry, generally oppose
> compulsory licensing, arguing it is akin to intellectual property theft and
> shifts the burden and cost of finding new cures onto U.S. firms and
> consumers.
>
> Other concerns with Ecuador include its treatment of U.S. firms such as
> Chevron Corp., as well as a dispute over a U.S. lease for an air base used
> for counternarcotics operations. "I suspect we'll probably include Ecuador
> in a short extension," Baucus said. "But Ecuador's not helping itself."
>
> "We're so preoccupied in the Senate with other matters, we'll probably
> take that up next year," he added. "But believe me, it's noted, the Ecuador
> problems."
>
> He also brought up the issue of larger, more developed nations that
> continue to receive GSP benefits but have opposed U.S. trade interests in
> international negotiations. He did not name them, but Finance ranking
> member Charles Grassley has consistently cited India and Brazil as
> examples.
>
> Baucus said there was not enough time this year to examine the matter and
> lawmakers would probably pass a clean GSP extension. "Countries rely on it,
> American businesses rely on it," Baucus said. "But there are questions of
> graduation, and some of these countries have grown a little bit since these
> programs were begun, and some are ... more our friends than others."
>
> Baucus also gave a push to the Obama administration, which is formulating
> its trade agenda. "International trade is woven into the essential economic
> fabric of this country. We ignore it at our peril," Baucus said.
>
> Specifically, Baucus said the greatest focus should be on the Asia-Pacific
> region, which is experiencing the most robust growth and represents a
> nearly $1 trillion market for U.S. goods and services exports. Those
> countries are already forming their own regional trading blocs, which could
> undercut the U.S. share of the market.
>
> "Asia must be the centerpiece of our new trade strategy. This vital region
> is pursuing integration with lightning speed. We cannot be left behind,"
> Baucus said.
>
> Baucus also called for approval of pending free-trade agreements with
> Colombia, Panama and South Korea, although he noted "each one has its own
> issues."
>
>
> http://www.nationaljournal.com/congressdai...091110_7106.php
>
> -----
> SENATE RACES: CANDIDATES TREADING FINE LINE IN CONNECTICUT
> By Erin McPike
>
>
> Republican Senate candidates in Connecticut are walking a fine line ahead
> of next year's primary, trying to prove themselves to national conservative
> leaders who have driven away moderate candidates in other states while
> clinging to socially moderate stances that could help them in a general
> election showdown against Democratic Sen. Christopher Dodd.
>
> While the Club for Growth, which has backed conservatives over more
> moderate candidates for the House in New York and for the Senate in
> Florida, has shown little interest in Connecticut so far, former House
> Majority Leader Dick Armey, chairman of a group that advocates smaller
> government and lower taxes, will weigh in Wednesday.
>
> Armey, who heads Freedom Works, will meet with activists to consider which
> of the potential Republican challengers comes across as the most fiscally
> conservative. Armey was one of the first leading conservatives to endorse
> Doug Hoffman, the Conservative Party candidate in a special House election
> in upstate New York a week ago.
>
> Some Republicans complain that conservative interest in Hoffman led GOP
> nominee Dede Scozzafava to withdraw and allowed Democratic Rep. Bill Owens
> to win a seat that the GOP had held since the Civil War. But Armey's role
> in trying to force the party to the right has given him new stature with
> GOP activists and makes Wednesday's event crucial in the early stages of
> the race.
>
> The three leading Republicans -- former Rep. Rob Simmons, former World
> Wrestling Entertainment CEO Linda McMahon and former Ambassador to Ireland
> Tom Foley -- are campaigning as fiscal conservatives but are, to varying
> degrees, maintaining moderate stances on social issues in the deep blue
> state.
>
> McMahon and Foley claim to be more fiscally conservative than Simmons, a
> view that Simmons' campaign disputes. With voters focusing on the economy
> as the central issue, the debate about those views is likely to drive
> perceptions of the candidates, not only with Armey and other national
> conservatives, but among the electorate.
>
> A Quinnipiac University poll due out Thursday will show whether McMahon
> and Foley have gained any traction on Simmons, who led earlier polls for
> the Republican nomination and has led some general election matchups
> against Dodd.
>
> While Armey's views of the candidates might not be a major factor with
> state voters, he still could have an impact on the race because of
> Connecticut's two-tier nominating system. Before the candidates get to the
> primary, they have to win the backing of at least 15 percent of GOP
> activists - the kind of folks Armey is aiming at Wednesday - at a party
> convention in May.
>
>
> http://www.nationaljournal.com/congressdai...091110_3764.php
>
> -----
> POLITICS: SENATORS WILL TEST HEALTH VIEWS AT HOME
> By Billy House and Dan Friedman
>
>
> As the Senate prepares to take up controversial healthcare legislation,
> lawmakers from both parties will have a chance to preview their arguments
> before home state voters over the Veterans Day recess.
>
> A recess "Getaway Card" prepared for members of the Senate Republican
> Conference emphasizes that GOP senators want to "read the bill" and "know
> what it costs." The card says Democratic plans consume 2,000 pages, amount
> to a Washington takeover, and would cause higher premiums and higher taxes,
> Medicare cuts and more debt.
>
> Although Senate Republicans have not proposed an independent plan, the
> card says Republican reform would reduce costs through medical malpractice
> reform, allowing small businesses to pool resources and allowing purchasing
> of insurance across state lines.
>
> Senate Democratic leaders were still working on the details of their
> talking points, but the health debate is expected to be a central focus.
>
> House members are also continuing to focus on the health bill even though
> it passed the House Saturday.
>
> House Democrats who fanned out to their home states immediately following
> Saturday's vote took with them a document from Majority Leader Hoyer that
> one aide described as "a veritable encyclopedia of what's in our bill and
> how it will benefit all Americans."
>
> It includes a comparison of "What the Insurance Company-Dominated System
> Has Done to You?" and "What Will Insurance Reform Do For You?"
>
> Meanwhile, rank-and-file House Republicans are being urged to rev up the
> fight rather than give up after Saturday's vote.
>
> "The legislative battle over health care reform is not over," exhorts
> House Republican Conference Chairman Mike Pence of Indiana in a letter to
> members attached to GOP talking points. "We must continue to oppose the
> [Speaker] Pelosi healthcare bill and stand by the American people in
> support of Republican-offered solutions."
>
> The House GOP's main theme is that the 1,990-page bill is a "freight
> train" of runaway spending, higher taxes, bloated bureaucracy and federal
> mandates. Members are urged to underscore that as healthcare reform has
> captured the attention of Congress for months, job losses continue to mount
> and unemployment has risen to 10.2 percent.
>
>
> http://www.nationaljournal.com/congressdai...091110_3168.php
>
> -----
> HILL BRIEFS: AGENCIES UNVEIL BROADBAND STIMULUS CHANGES
>
> Telecommunications. Under pressure from Congress and telecomunications
> providers, the Agriculture and Commerce departments announced today that
> they are taking several steps to streamline the $7.2 billion broadband
> stimulus program, including combining the remaining second and third rounds
> of funding into one. The loans and grants are designed to extend deployment
> to unserved and underserved regions of the country. "This will get the
> funds out the door faster to stimulate the economy and create jobs,"
> Jonathan Adelstein, administrator of Agriculture's Rural Utilities Service,
> said in a written statement. "It gives applicants and communities a greater
> opportunity to come together to form networks," he added. Responding to
> concerns about red tape associated with the program, both agencies are
> requesting comment on ways to streamline the application process and better
> target the remaining funds. Input is being sought on whether eligibility
> criteria for the most generous grants offered by the RUS are too
> restrictive, preventing the money from reaching many rural areas that need
> assistance.
>
>
> http://www.nationaljournal.com/congressdai...091110_6134.php
>
> -----
> HILL BRIEFS: PFEIFFER TO REPLACE DUNN AT WHITE HOUSE
>
> White House. Dan Pfeiffer will become White House communications director
> as Anita Dunn steps down by the end of the year, officials told the
> Associated Press today. Dunn has been serving on an interim basis since
> President Obama's first communications director, Ellen Moran, left for the
> Commerce Department. Pfeiffer served as Obama's traveling press secretary
> during the campaign and then as communications director for the campaign
> and transition. He formerly worked for Vice President Al Gore, former
> Senate Majority Leader Tom Daschle, D-S.D., and Sen. Evan Bayh, D-Ind.
>
>
> http://www.nationaljournal.com/congressdai...091110_4540.php
>
> -----
> HILL BRIEFS: OBAMA TO TAP SHAH AS USAID HEAD
>
> Foreign Affairs. President Obama has chosen Rajiv Shah, a physician and
> the Agriculture undersecretary for research, education and economics, to
> run the U.S. Agency for International Development. Shah, a former executive
> with the Bill and Melinda Gates Foundation, has been USDA's lead official
> on the Obama administration's global food security initiative.
>
>
> http://www.nationaljournal.com/congressdai...091110_3628.php
>
> -----
> HILL BRIEFS: SIX ARRESTED AT LIEBERMAN'S OFFICE
>
> Senate. Capitol Police charged six protesters with unlawful entry today
> for refusing to leave the office of Sen. Joseph Lieberman, D-Conn. This was
> the second protest in less than a week organized by the liberal group Code
> Pink, which frequently protests the wars in Iraq and Afghanistan and
> advocates for a public health insurance option. Nine protesters were
> arrested Thursday after Lieberman announced he would filibuster any
> healthcare legislation that contained a public option.
>
>
> http://www.nationaljournal.com/congressdai...091110_2296.php
>
> -----
> POLITICAL ROUNDUP: GOP CANDIDATE WITHDRAWS FROM RACE
>
> Idaho. House Republican Caucus Chairman Ken Roberts today dropped his bid
> to seek the seat held by freshman Democratic Rep. Walt Minnick, the Idaho
> Statesman reported. "It is with great reluctance that I withdraw from the
> race for the 1st District congressional seat of this great state," said
> Roberts. "For the past several days, I have been dealing with an unexpected
> health issue that has affected my candidacy and hampered my ability to make
> this run." Roberts offered no further explanation. Earlier in the day,
> Kevin McGowan, Roberts' former campaign manager, said he had resigned from
> the campaign because Roberts was having a tough time raising funds. Despite
> his leadership post in the Legislature, Roberts trailed Vaughn Ward, a
> former Marine who was making his first bid for elected office. Ward
> collected about $246,000, while Roberts brought in $62,000, as of Sept. 30.
> Former GOP Rep. Bill Sali, who was unseated by Minnick last year, might run
> again.
>
>
> http://www.nationaljournal.com/congressdai...091110_7645.php
>
> -----
> POLITICAL ROUNDUP: SCOZZAFAVA STEPS DOWN FROM LEADERSHIP
>
> New York. Republican Assemblywoman Dede Scozzafava has resigned from her
> position as Assembly minority whip, the Associated Press reported.
> Republican Assembly Minority Leader Brian Kolb says Scozzafava, who
> abruptly withdrew from the 23rd District special election and endorsed
> now-Democratic Rep. Bill Owens, offered her resignation Monday. Scozzafava
> didn't immediately return a call for comment.
>
>
> http://www.nationaljournal.com/congressdai...091110_5947.php
>
> -----
> POLITICAL ROUNDUP: FORMER LAWMAKER PASSES ON SENATE RUN
>
> North Carolina. Former Democratic state Sen. Cal Cunningham, who had been
> considering a bid for the seat held by Republican Sen. Richard Burr,
> announced Monday he would not run. "After a very careful look, I've
> concluded that this is the wrong race at the wrong time for me and my
> family," he wrote to supporters. Secretary of State Elaine Marshall and
> attorney Kenneth Lewis are seeking the Democratic nod, while Democratic
> Rep. Bob Etheridge is considering a bid.
>
>
> http://www.nationaljournal.com/congressdai...091110_1967.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "I come with no space boot. I come with no props to hold me up."
>
> -- Sen. Barbara Mikulski, D-Md., speaking on the Senate floor Monday
> without using a wheelchair or crutches for the first time since breaking
> her ankle in a fall in July.
>
>
> http://www.nationaljournal.com/congressdai...091110_1534.php
>
>

=

[Snuffysmith]

CongressDaily AM for Thursday, Nov. 19, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: REID RELEASES $849B BILL, INITIAL VOTE EXPECTED SATURDAY
> By Anna Edney, with Dan Friedman and Peter Cohn contributing
>
>
> Senate Majority Leader Reid released an $849 billion healthcare > overhaul
> bill Wednesday that includes a public option and will extend > coverage to 31
> million uninsured Americans, though a few Democrats are still on the > fence
> over whether they will vote to proceed to the bill.
>
> The bill would extend insurance to 94 percent of eligible Americans.
>
> The measure, which would reduce the deficit $127 billion over a > decade,
> creates an insurance exchange where people can compare and purchase
> coverage; allows insurance co-ops to be formed; expands Medicaid to > those
> earning 133 percent of the federal poverty level; and offers federal
> subsidies to help those without employer-sponsored coverage purchase
> insurance.
>
> The public option would allow states to opt out if they choose. Sen.
> Christopher Dodd, D-Conn., shepherded a more comprehensive public > option
> through the Health, Education, Labor and Pensions Committee but > called the
> opt-out version a strong public option.
>
> The overhaul also includes an individual mandate with penalties > reaching
> $750 per person for noncompliance by 2016. Employers that do not offer
> coverage will pay a fine for each of their employees who receive > federal
> subsidies to purchase insurance in the exchange of as much as $750 per
> employee at the company, a senior Democratic aide said.
>
> The bill is paid for in part through Medicare cuts; an increase in the
> Medicare payroll tax for individuals making $200,000 or more and > couples
> earning $250,000 or more to 1.95 percent; and a tax on high-cost > "Cadillac"
> insurance plans valued at $8,500 for individuals and $23,000 for > families.
> The Medicare payroll tax will bring in $54 billion and the Cadillac > tax
> raises $149 billion in revenue.
>
> The income thresholds triggering the 0.5 percent increase in the > Medicare
> payroll tax are not indexed for inflation, meaning it will ensnare > more
> people each year. The House bill's "surtax" on the wealthy is not > indexed
> for inflation, and critics will likely note this case can be > compared to
> the alternative minimum tax. Congress has to pass a costly AMT fix > almost
> every year because it was never indexed for inflation.
>
> The medical device tax has been cut in half to $2 billion annually to
> appease Minnesota, Indiana and Massachusetts senators. A fee on > insurers
> remained at $6 billion a year as well as a fee on drugmakers at $2 > billion
> annually.
>
> The bill includes a new 5 percent excise tax on elective cosmetic
> surgeries that would raise $5.8 billion. An earlier 10 percent tax > floating
> around during initial Finance Committee talks was written off by > senators
> at the time, who said no one was seriously considering such a tax.
>
> Democratic Sens. Ben Nelson of Nebraska, Mary Landrieu of Louisiana > and
> Blanche Lincoln of Arkansas were undecided on how they would vote on > the
> motion to proceed, but Landrieu sounded more positive than she has > to this
> point.
>
> "I am now neutral because he gave me some assurances that there > would be
> opportunity for amendments and improvements to the bill," Landrieu > said
> after the three met with Reid.
>
> She said she has concerns with the bill's focus on driving down cost > and
> with the public option. "I understand proponents of the public > option think
> it's necessary to keep insurance companies honest," she said. "I > want to
> reform the insurance industry. I do not want to eliminate them."
>
> Landrieu also met with Interior Secretary Salazar Wednesday, where she
> said they talked mostly about climate issues but also about health > reform.
>
> Democratic leaders' arguments for backing the motion to proceed > hinge on
> their plans to move to a shell bill that will be filled in with the > actual
> bill, Senate Majority Whip Durbin said. Durbin said he will argue that
> Democrats should agree to move to the bill and hash out disagreements
> through the amendment process.
>
> A senior Democratic aide said they expect to vote on the motion to > proceed
> Saturday. Senate Finance Chairman Max Baucus was absent from the bill
> unveiling to be in Montana with his ailing mother. That raises > questions
> whether the vote could be held as planned. "His mom is doing better > today,"
> Reid said. "We'll get him back here when we need him."
>
> While Landrieu appeared near conceding to Durbin's strategy, Lincoln
> avoided reporters Wednesday, and Nelson said he could not make a > decision
> based on the information he had, though he did say he believes the > real
> test will come on the vote to end debate after the amendment process.
>
> The bill includes a long-term insurance program known as the CLASS Act
> that some senators have concerns with, saying its early savings would
> eventually be eaten up by benefits paid to enrollees. Reid attempted > to
> appease them by not applying the $75 billion in savings from the > program to
> the offsets.
>
> On abortion, the bill attempts to extend current law, prohibiting > federal
> funds from being used for abortions by requiring those funds be > segregated
> by private insurers that offer abortion coverage. The HHS secretary > would
> determine if the public option will cover abortion.
>
> That sets up a conflict with the more restrictive House bill. It also
> might face challenges via amendments from anti-abortion senators on > both
> sides of the aisle.
>
> Republican attacks began immediately. "The healthcare reform plan > revealed
> ... reaffirms the intentions of the majority party in Congress to > grow the
> size of our government exponentially, explode federal spending, and > provide
> lower quality, government-run health care for all Americans," Senate > Budget
> ranking member Judd Gregg said in a statement. "Though this plan may > claim
> to be deficit-neutral, it uses sleight-of-hand budgetary tricks by > assuming
> unrealistic tax increases and Medicare cuts that members of Congress > will
> not be willing to follow through on."
>
>
> http://www.nationaljournal.com/congressdai...091119_1264.php
>
> -----
> FINANCE: HOUSE PANEL ADOPTS KANJORSKI PLAN, LOOKS TO WRAP BILL
> By Bill Swindell
>
>
> Sending a message that Congress wants to get tough on Wall Street, the
> House Financial Services Committee Wednesday adopted language that > would
> give regulators pre-emptive authority to break up large financial > firms if
> their size poses a risk to financial markets.
>
> The panel voted 38-29 for an amendment by Capital Markets Subcommittee
> Chairman Paul Kanjorski, D-Pa., that would direct regulators to > consider an
> institution's size as well as its exposure, interconnectedness and > leverage
> when deciding whether they should take action. Their options would > include
> terminating some firm activities, prohibiting mergers and > acquisitions,
> and, in the most extreme case, breaking up a company.
>
> The Kanjorski amendment was attached to legislation creating a > council of
> regulators to guard against major threats to U.S. financial markets. > The
> council would have resolution authority to take over large firms at > risk of
> collapsing and put them into receivership, preventing another case > like
> that of American International Group, where the federal government was
> forced to provide more than $180 billion to prevent its collapse.
>
> Big banks contend Kanjorski's language would harm U.S. companies, > placing
> them at an international disadvantage. But it is less severe than they
> originally feared. Kanjorski included language to make the measure > more
> amenable to the top 50 financial firms that would fall under the new
> oversight.
>
> For example, it would require the council to consider the effect any
> decision might have on U.S. competitiveness and the extent to which > other
> countries are implementing similar rules. In addition, a company > could file
> an appeal following council action, with a hearing no less than 30 > days
> after receiving notice.
>
> Still, Republicans said it would be an unfair taking of private > property.
> "That's a huge accumulation of power that we are going to give to > five or
> six people who are on this council. They all got in a room some day > and
> said, 'You're too big, we are going to dismantle you." said Rep. Randy
> Neugebauer, R-Texas. Kanjorski disagreed, noting the Treasury > secretary
> would have to sign off on any divestiture, transfer or sale of more > than
> $10 billion, and the president would have to approve any such similar
> action totaling more than $100 billion.
>
> "What we are not doing is setting up some backroom decision to take
> somebody. We go through due process here," he said.
>
> Democratic Reps. Dan Maffei and Gregory Meeks of New York and > Melissa Bean
> of Illinois voted against the language. To soften its impact, the > panel
> approved a proposal that Rep. Melvin Watt, D-N.C., offered as a
> second-degree amendment stating that if the council ordered a firm > to sell
> part of its holdings, it must first deem other lesser actions, short > of a
> forced divestiture, as unacceptable to reduce systemic risk.
>
> With adoption of the Kanjorski amendment, Rep. Ed Perlmutter, D-Colo.,
> dropped his measure to give regulators the power to separate a firm's
> traditional banking operations from its riskier activities, such as
> investment banking, on a case-by-case basis.
>
> The panel also approved an amendment by Rep. Brad Miller, D-N.C. to > allow
> regulators to reduce a secured creditors' claim by up to 20 percent > for
> firms that have been taken over by the federal government and placed > into
> receivership. The idea was first raised by FDIC Chairwoman Sheila > Bair. It
> was approved, 34-32.
>
> Other amendments approved Wednesday included:
>
> * An amendment by Rep. Brad Sherman, D-Calif., to sunset by 2013 an > FDIC
> program that guarantees the obligations of solvent financial entities
> facing a liquidity crisis.
>
> * An amendment by Perlmutter exempting credit-card banks from some
> provisions of the Bank Holding Act. Congress has approved such > exemptions
> to banks extending credit to a retail outlet, Perlmutter said. He > said he
> acted at the behest of Nordstrom, which has card center operations in
> Colorado.
>
> * And an amendment by Rep. Walt Minnick, D-Idaho, to drop from 10 > percent
> to 5 percent the portion of a loan lenders have to retain if they > sell it
> onto the secondary market. In certain cases, the retention amount > could go
> down to zero for some loans, like 30-year, fixed-rate mortgages.
>
> The bill is part of the package to revamp the financial regulatory > system.
> Financial Services Chairman Barney Frank hopes to finish the bill > today,
> after debating a proposal to create a $200 billion fund to provide for
> resolution authority for failed firms, and competing measures > allowing GAO
> to audit the Federal Reserve.
>
> On a related issue, Frank and Agriculture Chairman Collin Peterson > have
> agreed to revise legislation placing more regulation on the
> over-the-counter derivatives market to cover foreign exchange swaps > and
> forwards, according to a Frank spokesman.
>
> The Treasury had excluded such trades in their proposal to regulate > the
> market and both panels followed suit. But the exemption has angered
> liberals. Sen. Maria Cantwell, D-Wash., wrote to Treasury Secretary
> Geithner on Oct. 16 asking why he did support coverage of foreign > exchange
> trades, which are used by many companies to hedge their risk against
> currency fluctuations.
>
>
> http://www.nationaljournal.com/congressdai...091119_7322.php
>
> -----
> TAXES: HOYER HOPEFUL HOUSE WILL LOOK AT PERMANENT ESTATE FIX
> By Peter Cohn
>
>
> House Majority Leader Hoyer Wednesday tried to cajole Ways and Means
> Democrats into backing a permanent solution to the estate tax, after > panel
> members largely agreed earlier in the day that a better approach was > to
> pass a one-year patch.
>
> "I'm very hopeful" the House will take up a permanent fix, Hoyer said
> after leaving the panel's second meeting of the day late Wednesday. > He said
> making the tax permanent at its 2009 parameters of a 45 percent rate > and
> $3.5 million exemption was reflected in both President Obama's > budget and
> the Democratic budget resolution, and ought to be approved as a > stand-alone
> "rifle shot" bill, although it was possible other expiring > provisions could
> be added.
>
> "Obviously, the estate tax was in our budget, in the president's > budget,
> as a discrete item and it was in there because we had an event > happening on
> Dec. 31 with regards to this discrete item, and therefore we need to > deal
> with it," Hoyer said. If the estate tax is not extended by the end > of this
> year, it would be repealed altogether for one year in 2010, an outcome
> Democrats would like to avoid.
>
> Ways and Means Chairman Charles Rangel backs a permanent solution,
> although the prevailing sentiment of committee members is to do a > one-year
> fix and set it up for debate as part of the 2010 tax reform effort.
>
> He said after the meeting late Wednesday no decisions have been made > and
> the panel will meet again today to discuss the matter.
>
> Referencing reports after the earlier meeting Wednesday that the > committee
> had settled on a one-year bill, Rangel said reporters ought to check > their
> sources. "All I'm saying is, you have to find out who [the sources > are] and
> wonder about him or her," Rangel said. "I'm doing this to keep you > mentally
> active; you think I enjoy this?"
>
> Rangel nonetheless is among the minority of panel members who think a
> permanent fix is the best approach. Select Revenue Measures > Subcommittee
> Chairman Richard Neal, D-Mass., among others, favors extending it > one year
> is better because that would tee it up for the 2010 tax reform > debate, when
> all of the 2001 and 2003 tax cuts are set to expire. In 2011, if > Congress
> does not act on the estate tax before then, it will rise to 55 > percent and
> the exemption will drop to $1 million.
>
> Rep. Ron Kind, D-Wis., said a one-year fix would allow more time for
> debate and hearings, rather than a rush through a permanent fix in the
> year-end scramble. Others said it made little sense to cut the > estate tax
> for the wealthiest households while unemployment is over 10 percent.
>
> Ways and Means members also questioned whether a permanent solution > at the
> 2009 parameters could pass the Senate. Senate aides questioned > whether even
> a one-year fix could get through, given that Republicans and some > Democrats
> might prefer repeal.
>
> Rep. Earl Pomeroy, D-N.D., a Blue Dog Coalition member who has been
> pushing a permanent fix, said he was considering voting against the > rule
> for floor debate if House leaders brought a one-year bill to the > floor. He
> said letting it lapse might be preferable to a one-year bill because > that
> would ensure timely action next year.
>
> "On our side, we're kind of sick of passing things and having them > sit in
> the Senate until they give us a take-it-or-leave-it proposition at > the end
> of the session, and so we think the best thing to do is move forward > the
> policy that will best serve the country and hope we can get it > enacted," he
> said.
>
>
> http://www.nationaljournal.com/congressdai...091119_8728.php
>
> -----
> TRANSPORTATION: BOTH DEMS, GOP INCREASE PRESSURE FOR SIX-MONTH > EXTENSION
> By Darren Goode
>
>
> Senate Environment and Public Works Committee leaders are pushing
> Transportation Secretary LaHood and other administration officials > to get
> personally involved in ending a bicameral stalemate over extending > surface
> transportation law.
>
> LaHood, they say, needs to pressure House leaders to back -- and > Senate
> leaders to agree to quickly consider -- a plan from Senate > transportation
> leaders to extend current law another six months.
>
> "We need your help now on this standoff," Boxer told two of LaHood's > top
> deputies -- Deputy Transportation Secretary John Porcari and > Undersecretary
> for Policy Roy Kienitz -- at a briefing in her panel Wednesday on the
> status of the Highway Trust Fund. She asked the two officials to send
> LaHood the message "that we need him to move forward now and help us."
>
> Democratic and Republican leaders on three Senate panels -- > Environment
> and Public Works, Banking and Commerce -- along with Senate Finance
> Chairman Max Baucus are backing a six-month extension as a > compromise to
> House objections to an initial push by the administration and Senate
> leaders to extend current law through March 2011.
>
> The five committee leaders in a letter Tuesday also urged Senate > Majority
> Leader Reid and Minority Leader McConnell to overcome the objections > of
> fiscal conservatives by holding a cloture vote soon on their six-month
> plan.
>
> Lawmakers have approved two short-term extensions -- roughly a month > each
> -- since a 2005 law initially expired at the end of September.
>
> But Kienitz noted that these short extensions -- included in two
> continuing resolutions -- mean states are getting 33 percent less in
> federal transportation help per month. "This can't go on > indefinitely and
> it could," without the administration's muscle, Boxer said.
>
> Environment and Public Works ranking member James Inhofe spoke on the
> phone Wednesday with LaHood -- who is in Russia this week -- and > echoed
> Boxer in asking him to get involved, Inhofe's spokesman said.
>
> Inhofe was not at Wednesday's briefing after spending an hour on the
> Senate floor deriding and labeling as dead a cap-and-trade bill Boxer
> reported out of her panel despite a Republican boycott.
>
> But Inhofe and Boxer have often stood side-by-side on transportation
> issues, including backing the administration in initially pushing in
> September an 18-month extension. But after that effort was stymied > chiefly
> by House Transportation and Infrastructure Chairman James Oberstar and
> Environment and Public Works Transportation and Infrastructure > Subcommittee
> ranking member George Voinovich, R-Ohio, they have been trying a > variety of
> shorter extensions. "We are willing to move off the 18-month > extension ...
> to get the two sides together," Boxer said.
>
> Voinovich, Inhofe and House Transportation and Infrastructure ranking
> member John Mica met Wednesday and all agreed to pursue the six-month
> option. "That's pretty much what we've settled on," Mica said. > Voinovich
> also noted at Wednesday's briefing that he was backing that idea. > Porcari
> also said that while the administration still supports the 18-month
> extension, six months was better than another one-month fix.
>
> House Republican leaders, though, are working on an alternative that > would
> be rolled into the overall jobs debate, Mica said. House Democratic > leaders
> have so far backed Oberstar's objections to lengthy extensions to keep
> pressure on lawmakers to act on a six-year bill.
>
> House Transportation and Infrastructure Highways and Transit > Subcommittee
> Chairman Peter DeFazio, D-Ore., Wednesday said there are proposals > swirling
> around that would first increase federal infrastructure funding before
> later tackling overarching policy changes called for in a six-year > bill.
> "But not too much later if we want to spend that money effectively and
> efficiently," DeFazio said. "It's still very much a tug of war here."
>
> DeFazio -- who has supported Oberstar in the debate -- said the > length of
> the next surface transportation extension is "still very much under
> discussion," while noting that, ideally, Congress would increase
> transportation dollars by another $60 billion to help states finance > their
> upcoming construction seasons next year.
>
> Boxer said once a six-month extension is approved, she plans to > quickly
> turn to a six-year bill to see whether it can be finished by next > summer.
> "My hope is to have a full bill" after six months, she said. "In this
> committee, this would be my next priority."
>
> During that same period early next year, she is also expected to > help lead
> the enormous task of trying to get climate and energy legislation > through
> the Senate and possibly a conference committee. Congress also faces > in the
> next months other major bills wrapped in the larger economic debate > heading
> into next year's midterm elections.
>
> But adding federal investments in infrastructure has been an > increasingly
> popular idea in both parties to help lower unemployment. > "Infrastructure at
> least has now become a front-burner issue," DeFazio said.
>
>
> http://www.nationaljournal.com/congressdai...091119_2995.php
>
> -----
> EMPLOYMENT: PARTIES SHARPEN THEIR PARTISAN ATTACKS ABOUT JOB CREATION
> By Billy House, with Dan Friedman contributing
>
>
> While House leaders from both parties insist they are focusing on how
> Congress can help the economy rebound, the two sides seem just as > intent on
> sharpening partisan attacks they can use if the economy continues to > wobble
> in advance of next year's congressional elections.
>
> Republicans have been emphasizing what they see as a failure of > President
> Obama's $787 billion economic stimulus plan pushed through Congress in
> February. They see this week's call by Speaker Pelosi for the House > to move
> a jobs bill by Dec. 18 as a tacit admission by Democrats that the > stimulus
> isn't working.
>
> "Are Democrats in Washington finally admitting their so-called > stimulus
> package was an enormous failure?" House Republican Study Committee > Chairman
> Tom Price of Georgia asked Wednesday. "If so, the real question is, > 'what
> took them so long?' "
>
> A day earlier, House Minority Whip Cantor said House Democrats have, > until
> now, been more focused on climate change and healthcare reform, and
> "leaving a wake of deficits in their trail." Meanwhile, he said,
> Republicans have been working on "real solutions" to the nation's > economic
> woes.
>
> Cantor said he hoped Pelosi would include some of the GOP proposals, > which
> he said focus primarily on business tax breaks aimed at > reinvigorating the
> sluggish economy. But he and other Republicans question Democratic
> seriousness in moving a bill targeted at job growth.
>
> "Republicans have focused on jobs, the economy, and the deficit since
> January, and unlike some, not because our pollsters told us to," said
> Cantor spokesman Brad Dayspring.
>
> That theme is expected to be underscored today as Cantor reconvenes > the
> House Republican Economic Solutions Group. The session will focus on > GOP
> ideas as well as Obama's planned Dec. 3 jobs conference -- the GOP > meeting
> notice calls it a "jobs summit not focused on jobs" and the > Democrats' plan
> for a jobs bill, which the Republicans refer to as "a second stimulus
> bill."
>
> For their part, Democrats led by House Majority Leader Hoyer are
> questioning what besides tax breaks House Republicans have offered > in their
> repeated opposition to Democratic efforts to create jobs during the
> recession.
>
> Hoyer's office issued a statement pointing out that not only did House
> Republicans vote unanimously against Obama's recovery plan in > February, but
> most Republicans voted against a number of other economic-relief > measures.
>
> Only 10 Republicans crossed party lines to help pass a bill to give > the
> Treasury Department power to block federal bailout money from > companies
> that didn't curb excessive executive compensation, and all but 59
> Republicans voted against the "cash for clunkers" program to help > the auto
> industry,
>
> "Republicans have offered little more than empty rhetoric, > distractions,
> and misrepresentations -- playing politics with important issues -- > and
> have overwhelmingly opposed legislation that would spur economic > growth and
> create jobs," Hoyer said. "Votes don't lie. Republicans have > consistently
> said 'no' to creating jobs and helping Americans during this > recession."
>
> In the Senate, Majority Leader Reid has said the jobs bill will follow
> healthcare reform to the Senate floor this year. About 20 Democrats > were
> already meeting Wednesday to talk about what might go into the > package.
>
> "We've got more ideas than we've got room," said Senate Democratic > Policy
> Committee Chairman Byron Dorgan of North Dakota, who with Senate > Majority
> Whip Durbin was heading up Senate work on the bill.
>
>
> http://www.nationaljournal.com/congressdai...091119_4441.php
>
> -----
> HOMELAND SECURITY: HARE ADDS SUPPORT TO GUANTANAMO REPLACEMENT IN > ILLINOIS
> By Richard E. Cohen
>
>
> Rep. Phil Hare, D-Ill., endorsed the controversial proposed
> maximum-security prison for Illinois, with a snipe at Republican > critics
> and an endorsement of its major job-creation benefits.
>
> "I refuse to be part of the fear factor," Hare said Wednesday. "I > prefer
> that we talk about getting people to work. ... I am afraid of [local > home]
> foreclosure and people leaving the area."
>
> After discussions with Obama administration officials over their > plans to
> move detainees from the prison in Guantanamo Bay, Cuba, Hare said > that the
> new facility could add $1 billion to the local economy in four years > and
> create more than 3,000 jobs -- including indirect slots for > individuals
> serving the prison. The "once in a lifetime opportunity" could reduce
> unemployment in nearby areas by as much as half, he said.
>
> The prison is now owned and operated by the state, but it is > underutilized
> because of what Hare called "a miserable job of managing the prisons > in
> this state" by former Gov. Rod Blagojevich, who was impeached and > removed
> from office January following his indictment on federal corruption > charges.
>
> Located in the small town of Thomson in Carroll County, the prison > would
> be one county north of Hare's district in the state's northwest > corner.
> Rep. Donald Manzullo, R-Ill., whose district includes Thomson, has > opposed
> a federal takeover of the facility because it would house "really, > really
> mean people whose job it is to kill people."
>
> Hare attacked as "a political ploy" the recent criticism of the > proposal
> by Rep. Mark Kirk, R-Ill., who is the Republican frontrunner in next > year's
> race for the seat of Sen. Roland Burris, D-Ill. In a letter on > Sunday, Kirk
> wrote, "As home to America's tallest building [the Willis Tower in
> Chicago], we should not invite al-Qaida to make Illinois its number > one
> target."
>
> If Kirk has a better way to get 3,000 jobs for the area, Hare > responded,
> "I would be glad to meet him tomorrow morning."
>
> The Thomson facility has been endorsed by other senior Illinois > Democrats,
> including Gov. Pat Quinn and Senate Majority Whip Durbin. But > Democratic
> Rep. Melissa Bean, who represents another adjoining district, > opposed the
> plan, pending "substantial assurances regarding potential security
> threats."
>
>
> http://www.nationaljournal.com/congressdai...091119_3542.php
>
> -----
> TRADE: OBAMA WANTS KOREA DEAL NEXT YEAR BUT FACES PUSHBACK
> By Peter Cohn
>
>
> President Obama said Wednesday he wants to see the South Korea trade
> agreement negotiated by his predecessor enacted next year, even as a
> coalition of House Democrats urged the White House to adopt a "new
> direction" on trade policy.
>
> Obama arrived in South Korea Wednesday to meet with his counterpart,
> President Lee Myung-bak. Before he left, Obama told Fox News that the
> long-stalled trade deal would be part of the discussions. "I want to > get
> the deal done," Obama said. "The question is whether we can get it > done at
> the beginning of 2010, whether we can get it done at the end of 2010;
> there's still some details that need to be worked out."
>
> The agreement has run into static over concerns about beef and
> automobiles. Progressives have also raised concerns about financial
> services and investment regulations.
>
> "Overall, I think it's a good deal for U.S. exporters, but there's > certain
> sectors of the economy that aren't dealt with as effectively, and > that's
> something that I'm going to be talking to President Lee about," > Obama said.
>
> There remains a great deal of skepticism on Capitol Hill about the > Korea
> pact and expanded trade in general. House Ways and Means Chairman > Charles
> Rangel and Trade Subcommittee Chairman Sander Levin, D-Mich., at a > hearing
> Tuesday said the deal stands little chance of passage unless it is
> renegotiated on more favorable terms for U.S. automakers. Levin on
> Wednesday said he did not view the president's comments as any > different
> from prior statements he's made on the Korea deal.
>
> Others such as Rep. Adam Smith, D-Wash., head of the New Democrat
> Coalition's trade task force, argue it is the most commercially > significant
> deal since the North American Free Trade Agreement, and the United > States
> risks losing ground, particularly to the European Union, which > recently
> inked its own pact with Korea.
>
> With the bilateral deal on hold, attention has turned to the Doha > Round of
> multilateral trade negotiations, with a ministerial to be held Nov. > 30. In
> advance of that meeting, leaders of a group of House progressives on
> Wednesday argued that expanding the World Trade Organization model > would
> worsen conditions for U.S. workers and add to record trade deficits.
>
> "Those of us in Congress who have supported reforming our trade > policies
> believe the current Doha Round framework is bad for the United > States,"
> said the Trade Working Group chairman, Rep. Michael Michaud, D-> Maine. A
> bill he introduced this spring with the support of nearly half the > House
> Democratic Caucus would reopen the agreement establishing the U.S.
> membership in the WTO.
>
> "We cannot continue to simply open up our markets to their goods > when the
> deck is stacked against our workers. Even our trading partners are
> astonished the United States has allowed this hemorrhaging of jobs > to occur
> without even making a peep," added House Rules Chairwoman Louise > Slaughter.
> She has introduced legislation to require reciprocal market access > for U.S.
> goods in any trade deal that lowers tariffs and nontariff barriers > to other
> nations' products.
>
> Slaughter also said that when President George W. Bush submitted
> implementing legislation for a separate pact with Colombia last > year, the
> rule for floor debate included a mechanism switching off trade > promotion
> authority, which normally requires the House to act. "This is the > committee
> that stopped fast track," Slaughter said.
>
>
> http://www.nationaljournal.com/congressdai...091119_5862.php
>
> -----
> PEOPLE: PEOPLE
> By Gregg Sangillo
>
>
> HALL MONITOR. James E. Hall, who was chairman of the National
> Transportation Safety Board during the Clinton administration, is > working
> as of counsel at government relations firm Seward Square Group. Hall's
> former special assistant at NTSB, Jamie Pericola, launched the group > this
> week. Pericola helped launch Hall's firm, Hall & Associates LLC, a > Seward
> client. Hall is a Vietnam War veteran who served as a commissioned > officer
> in the U.S. Army from 1967-1973. He is a graduate of the University of
> Tennessee and is on its board of trustees. The lineup at Seward Square
> Group also includes Ali Amirhooshmand, a former aide for Reps. Roy > Blunt,
> R-Mo., and Cliff Stearns, R-Fla.; and Christopher Pedigo, who was
> legislative director for Rep. Ken Calvert, R-Calif., and Sen. Roger > Wicker,
> R-Miss.
>
> RECONSTITUTED. David Eisner is taking on the position as president and
> chief executive officer of the National Constitution Center. From 2003
> though the end of 2008, Eisner was president and CEO of the > Corporation for
> National and Community Service, which is the federal agency that > overseas
> AmeriCorps, Senior Corps, VISTA and other programs. Eisner was a > former
> senior executive at AOL Time Warner and America Online, and he > directed the
> philanthropic organization AOL Foundation. Eisner is a former > Capitol Hill
> staffer, having worked for three members: Rep. Dana Rohrabacher, R-> Calif.,
> and former Reps. Bill McCollum, R-Fla., and Mac Sweeney, R-Texas. > He's also
> spent time with Fleishman-Hillard and the Legal Services > Corporation. The
> National Constitution Center is located in Philadelphia. Former > President
> Bill Clinton is the center's chairman.
>
> NATIONAL EXECUTIVE. The American-Arab Anti-Discrimination Committee > has
> named Sara Najjar-Wilson to the post of national executive director.
> Najjar-Wilson is a former trial attorney in the Justice Department's > Civil
> Division, and she worked as a senior lawyer at the Office of General
> Counsel at the National Aeronautics and Space Administration. She > has also
> served as the chairwoman of the federal litigation section of the > Federal
> Bar Association. Kareem Shora, who formerly served as the group's > national
> executive director, is a senior policy adviser in the Office of Civil
> Rights and Civil Liberties at the Homeland Security Department. The
> American-Arab Anti-Discrimination Committee is a civil rights > organization
> founded in 1980 by former Sen. James Abourezk, D-S.D.
>
> HE CARES. Jerry Steffl is the vice president of federal affairs for > the
> Pharmaceutical Care Management Association, a national trade > association
> that represent's pharmacy benefit managers. Steffl has formerly > worked for
> Prime Therapeutics, the American Medical Association, the American
> Psychological Association and WellPoint.
>
>
> http://www.nationaljournal.com/congressdai...091119_9553.php
>
> -----
> BALANCE OF PAYMENTS: HEALTH CARE, OVER THERE
> By Bruce Stokes
>
>
> As the Senate wrestles with healthcare reform over the next few > weeks, it
> will leave tens of billions of dollars of potential savings on the > table.
> By simply allowing Medicare recipients who wish to do so to buy their
> medical care abroad, the Senate could enable older Americans to afford
> better care, while achieving significant saving for taxpayers. More
> important, such reform would afford retired Americans an opportunity > for a
> better standard of living.
>
> The opportunity for enormous savings through the outsourcing of > Medicare
> exists because of the gap between the price Americans pay for health > care
> and the price people in other countries pay for comparable health > outcomes.
>
> The average annual per-person cost of health care in the United > States in
> 2006 was $6,714, according to a recent study, "Free Trade in Health > Care:
> The Gains from Globalized Medicare and Medicaid" by the Center for > Economic
> and Policy Research. By comparison, the average per-person cost in 26
> countries with longer life expectancies than the United States was > $2,964.
>
> Economists have long argued that such differences in costs create an
> opportunity to reap great benefits for both sides through > globalization.
> Making Medicare reimbursable overseas is just such an initiative.
>
> CEPR economists Dean Baker and Hye Jin Rho calculate that if only 10
> percent of Medicare beneficiaries opted to live overseas and > purchase their
> health care through foreign medical systems, the U.S. Treasury would > save
> $8.6 billion a year by 2020. By 2030, the projected annual budget > savings
> would increase to $19.5 billion. And by 2045, the annual budget > savings
> could rise to almost $53.9 billion, in current dollars.
>
> Over its first decade, a Medicare voucher system would result in total
> healthcare spending savings of $45 billion. By comparison, the > healthcare
> legislation recently passed by the House would result in a net > reduction in
> federal budget deficits of $104 billion over the 2010 to 2019 period,
> according to an assessment by the Joint Committee on Taxation. So if > the
> Senate were to add Medicare outsourcing to the House bill, it would
> increase potential healthcare savings by 43 percent.
>
> Such a Medicare voucher plan might work something like this: Each > Medicare
> beneficiary would receive a voucher she or he could use to buy into > the
> healthcare system of any country with a longer life expectancy than > the
> United States, to ensure recipients get only the best care. The > voucher
> would allow the beneficiary to move to that country and to be fully > covered
> by its healthcare system.
>
> CEPR proposes that the value of the voucher be based on the average > cost
> of providing care in the countries with longer life expectancies, > plus some
> differential between per-person Medicare expenditures in the United > States
> and that cost.
>
> To provide an inducement for other countries to participate, they > would
> receive a premium above their costs. The U.S. Treasury and Medicare
> beneficiaries would split all savings.
>
> For example, a retiree who moves to Canada, where healthcare costs are
> lower, would pocket $2,722 a year from the savings achieved by > buying into
> the Canadian medical care system. By 2020, that person's benefit check
> would grow to $5,600, supplementing their expected Social Security > benefits
> by 31 percent. With Social Security benefits currently accounting > for more
> than half of the retirement income for two-thirds of retirees, such
> outsourcing would create an opportunity for the elderly to stretch > their
> income and experience a much higher standard of living.
>
> The savings to the U.S. Treasury and the supplemental income for > retirees
> would be even greater if the person chose to retire to a country > with even
> lower medical care costs. A beneficiary would pocket an additional > $4,137 a
> year by retiring to the United Kingdom, for example, and $7,416 by > moving
> to New Zealand.
>
> A Medicare voucher system would be likely to spark investment in > foreign
> countries by Marriott and other U.S. retirement community > entrepreneurs,
> further broadening retirees' opportunity to obtain high quality > health care
> with English-speaking medical personnel at a fraction of the cost in > the
> United States.
>
> U.S. citizens can already receive their Social Security payments > abroad.
> But the absence of affordable, high-quality health care keeps most > seniors
> from considering overseas retirement as an option. By including a > Medicare
> voucher system in its legislation, or even an experiment involving one
> country, such as Canada, the Senate could ensure that such > limitations are
> no longer an obstacle.
>
> Outsourcing of Medicare is an admittedly radical proposition certain > to be
> opposed by U.S. physicians, nurses and other protectionist interests > in the
> U.S. healthcare establishment. But it is the just the kind of
> out-of-the-box thinking that is desperately needed to put America's > health
> care spending on a more sustainable trajectory. And since it would be
> voluntary, if it's a bad idea, it will fail.
>
>
> http://www.nationaljournal.com/congressdai...091119_5589.php
>
> -----
> POLITICAL ROUNDUP: NRSC OUTRAISED DSCC LAST MONTH; DEMS HAVE MORE IN > BANK
>
> The National Republican Senatorial Committee outraised the Democratic
> Senatorial Campaign Committee in October, but the Democrats retain a
> significant edge in cash on hand.
>
> The NRSC reported raising $4 million last month, compared with $3.7
> million for the DSCC.
>
> The Democratic committee has $11.3 million in the bank, compared > with $5.8
> million for the NRSC. After factoring in the DSCC's $2 million in > debt, the
> Democratic group still has a $3.5 million net advantage.
>
>
> http://www.nationaljournal.com/congressdai...091119_3976.php
>
> -----
> POLITICAL ROUNDUP: MAHONEY WON'T SEEK OPEN N.H. SENATE SEAT
>
> Magazine publisher Sean Mahoney, a Republican, has decided not to > run for
> the seat Sen. Judd Gregg, R-N.H., will vacate, the Manchester Union > Leader
> reported.
>
> Since he is a Republican National Committeeman, Mahoney said he > would not
> endorse any candidate.
>
> The Republican field includes former state Attorney General Kelly > Ayotte,
> attorney Ovide Lamontagne and businessmen William Binnie and James > Bender.
>
> Rep. Paul Hodes is running on the Democratic side.
>
>
> http://www.nationaljournal.com/congressdai...091119_6756.php
>
> -----
> POLITICAL ROUNDUP: CAPUANO ANNOUNCES RAISING $1.8 MILLION
>
> Rep. Michael Capuano, D-Mass., raised more than $1.8 million since > Oct. 1
> in the special Senate election race, his campaign announced.
>
> The campaign also said it had $1.1 million on hand.
>
> "We are raising the funds necessary to win this election. This growing
> financial support from Democrats and independents across the state > is a
> great indicator of how well we are doing with those primary voters > who are
> the most engaged," said Capuano.
>
> No other campaign had released their numbers at presstime.
>
> Attorney General Martha Coakley, Boston Celtics co-owner Steve > Pagliuca
> and City Year co-founder Alan Khazei are vying for the Democratic
> nomination.
>
>
> http://www.nationaljournal.com/congressdai...091119_2051.php
>
> -----
> POLITICAL ROUNDUP: ANOTHER REPUBLICAN JOINS RACE FOR MARKEY'S SEAT IN
> COLORADO
>
> Another Republican is planning to challenge freshman Rep. Betsy > Markey,
> D-Colo.
>
> Dean Madere, who works for a heating and air conditioning company, > says
> he's "average" but "frustrated" with the direction of the country.
>
> The Republican race to challenge Markey is getting crowded. Madere > will
> face state Rep. Cory Gardner of Yuma and University of Colorado > regent Tom
> Lucero for the GOP nomination.
>
> The seat was in Republican hands until Markey knocked off Rep. Marilyn
> Musgrave last year.
>
>
> http://www.nationaljournal.com/congressdai...091119_7330.php
>
> -----
> HILL BRIEFS: TAX ON WALL STREET TRADES STILL BEING MULLED IN HOUSE
>
> House Majority Leader Hoyer said Wednesday that a transaction tax on
> securities and other financial instruments is under consideration, > but no
> decisions have been made.
>
> The idea should be looked at "in terms of what that does to > international
> competition and there are concerns about that, but it raises a great > deal
> of money and so it's on the table for that purpose," Hoyer said. > "All the
> items that are on the table right now are being discussed in sort of a
> neutral way."
>
> Members of the House Democratic Caucus are pitching such a tax as a > way to
> make Wall Street pay more of the economic recovery effort, including a
> job-creation package Democrats are working on.
>
> Reps. Peter DeFazio of Oregon, Michael Arcuri of New York and others > are
> circulating a plan they could raise $150 billion annually through a > 0.25
> percent tax on securities trades and a 0.02 percent levy on trades > of other
> financial instruments like futures and swaps.
>
> House Ways and Means Chairman Charles Rangel said no member of > Congress
> has yet approached him about the idea, but that all options to raise
> revenue should be looked at.
>
>
> http://www.nationaljournal.com/congressdai...091119_5837.php
>
> -----
> HILL BRIEFS: COMMITTEE ASSIGNMENTS SET FOR GARAMENDI AND OWENS
>
> The two newest House members received committee assignments > Wednesday at a
> meeting of the House Democratic Steering and Policy Committee.
>
> Rep. Bill Owens, D-N.Y., will take seats on the Armed Services and
> Homeland Security committees. Rep. John Garamendi, D-Calif., is > assigned to
> the Transportation and Infrastructure Committee and the Science > Committee.
>
> Both men were elected Nov. 3 in special elections. Owens won the seat
> vacated by Rep. John McHugh, R-N.Y., when he became secretary of the > Army.
> Garamendi took the seat of Rep. Ellen Tauscher, D-Calif., now an
> undersecretary at the State Department.
>
> Both McHugh and Tauscher had been on the Armed Services Committee, but
> only one vacancy on the panel was still available.
>
> The Democratic Caucus is expected to approve the recommendations at > its
> next meeting.
>
>
> http://www.nationaljournal.com/congressdai...091119_3641.php
>
> -----
> HILL BRIEFS: FREEZE ON CREDIT CARD RATES BLOCKED FROM SENATE ACTION
>
> Senate Banking Chairman Christopher Dodd was thwarted by Republicans
> Wednesday when he sought unanimous consent for passage of a bill to > freeze
> interest rates on credit cards until February.
>
> Sen. Thad Cochran, R-Miss., objected on behalf of several colleagues > when
> Dodd asked for consent to move to the bill Wednesday afternoon.
>
> Dodd argued the bill was necessary to protect consumers from rate
> increases before restrictions on credit card issuers that were > enacted by
> Congress this year take effect in February. He said some banks are > raising
> interest rates now before the restrictions are implemented, jamming
> consumers as they head into what should be the biggest purchasing > season of
> the year.
>
> "This will provide us a window of about 12 weeks between now and > around
> the first of February, during this holiday season, to just put a > stop to
> these outrageous rates and fees being charged to people," Dodd said > of his
> proposed rate freeze.
>
>
> http://www.nationaljournal.com/congressdai...091119_4355.php
>
> -----
> HILL BRIEFS: RANGEL, WAXMAN ASK GAO TO PROBE DRUG-PRICE INCREASES
>
> Recent price increases in some widely used prescription drugs will be
> investigated by the GAO at the request of two House committee > chairmen,
> Reuters reported Wednesday.
>
> Energy and Commerce Chairman Henry Waxman and Ways and Means Chairman
> Charles Rangel asked for the probe in a joint letter that questioned
> whether drug prices are being raised in advance of congressional > action on
> healthcare reform.
>
> Drug manufacturers "may be artificially raising prices for certain
> pharmaceutical products in expectation of new reforms," Rangel and > Waxman
> wrote. "Any price gouging is unacceptable, but anticipatory price > gouging
> is especially offensive."
>
> The two chairmen asked the GAO to compare drug-price increases > against the
> Consumer Price Index and to analyze which drugs had the biggest price
> changes. The report will give Congress a "benchmark of drug > manufacturer
> pricing activity just prior to passage" of a Democratic-written > healthcare
> reform bill, the lawmakers said.
>
>
> http://www.nationaljournal.com/congressdai...091119_1498.php
>
> -----
> HILL BRIEFS: INTERIOR MOVES TO REIN IN MOUNTAINTOP COAL MINING
>
> The Interior Department said Wednesday it will more closely monitor > and
> review state-approved permits for mountaintop coal mining and > tighten the
> federal permitting process to better protect streams from mining > waste.
>
> The department said its actions are designed to serve as interim steps
> until a federal regulation on mountaintop mining can be completed > that will
> impose tighter restrictions on dumping the huge amount of generated > fill
> dirt and waste near and in steam beds.
>
> While America's vast coal reserves are a vital part of the country's
> energy mix, "we have a responsibility to ensure that development is > done in
> a way that protects public health and safety and the environment," > said
> Assistant Interior Secretary Wilma Lewis in a statement outlining the
> actions.
>
> Mountaintop mining has been the source of heated arguments for years
> between mining interests and environmentalists who say it is > destroying
> vast areas of Appalachia and contaminating streambeds and in some > cases
> blocking water flow. The practice is widely used in West Virginia,
> Virginia, Kentucky and Tennessee, producing 130 million tons of coal
> annually.
>
>
> http://www.nationaljournal.com/congressdai...091119_5299.php
>
> -----
> CORRECTION: CORRECTION
>
> An article in Wednesday's CongressDailyAM should have said that public
> debt subject to limit reached $11.975 trillion Monday, according to > the
> Treasury Department.
>
>
> http://www.nationaljournal.com/congressdai...091119_6503.php
>

[Snuffysmith]

>
> CongressDaily AM for Friday, Nov. 20, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: STAGE SET FOR SATURDAY SENATE VOTE ON REID'S PROPOSED BILL
> By Anna Edney and Dan Friedman
>
>
> The Senate will take its first crucial vote on healthcare overhaul
> legislation Saturday night, with three key Democrats appearing to lean
> toward a vote to start debate.
>
> The vote to end a Republican filibuster on the motion to proceed, > should
> it reach the 60-vote threshold, will double as the vote on the > motion to
> proceed, allowing senators to head home for Thanksgiving recess > following
> the 8 p.m. vote.
>
> If cloture is invoked, Majority Leader Reid would immediately call > up his
> bill as a substitute amendment to a House measure that will serve as > the
> shell for the motion to proceed vote.
>
> Sen. Tom Coburn, R-Okla., had threatened to require the clerk to > read the
> 2,000-page bill following the vote on the motion to proceed, but > Reid will
> call up the bill by number only, which prevents a reading.
>
> "I agreed to the wishes of my leadership," Coburn said Thursday after
> Reid's announcement. He said the bill will be posted "in plain > English" on
> his Web site and Republicans will have a chance to read the bill > after the
> holiday.
>
> A Republican leadership aide said that instead of reading the bill > after
> cloture, the GOP won additional hours of debate before the vote > Saturday,
> when their arguments would win more attention. "We got 10 hours of > debate
> in daylight hours, not in the middle of night," the aide said.
>
> Whether Reid will have the votes to break the filibuster Saturday > hangs on
> three member of his Conference: Sens. Blanche Lincoln of Arkansas, > Mary
> Landrieu of Louisiana and Ben Nelson of Nebraska.
>
> All three say they are undecided, but appear to indicate they are > leaning
> toward voting in favor of proceeding to the bill.
>
> Neither Landrieu nor Nelson would say how they will vote, but both
> continue to say they want a chance to debate the bill and that > opposing the
> procedural vote represents a judgment on the Reid bill. That > suggests both
> will vote for cloture.
>
> If so, pressure is increasingly focused on Lincoln, who has not > publicly
> hinted at her position.
>
> Lincoln said Thursday she is reading the bill and has not decided > how to
> vote.
>
> But Lincoln expressed openness to Reid's argument, made in a Wednesday
> meeting to her, Nelson and Landrieu, that Democrats should vote to > proceed
> with the understanding the bill can be altered.
>
> "Without a doubt he has always stressed ... that you gotta believe > in a
> little bit of the process," Lincoln said. "That's what we're here > for. I
> mean, certainly knowing that not all 100 of us are going to agree on
> anything, you gotta be able to depend a little bit on the process. > It gives
> you an opportunity to make the case and move things forward."
>
> She said she will likely announce her plans before Saturday's vote.
>
> "I imagine if I've got the time that I think I do, I'll be able to > finish
> up looking at the bill, and figuring as I said, what the positive > sides are
> and what are the downsides and realizing what my opportunity is > going to be
> to make any changes that I feel like are going to be important," she > said.
>
> Landrieu has been using her leverage to attempt to change the bill > as it
> moves forward and won a particularly sweet deal that could bring > billions
> to her state. Following 2005's Hurricane Katrina, Louisiana saw an > increase
> in per capita income, which led to a significant drop in federal > Medicaid
> funding, Democratic aides said.
>
> Reid included language in the bill that will increase funding by 50
> percent of the total decrease, aides said. The language is still in > flux.
> Landrieu spokesman Rob Sawicki said her vote does not hinge on > inclusion of
> the Medicaid language alone.
>
> One potential trip-up for Landrieu, particularly as the bill nears > final
> passage, is waning small-business support. Landrieu heads the Small
> Business Committee.
>
> The National Federation of Independent Business was optimistic about > the
> Senate Finance Committee's version of the overhaul even though they > had
> some concerns, but the group came out Thursday in opposition to the > $848
> billion bill Reid released Wednesday.
>
> "The impact from these new taxes, a rich benefit package that is more
> costly than what they can afford today, a new government entitlement
> program, and a hard employer mandate equals disaster for small > business,"
> Susan Eckerly, senior vice president of NFIB, said.
>
> The U.S. Chamber of Commerce had been amenable to the Finance bill > with
> the caveat that much improvement was needed. But the Chamber lashed > out
> Thursday against Reid's version, which was meant to be a combination > of the
> Finance measure and one passed by the Senate Health, Education, > Labor and
> Pensions Committee.
>
> "That bothers me because then you could see the underpinnings of key
> support eroding," Sen. Olympia Snowe, R-Maine, said.
>
> Snowe was the only Republican to vote in favor of the Finance bill, > but
> said she has too many concerns with Reid's version to support the > cloture
> vote Saturday.
>
>
> http://www.nationaljournal.com/congressdai...091120_3106.php
>
> -----
> TRADE: REACTION TO MCDERMOTT BILL HARSH, MUTED
> By Peter Cohn
>
>
> African nations and domestic textile interests wasted no time > slamming the
> first serious legislative attempt in the 111th Congress to overhaul > U.S.
> trade preferences, while Bangladesh, a key player on the opposite > side of
> the debate, was lukewarm.
>
> The backlash against the middle-ground approach taken by Rep. Jim
> McDermott, D-Wash., amounts to a tough road ahead next year for the > House
> Ways and Means and Senate Finance committees as they tackle a > patchwork of
> conflicting, decades-old trade benefit programs for the world's > poorest
> countries.
>
> McDermott introduced legislation Wednesday that tried to inject some
> predictability and simplicity. Duty-free benefits for Sub-Saharan > Africa
> and the 131-country Generalized System of Preferences would be > extended as
> far as 2019 to provide a stable investment environment. For the > first time,
> there would be a unified rule of origin for sourcing materials, and > more
> countries would be eligible for duty-free treatment of textile and > apparel
> exports.
>
> Retail and apparel groups and anti-poverty advocates applauded > McDermott
> for laying down an important marker. "We'd like to see it be more > generous
> to all the least-developed countries, but I would say we're fully
> supportive," said Claude Fontheim, chairman of the Trade, Aid and > Security
> Coalition. "This is by far the best bill we've ever seen as far as
> preferences reform."
>
> Expanding apparel market access is of particular benefit to > Bangladesh and
> Cambodia, whose rivals in Sub-Saharan Africa immediately fired off a > letter
> Thursday to House Ways and Means Chairman Charles Rangel and Senate > Finance
> Chairman Max Baucus.
>
> "We are convinced that enactment of a proposal to grant duty-free
> treatment to apparel export giants such as Cambodia and Bangladesh > would
> cause a massive loss of jobs in the poorest African countries and > Haiti,"
> wrote ambassadors from Botswana, Ghana, Madagascar, Malawi, Nigeria,
> Senegal, Sierra Leone, Tanzania and Uganda.
>
> Rosa Whitaker runs an advocacy group that promotes development in > Africa.
> She said it was an attempt by retailers to save money on tariffs, > which ran
> nearly $1 billion last year on imports from Bangladesh and Cambodia. > "This
> is not about poor people, I'm sorry," Whitaker said. "I don't know how
> anybody supporting this bill can go to sleep at night, honestly. I > don't
> see why their conscience wouldn't bother them."
>
> Stephanie Lester of the Retail Industry Leaders Association said the
> measure could "substantially benefit economic development in the > world's
> poorest countries on every continent, providing jobs and opportunity > for
> those presently with neither."
>
> McDermott has tried to bridge the gap between the Sub-Saharan nations
> enjoying duty-free import benefits under the African Growth and > Opportunity
> Act, which he helped to write, and poor countries in Southeast Asia > whose
> benefits are restricted or nonexistent. He has tried to ameliorate the
> concerns of apparel-exporting African countries and others that fear > the
> Asian competition.
>
> "[Whitaker] doesn't want us to give anything to anybody but Africans.
> That's then to say poor people aren't poor people the world over,"
> McDermott said. "And we tailored ways to do this so we didn't hurt the
> Africans, and her position is that it all should go to Africa. Well,
> Cambodia actually has better labor standards than most of the African
> countries, if you want to start looking at specifics."
>
> The bill would place a 50 percent cap on the volume of exports in > certain
> sensitive categories like trousers and knit shirts from countries that
> account for more than 2 percent of overall U.S. apparel imports in a > given
> year, i.e., Bangladesh and Cambodia.
>
> Kazi Alam, commercial counselor at the Bangladesh Embassy in > Washington,
> called the bill a "sincere effort to help us, but we would have > preferred
> to get" full duty-free access.
>
> According to the U.S. Bangladesh Advisory Council, of the five largest
> apparel-exporting nations in Africa, all but one -- Madagascar -- > has a
> higher per capita income than Bangladesh and Cambodia.
>
> The import cap is based on 2007 volume, which African Coalition for > Trade
> President Paul Ryberg noted was a peak year for imports from Cambodia.
> "That year was obviously chosen intentionally," he said. A Cambodian
> embassy official could not be reached for comment.
>
> That cap could increase up to 10 percent each year if the Asian > countries
> source at least 50 percent of the yarns and fabrics in affected > African or
> other nations. And under AGOA, restrictions on imports of agricultural
> goods like sugar, tobacco, beef and dairy would be lifted. That's not
> enough for Africa advocates, for whom textiles and apparel are the > flagship
> industry.
>
> Even with the 50 percent cap, Bangladesh and Cambodia would be able to
> export almost three times as much as the amount Sub-Saharan Africa > ships to
> the United States. National Council of Textile Organizations > President Cass
> Johnson, whose group represents domestic companies, said that, under > the
> bill, the import cap applies across all 20 categories of the most > sensitive
> products.
>
> That means they could put it all into trousers, the most valuable > export
> -- and most sensitive for U.S. producers. "I don't think anyone's
> interested in this bill, that's from Africa or from our industry or > anyone
> else," Johnson said.
>
> McDermott and advocates say its long-term extensions of AGOA and the > GSP
> will provide a more stable investment environment. But Ryberg said > that
> under the bill, AGOA benefits could terminate after 2015 unless > there is an
> agreement in the Doha Round of multilateral trade talks.
>
> It uses a more restrictive United Nations definition of least-> developed
> country, which means countries like Ghana and Kenya could lose > benefits.
> Some of those countries could then obtain GSP benefits, but only > after an
> investigative process to determine whether there is harm to U.S. > producers.
>
> "We want to be sending a signal of stability and continuity and > instead
> we're sending a signal of big question marks whether AGOA goes forward
> beyond 2015 or not," Ryberg said.
>
>
> http://www.nationaljournal.com/congressdai...091120_4206.php
>
> -----
> HEALTH: BOEHNER ATTACKS FEE PROVISION, BUT CLAIM COMES UP SHORT
> By Kasie Hunt
>
>
> House Minority Leader Boehner claimed Thursday that the Senate > Democrats'
> health bill would make Americans who buy public insurance coverage > pay a
> fee to help the plan cover abortion. The problem? The provision he's
> attacking won't dictate premium costs at all.
>
> "Senate Majority Leader Harry Reid's ... massive, 2,074-page bill > would
> levy a new 'abortion premium' fee on Americans in the government-run > plan,"
> said a post on Boehner's leadership blog said under the headline: > "Sen.
> Reid's Government-Run Health Plan Requires a Monthly Abortion Fee."
>
> Boehner attacked a Senate provision that outlines how insurance > companies
> and any public option are required to separate federal money from > private
> premium contributions, a measure aimed at making sure government money
> doesn't cover abortions. Under the long-standing Hyde Amendment, > federal
> money can only pay for abortion services in the event of rape, > incest or to
> save the life of the mother.
>
> The provision requires that companies calculate the actuarial value > of a
> plan's abortion coverage and put at least that much private money --
> collected from individual premiums instead of government subsidies > or tax
> credits -- into a separate account. Abortion claims must be paid > from this
> separate account, and companies "may not estimate such a cost at > less than
> $1 per enrollee, per month."
>
> Boehner pointed to that section as proof of the fee. But the provision
> doesn't dictate coverage requirements, which would affect premiums. > It just
> tells plans how much money needs to be set aside in the separate > account to
> ensure there are enough strictly private funds to pay for abortion > services
> -- and the money in the account can be used to cover the full range of
> healthcare services in addition to abortion.
>
> "In no way do these funds have to be used for abortion services, but > this
> is to ensure that in case an individual elects to have an abortion, > it will
> be paid for with the private funds and not the federal funds," a > Democratic
> aide said.
>
> Under the Senate bill, the HHS secretary would decide whether the > public
> plan would cover abortions prohibited by the Hyde Amendment. The > actuarial
> value of the plan, and therefore its premiums, would be determined > without
> regard to these separate accounting rules, a Democratic aide said.
>
> Abortion-rights supporters say the section is actually a safeguard > that
> makes sure that an insurance company always has enough strictly > private
> money to cover any abortion services its enrollees claim.
>
> "This was something that was meant to meet the concerns of the pro-> life
> groups," said Emily Kryder, spokeswoman for Rep. Lois Capps, D-> Calif. Capps
> was the primary author of the language the Senate ultimately accepted.
>
> Republican leadership aides argue the structure means every person
> enrolled in the plan would end up contributing to the account and > therefore
> paying for abortion. "They're directed at a very minimum to put in a
> dollar, per enrollee, in a separate account for the purpose of > abortion
> services. Where would that dollar come from if not from the > premium?" a
> leadership aide said.
>
> The provisions related to the accounts are part of a structure to > handle
> abortion that anti-abortion advocates dismiss as an "accounting > gimmick."
> In his post, Boehner said that if the public plan covers abortion, > "the
> premium will be paid into a U.S. Treasury account -- and these federal
> funds will be used to pay for the abortion services."
>
> Anti-abortion rights groups argue private money becomes government > money
> as soon as an individual pays a premium to the public plan. "It is
> literally impossible for the public option to pay for abortions > without
> using public funds, because all of the funds spent by the public > option
> will be federal funds," said Douglas Johnson, the legislative > director for
> the National Right to Life Committee. "The 'abortion surcharge' is > part of
> this hoax," he said.
>
> Rep. Bart Stupak, D-Mich., whose more restrictive abortion amendment > was
> adopted by the House in its overhaul, dismissed the Senate language. > "This
> language is a significant departure from current law in several ways,
> including the fact that it would mandate abortion coverage for the > first
> time in history," he said, referring to the Senate bill's > requirement that
> at least one plan offered in the new exchanges offer abortion > coverage.
>
> Abortion-rights supporters say the strict separation of private > premiums
> from federal dollars meets the Hyde Amendment's test and that the > Stupak
> amendment would fundamentally change the status quo.
>
>
> http://www.nationaljournal.com/congressdai...091120_4324.php
>
> -----
> FINANCE: FRANK LOOKING AT MULTIPLE CHANGES TO REFORM PACKAGE
> By Bill Swindell
>
>
> As he readies an overhaul of the nation's financial regulatory system,
> House Financial Services Chairman Barney Frank is already looking at
> avenues to revise the package before it goes to the floor the week > of Dec.
> 7.
>
> At the top of the list is revisiting language his panel approved > Thursday
> that would give sweeping powers to the GAO to audit the Federal > Reserve.
>
> The measure was attached to legislation to create a council of > regulators
> to guard against major threats to financial markets and give it > power to
> take over at-risk firms and place them into receivership to prevent
> bailouts.
>
> The panel was poised to approve the underlying bill Thursday night, > but
> Frank had to scuttle the final vote after members of the Congressional
> Black Caucus withheld their support to protest what they say is > inattention
> by the Obama administration to economic distress in their > communities. (See
> story here.)
>
> By a 43-26 vote, the panel approved an amendment by Rep. Ron Paul,
> R-Texas, requiring an extensive audit of the Fed, which the central > bank
> has lobbied vigorously to prevent. It did so over the objection of > Frank,
> who said he thought Paul's measure would end up dictating where > monetary
> policy should head, such as enhancing inflationary expectations.
>
> But 15 Democrats bolted from Frank on the vote, reflecting concern > over
> how the Fed has handled shipping hundreds of billions of dollars > during the
> banking crisis through its emergency lending powers.
>
> Paul said he refined his measure after Frank raised objections to his
> original bill, which has attracted more than 300 co-sponsors. It would
> prohibit viewing unreleased transcripts of minutes of meetings from > the
> board or the Federal Open Market Committee. The text also states that
> nothing should be construed in the audit that GAO or Congress is
> interfering or dictating monetary policy. In addition, any audit > under the
> Paul language that dealt with individual market actions would only be
> released after 180 days so the findings would not influence trades. > The
> audit would have to be completed one year after enactment.
>
> The adoption of the Paul amendment negated consideration of a rival
> amendment by Domestic Monetary Policy Subcommittee Chairman Melvin > Watt,
> D-N.C., to offer a more limited audit. Critics said Watt's measure > would
> make the GAO's job more difficult to access information.
>
> Rep. Alan Grayson, D-Fla., a co-sponsor of Paul's measure, said Watt's
> language would not erase two restrictions placed on the GAO in its > auditing
> of the central bank, and instead, place four additional limitations > on its
> ability to audit the central bank. "Whatever it gives you with one > hand, it
> takes away with the other," Grayson said.
>
> But Frank shared concerns that would interfere in monetary policy. "I
> think it is going to be seen as weakening the independence of monetary
> policy with consequent negative implication. I think people are > going to be
> worried about implications on the dollar, interest rates."
>
> The measure is the sixth bill of the package that would revamp the
> financial system in the aftermath of last year's banking crisis -- > and the
> most politically difficult given that it touched on such hot spots as
> limiting the Fed's power, creating a $200 billion receivership fund > that
> large firms would be forced to pay into, and giving regulators greater
> power to pre-emptively break up an at-risk institution.
>
> Frank said he intends to hold the final vote on Dec. 1. The panel will
> then only have one bill in the package left to consider, a measure > that
> would create a Federal Insurance Office inside the Treasury > Department.
>
> Frank has signaled he would seek changes to other bills that have > cleared
> his panel, especially a measure that would bring greater regulation > to the
> over-the-counter derivatives market, where he and Agriculture Chairman
> Collin Peterson have been criticized as being too lax toward the big > banks
> that dominate the multitrillion-dollar industry.
>
> The two have agreed to include foreign-exchange swaps and futures for
> supervision in their bill. Frank said that Treasury proposed the > exemption,
> but it could not give them a good reason why it shouldn't be included.
>
> The final House derivatives bill would expand the definition of a
> major-swap participant, which would place it under greater scrutiny, > as
> opposed to end-users that use such transactions for strictly business
> purposes, such as an airline hedging against future jet fuel prices.
>
> Frank said Peterson had agreed to the House Financial Services > language
> that would drop the end-user exemption if the trader would put another
> counterparty at risk. The Agriculture Committee bill had a broader
> definition, only restricting the exemption if the participant put the
> financial system at risk.
>
> The final bill also would include Frank language that would require > that
> capital requirements be above zero.
>
> Frank said he agreed with Agriculture language that would allow a > dispute
> between the SEC and Commodity Futures Trading Commission to be > settled in
> federal court, instead of allowing the Treasury to make the call.
>
> Frank intends to rework language that would give the Financial > Industry
> Regulatory Authority more oversight on investment advisers, and > language
> that would give a large exclusion to auto dealers from having > oversight by
> a proposed Consumer Financial Protection Agency.
>
> On Thursday, the panel approved, 41-28, an amendment by Financial
> Institutions Subcommittee Chairman Luis Gutierrez, D-Ill., to create > a $200
> billion receivership fund. Large firms would be required to pay into > the
> fund to cover the costs of companies placed into receivership by the
> council.
>
> The assessment would be weighted on the basis of each firm's risk to > the
> economy, and companies would get credit for payments made into other > funds,
> such as deposits that insurance carriers make into state guaranty > funds.
>
> But in a key vote, members approved an amendment by Rep. Brad Sherman,
> D-Calif., that would boost the threshold requiring firms to pay into > the
> fund, from $10 billion in assets to $50 billion in assets.
>
> The 52-17 vote was a victory for credit unions and community banks > that
> lobbied for the increase. They feared that their larger institutions > would
> have to pay into a fund to cover risks that primarily came from Wall
> Street.
>
> Community banks registered another win when the panel adopted another
> Gutierrez amendment that would change the formula over assessments > that
> banks must pay into the FDIC Insurance Fund from that one on domestic
> deposits to a firm's total assets.
>
> The change, lobbied heavily by the Independent Community Bankers of
> America, would benefit small banks, with 98 percent of institutions > with
> $10 billion or less in assets paying less for the change. It is > estimated
> to bring in more than $4.5 billion for those community banks. > "Assets are
> inherently more risky than deposits," Gutierrez said.
>
>
> http://www.nationaljournal.com/congressdai...091120_2093.php
>
> -----
> CONGRESSIONAL LEADERSHIP: LINCOLN USING HER NEW GAVEL TO HIGHLIGHT > ARKANSAS
> ISSUES
> By Jerry Hagstrom
>
>
> When Sen. Blanche Lincoln, D-Ark., became chairwoman of the Senate
> Agriculture Committee on Sept. 9, she was asked if she expected the
> chairmanship to help her re-election campaign.
>
> "I certainly hope so," she replied. A few days later, one political
> handicapper said the value of the chairmanship to Lincoln's 2010
> re-election chances would depend on whether she can convince Arkansas
> voters her new power benefits the state.
>
> Early indications are that Lincoln is doing everything in her power to
> maximize the chairmanship for her state.
>
> On Monday, Lincoln will hold the committee's first field hearing > since she
> assumed the chairmanship. It will be in Little Rock, the Arkansas > state
> capital, and it will be held in the most prestigious location in > town, the
> Great Hall of the William J. Clinton Presidential Library. It will > also be
> hosted by the University of Arkansas Clinton School of Public Service,
> giving it an imprimatur of policy seriousness. Three panels will > provide an
> opportunity for 13 Arkansas agriculture and rural leaders to testify > on the
> hearing's title, Revitalizing Rural America.
>
> The next day, Lincoln will hold an Arkansas agriculture and business
> leadership breakfast in the Association of Arkansas Counties Board > Room in
> Little Rock. At the breakfast, attendees will discuss the impact of > U.S.
> agriculture, rural development and forestry policies on the Arkansas > rural
> and small business economy.
>
> Lincoln has also taken other actions to make the Agriculture Committee
> more Arkansas-oriented. Lincoln has named Robert Holifield, a native
> Arkansan who was chief of staff at the Commodity Futures Trading > Commission
> and a former Lincoln aide, as committee staff director.
>
> She has also hired other committee staffers and diminished the roles > of
> staffers hired by her predecessor, Sen. Tom Harkin, D-Iowa. Lincoln > got the
> Agriculture chairmanship after Harkin took the helm of the Health,
> Education, Labor and Pensions panel. The HELP chair was opened with > the
> death in August of former HELP Chairman Edward Kennedy, D-Mass.
>
> On Tuesday, when the Agriculture Committee held a hearing on the
> reauthorization of child nutrition programs, all the witnesses except
> Agriculture Secretary Vilsack came from Arkansas. The witness list
> demonstrated the breadth of Arkansas nutrition interests by including
> anti-hunger advocates and the director of compliance for Wal-Mart, the
> Arkansas-based company that is the world's largest retailer.
>
> On Wednesday, Lincoln's campaign announced a "Lincoln Ag Team, a > group of
> Arkansas voters who support the Senator's commitment to rural > development,
> southern agriculture and farm families."
>
> The team includes David Hillman, a former Arkansas Farm Bureau > president;
> Larry McClendon, a former National Cotton Council chairman; Archie
> Schaffer, executive vice president for corporate affairs at Tyson > Foods
> Inc., as well as people from the state's rice, fish and produce > sectors.
>
> "Sen. Lincoln has been an advocate for Arkansas agriculture her entire
> career. I am proud to support an Arkansan who has worked tirelessly to
> protect our state's poultry industry and to promote Arkansas > agriculture to
> the world," said Schaffer.
>
> The campaign's Web site also stresses Lincoln's connection to rural
> America and the state's farm interests. "As a farmer's daughter from
> Phillips County, I have always cherished my rural upbringing. Almost > half
> of Arkansans live in the country or in communities with less than > 2,500
> people so it's no surprise that our rural way of life is who we are."
>
> Exactly what Lincoln may do with her new authority is unclear. She has
> said she wants to help assure a future for the cotton industry, > which has
> declined in the face of low world prices and constant international > attacks
> on its subsidy programs.
>
> In a release announcing the field hearings, Lincoln said, "When our > nation
> faces difficult economic times, rural Americans are often the first > to feel
> the impact and the last to recover ... Both events will be listening
> sessions to help keep me in tune with the economic needs and > strengths of
> various sectors of the Arkansas economy as I move forward in > constructing
> the Senate Agriculture Committee's agenda."
>
> A host of Republicans have lined up to challenge Lincoln next year,
> perhaps encouraged by strong GOP performances in presidential > elections.
> Sen. John McCain, R-Ariz., beat President Obama, 59-39 last year. And
> former President Bush won the state with 54 percent and 51 percent, > in 2004
> and 2000, respectively.
>
> According to the Arkansas Poll, conducted by the University of > Arkansas
> Survey Research Center from Oct. 14-28, Lincoln's approval rating > was 43
> percent, her disapproval rating was 34 percent and those who did not > know
> or refused to answer stood at 23 percent. Only 6 percent of those > surveyed
> said they were following the 2010 Senate race in the state "very > closely."
>
> The poll of 754 adult Arkansans had a 3.5-point error margin.
>
> Lincoln, a former House member, won her 2004 race, 56-44 percent > against
> Republican Him Holt.
>
> And Democrats hold most of the state's federal offices. Her Senate
> counterpart, Sen. Mark Pryor, is a Democrat who won a second term > last year
> with 80 percent. The House delegation is divided between three > Democrats
> and one Republican.
>
>
> http://www.nationaljournal.com/congressdai...091119_1450.php
>
> -----
> BUDGET: DEBT LIMIT LEGISLATION SEEN AS VEHICLE FOR COMMISSION BILL
> By Humberto Sanchez
>
>
> Republicans in the House and Senate Thursday called on Democratic > leaders
> to hold a separate vote on increasing the $12.1 trillion debt limit > rather
> than including it as part of the FY10 Defense spending bill, as is > being
> considered.
>
> "Congress can no longer stand idly by and allow an increase in our > debt
> limit without a vigorous debate on debt, deficits and spending," Rep.
> Leonard Lance, R-N.J., said at a briefing with four other GOP > freshman.
>
> Earlier this year, the House boosted the debt limit to $13.1 > trillion as
> part of the FY10 budget resolution, but Democratic leaders are > expected to
> increase it above that figure to avoid having to pass another boost > before
> midterm elections next year.
>
> Democratic leaders are mulling whether to include the debt limit > increase
> in the FY10 Defense Appropriations bill, which is expected to be the
> legislative vehicle for unfinished appropriations bills and possibly
> initiatives to create jobs.
>
> But no decision has yet been made on how to pass the debt ceiling
> increase, according to Senate Majority Whip Durbin. He said Congress > has
> until the end of the year to act, according to the Treasury > Department,
> which said the total public debt subject to limit was $11.973 > trillion as
> of Wednesday.
>
> Lance's comments come after he and 27 other House Republicans sent a > Nov.
> 6 letter to House Speaker Pelosi on the matter. They have not > received a
> response, Lance said.
>
> Lance and the other four -- Reps. Lynn Jenkins, R-Kan., Erik Paulsen,
> R-Minn., Christopher Lee, R-N.Y., and Pete Olson, R-Texas -- > Thursday said
> they would support an increase in the debt limit if it is a separate > vote
> and if Congress acts to establish a commission that would make
> recommendations to reduce the deficit. Legislation to establish such a
> panel has been introduced in both the House and Senate.
>
> "There has to be some sort of fundamental analysis moving forward > about
> how we can get on a glide-path toward a balanced budget," Lance said.
>
> Earlier this week, the House Blue Dog Coalition threw its support > behind
> commission legislation, which now has 100 co-sponsors.
>
> Across the Capitol, a group of senators is eyeing the debt ceiling
> increase as leverage for action on commission legislation. Senate > Budget
> Chairman Kent Conrad said Thursday that discussions on the issue with
> Senate Majority Leader Reid continue.
>
> "This is hard to do," said Conrad, who is working on a deficit > commission
> proposal with Budget ranking member Judd Gregg.
>
> Gregg Thursday reiterated that he will seek to strike the debt limit
> increase if it is included in the final version of the Defense bill.
>
> He said Republicans also want to offer the Conrad-Gregg commission
> legislation as an amendment to the debt limit as well as offer > amendments
> that would set a discretionary spending freeze, rescind stimulus > funding,
> and require that any repayment of financial rescue funds be used to > reduce
> the debt.
>
>
> http://www.nationaljournal.com/congressdai...091120_2633.php
>
> -----
> JUDICIARY: PANELS WRESTLE WITH DEMANDS FOR PRIVACY, E-COMMERCE
> By Otto Kreisher
>
>
> A conflict between advocates of protecting individual privacy and > those
> favoring robust "e-commerce" played out Thursday at a joint hearing > of two
> House Energy and Commerce subcommittees.
>
> The panels themselves -- the Commerce, Trade and Consumer Protection
> Subcommittee and the Communications Subcommittee -- split somewhat > along
> party lines in their emphasis on those two concerns. And the six > witnesses
> were divided based on whether they represented companies that > collect, sell
> or use consumer data or were consumer privacy advocates.
>
> Although witnesses pointed out that the collection and commercial > use of
> information on consumers began a century ago, they agreed that the > advent
> of the Internet has vastly expanded the ability to gather detailed > data on
> people's economic, social and medical status, their shopping > preferences
> and even sexual orientation.
>
> That information can be obtained from something as simple as > ordering a
> take-out pizza and can be used for both legitimate business purposes > and
> for illicit activities, the witnesses said.
>
> Chris Hoofnagle, director of information privacy programs at the
> University of California at Berkeley Law School, pointed out that many
> government agencies also contract with companies to collect data.
>
> The closest thing to a common ground between the business and privacy
> proponents was the view that individuals should be able to know what
> information on them is collected and how it is used.
>
> Energy and Commerce Chairman Henry Waxman noted in a statement that
> consumers "have few rights with respect to the collection and use" > of their
> personal information. Waxman said he looked forward to working with
> committee members "to give consumers tools to protect their privacy > without
> unduly burdening industry or stifling innovation."
>
> Communications Subcommittee ranking member Cliff Stearns, R-Fla., said
> consumers should have access to the information that has been > collected on
> them and have the right "to opt in or opt out" of its distribution. > But
> Stearns expressed concern that "if we get too far down in the weeds" > on
> trying to regulate the collection and use of the data it could > handicap the
> rapidly expanding Internet-based businesses, or "e-commerce."
>
> Members said draft legislation to address the issue was being > prepared by
> the chairmen and ranking members of both subcommittees.
>
> Representatives of firms that gather and share consumer information
> defended the practices as a vital part of business and in the > consumers'
> interest. They also insisted they are scrupulous in protecting > sensitive
> information from being misused.
>
> George Pappachen, chief privacy officer for London-based Kantar > Group, an
> international market research giant, and its parent company, WPP, > whose
> holdings include marketing and public relations firms, said his > clients had
> joined an FTC staff process to develop a "self-regulatory framework to
> address the issues raised by congressional and regulatory concerns."
>
> But Pam Dixon, executive director of the public interest research > group
> World Privacy Forum, warned that the data collected online and > offline can
> create a "profoundly detailed" portrait of individuals, to which > they have
> no access and which can be used to harm them.
>
>
> http://www.nationaljournal.com/congressdai...091120_1287.php
>
> -----
> FINANCE: CBC, FRUSTRATED BY WHITE HOUSE, SLOWS OVERHAUL MEASURE
> By Billy House
>
>
> Quietly held meetings this week between Congressional Black Caucus > members
> and top Obama administration officials failed to iron out growing
> frustrations that forced postponement of a House Financial Services > vote on
> legislation that would overhaul the nation's financial regulatory > system.
>
> In announcing a delay in the committee's vote, Financial Services > Chairman
> Barney Frank said he understood some of the Black Caucus' frustration
> because "you are talking about people whose constituents ... have been
> badly hammered by this and are concerned."
>
> In raising concerns about the legislation, CBC members of the > Financial
> Services Committee met with Treasury Secretary Geithner, White House > Chief
> of Staff Emanuel and FDIC Chairwoman Sheila Bair, sources said. At > those
> meetings, CBC members expressed concerns that the administration was > not
> adequately addressing the needs of many segments of the black > community.
>
> The CBC referred inquiries about the matter to Rep. Maxine Waters,
> D-Calif., who issued a one-paragraph statement.
>
> "The recession has created a unique systemic risk that threatens all > parts
> of the African-American community, including the poor and the middle
> class," the statement said. "I have always been committed to > addressing
> that risk and will continue to do so. This is a critical issue for my
> constituents."
>
>
> http://www.nationaljournal.com/congressdai...091120_6109.php
>
> -----
> TRANSPORTATION: HAZARDOUS MATERIALS TRANSPORT SAFETY BILL CLEARS PANEL
> By Chris Strohm
>
>
> The House Transportation and Infrastructure Committee on Thursday > approved
> a bill aimed at improving the security of hazardous materials being
> transported by truck and aircraft, after defeating a Republican > effort to
> strip a provision governing the shipping of lithium cells and > batteries
> aboard cargo airplanes.
>
> Lawmakers said the bill, which passed by voice vote, is needed > because the
> Pipeline and Hazardous Materials Safety Administration has neglected > to
> enforce or put in place needed regulations, especially after the
> Transportation Department's inspector general reported this summer on
> security lapses within the agency's safety program.
>
> "This agency has failed at every step," said Transportation and
> Infrastructure Chairman James Oberstar. "PHMSA has failed at its > safety
> mission."
>
> The bill would reauthorize the hazardous materials safety program, > which
> expired at the end of September 2008. It includes requirements to
> strengthen emergency response capabilities, such as enhanced > training for
> emergency responders and the development of minimum standards for > those who
> provide information services for handling hazardous materials.
>
> It would also nearly double the number of PHMSA investigators to 65 > and
> would require the agency to develop uniform standards for > investigators to
> train them on how to collect, analyze and publish findings from > accidents
> and incidents.
>
> But Republicans took aim at one of the most controversial sections > of the
> bill.
>
> An amendment from Rep. Bob Latta, R-Ohio, to strip a provision that
> requires PHMSA to issue a regulation for the safe transportation of > lithium
> cells and batteries aboard cargo airplanes was defeated, 26-44. > Notably, a
> committee spokeswoman said that was the first recorded vote the > committee
> has taken since September 2007.
>
> Under the bill, the regulation must include requirements for the > proper
> identification of lithium cells and batteries on cargo planes, > packaging
> specifications and limits on the number of packages of batteries > that can
> be transported at a time.
>
> Republicans argued the bill language is overly proscriptive and > could have
> a negative impact on businesses that rely on air transport of > lithium cells
> and batteries.
>
> Democrats countered that Obama administration officials support the
> language in the bill. They said lithium cells and batteries could > overheat
> and erupt in flames, and that the intent of the bill is to be > proactive to
> prevent a catastrophe.
>
> In a bit of political theater, Transportation and Infrastructure > ranking
> member John Mica offered an amendment that would prohibit laptop > computers
> with lithium batteries from being brought aboard passenger aircraft > until
> fire-resistant containers for them are developed.
>
> The amendment had no chance of passing, as even Mica voted against > it, and
> it failed 61-0.
>
> Notably, the bill also includes a provision that would prohibit cargo
> trucks from operating on roadways if they have flammable liquids > inside
> unprotected external pipes. The pipes, commonly called wetlines, are > used
> to pump flammable liquids into protected cargo tanks.
>
> Under a manager's amendment from Oberstar, which was approved by voice
> vote, the prohibition would not go into effect for existing cargo > trucks
> until 2025. That would give the trucking industry time to retrofit > their
> vehicles.
>
> Additionally, the Transportation Department could give a trucking > company
> a waiver after that time if needed, according to the manager's > amendment.
> The prohibition would go into effect for newly manufactured trucks two
> years after the bill is enacted.
>
>
> http://www.nationaljournal.com/congressdai...091120_4104.php
>
> -----
> HEALTH: HOUSE PASSES PHYSICIAN FIX, BUT SENATE FATE IS DUBIOUS
> By Kasie Hunt
>
>
> The House Thursday passed a $210 billion bill to stave off massive > cuts in
> Medicare's reimbursement rates to physicians and make permanent > changes to
> the formula used to determine how much they are paid.
>
> One Republican joined 242 Democrats to pass the bill, 243-183. Eleven
> Democrats voted against it.
>
> "This legislation will permanently improve the way Medicare pays
> physicians and in doing so, guarantee that America's seniors will > continue
> to have access to excellent care through Medicare," House Speaker > Pelosi
> said.
>
> The bill will stave off a 21 percent cut in physicians' fees slated to
> take effect Jan. 1 and permanently change the payment formula, known > as the
> sustainable growth rate, so Congress does not need to pass an annual > fix.
>
> The bill is unlikely to move in the Senate. Majority Leader Reid > tried to
> move the measure this year but was unable to muster the 60 votes to > bring
> it to debate on the floor. Part of the problem stems from the House > pay/go
> rules that will be attached to the bill.
>
> Republicans attacked the measure as increasing the deficit. "Speaker > Nancy
> Pelosi and House Democrats have voted to add nearly $300 billion to > the
> deficit just days after the national debt topped $12 trillion for > the first
> time in U.S. history," Minority Leader Boehner said in a statement.
>
> The bill was originally part of health reform legislation, and the > rule
> allowing for its consideration was packaged with the overhaul's rule > that
> passed on Nov. 7. The permanent fix helped secure the American Medical
> Association's endorsement of the health reform bill.
>
> Democrats aren't the only ones concerned about the physicians' lobby.
> House Ways and Means ranking member Dave Camp sent a letter to AMA
> President James Rohack Wednesday insisting Republicans support the > spirit
> of the bill. "We support the intent of this act to stop the 21 percent
> payment cut you face next year and the roughly 5 percent cut > projected for
> each of the next several years thereafter. What we cannot support is > the
> deficit spending in this legislation," the letter said.
>
> Rohack was not mollified. "We appreciate your agreement that having
> physicians face annual cuts due to the flawed SGR is unacceptable > and your
> support for the intent of the legislation," Rohack wrote. "We are
> disappointed, however, that you and your colleagues do not support the
> bill."
>
> He pointed out that Ways and Means Republicans pushed the original SGR
> through their committee in 1997. "At the time, the AMA wrote numerous
> letters to Speaker [Newt] Gingrich and your committee leadership > warning
> that limiting growth in physician services to GDP would inevitably > lead to
> sharp cuts in physician reimbursement," Rohack wrote.
>
> In the summer, House Ways and Means Republicans supported a committee
> amendment that would have implemented much of the House bill that > passed
> Thursday.
>
>
> http://www.nationaljournal.com/congressdai...091120_2416.php
>
> -----
> HEALTH: ABORTION ISSUE PRODUCES RARE SPLIT BETWEEN NEB. SENATORS
> By Dan Friedman
>
>
> As Republicans worked Thursday to deny any distinction between > Saturday's
> procedural vote and support for Senate Majority Leader Reid's > healthcare
> overhaul bill, Sen. Mike Johanns, R-Neb., appeared to be pressuring > his
> home state colleague, Democratic Sen. Ben. Nelson, on the hot-button > topic
> of abortion rights.
>
> Though both senators said recent comments by Johanns are not aimed > only at
> Nelson, Democratic and GOP aides said the exchange represents an > unusual
> intrastate disagreement. Senators often avoid attacks on home-state
> colleagues from the other party.
>
> In a floor speech, press call and news conference Thursday, Johanns
> attacked arguments by Democrats who say a vote for cloture on the > motion to
> proceed is not a vote for the contents of Reid's bill. Johanns > focused on
> the bill's abortion language, arguing any anti-abortion rights > Democrat
> should oppose it as an expansion of abortion rights.
>
> "This motion to proceed is the key vote for the pro-life community > on ...
> this bill," Johanns said. "This first vote is the key vote. ... Now, > some
> of my colleagues might also argue that, if you don't like the bill, > then we
> can proceed to amend it. I can't see, though, how a pro-life senator > could
> take that position."
>
> Both Democratic and Republican aides said the comment appeared aimed > at a
> statement issued Wednesday by Nelson that said arguments that voting > for
> the motion to proceed is the same as voting for the Reid bill "are
> misinformed or intentionally trying to mislead people."
>
> Nelson has not announced how he will vote. He has argued senators > should
> be able to debate and amend Reid's bill, which cannot occur without 60
> votes for cloture, one of which would likely have to be his.
>
> Johanns said his comments were aimed at influencing any anti-abortion
> rights Democrats, not just Nelson. But two GOP aides said that while
> Johanns' lead on the issue reflected his own interest in the matter, > it is
> not a coincidence that the Republican taking the lead on framing the
> initial procedural vote as supporting abortion rights is from the same
> state as the only wavering Democratic senator who has said abortion > will
> affect his vote on Reid's bill.
>
> Nelson said he accepts Johanns at his word that the attacks are not
> personal.
>
> But he said, "Apparently, he and I have a different view of how > cloture
> works. I've got nine years here of experience of how I will support > motions
> and if I decide to vote for it, I will be very satisfied with my > vote on
> the motion to proceed. That is no forecast for what I would do on > the back
> end."
>
> Reid's bill would extend current law, blocking use of federal funds > for
> abortion by requiring the funds be segregated by private insurers that
> offer abortion coverage. The HHS secretary would decide if the public
> option covers abortion.
>
> That is less restrictive than the House bill, which included abortion
> restriction language offered by Rep. Bart Stupak, D-Mich. Johanns > said the
> Stupak language should be in the Senate bill.
>
> Nelson also said he backs language "more like Stupak" but says > abortion is
> just one of many issues that affect his vote and has said he will not
> oppose cloture on the motion to proceed over abortion alone.
>
>
> http://www.nationaljournal.com/congressdai...091120_3308.php
>
> -----
> PEOPLE: PEOPLE
> By Gregg Sangillo
>
>
> INTERNAL AFFAIRS. There have been some changes of late at the House
> Foreign Affairs Committee. Janice Kaguyutan is working at the > committee as
> deputy chief counsel. Kaguyutan worked for the late Senate Health,
> Education, Labor and Pensions Chairman Edward Kennedy, D-Mass., as his
> senior counsel. Kaguyutan is a former attorney with the National
> Organization for Women's Legal Defense and Education Fund. At the > Foreign
> Affairs Committee, Kaguyutan is replacing Kristin Wells, who has > signed on
> as a partner with Patton Boggs. According to a release from the > firm, she
> will work with public policy and international law teams to "help > corporate
> clients in their dealings with foreign governments and legal > systems, as
> well as international markets." Wells, who worked for Foreign Affairs
> Chairman Howard Berman, as well as his predecessor, the late Rep. Tom
> Lantos, D-Calif., dealt with issues such as international refugee > policy
> and immigration matters, international women's issues, and consular
> affairs. While working on Capitol Hill, she had a hand in > congressional
> resolutions declaring genocide in Darfur, the Intelligence Reform > Act of
> 2004, and the Tuberculosis and Malaria Reauthorization Act of 2008. > She
> also worked as counsel at the House Judiciary Committee under > Judiciary
> Chairman John Conyers when he was ranking member. In addition to the
> departure of Wells, Foreign Affairs Committee Chief Counsel David
> Abramowitz recently took a position as director of policy and > government
> relations in Humanity United's Washington office. The committee has > not
> named a replacement for Abramowitz.
>
> NEXT LANE. The American Road & Transportation Builders Association has
> promoted Dean Franks to director of congressional affairs. Franks > joined
> ARTBA in 2006 as a legislative representative. Franks started in > politics
> volunteering for Maryland Democrat Mark Shriver's 2002 congressional
> primary campaign, which Shriver lost to current Rep. Chris Van Hollen,
> D-Md. Despite having worked for a Democrat -- and a member of the > Kennedy
> clan, no less -- Franks was also willing to switch to the other side > of the
> aisle and take a job on Capitol Hill with Rep. Judy Biggert, R-Ill. > "It was
> more about experience and trying to get my foot in the door. And
> fortunately, I worked for Congresswoman Biggert, who is great and
> bipartisan and pretty moderate," says Franks, who worked as a > legislative
> aide on defense and military issues for her. One of the issues > Franks is
> following is surface transportation reauthorization, extended after > its
> expiration Sept. 30. Franks is originally from Mokena, in the > southwest
> suburbs of Chicago. To the eternal question, "Cubs or White Sox?" > Franks is
> unequivocal. "I'm a huge White Sox fan; I hate the Cubs."
>
>
> http://www.nationaljournal.com/congressdai...091120_9667.php
>
> -----
> 1600: DISTANT REPLAY
> By George E. Condon Jr.
>
>
> On the heels of gubernatorial victories in New Jersey and Virginia,
> exultant Republicans began suggesting that these twin wins might > presage
> the kind of electoral sweep in next year's congressional elections > unseen
> since 1994, when they took over both the House and the Senate.
>
> The reasons for the optimism were obvious -- independents who had
> supported Democrats in both 2006 and 2008 turned sharply toward the > GOP in
> 2009, just as in 1993 and 1994; health care reform still doesn't > have the
> votes needed, just as in 1994; and voters are increasingly angry and
> convinced the country is headed on the wrong track, again just as in > 1994.
>
> "Boy, this is eerily reminiscent of what we experienced in '93, a year
> out," said Dan Leonard, who was communications director of the > National
> Republican Congressional Committee for the 1994 elections. "Then, we > ha

[Snuffysmith]

>
> CongressDaily PM for Friday, Nov. 20, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: NELSON TO VOTE FOR CLOTURE SATURDAY
> By Anna Edney, with Dan Friedman contributing
>
>
> One of three Democrats who held out saying whether he will vote for
> cloture on the motion to proceed to healthcare overhaul legislation
> Saturday today said he will vote in favor of the motion, making it > likely
> Democrats will have the 60 votes they need to begin debate.
>
> Sen. Ben Nelson, D-Neb., said he will vote for cloture but cautioned > that
> does not mean he supports the bill.
>
> "It is only to begin debate and an opportunity to make improvements,"
> Nelson said. "If you don't like a bill, why block your own > opportunity to
> amend it?"
>
> He added he retained his prerogative to join an expected Republican
> filibuster to block a final vote on the bill if changes are not made.
>
> For his part, Senate Majority Whip Durbin backed off a statement he > made
> earlier today when asked whether Sen. Blanche Lincoln, D-Ark., another
> moderate withholding her vote along with Sen. Mary Landrieu, D-La., > had
> shared how she will vote. "She's told Sen. Reid," he responded.
>
> Durbin said his remark was misinterpreted.
>
> "Sen. Lincoln has had a number of conversations with Sen. Reid about > the
> healthcare reform legislation," he said. "But Sen. Lincoln has not yet
> signaled her intention as to how she will vote on tomorrow's cloture
> motion."
>
> Lincoln's office said she is reviewing the bill, and a spokeswoman > said,
> "No other senator speaks for Sen. Lincoln."
>
> Lincoln appears to have embraced the party leaders' argument that
> Democrats should vote to move to the bill, even if they oppose it, > and try
> to change it on the floor. "Knowing that not all 100 of us are going > to be
> able to agree on anything, you have got be able to depend a little > bit on
> the process," Lincoln said Thursday. "It gives you an opportunity to > make
> the case and move things forward."
>
> Landrieu has not revealed how she will vote but appeared in the last > few
> days to be leaning toward approval to allow debate to begin.
>
> "We're not assuming a thing," Durbin said. "We're working hard to > bring
> all Democrats together."
>
> Republicans will have a chance to offer an alternative bill if they > want
> to, Durbin said, but leaders will work to unite Democrats to keep > the GOP
> from dragging out the amendment process.
>
> "That will mean changing some of the current provisions in our bill, > I'm
> sure, before we get to final passage," he said of getting Democrats on
> board. "If you think we're just going to sit here 30 hours after 30 > hours
> after 30 hours until it's Jan. 1, it's not going to happen."
>
> As Reid works to bring Democrats on board, Sen. Ron Wyden, D-Ore.,
> announced a deal today with the leader to include in the overhaul his
> proposal to open the exchange to some people with employer-sponsored
> insurance.
>
> The legislation originally exempted people earning 400 percent of the
> federal poverty level or less from a requirement to have coverage if > their
> premiums total between 8 and 9.8 percent of income. Wyden's proposal > allows
> them to convert their tax-free employer health subsidies into a > voucher to
> purchase insurance on the exchange.
>
> Republicans today used fresh guidelines from a government panel > regarding
> breast cancer screening to claim the Democrats' bill will lead to > rationing
> of care. Sen. Lisa Murkowski, R-Alaska, said the looser guidelines > are a
> peek at what will happen when the government is more involved in > health
> care and influences insurance coverage decisions to the detriment of > women.
>
> "This is how rationing starts," Senate Minority Whip Kyl said.
>
> Durbin pointed out today that many experts, including those in the
> administration, have rejected the mammogram recommendations. Asked > how that
> rejection will bode for the overhaul's attempt to employ comparative
> effectiveness research to cut down on unnecessary care, Durbin said, > "Just
> because a panel of doctors comes to a conclusion doesn't mean it's
> necessarily the right conclusion."
>
>
> http://www.nationaljournal.com/congressdai...091120_7881.php
>
> -----
> ETHICS: SENATE PANEL SAYS BURRIS MISLED OFFICIALS
> By Dan Friedman
>
>
> The Senate Ethics Committee today admonished Sen. Roland Burris, D-> Ill.,
> for misleading state lawmakers investigating the circumstances of his
> appointment, faulting him for "actions and statements that reflect
> unfavorably on the Senate."
>
> But the committee, in a letter posted on the panel's Web site,
> acknowledged finding "no actionable violations of law."
>
> "The committee found that you should have known that you were > providing
> incorrect, inconsistent, misleading, or incomplete information to the
> public, the Senate and those conducting legitimate inquiries into your
> appointment to the Senate," the letter from six committee members > said.
>
> The investigation addressed Burris' testimony to an Illinois House
> Committee investigating former Illinois Gov. Rod Blagojevich's alleged
> attempt to sell an appointment to the Senate and his contacts with
> Blagojevich, who was later impeached.
>
> The finding will have little practical effect. Burris has announced he
> will not run for the seat next year.
>
> The committee claimed jurisdiction to review the dealings with > Blagojevich
> and his testimony to investigating state lawmakers because "they were
> inextricably linked to your appointment."
>
> It said its decision to issue "a qualified admonition" but to cite no
> legal violations reflected factors including a decision by a Sangamon
> County state's attorney not to charge Burris with perjury and the > "intense
> public criticism" his seating has already received.
>
> Burris was appointed in December, after Blagojevich had already been
> arrested. After initially refusing to seat Burris, Senate Majority > Leader
> Reid and other top Democrats agreed to admit him, provided he could > show he
> was not implicated in Blagojevich's attempts to trade the seat for > campaign
> cash and other favors.
>
> But the committee found that in a Jan. 5 affidavit to an Illinois > House
> impeachment panel and in subsequent sworn testimony, Burris gave
> "inconsistent, incomplete and misleading" answers when he did not > mention
> conversations with Blagojevich associates about his desire for the
> appointment. Burris revised his account.
>
> "Your testimony ... was one of the factors the Senate leadership > said they
> would consider in your seating, and its truthfulness was important and
> relevant to your seating," the committee wrote. "Your shifting > explanations
> about your sworn statements appear less than candid."
>
> The committee faulted as "inappropriate" a Nov. 13, 2008, call in > which
> Burris asked Blagojevich's brother for the appointment and suggested > he
> would raise money for the governor.
>
> Burris put a positive spin on the findings. "I am pleased that after
> numerous investigations, this matter has finally come to a close," > he said
> in a statement. "I thank the members of the Senate Ethics Committee > for
> their fair and thorough review of this matter, and now look forward to
> continuing the important work ahead on behalf of the people of > Illinois."
>
> But Ethics Committee observers said the letter was notably harsh.
>
> The tone of the letter "is unusual for the committee," said Melanie > Sloan,
> executive director of Citizens for Responsibility and Ethics in > Washington.
>
> "It's really critical ... and I think that is about the fact that he > lied
> to them," Sloan said. "He sat there and lied to Harry Reid."
>
>
> http://www.nationaljournal.com/congressdai...091120_6934.php
>
> -----
> APPROPRIATIONS: FOUR BILLS CONSIDERED FOR OMNIBUS
> By Humberto Sanchez and Dan Friedman
>
>
> Senate Democrats are weighing which spending bill to use as the
> legislative vehicle for an end-of-the-year omnibus package from a > list of
> the Military Construction-VA, Transportation-HUD, Commerce-Justice-> Science
> and Defense Appropriations bills.
>
> "Everything is on the table for us to get out of here" by Christmas, > said
> Senate Transportation-HUD Appropriations Subcommittee Chairwoman Patty
> Murray, D-Wash., who is a member of the Senate Democratic > leadership. "I
> think there are directions we can go, certainly MilCon, Defense is out
> there and C-J-S," in addition to the transportation measure, she said.
>
> Her comments came after Senate Democratic leaders had indicated they > were
> strongly leaning toward using the Defense spending bill as the > vehicle.
>
> Only five of the 12 annual appropriations bills have been signed by
> President Obama, while Military Construction-VA, Defense,
> Transportation-HUD and C-J-S are waiting for House and Senate > negotiators
> to agree on final versions.
>
> However, action on the C-J-S bill has been stalled by concerns from
> Democratic leaders over a motion to recommit that Republicans are > expected
> to offer that would prohibit the transfer or release of prisoners > held at
> Guantanamo Bay, Cuba, even for the purpose of prosecuting them in the
> United States.
>
> Last week, the Obama administration announced it will prosecute five
> individuals charged with committing the Sept. 11, 2001, World Trade > Center
> attacks in federal court in New York. They include Khalid Sheikh > Mohammed,
> the man charged with co-planning the attacks.
>
> At a news conference today, Senate Majority Whip Durbin stressed > Democrats
> will need Republican cooperation to finish FY10 appropriations, > especially
> given that Senate Democrats want to complete work on healthcare reform
> legislation before the end of the year.
>
> "That will mean that we are going to have to ask for something > that's been
> a rare commodity around here, cooperation from the other side, to at > least
> bring up these important measures," Durbin said, adding that > Republican
> cooperation has not been forthcoming this year.
>
>
> http://www.nationaljournal.com/congressdai...091120_5095.php
>
> -----
> TAXES: GRASSLEY: NOMINEES LAX ON COMPLIANCE
> By Peter Cohn
>
>
> Senate Finance ranking member Charles Grassley took a swipe today at > the
> White House and congressional Democrats for not taking nominees' tax
> troubles seriously enough.
>
> "The bar has definitely been lowered with this administration's > nominees,
> in regard to tax compliance," Grassley said at the outset of a > hearing on
> Treasury Department nominees.
>
> The panel heard testimony from three Treasury nominees at the sparsely
> attended hearing, including that of Lael Brainard, President Obama's > pick
> for undersecretary of international affairs. Brainard's nomination > has been
> held up for months by the committee's vetting of tax records, which
> revealed that she and her husband had been late making several > payments to
> the tune of about $1,300.
>
> There were also questions about documents verifying the immigration > status
> of household employees and an in-home office deduction Brainard > claimed.
>
> Grassley did not say the issues would hold up Brainard's nomination. > But
> he did express frustration with the pattern he has seen from the Obama
> administration, including with Treasury Secretary Geithner and former
> Senate Majority Leader Tom Daschle, D-S.D., who withdrew from > consideration
> as HHS Secretary-designate after it was disclosed he owed over > $100,000 in
> back taxes.
>
> "Prior to this administration, we had never seen nominees with more > than
> $100,000 tax problems, or the inability to accurately respond to > committee
> questionnaires multiple times, or the lack of straight answers from
> nominees," Grassley said.
>
> "Anyone watching this process closely now knows that a nominee can get
> away with not paying taxes, or consistently pay them months late, or > not
> follow normal procedures and still be confirmed. All they have to do > is
> blame it on their incompetent accountant, their spouse, or computer
> software or hardware," he added.
>
> Senate Budget Chairman Kent Conrad, who presided over the hearing > while
> Finance Chairman Max Baucus was home with his ailing mother in > Montana,
> called the tax discrepancies "troubling." But he noted all taxes and
> penalties have been paid in full. Conrad told Brainard "no one > disputes
> your talents" and praised her "reputation for honesty and integrity."
>
> Lawmakers pressed the nominees on issues such as tax reform, the > swelling
> federal debt burden and China's currency devaluation, which has > fueled the
> country's export boom and widened the U.S. trade gap. Other Treasury
> nominees testifying were Mary John Miller to be assistant secretary > for
> financial markets and Charles Collyns to be assistant secretary for
> international finance.
>
> The panel was also slated to vote on four other nominees: Ellen > Murray, to
> be assistant HHS secretary for resources and technology; Bryan > Samuels for
> HHS commissioner on children, youth and families; Islam Siddiqui for > chief
> agricultural negotiator at the office of the U.S. Trade > Representative; and
> Michael Punke, for ambassador to the World Trade Organization. The > holdup
> means Obama might be without two key trade negotiators at the Nov. > 30 WTO
> ministerial in Geneva. But it could not vote on them because a > quorum was
> not present.
>
>
> http://www.nationaljournal.com/congressdai...091120_3445.php
>
> -----
> TRADE: CAMBODIA PREFERENCES DEAL UNDER REVIEW
> By Peter Cohn
>
>
> Momentum appears to be building to move quickly to provide additional
> duty-free import benefits to Cambodia, as a broader review of trade
> preferences programs next year could take time to complete.
>
> House Ways and Means members on both sides of the aisle this week > cited
> Cambodia's progress in meeting international labor standards, and > the topic
> was discussed at a closed-door meeting of committee Democrats Thursday
> night.
>
> Cambodia's minister of commerce testified before the Ways and Means > Trade
> Subcommittee Tuesday. The following day, nine apparel and footwear > firms
> that source products in the country wrote to leaders of the Ways and > Means
> and Senate Finance panels that Cambodia was a special case that > required
> immediate attention.
>
> "It is our understanding that a broader trade preference reform may > take
> significant additional time to achieve -- time Cambodia does not > have if it
> is to salvage its sagging apparel industry," the letter states. > "Given the
> stakes involved, we urge the U.S. Congress to quickly pass such > legislation
> granting Cambodia immediate duty-free and quota-free access to the > U.S.
> market for all apparel products."
>
> The letter was signed by American Eagle Outfitters, Inc.; Columbia
> Sportswear Company; Gap Inc.; JCPenney; Jones Apparel Group; Levi > Strauss &
> Co.; Nike Inc.; Phillips Van-Heusen Corp.; and The Walt Disney Co. The
> firms also noted Cambodia's progress in improving worker conditions.
>
> Rep. Jim McDermott, D-Wash., introduced a broad preferences reform > bill
> Wednesday that would expand duty-free benefits for apparel products > to all
> least-developed countries, similar to what Sub-Saharan African nations
> enjoy. For the largest producers, Bangladesh and Cambodia, duty-free > access
> would be capped at 50 percent based on 2007 volume.
>
> Even with the cap, some African countries fear erosion of their market
> share and are expressing alarm. They rounded up signatures from 13 > African
> ambassadors - with Lesotho, Ethiopia, Namibia and Swaziland officials
> adding their names to a final version late Thursday - and shot a > letter to
> Ways and Means Chairman Charles Rangel and Finance Chairman Max Baucus
> opposing the bill.
>
> The Africans' letter noted that, with the exception of China, > Bangladesh
> is the only major apparel producer whose exports to the United > States have
> grown during this year's recession. By contrast, the apparel and > footwear
> companies noted Cambodia's exports have dropped nearly 30 percent > compared
> to 2008, resulting in the loss of "tens of thousands" of apparel jobs.
>
> Nate Herman of the American Apparel and Footwear Association said it > was
> probably unrealistic that special benefits for Cambodia could be > attached
> to legislation extending preferences programs expiring Dec. 31, > given the
> dwindling legislative calendar. But he noted that "Cambodia has done > all
> the right things, particularly on labor," and that they should not > "get
> lost in the shuffle" of the overall preferences debate next year.
>
> Ways and Means Trade Subcommittee ranking member Kevin Brady, R-Texas,
> said Cambodia perhaps should be given precedence.
>
> "Cambodia makes a distinct case from Bangladesh ... not just from > market
> share, but the fact that not only they put [International Labor
> Organization standards] in place but they kept them in place even > after"
> export quotas were eliminated in 2005, Brady said.
>
>
> http://www.nationaljournal.com/congressdai...091120_9218.php
>
> -----
> DEFENSE: NAVY: NEWEST CARRIER TO BE READY IN 2015
> By Megan Scully
>
>
> Nearly a week after the Navy officially kicked off production of its
> newest aircraft carrier, service officials charged with overseeing the
> program said today it is on track to be in service by September 2015.
>
> The Navy held the ceremonial keel laying Saturday for the USS Gerald > R.
> Ford at Northrop Grumman's shipyard in Newport News, Va., marking > the first
> time in 40 years a new class of aircraft carriers began production.
>
> The keel laying of the massive ship represents the transition from > "the
> design-centric mentality of a paper ship -- the PowerPoint slides and
> things that are in computers -- to really getting into something now > that
> is going to start coming together in a dry dock and really quickly > here ...
> look like a ship," Capt. Brian Antonio, the carrier's program > manager, said
> at a briefing at the Washington Navy Yard.
>
> But parts of the ship have been in production since August 2005. Of > the
> 1,177 "structural units," or building blocks, 577 are completed, > Antonio
> said. "So we did have a running start," he added.
>
> Construction of the carrier and the ship's systems will cost $8.7 > billion.
> The Navy already has spent $3.6 billion in research and development > and
> $2.7 billion on a detailed design for the ship, the first of the > CVN-78
> class of carriers.
>
> Aside from the ship itself, the program office is closely monitoring > other
> programs that are central to the new carrier, such as the Electro > Magnetic
> Launch System, the catapult system for carrier-based jets, Antonio > said.
>
> Several key lawmakers have long been skeptical of the launch system,
> raising concerns that the program is behind schedule and ultimately > could
> delay deploying the carrier.
>
> The Navy plans to start launching test loads from the system by > early next
> year in the hope of launching its first aircraft, an F-18 fighter, > in July.
>
> "There are no major things right now ... that are standing in the > way of
> getting [EMALS] to the ship," Antonio said.
>
> Meanwhile, Navy officials said the new carrier still is on track to
> generate more than $5 billion in cost savings throughout the ship's > 50-year
> life, when compared to the Nimitz-class carriers that are now in > service.
>
> More than $3 billion of those savings comes from the 1,300 fewer > personnel
> needed to man the ship and the associated air wing. "People costs have
> escalated for the military, just as they have for the private > sector," said
> Rear Adm. Michael McMahon, the Navy's program executive officer for
> aircraft carriers.
>
> Other significant cost savings come from a heavy reliance on electric
> power, which carries much lower maintenance and operations costs > than other
> power sources, McMahon said.
>
>
> http://www.nationaljournal.com/congressdai...091120_6227.php
>
> -----
> HILL BRIEFS: BERNANKE CONFIRMATION HEARING DEC. 3
>
> Finance. Senate Banking Chairman Christopher Dodd this afternoon > announced
> that his committee will consider the nomination of Federal Reserve > Chairman
> Bernanke for another term at a hearing Dec. 3.
>
>
> http://www.nationaljournal.com/congressdai...091120_9534.php
>
> -----
> HILL BRIEFS: BROWNER: U.S. SEEKING BROAD CLIMATE PLAN
>
> Environment. White House climate adviser Carol Browner said today the
> administration rejects targeting only some industries, such as the
> electricity sector, as an alternative to an economywide cap-and-trade
> strategy. While there is some talk on Capitol Hill about pursuing
> pared-down legislation focused on power plants as an initial step > toward
> mandating reductions of U.S. greenhouse gas emissions, Browner said > the
> administration believes "that we need comprehensive energy reform." > Such an
> approach would entail going beyond the roughly 40 percent of > greenhouse gas
> emissions covered by power plants to also include refineries, > factories and
> other pollution sources, as called for in cap-and-trade legislation > passed
> by the House and pending in the Senate. Browner's comments, made at a
> gathering hosted by the American Council on Renewable Energy, come > as the
> U.S. negotiators prepare to go to the Dec. 7-18 climate summit in
> Copenhagen, Denmark. Although next month's summit will not produce a > final
> treaty, she said "it's going to achieve a very important step towards
> action." She said a goal in Copenhagen is for rich and poor > countries to
> signal what emission reduction actions they will undertake and > commit to
> domestically. "We will then spend the course of the next six to 12 > months
> finalizing a binding international agreement," she added.
>
>
> http://www.nationaljournal.com/congressdai...091120_4602.php
>
> -----
> HILL BRIEFS: PERINO NAMED TO BROADCASTING BOARD
>
> White House. President Obama nominated a former press secretary to
> President George W. Bush and a past chairman of CNN to the > Broadcasting
> Board of Governors, the White House announced. The independent agency
> oversees nonmilitary international broadcasts sponsored by the federal
> government. Walter Isaacson, who headed CNN from 2001-03, was > nominated to
> chair the board. Dana Perino, a Bush press secretary, was nominated > to fill
> a seat held by Sen. Ted Kaufman, D-Del.
>
>
> http://www.nationaljournal.com/congressdai...091120_9443.php
>
> -----
> HILL BRIEFS: WALDEN WON'T RUN FOR GOVERNOR
>
> Politics. Rep. Greg Walden, the only Republican member of Oregon's
> congressional delegation, announced Thursday he will not run for > governor,
> the Bend Bulletin reported. Walden had been viewed as the party's > strongest
> candidate to succeed Democratic Gov. Ted Kulongoski, who is term-> limited.
> Walden told the paper he is already well positioned to help the > state as
> Congress deals with issues such as healthcare reform and deficits. > "Much of
> the problem we face in Oregon starts right here in Washington," he > said.
>
>
> http://www.nationaljournal.com/congressdai...091120_8316.php
>
> -----
> HILL BRIEFS: NRCC, DCCC WERE BIG SPENDERS IN OCT.
>
> House Races. Both the National Republican Congressional Committee > and the
> Democratic Congressional Campaign Committee spent more than they > raised in
> October. The NRCC raised $3.4 million and spent $3.6 million, while > the
> DCCC raised $3.8 million and spent $4 million. The high spending was > mostly
> traced to the special House election in upstate New York. The DCCC > retains
> a large advantage in cash on hand, with $14.5 million to the NRCC's > $4.2
> million. The DCCC has more debt -- $3.3 million to the NRCC's $2 > million --
> but its net cash advantage over the NRCC is $9.2 million.
>
>
> http://www.nationaljournal.com/congressdai...091120_9026.php
>
> -----
> HILL BRIEFS: HOFFMAN LACKS VOTES TO CATCH OWENS
>
> House Races. Even though his margin of victory will be narrower,
> Democratic Rep. Bill Owens appears certain to be declared the winner > in the
> special election in New York's 23rd District, the Watertown Daily > Times
> reported today. With 3,072 absentee ballots left to count, Owens led
> Conservative Party nominee Doug Hoffman by more than 3,100 votes. > After all
> 11 counties in the district recanvassed the votes cast by machine, > Owens
> had a 3,176-vote lead and Hoffman has gained just 71 net votes in the
> absentee ballot counting this week, the paper said. One of the seven
> counties will going through its absentee ballots is St. Lawrence > County,
> where Owens' margin of victory was his largest. Republican Dede > Scozzafava
> continues to get about 19 percent of the absentee ballots, making it > more
> difficult for Hoffman to make up the deficit. Hoffman still could > request a
> recount, and in a letter this week to supporters asked for donations > to
> ensure that all votes were properly counted.
>
>
> http://www.nationaljournal.com/congressdai...091120_6509.php
>
> -----
> THE FRIDAY BUZZ: LINES OF ATTACK
> By Erin McPike
>
>
> Democrats are testing a new line of attack ahead of next year's > midterm
> elections. House Republicans, they say, have gone off the deep end.
>
> Democratic campaign committees are practically tripping over each > other to
> get out the word of the latest evidence that Republicans are losing > touch
> with reality.
>
> Here are just a few of the gifts they say Republicans have handed > them in
> recent weeks: Rep. Virginia Foxx of North Carolina saying the GOP > pushed
> through civil rights legislation in the 1960s; Rep. Louie Gohmert of > Texas
> suggesting Democrats are crossing their fingers for another terrorist
> attack because it would create jobs in the city where it happened; > Rep.
> John Shadegg of Arizona suggesting that if terrorists are tried in New
> York, Mayor Michael Bloomberg's daughter might be kidnapped; and > Foxx and
> Rep. Cathy McMorris-Rodgers of Washington comparing the fallout of
> Democrats' healthcare legislation to a terror attack.
>
> For their part, Republicans seem content with their counterattack, > which
> largely focuses on Democrats spending like drunken sailors.
>
> Crazies or drunks? Take your pick and settle in for long and wild
> campaign.
>
>
> http://www.nationaljournal.com/congressdai...091120_4297.php
>
> -----
> THE FRIDAY BUZZ: TOO CLOSE FOR COMFORT?
> By Dan Friedman
>
>
> All year, Democrats have said Republicans are in league with the > health
> insurance industry. But is CBO also overly cozy with insurers?
>
> That was the contention of Sen. John (Jay) Rockefeller, D-W.Va., as he
> expressed frustration with the agency, which is playing an outsized > role in
> the health debate because of the focus on the cost of various > proposals.
>
> "They are very, very close to the health industry," Rockefeller said
> Tuesday. Later in the day, he expanded his comments to say: "Nobody > really
> knows what is going on inside the CBO. They appear to me to have a > bias. I
> can't say this authoritatively, but it's my impression. ... They > have a
> bias against getting healthcare reform done. And they're throwing up
> roadblocks. ... They want to call anything government-run, so they > make it
> easier for people to be angry."
>
> While lawmakers ranging from Sen. Olympia Snowe, R-Maine, to Senate
> Finance Chairman Max Baucus and Senate Majority Whip Durbin have > grumbled
> about issues ranging from CBO's assumptions to the pace of their work,
> Rockefeller's take goes further. Rockefeller said his views reflect > reports
> his staff has prepared for him on the congressional agency. Neither > the
> senator nor a spokeswoman elaborated on the reports.
>
> A CBO spokeswoman had no comment.
>
>
> http://www.nationaljournal.com/congressdai...091120_5404.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "Should we simply, like a matador, say 'ole' and not examine nominees'
> financial statements or tax returns?"
>
> -- Senate Finance ranking member Charles Grassley, responding to > criticism
> about the committee's vetting process for Obama administration > nominees.
>
>
> http://www.nationaljournal.com/congressdai...091120_4864.php
>
>