Congress Daily Options

[Snuffysmith]

> CongressDaily AM for Thursday, July 30, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: DEAL WITH BLUE DOGS IGNITES LIBERALS, DELAYING MARKUP
> By Kasie Hunt
>
>
> A trumpeted healthcare reform agreement with conservative House > Democrats
> set off a firestorm of criticism from the party's liberal wing > Wednesday,
> pushing back proceedings in a key committee and casting doubt on the
> strength of the leadership-backed accord.
>
> Leaders and White House officials worked for days to reach an > agreement
> with Blue Dogs, who had been holding up the legislation in the > Energy and
> Commerce Committee because of concerns about cost, burdens on small
> business and a public insurance option.
>
> House Energy and Commerce Chairman Henry Waxman said Wednesday > morning the
> deal would let his committee resume marking up the bill Wednesday > afternoon
> and finish work by Friday, before the House is scheduled to leave > for its
> August recess.
>
> But meetings with liberal Democrats on the Energy and Commerce > Committee
> later Wednesday proved contentious and Waxman was forced to postpone > the
> markup until at least today. "Members had a lot of questions about the
> legislation, and I think it's more important that we sit in the > Democratic
> Caucus and let people ask questions, get answers, raise concerns, > hear each
> other out," Waxman said.
>
> House Energy and Commerce ranking member Joe Barton said Waxman was > in the
> midst of a "circular firing squad."
>
> When asked about the comment, Waxman said: "It's just a fact of life."
>
> "There's angst; there's questions; there's some anger," Rep. Eliot > Engel,
> D-N.Y., a member of the Energy and Commerce Committee, said of the > meetings
> with Waxman. "The question is, have we given up too much for the > goals that
> we need?" he said of the agreement. "I don't want to see the insurance
> companies subsidized by middle-income taxpayers."
>
> A consistent sticking point with Engel and other liberal Democrats are
> changes made to the public option. The Blue Dog agreement includes > Senate
> Health, Education, Labor and Pensions Committee language that > requires the
> HHS secretary to negotiate public plan payment rates directly with
> providers. The original bill based them on Medicare, which liberals > claim
> would force insurance companies to bring down costs if they want to > compete
> with the public plan.
>
> To report the bill out of his committee, Waxman will have to assuage
> concerns from Engel and from members of the Congressional Progressive
> Caucus, which came out against the deal with the Blue Dogs. There > are five
> rank-and-file members of the Progressive Caucus on the committee: > Reps.
> Tammy Baldwin of Wisconsin, Peter Welch of Vermont, Jan Schakowsky and
> Bobby Rush of Illinois and Del. Donna Christensen of the Virgin > Islands.
> Christensen cannot vote on the House floor, but her committee vote > counts.
>
> Whether there is enough opposition from those liberals to prevent the
> committee from reporting the bill is an open question. Three > committee Blue
> Dogs -- Reps. John Barrow of Georgia, Charlie Melancon of Louisiana > and Jim
> Matheson of Utah -- did not sign on to the deal and are likely to vote
> against the bill. Rep. Bart Stupak, D-Mich., was initially opposed > to the
> bill and said the Blue Dog agreement made him less likely to vote > for it.
>
> "I cringe at the word 'deal;' it sounds back room," said Rep. Lois > Capps,
> D-Calif. Capps said "it could be" that she and other more liberal > committee
> members vote against the Blue Dogs' changes. "For some of us, there > are
> certain standards that have to be met," Capps said.
>
> Waxman said he believed he could get the bill through the committee.
> "Members are thinking about it, and I believe we will" have the votes,
> Waxman said.
>
> Waxman suggested liberal committee members might take some of their
> concerns to leadership during the process of melding the Energy and
> Commerce bill with versions from the Ways and Means Committee and the
> Education and Labor Committee. "We're going to do what we can in the
> committee to get the bill through, and many members will also ask
> leadership how we can pay for greater subsidies for lower-income > people,"
> Waxman said.
>
> A more conservative package from the Energy and Commerce Committee > would
> draw opposition from liberals in the full House. "We support what > came out
> of Ways and Means. We support what came out of Education. We have > not only
> concerns, but outright opposition to some of the sections that have > been
> negotiated [by Energy and Commerce] up to this point," said Rep. Raul
> Grijalva, D-Ariz., a co-chairman of the Congressional Progressive > Caucus.
>
> "There are a lot of concerns we have," said Rep. Barbara Lee, D-> Calif.,
> chairwoman of the Congressional Black Caucus.
>
> But liberal members who emerged from meetings with leadership > Wednesday
> suggested many of their concerns could also be assuaged when the three
> committee bills are melded. "A lot can take place in that > reconciliation,"
> said Rep. Sam Farr, D-Calif., a member of the Progressive Caucus.
>
> "I don't know yet," Majority Whip Clyburn said when asked whether the
> changes meant losing floor votes from more liberal Democrats.
>
> House Education and Labor Chairman George Miller said: "The most > important
> thing is to get it [Energy and Commerce bill] out of committee and > get some
> resolution."
>
>
> http://www.nationaljournal.com/congressdai...090730_8369.php
>
> -----
> HEALTH: KEY REPUBLICANS SAY MUCH WORK LEFT ON FINANCE PACKAGE
> By Anna Edney
>
>
> Key Senate Republicans negotiating the only bipartisan bill expected > to
> emerge in the healthcare overhaul debate made clear that the six > senators
> on the Finance Committee are not closing in on a deal and raised > issue with
> the CBO score touted by Finance Chairman Max Baucus on Wednesday.
>
> "They're not even close to having exact language, let alone a CBO > score,"
> Senate Health, Education, Labor and Pensions ranking member Michael > Enzi
> said.
>
> Baucus announced earlier Wednesday that CBO had given them a > preliminary
> $900 billion score on a draft of their bill.
>
> Finance ranking member Charles Grassley said his staff shared with him
> that the score is a few weeks old and the $900 billion figure is > likely too
> high by at least $100 billion. The group of six also never discussed > the
> score in their daily meetings, Grassley added.
>
> The senators have set a high bar for penning their signatures on the
> bipartisan agreement that emerges.
>
> "The three Republicans there have consistently told Sen. Baucus that > we
> have to have assurances beyond him as to what the end game will be,"
> Grassley said Wednesday evening.
>
> Enzi made known earlier in the day he would not sign on to any > bipartisan
> agreement that comes out of Finance without a commitment from > leadership
> that the agreements reached would make the final cut that reaches the
> president.
>
> He has not gotten such a pledge, but said, "Well, I didn't think > that I've
> been spending five hours a day for a couple of months just to give > them a
> Finance package that could be melded into a HELP package, which > would be
> the worst of both worlds and have that go on through."
>
> Enzi was not suggesting that the HELP bill should fall by the > wayside as
> an overhaul bill comes to the Senate floor, but rather the liberal > aspects
> should get the ax. He did not get specific, saying he is "not going to
> legislate through the media," but one of the most liberal aspects of > the
> bill is the public health insurance option.
>
> "I would say that in order to do the Finance bill, we had to have
> agreement that it would not have a public option," Enzi said.
>
> The Finance bill is not expected to include a public option like > HELP's
> bill or the House's version. Instead, it is expected to include a co-> op
> system of coverage that would be customer owned and operated and would
> negotiate with healthcare providers for services.
>
> Enzi described the status of the talks as focusing on the "big issues"
> without having gotten into the smaller details. The group is still > working
> through 13 "big issues," as Enzi described them.
>
> One of those is how to pay for the bill. Sen. John Kerry, D-Mass.,
> proposed a tax on insurance companies that offer expensive plans. > While
> many senators expressed interest in the idea, the specifics of where > they
> will cap the value of untaxed plans seems to be running into some > hurdles.
>
> "They're trying to arrive at levels, to understand still what's
> appropriate, and we're still arguing about that," Kerry said after a > brief
> Wednesday meeting of Finance Democrats.
>
> Sen. Charles Schumer, D-N.Y., appeared less than thrilled about such a
> tax. When asked if he had concerns, he responded, "Well, we'll have > to see
> what it is."
>
> Schumer did not elaborate, but Kerry's idea is meant to be a > compromise
> with Democrats, like Schumer, who do not support capping the value of
> employer-based health benefits eligible for the tax exclusion. > Schumer had
> been uncomfortable even with the idea of capping the tax exclusion > at an
> extremely high level.
>
> With many provisions under discussion, Baucus has been under > pressure by
> his party to release a bill and potentially go to markup before the > August
> recess.
>
> "You can't say you gotta do it in a week, you gotta do it in a month > --
> You gotta do it in the time it takes," Enzi said.
>
> "I'm not suggesting slowing it down," he added. "I'm saying take the > right
> amount of time. I'm saying that it can't be finished in a day or > two, it
> just can't."
>
>
> http://www.nationaljournal.com/congressdai...090730_6275.php
>
> -----
> APPROPRIATIONS: SENATE CLEARS ENERGY AND WATER BILL, AGRICULTURE UP > NEXT
> By Humberto Sanchez
>
>
> The Senate Wednesday approved the $34.3 billion FY10 Energy and Water
> Appropriations bill, 85-9, after rejecting two amendments by Sen. Tom
> Coburn, R-Okla., including one requiring competitive bidding for all
> projects funded by the bill.
>
> The Senate appointed as conferees the Energy and Water Appropriations
> Subcommittee and Appropriations Chairman Daniel Inouye. Majority > Leader
> Reid said the Senate will move to the Agriculture spending bill after
> considering legislation to keep the Highway Trust Fund solvent. (See
> related story, page 11.) The Senate defeated the Coburn contracting
> amendment, 62-35.
>
> Coburn argued that without his amendment, the earmarks in the bill > would
> not be required to be competitively bid and would likely waste > taxpayer
> dollars.
>
> Coburn was critical of an alternative offered by Energy and Water
> Appropriations Subcommittee Chairman Byron Dorgan, D-N.D., to require
> competitive bidding with some exceptions. The Senate approved Dorgan's
> amendment, 79-18.
>
> "We have an amendment that is going to be voted on side by side, for
> political cover only," Coburn said. "If you vote for the Dorgan > amendment,
> you want to continue to connect the well-heeled, the well-connected > in this
> country and you don't want transparency and you don't want > competitive bid
> prices on what we as Americans pay through our tax dollars for what > our
> government buys."
>
> Dorgan said Coburn's amendment was too broad and did not allow for > unique
> research and development projects conducted by the Energy Department > that
> would not lend themselves to competitive bidding.
>
> "The people who do know [about DOE contracting] suggest that the > contract
> competition model for some of those kinds of things doesn't work > very well
> at all, because you are looking for things that go well beyond just > who is
> going to bid the lowest on this kind of research -- very high-tech and
> exotic research that we are doing in a wide range of energy fields," > Dorgan
> said.
>
> The Senate also rejected, 71-26, a second amendment by Coburn to cut > $13.8
> million from the bill for the Energy Department. Coburn said that,
> according to the department's inspector general, the agency last year
> wasted $13.8 million in energy.
>
> An amount "they could have saved had they done some small, simple,
> straightforward things like they request every other agency in the > federal
> government to do," Coburn said. "Isn't it ironic that the very > agency that
> is telling all the rest of the agencies to save money by becoming > efficient
> with their computers, by becoming efficient with their heating and > cooling
> systems, by becoming efficient by their utilization of lighting > doesn't
> even follow their own rules."
>
> Dorgan said that the cut is not needed because the bill provides $643
> million less for the department than President Obama requested and $8
> million less than FY09 level for its administration account.
>
> The Senate Wednesday also adopted, by voice vote, a handful of > amendments,
> including a proposal from Coburn to require public disclosure of > reports
> from agencies to Congress called for in appropriations bills. The > amendment
> exempts sensitive reports on national security and defense.
>
> An amendment from Sen. Bernie Sanders, I-Vt., was adopted, which would
> direct $15 million from the $100 Energy Department industrial > technologies
> program for technical energy grants to institutional entities, such as
> municipal utilities and institutions of higher learning.
>
>
> http://www.nationaljournal.com/congressdai...090730_8909.php
>
> -----
> HOMELAND SECURITY: PROSPECTS FOR AUTHORIZATION BILL LOOK BETTER NEXT > YEAR
> By Chris Strohm
>
>
> For the seventh year in a row, Congress will not produce an > authorization
> bill setting policy and spending priorities for the Homeland Security
> Department, according to lawmakers and aides.
>
> Senate Homeland Security and Governmental Affairs Chairman Joseph
> Lieberman confirmed this week that his panel will not mark up a FY10
> Homeland Security authorization bill, explaining that the Obama
> administration asked him not to rush such a measure through Congress > this
> fall.
>
> House Homeland Security Chairman Bennie Thompson has no plans to > handle a
> departmentwide measure, preferring instead to approve smaller discrete
> authorization bills for certain Homeland Security agencies and > operations.
>
> An authorization bill is one of the main ways Congress can direct the
> operations of an agency. The Senate and House Armed Services > committees,
> for example, produce a bill authorizing defense and military > programs and
> spending every year.
>
> But since its creation in 2003, the Homeland Security Department has > never
> operated under an authorization bill, even though it has more than > 200,000
> employees and spends more than $40 billion in taxpayer funds annually.
>
> Some lawmakers and aides believed the time was ripe for enacting a
> Homeland Security authorization bill, given the arrival of the first > new
> administration since the department's creation and Democratic > control of
> both the White House and Congress.
>
> "My staff has been working on a DHS authorization bill to strengthen > the
> management and integration of the department and authorize appropriate
> funding levels for key programs," Lieberman said in a statement.
>
> "The administration has asked us to slow the process down while it > gets
> its full roster of DHS leaders in place," he added. "Given the > enormous
> amount of work that the Senate still has left to accomplish this > year --
> including healthcare reform, climate change, financial regulatory > reform,
> and several appropriations bills -- I don't anticipate getting an
> authorization bill to the floor this year, but it remains high on my > agenda
> for the 111th Congress."
>
> Senate Homeland Security and Governmental Affairs ranking member Susan
> Collins raised the possibility of getting a bill done next year, > saying she
> will continue to work with Lieberman's staff on an authorization bill.
>
> Across Capitol Hill, Thompson opened the year saying his committee > would
> take up an authorization bill. But he has focused instead on moving
> separate bills targeting specific Homeland Security agencies and
> operations.
>
> Thompson's committee so far has marked up an authorization bill for > the
> Transportation Security Administration, which passed the House in > June, and
> legislation that would extend and expand chemical facility security
> regulations, which remains pending in the House.
>
> An aide to Thompson said the panel plans this fall to mark up
> authorization bills for the Federal Emergency Management Agency; the
> department's Science and Technology Directorate; the Management
> Directorate; and the Office of Intelligence and Analysis.
>
> But the absence of a departmentwide bill in the House has stoked > simmering
> Republican complaints.
>
> "I think it's a serious mistake," said Homeland Security ranking > member
> Peter King, who as chairman of the committee in 2006 spearheaded House
> passage of a Homeland Security authorization bill. "If you're going > to be a
> serious committee, you should do an authorization bill the way serious
> committees do them and not in bits and pieces."
>
>
> http://www.nationaljournal.com/congressdai...090730_1701.php
>
> -----
> TRADE: AFGHANISTAN-PAKISTAN BILL HITS SNAG AS GOAL STARTS SLIPPING
> By Peter Cohn
>
>
> Four Republican senators backing a bill from Sen. Maria Cantwell, D-> Wash.,
> to create duty-free export zones in Afghanistan and parts of > Pakistan on
> Wednesday asked her to resist House Democratic and AFL-CIO efforts to
> toughen its labor standards.
>
> The letter from GOP Sens. Orrin Hatch of Utah, Lindsey Graham of South
> Carolina, Christopher (Kit) Bond of Missouri and Lisa Murkowski of > Alaska
> raises the stakes in the fight over a top White House priority. A > version
> acceptable to unions has passed the House but is held up in the > Senate over
> the labor issue.
>
> "[W]e strongly support the approach to labor of [the Cantwell bill], > and
> we would oppose efforts to change those provisions," the GOP > senators wrote
> in a letter to Cantwell, Senate Finance Chairman Max Baucus and > ranking
> member Charles Grassley. Grassley shares the concerns on the labor > front
> and has said repeatedly he cannot support the House bill without
> modifications.
>
> The Obama administration regards the Afghanistan/Pakistan > "Reconstruction
> Opportunity Zones" measure as a key prong in its regional security
> strategy. The idea is to promote local economic development and get > U.S.
> and other foreign firms to invest in the area and create jobs, > heading off
> recruitment by terrorists.
>
> The bill would allow duty-free shipment for about 15 years of almost > 2,000
> categories of imports, mainly textile and apparel goods such as > terry cloth
> towels, blankets, curtains, coats and nightgowns. It would leave in > place
> tariffs on sensitive cotton apparel products like shirts, socks and
> trousers, which are major Pakistani exports.
>
> Mary Beth Goodman, senior economic adviser to Richard Holbrooke, the > White
> House's special envoy to the region, called the labor issue "the big
> impediment" to the bill.
>
> She said a goal to pass the bill before the August recess was probably
> slipping away.
>
> That is unfortunate, Goodman said, because companies such as apparel
> manufacturers are going to need up to a year just to get factories > built.
> Meanwhile, there are 2.3 million refugees in the Pakistani border > regions,
> she said. And after the August recess, lawmakers will begin to look > at an
> overhaul of trade preference programs that Grassley has said is a more
> natural place for the Afghan/Pakistan bill to be dealt with.
>
> "Our big concern is that it could get shoved into the broader trade
> preference debate, and that could take two to three years to resolve,"
> Goodman said. She added that House Democrats, as well as Republicans,
> should be prepared to negotiate, and that if necessary legislators > could
> always come back later and make fixes.
>
> Cantwell has been helping administration officials try to broker a > deal. A
> spokeswoman said she is keenly aware of the concerns raised by the GOP
> senators.
>
> "However, she urges her colleagues to remember what this is all about:
> July 2009 is already the deadliest month in the eight-year history > of the
> Afghan war in terms of both U.S. and allied soldiers killed in > combat," she
> said. "She is certain that her colleagues, Republicans and Democrats > alike,
> recognize the national security implications of getting stuck in a > deadlock
> over the bill."
>
> Cantwell's bill contains labor standards codified in the 30-year-old
> Generalized System of Preferences program. The GOP senators wrote that
> departing from those standards would "create serious uncertainty and > place
> additional burdens on private-sector investors, thereby deterring
> much-needed major new investments, and thus undermining the entire > purpose
> of this legislation."
>
> They said the House bill, by Rep. Chris Van Hollen, D-Md., would > require
> Afghanistan and Pakistan to meet eight International Labor > Organization
> core labor standards. The United States has only ratified two of those
> standards, thus the House bill would "go far beyond U.S. domestic > labor
> law" and be difficult for less-developed countries to meet, the > senators
> wrote.
>
> AFL-CIO Policy Director Thea Lee said her group was open to > compromise,
> but "we sort of have to be convinced there's something wrong with > the Van
> Hollen bill." She said at this point, there haven't been any workable
> suggestions put in play. "The whole point is to lift people up and > give
> people good jobs, create opportunity. We won't support something that
> allows unscrupulous people to go into these areas and treat people > badly,"
> Lee said.
>
> Labor is not the only outstanding issue. The four GOP co-sponsors, > as well
> as industry groups, want to expand the ROZs to a broader area of > Pakistan.
> Business groups want the product coverage expanded beyond the > limited list
> of textile and apparel products.
>
> In their letter to Cantwell, the Republican senators wrote that the > list
> was the result of careful negotiations with domestic textile > interests and
> should not be amended. Other agricultural and manufactured goods > could be
> added, they wrote.
>
>
> http://www.nationaljournal.com/congressdai...090730_1007.php
>
> -----
> HEALTH: A DAY AFTER SETBACK, FOOD SAFETY BILL BACK BEFORE HOUSE
> By Jerry Hagstrom
>
>
> Democratic leaders plan to bring up a food safety bill on the House > floor
> under regular order today after it failed to garner the two-thirds > vote
> necessary to pass on the suspension calendar on Wednesday.
>
> The House Rules Committee met late Wednesday and issued a closed > rule for
> the bill, with one hour of debate.
>
> The bill, which would give the FDA more regulatory power over food > safety
> and agricultural production, is likely to pass -- 280 House members > voted
> for it Wednesday while 150 voted against it. The bill needed 288 > votes for
> passage under suspension of the rules. Fifty Republicans voted for > the bill
> and 127 voted against it.
>
> The failure to get a two-thirds majority was an embarrassment for > House
> Speaker Pelosi and a short-term victory for House Minority Leader > Boehner
> and House Agriculture ranking member Frank Lucas, who criticized the
> procedures used to bring the bill to the floor.
>
> Boehner and Lucas argued Wednesday that House Agriculture Chairman > Collin
> Peterson should have claimed jurisdiction over the bill, although > FDA is
> part of HHS, which is under the jurisdiction of the Energy and > Commerce
> Committee.
>
> Rep. John Dingell, D-Mich., wrote the bill in Energy and Commerce, > with
> backing from Republican members of the committee. Reps. Jim Costa,
> D-Calif., and Adam Putnam, R-Fla., urged members to support it > because it
> contains provisions intended to restore consumer confidence in the > fruit
> and vegetable industry, which has been damaged by outbreaks of food-> borne
> illness caused by tainted spinach and Mexican peppers.
>
> Costa and Rep. Dennis Cardoza, D-Calif., who are on the Agriculture
> Committee, joined with Peterson in negotiating with Dingell on changes
> requested by farm groups, but Lucas said at a House Agriculture > business
> meeting Wednesday that Peterson should have held a markup. Lucas > also said
> Peterson was allowing Energy and Commerce, which is distrusted by > farmers,
> to become more powerful.
>
> Boehner complained at a luncheon event that Peterson "has full
> jurisdiction over this issue -- and took a pass, which has some of > our Ag
> members upset because now we're going to have the FDA on the farm."
> Peterson negotiated, however, to exempt livestock and grain farmers > from
> FDA inspections.
>
> Boehner also complained that the Democrats did not file the bill until
> 12:15 a.m. Wednesday and two later versions appeared, the last at > 10:50
> a.m. Energy and Commerce ranking member Joe Barton, who supported > the bill,
> acknowledged there were late versions, but he said some of the > changes were
> made to satisfy Lucas' requests.
>
> Cardoza blamed Wednesday's setback on farm groups that failed to > actively
> support the bill even after getting concessions in it. "You can't > just sit
> on the sidelines and put your cards to the chest," he said. A House > source
> said the United Fresh Produce Association supported the bill, while > Western
> Growers, another California fruit and vegetable group, remained > neutral,
> and the California Farm Bureau opposed it. The source predicted > lawmakers
> will be "jaundiced" the next time those groups ask for legislative > changes.
>
> Ferd Hoefner of the Sustainable Agriculture Coalition, which > represents
> small farmers, said some of the 23 Democrats who opposed the bill were
> sympathetic to his group's objections to provisions that would force > small
> farmers and processors to file reports electronically with the FDA > and pay
> the same $500 annual registration fee as big operations such as > Cargill.
>
>
> http://www.nationaljournal.com/congressdai...090730_6419.php
>
> -----
> TRANSPORTATION: OBERSTAR, MICA OFFER MEASURE TO IMPROVE AVIATION > SAFETY
> By Darren Goode
>
>
> House Transportation and Infrastructure Committee leaders Wednesday
> offered up new licensing requirements for commercial pilots and a > host of
> other aviation safety mandates that quickly earned some push-back from
> airlines.
>
> The House bill -- which the full panel will vote on today -- increases
> sixfold the current requirement of 250 hours of flight time needed > before
> commercial pilots and first officers can receive their licenses. The > new
> requirement of 1,500 flight hours is the same as currently needed to > become
> an airline captain.
>
> "There isn't going to be that disparity and there isn't going to be > that
> unwillingness for the first officer to stand up and raise questions > to the
> pilot in command," Transportation and Infrastructure Chairman James
> Oberstar said at a briefing with top Democrats and Republicans on > the full
> committee and the panel's Aviation Subcommittee.
>
> Aviation Subcommittee Chairman Jerry Costello, D-Ill., said an > experienced
> first officer helped avoid fatalities in the Jan. 15 crash landing > of a US
> Airways jet in the Hudson River. Oberstar added that fatalities have
> occurred in part due to first officers being unwilling to challenge > more
> senior pilots.
>
> The bill goes beyond the current requirement that the FAA maintain a > pilot
> record database and would require the agency within a year to finish > a rule
> that would set new limits on the hours a pilot can be on duty. FAA > last
> proposed stricter limits in 1995 but was sued by the Air Transport
> Association, the main trade association of airlines.
>
> The last six airline accidents in the United States have involved > regional
> carriers, and the bill requires online airline ticket sites to > identify on
> the first page what carrier is operating each flight.
>
> Oberstar said the bill should go to the House floor in September and > could
> then be merged with a three-year, $53.5 billion FAA reauthorization > bill
> the House approved in May. The House bill touches on many of the same
> overarching safety issues included in a Senate Commerce Committee FAA
> reauthorization bill.
>
> Transportation and Infrastructure ranking member John Mica, who is
> co-sponsoring the House bill, said there will be opposition to some > of the
> bill's requirements. "Some people aren't going to like this; there's > going
> to be some kickback, I can tell ya," Mica said, noting an e-mail he
> received from ATA.
>
> Major airlines say Congress should hold off on legislating new safety
> standards in order to give more time to a coordinated effort between > the
> FAA, airlines and pilot unions to improve safety on their own.
>
> "We believe in that process and we believe it should be allowed to > proceed
> to a successful conclusion," ATA President and CEO James May said in a
> statement. An ATA spokesman emphasized that the group is not > specifically
> weighing in for or against the bill itself. Oberstar said FAA will > still
> "need a legislative arm backing up the administrator and his > initiatives."
>
>
> http://www.nationaljournal.com/congressdai...090730_1580.php
>
> -----
> TRANSPORTATION: CASH TO KEEP HIGHWAY FUND AFLOAT CRUISES THROUGH HOUSE
> By Darren Goode
>
>
> The House Wednesday approved a $7 billion boost to the federal highway
> program to make sure it stays afloat through September.
>
> The 363-68 vote exceeded the two-thirds needed to pass on the > suspension
> calendar. Senate Majority Leader Reid said Wednesday night he hopes > to act
> on the bill as soon as it arrives from the House today. Four > Republican
> amendments will be considered.
>
> But House and Senate Democratic leaders might be at odds when they get
> back from the August recess over how long to extend current law, which
> expires at the end of September.
>
> House Transportation and Infrastructure Committee leaders do not > want to
> extend current law at all in order to keep pressure on lawmakers to > act on
> a six-year surface transportation reauthorization bill. "We will do > that in
> September," Transportation and Infrastructure Chairman James Oberstar
> promised regarding the six-year bill.
>
> Senate Democratic leaders, backed by the Obama administration, have > sought
> an 18-month extension of current law, through March 2011, to give > enough
> time in the face of pressing healthcare and climate change > legislation.
> "We're not going to let that happen," Oberstar said.
>
> The Transportation Department said in a statement that the cash > infusion
> will keep the highway fund solvent "until a longer-term solution can > be
> reached," adding that the administration continues to favor an 18-> month
> extension of transportation programs.
>
> "The bottom line is that we need to pass an extension of the highway
> program. There is simply no way that Congress will be able to pass a
> reauthorization of the highway bill before the program expires at > the end
> of September," Senate Environment and Public Works ranking member > James
> Inhofe said. "There are simply too many big questions left that must > be
> answered, including how we are going to pay for it."
>
>
> http://www.nationaljournal.com/congressdai...090730_5297.php
>
> -----
> FINANCE: SCHUMER'S GOVERNANCE BILL EXPECTED TO HITCH A RIDE
> By Bill Swindell
>
>
> Sen. Charles Schumer, D-N.Y., Wednesday challenged a top business
> executive to endorse his legislation to give shareholders a greater > say in
> the corporate boardroom, noting that many public companies are > taking steps
> called for in his bill, such as splitting the duties between the board
> chairman and CEO and requiring annual director elections.
>
> Schumer pushed John Castellani, president of the Business Roundtable,
> during a Senate Banking Securities Subcommittee hearing to support his
> legislation to increase transparency and accountability by also > requiring
> board directors to receive at least 50 percent of the vote in > uncontested
> elections and mandating boards create a risk committee.
>
> "You know that some of the proposals in [my] shareholder bill of > rights
> are already being adopted by your member companies and reflect an > emerging
> consensus on best practices in corporate governance. If that's the > case,
> what are you so afraid of?" Schumer asked. "Why does the > roundtable ...
> [go] so far to defend outlier companies?"
>
> Castellani said those decisions are best left for each public company,
> noting that the separation of CEO and chairman duties could make > sense when
> the company is undergoing a transition of top executives. "In other
> circumstances, boards feel it makes best sense to have both > together, but
> [may] protect against the downside by having a presiding director. > So the
> question is, why require?" Castellani said.
>
> The debate took place as the House prepares to vote Friday on > legislation
> to require annual nonbinding advisory votes on executive > compensation and
> golden parachute packages for top personnel -- similar to language in
> Schumer's bill.
>
> Congress will likely attach corporate governance standards to its > revamp
> of the regulatory system, and business lobbyists are working to > scuttle
> Schumer's bill because it represents the farthest reach for the > shareholder
> democracy movement, which has grown under Democratic control of > Congress
> and the White House and amid populist anger over government bailouts.
>
> Sen. Bob Corker, R-Tenn., noted at the hearing that some of > Schumer's bill
> would probably be tucked inside the regulatory bill given Schumer's
> closeness to Banking Chairman Christopher Dodd. "My guess is that just
> knowing how things work around here, [Dodd] may defer to him on some > of
> these corporate governance issues," Corker said.
>
> Corker then quizzed the panelists who testified Wednesday -- who > included
> labor officials, academics and an official for institutional > investors --
> on main provisions of Schumer's bill. He found the least resistance > on a
> shareholder say-on-pay vote and the requirement that board directors > must
> receive a majority vote in uncontested elections, but greater > opposition to
> splitting the CEO and chairman positions. Schumer indicated at the > hearing
> he was amenable to making some changes in that provision, especially > after
> hearing criticism from top executives.
>
> Corker spoke out especially against eliminating staggered board > terms. "I
> hope if we do anything on corporate governance, it is modest," > Corker said.
>
>
> http://www.nationaljournal.com/congressdai...090730_4609.php
>
> -----
> PEOPLE: PEOPLE
> By Mike Magner
>
>
> BACK TO SCHOOL. Education Secretary Duncan announced the > appointments of
> five top aides this week, including two with Capitol Hill > experience. Emma
> Vadehra, the deputy assistant secretary for planning, evaluation and > policy
> development, comes from the Senate Health, Education, Labor and > Pensions
> Committee, where she was senior education adviser for HELP Chairman > Edward
> Kennedy. Previously, she worked with Uncommon Schools, which develops
> charter schools. Michael Roark, currently chief financial officer > for AOL
> Europe, will become chief administrative officer in the office of the
> deputy secretary. Roark joined AOL in 2006 after working as CFO for > the
> Corcoran Gallery of Art. He worked in the early 1990s for Rep. Rosa
> DeLauro, D-Conn. Nia Phillips, who was a deputy political director in
> Georgia for President Obama during the 2008 campaign, will become > deputy
> general counsel for departmental and legislative services. She > previously
> taught first grade in Brooklyn, N.Y. Also joining Duncan's team are
> Jacqueline Jones, an assistant commissioner at the New Jersey > Department of
> Education, who will become senior adviser for early learning; and > Katherine
> Tobin, a governor of the U.S. Postal Service, who becomes deputy > assistant
> secretary for performance improvement.
>
> ONE RUBIN, TO GO. ACA International, the Association of Credit and
> Collection Professionals, has named Karolyn Rubin its president. > Rubin has
> been with Bonded Collection Corporation in Chicago for more than 23 > years.
> ACA International has more than 5,500 members in 65 countries, sets > ethical
> standards and trains employees in the debt-collection industry.
>
> DEFENSIVE MOVE. Kenneth A. Myers III, a former staffer on the Senate
> Foreign Relations Committee, has been sworn in as director of the > Defense
> Threat Reduction Agency at the Pentagon. Myers was a senior adviser > for
> Foreign Relations ranking member Richard Lugar, specializing in > European
> and former Soviet and Central Asian affairs. He joined the committee > in
> 2003. Myers earned a bachelor's degree at Virginia Tech and a master's
> degree from Catholic University.
>
> THE BIG Q. Qorvis Communications has added the former press > secretary for
> Rep. Lloyd Doggett, D-Texas, to its public affairs team. Wyeth > Ruthven, who
> worked for Doggett for more than three years, was one of 10 new hires
> announced by Qorvis this week. Ruthven was previously communications
> director for the South Carolina Democratic Party. Qorvis, founded in > 2000,
> is growing despite the recession. Managing partner Michael > Petruzzello said
> the firm has landed more than 20 new clients this year, including > Intel,
> the Kurdistan regional government of Iraq and Massey Energy. It > recently
> helped launch the "No Choke Points" coalition working on broadband > issues.
>
>
> http://www.nationaljournal.com/congressdai...090730_4483.php
>
> -----
> HOUSE RACE HOTLINE EXTRA: FIT TO SIZE
> By Tim Sahd
>
>
> He certainly didn't invent the idea, but when he led the Democratic
> Congressional Campaign Committee during the 2006 cycle, now-White > House
> Chief of Staff Emanuel prided himself on recruiting candidates who fit
> their districts.
>
> While Democrats had nominated liberals to run against former Rep. > Charles
> Taylor, R-N.C., Emanuel reached out to the former University of > Tennessee
> quarterback Heath Shuler and coaxed him into running. Shuler was an
> unlikely pick, considering he was actually recruited by Republicans > to run
> for office while in Tennessee. But in Taylor's western North Carolina
> district, that was just the type of Democrat who could win, and did.
>
> In Indiana, Democrats went into the "Bloody 8th," represented by GOP > Rep.
> John Hostettler, and recruited sheriff Brad Ellsworth. Ditto for > healthcare
> lobbyist Jason Altmire, who Democrats nabbed to challenge GOP Rep. > Melissa
> Hart in suburban Pittsburgh.
>
> All were conservatives -- socially, fiscally or both -- and all fit > their
> districts. None would find themselves the toast of DailyKos or other
> liberals, yet they all won and helped Democrats build a majority > coalition.
>
> Of course, politics and policy are two different beasts, and the > moderates
> in 2006 welcomed with open arms by the new Democratic majority are > now some
> of the Blue Dogs gumming up the works for the leadership on health > care.
>
> And now, some of them are targets, not only of Republicans, but of
> factions within their own party.
>
> Organizing for America, the outgrowth of President Obama's > presidential
> campaign, asked supporters to rally outside of the office of Rep. > Betsy
> Markey, D-Colo., in Fort Collins this week to pressure her on health > care.
> That organization wants Markey to support a public option, a move > she has
> yet to commit to. Later, OFA claimed the location was mixed-up and > moved
> it.
>
> The Democratic National Committee has also aired TV ads targeting > moderate
> Republicans and conservative Democrats, stating that "It's time for
> healthcare reform."
>
> But Democrats are hardly the first to have a problem with their > moderate
> elements.
>
> Republicans have fought the same battles, except they have played > out in
> primaries. And recently, conservatives have found an ally in the > Club for
> Growth.
>
> In 2008, the Club supported state Sen. Andy Harris against Maryland > GOP
> Rep. Wayne Gilchrest. Harris ran a TV ad showing voters calling > Gilchrest
> "too liberal" and saying, "he might as well be a Democrat." Harris > won the
> three-way primary with over 43 percent.
>
> In 2006, the Club spent over $500,000 to help former state Sen. Tim
> Walberg defeat Rep. Joe Schwarz, R-Mich.
>
> Both Gilchrest and Schwarz were not reliable votes for the GOP > leadership,
> and while former President George W. Bush and other party leaders
> campaigned for them, primary voters gave each the heave-ho. Their > gambits
> backfired; Democrats represent each seat. And intra-Republican Party
> turmoil has already started this cycle.
>
> In the special election to fill the seat of Rep. John McHugh, R-> N.Y., who
> will resign once confirmed as Army secretary, GOP leaders last week
> nominated Assemblywoman Deidre Scozzafava, choosing her over a > hearty field
> of challengers.
>
> What's remarkable is, after looking at her record, she doesn't > really fit
> into the box so many Republicans settle into these days, at least on > social
> issues. She favors abortion rights and voted for same-sex marriage. > For a
> time, she even considered running for the Democratic nod.
>
> But while Republican county chairmen weren't scared away by these
> positions -- it's a swing district where Obama took 52 percent -- > leaders
> on the right weren't so happy.
>
> The major problem: The New York Conservative Party likely won't > endorse
> her. Typically, Republicans don't win in the state unless the > Conservatives
> add them to their party's line in the general election. Conservative > Party
> Chairman Mike Long told us the last time a congressional Republican > won
> without his party's line was the late Rep. Bill Green in 1990.
>
> Some conservatives in the blogosphere, too, are unhappy with the > choice,
> and have called on donors not to give to Republican efforts to hold > the
> seat.
>
> Still, there seems to be little backlash inside the district, meaning
> Scozzafava may indeed fit the district -- the type of candidate who > wins
> elections, but gives the party headaches when it tries to govern.
>
> Republicans have trumpeted their success in recruiting moderates in > the
> Northeast and the West. Scozzafava's bid might be a test as to whether
> conservatives will accept these candidates as a way back to a > majority, or
> if they'll shun them in the general.
>
> And now that Democrats have the majority, and have to deal with > renegade
> members, will there be an element -- like the Club for Growth -- that
> targets them in primaries.
>
> The temptation's got to be there among the liberal base after watching
> House Democrats, with a 40-seat majority, struggle to come up with a > bill
> central to the party platform.
>
>
> http://www.nationaljournal.com/congressdai...090730_8127.php
>
> -----
> POLITICAL ROUNDUP: MATHESON WILL NOT SEEK STATEWIDE BID
>
> Rep. Jim Matheson, D-Utah, announced Wednesday he would seek re-> election
> and forgo a statewide bid next year, the Salt Lake Tribune reported.
>
> "The interest in my future plans as far as running for the U.S. > Senate or
> governor of Utah is very flattering," he said in a statement. "At this
> time, I feel that I can be most effective pursuing an agenda that > puts the
> people of Utah first by running for re-election for my current House > seat
> next year."
>
> Matheson last year won by 29 percent in his Republican-leaning > district.
>
> He left open the possibility of a statewide bid in the future.
>
>
> http://www.nationaljournal.com/congressdai...090730_4690.php
>
> -----
> POLITICAL ROUNDUP: DEMOCRATS TO PICK CANDIDATE FOR MCHUGH'S SEAT > AUG. 10
>
> The field of Democrats seeking to replace Rep. John McHugh, R-N.Y., > has
> been set, according to the party's county chairmen in the 23rd > District.
>
> The officials said the party will interview 11 candidates on Aug. 10 > and
> make a decision.
>
> Meanwhile, Dan French, a Democrat and former congressional staffer,
> Wednesday took his name out of the running, PolitickerNY reported.
>
> "While I intend to return to public service in the future, this is > not the
> right time for me or my family," French said.
>
> The former U.S. attorney said he considered entering the race > following
> state Sen. Darrel Aubertine's decision to pass on a bid last week.
>
> The field includes Andy Bisselle, a registered Republican who
> unsuccessfully sought that party's nomination for the seat; attorney > Stuart
> Brody; 1994 Democratic nominee Danny Francis; attorney Brian McGrath;
> attorney Michael Oot, who sought the seat last year; attorney William
> Owens; and John Sullivan, a former Oswego mayor.
>
> The winner will face Republican Assemblywoman Dierdre Scozzafava.
>
>
> http://www.nationaljournal.com/congressdai...090730_7623.php
>
> -----
> HILL BRIEFS: DEFENSE APPROPRIATIONS BILL UP FOR HOUSE VOTE TODAY
>
> The House on Wednesday began consideration of the FY10 Defense
> Appropriations bill, in anticipation of voting on the $636.3 billion
> spending measure today.
>
> During general debate, several Republicans took issue with an > amendment
> that House Defense Appropriations Subcommittee Chairman John Murtha, > D-Pa.,
> will offer today to strike a $369 million down payment in the bill > for 12
> F-22 Raptor fighter jets in FY11.
>
> "We cannot afford to take a chance and risk the lives of troops on the
> ground if we don't secure the air overhead," Defense Appropriations
> Subcommittee ranking member C.W. (Bill) Young, R-Fla., said.
>
> Once a proponent of buying more F-22s, Murtha reversed course last > week
> when the Senate voted, 58-40, to eliminate funding for the fighters > from
> the FY10 defense authorization bill after a strong push from President
> Obama, Defense Secretary Gates and other senior administration > officials to
> cap the program at the 187 fighters ordered.
>
>
> http://www.nationaljournal.com/congressdai...090730_1023.php
>
> -----
> HILL BRIEFS: KERRY: U.S. AND CHINA NEED MORE SPECIFIC CLIMATE GOALS
>
> Senate Foreign Relations Chairman John Kerry said Wednesday the United
> States and China need to work toward more concrete agreements on > climate
> change before the United Nations Climate Change Summit in December.
>
> Speaking at the National Press Club, Kerry gave both countries > credit for
> signing a memorandum of understanding on climate change after two > days of
> talks in Washington, but "more could have been and more should have > been
> done."
>
> Kerry called for a plan that articulated dates and performance goals,
> saying it was critical for the summit, and would help China make > long-term
> commitments for emissions reductions.
>
> "Aspirational commitments can't stand in the place of legal > commitments,"
> he said.
>
> Kerry also praised China for increasing its production of renewable
> energy, and hoped the United States would follow.
>
> On cap-and-trade legislation the Senate is working on, Kerry said he > was
> not contemplating that a bill would fail to pass in the fall. He said
> supporters were "going to keep working until we have the votes."
>
> Kerry added that passing legislation before the summit in Copenhagen,
> Denmark, will show that the United States has "led by example."
>
>
> http://www.nationaljournal.com/congressdai...090730_3357.php
>
> -----
> HILL BRIEFS: JEFFERSON BRIBERY CASE HEADED TOWARD JURY
>
> Closing arguments were presented Wednesday in the trial of former Rep.
> William Jefferson, D-La., with federal prosecutors saying that $90,000
> found in the freezer of Jefferson's Washington apartment in 2005 was > just
> the most recent bribe money he had received.
>
> Jefferson, who lost a re-election bid last year, is accused of > receiving
> more than $400,000 in bribes and seeking millions more in exchange for
> using his influence to broker business deals in Africa. Prosecutor > Rebeca
> Bellows told jurors in the Alexandria, Va., courtroom that Jefferson > was
> engaged in numerous bribery schemes while serving in Congress and > that the
> only difference with the money in the freezer is that he was caught > on tape
> receiving it.
>
> Jefferson's defense lawyers argued that while Jefferson may have > engaged
> in influence-peddling, he did not engage in illegal bribery. Lead > attorney
> Robert Trout said the government had overreached in trying to convict
> Jefferson and he urged the jury to "speak truth to power" and find him
> innocent on every count, the New Orleans Times-Picayune reported.
>
>
> http://www.nationaljournal.com/congressdai...090730_7194.php
>
> -----
> HILL BRIEFS: CFTC SAID LEANING TOWARD LIMITS ON FUTURES CONTRACTS
>
> The head of the Commodity Futures Trading Commission aired concerns
> Wednesday that exempting some investors from proposed position > limits on
> futures contracts could undermine efforts to rein in speculation in > energy
> trading, Reuters reported.
>
> "While I believe that we should maintain exemptions for bona fide > hedgers,
> I am concerned that granting exemptions for financial risk > management can
> defeat the effectiveness of position limits," CFTC Chairman Gary > Gensler
> said at a second hearing his agency has held on regulatory oversight > of
> U.S. futures markets.
>
> The CFTC is considering position limits to prevent manipulation of > energy
> markets by dominant players. It also is examining whether some traders
> should be able to exceed whatever limits are imposed.
>
> Gensler said he saw support for CFTC limits on how many futures > contracts
> can he held. "There seemed, at least, that the commission is hearing
> support," Gensler said after the hearing. "I think it's more a > question of
> how, than whether."
>
>
> http://www.nationaljournal.com/congressdai...090730_1872.php
>
> -----
> HILL BRIEFS: MEDICARE FRAUD SCAMS TARGETED IN FOUR STATES
>
> Federal authorities arrested more than 30 suspects in a major Medicare
> fraud bust Wednesday in New York, Louisiana, Boston and Houston, > targeting
> scams such as "arthritis kits" -- expensive braces that many > patients never
> used.
>
> More than 200 agents worked on the $16 million bust that included 12
> search warrants at healthcare businesses and homes across the > Houston area,
> where the bulk of the arrests were made.
>
> Some of the businesses were distributing arthritis kits that were > merely a
> combination of knee and shoulder braces and heating pads. Patients > told
> offic

[Snuffysmith]

> CongressDaily AM for Friday, July 31, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: BAUCUS PULLS THE PLUG ON HOPED-FOR MARKUP NEXT WEEK
> By Anna Edney with Peter Cohn and Dan Friedman contributing
>
>
> After a day of high emotions and partisan bickering, Senate Finance
> Chairman Max Baucus announced Thursday the panel will not mark up a
> bipartisan healthcare overhaul bill before August recess.
>
> Senate Budget Chairman Kent Conrad said the bipartisan group of six
> negotiators will meet, even if by videoconference, over the recess,.
>
> "If we speed this thing up to have it done by next weekend, it's a > train
> wreck," Senate Health, Education, Labor and Pensions ranking member > Michael
> Enzi said.
>
> The bipartisan talks appeared close to breaking down Thursday after a
> morning meeting of the group of six was canceled and Enzi and Finance
> ranking member Charles Grassley met with House Minority Whip Cantor
> instead.
>
> A GOP aide said the meeting that brought the senators across the > Capitol
> was for Cantor to get an update on the negotiations.
>
> The group of six eventually emerged from an evening meeting after a > long
> series of votes appearing to have smoothed over any hiccups. Conrad > said
> the group reaffirmed its commitment to reaching a deal.
>
> Meanwhile Baucus' personal office chief of staff, Jon Selib, held > another
> in a series of lobbyist stakeholder meetings Thursday where the > message
> was: Help us keep the Republicans at the negotiating table.
>
> "His argument was basically that the Finance Committee is the best > chance
> for a more centrist alternative" to the Health, Education, Labor and
> Pensions version and what is emerging in the House, said one meeting
> attendee. About 25-30 lobbyists were present, sources said.
>
> Attendees said Selib made the point that the GOP leadership rhetoric
> seemed to want to see the bill -- and by proxy President Obama -- > fail. In
> that case, if there is no bipartisan deal the alternative may be a
> Democrat-only bill that is much less business-friendly, according to
> attendees' description of Selib's argument.
>
> Baucus' message appeared to be breaking through to elements of the
> business community. In a statement Thursday afternoon, Business > Roundtable
> President John Castellani said the bipartisan Finance negotiations > should
> continue. "We have been at the table from Day 1 with our sleeves > rolled-up
> and extend our continued support on this effort," he said. "We can > get this
> right and we can do it this year, but only by continuing to work > together."
>
> Democrats changed their priority on deadlines as they saw the > writing on
> the wall Thursday, moving from pushing for a markup next week to > caring
> only about passage of an overhaul bill by the end of the year.
>
> "It's important to get the bill signed into law by the end of the > year --
> that's the only deadline that matters," Sen. Charles Schumer, D-> N.Y., said.
>
> Senate Majority Leader Reid said, "The only problem we have with > having a
> bipartisan bill is the Senate Republican leadership," Reid said. > "Sen. Enzi
> and Sen. Grassley have [been] under great pressure."
>
> Enzi said he was not being pressured against a deal and Grassley > fired off
> a statement warning Democrats not to rush them.
>
> "The bipartisan discussions that Chairman Baucus has led in the Senate
> Finance Committee have made very good progress because of his long-> term
> commitment to bipartisanship, and could lead to a bill that makes > things
> better, not worse. But that'll never happen if Democrat leaders tell
> Republicans to take a hike by forcing the committee to move on an
> all-Democrat bill," Grassley said.
>
> Conrad admitted Democratic leadership, including President Obama, have
> pushed them to move quickly. "Their job is to press because we all > know
> work expands to fill the time. Unless there's pressure, things tend to
> drift," Conrad said. "The president's job, the leader's job is to > press and
> they've done that."
>
>
> http://www.nationaljournal.com/congressdai...090731_2032.php
>
> -----
> POLITICS: GOP SEES RECESS AS CHANCE FOR POLICY, POLITICAL POINTS
> By Erin McPike and Billy House with Dan Friedman contributing
>
>
> Republicans plan to use the August recess to attack Democrats on both
> policy and politics, using the debate over healthcare reform as their
> primary ammunition.
>
> "Vulnerable Democrats are limping into the August recess in their
> most-weakened condition since the inception of their majority," > Republican
> candidates are being told, according to a memo from the National > Republican
> Congressional Committee obtained by CongressDaily. "This presents a > prime
> opportunity for Republican candidates to spend the next five weeks > on the
> offensive."
>
> Similarly, talking points provided to House Republicans by the GOP
> leadership urge them to use events in their districts to stress that > the
> Democratic legislation would lead to a government takeover of health > care
> that would raise taxes and kill jobs.
>
> Democrats countered by urging lawmakers to "go on offense" and remind
> constituents that overhauling the healthcare system will allow medical
> decisions to be made by patients and their physicians, not insurance
> companies.
>
> The recess comes at a critical time in the process, with much of the > work
> on House and Senate versions of the plans being put off until after > Labor
> Day. The House is expected to leave today. The Senate will be in > session
> another week, although much of that time might be devoted to > debating the
> Supreme Court nomination of Judge Sonia Sotomayor.
>
> The NRCC memo urges GOP candidates to also turn up the heat on > Democrats
> over energy and the economy, particularly focusing on job losses since
> President Obama took office in January.
>
> "The combination of a failed trillion-dollar stimulus bill and a
> job-killing National Energy Tax may have amounted to ... potentially
> 'career-ending' votes for many Democrat incumbents," the memo noted.
>
> Keying on domestic issues represents a marked shift from the GOP's > focus
> on national security and defense in recent election cycles.
>
> "It's not the wars; it's not security," NRCC Chairman Pete Sessions of
> Texas said. "It's jobs and the middle class, and we believe the > Democrats
> have left gaping holes there that allow us to go on offense on these
> domestic issues in our campaigns."
>
> Democratic Congressional Campaign Committee Chairman Chris Van > Hollen of
> Maryland dismissed the Republican approach as "all politics" and > said that
> on health care, energy and other issues, Republicans "are in the > cynical
> position of wanting everything to fail."
>
> Van Hollen pledged that Democrats would not let GOP attacks go > unanswered,
> citing a lesson the party learned by not responding quickly enough to
> criticisms of Sen. John Kerry, D-Mass., in the 2004 presidential race.
>
> "We are not going to allow Republicans to `swift boat' health care in
> August," Van Hollen said.
>
> The Democratic response will include an aggressive advertising > campaign
> from the Democratic National Committee, outreach by the White House > and
> Democratic lawmakers barnstorming their districts, he said, noting: > "What
> people here don't seem to understand is that Washington shuts down in
> August, but people out in the districts are tuned in and that's > where the
> action is. We're going out there and listening now to what people > want."
>
> Democratic leaders urged House members to hold town hall meetings, > tour
> hospitals and senior citizen centers and give speeches to medical or
> nursing students. They offered one specific example: "a rally with > college
> students in your area who are often uninsured or underinsured."
>
> Republican House members are being told to underscore that the > Democratic
> plans would lead to more than $800 billion in new tax increases -- > with
> some of those increases on small businesses, "the engine of job > creation in
> this country."
>
> House Republicans will also argue that they oppose any effort that > puts
> Washington bureaucrats between patients and their physicians, and > the GOP
> has a plan that would expand access to affordable care while allowing
> families to choose the care that best fits their needs.
>
> While Senate leaders have another week to develop their recess plans,
> Republicans in that chamber will focus on grassroots outreach. The > message
> -- opposition to a "government takeover," concern about growing > deficits --
> will not change, but the intensity and volume will ramp up, GOP > aides said.
>
> "You're going to see a tremendous amount of activity, local radio, > town
> halls, meeting with doctors, meetings with seniors," one aide added.
>
> For Senate Democrats, the focus will be on explaining what their
> legislation would do.
>
> "The more the American people know, the better we are going to do," > said
> Sen. Charles Schumer, D-N.Y.
>
> Added Senate Majority Whip Durbin, "Let's face it, aside from a > handful of
> Republicans, they're just opposed to change. They don't want > healthcare
> reform."
>
>
> http://www.nationaljournal.com/congressdai...090731_6301.php
>
> -----
> FINANCE: CASTLE ON GUARD FOR ENCROACHMENT ON CORPORATE GOVERNANCE
> By Bill Swindell
>
>
> The House today is slated to pass legislation to give shareholders a
> greater say on corporate pay packages in a vote that will be hailed > as the
> first major step in curbing the excesses that led to the collapse of > the
> banking sector and housing market.
>
> But for Rep. Michael Castle, R-Del., the debate will be secondary as > he
> waits to see if the next shoe drops in the march to further regulate
> corporate governance standards.
>
> The issue is of primary importance for Castle because Delaware is the
> nation's overwhelming leader for corporate headquarters. More than 50
> percent of all publicly traded U.S. companies and 63 percent of the > Fortune
> 500 have made the First State their legal home because of its history,
> streamlined judicial system and what critics say is a playing field > tilted
> heavily toward the boardroom rather than shareholders.
>
> The corresponding money from such franchise taxes and other fees > makes up
> about a third of the state's revenue.
>
> "It's the camel's nose under the tent," said Castle. "This bill > isn't that
> big of an intrusion in that area. I'm worried that the committee is > delving
> into areas that are clearly a state's prerogative. Delaware is the > state
> that leads the pack in that area. I just worry about anything that > hints at
> that. That is one of my concerns with this ... the next step."
>
> The issue highlights one of the major aspects of a regulatory reform
> debate: that while there are certain partisan divisions, parochial > concerns
> also play a significant role. For example, House Financial Services
> Chairman Barney Frank is attuned to mutual savings banks, an > industry that
> has historically had a strong presence in Massachusetts, by > retaining the
> thrift charter in agency consolidation against the wishes of the > Treasury
> Department.
>
> Senate Banking Chairman Christopher Dodd has a keen eye for the > insurance
> industry, which still has a large presence in his home state of
> Connecticut.
>
> The corporate governance issue is further heightened because Sen. > Charles
> Schumer, D.N.Y., is leading the charge with his expansive bill that > would
> split the duties between the board chairman and CEO, require annual
> director elections and eliminate staggered board terms.
>
> "There was a widespread failure of corporate governance that has > proven to
> be disastrous not just for individual businesses, but also for the > economy
> as a whole," Schumer said.
>
> The U.S. Chamber of Commerce is especially wary of the Schumer bill, > which
> it contends would impose a one-size-fits-all package that would reward
> activist shareholders. But Schumer is close to Dodd -- he even > lobbied to
> get a Senate Banking Securities Subcommittee hearing on the issue > Wednesday
> -- and is expected to try to attach some form of his legislation to > the
> regulatory package.
>
> Frank has not yet detailed his next moves on corporate governance, but
> Castle said comments Frank made Tuesday during the markup on the say-> on-pay
> bill give him pause.
>
> "It's a potential threat, and for that reason needs to be watched
> carefully," said Castle, who is actively being lobbied by Senate
> Republicans to run for the open seat Sen. Ted Kaufman, D-Del., will > give up
> next year.
>
> In fact, the issue could play in any potential Senate campaign, > especially
> if used as a line of attack that the Democratic Congress needs to be > held
> in check so it does not interfere in areas where states have had > much freer
> reign.
>
> "I would imagine that even if Delaware is the leading state, that most
> states would be concerned about that. Most states have their own
> corporation laws," Castle said. "They would be unhappy [with] a > federal
> takeover of a corporation at some point."
>
> Delaware politicians have taken notice, especially as the SEC has > proposed
> a rule that would require companies in some circumstances to include > in
> their proxy materials the nominations for directors by shareholders. > In
> response, the state Legislature passed legislation in April that would
> allow a company to amend its bylaws to give shareholders such a > similar
> right.
>
> But critics said the effort was still short. "We think this a core > right
> that should be federalized. We think the states have failed for too > long,
> Delaware in particular. It only acted when it had to," said Ann > Yerger,
> executive director of the Council of Institutional Investors during > the
> Wednesday Senate Banking Securities Subcommittee hearing.
>
> But Sen. Mike Johanns, R-Neb., said he sympathized with Delaware. He > noted
> that when he was governor he wanted to steal away some of its > corporations
> even if firms rarely switch once they find a state to incorporate.
>
> "I decided I was going to take on Delaware. Now what I realized about
> Delaware: It had one heck of a good start and it was doing more things
> right than they were doing wrong, and it was going to be very, very
> difficult to get there," Johanns said. "We have a very, very profound
> impact on the history of corporate governance in this nation. I just > don't
> think we should do this lightly."
>
>
> http://www.nationaljournal.com/congressdai...090731_8572.php
>
> -----
> APPROPRIATIONS: HOUSE RESTRICTIONS PROVIDE GOP WITH POLITICAL WEAPON
> By Richard E. Cohen
>
>
> House debate on the annual spending bills sputtered to a conclusion
> Thursday. In a sense, both parties appear to have achieved their > short-term
> goals, though the debate was largely overshadowed by this summer's > debates
> on the Democrats' health and climate-change legislation.
>
> With Thursday's passage of the Defense Appropriations bill as the > 12th --
> and final -- FY10 spending bill, House Democrats finished all of their
> appropriations work before the August recess.
>
> But with the Senate not even close to matching that pace, > appropriators
> concede it is unlikely many of those bills will be enacted before > the Oct.
> 1 start of the new fiscal year. As a result, Democrats will be > forced to
> resort to the familiar and often-criticized practice of continuing
> resolutions and omnibus spending bills to finance large parts of the
> federal bureaucracy.
>
> More interesting has been the Republican handling of the spending > bills,
> which operated on several levels. In the routine work of > Appropriations
> subcommittees, Republicans largely cooperated with their Democratic
> counterparts and voted for the measures on the House floor, even after
> often-vituperative debate.
>
> Republicans gained more attention with their activities on the House > floor
> to force debate on numerous amendments -- chiefly to spotlight the
> appropriators' continuing use of earmarks. When that approach > brought a
> quick Democratic response to stifle the GOP amendments, Republicans
> coalesced to object to the majority party's parliamentary tactics.
>
> Led chiefly by Rules ranking member David Dreier, they highlighted the
> significant historical change of the House abandoning the tradition > of open
> rules in debating appropriations bills. In a report issued on > Wednesday
> that was entitled "Opportunities Lost: The End of the Appropriations
> Process," the Rules Committee Republicans offered the following > conclusion:
> The "irony" of the Democratic majority, according to the GOP Rules > members,
> is "the party that promised to do things differently has done so, > but not
> in the direction that they promised. Rather than an open process, they
> chose to close it down; instead of opportunity, they limited debate."
>
> With a bill-by-bill review of the amendments debated, and hours > spent on
> each appropriation bill since 1992, the Republican report showed > that this
> year's approximately 72 hours of debate was the lowest total in 18 > years.
> And the average of roughly 15 amendments that the Democrats > permitted for
> debate was among the fewest in the past decade. "Comparing the 2006
> appropriations season with 2009, we find that there were more than 1/3
> fewer amendments allowed in 2009 than were offered in 2006," the > last year
> of Republican control, according to the report.
>
> Minority Leader Boehner cited the appropriations scuffle as one of > this
> year's GOP success stories. "When Democrats decided to change all > the rules
> and to shut down the right of the majority and the minority to offer
> amendments, we had no choice but to object." Although he conceded > that "the
> energy and health bills eclipsed the appropriations process," he > added that
> the spending debate showed "Republicans were fighting back."
>
> Rep. Tom Cole, R-Okla., who joined the Appropriations Committee this > year,
> reflected his party's split view. While praising the panel for > "working
> very well internally" and giving Appropriations Chairman David Obey > "high
> marks for moving product," he criticized the majority's floor > strategy.
> "Democratic leaders are so afraid of being embarrassed by tough > votes that
> they have antagonized members of both parties who want to offer
> amendments," Cole said.
>
> Like other Republicans, Cole worried that the long-term effect is > that the
> House will never return to open debates on the spending bills. "You > need to
> let the institution breathe," he said.
>
> Obey, who mostly avoided public comment in response to the GOP > attacks,
> said during July 10 debate on the Military Construction-VA spending > bill
> that debate restrictions on appropriations bills have been common in > past
> years.
>
> He also cited the historical precedent that tax bills from the Ways > and
> Means Committee typically are debated under restricted rules. In > part, that
> happened because of the long-ago practice of Ways and Means Democrats
> having the additional clout of handing out House committee > assignments.
>
> Although Democrats abandoned that practice in the 1970s, Obey > clearly has
> a long memory. Likewise, this year's spending debates likely will > become
> part of a new House history.
>
>
> http://www.nationaljournal.com/congressdai...090731_7507.php
>
> -----
> APPROPRIATIONS: SENATE PANEL SENDS LABOR-HHS, TRANSPORTATION BILLS TO
> FLOOR
> By Humberto Sanchez
>
>
> The Senate Appropriations Committee Thursday approved two FY10 > spending
> bills, including the $163.1 billion Labor-HHS Appropriations bill, > which
> provides $10.5 billion above the amount provided in FY09.
>
> The bill, approved 29-1, includes $72.5 billion for HHS, $63.4 > billion for
> the Education Department and $13.2 billion for the Labor Department.
>
> The committee also approved, 31-0, the $67.7 billion Transportation-> HUD
> Appropriations bill, which is about $13 billion over the amount > provided in
> FY09. That measure includes $42.5 billion for highway construction, > $1.2
> billion for intercity and high-speed rail, and $1.1 billion for > significant
> transportation projects. Tenant based-Section 8 low-income rental
> assistance program would receive $18.1 billion and project-based > rental
> assistance would receive $8.1 billion. HUD's Community Development > Block
> Grant program would receive $3.9 billion.
>
> The two bills are the 10th and 11th of the 12 annual spending bills > the
> committee has considered. Senate Appropriations Chairman Daniel > Inouye said
> the panel will move to consider the final bill, the Defense > Appropriations
> bill, in early September.
>
> Action on the bills comes after the House last week approved a $160.7
> billion Labor-HHS bill and a $68.8 billion Transportation-HUD measure.
>
> Senate Labor-HHS Appropriations Subcommittee Chairman Tom Harkin, D-> Iowa,
> highlighted $700 million for school renovations in the bill.
>
> Harkin said school renovation had not been funded at a national scale
> since FY01 and that it was slated to receive funding in the > stimulus, but
> ultimately no funds were directly allocated.
>
> "It creates jobs; it makes schools healthier; it improves energy
> efficiency; and most importantly, when students are in schools that > are
> safe, they do better academically," Harkin said.
>
> During debate on the Labor-HHS bill, the panel rejected an amendment,
> 16-13, by Sen. Mary Landrieu, D-La., to redirect $100 million in > education
> funding to the teacher incentive fund.
>
> Landrieu said that over half of the nation's teachers leave the > profession
> by their fifth year, and the program would help retain them.
>
> But Sen. Patty Murray, D-Wash., said the funding would come from
> successful teacher recruitment, certification and further training
> programs. She also said it would result in a cut of $1.6 million in
> education funding to her state.
>
> The bill provides $30.8 billion for NIH, $442 million over FY09 > funding.
>
> No amendments were offered to the Transportation-HUD bill, but Sen.
> Richard Shelby, R-Ala., said he plans to offer an amendment on the > floor to
> strip three provisions involving transportation programs. One > provision
> "would have the effect of allowing the Federal Transit > Administration to
> make commitments well in excess of any funding that may be provided > through
> a future authorization bill," Shelby said. Shelby is ranking member > of the
> Banking Committee, which oversees public transit issues in the Senate.
>
>
> http://www.nationaljournal.com/congressdai...090731_2937.php
>
> -----
> LOBBYING: HEALTHCARE DEBATE WILL DOG DEMOCRATS ALL THE WAY HOME
> By Carrie Dann
>
>
> Against a headwind of national polls showing sagging support for the
> healthcare overhaul backed by President Obama, Democratic lawmakers > will
> return home in August under a hail of advertisements and advocacy > drives
> for and against the proposals.
>
> The message from their supporters: reform is still popular.
>
> "We are assuring senators and members of Congress that the president's
> initiatives are popular in their states," said Jeremy Funk, a > spokesman for
> the pro-Obama group Americans United for Change. "They don't have to
> worry."
>
> Funk said his group will be hosting grassroots events throughout the > month
> to highlight broad public support for the president's initiatives for
> energy and health reform.
>
> But the lawmakers being pressured most heavily by pro-reform groups --
> Blue Dogs, moderate and conservative Senate Democrats and key > negotiators
> on the Senate Finance and Budget committees -- will face a fresh > round of
> attacks from opponents of the reform effort, who contend that the > proposed
> changes are neither popular nor productive.
>
> Meanwhile, sponsors of advertising campaigns pushing opposing points > of
> view expect to keep busy.
>
> Blue Dog Democratic Reps. Bart Gordon of Tennessee, Baron Hill of > Indiana,
> Mike Ross of Arkansas and Zack Space of Ohio will be among the > targets of a
> fresh campaign from the National Republican Campaign Committee, > which hopes
> to depict the four negotiators for their caucus as having caved to > party
> leadership in their meetings this week over elements of the House > bill.
>
> The Republican National Committee has also launched radio ads in 33 > states
> against 60 Democrats -- including over 30 Blue Dogs -- warning that > the
> changes promoted by Obama are "too much, too fast."
>
> On the other side of the debate, Americans United for Change recently
> launched a radio campaign targeting Sen. Olympia Snowe, R-Maine, a > Finance
> Committee negotiator seeking a bipartisan deal on health care, > calling her
> "a linchpin" in the talks. More ads targeting other key lawmakers > are on
> tap, Funk said.
>
> A plethora of pro-reform groups - including labor unions, physicians'
> groups, and business coalitions - plan to be active in lawmakers'
> districts, appearing at town hall meetings, hosting roundtables and
> letter-writing drives and even staying up all night to demonstrate > support
> for the president's healthcare agenda.
>
> The Service Employees International Union boasts that its members will
> participate in 400 events nationwide, including rallies in Nebraska > and
> Indiana, home states of moderate Democratic Sens. Ben Nelson and > Evan Bayh,
> respectively.
>
> Union members also plan to host an all-night vigil in North Dakota, > home
> to Senate Budget Chairman Kent Conrad, another key negotiator.
>
> "We are going to be totally consumed by health care," said Chuck > Loveless,
> legislative director for the American Federation of State, County and
> Municipal Employees. The union is sponsoring a mobile "activism > center"
> that will tour 10 states to tout its support for inclusion of a public
> insurance plan and an employer mandate in health legislation.
>
> Loveless said the union originally had planned to lean most heavily on
> targets in the Senate, but this week's delay of House passage of the > bill
> shifted attention toward the Blue Dogs.
>
> "It does mean that we have more targets, which means we'll devote more
> resources and more activists" to the advocacy effort, he said. "This > makes
> the situation more complicated."
>
> But some Democratic strategists are optimistic that hitting the pause
> button on the House vote may have benefited party lawmakers, > especially
> those who may be antsy about how their past votes on the economic > stimulus
> package and climate change are faring with voters.
>
> "It's actually an advantage for us," said one senior Democratic aide.
> "Democrats are harder to shoot at when they haven't voted yet."
>
>
> http://www.nationaljournal.com/congressdai...090731_6226.php
>
> -----
> HEALTH: LIBERAL DEMOCRATS WORKING TO PUT OWN STAMP ON BILL
> By Kasie Hunt with Billy House contributing
>
>
> Liberal House Energy and Commerce Democrats worked Thursday to > sweeten a
> deal leaders made with the Blue Dog Coalition to try to make the > changes
> more palatable.
>
> "Some of the things progressive members would like to see would be > added
> to the amendment, so it wouldn't just be a Blue Dog amendment > changing the
> bill for the worse, but it would be some improvements of the bill," > said
> Rep. Eliot Engel, D-N.Y.
>
> Progressives were negotiating with Blue Dogs as the Energy and > Commerce
> markup continued into the evening.
>
> Liberal Democrats are primarily concerned about changes to the > public plan
> and reduced subsidies to help low-income families buy health > insurance. The
> Blue Dog agreement reduces the subsidies to help pay for an expanded
> small-business exemption, members said.
>
> Liberals are looking for other ways to pay for the exemption so they > can
> maintain the bill's savings and keep the subsidies, Engel said.
>
> Allowing the reimportation of prescription drugs could be one way to > save
> money, as could other measures aimed at squeezing more savings from
> pharmaceutical companies.
>
> Altering the agreement could lead one or more of the four Blue Dogs > who
> made the agreement to jump ship. "We're at the table. We're trying to
> decide whether we can accept the changes," said Rep. Baron Hill, D-> Ind.
>
> The group's point man on health care, Rep. Mike Ross, D-Ark., said the
> agreement still held. "I stand by our agreement," he said late > Thursday
> afternoon. Rep. Zack Space., D-Ohio, and Rep. Bart Gordon, D-Tenn., > are the
> other two who signed onto the deal.
>
> "We're working on it," said Energy and Commerce Chairman Henry > Waxman when
> asked when members would see complete language for the Blue Dog > agreement
> and any additions.
>
> Waxman was also busy wooing liberals. "He's working it very hard," > said
> Rep. Bart Stupak, D-Mich., who said he would likely give Waxman his > vote on
> the amendments.
>
> A number of Democrats were considering voting against the package of > Blue
> Dog amendments if they remained unchanged. "Some people are talking > about
> that," said Rep. Peter Welch, D-Vt., a member of the Congressional
> Progressive Caucus.
>
> But defeating the bill in committee would be a significant setback.
> "There's some real collateral damage to that. If the bill goes down,
> there's real consequences," Welch said.
>
> "If we don't move the bill out of the committee, it's bad for > Democrats,"
> Engel said.
>
> Progressives are discussing whether leadership could assuage some of > their
> concerns when the Energy and Commerce bill is melded with companion
> measures from the Ways and Means and Education and Labor committees. > If
> changes aren't made, House leaders expect a revolt from the > Progressive
> Caucus. Fifty-seven liberal Democrats sent a letter Thursday to > leadership
> saying the Energy and Commerce agreement with Blue Dogs is > "fundamentally
> unacceptable."
>
> "This agreement will result in the public, both as insurance > purchasers
> and as taxpayers, paying ever higher rates to insurance companies," > the
> letter said. "We simply cannot vote for such a proposal." They called
> unacceptable the section of the agreement that requires the HHS > secretary
> to negotiate public plan rates with providers instead of basing them > on
> Medicare.
>
> Leaders pushed back against progressives' objections to changes to the
> public plan. "The language that is in the proposal by the Blue Dogs > is the
> exact same language as in the HELP bill in the Senate, Sen. Kennedy's
> bill," said House Speaker Pelosi, referring to Health, Education, > Labor and
> Pensions Chairman Edward Kennedy. "Sen. Kennedy's bill -- and need I > go
> into his history on this subject? -- is one that I think would be > OK," she
> said, although she also acknowledged, "It's not my preference."
>
> Energy and Commerce Health Subcommittee Chairman Frank Pallone, D-> N.J.,
> said the compromise language on the public plan was a step in the > right
> direction. "You have to get doctors to participate," he said. > Allowing the
> HHS secretary to set rates closer to those of private insurers would
> provide more of an incentive for physicians and hospitals to accept > public
> plan patients, Pallone said.
>
> The challenge could result in another showdown with Blue Dogs. The > more
> conservative coalition could find an ally in Majority Leader Hoyer, > who
> played a significant behind-the-scenes role in keeping them at the
> negotiating table. "When folks were ready to walk away from the > table, he
> was really good at bringing everyone around," a Democratic > leadership aide
> said. Hoyer has "always had the trust and good faith of those > members," the
> aide said.
>
>
> http://www.nationaljournal.com/congressdai...090731_7034.php
>
> -----
> HEALTH: PANEL RESUMES MARATHON MARKUP
> By Andy Leonatti
>
>
> After days of negotiations, the House Energy and Commerce Committee
> Thursday resumed its markup of healthcare legislation.
>
> As the hours passed and the boxes of amendments appeared to not get
> smaller, Energy and Commerce Democrats were able to keep their fragile
> Caucus together to defeat Republican amendments.
>
> Those amendments included malpractice damage caps and vouchers for
> low-income people to obtain private health coverage. The committee > worked
> late into the night and was expected to reach the first division of > the
> bill, dealing with a public health insurance option and health > insurance
> exchange, late. Before breaking for votes on the floor, though, it > was hard
> to tell how many amendments remained, as Energy and Commerce ranking > member
> Joe Barton tried to tell Energy and Commerce Chairman Henry Waxman > that his
> side only had one remaining amendment to the second division. Just > then,
> Rep. Greg Walden, R-Ore., put up fingers, as Barton asked, "Two > more? Three
> more?"
>
> The room remained packed with lobbyists throughout the day, and > members
> occasionally became restless. "The Republicans are acting like British
> parliamentarians. Contain your mirth," Waxman said to Republicans who
> erupted in laughter and catcalls when Rep. Anthony Weiner, D-N.Y., > said
> healthcare reform would eventually lead to lower taxes.
>
>
> http://www.nationaljournal.com/congressdai...090731_9012.php
>
> -----
> TRANSPORTATION: SENATE APPROVES SHORT-TERM FIX FOR HIGHWAY TRUST FUND
> By Darren Goode
>
>
> The Senate Thursday followed the lead of the House in easily > approving a
> $7 billion short-term fix to the federal highway program, ensuring > that it
> will stay solvent through at least the rest of the fiscal year.
>
> The 79-17 vote followed the defeat of four Republican amendments, > three of
> which would have used stimulus dollars to pay for short-term aid for > the
> federal Highway Trust Fund, unemployment insurance and mortgages. A
> Republican budget point of order was also defeated.
>
> In a well-oiled argument, Republicans said stimulus dollars have
> contributed to a mounting deficit while not lowering unemployment.
> Democrats -- in an equally tailored response -- stressed that more > time is
> needed to dole out the dollars and see the results.
>
> The fourth amendment -- offered by Environment and Public Works
> Transportation and Infrastructure ranking member Christopher (Kit) > Bond,
> R-Mo. -- would have eliminated a requirement in the 2005 surface
> transportation bill rescinding unused authorized spending at the end > of
> this fiscal year, totaling $8.7 billion.
>
> Democrats said they support Bond's amendment and promised to adopt > it in
> September, when they plan to take up an extension of the 2005 law > before it
> expires to avoid sending back to the House an amended version of a > bill
> lawmakers already passed this week. "We're fearful [of] playing these
> parliamentary games with the House," Environment and Public Works
> Chairwoman Barbara Boxer said. But she added, "We must deal with this
> rescission. We have to repeal it, and we're going to repeal it."
>
> The defeat of Bond's amendment and one from Sen. David Vitter, R-> La., to
> use stimulus funds instead of the general Treasury to shore up the > federal
> highway program almost cost the support of Environment and Public > Works
> ranking member James Inhofe for the House bill, his spokesman said.
>
> Inhofe is one of the more fiscally conservative Senate Republicans > but has
> consistently said infrastructure and defense spending are the > exceptions to
> that philosophy. "I think the thing that bothers me more than > anything else
> is that the House put us in this position," Inhofe said before voting
> against a point of order against the bill from Vitter. The point of > order
> was defeated, 71-26.
>
> This week's decision by the Senate to placate the House precedes
> potentially acrimonious discussions in September between Democratic > leaders
> in the two chambers over whether and how long to extend surface
> transportation law, which expires Sept. 30. Senate Democrats agree > with the
> Obama administration that the law should be extended 18 months. House
> Transportation and Infrastructure Chairman James Oberstar has led a > bit of
> a revolt in opposing any extension in order to keep pressure on > lawmakers
> to act on a six-year reauthorization bill. Oberstar has pledged to > bring a
> bill to the House floor in September, even though the Ways and Means
> Committee, which has been immersed in the health debate, needs to > first
> come up with a way to finance it. Congress is expected to approve > some kind
> of extension as Senate Democratic leaders are united in saying they > do not
> have time to finish a bill, what with other priorities like health > care and
> climate change competing for time.
>
>
> http://www.nationaljournal.com/congressdai...090731_6578.php
>
> -----
> HEALTH: SOME DEVICE MAKERS THINK PLEDGED CUTS ARE TOO STEEP
> By Anna Edney
>
>
> After signing on to a cost-cutting promise to the White House > earlier this
> year with five other industry groups, medical device makers are > attempting
> to shrink the size of the savings commitment that is the topic of > their
> recent negotiations with the Senate Finance Committee.
>
> The negotiations are causing infighting in the device industry between
> those who are trying to mitigate the outcome and others who refuse > to cut a
> deal at all. The perception among many is that the Advanced Medical
> Technology Association's signature on that letter in May pledging to > find
> $2 trillion in savings to help pay for a healthcare overhaul might > not have
> been the best idea.
>
> One industry source referred to the latest squabbling as a "food > fight."
>
> "If folks negotiate a deal with AdvaMed, they should recognize it > was not
> a deal with the entire device industry," said Mark Leahey, CEO of the
> Medical Device Manufacturers Association.
>
> MDMA tends to represent smaller device companies than those that fall
> under AdvaMed's membership. AdvaMed declined to comment on the
> negotiations.
>
> The other healthcare groups -- like those that represent insurers,
> drugmakers and hospitals -- that penned their signatures on the > savings
> pledge have something to gain from the increase in the insured > population
> that a healthcare overhaul is expected to bring, while devices are a
> different beast that will not reap the same benefits.
>
> The Finance Committee wants $60 billion out of device companies, > sources
> said. The device industry is willing to put up $15 billion to $25 > billion
> at most. Sources do not expect any announcement of a deal, if there > is one,
> until September.
>
> Wall Street views anything above $15 billion as a net negative based > on
> the minimal perks the device industry will see, according to a memo > last
> week from Wells Fargo.
>
> "A $15B cut would represent 6 percent of industry operating profits, > less
> than the hospital and [pharmaceutical] deals signed earlier this > year, and
> would entirely offset the expected volume increase from universal
> coverage," Wells Fargo analysts wrote.
>
> The Pharmaceutical Research and Manufacturers of America forged an $80
> billion cost-cutting deal with Finance, and the hospital industry > promised
> to take cuts totaling $155 billion in the agreement it reached with
> Finance.
>
> Device makers feel they are getting the sharp end of the stick because
> they sell their products to hospitals rather than consumers, and > hospitals
> use the devices regardless of patients' insurance status. Hospitals > are not
> in the business of denying a lifesaving heart stent to a dying > patient, for
> example.
>
> At the same time, device makers believe they will take a hit from > the cuts
> the hospital industry agreed to. Wells Fargo's analysis that $15 > billion is
> the most the device industry can afford to lose does not even take > into
> account potential effects of the hospital cuts.
>
> The device industry also is not sitting on any big-ticket sweeteners > like
> PhRMA, which negotiated a promise from the administration to exclude
> reimportation of drugs from the overhaul effort. For the hospital
> associations, the overhaul bill is expected to include a ban on new
> physician-owned hospitals, which traditional hospitals argue unfairly
> cherry-pick their patients.
>
> The Finance Committee originally discussed some sort of rebate > program to
> raise revenue from the device industry, but quickly discarded the > idea,
> sources said, because device companies are not directly reimbursed. An
> option under consideration is a surtax on device makers' revenue.
>
> Leahey said he cannot support a tax. "Any additional tax would > really have
> a chilling impact," he said.
>
> A device industry source said some type of tax is beginning to look
> likely. "We're not going to like it, but I think some sort of > innovation
> tax will happen," the source said.
>
>
> http://www.nationaljournal.com/congressdai...090731_5467.php
>
> -----
> TRADE: ASSURANCES MET, GRASSLEY TO LIFT HOLD ON BRAZIL NOMINEE
> By Peter Cohn
>
>
> Senate Finance ranking member Charles Grassley said Thursday he > would lift
> his hold on the nomination of Thomas Shannon to be U.S. ambassador to
> Brazil, after receiving assurances that the White House does not > support
> ending tariffs on imported ethanol.
>
> During Shannon's July 8 confirmation hearing before the Senate Foreign
> Relations Committee, under questioning from Sen. Jim Webb, D-Va. -- a
> critic of ethanol tariffs -- Shannon told the panel it was his view > that
> lifting the duty could be beneficial to both countries.
>
> That prompted Grassley this week to fire off a letter to Secretary of
> State Clinton and Trade Representative Kirk demanding they clarify the
> administration's position on the tariff before he lets the > nomination go
> through. Grassley noted President Obama defended the tariff during > his time
> as an Illinois senator and on the presidential campaign trail.
>
> "The Obama administration is committed to developing our domestic > biofuels
> industry in order to reduce U.S. dependence on oil imports and > increase our
> use of renewable energy resources. There has been no change of > policy with
> respect to the U.S. import surcharge of $0.54 per gallon on > ethanol," wrote
> Kirk and Clinton in a response to Grassley dated Wednesday.
>
> Brazil is the world's second-largest ethanol producer after the United
> States and the imports of its sugarcane-based variety accounted for > most of
> the 557 million gallons shipped to the United States last year, > according
> to the Congressional Research Service.
>
> A large portion of Brazil's imports are actually transshipped duty-> free
> through El Salvador, Costa Rica, Jamaica, and Trinidad and Tobago. > Under
> the Caribbean Basin Initiative, those countries can import ethanol > from
> Brazil, alter it through a dehydration process and send it on to the > United
> States duty-free, provided CBI exports total no more than 7 percent > of U.S.
> ethanol use.
>
> That cap has never even come close to being met, Grassley said, and in
> fact total U.S. imports accounted for only 6 percent of domestic > use. By
> contrast, 2.4 billion gallons of the domestic corn-based variety were
> produced last year in Grassley's home state of Iowa.
>
> Critics of the tariff argue the Brazilian variety is a cheaper and > cleaner
> alternative, particularly given a mandate requiring that 36 billion > gallons
> of renewable fuels be put in use by 2022. They also argue lifting the
> tariff will improve U.S. relations with its 12th-largest trading > partner,
> also Latin America's largest economy.
>
>
> http://www.nationaljournal.com/congressdai...090731_3441.php
>
> -----
> PEOPLE: PEOPLE
> By Mike Magner
>
>
> HISTORY IN THE MAKING. After 35 years as the Senate historian, > Richard A.
> Baker is retiring next month to devote more time to a book on the > history
> of Senate rules -- which he joked "should have about five readers" > -- and
> other works on the chamber's past. He'll leave his post with a high > honor:
> The Senate passed a resolution by unanimous consent Wednesday > designating
> Baker "Historian Emeritus of the United States Senate," effective > Sept. 1,
> "as a token of the appreciation of the Senate for his long and > faithful
> service."
>
> Baker, 69, has overseen the Senate Historical Office since it was
> established in 1975, a time, after the Watergate scandal, when there > was
> heightened interest in documenting congressional history, he said. > Baker is
> a native of Melrose, Mass., and a University of Massachusetts > graduate with
> a master's degree in history from Michigan State University, a > master's in
> library science from Columbia University and a doctorate in history > from
> the University of Maryland. He started his career as a professor at > Holy
> Apostles College before landing a job in 1968 at the Library of > Congress.
>
> The next year, the office of then-Senate Majority Leader Mike > Mansfield,
> D-Mont., asked the Library to send someone over to help establish a > Senate
> curator's office, and Baker got the nod. He spent the next eight > months in
> historian's heaven -- sorting through boxes of Senate documents. > Baker then
> became director of research for the newly formed National Journal in > 1970,
> a job he held until he learned about the new Senate historian's > position,
> and he high-tailed it to the Capitol. "As the Senate Historian, no one
> knows this place better than he does, and no one understands better > the
> lessons history has taught us in order to serve better today and > tomorrow
> in this institution," said Sen. Sherrod Brown, D-Ohio.
>
>
> http://www.nationaljournal.com/congressdai...090731_5331.php
>
> -----
> LOOKING IN: ACTUALLY, FAILURE IS AN OPTION
> By Jason Dick
>
>
> Here's a perhaps unpleasant fact about the healthcare debate: > Failure is
> an option, and might even be likely.
>
> This is not to say some type of healthcare legislation won't pass > and be
> heralded as a major success by its proponents. But that doesn't mean > it
> will succeed at what has become President Obama's top priority: a > wholesale
> reform that will cover the uninsured and hold down long-term costs.
>
> Such a failure might not be desirable, particularly to Obama and
> Democratic leaders in Congress. It might not be what's best for the
> country, depending on your political orientation. But it is an option.
>
> Look at the disagreements within the Democratic Party. In the House, > the
> Blue Dog Coalition has positioned itself as the de facto opposition > party
> to House Speaker Pelosi's troops.
>
> It was bound to happen. House Republicans have made themselves largely
> irrelevant by simply repeating that the Democrats want the > government to
> take over health care, turn the United States into a socialist state > and
> forbid anyone from ever getting an MRI again.
>
> So the Blue Dogs stepped into the breach and have insisted that
> legislation reflect what they claim is their constituency, which is,
> according to their Web site, the "mainstream values of the American
> public."
>
> Rep. Mike Ross, D-Ark., the Blue Dogs' healthcare point man, > represents a
> predominately rural southern Arkansas district. Energy and Commerce
> Chairman Henry Waxman represents Beverly Hills. One would hope the
> country's political compass would be somewhere between Rodeo Drive and
> Hope, Ark.
>
> But the divide between such Democrats, and their districts, is > fairly wide
> and begs the question as to whether any compromise between them will
> produce a meaningful departure from the status quo.
>
> But are enough people convinced the status quo stinks?
>
> Maybe in Waxman's Los Angeles or Pelosi's San Francisco. But what > does the
> mainstream America the Blue Dogs represent think? The answer is > complicated
> by the fact that the Blue Dog Coalition is far from monolithic in > what they
> represent. Blue Dogs like Reps. Adam Schiff, who represents suburban > L.A.,
> or Patrick Murphy, in suburban Philadelphia, are a long ways from both
> Waxman's Malibu and Ross' Mississippi Delta marshlands.
>
> One note to the Democrats involved in negotiations, Blue Dog or not.
> Regardless of what kind of health legislation does or does not come > out of
> the House, Republicans in the 2010 midterm elections will follow a > similar
> line of attack: All Democrats are commies.
>
> So Democrats might as well do what they think is really the best > thing for
> the country or their districts, then develop the strategy to defend > it --
> the criticism will be the same.
>
> Meanwhile, in the Senate, Finance Chairman Max Baucus and his band of
> panel negotiators -- the much ballyhooed last bipartisan hope -- keep
> pecking away at their own proposal, out of sight, out of mind.
>
> The six Finance Committee negotiators -- Baucus, from Montana, Finance
> ranking member Charles Grassley of Iowa and Sens. Kent Conrad, D-> N.D., Jeff
> Bingaman, D-N.M., Michael Enzi, R-Wyo., and Olympia Snowe, R-Maine --
> represent a cross-section of the United States that includes a lot > of rural
> stretches.
>
> One of their most significant decisions has been to settle on > requiring
> individuals to carry health insurance but not to require employers > to cover
> employees. Nothing like putting more bureaucratic onus on > individuals, but
> not corporations or other nonhuman entities -- in hard economic > times, eh?
>
> Another big decision was to dump a public insurance plan in favor of
> insurance co-ops. Co-ops seem to work well in lightly populated > states for
> a variety of purposes, such as providing utility services. But it's > at best
> unclear if such an approach would work in a place like New York > City, where
> the number of uninsured exceeds the total population of Montana.
>
> But with so much invested in the Finance negotiators' product, the > rest of
> the country might just find out if what's good for Montana is good > for the
> country.
>
> There are some parallels to the Blue Dogs here, as well. The six > Finance
> negotiators don't fully represent a wide swath of even rural > interests.
>
> There are fewer states as rural as Vermont, but its independent Sen.
> Bernie Sanders has come out strongly in favor of a public plan and > is not
> pleased that these six negotiators hold so much sway over the future > health
> care of 300 million people. Of course, Sanders actually is a > socialist, so
> maybe it's just easy to brush him off and his advocacy of a single-> payer
> system.
>
> So it is not hard to see, given the twists and turns health > legislation
> has taken in both chambers, that failure is an option. If all this
> political capital goes into passing legislation that works just fine > for
> Montana, southern Arkansas, Wyoming and North Dakota, but not L.A.,
> Chicago, New York, Houston, Miami and Baltimore, it would be > disingenuous
> for anyone to declare victory, no matter how hard fought the battle.
>
>
> http://www.nationaljournal.com/congressdai...090731_3348.php
>
> -----
> HILL BRIEFS: 'CLUNKERS' PROGRAM RUNS LOW, SET TO BE SUSPENDED TODAY
>

[Snuffysmith]

> CongressDaily AM for Monday, Aug. 3, 2009
>
> --------------------
> CONTENTS
>
> OUTLOOK: SENATE LOOKS TO CLEAR CLUNKERS, AG APPROPS AND SOTOMAYOR
> By Darren Goode with Dan Friedman, Humberto Sanchez, Megan Scully, > Bill
> Swindell, Anna Edney, Chris Strohm, Andrew Noyes, David Hatch and > George E.
> Condon Jr., contributing
>
>
> With the House long gone, the Senate will turn its attention this > week to
> passing one more spending bill, replenishing the popular Cash for > Clunkers
> program and confirming President Obama's pick for the Supreme Court, > Judge
> Sonia Sotomayor, all with the aim to leave town Friday until after > Labor
> Day.
>
> Senate Democratic leaders will try to follow the House and give > another $2
> billion to the depleted Cash for Clunkers program before leaving until
> September.
>
> The House Friday agreed to shift the funds from stimulus money > intended
> for renewable energy loan guarantees to the program, which > unexpectedly ran
> through its $1 billion in federal funds in less than a week. > Democratic
> leaders have promised to replenish the loan guarantees, which are not
> scheduled to be doled out until 2011.
>
> Rep. Betty Sutton, D-Ohio, said the White House is pushing the > Senate to
> take up the legislation, as are Michigan Democratic Sens. Debbie > Stabenow
> and Carl Levin. "Sen. Stabenow, Sen. Levin and others are also > working very
> hard to make sure that we continue the success" of the program, > Sutton said
> after the House vote.
>
> She said she hopes the Senate will act this week. "I think it is > necessary
> in order to keep things rolling without any interruptions," she > said. "I
> plan to talk to everybody who can help make this happen."
>
> A Senate Democratic leadership aide said Friday that the Senate will > "try
> to move to" the House-passed clunkers bill this week.
>
> Some Democrats might need convincing. Sen. Claire McCaskill, D-Mo.,
> initially said in a Tweet Friday that she would vote against any > extension
> of the program before clarifying that she would consider using > stimulus
> funds already appropriated and wants to study the House bill and see
> "details of how [the] program is working."
>
> A Senate GOP leadership aide predicted that Majority Leader Reid would
> have to file cloture on the bill due to opposition from some members.
>
> The aide also noted that efforts to move the bill quickly could be
> complicated if Sens. Susan Collins, R-Maine, or Dianne Feinstein, D-> Calif.,
> try to amend it to raise fuel efficiency standards.
>
> Any amendment would force the bill back to the House, which left town
> Friday. But the debate could echo last week's on extending aid to the
> federal highway program, when Democrats offered a token unanimous > consent
> request to include an 18-month extension of surface transportation > law.
>
> Once that failed, they allowed four GOP amendments they knew would > fail to
> be offered before simply approving a House bill. Reid might skip > that step
> and also just file for cloture on the measure and not allow > amendments.
>
> Senate Republicans are also pointing out that in that highway funding
> debate Thursday, Democrats attacked the idea of redirecting stimulus > money
> for that, as well as for housing and unemployment assistance.
>
> Feinstein and Collins -- the original sponsors of the initial Senate > Cash
> for Clunkers bill -- sent a letter Friday to Transportation Secretary
> LaHood following up on an initial July 10 request for data on the > vehicles
> already sold through the program.
>
> "We believe that Congress needs this information immediately in > order to
> evaluate the program's effectiveness in attaining its two goals of
> stimulating automobile sales and reducing oil consumption," the > senators
> wrote. "Without strong data on the effectiveness of the program, it > will be
> more difficult for Congress to evaluate and improve the current > program."
>
> Meanwhile, the Senate this week will look to wrap up work on the $23.7
> billion FY10 Agriculture Appropriations bill, which would provide > about
> $2.3 billion more than the amount provided in FY09.
>
> The Senate is scheduled to vote tonight to cut off debate on the bill,
> Reid said Friday after he filed for cloture on the bill.
>
> Leaders of the Senate Agriculture Appropriations Subcommittee have > said
> they hope to finish the bill as soon as tonight to free up the > Senate to
> consider Sotomayor's nomination.
>
> The bill provides a total of $124 billion when mandatory spending is
> factored in, including $61.4 billion in mandatory spending for the
> Supplemental Nutrition Assistance Program, also known as food > stamps. The
> bill also provides $16.8 billion in mandatory spending for the school
> breakfast and lunch program and $7.5 billion in discretionary > spending for
> the special supplemental nutrition program for women, infants and > children,
> also known as WIC. The bill increases WIC spending by nearly $700 > million
> above the level in the FY09 Agriculture Appropriations bill.
>
> The bill includes $2.4 billion for the FDA, $299 million above FY09 > and
> the Obama administration's request. It also includes $1.1 billion > for the
> USDA Food Safety and Inspection Service, up $47 million over FY09 > levels.
>
> In early July, the House approved a $22.9 billion FY10 Agriculture
> spending measure, which is $2.3 billion over the FY09 funding level. > The
> House bill provides a total of $123.8 billion, including $61.4 > billion for
> food stamps, and $7.5 billion for WIC.
>
> The Senate meets today at 2 p.m. for morning business and afterward
> resumes consideration of the Agriculture Appropriations bill.
>
> The House is not in session.
>
> DEFENSE
>
> The Senate this week is expected to vote to confirm Rep. John McHugh,
> R-N.Y., to be secretary of the Army.
>
> During McHugh's confirmation hearing last week, Levin, the Senate > Armed
> Services chairman, and ranking member John McCain lauded McHugh's
> commitment to service members and their families during his 16 years > on the
> House Armed Services Committee.
>
> The two leaders said they intended to have McHugh confirmed before the
> Senate leaves for recess.
>
> McHugh had served as the top Republican on the House Armed Services
> Committee, but he resigned his seat on the panel in June after Obama > tapped
> him for the Army post. He drew mostly praise from the Senate panel.
>
> McCain grilled the nominee over his acceptance of $160,000 in campaign
> contributions from people associated with PMA Group, a now-defunct > defense
> lobbying firm that is under federal investigation for possible > violations
> of campaign finance law.
>
> McHugh stressed he never sought an earmark for a PMA client in > return for
> a campaign contribution.
>
> "I've tried to do the best job I could to provide projects that > benefited
> my district and equally benefited the military," McHugh said.
>
> Also this week, the staffs of the House and Senate Armed Services
> committees will meet to work out differences in the chambers' > versions of
> the FY10 defense authorization bill. Lawmakers from both committees > met
> informally last week to begin the negotiations, a move that > essentially
> will allow staff to work on the bill through the monthlong recess.
>
> FINANCE
>
> The Senate Banking Committee will hold a Tuesday hearing on the Obama
> administration's plan to streamline banking regulation, specifically > its
> measure to consolidate the Office of Thrift Supervision and the > Office of
> the Comptroller of the Currency into a new National Banking > Supervisor.
>
> Under the plan, the Federal Reserve and FDIC would retain their roles
> overseeing state-chartered banks and the National Credit Union
> Administration would not be significantly affected. FDIC Chairwoman > Sheila
> Bair and Comptroller of the Currency John Dugan are both slated to > testify.
>
> Lawmakers have been receptive to consolidating OTS and OCC, > especially as
> critics have faulted OTS for being the regulator on duty during the
> failures of Washington Mutual, Countrywide Financial, IndyMac and > entities
> operated by American International Group. House Financial Services > Chairman
> Barney Frank has said he would not abolish the thrift charter, as the
> Treasury Department has suggested.
>
> On Wednesday, the Banking Committee will conduct a hearing on > proposals to
> further regulate credit-rating agencies. The industry has been > called one
> of the culprits for the housing downfall when they gave favorable > grades to
> mortgage-backed securities that were based on faulty loans.
>
> Lawmakers seem intent on going farther than the Treasury > Department's plan
> to provide more oversight by allowing the SEC to have the authority to
> obtain greater public disclosure of firms' methodologies and for > better
> differentiation between structured credit and other products. Senate
> Banking Securities Subcommittee Chairman Jack Reed, D-R.I., has > sponsored a
> bill to give the SEC more authority over the industry and allow > investors
> to sue a firm if it "knowingly or recklessly" fails to review key
> information -- a provision the industry opposes.
>
> HEALTH
>
> The six Senate Finance Committee members negotiating a bipartisan
> healthcare overhaul bill will meet throughout the week.
>
> The panel will not hold a markup on any overhaul measure as Obama and
> Democratic leadership had hoped. The delay pushed Democrats to embrace
> passage by the end of the year, rather than October as Obama > originally
> sought.
>
> Senate Finance Chairman Max Baucus keeps reporting that the group is
> making progress, but no one has seen a proposal on paper. One > provision
> that appears close to a final decision is an insurance co-op in lieu > of a
> public option. The move, meant to appease GOP negotiators, alarms > liberals
> who insist a public option is necessary to improve insurance company
> behavior.
>
> Sen. John (Jay) Rockefeller, D-W.Va., a strong public-option > supporter, is
> awaiting information this week from GAO and the National Cooperative
> Business Association about co-ops and whether they will prove an > adequate
> alternative to private insurance companies.
>
> HOMELAND SECURITY
>
> The Senate Homeland Security and Governmental Affairs Committee > plans a
> series of hearings this week to examine federal contracting > practices and
> disaster preparedness efforts.
>
> The panel's Federal Financial Management Subcommittee has scheduled a
> hearing today on best practices to eliminate wasteful bonuses for > federal
> contractors, featuring testimony from OMB and GAO officials.
>
> On Tuesday, the panel's Disaster Recovery Subcommittee has called a
> hearing to focus on evacuation planning and mental health support for
> children during disasters. FEMA Administrator W. Craig Fugate will > testify.
>
> Also on Tuesday, the Secret Service will host a cybersecurity > conference,
> featuring keynote addresses by Homeland Security Secretary > Napolitano and
> Greg Schaffer, the department's assistant secretary for > cybersecurity and
> communications. The event, held in downtown Washington, comes as > lawmakers
> are considering cybersecurity legislation and competing approaches > to best
> organize federal security efforts.
>
> JUDICIARY
>
> The battle over legislation to end a royalty exemption extended to > AM and
> FM radio moves to the Senate on Tuesday with a Judiciary Committee > hearing.
>
> Multiple Grammy Award nominee Sheila E. will testify on behalf of the
> MusicFirst Coalition, which backs the bills Senate Judiciary Chairman
> Patrick Leahy and House Judiciary Chairman John Conyers introduced in
> February. Conyers' committee approved his version of the measure in > May.
>
> Commonwealth Broadcasting Corp. CEO Steve Newberry will make the > National
> Association of Broadcasters' case against the legislation, which > they argue
> could imperil already cash-strapped stations.
>
> TELECOMMUNICATIONS
>
> FCC Chairman Julius Genachowski will discuss the related topics of
> telemedicine and health information technology during an appearance > today
> with Rep. Anna Eshoo, D-Calif., at Stanford University in her > district,
> which encompasses Silicon Valley. The event is part of a two-day > swing by
> Genachowski through the state to promote increased access to > broadband.
>
> Newly confirmed Democratic FCC regulator Mignon Clyburn will be > sworn in
> today at a courthouse in Columbia, S.C., her home state. The newest > GOP
> member, Meredith Baker, was sworn in Friday at the agency.
>
> The Senate Commerce Committee Wednesday will mark up two relatively
> non-controversial telecom-related bills. The "Truth in Caller ID > Act," by
> Sen. Bill Nelson, D-Fla., would prohibit the transmission of > misleading or
> inaccurate caller identification information, while a measure > offered by
> Senate Commerce ranking member Kay Bailey Hutchison would let > prisons jam
> wireless signals to prevent inmates from using smuggled cellphones.
>
> On Thursday, the FCC begins the first of 22 public workshops > designed to
> aid its creation of a national broadband plan to be presented to > Congress
> in February.
>
> WHITE HOUSE
>
> Obama heads to George Mason University in Fairfax, Va., today to talk
> about post-Sept. 11 changes to the GI Bill. He is also scheduled to > meet at
> the White House with the emir of Kuwait, Sabah al-Ahmad al-Jabir al-> Sabah,
> and with 2008 NASCAR champion Jimmie Johnson.
>
> He'll be in Elkhart, Ind., Wednesday to talk about health care and the
> economy and will attend a fundraiser Thursday for Creigh Deeds, the
> Democratic candidate for governor of Virginia.
>
>
> http://www.nationaljournal.com/congressdai...090803_6367.php
>
> -----
> APPROPRIATIONS: SHORT CALENDAR LEFT FOR FY10 PROCESS
> By Humberto Sanchez, with Billy House contributing
>
>
> As Congress prepares to leave for August recess, the House, which
> adjourned last week, has completed work on all 12 appropriations > bills, and
> the Senate is expected to be a third of the way done when it departs
> Friday.
>
> But despite the progress, appropriators will be hard-pressed to finish
> their work before the end of the fiscal year, with less than a month > left
> for the Senate to pass the remaining eight bills and resolve > differences
> with the House on all 12.
>
> While appropriators are intent on trying to finish by the Sept. 30 > sunset
> of the fiscal year, some recently conceded that a short-term > extension of
> funding might be needed.
>
> "It could happen, but the goal is still to try to get them done" by > the
> end of September, said Senate Legislative Branch Appropriations
> Subcommittee Chairman Ben Nelson, D-Neb. "This is the point in time > when
> everyone starts wondering whether it gets done. I don't think it's > time to
> panic yet."
>
> Senate Transportation-HUD Appropriations Subcommittee Chairwoman Patty
> Murray, D-Wash., said meeting the Sept. 30 deadline "is going to be > really
> hard to do, as it always is, with the time it takes to move a bill > to the
> floor ... but I think we are making good progress and we are going > to keep
> pushing."
>
> House Labor-HHS Appropriations Subcommittee ranking member Todd > Tiahrt,
> R-Kan., thinks a short-term continuing resolution appears increasingly
> likely. "I think we probably will have a CR; I would give it a 60 > percent
> chance at this point," he said.
>
> Senate Energy and Water Appropriations Subcommittee Chairman Byron > Dorgan,
> D-N.D., said that even if a short-term CR is needed, it would be a > small
> price to pay to get the bills done individually.
>
> "I remain hopeful that we can get the bills done and avoid a CR, but > even
> if we had to do a short-term CR, I think we would like to get all > the bills
> done, get them done routinely, get them signed by the president, and > get
> back on track the way Congress is supposed to work," Dorgan said.
>
> Senate Appropriations Chairman Daniel Inouye said he is not thinking > about
> a CR and is still focused on getting the bills done on time.
>
> Democratic appropriations staffers point to one factor that made > this year
> more difficult than usual: The fact that -- because this is President
> Obama's first year in office -- they received his budget request > later than
> they otherwise would, which shortened the time to do their jobs. They
> expect that next year they will be better positioned to finish the > FY11
> bills on time.
>
> Nevertheless, Democratic leaders and appropriators have been adamant > about
> finishing the FY10 bill individually and avoiding, at the 11th hour, > having
> to wrap the bills into an omnibus, as was done for the FY09 cycle.
>
> A standoff between congressional Democrats and former President > George W.
> Bush over spending levels resulted in Congress putting off action on > all
> but three of the FY09 appropriations bills until after November's > election.
> Once Obama took office, the remaining nine FY09 bills were packaged > and
> enacted in March in a $410 billion omnibus.
>
> "There has been an absolute commitment to get our appropriation bills
> done," Senate Majority Leader Reid said last week during Senate
> consideration of the $34.3 billion FY10 Energy and Water > Appropriations
> bill.
>
> "We are behind schedule even now," Reid continued. "We don't want > another
> big omnibus bill. We want to do these appropriations bill > [individually]
> ... and we are going to be able to say when we leave here this work > period
> that we at least got a third of them done before the August break. > We are
> going to come back in September and continue to work through these."
>
> House Majority Leader Hoyer said Friday that final passage of all 12
> spending bills for FY10 might not be possible before the new fiscal > year --
> and that a short-term CR may be needed. Hoyer said his understanding > is
> that the Senate is "working very hard on getting four or five or six > of the
> remaining bills to the floor in September." But he said, "they may > not get
> all eight remaining bills. ... To the extent that they do, we'll go to
> conference on those and pass as many bills as we can pass prior to > Sept.
> 30, when the fiscal year ends." If that can't happen, he said, "We > may need
> a very short-term CR for those remaining bills."
>
> Lawmakers typically dislike omnibus packages because they are more
> difficult to scrutinize and tend to be rushed through to avoid a > government
> shutdown or a long-term CR, which tends to flat-fund most government
> agencies.
>
> The Senate last week completed action on the Energy and Water bill, > and is
> expected to finish work on the $23.7 billion FY10 Agriculture
> Appropriations bill by the end of the week. Those two, along with > passage
> of the $42.9 billion Homeland Security and $3.1 billion Legislative > Branch
> spending measures earlier in the year, would bring the total number > of FY10
> spending bills to be completed by the Senate to four.
>
> One of the main issues that threatens to slow the process in the > Senate is
> the dearth of floor time, as the Senate is poised to consider > healthcare
> legislation and possibly legislation to limit greenhouse gas > emissions.
>
> "The biggest complication, of course, is the healthcare debate, > which is
> going to be a very significant and extensive debate in September > when we
> get back," said one veteran appropriator, Sen. Mary Landrieu, D-La. > Getting
> the bills done next month "is really a function of floor time," she > said.
>
> Another factor is whether Senate Republicans will choose to slow the
> process as they seek to criticize Democratic spending priorities.
>
> "If the Republicans stall everything out, then we are not likely [to
> finish by Sept. 30,] but if they do, sure we could," said Senate
> State-Foreign Operations Appropriations Subcommittee Chairman Patrick
> Leahy, D-Vt.
>
> Senate Legislative Branch Appropriations Subcommittee ranking member > Lisa
> Murkowski, R-Alaska, said she expects Republicans to be relatively
> cooperative since they, too, want to avoid a long-term CR or an > omnibus.
>
> "I am committed to working with my colleagues to make sure that > happens,"
> Murkowski said.
>
> Sen. Tom Coburn, R-Okla., who frequently challenges what he considers
> wasteful spending, also said he wants Congress to finish the bills
> individually.
>
> "There is no effort to slow" the process down, Coburn said. "There > is an
> effort to bring sunlight to it ... and transparency and to offer > amendments
> so the American people can see what a lousy job they are doing."
>
> In the House, Democratic appropriators are proud to have passed all > 12 of
> the bills, but Republicans say it came at a price -- shutting them > out of
> the process.
>
> To get the bills done by the August recess, House Democratic leaders
> sought time agreements for debate on the bills from House > Republicans, but
> no agreement was ever reached.
>
> Democrats ultimately decided to limit the number of amendments that > could
> be offered by setting a deadline for when they must be filed with > the Rules
> Committee, a move Republicans said was not typically done and would > squelch
> their rights to offer amendments and change the bills.
>
> House Appropriations Chairman David Obey argued that structured > rules were
> used by Republicans when they were in the majority and therefore was
> nothing new.
>
> In protest, Republicans in mid-June forced a record 53 roll-call > votes in
> one day in connection with the $64.4 billion FY10 Commerce-Justice-> Science
> Appropriations bill, the first spending bill to come to the House > floor,
> which forced the delay and cancellation of House committee hearings > and
> markups and other business before the bill was approved.
>
> "We've done our job," said House Interior-Environment Appropriations
> Subcommittee Chairman Norman Dicks, D-Wash. "It's been rugged and
> difficult. I wish it could have been more open, but that takes > cooperation
> on both sides and at the start."
>
> House Agriculture Appropriations Subcommittee Chairwoman Rosa DeLauro,
> D-Conn., said "I think it went as good as it could have ... The > structured
> rule has worked."
>
> Some House Appropriations cardinals had contemplated requesting no > limits
> on amendments for their bills, despite the tight schedule set by > Democratic
> leaders, but they had a change of heart after the C-J-S bill fracas.
>
> "The disappointment, of course, is that we have had to be so limited > on
> the floor in the normal debate procedure, but I think the Republicans
> pretty much made their own bed on that. They showed that they had
> disruptive intent. And when there was a pause and, a member like > myself,
> was ready to ask for a more open rule with respect to our bill, then > they
> pulled off that stunt ... forcing 53 roll call votes," said House > Homeland
> Security Appropriations Subcommittee Chairman David Price, D-N.C.
>
> Republicans have warned that Democrats have set a dangerous > precedent that
> will ultimately come back to haunt them.
>
> "To me, they have damaged this process more than they will ever know,
> because some day this will be used as a precedent," said House
> Interior-Environment Appropriations Subcommittee ranking member Mike
> Simpson, R-Idaho.
>
> House Republicans criticized Democrats on the issue in every debate > on the
> 12 bills and the acrimony did not abate for the last spending bill, > the
> $636.3 billion FY10 Defense Appropriations measure, which the House
> approved last week. Over 600 amendments were filed to the bill -- a > record
> according to the Rules Committee -- and more than 550 of those came > from
> Rep. Jeff Flake, R-Ariz., an opponent of member-directed earmarks.
>
> "I felt I had to do it, because I wanted the opportunity to offer the
> amendments I wanted to offer and I knew they would only give me a > few,"
> Flake said.
>
> On the Defense bill, the chamber voted on eight Flake amendments, > seven
> individual ones and one en bloc amendment. All of them failed.
>
>
> http://www.nationaljournal.com/congressdai...090803_5301.php
>
> -----
> HOT TICKET: HOT TICKET
> By Jason Mann
>
>
> BLIND ITEM. Tonight, Senate Environment and Public Works Chairwoman
> Barbara Boxer sets aside Senate business to discuss her new book, > "Blind
> Trust." No, it's not a detailed account of the subprime mortgage > crisis,
> but a novel about a second-term Democratic senator who struggles > against an
> aggressive vice president as she prepares to chair hearings on > national
> security issues. One can only wonder where Boxer got her inspiration > for
> such an outlandish plot. The lawmaker will be at Politics and Prose > at 7
> p.m.
>
> MATCH POINT. August is finally here and that means three things:
> unbearable humidity, congressional recess, hopefully, and the Legg > Mason
> Tennis Classic. The tournament began last weekend but continues this > week
> with many festivities, including "Alumni Night at the Net" Tuesday. > Throw
> on your college polo shirt and head over to the William H.G. > FitzGerald
> Tennis Center in Rock Creek Park for food and drinks while you meet a
> professional tennis player and watch one of the tournament's > matches. The
> event, being presented by MIX 107.3, begins at 6 p.m. and costs $45. > To buy
> tickets, call (202) 721-9500.
>
> NOT WHAT YOU KNOW... As the city winds down with the slower pace of > August
> and people embark on vacations, here's a chance for one last grip > and grin.
> The Washington Network Group is hosting its summer networking soiree
> Thursday. Unlike other cocktail parties, this one does not have an > agenda.
> The entire point is to mingle and meet as many people as possible. > There
> isn't a silent auction or person being honored. Just lots of people > doing
> what Washingtonians do best, networking. Head over to Bar Louie at > Gallery
> Place at 701 7th Street NW, at 6 p.m. Tickets cost $30 and can be > bought
> online at www.washingtonnetworkgroup.com. There is a $10 surcharge for
> unregistered walk-ins paying at the door, so just buy your tickets > online
> ahead of time.
>
> PURPLE HAZE. When then-Sen. Hillary Rodham Clinton and Sen. Charles
> Schumer, both Democrats from New York, tried to earmark funds in an
> appropriations bill for a Woodstock museum a few years back, the > amendment
> was ridiculed and voted down. That doesn't mean only New Yorkers > care about
> the historic music festival that brought singers Jimi Hendrix, Janis > Joplin
> and The Band together on the same stage. This Sunday, the Newseum is
> hosting a discussion of Woodstock, which celebrates its 40th > anniversary
> this month. Michael Lang, one of the concert's organizers, will > provide a
> first-hand account of the music and mayhem while discussing his book > "The
> Road to Woodstock." The event is free and starts at 3 p.m.
>
>
> http://www.nationaljournal.com/congressdai...090803_5624.php
>
> -----
> PEOPLE: PEOPLE
> By Mike Magner
>
>
> NEEDS BASED. As powerful voices for and against healthcare reform have
> risen steadily in recent weeks, soft-spoken Deborah Weinstein has > tried to
> make sure the cries for help from the poor in America were not > drowned out.
>
> "The situation is very dire," said the executive director of the > Coalition
> on Human Needs, made up of more than 110 groups as diverse as the > American
> Association of University Women, Catholic Charities USA, the National
> Coalition for the Homeless, the National Council of La Raza and the > Service
> Employees International Union. "There have been huge increases in > demands
> for social services," which translates into a growing need for > federal aid,
> Weinstein said.
>
> Weinstein was honored by the coalition last week as its Human Needs > Hero,
> an annual award given to a fierce fighter for low-income and > vulnerable
> populations.
>
> "The outreach and work of the coalition under Ms. Weinstein's strong
> leadership has played an important role in educating grassroots > advocates
> and helping them convey their beliefs to policymakers on the Hill," > said
> Sen. John (Jay) Rockefeller, D-W.Va., whose state has one of the > nation's
> highest poverty rates.
>
> A New York City native with a master's degree in social work from San
> Diego State University, Weinstein started her career in 1983 as > executive
> director of the Massachusetts Human Services Coalition, a nonprofit
> advocacy group based in Boston. A decade later, she moved to > Washington to
> become director of the family income division at the Children's > Defense
> Fund, and she took over the Coalition on Human Needs in 2003.
>
> The coalition's first priority this year was ensuring that part of the
> $787 billion economic stimulus package went to those with the greatest
> needs, as recommended by many economists, Weinstein said. Now the > challenge
> will be to keep assistance programs going when the stimulus runs out,
> especially if unemployment keeps rising, she said.
>
> On health care, the coalition and its members are focused on finding > ways
> to pay for changes in the delivery system, so there are adequate > revenues
> to sustain reform efforts in the long term, she said.
>
> To drive home the point at her award ceremony last week, Weinstein > drew on
> one of her hobbies and turned a blue balloon into a dog, a symbol of > the
> Blue Dog Coalition, which has been aggressively reshaping the > healthcare
> bill. She gave the balloon to representatives from Families USA and > told
> them, "Give it a good talking to."
>
>
> http://www.nationaljournal.com/congressdai...090803_1464.php
>
> -----
> CHINA WATCH: BEWARE THE BUYER?
> By Art Pine
>
>
> Read the papers these days, and you can't help noticing that China > is on a
> global buying spree.
>
> Over the past few months, Chinese firms have been investing billions
> abroad in everything from oil companies to hedge funds, in deals often
> sweetened by loans or grants from the Chinese government. The money > has
> gone worldwide -- to Africa, Asia, Latin America and Australia. > Soon, China
> might even develop oil fields in Iraq.
>
> The investment push was predictable. Thanks to its record account > surplus,
> China is flush with $2.1 trillion in foreign exchange reserves, and > the
> global recession has depressed prices of some acquisitions. With > worldwide
> export markets in a slump, China has been scouting even harder for
> investments abroad.
>
> Two weeks ago, Chinese Premier Wen Jiabao said China will begin > using its
> foreign exchange reserves to speed up overseas expansion and > acquisitions,
> particularly by state-owned Chinese companies such as Petrochina and
> Chinalco. The two-year-old China Investment Corporation already has > been
> doing that, albeit on a smaller scale.
>
> Beijing's own figures show that outbound investment flows from China
> soared to $40.7 billion last year. Daniel Rosen, a China-watcher at > the
> Peterson Institute for International Economics, estimates the > cumulative
> value of China's cross-border investments over the years ballooned > to $170
> billion at the end of 2008.
>
> The buying binge has set off some fears China's competition is a > threat to
> U.S. prosperity -- and security. Much of China's overseas investment > has
> been focused on securing access to critical materials such as oil, > gas,
> iron ore and other commodities that China will need as it grows.
>
> In one of the latest such transactions to emerge, China has promised
> Petrobras, the Brazilian oil giant, $10 billion in loans in return for
> guaranteeing Sinopec, a state-owned Chinese oil company, up to 200,000
> barrels of oil a day for the next 10 years. And Brazil has indicated > it is
> open to additional deals.
>
> Often, with investment comes political influence. China's business > deals
> abroad have bought it close ties -- and more say -- in a spate of
> countries. Beijing's approach to outbound foreign investment -- > delivering
> on its promises quickly, without U.S.-style lectures on human rights > --
> especially appeals to authoritarian governments.
>
> Early this summer, Chinese oil companies began expressing interest in
> bidding on rights to develop oil fields in Iraq -- a country that > had been
> considered solidly in the U.S. sphere of oil suppliers. Separately, > Sinopec
> also has offered to buy a Swiss-Canadian firm with Iraq operations.
>
> Finally, there's a fear China might be turning to investment to > reduce its
> reliance on the U.S. dollar, a move that theoretically could send the
> greenback's value down. Top Chinese officials have been asserting for
> months they'd like to get away from the U.S. currency, which they > contend
> is riskier than it was before the slump.
>
> Economists, however, seem unworried about the Chinese push. Rosen > notes
> that much of the oil and mineral exploration in which China is > investing
> involves digging for new supplies that otherwise wouldn't even be on > the
> market. As a result, they'll largely be adding to the global supply, > not
> hoarding existing resources, he says.
>
> As for any threat against the dollar, Rosen adds, letting China's
> state-owned corporations use some of its foreign exchange reserves to
> invest overseas will, if anything, move those dollars abroad, making > it
> more difficult for China to keep the value of its own currency, the > yuan,
> from rising.
>
> That still leaves the political impact of China's new investment > binge,
> particularly here in the United States, where many lawmakers -- and > voters
> -- are wary of Chinese competition, especially when it's bolstered by
> government subsidies. And history shows the issue can quickly become a
> volatile one.
>
> Although U.S. policy under both the Bush and Obama administrations has
> been to encourage China to become more involved in the global > economy, in
> 2004 Congress blocked a bid by the China National Offshore Oil > Corporation
> to take over Unocal, even though the U.S. company's oil holdings were
> mostly in the Far East.
>
> What the United States can do about China's intensified buying spree > is
> another matter. Except for subsidizing their state-owned firms, the > Chinese
> aren't violating existing international agreements on overseas > investment.
> Indeed, the United States has followed a similar course for years, > though
> it's been more subtle in tying its deals to grants or military aid.
>
> "That, of course, is China's right," says Brad Setser, a China > expert at
> the Council on Foreign Relations. "China's government presumably will
> deploy its assets to pursue strategic as well as its commercial > goals," he
> says. But he asserts if investments are made using foreign exchange
> reserves, "they're no longer ordinary business deals."
>
> While China's investment surge wasn't a headline item in the first > round
> of high-level U.S.-Chinese strategy talks last week, U.S. and Chinese
> officials have quietly begun laying the groundwork for a bilateral
> investment treaty to set rules to smooth procedural snags in > investment.
>
> That isn't likely to slow China's buy-up of foreign companies and
> resources, but it's a step.
>
>
> http://www.nationaljournal.com/congressdai...090803_8871.php
>
> -----
> BEYOND THE BELTWAY: NEW JERSEY POISED TO ENACT MEDICAL ERROR > DISCLOSURE
> BILL
> By Chuck Jordan
>
>
> New Jersey is poised to become one of the few states that will > publicly
> disclose preventable medical errors on a hospital-by-hospital basis.
>
> The Legislature passed the measure in June and Democratic Gov. Jon > Corzine
> is expected to sign it.
>
> The state's Department of Health and Senior Services would be > required to
> report information on 14 pre-established patient safety indicators, > such as
> a foreign body left after a medical procedure or surgery performed > on the
> wrong side.
>
> Under current law, hospitals voluntarily collect information about > errors
> and report them to the state. Those figures are disclosed in the > aggregate
> but they do not show specific hospital events.
>
> "The best thing New Jersey can do to improve the safety of health > care in
> our state is to allow free-market principles and business > competition to
> drive patient safety improvements," said Democratic Sen. Joseph > Vitale, the
> primary sponsor of the bill. "Healthcare consumers deserve to know > how safe
> hospitals and other healthcare facilities are, and they deserve to > be able
> to compare patient safety records at different facilities."
>
> Along with the hospital disclosure, the bill would prohibit > hospitals from
> charging a patient or insurance company for certain errors.
>
> "It adds insult to injury to force patients to pay for the medical
> mistakes of their doctors and other healthcare professionals, > particularly
> when those mistakes are preventable and should not have occurred in > the
> first place," said Teaneck Democratic state Sen. Loretta Weinberg, > another
> primary sponsor.
>
> Advocates see the measure as a step toward improving the quality of > health
> care and claim greater transparency will lower costs. AARP New > Jersey has
> advocated for the disclosure for the past two-and-a-half years, > according
> to Patricia Kelmar, the group's associate state director of > advocacy. She
> said stakeholders and lawmakers began working to craft a measure > last year.
>
> Members of the healthcare industry expressed unease about the > legislation
> early in the process, but lifted objections as some changes were > made. "We
> worked with the sponsors to achieve a bill that hospitals could live > with
> and that still answered the public's interest in more information," > said
> Kerry McKean Kelly, vice president of communications for the New > Jersey
> Hospital Association.
>
> According to Consumers Union's Safepatientproject.org, 25 states and > the
> District of Columbia have some form of medical error reporting. Four > of
> those states -- Indiana, Minnesota, Massachusetts and New York -- > publicly
> report information about individual facilities.
>
>
> http://www.nationaljournal.com/congressdai...090803_3203.php
>
> -----
> BEYOND THE BELTWAY: STATES TARGET CREDIT CHECKS BY EMPLOYERS
> By Chuck Jordan
>
>
> As some employers are doing more expansive screening of job > applicants,
> several states are looking at limiting the ability of hiring > authorities to
> use applicants' credit history.
>
> In Wisconsin, Democratic state Rep. Kim Hixson plans to introduce a
> measure this month to prohibit employers' use of applicants' credit > scores
> in the hiring process.
>
> Hixson said his legislation would make exceptions for certain jobs, > such
> as those in the financial sector.
>
> Proponents say the use of credit scores to weed out job candidates > hurts
> those who most need the work, especially in a challenging economy. > Also,
> many argue poor credit scores do not indicate the type of job an > employee
> can do. Opponents say barring the use of credit checks would remove > a tool
> employers can use to find quality candidates.
>
> Several other states have introduced similar legislation this year. A
> measure in California passed the Assembly and awaits action in the > Senate.
> Measures were also introduced in Michigan and Ohio, but no action > has been
> taken on them.
>
> Meanwhile, Rep. Steve Cohen, D-Tenn., recently unveiled legislation > on the
> issue.
>
> The measure would bar the use of credit checks by employers unless > the job
> involves national security clearance, FDIC clearance or significant
> financial responsibility.
>
>
> http://www.nationaljournal.com/congressdai...090803_5332.php
>
> -----
> BEYOND THE BELTWAY: INITIATIVE AIMS TO REPEAL MASSACHUSETTS ALCOHOL > TAX
>
> A Massachusetts initiative that would again exempt alcohol from the > state
> sales tax might be heading to the ballot in 2010, the Associated Press
> reported.
>
> The budget signed by Democratic Gov. Deval Patrick ended the sales tax
> exemption for beer, wine and alcohol sold in stores. The budget also
> increased the state sales tax from 5 percent to 6.25 percent.
>
> Patrick said lifting the exemption was needed to help balance the > budget.
> Store owners say the new tax will hurt sales.
>
> Last week, the proposed question was filed with the attorney general's
> office.
>
> Massachusetts Package Stores Association Executive Director Frank
> Anzalotti was the first signature on the petition and is listed as the
> contact.
>
> Supporters would need to collect tens of thousands of signatures of
> registered voters.
>
> The new sales tax took effect over the weekend.
>
>
> http://www.nationaljournal.com/congressdai...090803_7053.php
>
> -----
> DRAWING BOARD: DRAWING BOARD
> By Mark Armstrong
>
>
>
> http://www.nationaljournal.com/congressdai...090803_5125.php

[Snuffysmith]

>
>
> CongressDaily PM for Monday, Aug. 3, 2009
>
> --------------------
> CONTENTS
>
> FINANCE: DURBIN WANTS TO TRY `CRAM-DOWN' AGAIN
> By Bill Swindell
>
>
> Senate Majority Whip Durbin today repeated a pledge to push for a
> "cram-down" measure allowing bankruptcy judges to modify home > mortgages,
> even though his last effort fell 15 votes short in April on a key > test.
>
> Durbin said his bill, which is bitterly opposed by the banking > industry,
> is necessary because the economy remains gripped by the foreclosure > crisis
> despite a bounce in new home sales last month.
>
> "If necessary, I'm ready to take it on again," Durbin said in > remarks at
> the Center for American Progress. He added he might include new > sweeteners
> such as giving homeowners extra time to stay in their homes by > letting them
> pay fair-market value during foreclosure proceedings.
>
> In addition, Durbin said, there should be federal funds for cities > that
> implement mandatory mediation proceedings for foreclosures. But > banks that
> do not meet an Obama administration goal to have started 500,000 loan
> modifications by Nov. 1 should face penalties.
>
> One of those penalties could be a bankruptcy option, in which judges > would
> have the ability to lower a loan to its fair-market value. "That is, > at the
> end of the rope, a possibility," Durbin said. "I think it is an > incentive
> for action."
>
> In April, the Senate defeated Durbin's measure, 51-45, after the > House had
> passed a narrower version. Durbin said he has not conducted a new vote
> count, but he indicated that some of his colleagues might reconsider > their
> votes given that an estimated 10,000 homes a day are entering into
> foreclosure.
>
> "Many of them who were adamantly opposed to me on the first round, > by the
> second round came to me and said, 'We got to take a look at this,'" > Durbin
> said.
>
> Durbin singled out the Independent Community Bankers of America as a > key
> source of opposition that stymied his bill this year. He said he > initially
> thought smaller banks might be more amenable to a deal than their > larger
> brethren, which dominated the subprime sector that triggered the
> foreclosure crisis. But they did not want to be part of the deal, he
> lamented.
>
> "The so-called Independent Community Bankers Association, when they > were
> offered a carve-out so that it didn't apply to them, said they would > still
> oppose it. I think they ought to strike the name 'independent' from > their
> name," Durbin said.
>
> Durbin added he was disappointed that credit union lobbying groups > did not
> endorse his bill after all the efforts he has made in past years to > boost
> the industry. "When it came to this, they didn't want to work with > us and
> stay the course to a satisfactory conclusion," Durbin said.
>
>
> http://www.nationaljournal.com/congressdai...090803_4517.php
>
> -----
> TELECOMMUNICATIONS: NET NEUTRALITY BILL RETURNS WITHOUT BOUCHER
> By David Hatch
>
>
> House Energy and Commerce Communications Subcommittee Chairman Rick
> Boucher, D-Va., is conspicuously absent from the list of co-sponsors > of new
> legislation designed to ensure that major telecommunications and cable
> providers never block or degrade content traversing their high-speed
> Internet networks.
>
> The measure was introduced by Rep. Edward Markey, D-Mass., a senior > Energy
> and Commerce Committee member who served as subcommittee chairman last
> year, and Communications Subcommittee member Anna Eshoo, D-Calif., > just
> before the House began its summer recess Friday evening.
>
> Boucher's absence from the bill appears to reinforce a policy shift, > given
> that just three years ago he co-sponsored a similar measure with > Markey,
> Eshoo and Rep. Jay Inslee, D-Wash., aimed at preserving "network
> neutrality" on the Internet. Despite repeated attempts, they failed > to add
> it to major House telecom legislation, which eventually died.
>
> This time around, a congressional source said Markey reached out to
> Boucher and Energy and Commerce Chairman Henry Waxman, who didn't > sign onto
> the bill but conveyed his support for it. Aides to Markey and Waxman > were
> not immediately available for comment today.
>
> But Boucher made clear after taking over the subcommittee this year he
> would not join a renewed legislative effort on net neutrality, > saying he
> supports a negotiated remedy involving industry stakeholders and > public
> watchdogs.
>
> "Negotiations are ongoing," Boucher's office said in a written > response to
> questions today, adding that the Virginia lawmaker did not > "encourage or
> discourage" Markey from pursuing the bill.
>
> Art Brodsky, spokesman for Public Knowledge, an advocacy group at the
> forefront of the push for tougher net neutrality safeguards, was > unaware of
> recent negotiations. Another source said discussions may be occurring
> between Boucher and broadband providers.
>
> There has been speculation that Boucher pulled back from his previous
> stance on the need for legislation to avoid alienating major telecom
> companies as he seeks to craft bills affecting the wireless industry > and a
> federal fund subsidizing telecom service in low-income and rural > areas.
>
> The lawmaker has insisted during previous interviews that his latest
> position is not a retreat, asserting that onerous threats by > carriers have
> abated and the FCC is adequately handling the situation.
>
> Under the leadership of its new chairman, Julius Genachowski, the > FCC is
> expected to strengthen its guidelines on acceptable behavior by > broadband
> providers.
>
> Companies such as AT&T, Comcast, Time Warner and Verizon have argued > that
> net neutrality legislation is unnecessary and could stifle future
> investment in broadband at a time when the Obama administration is > trying
> to spur increased deployment.
>
> Despite Boucher's stance, watchdogs have been careful not to > criticize the
> lawmaker, an important ally who is viewed as someone they can work > with.
>
> "It's a long Congress and we're just getting started," Brodsky said, > when
> asked if the bill faces dim prospects without Boucher onboard. "We > don't
> know that he's not necessarily going to support it."
>
>
> http://www.nationaljournal.com/congressdai...090803_4284.php
>
> -----
> AGRICULTURE: PETERSON BACKS CLIMATE BILL IN SUGAR SPEECH
> By Jerry Hagstrom
>
>
> PARK CITY, Utah -- Although climate change and healthcare reform
> legislation are meeting resistance in rural America, House Agriculture
> Chairman Collin Peterson told farmers today it is unrealistic to > think the
> government will not take action on controlling greenhouse gases, and > he
> defended the Obama administration's efforts to curb healthcare costs.
>
> In a speech by telephone from Minnesota, Peterson told the American > Sugar
> Alliance that the House-passed climate change bill, in which he was > heavily
> engaged, is a measure "we can live with."
>
> After the Supreme Court ruled that EPA must regulate greenhouse gases
> under the Clean Air Act, he said, it would have been unlikely for the
> government not to take action. That ruling motivated him to play a > major
> role in the House bill, and he predicted the Senate would produce a > bill
> even more favorable to farm-state interests.
>
> One provision Peterson praised in the House-passed bill was language > that
> would stop EPA from analyzing the impact of U.S. ethanol production > on land
> use in other countries for five years. He added that with > congressional
> action, farm states will "at least ... have a seat at the table."
>
> Earlier in the day, the group heard a similar argument from another > farm
> state Democrat, Senate Budget Chairman Kent Conrad. The North > Dakotan told
> the sugar growers his "biggest contribution" to the climate-change > debate
> was to make sure any related legislation could not be fast-tracked > under
> reconciliation.
>
> "I knew I would give up my negotiating leverage if that went forward,"
> Conrad said, adding he would fight for a climate change bill that > would
> benefit rural states.
>
> On the subject of healthcare reform, Peterson said the effort in the > House
> "has a lot of problems," but taking action aimed at curbing costs is
> "something we can't avoid any longer." Peterson is a member of the > Blue Dog
> Coalition, which stalled committee action until its members secured
> language more favorable to rural states and small businesses.
>
> Peterson said even though some Blue Dogs supported the bill approved > by
> the House Energy and Commerce Committee Friday, he would not vote > for it.
> If the Senate Finance Committee approves a bill, he added, that > version is
> the most likely to become law.
>
>
> http://www.nationaljournal.com/congressdai...090803_7755.php
>
> -----
> HOUSE LEADERSHIP: LEADERS SCHEDULE FUNDRAISERS, FOREIGN TRIPS
> By Billy House
>
>
> House leaders are fanning out around the world during the first week > of
> the August recess, focusing on healthcare reform, the Middle East > and the
> constant need to raise money for political friends.
>
> Minority Leader Boehner and Minority Whip Cantor are overseas on > separate
> trips, while Majority Leader Hoyer will be leaving the country later > this
> week. Meanwhile, Speaker Pelosi is concentrating on raising money for
> Democrats and stumping for the House healthcare plan.
>
> Pelosi kicks off her public schedule with a healthcare event Tuesday > at a
> community health center in her San Francisco district. That will be
> followed by a health event Thursday in Denver and a fundraiser > Thursday
> night in Boulder, Colo.
>
> "All the interest is in health care," said Pelosi, although she noted
> "there will be, in some parts of the country, interest in energy."
>
> Cantor, the highest-ranking Jewish Republican in the federal > government,
> arrived Sunday in Israel with two-dozen other Republican lawmakers > for a
> weeklong stay that will include meetings with Israeli and Palestinian
> officials.
>
> Cantor has said he is concerned about the Obama administration's > dealings
> with Palestinians.
>
> Hoyer will lead a similar trip to the Middle East, departing > Saturday with
> 34 other Democrats.
>
> Both trips are sponsored by the American Israel Education Foundation,
> which is affiliated with the American Israel Public Affairs > Committee. In a
> statement, AIPAC said the trips will give lawmakers "a personal, > firsthand
> view of the issues facing our friends in the region and American > policy in
> the Middle East."
>
> Among those scheduled to meet with the two groups are Israeli > President
> Shimon Peres and Palestinian Prime Minister Salam Fayyad.
>
> Boehner, like Cantor, is out of the country, heading a congressional
> delegation on a trip that Republican sources today only described as
> "dealing with ... the global economic crisis and national security." > They
> said they would disclose where Boehner and others were after they > leave
> those locations.
>
> Before heading for the Middle East, Hoyer will attend political > events for
> upstate New York Democratic Reps. Scott Murphy, Michael Arcuri, Eric > Massa
> and Dan Maffei. He will also hold a healthcare event Thursday in his
> Maryland district.
>
>
> http://www.nationaljournal.com/congressdai...090803_6089.php
>
> -----
> TECHNOLOGY: TECH FIRMS WITH IRAN DEALINGS FACE SCRUTINY
> By Andrew Noyes
>
>
> With heightened international pressure facing Iran, some lawmakers are
> hoping to advance legislation that would crack down on foreign > technology
> firms that do business there.
>
> Sen. Charles Schumer, D-N.Y., and Rep. Brad Sherman, D-Calif., > introduced
> identical bills in late June that would punish companies selling > equipment
> to aid the Iranian government in monitoring or blocking Internet and
> cellular phone communications. In particular, the bills would ban such
> firms from applying for U.S. government contracts or renewing > expiring ones
> unless their ties with Iran were severed.
>
> Electronics giant Siemens, for example, has thousands of federal > contracts
> worth more than $250 million in 2009, and a joint venture with Nokia > holds
> about $5 million worth of U.S. government contracts, Schumer's > office said.
> Both have been implicated in Tehran's efforts to spy on its citizens > and
> stifle communications, especially after the country's post-election > unrest.
>
> Officials involved in the Siemens-Nokia joint venture have denied any
> wrongdoing. In a statement issued in June, they said Iran's national
> telecom operator was given the capability to conduct voice > monitoring of
> local calls on its fixed and mobile networks in order to fulfill a > lawful
> intercept requirement. But the technology cannot facilitate Internet
> snooping, network filtering or international call monitoring, Nokia > Siemens
> Networks said.
>
> For now, Sherman's bill is still awaiting consideration by the House
> Oversight and Government Reform Committee, while Schumer's is pending
> before the Senate Homeland Security and Governmental Affairs > Committee.
>
> If lawmakers proceed with any moves to impose sanctions on Iran,
> technology-specific language could be an attractive component, say > aides.
> But they also downplayed the chances of stand-alone bills gaining > traction
> soon.
>
> One related provision that has moved is in the Senate-passed FY10 > defense
> authorization bill, which includes language to authorize $30 million > for an
> expansion of Radio Free Europe/Radio Liberty's Farsi-language > service and
> the Voice of America's Persian News Network.
>
> The funds could also be used for anti-censorship software and anti-> jamming
> efforts for Iranian radio, satellite and Internet-based transmissions,
> according to the offices of its sponsors, Homeland Security and
> Governmental Affairs Chairman Joseph Lieberman and Sen. John McCain,
> R-Ariz.
>
> This is not the first time lawmakers have turned up the heat on tech
> companies' dealings abroad. Cisco, Google and Yahoo faced scrutiny on
> Capitol Hill last year for reportedly having a role in China's > construction
> of a system for monitoring and censoring online dissidents. In both
> instances, high-tech trade groups have remained silent. A Nokia > spokeswoman
> today declined to comment on the bills.
>
> "You're not going to spend your political capital on something to > protect
> one or two companies who might have done something unappealing," one > tech
> association official said today.
>
>
> http://www.nationaljournal.com/congressdai...090803_1577.php
>
> -----
> AGRICULTURE: CONRAD PLEDGES AG PROGRAMS WILL STAY INTACT
> By Jerry Hagstrom
>
>
> PARK CITY, Utah - Despite the need to curb government spending,
> agriculture programs are not likely to be among those trimmed, one > of the
> Senate's top Democratic budget hawks said today.
>
> In a video-conference speech to the American Sugar Alliance, Senate > Budget
> Chairman Kent Conrad said he expects agriculture programs to stay > largely
> protected in the deficit reduction program that he and Senate Budget
> ranking member Judd Gregg have proposed. Conrad added he is not taking
> anything off the table, but noted lawmakers completed a farm bill > just last
> year. "I believe we would be in good shape in agriculture," he said.
>
> In a speech focused on defending the Obama administration's stimulus > plan,
> Conrad also called for serious consideration of his deficit-reduction
> proposal. Noting that the difference between inter-bank-lending > rates and
> Treasury bills are almost back to normal, Conrad said the economy is
> "pulling out of free fall."
>
> But given the prospect of long-term deficits, Conrad said he was
> "delighted" that Treasury Secretary Geithner said this weekend the
> government must address the issue of debt. Under the proposal he and > Gregg
> have offered, he said, the deficit would be cut in a package that also
> addresses Social Security, healthcare costs and taxes.
>
> Healthcare reform could "bend the cost curve in the right way," said
> Conrad, but only if lawmakers proceed with "thorough-going tax > reform." He
> added, "We are only collecting 76 percent of what is owed and due. > We are
> going to have to junk much of the present system."
>
> Conrad cited as examples tax shelters and laws that allow companies to
> protect offshore income from taxation. He said the government misses > out on
> $50 billion a year due to tax shelters, and another $100 billion > could come
> from tightening offshore-revenue collection.
>
> One area Conrad did not think would be taxed for healthcare reform was
> sugary drinks. Some lawmakers have floated the idea, but Conrad told > the
> sugar group such a tax will not be included.
>
>
> http://www.nationaljournal.com/congressdai...090803_3571.php
>
> -----
> SENATE RACES: CONWAY, MONGIARDO SPAR AT FANCY FARM
> By Patrick Crowley
>
>
> FANCY FARM, Ky. -- Less than a week after Sen. Jim Bunning, R-Ky.,
> announced plans to retire, one of the Democrats running to replace > him also
> ran into trouble for his own vulgar language at Saturday's 129th > annual
> Fancy Farm Political Picnic in rural western Kentucky.
>
> Although the picnic is known for its biting political speeches and > rowdy
> crowd, which heckles candidates as they speak, Democratic Attorney > General
> Jack Conway is being asked to apologize after using profanity.
>
> Conway was being heckled when he referenced former Democratic Sen. > Wendell
> Ford, who held the Senate seat for 24 years before retiring in 1998.
>
> "You all can holler all you want at me and I can hear you," Conway
> hollered back. "But just like Wendell Ford used to say: 'Go ahead > and chew
> on my hide. Chew on it. It only grows back tougher, and I've been > around
> for a while, and you're looking at one tough son of a bitch.'"
>
> Kim Geveden, campaign spokesman for Lt. Gov. Daniel Mongiardo who is > also
> seeking the Democratic Senate nomination, called on Conway after the > picnic
> to issue a formal apology.
>
> "He used inappropriate language at a church picnic," Geveden said. "I
> don't care if it is Fancy Farm, that sort of language is wrong at a > family
> event on the grounds of a church."
>
> Conway spokesman Mark Riddle said Conway has no reason to apologize. > "Jack
> was referring to himself; he didn't call anyone a name," Riddle > said. "This
> was Fancy Farm; the speeches can get pretty wild. Daniel Mongiardo > needs to
> toughen up a little."
>
> In his five-minute address to the crowd, Mongiardo tried to portray
> Conway, the son of a wealthy trial lawyer and thoroughbred horse > owner, as
> an elitist.
>
> "I certainly wasn't born with a silver spoon in my mouth," Mongiardo > said,
> as his supporters in the crowd waved spoons. "In the Senate, I'm > going to
> stand up and fight for the people who eat barbecue with a fork, not > caviar
> with a silver spoon."
>
> During his speech Conway, who has raised twice as much money as > Mongiardo,
> also got in a shot, saying that Mongiardo, an ear, nose and throat > surgeon,
> had "misdiagnosed me."
>
> "When it comes to me," Conway said, "you can't hear the truth, you > can't
> smell the truth, and you sure as hell can't speak the truth."
>
> Conway and Mongiardo also went back and forth over cap-and-trade > proposals
> to curb greenhouse gas emissions, a huge issue in coal-rich Kentucky.
>
> Mongiardo, who opposes cap-and-trade, said in his speech and in an > earlier
> interview that the policy will devastate a coal-producing state like
> Kentucky. He repeatedly said Saturday that Conway has not taken a > stand
> against cap-and-trade.
>
> But Conway said Saturday morning that he would have voted against the
> House version of the cap-and-trade bill. "I won't ... cast a vote > that will
> hurt Kentucky coal," Conway said in his speech. "You have my word on > that
> today."
>
> Riddle accused Mongiardo of lying about Conway's stance on the > issue. "He
> should apologize for that," Riddle said.
>
>
> http://www.nationaljournal.com/congressdai...090803_1287.php
>
> -----
> SENATE RACES: KENTUCKY GOP CANDIDATES TARGET OBAMA
> By Patrick Crowley
>
>
> FANCY FARM, Ky.-- Kentucky Republican Secretary of State Trey > Grayson and
> eye surgeon Rand Paul took more shots at Washington than they did at > each
> other at this weekend's 129th annual Fancy Farm Political Picnic in > western
> Kentucky.
>
> "On one hand you can choose someone who will fall in line with > (President)
> Obama, [House Speaker] Pelosi and [Senate Majority Leader] Reid," said
> Grayson, the recognized front-runner. "Or you can choose someone > like me,
> who shares our conservative Kentucky values and who will always put
> Kentucky first."
>
> Grayson also criticized cap-and-trade as a bad policy concocted by
> liberals in Washington. "That means higher utility bills, fewer jobs > and
> less take-home pay. But that's a liberal for you," Grayson said. > "They'd
> rather punish hard-working Kentuckians than force China or India to > deal
> with their own environmental records."
>
> Paul, the son of Texas GOP Rep. Ron Paul, held up the 1,100-page > federal
> stimulus bill, saying no member of Congress read it before voting > and using
> it as example of Washington being out of touch with the people.
>
> Paul was as tough on his own party as he was on the Democrats. "You > have
> Republicans who wear their family values on their shirt sleeves, and > then
> trot off Argentina to see their mistress," Paul said, referring to > South
> Carolina Gov. Mark Sanford.
>
> "You have Democrats who tell us to pay our fair share of taxes, and > yet lo
> and behold when they are appointed to high office they can't seem to > pay
> their own taxes," Paul said, referring to members of the Obama
> administration who ran into trouble when it was revealed they owed > back
> taxes.
>
> Conservatives fed up with Republicans who have run up large deficits > are
> Paul's clear target.
>
> "The Republican Party has been shrinking nationwide," Paul said in an
> interview the night before the picnic. "We have several thousand > people
> already lined up, the people who believe in lower taxes, the people > who
> believe in gun rights, the people who believe in teaching their kids > at
> home."
>
> "There are large segments of the 'leave-me-alone-coalition' that > aren't
> satisfied with what we've been getting from government," he said.
>
> Grayson and Paul are technically still running exploratory > committees, but
> both are expected to formally enter the race as candidates this month.
>
> "My formal announcement is forthcoming," Grayson said. "There's no > doubt
> I'm running. I've been asking people for my vote down here."
>
> Paul would not confirm speculation he will announce his campaign > Wednesday
> on "The Glenn Beck Program." But Paul has said he hopes to tap the > national
> fundraising base that contributed to his father's failed 2008 > presidential
> campaign.
>
> "We're working toward getting the biggest audience we can get to > make our
> announcement," Paul said. "We're about a week away" from announcing, > he
> added. "We've been kind of waiting out of respect for Sen. Bunning > not to
> launch a full-fledged campaign."
>
>
> http://www.nationaljournal.com/congressdai...090803_8413.php
>
> -----
> HILL BRIEFS: LAHOOD PREDICTS 'CASH FOR CLUNKERS' EXTENSION
>
> Transportation. Despite some Senate objections to extending the > "Cash for
> Clunkers" program without changes, Transportation Secretary LaHood > today
> predicted it will follow the House's lead in passing legislation to > add $2
> billion to the program. "We're encouraging senators to listen to > their car
> dealers and the people they represent. If they do that, it will pass > the
> Senate," LaHood said on MSNBC. LaHood said the program has been wildly
> popular and argued that it is good for the economy and the > environment, the
> Associated Press reported. LaHood declined to discuss what options the
> administration has if the Senate fails to act on the bill. The House > has
> left for its August recess.
>
>
> http://www.nationaljournal.com/congressdai...090803_8229.php
>
> -----
> HILL BRIEFS: BANK OF AMERICA PAYS $33M FINE TO SEC
>
> Finance. Bank of America has agreed to pay a $33 million penalty to > settle
> SEC charges that it misled investors about Merrill Lynch's plans to > pay
> $5.8 billion in year-end bonuses to its employees. According to an SEC
> statement, Bank of America said in proxy materials soliciting its
> shareholders' votes to acquire Merrill that Merrill had agreed not > to pay
> the bonuses. Bank of America had already contractually authorized > the bonus
> payments. "Companies must give shareholders all material information > about
> corporate transactions they are asked to approve," said Robert > Khuzami,
> director of the SEC's enforcement division. "Failing to disclose > that a
> struggling company will pay out billions of dollars in performance > bonuses
> obviously violates that duty and warrants the significant financial > penalty
> imposed by today's settlement." According to the SEC, Bank of America
> agreed to pay the fine without admitting or denying the allegations.
>
>
> http://www.nationaljournal.com/congressdai...090803_9995.php
>
> -----
> HILL BRIEFS: OBAMA, SENATE DEMS TO MEET
>
> White House. President Obama has invited Senate Democrats to lunch
> Tuesday. White House Press Secretary Robert Gibbs said the session > will
> allow the president and Democratic senators to review the progress > made in
> the first half of the year and "to continue to talk about priorities > they
> have." The meeting will replace the Democrats' weekly policy luncheon.
> Gibbs joked that Obama will celebrate his 48th birthday with > Democrats at
> the White House because "Chuck E. Cheese's was booked."
>
>
> http://www.nationaljournal.com/congressdai...090803_4220.php
>
> -----
> HILL BRIEFS: REP. DON YOUNG'S WIFE DIES
>
> People. Lu Young, wife of Rep. Don Young, R-Alaska, died overnight
> Saturday, his office announced today. She was 67 and died from natural
> causes, according to the statement. Married for 46 years, Lu Young > worked
> in her husband's office. "Lu was my everything, and I am heartbroken,"
> Young said. "This has come as a shock to all of us." Rep. Young and > his
> wife had two daughters and 14 grandchildren. Young asked that in > lieu of
> flowers, donations be made to his wife's charity, the Lu Young Fund > for
> Children of Families Fighting Cancer, or to the Doyon Foundation. No
> information was available on a memorial service.
>
>
> http://www.nationaljournal.com/congressdai...090803_3383.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "We've had a long markup. I won't say it's been productive, but it's > been
> interesting."
>
> -- House Energy and Commerce ranking member Joe Barton, speaking at > the
> end of Friday's lengthy committee markup of healthcare legislation.
>
>
> http://www.nationaljournal.com/congressdai...090803_8254.php
>
>

[Snuffysmith]

> CongressDaily AM for Tuesday, Aug. 4, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: GOP FINANCE NEGOTIATORS PUSH BACK AGAINST TALK OF DEADLINE
> By Anna Edney with Dan Friedman contributing
>
>
> Senate Republicans pushed back Monday against a Sept. 15 deadline for
> completing a bipartisan healthcare overhaul proposal, saying they > never
> agreed to such an end date.
>
> Senate Health, Education, Labor and Pensions ranking member Michael > Enzi
> denied there was an agreed-upon deadline. "I have not and will not > agree to
> an artificial deadline because I am committed to getting healthcare > reform
> right, not finishing a bill by some arbitrary date," Enzi said.
>
> Sen. Olympia Snowe, R-Maine, echoed a similar sentiment. "Hopefully, > there
> isn't a hard, fast deadline," Snowe said.
>
> Senate Democratic Conference Vice Chairman Charles Schumer, D-N.Y., > said
> Monday that Senate Finance Chairman Max Baucus set the deadline.
>
> "We've got to have some kind of stopping point here," Baucus said.
> "There's got to be some kind of realistic time when we've got to make
> decisions."
>
> Baucus backtracked some, saying the bipartisan group of six Finance
> negotiators would discuss a date in the next few days. That group > includes
> Baucus, Enzi, Snowe, Finance ranking member Charles Grassley, Budget
> Chairman Kent Conrad and Sen. Jeff Bingaman, D-N.M.
>
> "We want to get a bipartisan agreement, but if we don't, it's not > going to
> stop us from moving forward with health care," Schumer said.
>
> "If the Republicans are not able to reach an agreement, we will have
> contingencies in place," he added.
>
> Those contingencies include using budget reconciliation to pass a > partisan
> bill, he said.
>
> Senate Majority Leader Reid is on the same page with Schumer. > Democrats
> would need the month between the deadline and the mid-October date the
> reconciliation process is allowed to begin to cobble together a bill.
>
> As the deadline looms, the six-member group expects to have a draft
> overhaul bill to read over recess, Snowe said. On tax matters, the
> committee typically works off of conceptual language because it > refers back
> to tax code, but the massive healthcare policy bill will have specific
> language.
>
> CBO told the committee it needs specific language to accurately > score the
> bill, Snowe said.
>
> Snowe, in part, blamed some of the slow negotiations on the fact that
> other bills were rushed to meet an August deadline to pass an > overhaul that
> was never met in the House or Senate. "We're having to make up for > that,"
> she said.
>
> "Setting that arbitrary deadline gave that false sense that we can > wrap
> our arms around this and just drive it right through," Snowe added. > "People
> got nervous and rightfully so."
>
> The bipartisan group of Finance senators met for about two hours > Monday
> and mainly discussed immigration issues. Baucus said they made a
> breakthrough, but did not elaborate.
>
> Republicans want to ensure proper documentation is made available to
> ensure illegal immigrants are not participating in government > programs.
>
>
> http://www.nationaljournal.com/congressdai...090804_7445.php
>
> -----
> ENVIRONMENT: PATH TOWARD BOOSTING 'CLUNKERS' PROGRAM GETS EASIER
> By Darren Goode and Dan Friedman
>
>
> The path toward Senate passage this week of a $2 billion boost for the
> "Cash for Clunkers" program got a bit easier Monday after those > seeking
> higher fuel-efficiency requirements signaled they will support a
> House-passed extension without changes. And although time is a > factor in
> getting it to the floor in a busy week, senators from both parties
> predicted passage.
>
> Sens. Dianne Feinstein, D-Calif., and Susan Collins, R-Maine, said > Monday
> they are no longer worried the program would inadequately boost fuel
> efficiency after being briefed by the National Highway Traffic Safety
> Administration. "These numbers are actually very good numbers," > Feinstein
> said. Those numbers -- echoed in talking points the Obama > administration
> sent all Senate offices Monday -- tout an average of 25.4 miles per > gallon
> for vehicles sold in the program, which unexpectedly ran out of its > initial
> $1 billion congressional financing in less than a week. This, they > tout, is
> a 9.6 mpg, or 61 percent, improvement over the trade-ins. In > addition, only
> 5.5 percent of vehicles sold were large trucks, "which for us was the
> problem," Feinstein said.
>
> Collins also touted NHTSA's argument that the program saves consumers
> between $700 and $1,000 annually in gas. She predicted more GOP > support
> than the four who backed the initial $1 billion in funding for the > program
> as part of a supplemental spending bill because it would be paid for > this
> time through unused stimulus funds.
>
> Feinstein, Collins and Sen. Charles Schumer, D-N.Y., who all > participated
> in a media briefing Monday afternoon, predicted there are 60 votes > in the
> Senate for this next $2 billion. "My guess is we can get these 60 > votes,"
> Schumer said. He added Majority Leader Reid is "committed to getting > this
> done."
>
> Sen. Debbie Stabenow, D-Mich., said Democrats hope to reach > agreement with
> Republicans that allow one vote on a bill with 60 votes required for
> passage, which she said Democrats expect to win. A filibuster remains
> possible, but Democrats are still trying to get unanimous consent on > that
> one-vote strategy before leaving. Stabenow said the most likely day > for a
> vote is Thursday, though that is Reid's decision.
>
> A spokesman for Reid said the main issue is "we don't have a lot of > time."
>
> Reid is trying to get an agreement to expedite debate and have a vote
> before holding one on Judge Sonia Sotomayor, but it is unclear > whether that
> is possible. For one thing, that might mean the chamber runs out of > time on
> travel promotion legislation important to Reid's state of Nevada. > Senators
> also will look to finish the FY10 Agriculture Appropriations bill (see
> related story, page 7) before leaving until September.
>
> Still, no Republican has said they will hold up the bill. "I'm going > to
> hold my fire for now," Sen. Tom Coburn, R-Okla., said, indicating he > will
> wait to see what Reid does. Coburn predicted the bill will pass.
>
> Collins said there is interest among Senate Republican leaders to > sit with
> Democrats "and work out a way ahead."
>
> Minority Leader McConnell -- while criticizing the program -- did > not tip
> his hand in a floor speech Monday. "We were told this program would > last
> for several months," McConnell said. Invoking the debate also over > health
> legislation, McConnell added, "There's a pattern here, a pattern that
> amounts to an argument -- and a very strong argument at that: When the
> administration comes bearing estimates, it's not a bad idea to look > for a
> second opinion. All the more so if they say they're in a hurry."
>
> Stabenow, like Collins, predicted more GOP support this time, > including
> from Sen. Sam Brownback, R-Kan., who co-sponsored the initial Senate > bill.
>
> Brownback was among 36 Republicans who balked at including the > initial $1
> billion as part of a supplemental spending bill. That supplemental > funding
> was approved, 60-36, squeaking by with the 60 votes needed at the > time to
> overcome a budget point of order from Sen. Judd Gregg, R-N.H.
>
> The $2 billion would come from unused stimulus funding for renewable
> energy loan guarantees, which Schumer and Feinstein promised would be
> replenished after lawmakers return from Labor Day. Schumer said no > harm is
> done because this funding would not be doled out until well after it > is
> filled again. Using that funding, though, is a particular headache for
> Energy and Natural Resources Chairman Jeff Bingaman, who helped > author the
> loan guarantee program. His spokesman said Bingaman, who voted for the
> initial $1 billion in funding, remains undecided on the additional $2
> billion. Sen. Ben Nelson, D-Neb., who was the only Democrat to vote > against
> the supplemental funding, said he also needs to look at the funding > source
> and is undecided.
>
> Also undecided is Appropriations ranking member Thad Cochran, who > voted
> for the initial funding and whose state of Mississippi is home to a > major
> Nissan manufacturing plant, as is Sen. Olympia Snowe of Maine, who > voted
> against the initial round of funding. The other two Republicans who > voted
> in favor of it last time -- Sens. Christopher (Kit) Bond of Missouri > and
> George Voinovich of Ohio -- are expected to do so again.
>
> As the votes are being counted, auto dealers and manufacturers are > pushing
> for the Senate to approve the House bill this week.
>
> The National Automobile Dealers Association sent out a legislative > alert
> Friday, to help encourage their member companies to contact senators > to
> vote for the House bill unchanged. "You may recall that the original
> 'clunkers' bill passed the Senate with not a vote to spare," > Friday's alert
> said. "It is critical that dealers and their employees call their > senators
> as soon as possible and urge them to vote for H.R. 3435 to ensure > the Cash
> for Clunkers program continues."
>
> A spokesman for the Alliance of Automobile Manufacturers said that > group
> is working closely with the dealers to lobby members, including in-> person
> meetings on Capitol Hill. The manufacturers are not doing a media > campaign,
> the spokesman said. The U.S. Chamber of Commerce extended their > support
> through a letter Friday.
>
>
> http://www.nationaljournal.com/congressdai...090804_7673.php
>
> -----
> LOBBYING: FORGERY GIVES ADVOCATES NEW WAY TO PUSH FOR CLIMATE BILL
> By Carrie Dann
>
>
> A case of forgery by a Washington-based consulting firm that worked to
> defeat cap-and-trade legislation has given the bill's backers a new
> rallying cry to cut through the noise of an August recess dominated > by the
> national healthcare debate.
>
> Proponents of the climate bill hope to gain momentum after last week's
> disclosure that Bonner & Associates sent counterfeit letters -- > purportedly
> from two Virginia civil rights organizations -- urging Rep. Tom > Perriello,
> D-Va., to oppose the legislation that passed the House last month.
>
> "It underscores the point that [the bill's opponents] don't have the > facts
> to back up their argument," said Tony Kreindler, a lobbyist for the
> Environmental Defense Fund. "They were making stuff up."
>
> "This gives us a great hook to continue the dialogue" on the climate > bill,
> said a lobbyist for another group that supports the climate change
> legislation, which the Senate is expected to take up later this year.
>
> The American Coalition for Clean Coal Electricity, the Bonner client > on
> whose behalf the false letters were sent, distanced itself from the > firm
> Monday, saying members of the business group are "outraged" by the > forgery.
>
> "The standards and practices that we require for grassroots advocacy
> outreach were not adhered to by Bonner and Associates," said coalition
> President Stephen Miller.
>
> In addition to the letters sent to Perriello, first reported by the
> Charlottesville Daily Progress on Friday, letters were also sent to > Reps.
> Kathy Dahlkemper, D-Pa., and Chris Carney, D-Pa., the coalition said.
>
> Bonner & Associates acted as a subcontractor hired by the Hawthorn > Group,
> the coalition's primary grassroots outreach firm.
>
> Two advocacy groups, MoveOn.org and the Sierra Club, are launching
> campaigns to urge the Justice Department to investigate the > correspondence,
> sent on behalf of the coal group by the firm founded by Jack Bonner in
> 1984.
>
> The Sierra Club took out print ads today and Wednesday in Washington
> publications, invoking the Bonner letters to skewer the "dirty-energy
> Washington lobbyists" who hoped to defeat the climate bill in the > House
> last month.
>
> House Global Warming Chairman Edward Markey also has launched a > probe into
> the forgery and the firm's business practices.
>
> Bonner has said the letters were drafted by a temporary employee who > was
> terminated after the forgery was discovered.
>
> The renewed clamor over the climate legislation comes as interest > groups
> try to draw the attention of many of the same moderate-to-conservative
> Democrats being targeted this month by friends and foes of a > healthcare
> overhaul sought by President Obama.
>
> The Environmental Defense Fund has launched a two-month ad campaign to
> skewer Reps. Tim Holden, D-Pa., Mark Souder, R-Ind., and Patrick > Tiberi,
> R-Ohio, for voting against the bill.
>
> The ads are meant to telegraph a warning to senators in each > lawmaker's
> home state. The campaign may be expanded to other House districts to > catch
> the attention of other senators whose votes may be critical in the > fall.
>
>
> http://www.nationaljournal.com/congressdai...090804_6799.php
>
> -----
> TRADE: AHEAD OF AFRICA TRIP, KIRK PREPARES TO GIVE 'TOUGH LOVE'
> By Peter Cohn
>
>
> The Obama administration appears open to extending trade benefits to > poor
> Asian countries such as Bangladesh and Cambodia, a move that could > put the
> White House on a collision course with African trade advocates, as > well as
> domestic textile interests.
>
> Briefing reporters Friday in advance of his trip this week to Nairobi,
> Kenya, for the eighth annual African Growth and Opportunity Act forum,
> Trade Representative Kirk said helping the rest of the developing > world did
> not have to come at Africa's expense.
>
> "[T]he United States is absolutely committed [to a] strengthened,
> successful relationship with AGOA, but that should in no way impair > our
> relationships with other least-developing countries that we feel a
> responsibility to reach out to and build a relationship with as > well," Kirk
> said. The forum runs today through Thursday.
>
> AGOA provides duty-free access for about 6,400 products, worth $66 > billion
> last year. Of that figure, only $5 billion represented nonoil goods.
> Textiles and apparel are considered an AGOA success story, but U.S. > imports
> have fallen 28 percent since worldwide quotas expired in 2004 and > market
> share migrated to other countries, including in Asia.
>
> Kirk said he was aware of the concerns from AGOA countries about > granting
> preferential market access to apparel from countries like Bangladesh > and
> Cambodia, which are already major players that far outpace U.S. > imports
> from Africa. But Africa needs to do more on its own to remain > competitive,
> he said.
>
> "I think some of what we may ... respond with would be a little bit of
> tough love," Kirk said. "That the best way to be competitive is that > you're
> going to have to go through some of the reforms that are required, > invest
> in your infrastructure, invest in your people, utilize some of the
> technical assistance that we have been able to work with some of our
> partners on."
>
> Kirk's remarks cheered advocates of expanded trade with Asian
> least-developed countries, such as Edward Gresser, who heads the > Trade and
> Global Markets Project at the centrist Democratic Leadership Council.
>
> He recently penned a set of policy recommendations for the Obama
> administration that included elimination of "archaic" tariffs on > apparel,
> linens, footwear and other goods from poor Asian countries that cost > more
> to import in some cases than manufactured products from Western > Europe.
> Gresser said Kirk "makes a strong commitment" to AGOA in his > comments, but
> "certainly does not rule out that, ultimately, there will be > preferences
> for other countries in textiles."
>
> Trade, Aid & Security Coalition Chairman Claude Fontheim called Kirk's
> remarks "very encouraging," arguing they could give the effort on > behalf of
> Asian LDCs momentum as they head into debate over the future of U.S.
> preference programs.
>
> "I think it's hard to imagine the Obama administration closing the > door to
> these sorts of development measures for other enormously poor > countries,
> including those that are extremely important for geopolitical > reasons,"
> said Fontheim, whose group includes apparel importers, as well as
> non-governmental organizations. "There's a lot that can be done that > will
> help sub-Saharan Africa that doesn't involve withholding benefits from
> other poor countries."
>
> Lawmakers such as Rep. Jim McDermott, D-Wash., and Sen. Dianne > Feinstein,
> D-Calif., support lifting tariffs on imports from Bangladesh and > Cambodia
> and other countries. But increasing the availability of textile and > apparel
> imports riles domestic manufacturers, primarily in North and South
> Carolina, not to mention Africa advocates.
>
> As chief trade negotiator, Kirk has to take a global view of > preference
> programs, said Edwin Barber, senior adviser for African Development at
> GoodWorks International LLC. "But I would hope we can do something for
> other poor countries without gutting benefits for Africa," Barber > said.
>
> He said AGOA could be extended for a longer period of time than the > recent
> short-term extensions; product coverage could be expanded, and certain
> sensitive tariff lines such as cotton-knit men's shirts and trousers > could
> be excluded from Asian LDC benefits, for example. Otherwise, Barber > said,
> granting preferences to Bangladesh and Cambodia could "wipe the most
> successful trading experiment we've had with African countries right > off
> the map."
>
>
> http://www.nationaljournal.com/congressdai...090804_2765.php
>
> -----
> GOVERNMENT OPERATIONS: OFFICIALS SAY STRICTER RULES GOVERN > CONTRACTOR AWARD
> FEES
> By Andy Leonatti
>
>
> Procurement officers for NASA and the departments of HHS, Homeland
> Security, Defense and Energy told a Senate subcommittee Monday they > were
> taking steps to ensure performance bonuses attached to contracts are
> awarded responsibly.
>
> Alluding to bonuses paid to executives by Wall Street financial firms
> receiving federal bailout funds, Senate Homeland Security and > Governmental
> Affairs Federal Financial Management Subcommittee Chairman Thomas > Carper,
> D-Del., said "rewards and incentives that are not properly aligned > can lead
> to failure."
>
> The use of "award-fee" contracts at the departments and NASA have come
> under fire over the years as awards have been paid out even though
> performance measures were not met by contractors.
>
> William McNally, NASA's assistant administrator for procurement, > said the
> agency had banned the practice of "rolling over" awards, which gives
> contractors an opportunity to earn an award from a previous evaluation
> period that was lost due to poor performance.
>
> McNally said the practice was banned because it removes the > incentive to
> improve performance.
>
> Jeffrey Zients, OMB's deputy director of management, said there > needs to
> be verifiable evidence of an extraordinary situation for rolling over
> awards "if it's not an outright ban."
>
> John Hutton, GAO's director of acquisition and sourcing management,
> agreed, telling the subcommittee it would be "hard-pressed" to find > a time
> when rolling over an award is appropriate.
>
> Zients said OMB has issued findings for responsibly managing award > fees so
> that awards are not paid for unsatisfactory work or failing to meet
> requirements of a contract. Award payments are linked to timeliness, > cost
> and quality of work, he said.
>
> Zients also praised the Defense Department for taking action to link > award
> payments to project outcomes and scaling back "rollover."
>
> OMB and the Federal Acquisition Regulation Council are working > toward new
> regulations that will provide more specific guideposts for doling out
> award-fee contracts, he added, noting that the agencies share the
> subcommittee's skeptical view of rolling over awards.
>
> "These facts are being taken into careful consideration in > deliberations
> over whether the practice should be banned altogether," Zients said.
>
> Sen. Tom Coburn, R-Okla., wondered why contractors do not share the > same
> risk as the government in contracts being completed on time. He > suggested
> that contractors should have capital at risk so there is a greater
> incentive to improve performance.
>
>
> http://www.nationaljournal.com/congressdai...090804_8388.php
>
> -----
> DEFENSE: DEMS BLAST ARMY'S HANDLING OF TOXIC EXPOSURES IN IRAQ
> By Cyra Master
>
>
> Sen. Byron Dorgan, D-N.D., called the Army's response to soldiers > exposed
> to a highly toxic carcinogen in Iraq "inadequate" and said the > Democratic
> Policy Committee will request a report from the Pentagon's inspector
> general on the matter.
>
> Five soldiers who served at an Iraqi water injection facility in 2003
> testified before the committee Monday, outlining symptoms believed > to be
> the result of exposure to sodium dichromate spread across the > facility.
>
> All five have experienced long-term problems from the exposure to the
> orange dust, the same highly toxic chemical that was the focus of > the case
> made famous in the movie "Erin Brockovich." While many had immediate > health
> problems -- one broke out in sores after only three days at the > facility --
> they were unaware they had been exposed to the chemical until they > received
> letters from the Army earlier this year.
>
> Combat Engineer Glen Bootay found out just weeks ago through a > newspaper
> article. But the soldiers' concerns about their symptoms were > downplayed,
> both in 2003 and in the recent Army letter, several members of the
> committee said.
>
> Dorgan, chairman of the committee, said the Defense Department > "failed to
> protect our troops" and said he believes the department "is > downplaying
> this problem in part because it is an embarrassment to them."
>
> Sen. Tom Udall, D-N.M., called the situation "appalling."
>
> A report from the Army's Center for Health Promotion and Preventative
> Medicine contained inconsistencies and conflicting conclusions, and > the
> blood tests performed on some soldiers were inadequate and taken too > long
> after exposure to provide accurate information, according to former > EPA
> associate director Herman Gibb.
>
> Gibb told the committee that soldiers were exposed to 80 to 200 > times the
> federal limit for worker exposure to sodium dichromate, which he > called one
> of the most potent human carcinogens. He said the Army study and the
> notification letter seemed to minimize the dangers.
>
> The soldiers at the facility were providing security to the > contractor KBR
> when they were exposed. Dorgan said KBR's handling of the situation, > as
> well as the Army's response, is concerning. "I wish I could say the
> Department of the Army has done everything in search for the truth, > but
> sadly I don't feel that's the case," Dorgan said.
>
> Sen. Ron Wyden, D-Ore., said he is convinced enemies spread the > chemical
> around the facility before the American troops arrived and said he > will
> look into awarding Purple Hearts to those sickened from exposure. > The five
> soldiers who testified asked the committee to ensure the Department of
> Veterans Affairs recognizes the symptoms and will classify symptoms as
> service-related disabilities.
>
>
> http://www.nationaljournal.com/congressdai...090804_8766.php
>
> -----
> JUDICIARY: ARTISTS', BROADCASTERS' WORDS HIT CRESCENDO ON ROYALTIES
> By Andrew Noyes
>
>
> Music and broadcasting industry lobbyists have ramped up their > rhetoric
> ahead of today's Senate Judiciary Committee hearing on legislation > that
> would end a royalty exemption extended to AM and FM radio. The bills > Senate
> Judiciary Chairman Patrick Leahy and House Judiciary Chairman John > Conyers
> introduced in February would bring over-the-air radio in line with > cable,
> Internet and satellite services, which pay performers -- but > broadcasters
> warn some stations could go out of business.
>
> On Monday, the MusicFirst Coalition drew attention to a July CBO > report
> that the group insists puts to rest the National Association of
> Broadcasters' refrain that the legislation is a "tax" on local > radio. The
> CBO's analysis of the bill that passed Conyers' committee in May > found the
> measure would not cost taxpayers money to implement nor result in > federal
> revenue. "They're using the word 'tax' because it's a charged word,"
> MusicFirst spokesman Martin Machowsky said of NAB.
>
> Under the House version, small, publicly owned and religious stations
> could elect to pay a flat annual rate while large, commercial stations
> would pay a fee set by a federal panel of copyright judges. The CBO > stated
> the compliance cost for publicly owned stations would be about > $500,000 a
> year, and commercial broadcasters making less than $1.25 million > would pay
> a combined total of about $16 million a year. The estimates are > similar to
> projections from music industry sources.
>
> A Monday release from the NAB highlighted a Senate resolution that > opposes
> "any new performance fee, tax, royalty, or other charge" on AM and FM
> stations, which has attracted 23 co-sponsors. A group of 246 lawmakers
> signed onto a similar measure in the House. Additionally, 22 House
> Democrats wrote to Speaker Pelosi late Friday urging her not to > bring the
> bill to the floor for a vote.
>
> "Congress lacks adequate information on the overall impact that this
> legislation could have on local radio broadcasters and the potential
> disadvantages to our local communities that depend on radio to > create jobs
> and bring residents their local news, emergency information, > weather, and
> information on the activities of their elected governments," the > letter to
> Pelosi stated, according to Majority Leader Hoyer and Majority Whip
> Clyburn.
>
> It is unclear how many Judiciary members will turn up today to hear
> musician Sheila E. face off against Commonwealth Broadcasting Corp. > CEO and
> NAB Radio Board Chairman Steve Newberry. Leahy turned proceedings > over to
> Sen. Dianne Feinstein, D-Calif., with the expectation that he would be
> managing the floor debate over the nomination of Sonia Sotomayor to > the
> Supreme Court.
>
>
> http://www.nationaljournal.com/congressdai...090804_3561.php
>
> -----
> AGRICULTURE: USDA, GROWERS AT ODDS OVER MEXICAN SUGAR ESTIMATES
> By Jerry Hagstrom
>
>
> PARK CITY, Utah -- The Obama administration has not decided whether to
> allow additional sugar imports this year as it implements related
> provisions of the 2008 farm bill and tries to figure out how much > sugar
> Mexico might export to the United States, key USDA officials said > Monday.
>
> In a speech to the American Sugar Alliance, Agriculture > Undersecretary for
> Farm and Foreign Agricultural Services Jim Miller said he was not
> announcing a tariff rate quota for sugar but added more imports > might be
> allowed. If USDA decides to allow more imports, the decision will be
> announced in the next two weeks, he said.
>
> For several months the Sweetener Users Association, which represents > candy
> companies and other industrial users, has been telling USDA that > shortages
> are looming and imports are needed. At the same time, the alliance
> representing domestic growers has claimed prices are low, supplies are
> likely to be plentiful, and additional imports are not needed. Under > the
> farm bill, domestic producers are supposed to supply 85 percent of the
> market. But Mexican sugar comes in without restriction under the North
> American Free Trade Agreement and imports in specific amounts from 40
> countries are also legal.
>
> Sugar Alliance leaders applauded USDA's "cautious" approach, and > grower
> leaders privately say they believe the Obama administration is more
> sensitive to them than the Bush administration was.
>
> At last year's meeting, a Bush administration official announced more
> imports would be allowed. But over the last year, growers said falling
> prices and an underestimation of how much sugar would come into the > country
> from Mexico hurt them.
>
> Barb Fecso, who runs USDA's sugar program, said at the meeting the > U.S.
> sugar market had unusual ups and downs in the past year, in part > because
> Mexico was motivated to send more sugar to the United States so it > could
> make payments to its growers. She also said USDA is trying to keep > prices
> high enough that it does not have to take forfeited sugar from U.S.
> growers.
>
> "We are going to lean on the side of caution," Fecso said. "We don't > want
> to hold stocks."
>
> Although Mexico sent more than 1 million tons of sugar to the United
> States in the 2008-09 marketing year, USDA estimated Mexico will send
> 150,000 tons in the next marketing year. ASA leaders say they expect
> exports will be much higher.
>
> Miller and Fecso acknowledged that meaningful estimates of Mexican > sugar
> exports are difficult because Mexican data collection on sugar > production
> is often inaccurate.
>
>
> http://www.nationaljournal.com/congressdai...090804_6156.php
>
> -----
> APPROPRIATIONS: SENATE VOTES TO END DEBATE ON FY10 AGRICULTURE MEASURE
> By Humberto Sanchez
>
>
> The Senate Monday voted to end debate on the FY10 Agriculture
> Appropriations bill, after defeating an amendment by Sen. John McCain,
> R-Ariz., to eliminate USDA's high energy cost grant program, which > provides
> $17.5 million in grants.
>
> The Senate voted 83-11 to invoke cloture on the measure, which > includes
> $23.7 billion in discretionary funding, about $2.3 billion more than > the
> amount provided in FY09.
>
> The Senate defeated the McCain amendment 55-41.
>
> McCain said the program is duplicative; that a separate rural utility
> service program provides $6.6 billion in electric loans at no cost to
> taxpayers; that $20 million in unobligated energy cost grants are > still
> available from the previous year; and the Obama administration had > also
> called for the program's elimination.
>
> Sen. Lisa Murkowski, R-Alaska, opposed the amendment, saying it serves
> communities where the average residential home energy costs are 275 > percent
> higher than the national average. "There are 14 states across the > country
> that have projects on these high energy areas," Murkowski said.
>
> McCain was critical of the $124 billion in total spending in the bill
> noting that it is about $234 million above the administration's > request. He
> said the spending was not needed given that agriculture programs > received
> $108 billion from the FY09 omnibus appropriations bill and $26.5 > billion
> from the economic stimulus passed in February.
>
> He also cited the committee report accompanying the measure > contained 296
> congressionally directed spending items totaling over $220 million. > McCain
> has filed more than 300 amendments to the bill, most of which seek to
> strike earmarks.
>
> "We need to prove to the American people that we are serious about
> changing the way we do business and we should start with ending the
> practice of earmarking," McCain said.
>
> McCain on Monday offered two other amendments, which the Senate will > vote
> on this morning. A final vote on the legislation is likely today, > according
> to a spokesman for Majority Leader Reid.
>
> One would eliminate the USDA watershed and flood prevention operations
> program, also known as the small watersheds program.
>
> The other McCain amendment would prohibit funding of a $250,000 > earmark
> for the Iowa Vitality Center at Iowa State University.
>
> "According to their own Web site, the purpose of the Iowa Community
> Vitality Center is to serve as a catalyst in fostering collaborative > public
> private partnerships among non-metro community interests to stimulate
> vitality and address barriers to growth," McCain said, adding, "Is > there
> anyone who has a clue as to what that means?"
>
>
> http://www.nationaljournal.com/congressdai...090804_8040.php
>
> -----
> PEOPLE: PEOPLE
> By Gregg Sangillo
>
>
> THE BIG PICTURE. Robert Keleher retired last week after 13 years as > chief
> macroeconomist for the Joint Economic Committee. After earning a > doctorate
> in economics at Indiana University, Keleher started his career as an
> economist with the Federal Reserve Bank of Atlanta. He served on > President
> Ronald Reagan's Council of Economic Advisers in 1985-86, and then > became an
> adviser for former Federal Reserve Board Vice Chairman Manuel > Johnson. He
> was chief economist at Johnson Smick International before joining > the JEC
> staff in 1996.
>
> CALL SECURITY. Laura Holgate is working at the White House National
> Security Council as senior director for weapons of mass destruction,
> terrorism, and threat reduction. Holgate is a longtime national > security
> hand. Early in her career, she worked on the Clinton administration
> transition team from 1992-1993 at the now-defunct Arms Control and
> Disarmament Agency. During the 1990s, Holgate directed the Office of
> Cooperative Threat Reduction at the Pentagon. The final few years in > the
> Clinton administration, Holgate was director of the Office of Fissile
> Materials Disposition. Since 2001, she has been working at the Nuclear
> Threat Initiative, a nonproliferation group co-founded by media > mogul Ted
> Turner and former Sen. Sam Nunn, D-Ga. Nunn is currently CEO of the
> organization, which publishes Global Security Newswire, a National > Journal
> Group affiliate. NTI recently brought in Mark Kitchens as its chief
> communications officer. Most recently, he worked as senior vice > president
> for communications and strategy at AARP. Earlier in his career, he > worked
> in public affairs under Gen. Tommy Franks during Operation Iraqi > Freedom.
> He was an aide on the 2004 presidential campaign of Sen. John Kerry,
> D-Mass. The native of Fort Worth, Texas, started out working in the
> district office of former Rep. Pete Geren, D-Texas, who is secretary > of the
> Army. Kitchens eventually came to Washington and landed a position in
> President Bill Clinton's White House press office. Earlier this > year, NTI
> hired Bryan Wilkes, who has been an aide for Sen. Mike Crapo, R-Idaho;
> former Sen. Larry Craig, R-Idaho, and Rep. Ed Royce, R-Calif.
>
> GOING NORTH. Len Burman is leaving Washington. Burman has been an
> institute fellow at the think tank Urban Institute and director of > the Tax
> Policy Center, which is a joint program run by the Urban Institute > and the
> Brookings Institution. Burman will be working as the Daniel Patrick
> Moynihan Professor of Public Affairs at Syracuse University's Maxwell
> School, named after the late New York senator. Burman is a former > senior
> analyst at CBO, and he has also worked as deputy assistant secretary > for
> tax analysis at the Treasury Department in the Clinton administration.
>
>
> http://www.nationaljournal.com/congressdai...090804_2902.php
>
> -----
> OFF TO THE RACES: SUMMER'S STORYLINES
> By Charlie Cook
>
>
> Last week was a big week in Washington. The House Energy and Commerce
> Committee reported out its version of the healthcare reform bill, > while the
> full House, in an uncharacteristic case of speed and responsiveness,
> extended the wildly popular "Cash for Clunkers" program less than 24 > hours
> after news broke that it was so successful it had run out of money.
>
> Meanwhile, on the other end of Pennsylvania Avenue, the president > hosted
> the most watched serving of brews in world history. What is more > important
> than last week's events, however, is what will happen over the next > month
> across 50 states and 435 congressional districts, both politically and
> economically.
>
> In today's world, there is a natural tendency for storylines to > develop.
> While some developments that support the storyline get great weight,
> others, to the extent they don't get too frequent or important, get
> discarded.
>
> Over the last couple of weeks, a political storyline started to > develop,
> stating that President Obama's administration and his Democratic > agenda
> were in free fall, in almost a death spiral down to the depths of > Jimmy
> Carter-land, along with other failed presidents.
>
> It held that his party was coming apart at the seams on the all-> important
> issue of health care while his job approval rating was nose-diving.
>
> Among longtime Democratic Washington insiders, the mood was dark and > very
> pessimistic, while reports said that the mood in the White House was > as bad
> or worse.
>
> Many congressional Democrats reported getting an earful of > complaints on
> the House passage of climate change legislation during the > Independence Day
> recess. They are now headed home wondering what their party's agenda > will
> create for them in August. As members fan out across the country, the
> reactions they receive will dictate how the Democratic agenda will > fare
> this fall.
>
> If the public response is profoundly negative, then nothing that was
> accomplished before this point matters and Democrats will be in > hunker-down
> mode. They will be convinced that the next 15 months is about > survival, and
> getting re-elected in November 2010, in what could be a very nasty
> environment for them. On the other hand, if the reception they > receive is
> positive, then it will embolden them to keep going and get their > agenda
> passed.
>
> Another storyline that has been trying to develop is that the > recession
> has bottomed out and there are increasing signs that a recovery is
> beginning. The Index of Leading Economic Indicators has been > pointing up
> for three months and initial unemployment claims have declined > comparable
> to recovery points in the past.
>
> Then, the Gross Domestic Product figures were released last week, > showing
> that while the first quarter economy had dropped 6.4 percent, even > worse
> than previously thought, the preliminary number for the second > quarter was
> just 1.0 percent, far better than expected. On Monday, a report by
> International Strategy & Investment stated, flat out, "We can't > recall a
> week with as much positive economic news as last week."
>
> Ed Hyman, ISI's chief economist who for the last 29 years has been > named
> the top economist on Wall Street by Institutional Investor magazine, > lifted
> the firm's GDP forecast for next year from 3.5 percent to 4 percent,
> holding their projection for the 3rd quarter of this year at 2.0 > percent
> and 3 percent for the 4th quarter.
>
> Sure, the unemployment number is politically potent, but with the > stock
> market -- read 401(k) and retirement plans -- back to its highest > level
> since the November election and most economic indicators pointing > up, we
> could be seeing a very positive economic storyline developing.
>
> There is still a spirited debate in the economic world about what the
> shape of any recovery might be. Some say that depleted inventories and
> pent-up spending could build a "V"-shaped recovery; the best case > for that
> is that historically the deeper the recession, the faster the > recovery and
> job creation.
>
> A second school of thought is that it could be a "W" recovery, with a
> bounce-back, but a weak one that can't sustain itself. Particularly > late
> next year, when the stimulus will have worked itself through the > system,
> the market will take another drop, before making an eventual rebound.
>
> The final and most pessimistic projection is the "L," in which we have
> bottomed out, but persistently tight credit markets will prevent > anything
> approaching a robust recovery to occur for several years to come.
>
> The question is whether we have two very divergent storylines > developing.
> The first is a negative political narrative, driven by people who like
> Obama yet are disappointed by his agenda and question his > effectiveness.
> The second is a positive economic picture. The show will be how > these two
> conflicting storylines reconcile with each other.
>
> Does the positive economic picture have a positive effect on the > political
> one, or does the negative political storyline prevent Obama from > getting
> credit for an economic upturn?
>
>
> http://www.nationaljournal.com/congressdai...090804_7748.php
>
> -----
> POLITICAL ROUNDUP: GOP STATE SENATOR ENTERS RACE AGAINST KIND IN WIS.
>
> Wisconsin Republican state Sen. Dan Kapanke announced Monday he will
> challenge Democratic Rep. Ron Kind in the 3rd District next year.
>
> "I am running for Congress because Washington is running on the wrong
> tracks and needs to realign itself with the needs of the people," > Kapanke
> said in a statement, according to the Milwaukee Journal-Sentinel.
>
>
> http://www.nationaljournal.com/congressdai...090804_8457.php
>
> -----
> POLITICAL ROUNDUP: STATE DEPT. ASKS TAUSCHER ENDORSEMENT BE DROPPED
>
> State Department officials have asked California Democratic state Sen.
> Mark DeSaulnier to remove all references in his campaign materials > to his
> endorsement by former Democratic Rep. Ellen Tauscher, the Contra Costa
> Times reported.
>
> DeSaulnier is one of 14 candidates running in the Sept. 1 special > primary
> election to replace Tauscher, undersecretary for Arms Control and
> International Security.
>
> The State Department makes it clear that no laws or department > policies
> were broken as Tauscher endorsed the state senator in late March, > more than
> three months before she joined the department. She has not > participated in
> any campaign activities for him since she was formally nominated.
>
>
> http://www.nationaljournal.com/congressdai...090804_7112.php
>
> -----
> POLITICAL ROUNDUP: FINALLY, SESTAK WILL MAKE SPECTER CHALLENGE > OFFICIAL
>
> After saying for months that he will challenge Pennsylvania Democratic
> Sen. Arlen Specter, Rep. Joe Sestak plans to make it official today > with
> five scheduled campaign stops.
>
>
> http://www.nationaljournal.com/congressdai...090804_9359.php
>
> -----
> POLITICAL ROUNDUP: DEM LEAVES, GOP ENTERS RACE FOR KIRK SEAT IN ILL.
>
> One Democrat dropped out of the race Friday to succeed Illinois GOP > Rep.
> Mark Kirk, who is running for the Senate, but another Republican > says he
> may soon join in.
>
> "While I am grateful for the encouragement I have received to run for
> Congress, I feel an obligation to continue working to address the > enormous
> challenges our state is confronting," said Democratic state Sen. > Michael
> Bond.
>
> On the Republican side, Winnetka attorney Bill Cadigan said he may > enter
> the race.
>
>
> http://www.nationaljournal.com/congressdai...090804_2742.php
>
> -----
> POLITICAL ROUNDUP: GOP RACE FOR DEAL SEAT IN GEORGIA GETS ONE MORE
>
> Republican state Sen. Lee Hawkins Friday formally entered a crowded > race
> to succeed GOP Rep. Nathan Deal, who is running for governor, saying > he
> felt compelled to run because of federal efforts to overhaul health > care,
> the Gainesville Times reported.
>
> Hawkins, a dentist, joins Republicans former Transportation Board > Chairman
> Mike Evans, former state Senate Majority Leader Bill Stephens, state > Rep.
> Tom Graves, businessman Jeremy Jones and Whitfield County > Commissioner Mike
> Cowan.
>
> No Democrats have announced, but there is an independent candidate.
>
>
> http://www.nationaljournal.com/congressdai...090804_9743.php
>
> -----
> HILL BRIEFS: KEY LAWMAKERS PRESS FOR NATO HELP IN AFGHANISTAN
>
> Four senior House Democrats are imploring Gen. Stanley McChrystal, the
> military's top commander in Afghanistan, to tap NATO troops to help > Afghan
> security forces provide security during upcoming presidential and
> provincial council elections.
>
> In Friday's letter, the lawmakers said they were concerned about media
> reports that due to fighting, the Afghan government may close several
> polling places in predominately Pashtun areas -- a move that, they > wrote,
> "may negatively affect the legitimacy of the election and place some
> candidates at a disadvantage."
>
> Signatories included House Armed Services Chairman Ike Skelton, > Foreign
> Affairs Chairman Howard Berman, Armed Services Personnel Subcommittee
> Chairwoman Susan Davis, D-Calif., and Homeland Security Intelligence
> Subcommittee Chairwoman Jane Harman, D-Calif.
>
> "We believe that the sooner the Afghan population gains confidence in
> their government the sooner American forces will be able to return > home,"
> the lawmakers wrote. "Ensuring the legitimacy of this election is
> fundamental to achieving this goal."
>
>
> http://www.nationaljournal.com/congressdai...090804_8183.php
>
> -----
> HILL BRIEFS: JUDICIARY PANEL SETS VOTE ON NOMINEE FOR PTO DIRECTOR
>
> President Obama's pick to head the Patent and Trademark Office could > be
> confirmed before the August recess.
>
> Senate Judiciary Chairman Patrick Leahy has scheduled a Thursday > morning
> business meeting for his panel to vote on IBM Assistant General > Counsel
> David Kappos, tapped by Obama in June to become PTO director and
> undersecretary for intellectual property at the Commerce Department.
>
> The committee, which held Kappos' confirmation hearing Wednesday, is > also
> scheduled to consider three other nominees. If the nomination is > approved
> by the Judiciary Committee, Leahy would have to work with Senate > leaders to
> find time for a floor vote before they leave town Friday.
>
>
> http://www.nationaljournal.com/congressdai...090804_3470.php
>
> -----
> HILL BRIEFS: DODD SAYS CANCER DIAGNOSIS SHOWS NEED FOR REFORM BILL
>
> Sen. Christopher Dodd, D-Conn., told small-business owners in his home
> state Monday that when he learned this summer he has prostate > cancer, it
> made him realize even more the urgent need for every American to have
> health insurance.
>
> "I didn't wake up the morning of June 19th -- when I found out I had
> prostate cancer -- and worry about whether or not I have a > healthcare plan
> or whether I would get access to good care," Dodd said at an event in
> Hartford, Conn., "I want every American to wake up with that same > sense of
> security."
>
> Dodd joked that he has the best-known prostate in America. He > declined to
> offer specifics on when he is slated to undergo surgery, saying only > that
> it will be "taken care of" this month. He made the diagnosis public > last
> week.
>
> Dodd has been leading the Senate Health, Education, Labor and Pensions
> Committee's work on a healthcare reform bill this year while HELP > Chairman
> Edward Kennedy has been battling brain cancer.
>
>
> http://www.nationaljournal.com/congressdai...090804_9183.php
>
> -----
> HILL BRIEFS: U.N. GROUP: PROBE NEEDED INTO U.S. RENDITION FLIGHTS
>
> A United Nations working group Monday urged Congress to investigate
> whether the U.S. government used private contractors to secretly > transport
> terror suspects to clandestine prisons.
>
> The group said it has collected "worrying information" about companies
> being involved in rendition flights, but provided no other details > during a
> news conference held to discuss the conclusion of a two-week visit > to the
> United States.
>
> Employing contractors for such sensitive and classified work can > undermine
> accountability for those operations, the group said.
>
> Shaista Shameem, the group's chairwoman, said the panel is awaiting
> further details, but wants Congress to take the lead. "The evidence > is what
> we're waiting for," she said. "But this is something that we also want
> Congress to launch an investigation into. It's not something that we > could
> delve into during the limited time that we had here."
>
> Under the rendition program, suspected terrorists are moved from one
> country to another without formal extradition proceedings. The U.S.
> government has insisted it does not move prisoners to third countries
> without assurances they will not be tortured.
>
>
> http://www.nationaljournal.com/congressdai...090804_1424.php
>
> -----
> HILL BRIEFS: TOP CYBERSECURITY ADVISER ANNOUNCES PLANS TO LEAVE
>
> Melissa Hathaway said Monday she will resign as top cybersecurity > adviser
> to the director of national intelligence. Hathaway, the main author > of the
> Obama administration's 60-day review of the government's cybersecurity
> posture, did not give a reason for her decision to leave Aug. 21, a
> National Security Council spokesman said.
>
> "We are grateful for her dedicated service and for the significant
> progress she and her team have made on our national cybersecurity
> strategy," the NSC official said.
>
> Hathaway was a senior adviser to former Director of National > Intelligence
> Mike McConnell in the Bush administration and held the same post under
> Dennis Blair in the current White House.
>
>
> http://www.nationaljournal.com/congressdai...090804_3268.php
>
> -----
> HILL BRIEFS: NEARLY 700 POST OFFICES TARGETED FOR CUTBACKS
>
> Faced with a $7 billion deficit, the U.S. Postal Service released a > list
> Monday showing nearly 700 post offices that could be closed or > consolidated
> in the next fiscal year, which starts Oct. 1.
>
> The list was sent to the independent Postal Regulatory Commission for
> review, and can be viewed at the commission's Web site: http://www.prc.gov> .
>
> Another 3,200 stations and branches will be evaluated for customer > access,
> service standards, cost savings, impact on employees, environmental > impact,
> real estate values and long-term needs, the Postal Service said.
>
> There are 32,741 post offices nationwide.
>
>
> http://www.nationaljournal.com/congressdai...090804_5973.php
>
> -----
> HEALTH: THE ENERGY & COMMERCE COMMITTEE'S DISSENTING DEMOCRATS
>
> A handful of Democrats on the House Energy and Commerce Committee > voted
> "no" on one or more of four key votes in last Friday's markup of > healthcare
> legislation. Five Democrats voted against final passage of the bill. > Those
> members are displayed below in red and are listed from left to right > by
> seniority on the committee.
>
>
> http://www.nationaljournal.com/congressdai...090804_7543.php

[Snuffysmith]

> CongressDaily PM for Tuesday, Aug. 4, 2009
>
> --------------------
> CONTENTS
>
> FINANCE: SENATORS HINT AT MORE REGULATORY CONSOLIDATION
> By Bill Swindell
>
>
> Against a backdrop of agency heads fighting to protect their turf, > some
> key Senate Banking Committee members today raised the specter of even
> greater consolidation among federal banking regulators than has been
> proposed by the Obama administration.
>
> Banking Chairman Christopher Dodd said during a hearing that Obama's
> banking consolidation plan was "a thoughtful proposal but I wonder > if it is
> the right prescription."
>
> For example, Dodd said he wonders if the country really needs three
> federal agencies to regulate banks as called for under the Obama plan,
> which would consolidate the Office of Thrift Supervision and the > Office of
> the Comptroller of the Currency into a new National Bank Supervisor > but
> does not go as far as a single national regulator as some critics > wanted.
>
> The plan also would continue to leave supervision of state banks to > the
> FDIC and the Federal Reserve, whose role would be strengthened to > supervise
> bank holding companies.
>
> "There are reasons for one strong, powerful and efficient > regulator," said
> Sen. Charles Schumer, D-N.Y. "I think more people who are objective, > who
> don't have any turf considerations ... tend to think that should > happen in
> the banking area."
>
> Schumer noted that further consolidation could prevent charter > shopping,
> conflicts between agencies and eliminate gaps in supervision.
>
> FDIC Chairwoman Sheila Bair testified against a single regulator, > noting
> that community banks would suffer because such a system would focus on
> larger banks. She added that it could place at risk the deposit > insurance
> system.
>
> "We do not see merit or wisdom in consolidating all federal banking
> supervision. The risk of weak or misdirected regulation would be
> exacerbated by a single federal regulator that embarked on a wrong > policy
> course," Bair said.
>
> But while limited in scope, the Obama plan could be the high-water > mark
> for consolidation efforts as Congress attempts to revamp the nation's
> financial regulatory system.
>
> Other parts of the consolidation plan have encountered some opposition
> such as provisions to eliminate the thrift charter and make > industrial loan
> companies subject to the Bank Holding Company Act, which is a line > in the
> sand for Sen. Robert Bennett, R-Utah, whose state is home to many of > those
> companies.
>
> The regulators have been at odds with two key provisions in the Obama
> plan, one to make the Federal Reserve the top regulator over large
> financial firms whose failure could imperil the economy and another to
> strip away consumer protection authority from banking regulators and > place
> that into a proposed Consumer Financial Protection Agency.
>
> Treasury Secretary Geithner called regulators to a Friday meeting to
> sternly urge them to get on the same page, according to a Wall Street
> Journal report. Sen. Jim Bunning, R-Ky., joked that Geithner wanted > to call
> them in to "kiss the ring."
>
> Under questioning by Sen. Bob Corker, R-Tenn., Comptroller of the > Currency
> John Dugan admitted that it "was a candid conversation."
>
> Banking ranking member Richard Shelby urged the regulators to keep up
> their independence. "I hope you don't quit," he said. "Ultimately, > it is
> going to be Congress that is going to set the tone."
>
>
> http://www.nationaljournal.com/congressdai...090804_6148.php
>
> -----
> WHITE HOUSE: OBAMA LOBBIES FOR 'CLUNKERS,' HEALTH BILLS
> By George E. Condon Jr.
>
>
> President Obama tried today to rally his troops to rescue two troubled
> programs, telling Democratic senators of the importance of > delivering on
> health care, "Cash for Clunkers" and other items on the party's > crowded
> agenda.
>
> White House Press Secretary Robert Gibbs said health care and the > economy
> "will be at the forefront of the discussion," which took place at > the White
> House this afternoon in lieu of the Democrats' weekly policy > luncheon at
> the Capitol.
>
> The lunch, which coincided with Obama's 48th birthday, was attended > by all
> but three Democratic senators and by the lone independent who > caucuses with
> the majority, Sen. Bernie Sanders of Vermont.
>
> Obama wants the Senate to follow the House's lead and approve > transferring
> $2 billion in economic stimulus money to the Clunkers program, which > was so
> popular it ran out of money in its first week.
>
> Gibbs, citing administration figures, said newer vehicles purchased to
> replace the clunkers would provide a 61 percent increase in fuel > mileage.
> The program "makes a big difference for our energy security and for > our
> environment" and helps struggling automakers, Gibbs said.
>
> After the meeting, Senate Majority Leader Reid said money for the > program
> would be provided "before we leave here" this week.
>
> The president said he also planned to "buck up" Congress to make tough
> decisions on healthcare reform. The meeting came as the White House
> criticized some strident protesters turning up the heat on Democratic
> lawmakers at town hall meetings focusing on health care.
>
> Gibbs suggested some of the protests came from "manufactured anger" > from
> Republicans sent to districts. Some of the same faces are turning up > in
> multiple districts, he said, much the way what he called "the Brooks
> Brothers Brigade" of well-dressed young Republicans protested the > Florida
> recount after the 2000 presidential election.
>
> The health protesters "appear to have rented a similar bus and are
> appearing together at town hall meetings across the country," Gibbs > said.
>
> Reid said there is "absolute unity" in the caucus for healthcare > reform
> and said the legislation would be passed despite what he called "loud,
> shrill voices" being heard at some town halls.
>
> The only Democrats expected to miss the White House lunch were Sens.
> Edward Kennedy of Massachusetts and Robert Byrd of West Virginia, > who are
> ill, and Barbara Mikulski of Maryland, who recently broke her ankle.
>
>
> http://www.nationaljournal.com/congressdai...090804_6359.php
>
> -----
> HEALTH: IGNAGNI BLAMES DEMS FOR DEMONIZING INSURERS
> By Kasie Hunt, with Carrie Dann and Billy House contributing
>
>
> Health insurers are pushing back against increasingly fiery rhetoric > from
> some Democrats accusing insurance companies of blocking health reform.
>
> "At this point in the summer of 2009 the country should be in the > midst of
> a transformative national conversation about health reform," Karen > Ignagni,
> president of America's Health Insurance Plans, said. "Instead, a > campaign
> has been launched to demonize health plans."
>
> Insurers back a series of regulatory reforms that would end > exclusions for
> pre-existing conditions, eliminate ratings based on gender and other
> factors, and reduce premium growth rates.
>
> But they oppose including a public option in an overall package. "The
> almost singular focus on the issue of whether we should have a > government
> program or not, and the fact that that has become a litmus test for > reform,
> is crowding out the very significant consensus that exists," Ignagni > said.
>
> Ignagni said the Obama administration is perpetuating "politics as > usual"
> despite campaign promises to change how Washington works. "This is a
> playbook of consultants, not consensus. Attacking our community will > not
> get anyone covered," she said.
>
> Ignagni was responding to Democrats' recent effort to focus public > anger
> on insurance companies to increase support for health reform. > President
> Obama has begun using the phrase "health insurance reform" when > discussing
> his health goals, and House Speaker Pelosi told members of the > Democratic
> Caucus to focus blame on insurance companies when speaking to > constituents
> over the August recess.
>
> "They are the villains in this," Pelosi said last week of insurance
> companies. "And especially if you're talking about a public option, > because
> that is where the insurance companies are making their attack."
>
> In related news, Organizing for America, an offshoot of the Democratic
> National Committee, will air radio ads to thank 19 members, many of > them
> Blue Dog Coalition members, for standing up to "lobbyists [who] are
> fighting tooth and nail to stop reform and protect the status quo." > Those
> lawmakers are among the 60 being targeted by a radio campaign > launched last
> week by the Republican National Committee.
>
> Countering that push, the conservative Club for Growth today > announced a
> $1.2 million ad campaign in Nevada, Arkansas, Colorado and North > Dakota,
> warning that Democrats' plans would place caps on spending for end-> of-life
> care. The ads will continue through the August recess.
>
> Ignagni said AHIP did not intend to fundamentally change its plans but
> would continue airing a positive TV ad it went up with two weeks > ago. She
> said the group will try to communicate to average Americans that > insurance
> plans favor comprehensive health reform and have been trying to > promote a
> bipartisan consensus.
>
> But while insurers have been "good-faith participants" in the > process, she
> added, "that didn't mean that we would sit at any table in silence > when
> confronted with proposals we knew to be flawed."
>
> Insurers' support could hinge on whether the bill requires > individuals to
> purchase health insurance, a provision included in all three > versions of
> the House bills and in the Senate Health, Education, Labor and > Pensions
> Committee proposal. The Senate Finance Committee is negotiating but is
> likely to include that provision.
>
> Ignagni said the regulatory reforms that AHIP backs will only work if
> health reform includes an individual mandate. "The record is replete > with
> failures of not coupling the two together," she said.
>
>
> http://www.nationaljournal.com/congressdai...090804_8377.php
>
> -----
> HEALTH: PROGRESSIVES TELL PELOSI OPPOSITION NO PLOY
> By Billy House
>
>
> House liberals today took exception to Speaker Pelosi's suggestion > that
> they would ultimately support a public option plan they argue is too > weak
> if it is part of a final healthcare reform bill.
>
> In a letter today from the Congressional Progressive Caucus, Reps. > Lynn
> Woolsey, D-Calif., and Raul Grijalva, D-Ariz., told Pelosi that > members of
> the group "stand solidly" behind their position.
>
> "We want to assure you that our continued support is contingent on a
> robust public plan, similar to what was reported out of the > Committees on
> Ways and Means and Education and Labor," the co-chairmen of the
> progressives wrote.
>
> The lawmakers called for a restoration of subsidies in the final bill
> "because without these subsidies, health insurance access for many > low- and
> middle-income families will be effectively cut off."
>
> Without those provisions, Woolsey and Grijalva concluded, "we will > oppose
> the bill."
>
> At issue is the deal struck last week with members of the Blue Dog
> Coalition on the Energy and Commerce Committee that sparked anger from
> progressives and other House liberals.
>
> Woolsey, Grijalva and members of the Congressional Black Caucus,
> Congressional Hispanic Caucus and the Congressional Asian Pacific > American
> Caucus have all promised to vote against a bill that includes a > weakened
> public option.
>
> In a roundtable discussion last week, Pelosi laughed off the idea that
> liberals would allow a health insurance bill to die because of their
> unhappiness with one provision.
>
> "Are you asking me: 'Are the progressives going to take down > universal,
> quality, affordable health care for all Americans?'" asked Pelosi. > "I don't
> think so."
>
> But in their letter today, Woolsey and Grijalva advise Pelosi her > comments
> are "most concerning" to them, especially given that 60 House > members from
> the Congressional Progressive Caucus and other groups had voiced > such clear
> opposition to the Energy and Commerce language.
>
> Pelosi spokesman Brendan Daly sidestepped the criticism, saying the
> progressive group "continues to play a major role in shaping [health]
> legislation, which the speaker agrees must include a vigorous public
> option."
>
>
> http://www.nationaljournal.com/congressdai...090804_5173.php
>
> -----
> DEFENSE: COMMITTEE BACKS MCHUGH FOR ARMY POST
> By Megan Scully
>
>
> The Senate Armed Services Committee today approved the nomination of > Rep.
> John McHugh, R-N.Y., to be Army secretary, setting up his expected
> confirmation by the full Senate by the end of the week.
>
> McHugh's approval, on a voice vote, comes less than a week after a
> relatively easy confirmation hearing during which lawmakers from > both sides
> of the aisle lauded his 16-year career in the House.
>
> McHugh, whose upstate New York district includes Fort Drum, home of > the
> Army's storied 10th Mountain Division, served as the top Republican > on the
> House Armed Services Committee until June, when he resigned from the > panel
> after accepting President Obama's offer of the Army leadership post.
>
> At the time, McHugh said he was giving up his seat "in fairness to > both
> sides [of the aisle] and certainly my side." As the House committee
> prepared to mark up the FY10 defense authorization bill, McHugh > added that
> he was concerned people "might view me as conflicted."
>
> Before becoming ranking member of the full committee in January, > McHugh
> served for several years as the top Republican on the personnel
> subcommittee.
>
> Senate Armed Services ranking member John McCain said last week that
> McHugh's years on House Armed Services make him "uniquely qualified" > to
> lead the Army.
>
> McCain also grilled the nominee over his acceptance of $160,000 in
> campaign contributions from individuals associated with PMA Group, a
> now-defunct defense lobbying firm under federal investigation for > possible
> violations of campaign finance laws.
>
> McHugh stressed that he never sought an earmark for a PMA client in > return
> for a campaign contribution.
>
> "I've tried to do the best job I could to provide projects that > benefited
> my district and equally benefited the military," McHugh said.
>
> Also today, the Senate committee approved the following nominees: > Joseph
> Westphal to be undersecretary of the Army; Juan Garcia to be Navy > assistant
> secretary for manpower and reserve affairs; and J. Michael Gilmore > to be
> the Pentagon's director of operational test and evaluation.
>
>
> http://www.nationaljournal.com/congressdai...090804_3016.php
>
> -----
> APPROPRIATIONS: SENATE NEARS PASSAGE OF AG SPENDING BILL
> By Humberto Sanchez
>
>
> The Senate today inched toward completion of the FY10 Agriculture
> Appropriations bill, defeating two amendments offered by Sen. John > McCain,
> R-Ariz., that would have cut funding for members' projects.
>
> On a 70-27 vote, the Senate defeated a McCain measure to eliminate the
> USDA's watershed and flood prevention operations program, also known > as the
> small watersheds program. It would get $24.3 million in the bill, > including
> $16.5 million in earmarks.
>
> McCain called the spending a "perfect example of how reckless > earmarking
> can devastate a well-intentioned government program," noting that > the Obama
> administration and the three previous administrations have all > targeted the
> program for termination, only to have lawmakers revive it.
>
> He cited OMB and Congressional Research Service reports showing a > very low
> economic return for the program. Senate Agriculture Appropriations
> Subcommittee Chairman Herb Kohl, D-Wis., countered that it saves 90 > million
> tons of soil from erosion a year.
>
> The Senate also defeated by voice vote another McCain amendment that > would
> have prohibited funding of a $250,000 earmark for the Iowa Vitality > Center
> at Iowa State University.
>
> The Senate is expected to finish work later today on the spending > bill,
> which includes $23.7 billion in discretionary funding -- about $2.3 > billion
> more than FY09.
>
> Before doing so, the Senate will vote on three amendments offered by > Sen.
> Tom Coburn, R-Okla., including one to eliminate funding for digital
> conversion efforts at USDA that he said duplicate other efforts.
>
> The second amendment would strike a provision providing $3 million for
> specialty cheeses in Vermont and Wisconsin, while the third seeks to
> eliminate about $125 million in stimulus funds for the Rural
> Business-Cooperative Service account.
>
>
> http://www.nationaljournal.com/congressdai...090804_6904.php
>
> -----
> HOMELAND SECURITY: COLLINS SEEKS INFO ON HATHAWAY DEPARTURE
> By Andrew Noyes
>
>
> Senate Homeland Security and Governmental Affairs ranking member Susan
> Collins has requested a copy of the resignation letter of Melissa > Hathaway,
> senior cybersecurity adviser to Director of National Intelligence > Dennis
> Blair, and asked her staff to interview her about why she is leaving > the
> Obama administration.
>
> Hathaway, who began working for Director of National Intelligence Mike
> McConnell in 2007, is the chief architect of the Obama > administration's
> review of the government's ability to identify and thwart high-tech
> attacks. She announced Monday she would leave her post Aug. 21, and > in news
> reports she said she felt she was not in a strong enough position to > effect
> change.
>
> She was a potential candidate for a cybersecurity coordinator position
> that President Obama announced in May. He pledged to pick the > candidate,
> who would report jointly to the National Security Council and National
> Economic Council. Some speculated she would not have gotten the job > because
> of her ties to the Bush administration.
>
> Collins said she was alarmed by the departure of Hathaway, who helped
> shepherd a largely classified multibillion-dollar plan to secure > government
> IT networks.
>
> "She's extremely knowledgeable -- one of the most knowledgeable > people in
> the federal government," said Collins.
>
> Collins took issue with having another White House czar, who would > not be
> confirmed but wield great authority. The position "reduces > congressional
> oversight and undermines our ability to confirm individuals to > important
> policy posts," she said.
>
> Senate Intelligence Chairwoman Dianne Feinstein also weighed in, > saying
> she was sad to see Hathaway go, and she stressed the need to get a > cyber
> official in place quickly.
>
> In a statement, House Homeland Security Chairman Bennie Thompson > said he
> is troubled by "the apparent loss of momentum on cybersecurity, an > issue
> that is critical to our national and economic security." He added, > "We need
> to take this issue seriously - our adversaries certainly do."
>
> A National Security Council spokesman said Obama remains committed to
> finding the right person for the job, adding "a rigorous selection > process
> is well under way." He was unsure who would take over for Hathaway > in an
> acting capacity.
>
> Two potential frontrunners for the cyber coordinator position are > Howard
> Schmidt, former White House special adviser for cyberspace security, > and
> Frank Kramer, an assistant Defense secretary under President Bill > Clinton.
>
>
> http://www.nationaljournal.com/congressdai...090804_6701.php
>
> -----
> HOMELAND SECURITY: NAPOLITANO: CYBERSECURITY ISSUES UNRESOLVED
> By Chris Strohm
>
>
> Homeland Security Secretary Napolitano acknowledged today that her
> department is still exploring how best to coordinate the government's
> response to cybersecurity threats, saying several critical issues > remain
> unresolved, such as how to interact with the Defense Department and > work
> with private companies.
>
> "We need to be looking at [cybersecurity] not from a traditional
> standpoint of how we do law and order, but how we need to do it in a > new
> and evolving world," Napolitano said during the keynote speech at a
> cybersecurity conference hosted by the Secret Service.
>
> "We need to be thinking outside our traditional boxes. We need to be
> thinking ahead," Napolitano said, adding that her department was not
> properly organized to deal with cybersecurity when she took it over in
> January. "We need to be recruiting and training investigators who > only do
> this kind of work. That is where we are headed within the Department > of
> Homeland Security and, indeed, within the United States Secret > Service."
>
> She said the Obama administration is working through how the > department
> will interact with the Pentagon's new cyber command.
>
> "I'm going to be open to suggestions about how best we do that," she > said.
> "The obvious Washington way is to have some sort of joint committee or
> joint liaisons where some people, perhaps, are located on each side. > But
> there may be better ways and if you have a suggestion I'm open to > them but
> those are the kind of things we're looking at."
>
> At one point, she solicited recommendations on the issue from a > conference
> attendee. The attendee said the best way to interact would probably > be an
> integrated center. "That's what we're looking at," Napolitano said.
>
> But she quickly noted privacy concerns created by having the military
> involved in protecting U.S. civilian networks.
>
> "That's why I haven't really come to a conclusion about how do we > share
> without raising the specter that the Department of Defense is > somehow going
> to be spying on civilian computers in the United States," she said. > "That's
> what we're working our way through."
>
> She cited several other unresolved issues. "First of all, we need to
> confront how we really engage our partners. More than just having a
> conference, what are our actual plans for working together?" > Napolitano
> asked. "How are we going to share intelligence from the government > to the
> private sector and back in real time so that it is useful?"
>
> "How are we going to grow, recruit and retain experts or cyber > cops?" she
> added. "In other words, where are the personnel going to come from > who are
> going to help us in this effort?"
>
> Napolitano observed that the federal government does not have a major
> research and development program for civilian cybersecurity efforts. > She
> also noted that the department is seeking public recommendations on
> cybersecurity efforts through the Quadrennial Homeland Security > Review,
> which is due to Congress in December.
>
>
> http://www.nationaljournal.com/congressdai...090804_2134.php
>
> -----
> HILL BRIEFS: MCCONNELL SEES 'CLUNKERS' VOTE THIS WEEK
>
> Transportation. Senate Minority Leader McConnell today predicted a $2
> billion "cash for clunkers" extension will pass this week, while he > and
> Majority Leader Reid inch toward agreeing how the bill will come up > in a
> busy schedule. McConnell said he and Reid are discussing "the
> appropriateness" of some amendments Republicans want to offer. The two
> leaders are talking about a possible plan that allows votes on two
> amendments and the bill itself, he added. If any changes are made to > the
> House-passed bill, the extension would essentially remain dormant at > least
> until lawmakers return in September. But the debate is likely to > mirror
> what happened last week, when the House passed a fix to federal > highway
> coffers. Senate Democrats allowed four Republican amendments they knew
> would fail before approving the House bill unchanged. One of the > critics of
> the bill, Sen. Jim DeMint, R-S.C., said today he is not planning to > block
> the bill. "It's not my intent right now," DeMint said. "I just want > some
> debate and a vote. That's all we need."
>
>
> http://www.nationaljournal.com/congressdai...090804_9380.php
>
> -----
> HILL BRIEFS: LARSON UNDERGOES HEART VALVE REPLACEMENT
>
> House Leadership. House Democratic Caucus Chairman John Larson of
> Connecticut has undergone successful heart valve replacement > surgery. The
> elective surgery was conducted at Saint Francis Hospital in > Hartford, Conn.
> In a statement released today by the House Democratic Caucus, family
> spokesman Barry Feldman said: "The congressman is doing well and > resting
> now. He is expected to make a full recovery and will return to work > in the
> course of the next few weeks."
>
>
> http://www.nationaljournal.com/congressdai...090804_4123.php
>
> -----
> HILL BRIEFS: TREASURY FINDS HOMEOWNER AID LAGGING
>
> Finance. Bank of America and Wells Fargo got low marks today in the
> Treasury Department's first monthly report card on the Obama
> administration's plan to stem the foreclosure crisis. Although both > have
> received billions in federal assistance, Bank of America has > modified just
> 4 percent of its eligible loans, and Wells Fargo 6 percent, the > Associated
> Press reported. "We know we've fallen short of our customer service > goals
> in some cases," said Mike Heid, co-president of Wells Fargo's mortgage
> unit, in a statement. Other big banks did better, as JPMorgan Chase > & Co.
> modified 20 percent of eligible loans and Citigroup Inc. modified 15
> percent. According to the report, only 15 percent of the 2.7 million
> eligible homeowners have been offered assistance. "We think they > could have
> ramped up better, faster, more consistently and done a better job > serving
> borrowers and bringing stabilization to the broader mortgage markets > and
> economy," said Michael Barr, the Treasury Department's assistant > secretary
> for financial institutions. "We expect them to do more."
>
>
> http://www.nationaljournal.com/congressdai...090804_2544.php
>
> -----
> HILL BRIEFS: LAHOOD TAKES AIM AT CELL PHONES, TEXTING
>
> Transportation. Transportation Secretary LaHood today said he will > convene
> a summit of experts next month to figure out how to curb cell phone > use and
> texting by drivers, practices that studies, and a growing number of
> accidents, show can be deadly, the Associated Press reported. "When > we are
> done, I expect to have a list of concrete steps to announce," LaHood > said
> in a statement. "The bottom line is, we need to put an end to unsafe > cell
> phone use, typing on BlackBerrys and other activities that require > drivers
> to take their eyes off the road and their focus away from driving." > Senior
> transportation officials, safety advocates, law enforcement
> representatives, members of Congress and academics will be invited > to the
> summit, he said. Fourteen states and the District of Columbia have > passed
> laws making texting while driving illegal.
>
>
> http://www.nationaljournal.com/congressdai...090804_8788.php
>
> -----
> HILL BRIEFS: SIFMA HIRES BENTSEN TO HEAD D.C. OFFICE
>
> People. Former Rep. Ken Bentsen, D-Texas, has been named executive > vice
> president of public policy and advocacy for the Securities Industry > and
> Financial Markets Association and will lead its Washington, D.C., > office
> beginning next month, the group announced today. Bentsen has served as
> president and chief operating officer of the Equipment Leasing and > Finance
> Association since 2006. During his eight years in the House, Bentsen > served
> on the Financial Services Committee, where he worked on major > legislation
> such as the Sarbanes-Oxley Act, Gramm-Leach-Bliley Act, Terrorism Risk
> Insurance Act and the Commodities Futures Modernization Act. He left > the
> House in 2002 to make an ultimately unsuccessful run for the Senate. > Before
> getting elected to the House, Bentsen was an investment banker at a > major
> Wall Street firm and then a large regional firm. He is the nephew of > the
> late Sen. Lloyd Bentsen, D-Texas.
>
>
> http://www.nationaljournal.com/congressdai...090804_4728.php
>
> -----
> HILL BRIEFS: USDA: AVERAGE CHILD COSTS $221K
>
> Agriculture. A middle-income family can expect to spend more than > $220,000
> over the next 17 years to raise a child born in 2008, the USDA's > Center for
> Nutrition Policy and Promotion said in a report released today. The > annual
> report is used by courts and state governments to determine child > support
> guidelines and foster care payments. The report noted that family
> expenditures on a child vary with income. A family earning less than
> $56,870 per year can expect to spend a total of $159,870, in 2008 > dollars,
> on a child through high school. Parents with an income between > $56,870 and
> $98,470 can expect to spend $221,190, while a family earning more than
> $98,470 would spend $366,660. By comparison, a child born to a
> middle-income family in 1960 would have cost only $183,509 in 2008 > dollars.
>
>
> http://www.nationaljournal.com/congressdai...090804_3714.php
>
> -----
> HILL BRIEFS: TINKLENBERG PULLS OUT OF MINN. RACE
>
> House Races. Democrat Elwyn Tinklenberg withdrew as a potential > challenger
> to Rep. Michele Bachmann, R-Minn., today, saying a bruising primary > would
> make it harder to unseat the incumbent. "While the image of the next
> campaign against Michele Bachmann is certainly energizing, the path > to that
> campaign is becoming increasingly improbable," Tinklenberg said in a
> statement. "We are faced with the prospect of the next 13 months > being a
> battle among Democrats." State Sen. Tarryl Clark and Maureen Reed, > who ran
> for lieutenant governor as an independent in 2006, are also in the > race.
> Without Tinklenberg, who narrowly lost to Bachmann in 2008, Clark is > the
> presumptive frontrunner for the Democratic nomination.
>
>
> http://www.nationaljournal.com/congressdai...090804_6595.php
>
> -----
> HILL BRIEFS: CONWAY APOLOGIZES FOR REMARK
>
> Senate Races. Kentucky Democratic Attorney General Jack Conway > apologized
> today for using profanity at this weekend's Fancy Farm political > picnic,
> and acknowledged he misquoted former Democratic Sen. Wendell Ford > while
> doing so, the Lexington Herald-Leader reported. Conway campaign > consultant
> Mark Riddle said Conway had apologized to Ford and Fancy Farm > officials.
> Responding to hecklers at the event, Conway said he was quoting Ford > when
> he said he was a "tough son of a bitch," but Ford actually said he > was "one
> tough son of a gun." The campaign of Lt. Gov. Daniel Mongiardo, who is
> battling Conway for the Senate nomination, had called on Conway to
> apologize. The Fancy Farm picnic takes place on the grounds of a > Catholic
> church.
>
>
> http://www.nationaljournal.com/congressdai...090804_5571.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "Some of our colleagues say, 'Gee, I'm not in the room, I'm upset by
> that.' And I understand that frustration. But we're not the > deciders. ...
> Our colleagues will be the ones that offer amendments and vote, and
> ultimately decide what happens."
>
> -- Senate Budget Chairman Kent Conrad, on PBS' "The Charlie Rose Show"
> Monday, defending his role in the "Gang of Six" healthcare > negotiations on
> the Finance Committee.
>
>
> http://www.nationaljournal.com/congressdai...090804_5018.php
>

[Snuffysmith]

> CongressDaily PM for Monday, Aug. 10, 2009
>
> --------------------
> CONTENTS
>
> ENERGY: EFFORTS BEGIN TO RESTORE RENEWABLE FUNDS
> By Humberto Sanchez
>
>
> Senate Democrats and renewable energy advocates are looking at the > FY10
> Energy and Water Appropriations bill as a possible vehicle to > replenish $2
> billion in renewable energy loan guarantee funds from the stimulus > recently
> redirected to extend the "cash for clunkers" program.
>
> Senate Energy and Water Appropriations Subcommittee Chairman Byron > Dorgan,
> D-N.D., said last week his bill is the likely vehicle, but he added > that no
> decisions have yet been made to add it.
>
> "It's got to be put back," Dorgan said of the funds. "I don't know > exactly
> when, but we had a discussion about that at the White House ... They > have
> made a commitment to restore it."
>
> The next opportunity to replenish the funds will come when House and
> Senate negotiators meet next month to reconcile differences in their
> respective FY10 Energy and Water spending bills.
>
> The Senate passed its $34.3 billion Energy and Water bill late last > month,
> which includes $27.4 billion for the Energy Department, which > oversees the
> loan guarantee program. The House approved its $33.3 billion bill in > June,
> with $26.9 billion for Energy.
>
> Senate Energy and Natural Resources Chairman Jeff Bingaman and > Environment
> and Public Works Chairwoman Barbara Boxer have said they support > restoring
> the funding.
>
> Both the House and Senate last week approved legislation providing $2
> billion in additional funding for the clunkers program, which provides
> drivers a voucher of up to $4,500 to buy or lease a fuel-efficient > car if
> they trade in a less-efficient vehicle. The program, which has > proved to be
> very popular with consumers, ran through its initial $1 billion in > less
> than one week.
>
> In order to help ensure quick passage on both sides of the Capitol > -- and
> keep the program going -- lawmakers decided to use $2 billion from the
> stimulus as opposed to adding to the ballooning budget deficit.
>
> The funds came from a pool of $6 billion for loan guarantees to help
> finance renewable energy and grid upgrade projects.
>
> Matt Hartwig, a spokesman for the Renewable Fuels Association, said > the
> group is also looking to the FY10 Energy and Water spending bill as a
> possible vehicle to restore the loan guarantee funding.
>
> "To transition to this clean-energy economy that the president > wants, that
> the leadership in Congress want will require some investment from the
> federal government and that fund is an important piece of that > investment,
> so we certainly hope that Congress replenishes that fund so it can > be used
> as it was intended," he said.
>
> Republicans, who contend that the stimulus spent too much, are > likely to
> resist replacing the redirected funds.
>
> Senate Energy and Water Appropriations Subcommittee ranking member > Robert
> Bennett, R-Utah, said he would not support restoring the funds.
>
> "I don't want them to replenish it. They've got too much now," Bennett
> said last week.
>
>
> http://www.nationaljournal.com/congressdai...090810_8684.php
>
> -----
> IMMIGRATION: LEAHY FAULTS ADMINISTRATION ON REFUGEES
> By Chris Strohm
>
>
> Senate Judiciary Chairman Patrick Leahy is calling on the Obama
> administration to correct problems that have left thousands of > refugees and
> asylum seekers in the United States in legal limbo or in jail, > saying if
> action is not taken he is prepared to seek a legislative remedy.
>
> The Homeland Security Department, which includes U.S. Citizenship and
> Immigration Services, has been unable to provide permanent residence > status
> to more than 7,000 eligible refugees and asylum seekers, Leahy said > in a
> Senate floor speech last week.
>
> Leahy said the administration has been too slow to help foreigners who
> pose no threat but have been ensnarled by overly broad restrictions > under
> which they are classified as having given material support to > terrorists
> abroad. Refugees, in particular, have been incarcerated while > waiting to
> resolve their petitions for permanent residence.
>
> "As a result, those who bravely fought repressive governments in their
> home countries, and those who joined the United States in opposing > despots,
> can now be called terrorists and barred from protection in our > nation,"
> Leahy said.
>
> He cited an example of an Iraqi Kurd, a trusted U.S. military > translator
> who once served with the Kurdish Democratic Party in opposing Iraqi
> President Saddam Hussein. That translator had trouble obtaining a > green
> card "because he was deemed to have been part of a terrorist > organization,"
> he said.
>
> Leahy added that Congress gave the previous Bush administration > authority
> to relax the rules, but little was done to give waivers to those who
> legitimately deserved lawful permanent residence.
>
> "I call on President Obama to take the steps necessary to implement > the
> authority granted by Congress to protect bona fide refugees and > asylees,"
> he said.
>
> "I intend to work in earnest with the Obama administration to solve > this
> problem once and for all," Leahy added. "Should legislation be > necessary, I
> expect the administration and the agencies to work with me in a
> constructive manner to restore common sense and fairness to our > treatment
> of refugees and asylum seekers."
>
> Refugees are required to apply for permanent residence after a year of
> being admitted to the United States. But those without lawful status > after
> a year in the country risk being taken into custody by Homeland > Security's
> Immigration and Customs Enforcement unit and being put in detention
> facilities.
>
> "That's a significant problem," said Paul O'Dwyer, an immigration > attorney
> who chairs the refugee and asylum committee for the American > Immigration
> Lawyers Association.
>
> Immigration lawyers had hoped the Obama administration would not put
> refugees in detention after a year. "The fact that this is > continuing is
> problematic," O'Dwyer said.
>
> Those seeking asylum are not under a strict timeline to apply for > lawful
> status. But overly long security background checks can be > problematic for
> those who do, O'Dwyer added. He said the government should also waive
> adjustment fees for asylum seekers, which can cost families > thousands of
> dollars.
>
> Homeland Security spokeswoman Sara Kuban said more than 10,500 > individuals
> have been granted exemptions to a post-9/11 law barring green cards to
> anyone believed to have given material support to terrorist > organizations.
>
> "While the department views this achievement as significant, we also
> understand that a more efficient exemption authorization process > than the
> one that has been in place would reach greater numbers of deserving
> aliens," she added. "We are currently engaged with interagency > partners and
> other interested stakeholders to make needed reforms."
>
>
> http://www.nationaljournal.com/congressdai...090810_1619.php
>
> -----
> LOBBYING: RELIGIOUS GROUPS JOIN CHORUS ON HEALTH
> By Carrie Dann
>
>
> Vowing not to sit idly by in their pews this month, members of > religious
> organizations on both sides of the healthcare debate are raising their
> voices to weigh in on proposals to overhaul the healthcare system.
>
> A coalition of religious groups, including the faith-based community
> organizing network People Improving Communities Through Organizing > and the
> progressive Christian ministry Sojourners, announced today that > President
> Obama will participate in a conference call with Christian, Jewish and
> Islamic leaders and worshippers next week to discuss the "moral > imperative"
> of reforming the healthcare system.
>
> The multidenominational coalition of progressive religious groups > said it
> plans Tuesday to kick off a series of prayer rallies and other events
> targeting about 100 members of Congress in 18 states.
>
> But the coalition's "40 Days for Health Care Reform" drive - > complete with
> a new "five-figure" commercial airing on cable networks around the > country
> starting today - will meet counteroffensives by conservative religious
> groups who claim the Obama-backed healthcare overhaul would place > price
> tags on the lives of the ill and elderly and allow taxpayer-funded
> abortions.
>
> "In the last couple years, there's been a lot of support but not bills
> that have really resonated with our grassroots like this has," said
> Michelle Combs, a spokeswoman for the Christian Coalition of > America. "This
> issue has activated so many people."
>
> Members of the pro-reform faith coalition said today that, while > members
> of the religious community may disagree about abortion funding and > how it
> should be addressed in final legislation, the issue should not be > used by
> either side to derail the overall healthcare reform effort.
>
> "While we have differences on the issue of abortion, the faith > community
> is saying - those that are pro-life and pro-choice -- are saying that
> abortion must not be the occasion for scuttling, destroying or > sabotaging
> healthcare reform," said Rev. Jim Wallis, president of Sojourners.
>
> Meanwhile, the Christian Coalition has launched volunteer phone > banks and
> is actively encouraging members to attend their representatives' > town hall
> meetings throughout the August recess to urge defeat of the pending
> healthcare bills, the group's spokeswoman said.
>
> The Family Research Council, an offshoot of Rev. James Dobson's > Focus on
> the Family, is sending e-mail alerts to its members with suggested
> questions for those who attend town-hall meetings.
>
> "Will you agree to an iron-clad guarantee that this bill will not fund
> abortions, leave state abortion limits in place, and protect health > care
> providers from being forced to perform abortions?" says one of the > prepared
> questions.
>
> The conservative group is also airing ads in Alaska, Nebraska, > Louisiana,
> Arkansas and Pennsylvania.
>
> The flurry of faith-based activism comes as the White House > redoubled its
> efforts to dispel "wild rumors" about the president's plan by > creating a
> "Health Reform Reality Check" Web site featuring video blog entries > that
> star top administration officials.
>
> And Organizing for America, the Obama-inspired grassroots organizing > arm
> of the Democratic National Committee, is urging supporters to attend
> representatives' office hours in their home districts to show > support for
> members battered by rowdy disruptions at local events.
>
> Members of the religious coalition supporting Obama's efforts today
> derided healthcare opponents who aim to drown out debate by causing > the
> noisy - and, in some cases, violent - disturbances at town hall > meetings
> that have filled YouTube and cable news airwaves.
>
> "They're organized, and they really want to shut down democracy. We > can't
> let that happen," said Wallis. "The faith community is literally > going to
> stand in the way of those who want to stop the conversation."
>
>
> http://www.nationaljournal.com/congressdai...090810_1534.php
>
> -----
> HEALTH: SENATE DEMS FOCUS RECESS TALK ON INSURERS
> By Dan Friedman
>
>
> While opponents of healthcare legislation cause a furor by trying to
> disrupt local gatherings attended by Democratic lawmakers, Senate > Democrats
> are pushing back by excoriating insurance companies.
>
> Tracking recent rhetoric by top Democrats and ads by left-leaning
> organizations, talking points distributed to Senate Democrats cast > insurers
> as villains who oppose reform out of greed.
>
> "Insurance companies put profits over people. They retroactively > remove
> your coverage after you become sick, consider c-sections a preexisting
> condition and use a lack of transparency to fleece consumers to make > record
> profits," the material states. "The Senate health insurance reform > reverses
> the insurance companies' misplaced priorities and puts the consumer > first."
>
> The talking points say "insurers pull the plug when patients need it
> most," by canceling coverage retroactively. They state that "insurance
> companies engage in fraudulent activity" by ignoring consumer > protections.
> The packet cites a series of reports on insurers fined for ignoring or
> underpaying claims.
>
> The packets are titled "Responsible Reform for the Middle Class," and
> focus heavily on the personal benefits of healthcare reform for > people who
> already have coverage.
>
> Democrats have said their recess messaging will focus on winning > over such
> constituents, who Republicans hope are becoming worried about the
> consequences of reform bills.
>
> "There's a straightforward challenge, and that is closing the sale > with
> the insured population," said Sen. Ron Wyden, D-Ore.
>
> The packets urge lawmakers to point out that failure to pass a bill > would
> cause insurance premiums and prescription drug costs to soar, and that
> small businesses in particular would face rising premiums without > reform.
>
> The talking points defend both a public plan option and a "co-op"
> alternative to a public plan eyed by the Senate Finance Committee, a > sign
> the Senate's Democratic leadership is ready to accept a bill with
> member-controlled co-op in place of a government-run option.
>
> Democrats are encouraged to argue that Americans will be able to keep
> existing coverage and that the bill will not increase the deficit. The
> talking points counter frequent GOP attacks, such as claims that the > bill
> will provide insurance coverage for illegal immigrants.
>
>
> http://www.nationaljournal.com/congressdai...090810_5277.php
>
> -----
> HEALTH: CBO EXPLAINS PREVENTION SCORING APPROACH
> By Anna Edney
>
>
> Often vilified by lawmakers crafting healthcare overhaul legislation > for
> not attaching much-needed savings to prevention and wellness > efforts, CBO
> explained late last week why such undertakings would increase federal
> spending rather than cut costs as Democratic leaders have insisted.
>
> CBO Director Elmendorf admitted in a Friday letter to Rep. Nathan > Deal,
> R-Ga., that while it seems counterintuitive to anticipate that > preventing
> disease would be more costly than treating illness, prevention > efforts such
> as cancer screening do not always target the right patients.
>
> "When analyzing the effects of preventive care on total spending for
> health care, it is important to recognize that doctors do not know
> beforehand which patients are going to develop costly illnesses," > Elmendorf
> wrote. "To avert one case of acute illness, it is usually necessary to
> provide preventive care to many patients, most of whom would not have
> suffered that illness anyway."
>
> House Speaker Pelosi said last month prevention would yield savings
> despite CBO's estimates and allow lawmakers to use taxes on the > wealthy
> established in House Democrats' overhaul bill to bring down the > deficit
> rather than pay for the overhaul.
>
> Elmendorf pointed to a New England Journal of Medicine study that > examined
> prevention and found that 20 percent of the services save money > while the
> rest increase costs.
>
> He noted that just because preventive services might increase > spending,
> conventional wisdom does not hinder them from being deemed cost > effective,
> meaning that prevention could provide benefits that justify the costs.
>
> Prevention efforts also increase lifespan, Elmendorf wrote, which can
> increase spending on Social Security and Medicare as well.
>
> Elmendorf also said scorekeeping rules hinder CBO from assigning > savings
> to preventive services, such as those that could be realized in > mandatory
> Medicare and Medicaid spending as a result of discretionary > appropriations
> for prevention.
>
> "The rules were adopted in part to avoid situations in which hoped-> for,
> but quite uncertain, savings are used to offset near-term, certain > spending
> increases or revenue decreases in the same legislation," he wrote.
>
> The rules were adopted as part of the Balanced Budget Act of 1997 > and are
> updated occasionally by a group made up of the Senate and House Budget
> committees, CBO and OMB, according to the letter.
>
>
> http://www.nationaljournal.com/congressdai...090810_8107.php
>
> -----
> IMMIGRATION: OBAMA: BORDER BILL IS ON TABLE FOR 2010
> By George E. Condon Jr.
>
>
> President Obama today made his strongest commitment yet to pushing
> comprehensive immigration legislation through Congress after > healthcare,
> climate change and financial regulation bills are approved.
>
> In remarks in Guadalajara, Mexico, at the conclusion of the annual > summit
> of leaders from the United States, Mexico and Canada, Obama said > talks with
> congressional leaders have started on the topic, and he wants to > pick up
> the pace by the end of the year.
>
> He predicted a bruising battle and dismissed the suggestion that his
> waning popularity might affect the timing of taking on such a divisive
> issue.
>
> "Am I going to be able to snap my fingers and get this done? No," he > said.
> "This is going to be difficult. It is going to require bipartisan
> cooperation. There are going to be demagogues out there who try to > suggest
> that any form of pathway for legalization for those who are already > in the
> United States is unacceptable."
>
> While major, time-consuming bills are lined up ahead of immigration, > he
> said he thought voting on an immigration bill next year was possible.
>
> "I would anticipate that before the year is out we will have draft
> legislation along with sponsors in the House and the Senate who are > ready
> to move this forward," Obama said. "and when we come back next year > that we
> should be in position to start acting."
>
> Many people on both sides of the issue play down the chances of > passing a
> bill in 2010, since contentious issues often are shunted aside > during an
> election year.
>
>
> http://www.nationaljournal.com/congressdai...090810_2873.php
>
> -----
> EDUCATION: SCHOOLS GET ACTIVE IN STUDENT LOAN DEBATE
> By Kasie Hunt
>
>
> Colleges and universities are stepping up opposition to a House-backed
> plan to end a massive federal student loan program and replace it with
> direct federal lending.
>
> While advocates say the switch to direct lending from the Federal > Family
> Education Loan Program is easy, "nothing could be further from the > truth,"
> Sarah Bauder, financial aid director at the University of Maryland at
> College Park, wrote in a letter to lawmakers in July. "The perils > and costs
> associated with moving entirely to one loan system for students > needs to be
> re-evaluated."
>
> A group of financial aid representatives from a variety of > universities,
> dubbed the "Friday the 13th Group," issued a framework for maintaining
> FFEL.
>
> The group warns about "unintended consequences that come from basing
> reform on current political pressures without sufficient > consideration of
> what best serves the interests of all stakeholders -- students, > parents,
> schools, and taxpayers."
>
> Signing the letter were financial aid administrators from 14 schools,
> including the University of Notre Dame and the University of > California at
> Los Angeles, although the officials said they did not speak on > behalf of
> their universities.
>
> Ending FFEL is a major priority for President Obama and is strongly > backed
> by Education Secretary Duncan. The plan was approved by the House > Education
> and Labor Committee earlier this summer. It would instead originate > all
> federally backed student loans through the Education Department's > Direct
> Loan Program.
>
> Reluctance from universities adds fire to serious opposition from > student
> lenders across the country, many of which rely heavily on business
> generated from government-backed loans.
>
> The bill would restrict the role of loan giants like Sallie Mae and > the
> Nebraska-based Nelnet to servicing loans after they are made by the
> Education Department.
>
> Obama proposed the change in his FY10 budget, and CBO estimated it > could
> save as much as $80 billion over 10 years. The plan is cheaper > because it
> ends subsidies to student lenders and because the government can > borrow
> money more cheaply than private entities. Under the House bill, $43 > million
> of the savings would be used to increase Pell Grants.
>
> There are some questions about how much the bill would save. Senate > Budget
> ranking member Judd Gregg requested CBO use a different loan-valuation
> process under the Federal Credit Reform Act of 1990, which cut the
> estimated savings to $47 billion.
>
> Still, the Education Department is already working with schools to > prepare
> for the switch, and House Democrats, led by Education and Labor > Chairman
> George Miller, say universities will have plenty of support to make > the
> transition.
>
> "We have full confidence that, if our bill gets enacted, the > Department of
> Education will continue to work closely with colleges and > universities to
> provide all the support they need to switch to the Direct Loan > program in
> as expeditious and economical a way as possible," said Rachel > Racusen, a
> Miller spokeswoman.
>
> An array of university associations have signed on to back the Miller
> bill, including the American Association of Community Colleges, the
> American Association of School Administrators, the American > Association of
> State Colleges and Universities, the Association of Jesuit Colleges > and
> Universities and the Association of Public and Land-grant > Universities,
> among others.
>
> Miller's bill still could face strong opposition in the Senate, where
> home-state concerns could derail the legislation. Sen. Ben Nelson, D-> Neb.,
> is concerned about the bill's impact on Nelnet, while Senate Budget
> Chairman Kent Conrad has said he faces a conflict because the Bank > of North
> Dakota is a major servicer of federally backed student loans.
>
>
> http://www.nationaljournal.com/congressdai...090810_6101.php
>
> -----
> HILL BRIEFS: FCC BEGINS ANNUAL BROADBAND REVIEW
>
> Telecommunications. The FCC has launched its sixth inquiry into the > state
> of broadband in America, an effort that takes on added significance > this
> time around because of the agency's current effort to devise a > sweeping
> national broadband plan. The inquiry will culminate with a Feb. 3 > report to
> Congress, to be followed by a report to lawmakers due Feb. 17 > outlining the
> broadband plan. The sixth inquiry "is another step in the ongoing,
> agencywide drive toward developing a national broadband plan by > February
> 2010," FCC Chairman Julius Genachowski said in a statement issued late
> Friday.
>
>
> http://www.nationaljournal.com/congressdai...090810_8633.php
>
> -----
> POLITICAL ROUNDUP: CHICAGO URBAN LEAGUE PRES. RUNNING FOR SENATE
>
> Illinois. Chicago Urban League President Cheryle Jackson, a > Democrat, said
> she will announce her intention to run for the seat held by > Democratic Sen.
> Roland Burris, the Associated Press reported. Jackson says a formal
> announcement will be made in September. Jackson will face state > Treasurer
> Alexi Giannoulias in the primary. Rep. Mark Kirk is running on the
> Republican side. Burris today said he might still run for re-> election next
> year, even after ruling it out. "You never say never in this > business,"
> Burris said during an interview on ABC News. "What I'm still hearing,"
> Burris said, is "people from all over the country, and they are > saying,
> 'Don't give up that seat.'" Burris was appointed to the seat late > last year
> by former Democratic Gov. Rod Blagojevich.
>
>
> http://www.nationaljournal.com/congressdai...090810_1820.php
>
> -----
> POLITICAL ROUNDUP: DANNY TARKANIAN TO CHALLENGE REID
>
> Nevada. Real estate developer Danny Tarkanian, a Republican, announced
> late Friday he would seek the seat held by Senate Majority Leader > Reid, the
> Las Vegas Review-Journal reported. "I'm very concerned about the > direction
> Senator Reid is taking us in Washington," said Tarkanian, the son of > former
> University of Nevada-Las Vegas basketball coach Jerry Tarkanian. "We > simply
> cannot continue to allow our federal government to borrow, spend and > bail
> out entire industries at the expense of future generations of > Nevadans."
> Tarkanian has made unsuccessful bids for the state Senate and for > Nevada's
> secretary of state. Other Republicans looking at the seat include > former
> Assemblywoman Sharron Angle, attorney Chuck Kozak and investment > banker
> John Chachas. Republicans have been trying to recruit Rep. Dean > Heller.
>
>
> http://www.nationaljournal.com/congressdai...090810_6761.php
>
> -----
> POLITICAL ROUNDUP: FORMER U.S. ATTORNEY EYES SESTAK'S SEAT
>
> Pennsylvania. Former U.S. Attorney Pat Meehan, a Republican, announced
> Friday he was ending his quest for governor and is "seriously > considering"
> running for the seat Democratic Rep. Joe Sestak is vacating, the
> Philadelphia Daily News reported. "He's in," a GOP source in the > district
> told the newspaper. Meehan's entrance in the race would make him the
> frontrunner for the party's nomination, which is also being sought by
> businessman Steven Welch. Democratic state Reps. Bryan Lentz and Greg
> Vitali have expressed an interest in running.
>
>
> http://www.nationaljournal.com/congressdai...090810_4958.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "No, it goes with the paycheck."
>
> -- Rep. John Dingell, D-Mich., as quoted by the Detroit Free Press > Sunday
> about whether he was bothered by taunts and heckling at a town hall > meeting
> last week on proposed healthcare legislation. Dingell compared the
> outbursts to objections he got in 1964 when he voted for the Civil > Rights
> Act.
>
>
> http://www.nationaljournal.com/congressdai...090810_2878.php
>

[Snuffysmith]

> CongressDaily PM for Wednesday, Aug. 12, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: CRITICS: CO-OPS ARE DISGUISED PUBLIC PLAN
> By Carrie Dann
>
>
> Opponents of healthcare reform are aiming to kill a delicately > negotiated
> compromise on a nonprofit insurance plan before its final version is
> released after the recess.
>
> Some conservative groups are instructing their members that nonprofit
> healthcare co-ops, first proposed by Senate Budget Chairman Kent > Conrad,
> are synonymous with the government-administered public option > opposed by
> Republicans.
>
> Conrad is among the "Gang of Six" healthcare negotiators on the > Finance
> Committee, which has yet to release its draft.
>
> Organizations such as FreedomWorks, which is encouraging its members > to
> participate in town hall meetings, has distributed talking points
> describing the co-op concept as a rebranding of Democratic > aspirations to
> create a single-payer healthcare system.
>
> "Some are now referring to a "Co-Op" plan to continue hiding the > actual
> details of this big government legislation," said a planning document
> distributed to FreedomWorks activists.
>
> In addition, a loose-knit group of conservative leaders circulated a > memo
> last week describing the co-op proposal as "a stalking horse" for
> government-run healthcare insurance.
>
> Former Rep. David McIntosh, R-Ind., co-founder of the Federalist > Society
> and one of the Republican activist leaders who signed the memo, said > that
> Republicans are prepared to oppose any proposal that could be > perceived as
> a step toward a public option. If the Finance draft has a strong co-op
> provision, "conservatives will say that will lead to government-run > health
> care, and we will oppose it," said McIntosh.
>
> Conrad has sought to underscore key differences between the public > option,
> favored by House Democrats, and the co-ops, which he argues will cut > costs
> to consumers by operating as not-for-profit organizations.
>
> Under his plan, co-ops would receive federal seed money in the form of
> grants or loans, but the money would be limited and the co-ops would > be
> required to become self-sustaining. They would be administered by an
> elected board.
>
> The idea is under fire from both sides of the aisle. Senate Finance > Health
> Subcommittee Chairman John (Jay) Rockefeller, D-W.Va., a champion of > the
> public plan, has challenged the effectiveness of independently > operated
> cooperatives. Business groups such as the National Federation of
> Independent Business and the U.S. Chamber of Commerce oppose the > public
> option in the House version but have yet to weigh in on the co-op > proposal,
> citing the lack of details.
>
> The Chamber, which today launched a multimillion-dollar ad campaign to
> oppose Obama's plan, last week urged the Finance Committee to complete
> bipartisan negotiations.
>
> Several business lobbyists said the proposal could offer an acceptable
> compromise if the co-ops are subject to the same regulatory hurdles as
> private insurers and do not enjoy preferential treatment from federal
> decision-makers.
>
> But many conservatives remain wary that Democrats will mold any > compromise
> to tilt the playing field in favor of the co-ops, driving private > insurers
> out of the market and rendering the remaining nonprofit healthcare > networks
> unwieldy and inefficient.
>
> A spokeswoman for Americans for Prosperity, another group dispatching
> activists to town hall meetings, said her group sees the co-op > proposal,
> the public option and various mandate proposals as different names > for the
> same thing: an increased government role in how healthcare decisions > are
> made.
>
> FreedomWorks policy director Max Pappas said that Conrad's co-op idea
> would create a system akin to the government-chartered mortgage > giants that
> imploded. "This has the potential to do to health care what Fannie > Mae and
> Freddie Mac did to housing," he said.
>
>
> http://www.nationaljournal.com/congressdai...090812_3239.php
>
> -----
> HEALTH: LIFE INSURERS TARGET LONG-TERM ASSISTANCE
> By Anna Edney
>
>
> An effort to create a national long-term care insurance program is > coming
> under fire from the life insurance industry, which is alarmed that > the idea
> has made its way into two versions of healthcare overhaul legislation.
>
> First introduced by Senate Health, Education, Labor and Pensions > Chairman
> Edward Kennedy, the Community Living Assistance Services and > Supports plan,
> creates a federal insurance program providing a cash benefit to help
> enrollees to purchase assistance, such as adult day care or home
> modifications, that would help them stay in their homes if they become
> unable to perform typical daily tasks.
>
> Medicare does not provide such coverage, and only lower-income > individuals
> have access to such coverage under Medicaid. That leaves middle-income
> Americans struggling to pay for private long-term care insurance, > and some
> get rid of assets to fit into the Medicaid population.
>
> Crafters of the legislation say the wider risk pool that the voluntary
> program will establish will make long-term care insurance more > affordable.
>
> The head of the American Council of Life Insurers, former GOP Gov. > Frank
> Keating of Oklahoma, says the national program will quickly become
> insolvent. He equated the program to "attempting to send a letter > with a
> 17-cent stamp."
>
> ACLI wrote HHS Secretary Sebelius with its concerns recently and > plans to
> continue a letter-writing campaign and outreach through media to > raise the
> issue.
>
> Keating pointed to a July report from the American Academy of > Actuaries
> that estimates the program would be insolvent as early as 2021 and the
> latest by 2032. Keating argues the HELP provision, which was later > added to
> a version adopted by the House Energy and Commerce Committee, relies > too
> heavily on younger people taking part in the program.
>
> "It assumes young people will pay $110 a month on a voluntary basis > for a
> product you don't access for 40 years," Keating said. "Young people > will
> say, 'Why should I do this? I should just put money in a savings > account.'
> "
>
> Monthly premiums under the measure start at $65. HHS is directed to
> increase premiums to keep the program actuarially sound over 75 > years. The
> $110 a month Keating cited is an American Academy of Actuaries > estimate on
> the average monthly premium necessary to sustain an average $50 a day
> minimum benefit. CBO says the program will remain solvent through > 2050 if
> the premium is raised to $85 a month and benefits are capped at $50 > a day.
>
> John Rother, executive vice president for policy for AARP, said > predicting
> behavior is tough, but when a benefit is automatically offered with an
> option to decline, "people end up taking it." AARP helped Kennedy's > staff
> craft the provision to solve what the organization believes is the > main
> problem with private long-term care insurance: Premiums rise with > age and
> often force seniors to drop the coverage they paid into for decades.
>
> The life insurance industry also worries that the public program could
> entice people away from their private long-term care policies, much > like
> private health insurers and business groups fear the public health
> insurance option.
>
> The federal long-term care insurance program is particularly > inadequate to
> cover nursing home care, Keating said. "The average nursing home > benefit is
> $150, $200 a day," compared to the $50 minimum benefit, Keating said.
>
> But Rother said the program is not meant to cover institutional care.
>
> "What it's really designed to do is to help people stay independent in
> their own homes by providing enough help for in-home assistance or > adult
> day care or things like that," Rother said. "It's completely unfair > to say
> the benefit is inadequate, because it's not designed to be for > nursing home
> care or anything like that."
>
> While many people already believe Medicare will cover their nursing > home
> needs, Keating said the provision will increase confusion and lead > people
> to not properly assess their long-term care needs.
>
>
> http://www.nationaljournal.com/congressdai...090812_8340.php
>
> -----
> DEFENSE: REPORT FORECASTS NEED FOR MORE BUDGET CUTS
> By Megan Scully
>
>
> Facing the prospect of several lean years after a decade of rapidly
> expanding budgets, the Defense Department will need to make difficult
> spending decisions, potentially including more cuts to weapons > systems in
> FY11 and beyond, according to a report.
>
> Today's report from the nonpartisan Center for Strategic and Budgetary
> Assessments concluded that an expected flat-line in defense spending -
> combined with anticipated growth in personnel costs - will restrict > growth
> in research and development and in procurement accounts.
>
> The Army, for instance, is enlarging its troop strength by 22,000 > soldiers
> over the next three years, with an annual price tag around $1 billion.
> Meanwhile, healthcare costs across all the services, which total $47
> billion next fiscal year, are expected to nearly double in the next 10
> years, according to the report.
>
> "Options for dealing with the tightening budget situation are > limited,"
> the report says. "In the coming years, pressure will likely continue > to
> grow for DOD to scale back its plans, including both major > modernization
> efforts and force structure plans."
>
> The Defense Department's budget request for FY10 totals $668 billion,
> which includes $130 billion for wars in Iraq and Afghanistan. While > the
> $538 billion base budget marks a 3.4 percent real increase in > spending over
> the amount appropriated this year for the department, future budgets > are
> expected to grow only slightly more than the rate of inflation.
>
> Projections of more cuts to military hardware come as Congress > continues
> to grapple with changes Defense Secretary Gates proposed to dozens of
> procurement programs for FY10, including the termination of some
> high-profile programs such as the manned ground vehicle portion of the
> Army's Future Combat Systems.
>
> Pentagon officials are reviewing their budgetary options during the
> congressionally mandated Quadrennial Defense Review of military
> capabilities and requirements. Already, officials estimate that they > need
> $50 billion to $60 billion worth of technological "enhancements" > over the
> next five years - meaning cuts will have to come in other areas.
>
> Todd Harrison, author of the CSBA report, says he expects programs > that
> have limited missions or purposes - such as the Marine Corps' > Expeditionary
> Fighting Vehicle -- to become targets for cuts. More versatile > programs
> needed for conventional and unconventional warfare are more likely > to be
> safe from the budgetary ax, he said.
>
> "Whatever path is selected, effectively addressing the growing cost of
> DOD's plans and the growing size of the federal deficit will require > making
> some hard decisions," the report says. "And the sooner those > decisions are
> made the less painful they will be to carry out."
>
>
> http://www.nationaljournal.com/congressdai...090812_5654.php
>
> -----
> TRADE: WTO RULES AGAINST CHINA ON COPYRIGHTS
> By Peter Cohn
>
>
> The World Trade Organization has delivered a victory to the United > States
> in its two-year-old case against Chinese restrictions on importation > and
> distribution of copyright-protected movies, music, books and other
> entertainment products.
>
> The decision, made public today, found that the limits on sales of > U.S.
> entertainment wares violated global trade rules. In a statement, Trade
> Representative Kirk said it would "level the playing field for > American
> companies" and represented a "clear win" for the United States, > whose trade
> relations with China have been increasingly testy.
>
> The case centered on U.S. complaints that China has been forcing > companies
> to route imports through state-owned or controlled enterprises, as > well as
> placing restrictions on foreign firms' distribution rights in China. > The
> WTO also found that China discriminated against certain imported > reading
> materials and called on China to allow U.S. firms to partner with > Chinese
> enterprises in distributing music over the Internet.
>
> The WTO did not support the United States in all of its claims against
> China. For example, it said there was not enough evidence to > demonstrate
> China had discriminated against imported films by offering fewer
> distribution opportunities, or that censorship of online music
> discriminated against hard-copy CD imports.
>
> The United States has long argued that China's restrictions on market
> access for copyright-protected products raise prices and open the > door to a
> booming market for pirated goods. The International Intellectual > Property
> Alliance, which represents U.S. film, television and recording > studios,
> book publishers and software companies, estimates that the > prevalence of
> counterfeit goods led to nearly $3.6 billion in lost Chinese sales > in 2008.
>
> The copyright issue is one of many plaguing trade relations between > the
> United States and China. In June, the United States filed a case > against
> China for restricting exports of raw materials used by U.S. steel, > aluminum
> and chemical producers. And next month, the Obama administration > faces a
> decision on whether to comply with a demand by the United Steelworkers
> union and a bipartisan group of lawmakers to slap punitive tariffs on
> low-cost Chinese tire imports.
>
>
> http://www.nationaljournal.com/congressdai...090812_9910.php
>
> -----
> TRANSPORTATION: ANSWERS SOUGHT ON MINN. FLIGHT DELAY
> By Darren Goode
>
>
> On the heels of a Transportation Department request, lawmakers are > seeking
> to determine why passengers on a Continental Airlines regional flight
> Friday were left on the plane while it sat on the tarmac for several > hours
> overnight.
>
> Sen. Amy Klobuchar, D-Minn., sent a letter Tuesday to FAA > Administrator
> Randy Babbitt asking for answers. "I hope you will share my > assessment that
> the conditions experienced by these passengers were unacceptable and
> warrant a swift response," she said.
>
> Senate Commerce Chairman John (Jay) Rockefeller has also contacted > FAA and
> the Transportation Department, according to a spokeswoman.
>
> Transportation Secretary LaHood has asked the department's general > counsel
> to look into whether Continental or its partner ExpressJet Airlines
> violated any laws.
>
> LaHood sent a letter to Continental asking for information regarding > the
> incident, in which a Continental regional flight from Houston > operated by
> ExpressJet sat on the tarmac with 47 passengers at Rochester (Minn.)
> International Airport for hours after it was diverted from the
> Minneapolis-St. Paul International Airport. News reports indicate > the wait
> on the plane was at least six hours, after a delay of a couple hours > before
> the plane had initially left Houston.
>
> "What does it mean that an article from over the weekend on a > nightmare
> flight delay is yesterday's 'Most Viewed' news item in the Minneapolis
> Star-Tribune?" LaHood wrote on his blog Tuesday. "I think it means > that
> reasonable people are outraged at the idea of being stuck on a small > plane
> for seven hours."
>
> LaHood is asking Continental to explain why the flight was diverted --
> ExpressJet has blamed thunderstorms -- and which carrier's > contingency plan
> was implemented during the delay. He is also asking whether either > carrier
> had procedures in place at Rochester regarding deplaning of > passengers; why
> the flight was forced to stay on the ground for that long; and how
> passengers were treated during the delay and once they were inside the
> airport terminal. ExpressJet has said the passengers stayed on board
> because Transportation Security Administration screeners had gone > home for
> the night and passengers would not have been able to re-board.
>
> LaHood said the information from Continental will be used to help > write a
> departmental rule requiring airlines to take certain action to deal > with
> lengthy tarmac delays, including ensuring basic passenger needs.
>
> The incident has rallied those seeking congressional approval of a
> passenger bill of rights. Sens. Barbara Boxer, D-Calif., and Olympia > Snowe,
> R-Maine, sent a Dear Colleague Tuesday to gather support for a bill
> allowing passengers to deplane after every three hours on the ground > and
> requiring airlines to provide food, water and adequate restrooms. It > would
> also mandate that airports and airlines develop contingency plans for
> delayed flights, which the Transportation Department would review and
> approve. It would be able to fine air carriers and airports that do > not
> submit or comply with those plans.
>
> The Boxer-Snowe measure was included in a FAA reauthorization bill > that
> the Senate Commerce Committee approved in July, but the senators say > they
> will push for a stand-alone bill if the broader committee bill stalls.
>
> House Transportation and Infrastructure Aviation Subcommittee Chairman
> Jerry Costello, D-Ill., today said he has talked to FAA officials > who are
> investigating. "It is another example of why the Senate needs to > move a FAA
> reauthorization bill" that includes a mandatory passenger bill of > rights,
> he said. "I think we can get a bill out in a relatively short time > and get
> it to the president's desk in the fall."
>
>
> http://www.nationaljournal.com/congressdai...090812_8198.php
>
> -----
> ENERGY: GREEN GROUPS KICKING OFF AD CAMPAIGN
> By Darren Goode, with Cyra Master contributing
>
>
> Environmental groups, including one led by former Vice President Al > Gore,
> have unveiled a broad campaign that will run through Labor Day to > push the
> Senate to follow the House toward passing a climate-and-energy > strategy
> this year.
>
> Repower America, an initiative Gore spearheaded, and the Blue Green
> Alliance, a coalition of labor and environmental groups, are kicking > off a
> series of more than 50 events in 22 states, including states with
> particularly high unemployment and swing-vote senators. The events > will
> include "everything from roundtables to rallies," starting with a > large
> rally Aug. 20 in Cleveland, Repower America spokeswoman Alice McKeon > said.
>
> There are no confirmed speakers for the events, though they will > include
> local leaders who own businesses with "green jobs" and people who hold
> those jobs, McKeon said.
>
> The campaign will last a little over a month, she said.
>
> The Alliance for Climate Protection, one of two entities behind the
> Repower America campaign, unveiled a national cable TV spot today > and its
> sister group, the Climate Protection Action Fund, is doing state > radio and
> TV ads. The 30-second national spot will run at least through Labor > Day,
> spokesman Brian Rogers said.
>
> The state ads will start running today in Indiana, Missouri, North > Dakota
> and Arkansas, with four more states to follow in the coming week and
> through Labor Day. "It's swing votes; it's the heartland of America > hardest
> hit by the economic downturn but also has the most to gain changing > to a
> clean energy economy," Rogers said. The group is still undecided on > the
> next four states where the ads will run, he said.
>
> Each ad targets senators in a particular state. One targeting Sen. > Evan
> Bayh, D-Ind., for example, asks people to call his Hammond office > and "tell
> him to support clean energy jobs for Indiana."
>
> On the other side of the debate, the National Association of > Manufacturers
> and the American Council for Capital Formation released a study today
> saying the House bill will discourage economic growth. "This is an
> anti-energy, anti-growth, anti-jobs bill," said NAM Executive Vice
> President Jay Timmons. He said the group would support a bill that > focuses
> on nuclear and clean coal energy while expanding the domestic oil > and gas
> supply. The groups also released data summaries from 15 Midwestern
> industrial states they say will be hardest hit, showing estimated job
> losses due to the legislation.
>
>
> http://www.nationaljournal.com/congressdai...090812_2039.php
>
> -----
> HILL BRIEFS: FED MAINTAINS LENDING RATE
>
> Economy. The Federal Reserve Board left a key interest rate unchanged
> today and hailed signs of a recovery by saying economic activity is
> "leveling out." At the start of a two-day meeting, the board kept the
> target range for its banking lending rate between zero and 0.25 > percent
> through the rest of this year, the Associated Press reported. The > Fed also
> signaled that it would gradually slow the pace of its program to buy
> Treasury securities so that it will shut down at the end of October, > rather
> than September. The program is aimed at lowering rates on mortgages > and
> other consumer debt, a move to spur Americans to spend more. The
> maintenance of the federal funds rate means the commercial banks' > prime
> lending rate, used to peg rates on home equity loans, certain credit > cards
> and other consumer loans, will stay around 3.25 percent, the lowest in
> decades.
>
>
> http://www.nationaljournal.com/congressdai...090812_9838.php
>
> -----
> HILL BRIEFS: STATE LAWMAKER TO CHALLENGE HIMES
>
> House Races. Republican state Sen. Dan Debicella has filed paperwork > to
> challenge freshman Rep. Jim Himes, D-Conn., the Connecticut Post > reported.
> "We need someone who is going to be a practical problem-solver to > improve
> the quality of life for families in Fairfield County," he said. "We > need a
> congressperson who's going to take a moderate course to actually get
> something done." Debicella said his candidacy emerged only after state
> Senate Minority Leader John McKinney recently opted out of running. > Himes
> unseated Republican Rep. Christopher Shays 51-48 percent last year.
>
>
> http://www.nationaljournal.com/congressdai...090812_5230.php
>
> -----
> HILL BRIEFS: PALIN RELATIVES ASSIST GOP HOPEFUL
>
> House Races. Former Alaska Gov. Sarah Palin's father and father-in-law
> will campaign in Idaho this month for Republican Vaughn Ward, who is
> seeking the seat held by freshman Democratic Rep. Walt Minnick of > Idaho.
> Ward was an assistant for the McCain-Palin presidential campaign. A > Ward
> spokesman said, "They're going to be talking about how [President] > Barack
> Obama and [Speaker] Nancy Pelosi are taking our country in the wrong
> direction." Ward is running in the 2010 GOP primary against Ken > Roberts,
> the state House Majority Caucus chairman.
>
>
> http://www.nationaljournal.com/congressdai...090812_7833.php
>
> -----
> HILL BRIEFS: HELLER PASSES ON CHALLENGE OF REID
>
> Senate Races. Republican Rep. Dean Heller of Nevada told party > officials
> Tuesday he would not challenge Senate Majority Leader Reid, the Nevada
> Appeal reported. "I'm really happy where I am," said Heller, who was
> appointed to the Ways and Means Committee eight months ago. Many in > the
> party viewed Heller as their best option to unseat Reid, who has been
> plagued by sagging poll numbers despite his $7.3 million on hand. > The field
> of announced candidates includes real estate businessman Danny > Tarkanian,
> the son of former University of Nevada-Las Vegas men's basketball > coach
> Jerry Tarkanian, and former Assemblywoman Sharron Angle. Nevada > Republican
> Party Chairwoman Sue Lowden and state Sen. Mark Amodei are viewed as
> potential candidates.
>
>
> http://www.nationaljournal.com/congressdai...090812_7388.php
>
> -----
> HILL BRIEFS: REPUBLICAN ENTERS RACE FOR LINCOLN'S SEAT
>
> Senate Races. Safe Foods CEO Curtis Coleman, a Republican, today > announced
> his candidacy for the seat held by Democratic Sen. Blanche Lincoln of
> Arkansas. "The critical issues facing Americans today, like healthcare
> reform, will have such a profound impact on our daily lives that we > must
> replace career politicians with citizen statesmen," said Coleman, who
> managed former GOP Gov. Mike Huckabee's unsuccessful 1992 Senate > bid. Other
> announced Republicans include state Sen. Kim Hendren and businessmen > Fred
> Ramey and Tom Cox.
>
>
> http://www.nationaljournal.com/congressdai...090812_4446.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "The second 350 [billion dollars] is the part that Secretary > Geithner's
> holding on to, and he's doing this sort of $2 bets all over the > table in
> Vegas, right? I hate to say that with that many billion."
>
> -- Elizabeth Warren, chairwoman of the Congressional Oversight Panel > for
> the Toxic Asset Relief Program, explaining today the status of TARP > funds
> on MSNBC's "Morning Joe."
>
>
> http://www.nationaljournal.com/congressdai...090812_5829.php

[Snuffysmith]

> CongressDaily PM for Thursday, Aug. 13, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: SENATE PANEL TO DROP END-OF-LIFE PROVISION
> By Kasie Hunt
>
>
> The Senate Finance Committee will not include House-backed provisions
> aimed at helping people plan for end-of-life care, the panel's top
> Republican said today.
>
> "We dropped end-of-life provisions from consideration entirely > because of
> the way they could be misinterpreted and implemented incorrectly," > Finance
> ranking member Charles Grassley said in a statement. "Maybe others can
> defend a bill like the [Speaker] Pelosi bill that leaves major > issues open
> to interpretation, but I can't."
>
> The House bill would require that Medicare pay physicians to counsel
> Medicare patients on end-of-life care issues once every five years,
> although the counseling sessions would be voluntary.
>
> The provision has sparked a political furor in recent days, with some
> conservatives dubbing the counseling sessions "death panels" and > critics
> arguing the idea could lead to euthanasia or rationing of care for the
> elderly.
>
> The charges forced President Obama to address the issue at his Tuesday
> healthcare town hall in Portsmouth, N.H. "So the intention of the > members
> of Congress was to give people more information so that they could > handle
> issues of end-of-life care when they're ready, on their own terms," > Obama
> said of the House provision. "It wasn't forcing anybody to do > anything."
>
> "Somehow it's gotten spun into this idea of 'death panels.' I am not > in
> favor of that," Obama said. "I want to clear the air here."
>
> Obama said he had backing from Sen. Johnny Isakson, R-Ga. Isakson > opposes
> the House bill, but he did lead an effort in the Senate Health, > Education,
> Labor and Pensions Committee to add a provision making it easier for
> patients to develop living wills.
>
> The Senate Health, Education, Labor and Pensions Committee added > Isakson's
> changes to a section of the healthcare overhaul that would create a
> voluntary long-term care insurance program. Isakson's provision allows
> anyone who participates in that program to receive assistance > creating a
> living will and assigning durable power of attorney. The long-term > care
> program is also included in House version of the overhaul.
>
>
> http://www.nationaljournal.com/congressdai...090813_7981.php
>
> -----
> TRADE: REPORT SUGGESTS AGOA BENEFITS UNREALIZED
> By Peter Cohn
>
>
> To help reverse a steady decline in African textile and apparel > imports,
> Congress should consider extending the signature trade preference > program
> for sub-Saharan Africa beyond its scheduled 2015 expiration, > according to
> experts interviewed by GAO. Lawmakers and the Obama administration > could
> also look into extending a provision of the African Growth and > Opportunity
> Act enabling the poorest sub-Saharan manufacturers to use yarns and > fabrics
> originating elsewhere to make their products, the report said.
>
> The report to the House Ways and Means and Senate Finance committees > was
> required under a law enacted last year extending trade preferences for
> Andean countries, which expire on Dec. 31. Released Wednesday, the > findings
> come on the heels of a trip to Africa by U.S. officials, including
> Secretary of State Clinton and Trade Representative Kirk, which > focused in
> part on enhancing the economic competitiveness of sub-Saharan Africa.
>
> The pending expiration of the Andean program as well as the broader
> Generalized System of Preferences has prompted a debate in Congress > about
> duty-free benefits for imports from the developing world. Other poor
> countries with competitive apparel sectors, including in Southeast > Asia,
> are asking the United States for new benefits, while African > countries want
> to preserve what little market share they have and, if possible, > expand it.
>
> According to GAO, textile and apparel exports to the United States > under
> the African Growth and Opportunity Act have increased by 52 percent > since
> the law's 2000 enactment. But despite the generous duty-free benefits,
> sub-Saharan countries only hold 1.3 percent of the U.S. market.
>
> Moreover, textile and apparel imports from Africa have declined by
> one-third since 2005 after worldwide quotas disappeared. By contrast,
> China's U.S. market share more than doubled. The market share of > Bangladesh
> and Cambodia -- two countries seeking duty-free benefits -- have > increased
> as well, to the point where Bangladesh accounts for three times the > output
> of all the sub-Saharan African countries combined.
>
> Meanwhile, 98 percent of textile and apparel imports from Africa are
> clothing, as opposed to textile inputs such as yarn and fabrics, as > well as
> finished textile products like pillowcases and blankets. The 2000 > law was
> expected to bolster those exports and broaden Africa's industrial > base, but
> U.S. textile imports have fallen under AGOA, from $24.2 million > worth in
> 1998 to $15.6 million last year.
>
> Extending "third-country" fabric eligibility beyond 2012 and the > overall
> program beyond 2015 would provide investors in the region with > certainty,
> private-sector and governmental officials told GAO. However, others > raised
> concerns that this move could increase Africa's dependence on trade
> preferences, the report said.
>
> At the same time, sub-Saharan countries "face infrastructure and
> development challenges that must be addressed before they can fully > take
> advantage of these benefits," the report concludes. Trade capacity-> building
> efforts "may be ineffective without global demand for production," it
> added, while experts told GAO that "African governments need to take > action
> on governmental reforms to capitalize on the economic opportunities
> presented by trade preference programs."
>
>
> http://www.nationaljournal.com/congressdai...090813_2721.php
>
> -----
> FINANCE: OVERHAUL OPPONENTS HIGHLIGHT TURF BATTLES
> By Bill Swindell
>
>
> As the battle over the proposed Consumer Financial Protection Agency > heats
> up, opponents are focusing on regulators' qualms to make their point
> instead of emphasizing complaints of the industry that stands to > come under
> tighter scrutiny.
>
> The outline can be seen in recent letters to House Financial Services
> ranking member Spencer Bachus on the Obama administration proposal, > which
> would create an agency modeled on the Consumer Product Safety > Commission
> for rule-writing, examination and enforcement for financial products > such
> as credit cards, mortgages, payday loans and credit insurance > products.
> Bachus is leading the charge against legislation to create the agency,
> which is part of the administration's plan to revamp the nation's > financial
> regulatory structure. It is slated to be marked up next month in his
> committee.
>
> FTC Commissioner Thomas Rosch, a Republican, has told Bachus the Obama
> administration is asking the public to buy a "pig in a poke." In a > July 16
> letter, he wrote that the only certainty "is that the creation of > this new
> agency would result in considerable delay in protecting consumers, > wasteful
> and inefficient consumer protection law enforcement, and very > substantial
> if still indeterminate cost."
>
> Another FTC Commissioner, William Kovacic, wrote that the proposal > to give
> the FTC backstop authority to bring enforcement actions against > financial
> firms would be "anything more than a mirage."
>
> FTC Chairman Jon Leibowitz, appointed by President Obama, does not > see the
> proposal as a threat and is working with the Treasury Department to > ensure
> the bill would ensure his agency would even gain some new authority, > such
> as streamlined rulemaking and the ability to impose civil penalties > for
> unfair and deceptive practices.
>
> The regulators' opposition to the CFPA has also been voiced by the > Federal
> Reserve and Comptroller of the Currency John Dugan, who said in an > Aug. 4
> letter that the proposed agency's rulemaking authority would be > undercut by
> allowing states to enact even tougher laws. Furthermore, he wrote, > it would
> not address safety and soundness concerns raised by bank regulators.
>
> The pushback from regulators has been so severe that Treasury > Secretary
> Geithner reportedly pushed them in a contentious July 24 meeting to > get on
> board the administration's plan. The regulators' concerns have given a
> boost to a coalition of financial groups opposing the proposal, > taking the
> focus off the industry's actions on some abusive credit card > practices and
> predatory mortgages that played a role in the banking crisis and > turning it
> toward interagency turf battles and power plays.
>
> House Financial Services Chairman Barney Frank has said it is not
> surprising that regulators are pushing back against a plan that > would take
> away some powers from their respective agencies. But he believes the > bill
> should pass because the existing system has too many lapses.
>
> Lawmakers might be forced to make further concessions to regulators > as the
> bill moves forward. For example, FDIC Chairwoman Sheila Bair, who > has a
> good relationship with Frank and Senate Banking Chairman Christopher > Dodd,
> has spoken out in favor of such an agency. She added examination and
> enforcement in consumer protection should be retained by banking > regulators
> and not given to the proposed agency.
>
>
> http://www.nationaljournal.com/congressdai...090813_9547.php
>
> -----
> TELECOMMUNICATIONS: GOOGLE'S CERF URGES WIDER INTERNET ACCESS
> By David Hatch
>
>
> In the world according to Vint Cerf, Google's "chief evangelist" and > one
> of the Internet's pioneers, broadband will be treated like a > utility, with
> new infrastructure providing maximum benefit to the public and
> entrepreneurs seeking to harness it.
>
> "It's not only broadband -- it's broadband access. ...That's > important,"
> Cerf said today at an FCC workshop that will help the agency craft a
> sweeping national broadband plan to be presented to Congress in > February.
> "If we want to maximize the utility of the broadband investment in the
> United States, [the Internet] needs to be very widely accessible."
>
> The forum is one of two dozen the FCC is holding in August and early
> September.
>
> Cerf's vision is certain to carry considerable weight at the
> Democratic-controlled commission, given his stature as a key > architect of
> the Internet and the close ties his company has forged with the tech-> savvy
> Obama administration.
>
> Likening broadband infrastructure to the electrical grid, Cerf said, > "The
> Internet, in theory, need not dictate what applications you run, or > what
> devices are connected to it. Its openness and freedom of invention is
> exactly what has created so many new opportunities."
>
> As regulators and lawmakers craft policies affecting broadband, he
> recommended that they "keep in mind that this unbound notion of > access to
> high-capacity is what enables all kinds of new opportunity."
>
> Cerf emphasized that in situations where there is not much > competition,
> there must be more awareness of the need to ensure that network > openness is
> maintained.
>
> He endorsed the concept of online companies "differentiating" their
> services by utilizing technologies that enable faster downloads of
> applications and content. That is an approach used by Google that has
> prompted accusations it is violating the network neutrality > principles it
> espouses.
>
> As long as open networks are maintained, there should be recognition > that
> companies can "do something different" to support their online > services
> with crossing over into anti-competitive behavior, Cerf said. "This > is the
> kind of problem that you almost have to deal with on a case-by-case > basis"
> and without the involvement of legislators, he added.
>
>
> http://www.nationaljournal.com/congressdai...090813_7965.php
>
> -----
> GOVERNMENT OPERATIONS: MOMENTUM BUILDS FOR POSTAL SERVICE RELIEF
> By Michael Posner
>
>
> Congress might be prepared to offer the U.S. Postal Service a partial
> bailout by giving the mail service a $2 billion infusion from a > special
> health benefits fund set aside for future retirees.
>
> Under a 2006 law, the Postal Service is required to pay at least $5.4
> billion annually into a special fund. The service also pays about $2
> billion from its operating funds for its share of premiums for current
> retirees.
>
> The agency, which is supposed to be self-supporting, is on track to > lose
> more than $7 billion in the fiscal year. Mail volume for FY08 > declined by
> 9.5 billion pieces and had declined by double that amount for this > year as
> of May. The GAO in July added the Postal Service to its list of at-> risk
> areas that require congressional attention.
>
> Both a House bill that cleared the House Oversight and Government > Reform
> Committee and a pending bill before the Senate will allow retirees > to be
> paid out of that special fund, easing the financial burden by about $2
> billion. But that relief is only temporary, covering three fiscal > years.
>
> Quick relief is a priority for lawmakers, before the Postal Service > is due
> to put $5.4 billion into the special fund for future retirees Oct. 1.
>
> The measure should find smooth sailing through the House since the
> legislation sponsored by Rep. John McHugh, R-N.Y., has more than 390
> co-sponsors. But it might not be that easy in the Senate.
>
> The Senate Homeland Security and Governmental Affairs Committee > approved a
> similar bill July 30, but it contains an amendment that could be an
> obstacle. The rider by Sen. Tom Coburn, R-Okla., requires that the
> service's financial stability be taken into account in negotiations > for
> union contracts. Unions called the amendment "mean-spirited" and > said they
> could not back the bill with that amendment.
>
> "Although arbitrators routinely consider the financial health or the
> postal service, if the amended bill is passed into law, it would > have a
> profound effect on negotiations. When we begin our next round of > contract
> talks in September 2010, discussion will be overshadowed by this new
> requirement," said William Burrus, president of the American Postal > Workers
> Union.
>
> The fight over that amendment will be played out on the Senate floor > -- as
> early as next month if Senate Majority Leader Reid has his way -- or > in a
> House-Senate conference.
>
> In an effort to save money, the postal service has also proposed
> consolidating services and shuttering some of its 3,200 post offices > across
> the country, recommendations that are pending review by the U.S. > Postal
> Rate Commission. Postmaster General John Potter wants to cut mail > service
> to five days a week, a proposal that would require Congress to > change the
> law requiring six-day service.
>
>
> http://www.nationaljournal.com/congressdai...090813_1486.php
>
> -----
> SENATE RACES: SIMMONS, FOLEY DUELING EARLY FOR GOP NOD
> By Erin McPike
>
>
> While Sen. Christopher Dodd, D-Conn., works to rehabilitate his image
> ahead of his 2010 re-election battle, the top two Republican > challengers
> are mapping out strategies to try to win the nomination at the GOP > state
> convention in May in Hartford and the primary a year from now.
>
> Former Rep. Rob Simmons, who recently won the endorsement of state > House
> Republican Leader Larry Cafero, was expected to be the favorite for > the GOP
> nomination, but national party leaders seem more than happy to allow
> primary voters to choose between him and former Ambassador to > Ireland Tom
> Foley, which would give the party a tune up before the fall faceoff > with
> Dodd.
>
> Linda McMahon, wife of World Wrestling Entertainment President Vince
> McMahon, and Jack Orchuli, who lost a lopsided race to Dodd last > time, are
> weighing whether to run. Other potential GOP candidates include > state Sen.
> Sam Caligiuri and stockbroker Peter Schiff. But most operatives see > the GOP
> race coming down to Simmons or Foley.
>
> One potential factor in the GOP race is that Foley could mount a
> self-funded campaign. As a fundraiser for former President George W. > Bush,
> Foley has access to some major contributors, but he has little name
> recognition statewide. Simmons has name recognition in much of the > state,
> though he is better known in Democratic parts of the state than in the
> wealthy New York suburbs that are Foley's base.
>
> One key for Simmons is whether he can raise enough money to get his
> message out in the expensive New York media market that reaches into
> Republican-leaning parts of Connecticut. His aides say that his > popularity
> in the rest of the state would give him the best chance against Dodd > in the
> general election.
>
> "Rob Simmons is Sen. Dodd's worst political nightmare: a candidate > with an
> unblemished record of putting service above self and the ability to > pull
> votes from voters across the political spectrum," said Jim Barnett, > who is
> managing Simmons' campaign. "That is why independent voters continue > to
> flood to Rob, and why grassroots Republicans continue to coalesce > around
> him as their standard-bearer."
>
> Foley's manager, Gregg Keller, countered that fundraising and polling
> efforts show voters are keen on the former ambassador. "The campaign's
> fundraising success confirms the enthusiasm for Tom and this race," > Keller
> said.
>
> Both candidates are pursuing an aggressive grassroots strategy and > have
> heavy travel schedules. Dodd, who is recovering from prostate cancer
> surgery, said he expects to return to work at the end of the month.
>
>
> http://www.nationaljournal.com/congressdai...090813_3535.php
>
> -----
> HILL BRIEFS: MCCONNELL WANTS TO 'KILL' WARMING BILL
>
> Congressional Leadership. Senate Minority Leader McConnell told > Kentucky
> constituents Wednesday he will "do everything I can to kill" a bill
> designed to ease global warming and will try to defeat healthcare > overhaul
> legislation. According to WYMT-TV, McConnell said he backs "niche > fixes,"
> such as medical malpractice reform, but opposes an overhaul of the
> healthcare system. McConnell said the Democratic proposals would > amount to
> a "government takeover" of health care, but he acknowledged he had > not read
> the proposals in detail.
>
>
> http://www.nationaljournal.com/congressdai...090813_5503.php
>
> -----
> HILL BRIEFS: OILMAN TO SEEK TIAHRT'S SEAT
>
> House Races. Businessman Willis (Wink) Hartman, said he will run for > the
> seat Rep. Todd Tiahrt, R-Kan., will vacate to run for Senate, the
> Associated Press reported. Hartman, who owns of Hartman Oil Co., > told KFDI
> News that he would focus on the aircraft industry, followed by > health care
> reform and proposed cap and trade energy legislation. Hartman says > he will
> make an official announcement about the race after Labor Day. State > Sen.
> Dick Kelsey and Mike Pompeo, a businessman who represents Kansas on > the GOP
> National Committee, are already seeking the Republican nomination. > State
> Rep. Raj Goyle is running as a Democrat.
>
>
> http://www.nationaljournal.com/congressdai...090813_8364.php
>
> -----
> HILL BRIEFS: O'CONNELL TO RUN CBP PUBLIC AFFAIRS POST
>
> People. U.S. Customs and Border Protection named Maria Luisa > O'Connell as
> head of its public affairs office. O'Connell served as president of > the
> Border Trade Alliance, a Phoenix-based organization that represents > those
> involved in border and trade issues in the United States, Canada and
> Mexico. "I am honored to be a part of CBP, an organization that I > believe
> has been and will continue to be vital in protecting our national > security
> while enhancing our economic strength," said O'Connell, who is a > native of
> Colombia and fluent in Spanish. Before joining the Border Trade > Alliance,
> she was a financial analyst at Bank One International Corporation.
>
>
> http://www.nationaljournal.com/congressdai...090813_5817.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "We would never do that. It's wrong morally. It's not American. And > by the
> way, it's not even smart politically."
>
> -- Sen. Claire McCaskill, D-Mo., on MSNBC's "Hardball" Wednesday,
> debunking reports that Democrats want "death panels" included in their
> healthcare overhaul.
>
>
> http://www.nationaljournal.com/congressdai...090813_7603.php

[Snuffysmith]

> CongressDaily PM for Monday, Aug. 17, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: HOUSE ACTION UNLIKELY UNTIL LATE SEPTEMBER
> By Kasie Hunt and Billy House
>
>
> After a month of battering town halls and harsh criticism from
> constituents, House Democrats will delay voting on health reform > overhaul
> legislation until the end of next month. A vote is "not likely until > the
> end of September," a leadership aide said.
>
> House staffers are working to merge the three versions of the overhaul
> that emerged from the Energy and Commerce, Ways and Means, and > Education
> and Labor committees. They will also have to contend with a second > bill
> from Energy and Commerce, which will meet next month to consider > amendments
> that members did not address before the August recess.
>
> House leaders initially pushed to pass an overhaul before lawmakers > went
> home for the August recess, but delayed action after conservative > Democrats
> balked. Blue Dog Coalition members pushed for time to hear from
> constituents in August and registered concerns with the public plan
> included in the House version of the bill.
>
> HHS Secretary Sebelius suggested Sunday that the administration was
> backing off its insistence that healthcare reform include a public > option.
> "What's important is choice and competition," Sebelius said during an
> appearance on CNN's "State of the Union with John King." A public > option
> "is not an essential element," she said.
>
> Obama also downplayed the significance of including a public option > at a
> town hall meeting in Colorado Saturday. "The public option, whether > we have
> it or we don't have it, is not the entirety of healthcare reform," > he said.
> "This is just one sliver of it, one aspect of it."
>
> Yet the lack of public option could be a major hurdle for House > leaders in
> passing a bill, as a leader of key group of liberal House Democrats > said
> today they stand firm in their opposition to any bill that does not > have a
> strong public option.
>
> "As we have stated repeatedly for months now, a majority of the > members of
> the Congressional Progressive Caucus will oppose any healthcare reform
> legislation that does not include a robust public option," said Rep. > Raul
> Grijalva, D-Ariz., and co-chairman of the group. "Our position has > not, and
> will not, change."
>
> The Caucus had sent to a letter last month to House leadership with 57
> signatures pledging oppose any legislation without a public option.
>
> Despite such a position, Pelosi told CongressDaily and other news > outlets
> last month that she did not believe liberals would allow a health > insurance
> bill to die because of their unhappiness with one provision.
>
> Pelosi will be doing a health insurance reform event in San Francisco
> Thursday with local religious leaders.
>
> House Minority Leader Boehner dismissed the administration's shift. > "The
> so-called 'public option' is just one of the serious flaws in the
> Democrats' government takeover legislation," Boehner spokesman Michael
> Steel said today. "They should scrap it, and start over on real, > bipartisan
> healthcare reform."
>
> Minority Whip Cantor said the change was a step in the right > direction,
> saying he was "heartened" by Sebelius' comment "that she doesn't think
> necessarily that a government takeover of health care is a necessary
> component of what the Obama administration is trying to do," during an
> appearance on CNBC today.
>
> Former Democratic National Committee Chairman Howard Dean, who is > often
> allied with the liberal wing of the party, urged the Obama > administration
> to insist on the public option. "You can't really do health reform > without
> it," he said on NBC's "Today" show.
>
>
> http://www.nationaljournal.com/congressdai...090817_9899.php
>
> -----
> HEALTH: SENATE DEMS, GROUPS STEP UP ATTACKS ON GOP
> By Dan Friedman, with Carrie Dann contributing
>
>
> Stung by early coverage of efforts to disrupt Democratic town halls on
> healthcare reform, Democrats have stepped up efforts to put > Republicans on
> the defensive over what healthcare reform supporters call GOP > efforts to
> mislead Americans about the legislation and its ties to insurers.
>
> Senate Majority Leader Reid's Senate Democratic Communications > Center has
> adopted a pointed and mocking tone in ripping GOP senators over
> questionable statements to constituents and failure to propose an
> alternative.
>
> A Reid spokesman said the attacks differ from past communications by
> employing humor and direct attacks on specific Republican senators. > "Some
> of this stuff [Republican claims] is so absurd that you have to," he > said.
>
> Last week, the Democratic Communications Center released a Web video > in
> which tourists outside the Capitol were asked if they know anything > about
> the Republicans' health reform plan. Ignoring Republican > protestations they
> do not oppose reform, the video's message is that the GOP plan is "the
> status quo."
>
> In a release Friday titled "Postcards from the Edge," the > communications
> office took the unusual step of circulating GOP attacks on Democratic
> proposals to expose what the office called "lies and falsehoods" > spread by
> Republican senators while they are "out of the national spotlight."
>
> The statement cited a meeting where Sen. Saxby Chambliss, R-Ga., > displayed
> a picture of his twin granddaughters. Noting they were born two months
> premature, Chambliss suggested "some government board" would have
> determined their medial care under Democratic proposals.
>
> The release highlights statements by Sens. Jim DeMint, R-S.C., and > David
> Vitter, R-La., to suggest they oppose reform and faults a statement > by Sen.
> Johnny Isakson, R-Ga., that healthcare reform will "destroy this > economy."
>
> Such attacks are part of a push that Democratic aides believe has > begun
> altering the August debate, with the focus less on Democratic > responses to
> town hall protesters than on GOP rhetoric and opposition.
>
> Senate Finance ranking member Charles Grassley late last week issued
> several statements to rebut attacks by Democrats, including President
> Obama, to a town hall where critics said Grassley endorsed claims that
> end-of-life counseling promoting in the House bill could amount to > "death
> panels."
>
> A Senate Republican leadership aide said "Republicans are working hard
> back in their home states this month, listening to constituents and
> preparing to advocate on their behalf when the session resumes in
> September."
>
> Pro-reform groups also continue to highlight ties between lawmakers
> opposing reform and interest groups.
>
> Health Care for America Now, a coalition of groups that back > Democrats'
> healthcare plan, unveiled a $650,000 ad buy today to target > Republicans who
> enjoy "good, affordable health insurance, guaranteed" as members of
> Congress while charging them with delaying pending bills while > accepting
> campaign donations from "the healthcare industry."
>
> The ad, funded in conjunction with coalition member American > Federation of
> State, County and Municipal Employees, targets GOP leaders on both > sides of
> the Capitol, six other potentially vulnerable GOP House members and
> conservative Sen. Richard Burr, R-N.C.
>
> And in Missouri, Lamar Advertising reversed a local office's decision
> Friday and will allow US Action and its state affiliate, Missouri
> Progressive Vote Coalition, to buy billboard space for an ad > challenging
> GOP Rep. Roy Blunt.
>
> It will feature a picture of Blunt, along with a message noting that > he
> has taken $556,682 in insurance company contributions and asking, > "Is that
> why he won't take our side on health care reform?"
>
>
> http://www.nationaljournal.com/congressdai...090817_2573.php
>
> -----
> TELECOMMUNICATIONS: GRASSLEY FEARS FAIRNESS DOCTRINE REVIVAL
> By David Hatch
>
>
> In his first significant tussle with Congress, FCC Chairman Julius
> Genachowski is being pressed by a senior Republican senator to
> "affirmatively state" he will not impose any regulations or > sanctions that
> would curtail conservative talk radio to bring more diverse points > of view
> to the airwaves.
>
> Senate Finance ranking member Charles Grassley outlined his views in a
> letter sent today to Genachowski after learning that one of the FCC's
> recent hires -- Mark Lloyd, who has filled the new position of > associate
> general counsel and chief diversity officer -- previously argued > that radio
> programming is "imbalanced."
>
> While working as a senior fellow at the Center for American Progress > and
> as a Georgetown University professor, Lloyd maintained that the > Fairness
> Doctrine, a long-defunct rule that required broadcasters to air > opposing
> viewpoints, wasn't formally repealed because the Supreme Court never
> overturned cases permitting its enforcement. The FCC rescinded the > rule in
> 1987, and the decision was upheld by a federal appeals court.
>
> FCC spokesmen did not return phone calls and Lloyd declined to > comment.
>
> Republicans worry that Democrats want to reinstate the doctrine to > clamp
> down on radio commentators such as Rush Limbaugh and Sean Hannity, > who have
> proven adept at influencing public opinion and rallying conservatives.
>
> Genachowski testified at his Senate confirmation hearing in May that > he
> would not revive the Fairness Doctrine. He also gave private > assurances to
> several lawmakers, including Grassley, who revealed today he has > "serious
> reservations" about those commitments.
>
> The senator is worried that the Genachowski-led FCC might pursue a
> backdoor version of the doctrine that would have the same effect as > the
> earlier rule. "I ask you to affirmatively state that you will not > pursue an
> agenda that includes any new restrictions, fines, fees, or licensing
> requirements on commercial radio that would effectively create a > back door
> Fairness Doctrine," Grassley wrote in his missive, requesting a > "prompt
> reply regarding this important matter."
>
> Lloyd, who most recently worked at the Leadership Conference on Civil
> Rights, recommended steps that regulators can take to ensure a more > diverse
> radio landscape, including a tougher license renewal process and > slapping
> station owners with hefty fines if they fail to satisfy public > interest
> obligations.
>
> "I do not believe that more regulation, more taxes or fines, or > increased
> government intervention in the commercial radio market will serve the
> public interest or further the goals of diversifying the marketplace,"
> Grassley insisted.
>
>
> http://www.nationaljournal.com/congressdai...090817_7208.php
>
> -----
> WHITE HOUSE: OBAMA DEALS WITH HEALTHCARE CURVE BALL
> By George E. Condon Jr.
>
>
> This is not the August either the White House or the Democratic > leadership
> in Congress planned. Not even close. Caught by surprise by the > vehement
> attacks on healthcare reform, President Obama has been thrown on the
> defensive and forced to take his message on the road in a far more
> aggressive manner than previously envisioned.
>
> "This August has been quite the opposite of what they anticipated," > said
> Republican strategist and longtime Capitol Hill aide Rich Galen, who > most
> recently worked for Texas Sen. Kay Bailey Hutchison and believes many
> Democrats have been shaken by what they have encountered back in their
> districts.
>
> "I've been on and off the Hill for 30 years and I have to tell you > those
> members -- especially the Blue Dogs -- are going to come back and > hit that
> cloakroom the first day back after Labor Day, and there are going to > be
> horror stories," he said.
>
> On the eve of the House recess, Speaker Pelosi talked hopefully about
> August being "a month of education" and "a month of communication." > She did
> not foresee a month of confrontation at town hall meetings dominated > by
> fury at the Democrats' attempts to overhaul health care.
>
> "They just missed the emotion that the healthcare debate would > generate,"
> said Jim Duffy, a veteran Democratic strategist who has advised many
> members of Congress. "They thought it would be a rational discussion > and in
> fact it has turned into a very irrational discussion and they have > really
> lost control of the dialogue."
>
> Ruefully, Duffy concluded that the White House is no longer playing
> offense and is stuck on defense. "I can't be critical of them > because I
> didn't see this coming either ... Sometimes big waves come in and > you've
> got to deal with them. And this is a big wave."
>
> Boston-based Democratic strategist Mary Anne Marsh said Obama has been
> forced to spend the month "trying to get the healthcare debate back on
> track. The question is how much damage has been done and how much > can they
> do to regain even footing, let alone momentum, going into the fall."
>
> The turnaround for the White House was as swift as it was > unexpected. It
> can be dated to July 5, when the president departed for a weeklong > trip to
> Russia, Italy and Africa.
>
> If the healthcare debate were not at a critical juncture, the trip > would
> be judged a success as it produced triumphant photos of Obama > meeting with
> presidents, prime ministers and the pope. But with health care still
> dominating the agenda back home, opponents used the president's time > away
> to pounce.
>
> The message drifted, most notably when White House Chief of Staff > Emanuel
> July 7 told the Wall Street Journal that the public option was > negotiable.
>> From Moscow, the president had to correct his top aide and restate >> that the
> public option was a top priority for him. But the damage was done.
>
> "As soon as there was lack of clarity, the Republicans jumped on it. > They
> raised questions that weren't answered," said Tom Rath, an > influential New
> Hampshire Republican. Obama's public approval, which was at 60 > percent when
> he started the trip, is below 50 percent a month later in some polls.
>
> Once they realized the damage, the White House put Obama on the road > to
> fight back. "He's got the right message now and a better approach. > At these
> town hall meetings ... no one is better at it than he is," said > Marsh. "But
> this is clearly not the game plan they had."
>
>
> http://www.nationaljournal.com/congressdai...090817_1633.php
>
> -----
> DEFENSE: ARMY READIES DRAFT OF MODERNIZATION PLAN
> By Megan Scully
>
>
> Just months after the termination of its $160 billion Future Combat
> Systems program, the Army is on track to complete by Labor Day a new
> outline for how it plans to modernize its fighting forces, according > to a
> senior Army official.
>
> Lt. Gen. Michael Vane, who is overseeing a task force created after > the
> FCS program's demise, said in an interview Friday that his group > will be
> ready to brief Army leaders on its conclusions in early September.
>
> Included in its assessment will be the task force's recommendations on
> operational requirements for a new ground combat vehicle for the > Army, as
> well as directions on how the Army should get new equipment to combat
> brigades.
>
> Vane, director of the Training and Doctrine Command's Army > Capabilities
> Integration Center, said the task force has relied heavily on field > lessons
> learned from the U.S. military and allies during operations in Iraq > and
> Afghanistan to help guide their work.
>
> The Army launched the FCS program nearly a decade ago. It planned > eight
> types of manned ground vehicles with a common chassis as the basis > of its
> modernization strategy.
>
> But in April, Defense Secretary Gates announced plans to kill the > 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 officially ended the FCS program and directed > the
> Army to devise a modernization strategy made up of separate > programs. The
> service plans to pursue many of the other technologies developed > under FCS
> - such as unmanned air and ground vehicles -- but those efforts will > now be
> called Army Brigade Combat Team Modernization.
>
> The task force's charter is broad, but Vane said the requirements > for the
> vehicles are probably the group's most anticipated product.
>
> "The Army has had not a lot of fair luck here in getting a new combat
> vehicle," Vane said, alluding to several program cancellations over > the
> last 30-40 years.
>
> The vehicle's specific details - such as weight and whether it will be
> wheeled or tracked - will be decided later. But the requirements set > by the
> task force early next month will lay the groundwork for the design > and put
> the Army on course to begin fielding the vehicles in the next five > to seven
> years.
>
> Vane said he has put a premium on establishing a feasible set of
> requirements.
>
> He also said the task force will recommend which types of vehicles > deserve
> a high priority on developing and fielding. While all decisions are > not
> final, Vane indicated he would support putting a new command-and-> control
> vehicle and an infantry fighting vehicle "near the top" of that list.
>
> When Gates announced his intent to end the FCS ground vehicles, Army
> leaders did not hide their initial resistance. Army Chief of Staff > George
> Casey said in May he had been unable to convince Gates that the > service had
> taken into account enough of the lessons learned from the current > fighting.
>
> Vane acknowledged "change is painful," but added that the decision > is a
> positive move for the Army.
>
> "From where I sit, it really is an opportunity," he said. "It has > been an
> opportunity to re-look where we've been with the program, where > we've been
> with our requirements."
>
>
> http://www.nationaljournal.com/congressdai...090817_9654.php
>
> -----
> BUDGET: APPROPRIATORS, OBAMA AGREE ON TERMINATIONS
> By Humberto Sanchez
>
>
> House and Senate appropriators plan to ax 11 of the 48 discretionary,
> nonmilitary programs targeted for termination earlier this year by
> President Obama, according to an analysis of FY10 budget documents and
> appropriations bills.
>
> Appropriators' relatively low degree of compliance with Obama's > requests,
> which amounts to ending about 23 percent of the programs he sought > to kill,
> highlights the tension between the president's desire to cut federal
> spending and Congress' penchant to consistently fund programs they > deem a
> priority.
>
> In the case of the remaining 37 nondefense discretionary programs, > House
> or Senate appropriators, or both, recommended maintaining funding. > To date,
> the House has cleared all 12 annual spending bills and the Senate has
> completed four.
>
> Once both houses adopt their respective versions of the bills, they > will
> reconcile any differences in conference. That would provide another
> opportunity to cut additional programs.
>
> "The game isn't over until the bills are written," said Steve Ellis, > vice
> president of Taxpayers for Common Sense, a nonpartisan interest group.
> "It's up to the administration to keep [Congress'] feet to the fire."
>
> In May Obama released a hit list of 121 programs, mandatory and
> discretionary, that he recommended be terminated or cut, with a total
> savings of $17 billion. About half of the savings would come from > defense
> programs and almost $12 billion would come from discretionary > spending.
>
> Proposed cuts in the defense budget include terminating the F-22 > fighter
> program, which received $2.9 billion in FY09. The House has agreed > to the
> cut, but the Senate Appropriations Committee has not taken up its > Defense
> Appropriations bill.
>
> Of the 11 programs on the chopping block, the most money would be > saved by
> cutting the Safe and Drug-Free Schools and Communities State Grant > program,
> which received $295 million in FY09. It is administered by the > Education
> Department.
>
> The program provides formula funds intended to help create and > maintain
> drug-free, safe, and orderly environments for learning in and around
> schools. But the administration -- citing a 2001 Rand Drug Policy > Research
> Center study and a 2007 assessment by the program's advisory > committee -
> contends the program is poorly designed.
>
> "The program does not focus on the schools most in need and the thin
> distribution of funding prevents many local administrators from > designing
> and implementing meaningful interventions," the White House said in > its
> budget.
>
> Schools would be better served if the federal government instead > provided
> competitive grants to concentrate a greater amount of funding to > school
> districts with a demonstrated need, the White House said. The House > and
> Senate Appropriations committees agreed with the White House's > assessment
> and provided no funding for it.
>
> Cancellation of another Education Department program, the Student
> Mentoring Program, would save $47 million, the amount it received in > FY09.
>
> "In March 2009, the Department's Institute of Education Sciences > completed
> a rigorous multi-year evaluation, which found this program to be
> ineffective," the House Appropriations Committee said in its FY10 > Labor-HHS
> spending bill, which was approved by the full House last month.
>
> Cutting the Labor Department's Work Incentive Grants would save $17
> million, which was what Congress provided in FY09.
>
> Obama also sought to cut the Energy Department's Reliable Replacement
> Warhead program. Congress did not fund the program in FY09 and plans > to
> agree to Obama's request for FY10.
>
>
> http://www.nationaljournal.com/congressdai...090817_4585.php
>
> -----
> HILL BRIEFS: ADMINISTRATION ENTERS FORESTRY ROAD FRAY
>
> Agriculture. The Obama administration will defend the Clinton-era > forestry
> roadless rule in the federal courts, but it will develop a rule if the
> courts cannot straighten out the litigation surrounding it, > Agriculture
> Secretary Vilsack said in Seattle Friday. Vilsack addressed the > roadless
> rule issue as part of a speech in which he said restoration of the > nation's
> public and private forests would be the theme of Obama administration
> forestry policy. The Clinton administration wrote a rule stating > that roads
> would not be built in sections of forests where roads did not exist. > The
> Bush administration replaced it with one under which governors could
> petition the Forest Service to protect roadless areas. > Environmentalists
> appealed the Bush rule, and the 9th U.S. Circuit Court of Appeals
> reinstated the rule this month. But a district court in Wyoming > struck down
> the ban in 2008 and environmentalists have appealed that decision to > the
> 10th U.S. Circuit in Denver, which has not ruled. The Justice > Department
> joined that case Thursday. "We have two conflicting court decisions > -- one
> requiring the Forest Service to implement the 2001 rule and one > prohibiting
> it from doing so," a Vilsack spokesman said in an e-mail today. "It's
> possible that roadless policy may be worked out in the courts, > though we
> won't know for some time. ... If the courts don't resolve roadless > policy,
> then a national policy will be necessary."
>
>
> http://www.nationaljournal.com/congressdai...090817_7527.php
>
> -----
> HILL BRIEFS: FOREIGNERS BUY MORE TREASURY SECURITIES
>
> Finance. Foreign demand for long-term U.S. financial assets > rebounded in
> June even though China and Russia trimmed their holdings, the Treasury
> Department said today. According to the department, foreigners > purchased
> $90.7 billion more in long-term U.S. securities than they sold in > June, a
> significant rebound from May, when they sold $19.4 billion more than > they
> purchased. The Treasury is auctioning record amounts of debt to > cover what
> it estimates will be a $1.85 trillion budget deficit this year. If > overseas
> buyers do not continue purchasing U.S. debt, some economists worry > that
> would mean falling demand at Treasury debt auctions and rising > interest
> rates, the Associated Press reported. China, the largest foreign > holder of
> U.S. Treasury securities, trimmed its holdings to $776.4 billion in > June
> from $801.5 billion in May while Russia reduced its holdings 3.7 > percent to
> $119.9 billion.
>
>
> http://www.nationaljournal.com/congressdai...090817_2611.php
>
> -----
> HILL BRIEFS: CONGRESS URGED TO RAISE DEBT LIMIT
>
> Budget. Steve Bartlett, president and chief executive of the Financial
> Services Roundtable, late last week urged congressional Democrats to > boost
> the $12.1 trillion debt limit. "This action is needed to maintain
> confidence in the full faith and credit of the U.S. government and > prevent
> uncertainty that would hinder our economic recovery. Inaction would
> undermine investor confidence in our financial markets, both at home > and
> abroad," he wrote in a letter Friday to House Speaker Pelosi and > Senate
> Majority Leader Reid. Bartlett also asked that Congress continue to > seek to
> cut spending to rein in the budget deficit, which China, the nation's
> largest creditor, has raised concerns about. The letter comes after
> Treasury Secretary Geithner this month urged lawmakers to raise the > debt
> limit, which was last increased as part of the $787 billion economic
> stimulus package enacted in February. The House approved increase to > $13
> trillion as part of the FY10 budget resolution, but the Senate has not
> acted. The Treasury has estimated that the current limit could be > reached
> as soon as mid-October.
>
>
> http://www.nationaljournal.com/congressdai...090817_4838.php
>
> -----
> HILL BRIEFS: MORE FARMERS SIGN UP FOR ACRE PROGRAM
>
> Agriculture. The farmer signup period for the new Average Crop Revenue
> Election program, an alternative to traditional commodity programs, > ended
> Friday, but the total number of farms signed up will not be known > until
> Sept. 30, an Agriculture Department spokesman said today. As of > Friday,
> 66,000 farms had signed up, but the final number is expected to be > higher,
> the spokesman said. Those 66,000 farms are a tiny fraction when > compared to
> the 1.3 million farms enrolled in traditional programs but a huge > increase
> from the 946 that had signed up by June. Producers who had initiated
> paperwork by Friday will be allowed to complete it and get required
> signatures from landlords "over the next few weeks," the spokesman > added.
> Farmers who choose ACRE will get payments triggered by a drop in > revenue
> from a crop in a state rather than a drop in price but they must > give up 20
> percent of their direct payments and all countercyclical payments. > ACRE
> participants will continue to be eligible for marketing loans, but > their
> loan rates are reduced by 30 percent.
>
>
> http://www.nationaljournal.com/congressdai...090817_9890.php
>
> -----
> POLITICAL ROUNDUP: MCMAHON CONFIRMS INTEREST IN SENATE RACE
>
> Connecticut. A spokesman for World Wrestling Entertainment CEO Linda
> McMahon confirmed reports that she was considering a bid as a > Republican
> for the seat held by Democratic Sen. Christopher Dodd, the Greenwich > Time
> reported. "Linda is considering a run for the U.S. Senate > representing the
> state of Connecticut," said Robert Zimmerman, WWE's vice president of
> corporate communications and public relations. "Should she decide to > run,
> Linda would step down as CEO and Vince McMahon [her husband] would > assume
> the duties of CEO in addition to his current position as chairman." > State
> GOP Chairman Christopher Healy called McMahon, who was appointed > this year
> to serve on the state Board of Education, "a very accomplished > business
> person, a loyal and generous supporter of the Connecticut Republican > Party,
> [and] a very good person." If she jumped in, she would join a > primary field
> that includes former Rep. Rob Simmons, state Sen. Sam Caligiuri and > former
> U.S. Ambassador to Ireland Tom Foley.
>
>
> http://www.nationaljournal.com/congressdai...090817_6090.php
>
> -----
> POLITICAL ROUNDUP: CRETUL PASSES ON GRAYSON CHALLENGE
>
> Florida. State House Speaker Larry Cretul, a Republican, has decided > not
> to run for the seat held by freshman Democratic Rep. Alan Grayson, the
> Ocala Star-Banner reported. Cretul made the decision after talking to
> family and friends. Other possible Republican contenders include > Orange
> County Mayor Rich Crotty and state Rep. Stephen Precourt.
>
>
> http://www.nationaljournal.com/congressdai...090817_7152.php
>
> -----
> POLITICAL ROUNDUP: HUTCHISON DECLARES CANDIDACY FOR GOVERNOR
>
> Texas. Republican Sen. Kay Bailey Hutchison formally announced today > she
> would challenge Republican Gov. Rick Perry. "It is with pride and > humility
> for history that I announce today that I am a candidate for governor > of
> Texas," said Hutchison. She has said she plans to resign her Senate > seat in
> October or November, pledged to fight President Obama's healthcare > overhaul
> "while I'm in the Senate," the Houston Chronicle reported. The > Democratic
> field seeking Hutchison's seat includes Houston Mayor Bill White and > former
> Comptroller John Sharp. Railroad Commissioners Elizabeth Ames Jones > and
> Michael Williams, state Sen. Florence Shapiro and former Secretary > of State
> Roger Williams are seeking the Republican nod.
>
>
> http://www.nationaljournal.com/congressdai...090817_9349.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "I thought he wanted to be a senator."
>
> -- Democrat Betty Castor, Florida GOP Sen. Mel Martinez's 2004 > opponent,
> expressing surprise in an interview with the St Petersburg Times by
> Martinez's decision to not complete his term. She said she was > surprised
> that someone who waged a tough and costly campaign for a Senate seat > would
> walk away from it.
>
>
> http://www.nationaljournal.com/congressdai...090817_7442.php
>

[Snuffysmith]

CongressDaily PM for Thursday, Aug. 20, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: OBAMA TO JOIN NEGOTIATORS ON CALL TONIGHT
> By Kasie Hunt, with George E. Condon Jr. contributing
>
>
> President Obama tonight will join telephone negotiations among the > group
> of six Finance Committee senators to push for bipartisan healthcare > reform
> as Senate Democratic leaders draw up plans to pass legislation with > only
> Democratic votes if those discussions fail to produce a bill by
> mid-September.
>
> The six senators, led by Finance Chairman Max Baucus and joined by
> committee and leadership staffers, will discuss progress on their work
> during the recess, aides said. Senate leaders are not expecting
> developments to emerge from the 9 p.m. call, a leadership aide said.
>
> Still, the senators are expected to discuss constituents' reactions at
> town hall meetings. Iowans' reactions have prompted Finance ranking > member
> Charles Grassley to talk about limiting the breadth of any overhaul.
>
> Meanwhile, leaders are working on plans to split comprehensive > legislation
> into two pieces and pass contentious financing provisions with the > help of
> budget reconciliation as permitted by this year's budget resolution. > While
> that process could limit the scope of reform, leadership aides said > the
> process could be stretched farther than initially anticipated.
>
> "We think we can do a little bit more than what we had previously
> thought," a Democratic leadership aide said. "But again, it's far > short of
> comprehensive healthcare reform. This is not a silver bullet; this > is not
> the answer."
>
> The aide said the White House and Majority Leader Reid are holding > firm to
> a Sept. 15 deadline for the Finance Committee to produce bipartisan
> legislation.
>
> "Sen. Reid and the White House still want a bipartisan bill. We > haven't
> made a decision yet on reconciliation, but time is running out and > we are
> going to do whatever we can to try and get a bill out this year," > said Reid
> spokesman Jim Manley.
>
> Under reconciliation, federal subsidies to buy insurance, an > expansion of
> Medicaid and any new tax provisions would be combined into a bill that
> would require only 51 votes to pass. Republicans have warned Democrats
> against that approach.
>
> Other pieces of the healthcare package -- including insurance industry
> reforms and an individual mandate -- would be combined into a bill > that
> would be subject to the regular legislative process in the Senate. > It is
> unclear whether a public plan option or nonprofit healthcare > cooperatives
> could be created by a budget bill.
>
> Using reconciliation to split a comprehensive bill into pieces could > cause
> problems in the House.
>
> "I believe we need to do this a whole. It has to be comprehensive. > It's
> all a package and everybody is interlocked with each other and the > support
> depends on this comprehensive attitude," said Rep. Raul Grijalva, D-> Ariz.,
> a co-chairman of the Congressional Progressive Caucus. "To isolate the
> finances from a public option or from other parts of it and > jeopardize any
> of that is a mistake."
>
> Grijalva and other progressives sent a letter with more than 50 > signatures
> to House leaders this summer insisting that liberals would oppose > any bill
> without a strong public option.
>
> Raucous town hall meetings over the August recess have increased > pressure
> on lawmakers and complicated Democrats' health reform efforts. Obama > is
> planning a vacation next week, while lawmakers face at least two > more weeks
> of pressure from constituents before they return to Washington after > Labor
> Day.
>
> Grassley will face Iowans organized by liberal Health Care for > America Now
> at the Iowa state fair Friday as the conservative Club for Growth > takes to
> Iowa's airwaves with a new ad condemning Democrats' healthcare > priorities.
>
> The Club for Growth ad also is airing in Maine and Wyoming, home to > fellow
> Republican negotiators Sens. Olympia Snowe and Michael Enzi, > respectively.
>
>
> http://www.nationaljournal.com/congressdai...090820_6452.php
>
> -----
> HEALTH: OBAMA: HEALTHCARE BATTLE HAS GOTTEN 'MESSY'
> By George E. Condon Jr.
>
>
> President Obama ventured into the world of conservative talk radio > this
> afternoon, insisting he is not negotiating away his principles with
> Republicans but acknowledging that the fight for healthcare reform has
> gotten "messy."
>
> After a tough month of setbacks for his proposal, Obama spent almost > 30
> minutes pitching his plan on a show with mostly conservative > listeners with
> host Michael Smerconish, who is based in Philadelphia.
>
> But one of the most pointed questions came from "Joe of > Philadelphia," who
> said he supported Obama last year but now is "a little ticked off > because
> it feels like the knees are buckling a little bit" in sticking to his
> principles. Joe said it is "pretty frustrating to watch you" > negotiate with
> Republicans when Democrats have enough votes to push through what they
> want.
>
> But Obama denied he is selling out to the opposition. "I guarantee > you,
> Joe, we are going to get healthcare reform done," he said, adding > that he
> sees "a lot of people out there who have been handwringing and folks > in the
> press are following every little twist and turn of the legislative
> process." But he warned that "passing a big bill like this is always
> messy."
>
> He defended his efforts to get Republican support. "My attitude has > always
> been let's see if we can get this done with consensus. I would love > to have
> more Republicans engaged and involved in this process."
>
> But he said Republicans have made a political calculation to oppose
> reform. Despite that, he added, he will still seek "sensible > compromises."
>
> The president also insisted there has been no change in his desire > to have
> a public option included in any health legislation, contending that > the
> press misread comments Sunday by HHS Secretary Sebelius.
>
> "She really didn't misspeak," Obama said, insisting "she's been saying
> this all along. She said the same thing a month ago."
>
> He said a public option is just one of "a number of components of > health
> care" that he is fighting for. "What essentially she said was that all
> these other insurance reforms are just as important as the public > option.
> The press got a little excited and some folks on the left got a little
> excited about this. Our position hasn't changed."
>
> On another topic, the president defended the "cash for clunkers" > program
> while acknowledging the complaints of some auto dealers that the > government
> has been slow to reimburse them.
>
> "It has been successful beyond anybody's imagination," he said of the
> program. He said many dealers "were overwhelmed by applications." > But he
> said the delay "is a good news story" because of the record sales. And
> dealers, he said, "will get their money."
>
>
> http://www.nationaljournal.com/congressdai...090820_9940.php
>
> -----
> FINANCE: NONBANKS TAKE AIM AT REGULATORY AGENCY
> By Bill Swindell
>
>
> Overshadowed by the banking lobby, nonbanks ranging from mortgage > brokers
> to auto financers and title insurers are weighing in against a > proposed
> Consumer Financial Protection Agency, which would impose far greater
> regulation than they currently face.
>
> Such nonbanks are primarily regulated at the state level, but they > also
> are supervised by the FTC, although consumer activists contend the > agency
> is not equipped to aggressively provide oversight of abusive and > deceptive
> financial products.
>
> In contrast, banks regulated at the federal level are supervised by > three
> agencies in addition to a limited FTC role: the Federal Reserve, the > FDIC
> and either the Office of the Comptroller of the Currency or the > Office of
> Thrift Supervision.
>
> Under the Obama administration proposal and legislation sponsored by > House
> Financial Services Chairman Barney Frank, those federal regulators > would be
> stripped of their consumer protection duties and the sgency would be
> granted rule-writing, examination and enforcement powers for > products such
> as credit cards, mortgages, payday loans and credit insurance > products. The
> FTC would play a backup role.
>
> Industry has been uniform in its opposition to the plan and the U.S.
> Chamber of Commerce has organized a 23-member group to scuttle the > bill.
>
> But banks have been aided in their quest by regulators such as Federal
> Reserve Chairman Bernanke and Comptroller of Currency John Dugan who > argue
> their consumer protection function goes along with their mission to > ensure
> an institution's safety and soundness. That has given banks an upper > hand
> in their lobbying.
>
> FDIC Chairwoman Sheila Bair has proposed a compromise to leave > examination
> and enforcement for consumer protection to banking regulators while
> allowing the proposed agency to play a backup role in those services > with
> rule-writing authority.
>
> Bair said during a July 24 hearing in front of Frank's panel that the
> focus should be placed on the nonbanks because it is the "key to > addressing
> most of the abusive lending practices faced by consumers."
>
> Nonbanks are on guard against any deal that might ameliorate at > least some
> of the banks' concerns -- especially smaller institutions -- but > leave them
> out in the cold in a final bill.
>
> "The assumption is by some in Washington -- and even some of my sister
> trades at the banks -- to refer to [us] as the nonregulated. We take > great
> exception to that. There is a sense that if you are not regulated by > all
> the federal agencies then you are not regulated," said Bill Himpler > of the
> American Financial Services Association, which represents consumer > credit
> firms such as those that provide small-dollar personal loans and auto
> financing.
>
> Himpler noted that in a July meeting with Assistant Treasury Secretary
> Michael Barr two-thirds of the discussion was on the abuses in the > home
> mortgage market and the rest was on credit cards -- areas his > members are
> not involved with.
>
> "The proponents of this proposal have said the system is broke, we > need to
> fix it. But when they talk about the system being broke, it's > mortgages and
> credit cards. There is a heck of lot that doesn't fit into that > category
> from our members' perspective that ain't broke. Yet we get swept up > on it,"
> he noted.
>
> Roy DeLoach of the National Association of Mortgage Brokers said his > group
> also is concerned that banks could get an upper hand in the proposed
> agency, noting that it would have power to stop indirect > compensation in
> mortgage markets, such as yield spread premiums that allow a broker to
> garner a higher fee for moving a borrower into a loan at a higher > interest
> rate.
>
> DeLoach contends that banks, in comparison, build such costs into > their
> products by bumping up interest rates on loans that have no closing > costs.
> "You cannot possibly say you can ban indirect compensation," he said.
>
> But consumer advocates contend the new agency is needed because the
> current structure does not regulate nonbanks well when it comes to > consumer
> protection.
>
> Rep. Luis Gutierrez, D-Ill., has argued it is needed to protect > consumers
> "who are most vulnerable to predatory products" such as certain payday
> loans and remittance services.
>
> "They [nonbanks] all have been nominally regulated by the FTC. But > the FTC
> doesn't issue many rules. It takes it forever to issue some kind of > rules
> because of some procedures that Congress imposed on it years ago. It > acts
> on only large numbers of complaints," said Ed Mierzwinski, consumer > program
> director for the U.S. Public Interest Research Group.
>
>
> http://www.nationaljournal.com/congressdai...090820_8321.php
>
> -----
> SENATE: KENNEDY SUGGESTS CHANGE IN SUCCESSION LAW
> By Dan Friedman
>
>
> Sen. Edward Kennedy, D-Mass, has asked Massachusetts lawmakers to > change
> state law to allow the governor to appoint a temporary successor > during the
> five months before a special election could be held, a step that could
> ensure Senate Democrats keep a vital vote this fall.
>
> But while the letter has started talks in the state's heavily > Democratic
> legislature about altering the special election law, state lawmakers > are
> resistant to changing the process and could likely not pass a bill > until
> October at the earliest, a senior Statehouse aide said.
>
> When Sen. John Kerry, D-Mass., sought the presidency in 2004, the
> legislature eliminated then-Republican Gov. Mitt Romney's power to > appoint
> a successor, instead requiring a special election in 145 to 160 days > with
> the seat vacant in the interim.
>
> That change has become problematic for Senate Democrats. Although > Kennedy,
> who has been battling brain cancer, has not voted for months, > Democrats
> believe he would be available for crucial votes on healthcare and > other key
> bills. That gives Democrats 60 votes, enough to overcome GOP > filibusters
> and potentially a pass a healthcare bill on a party-line vote.
>
> Aides insisted Kennedy's letter is not a sign of rapidly failing > health,
> but the senator and top Senate Democrats are well aware that his death
> would leave them with 59 votes for months under current law.
>
> In his letter to Gov. Deval Patrick, state Senate President Therese > Murray
> and House Speaker Robert DeLeo, Kennedy said he backs the current > state
> law, but believes 'it is vital for this Commonwealth to have two > voices
> speaking for the needs of its citizens. ... I therefore am writing > to urge
> you to work together to amend the law through the normal legislative
> process to provide for a temporary gubernatorial appointment until a
> special election occurs."
>
> Kennedy urged Patrick to get from the appointee a pledge not to run > for
> the office in the special election.
>
> The letter is dated July 2, but was not sent until this week. A > Kennedy
> spokesman said it was released due to media inquires into talks about
> changing the appointment law.
>
> Occasional discussions about a bill began in late 2008 when Kerry was
> considered a possible pick for secretary of state, Senate aides and
> Massachusetts officials said. Kerry's office said today he has been
> discussing the change with Kennedy since early summer.
>
> But the senior statehouse aide said last week there were no talks then
> among local lawmakers about altering the appointment process. The > letter
> "has now sparked a discussion about what our process is," the aide > said.
>
> But the official said senior state lawmakers have concerns about > changes,
> including "how do we expect this person to keep their agreement and > not
> [seek election?]."
>
> State legislators also are on recess until next month and enacting > changes
> would likely take a month or more, the official noted.
>
> It is not clear how much weight Kennedy's wishes carry with top > statehouse
> lawmakers like Murray and DeLeo, both of whom announced opposition to
> changing the law last year.
>
> At the time, Patrick "wanted the appointment back," the Statehouse > aide
> said. Other supporters included Democratic Reps. Michael Capuano and > Steven
> Lynch, both of whom signaled interest in the seat and are considered > likely
> candidates.
>
> Capuano was an early Patrick backer in his gubernatorial bid and > hoped for
> the appointment if the law was changed, according to local political
> officials. Spokesmen for both not did not respond to inquires today.
>
> Other potential candidates for the seat include Attorney General > Martha
> Coakley and other members of the congressional delegation, such as > Rep.
> John Tierney, who would not risk their seats to run, according to > political
> consultants and state officials.
>
> House Financial Services Chairman Barney Frank would not run and it is
> unclear if Rep. Edward Markey would give up his House seniority, > observers
> said.
>
> Observers also believe former Rep. Joseph Kennedy, the senator's > nephew,
> has begun to more seriously weigh a run, a step that would complicate
> campaigns by non-Kennedy family members.
>
> Sen. Kennedy's wife, Vicki Reggie Kennedy, once considered a potential
> successor, is not planning to run and would not have Kennedy family > backing
> if she did, said sources citing conversations with family members.
>
>
> http://www.nationaljournal.com/congressdai...090820_7601.php
>
> -----
> BUDGET: GROUP FINDS EARMARKS DROP IN FY10 APPROPS
> By Humberto Sanchez
>
>
> The amount of money earmarked in FY10 spending bills has dropped > more than
> $880 million, or about 30 percent, from FY09, according to a > preliminary
> analysis by Citizens Against Government Waste of nine appropriation > bills.
>
> The nonpartisan spending watchdog group has tallied the earmarks in > seven
> of the House spending bills and the Senate Agriculture and Homeland
> Security appropriations bills. The total amount of earmark funding > for the
> nine bills dropped to $1.99 billion in FY10 from $2.87 billion in > FY09.
>
> "Of course we have to wait until the end to see where it all comes > out ...
> but it is definitely moving in a positive direction," said CAGW > President
> Tom Schatz. While he stressed the analysis is very preliminary, > "it's about
> as good as we can get so far."
>
> The group attributed the decline to increased exposure and pressure > from
> taxpayers and anti-earmark groups to answer for the line items, > along with
> consistent pressure from anti-earmark crusaders like Rep. Jeff Flake,
> R-Ariz., and Sen. Tom Coburn, R-Okla.
>
> "There are always some members, like former Senate Appropriations > Chairman
> Robert Byrd ... who are unabashed and unrepentant, but we think that a
> significant percentage of members have become a bit squeamish about > having
> to answer for these earmarks, who recognize that some of them will
> inevitably lead to damaging scandals and that the system is broken," > CAGW
> Media Director Leslie Page said.
>
> "They are on the defensive and are beginning to wonder if the practice
> isn't more trouble than it's worth," she added.
>
> The decline also comes after Democratic leaders in March implemented > new
> earmark rules for the FY10 appropriations cycle, which include > requirements
> that members must post their earmark requests on their Web sites, > certify
> that they have no financial interest associated with the request, > that the
> earmarks be subject to agency review, that they must be > competitively bid,
> and could be rescinded if requested by the White House.
>
> Of the nine bills the group studied, only two bills reflected > increases in
> earmarked funds. The House Interior-EPA spending bill showed an > increase to
> $156 million from $134.9 million in FY09, a 15 percent boost. The > Senate
> FY10 Agriculture bill posted $220.7 million in earmarks, nearly a 32
> percent increase over the $167.2 million provided in FY09.
>
> The largest percentage decrease came in the House Labor-HHS > Appropriations
> bill, which dropped 42.2 percent from $618.8 million in earmarks in > FY09 to
> $357.4 million in FY10.
>
> Earmark funding in the Financial Services Appropriations bill > declined 42
> percent to $33 million in FY10 from $57 million in this fiscal year.
>
> The Military Construction-VA bill shed earmark spending in FY10 by 36
> percent, to $394.8 million from $621.3 million, while earmarked > funding in
> the House Energy and Water spending bill slipped 30 percent to $574.4
> million from $821 million.
>
> The House Commerce-Justice-Science bill reduced earmarks spending by > 10.5
> percent to $366.7 million in FY10 from $409.8 in FY09.
>
> The Senate Homeland Security spending measure reduced its earmark > funding
> nearly 32 percent to $156.2 million from $229.6 million, while the > House
> Homeland Security bill scaled back its earmarked spending 8.7 > percent to
> $109.7 million next year from$120.1 million in the current fiscal > year.
>
>
> http://www.nationaljournal.com/congressdai...090820_5271.php
>
> -----
> DEFENSE: BATTLE BREWING OVER COMMAND AUTHORITY
> By Megan Scully
>
>
> A Pentagon proposal to give the federal government greater authority > to
> mobilize and command Army, Air Force Navy and Marine Corps Reserve > units
> during domestic disasters and emergencies is on a collision course > with
> National Guard boosters on Capitol Hill who favor giving governors > tactical
> control over those federal military forces and Guard troops.
>
> The proposal was drafted as a possible amendment to the FY10 defense
> authorization bill. It would empower the Defense secretary to call > federal
> Reserve forces to active duty for disaster response. Current law > prohibits
> such forces from being activated to respond to natural disasters.
>
> But advocates of states' rights argue that the federal government > already
> has limited authority to call up federal Reserve forces for disaster > relief
> and law enforcement purposes. Current laws also allow military > commanders
> to respond to requests from local authorities to protect people and
> property in a crisis, they say.
>
> Under the Pentagon's proposal, federal reservists -- as opposed to
> National Guard personnel who are ordinarily under state control -- > would
> operate at the direction of the president. That is a major sticking > point
> for governors and Guard supporters, who prefer to have governors > direct all
> military forces in their states during emergencies.
>
> In a letter today to the leaders of the House and Senate Armed > Services
> Committees, the National Governors Association said it "remained > concerned"
> about the Pentagon's proposal and implored Congress to not act > hastily.
>
> "We strongly believe the consideration of any such proposals should be
> preceded by a discussion regarding the tactical control of forces > serving
> inside a state during a disaster response," the NGA wrote.
>
> Sens. Patrick Leahy, D-Vt., and Christopher (Kit) Bond, R-Mo., have > sided
> with the group by introducing a bill this summer that would give > governors
> tactical control over federal military forces deployed to support > National
> Guard forces during domestic emergencies.
>
> The bill, which makes other changes to boost the National Guard's > status,
> would "reduce confusion that sometimes exists when there is a domestic
> emergency about how National Guard forces, serving under a governor > during
> an emergency, will interact with active-duty forces that serve under > the
> president's command," Leahy said on the Senate floor in June.
>
> In a statement, Bond, a former governor, similarly argued that giving
> governors tactical control over all reserve forces would improve > responses
> to national emergencies.
>
> "Too often, state leaders are unable to deploy reserve units within > their
> state when a disaster occurs," Bond said this week. "Giving state > governors
> tactical control of federal troops in their states is an important > states'
> rights issue and will help military resources be used more swiftly and
> effectively to respond to disasters here at home."
>
> But the Pentagon argues that its proposal is intended to more > effectively
> mobilize federal assets during an emergency.
>
> "This authority would not apply to the Army or Air National Guard, but
> would greatly increase the number of personnel available to DoD when
> civilian authorities request department assistance," Paul Stockton,
> assistant secretary of Defense for homeland defense, wrote in a July > 20
> letter to the governors.
>
> Not surprisingly, the Senate bill drew strong praise from the National
> Governors Association, which praised the legislation in general - > and the
> provision on control of federal forces, in particular - in a July 13 > letter
> to Leahy and Bond, who are co-chairmen of the Senate National Guard > Caucus.
>
> In an Aug. 7 response to Stockton's letter, the governors argued > that the
> Penatgon's proposal "would invite confusion on critical command and > control
> issues, complicate interagency planning, establish stove-piped > response
> efforts, and interfere with governors' constitutional > responsibilities to
> ensure the safety and security of their citizens."
>
> Neither the Leahy-Bond provision on tactical control nor the > Pentagon's
> proposal was included in the House or Senate versions of the FY10 > defense
> authorization bill. At this stage of the process, conference > negotiators
> are likely to punt the issue to next year's session.
>
>
> http://www.nationaljournal.com/congressdai...090820_1844.php
>
> -----
> LABOR: PRESSURE MOUNTS TO EXTEND WORKER BENEFITS
> By Michael Posner
>
>
> With tens of thousands of longtime jobless workers expected to exhaust
> their unemployment benefits in the coming weeks, pressure could > build on
> Congress to extend federally funded unemployment compensation to > them once
> more.
>
> Despite signs the recession is easing, an estimated 1.5 million
> individuals are expected to run out of benefits by year's end, > driving a
> private and public push for legislation to continue compensation for > an
> additional 13 weeks.
>
> House Ways and Means Income Security Subcommittee Chairman Jim > McDermott,
> D-Wash., is pledging to get an extension through Congress, with > passage in
> the House in September. He has the support of House Ways and Means > Chairman
> Charles Rangel and the White House.
>
> "Today, there are at least five Americans looking for employment for > every
> one available job. And without extended benefits there will be a > gaping
> hole in the economic lifeboat these Americans are in through no > fault of
> their own," McDermott said when introducing extension legislation just
> before the August recess.
>
> Department statistics show that the national nonfarm unemployment rate
> stood at 9.4 percent, 14.5 million workers, in July. While the > jobless rate
> inched down from 9.5 percent in June, the situation was worse for the
> long-term unemployed. Those unemployed for six months or more jumped > by
> 584,000 in July to 5 million - one out of three jobless workers.
>
> By the end of September, about 500,000 workers will exhaust their
> federally funded unemployment compensation of 20 to 53 weeks, > according to
> the National Unemployment Law Project, a group seeking the > extension. By
> the end of this year, a million workers will lose their benefits, the
> organization said. Duration of benefits and compensation vary by > state.
>
> McDermott's bill will add 13 weeks of unemployment benefits for states
> whose average unemployment rate averages or is above 9 percent for > three
> months.
>
> Alabama, California, Florida, Georgia, Illinois, Indiana, Kentucky,
> Michigan, Mississippi, Nevada, North Carolina, Ohio, Oregon, > Pennsylvania,
> Rhode Island, South Carolina, Tennessee, Washington and Wisconsin, > along
> with the District of Columbia and Puerto Rico would qualify, he said.
> Others may meet the 9 percent threshold within months.
>
> A CBO cost estimate was not available, but the agency estimated a > similar
> bill signed into law in November would cost about $5.7 billion for > FY09.
>
> Republican supporters include fiscal conservative Sen. Jim DeMint of > South
> Carolina, who said this month he would back a 13-week extension.
>
>
> http://www.nationaljournal.com/congressdai...090820_1507.php
>
> -----
> HILL BRIEFS: REID URGES LAHOOD TO EXPEDITE CLUNKERS PAYMENTS
>
> Transportation. Senate Majority Leader Reid today pressed > Transportation
> Secretary LaHood to expedite reimbursements to auto dealers to pay for
> "cash for clunkers" rebates to convince auto dealers not to back out > of the
> program. A day after LaHood held a news conference to assure dealers > that
> vouchers will be reimbursed in a timely fashion, Reid in a letter to > LaHood
> said, "Notwithstanding these assurances, I believe that even more > certainty
> must be provided to dealers who participate in the program to ensure > its
> continued success." Reid suggested the department adopt a policy > requiring
> reimbursement within five business days after a voucher is properly
> submitted and for it to "continue adding staff and devoting > resources as
> need to meet this timeline." He said by doing those two things > "dealers
> will be more willing to place their capital at risk to carry the > cost of
> CARS vouchers until reimbursement, and more dealers will continue
> participating in the program, thereby maximizing the program's > objectives."
> Dealers have complained about a backlog of consumer vouchers that > put a
> "strain on dealers' balance sheets that, if prolonged, could > eventually
> offset some of the benefits of the program," Reid wrote.
>
>
> http://www.nationaljournal.com/congressdai...090820_3443.php
>
> -----
> HILL BRIEFS: BAUCUS, NEAL VOW MORE ACTION ON TAX EVASION
>
> Taxes. Despite the concession by Swiss banking giant UBS to allow IRS
> access to some accounts held by Americans suspected of evading U.S. > taxes,
> key lawmakers said they will continue attempts to give the IRS > additional
> power to combat tax evasion. "This settlement is an important step > in the
> fight against offshore tax fraud and I welcome the diligence the IRS > has
> shown to resolve this case. Still, the fight is far from over," Senate
> Finance Chairman Max Baucus said in a statement today. "I look > forward to
> examining the details of this settlement and will continue working > with the
> IRS to provide them the tools it needs to combat and prevent such > abuses."
> Finance ranking member Charles Grassley was less enthusiastic. "It's > not
> clear whether the UBS settlement is a good deal for the U.S. > taxpayers. It
> may be, but before I render that judgment, I need to know more, > including
> how the IRS whittled down 52,000 accounts to 4,450. And Switzerland > isn't
> the only country accommodating the evasion of U.S. taxes," he said. > House
> Ways and Means Select Revenue Subcommittee Chairman Richard Neal, D-> Mass.,
> said tax evasion costs the United States billions in tax dollars but > he
> said the UBS compromise, "along with stronger legislation that > Congress
> will be taking up soon, will put all tax offenders on notice that > the days
> of hiding money offshore are coming to an end."
>
>
> http://www.nationaljournal.com/congressdai...090820_8590.php
>
> -----
> HILL BRIEFS: SENATORS SEEK FUNDS FOR 12 MORE C-17S
>
> Defense. Eighteen senators today urged the leaders of the Senate
> Appropriations Committee to include funding for 12 C-17 Globemaster > III
> cargo aircraft in the FY10 Defense spending bill. In a letter to
> Appropriations Chairman Daniel Inouye and ranking member Thad > Cochran, the
> senators said the C-17 "has been critical in transporting troops and
> equipment to and from Iraq and Afghanistan and we do not see airlift > needs
> abating anytime soon." President Obama does not want to buy more > C-17s,
> arguing the 205 planes on order or delivered are adequate to meet the
> military's needs. The Boeing Co. planes have enjoyed widespread
> congressional support for years. "We are concerned that without > additional
> funding, our aerospace engineering, design and manufacturing base will
> atrophy, putting at risk our competitiveness in the global market, our
> ability to address future airlift requirements and put at risk 30,000
> American jobs stretched across 43 states," the senators wrote. Among > those
> signing the letter were Sens. Christopher Dodd, D-Conn., Barbara > Boxer,
> D-Calif., and Christopher (Kit) Bond, R-Mo. -- all of whom represent > states
> that would benefit from continued C-17 production. The House-passed > version
> of the FY10 Defense Appropriations bill includes $674 million for > three
> C-17s.
>
>
> http://www.nationaljournal.com/congressdai...090820_1328.php
>
> -----
> HILL BRIEFS: FEC MAY LET VISCLOSKY STAFFERS TAP CAMPAIGN FUND
>
> Campaign Finance. For the first time, the FEC is preparing to rule > that
> campaign funds can be used to pay some legal expenses of a member of
> Congress' current and former staffers -- not just the officeholders
> themselves. That's the opinion of FEC lawyers, released in draft > form today
> in connection with the ongoing FBI probe of the dissolved PMA > lobbying firm
> involving Rep. Peter Visclosky, D-Ind. The opinion notes > investigators are
> looking into "the alleged provision of illegal campaign > contributions by
> the PMA Group and its clients" and "Visclosky's allegedly improper
> earmarking of appropriations for clients of PMA." The FEC has cleared
> Visclosky to use campaign funds to pay his legal fees, finding the
> allegations relate to "his campaign and duties as a federal > officeholder."
> Now, based on that same reasoning, the lawyers say Visclosky's > current and
> former staffers in this matter can be covered. The opinion notes that
> Visclosky's former chief of staff "was served with a grand jury > subpoena to
> produce documents," though it does not identify Chuck Brimmer by > name. He
> left that job after receiving the subpoena in late May or early > June. The
> FEC is soliciting public comment on the opinion through Wednesday, and
> expects to vote on the matter the next day.
>
>
> http://www.nationaljournal.com/congressdai...090820_2881.php
>
> -----
> HILL BRIEFS: CFTC, SEC SET MEETINGS ON REGULATION
>
> Finance. The Commodity Futures Trading Commission and SEC today > announced
> they will hold joint meetings to hear from the public how they might
> harmonize separate regulation of financial markets. The first > meeting will
> be held Sept. 2 at the CFTC and the second Sept. 3 at the SEC. > President
> Obama in June asked both agencies to develop recommendations by > Sept. 30
> for changing laws and regulations to eliminate differences in how they
> regulate similar financial instruments. "Harmonizing our regulatory
> policies will improve market integrity by applying consistent > standards to
> market participants," said CFTC Chairman Gary Gensler.
>
>
> http://www.nationaljournal.com/congressdai...090820_5613.php
>
> -----
> HILL BRIEFS: CFTC ANNOUNCES DEAL ON ENERGY TRADES
>
> Energy. Commodity Futures Trading Commission Chairman Gary Gensler > made
> two announcements today indicating additional tightening of > regulation of
> energy markets. Gensler and United Kingdom Financial Services > Authority
> Chairman Adair, Lord Turner announced they have agreed to strengthen
> cross-border supervision of energy futures markets. U.S. and U.K.
> regulators said they would share data on energy contracts that are > linked
> between the countries, including enhanced direct access rights to > trade
> execution and audit trail data. "I believe that we must effectively > utilize
> all existing powers to ensure that futures markets remain free of
> manipulation, fraud, or other market abuses," Gensler said in a > statement.
> The CFTC also announced it will require ICE Futures Europe to > provide trade
> execution and audit trail data to the CFTC's Trade Surveillance > System for
> all of its linked contracts and take other actions to enable the > agency to
> track ICE Futures Europe transactions. The CFTC noted that ICE Futures
> Europe's cash-settled contracts are based upon the prices of contracts
> traded on the New York Mercantile Exchange, which is regulated by > the CFTC.
> The conditions will apply to any ICE Futures Europe contracts linked > to a
> CFTC-regulated exchange contract and those listed in the future, the > agency
> said.
>
>
> http://www.nationaljournal.com/congressdai...090820_9846.php
>
> -----
> HILL BRIEFS: FY09 DEFICIT MAY BE SLIGHTLY LESS, SOURCES SAY
>
> Budget. When the White House releases its midyear budget review next
> Tuesday it will show a slight improvement in the budget deficit, the
> Associated Press reported. That deficit will still set a record at > $1.58
> trillion for FY09, but that will be about $262 billion less than had > been
> predicted earlier in the year. Much of that was due to the > administration's
> decide not to tap a $250 billion contingency fund created in case more
> money was needed to help financial institutions. CBO will release its
> midsession report Tuesday, and it estimated in June a deficit of > $1.825
> trillion.
>
>
> http://www.nationaljournal.com/congressdai...090820_9246.php
>
> -----
> HILL BRIEFS: COLEMAN TO SPEND TIME AT HARVARD THIS FALL
>
> People. Former Sen. Norm Coleman, R-Minn., will serve as a Visiting > Fellow
> at Harvard's Institute of Politics in November. In that role, > Coleman will
> spend his time meeting with students, faculty and Harvard research > center
> staff. Joining Coleman as Visiting Fellows this fall will be former
> Democratic National Committee Chairman Terry McAuliffe and Austrian
> Minister for Foreign Affairs Ursula Plassnik. Among the six Resident
> Fellows this fall will be Stephanie Cutter, former adviser to > President
> Obama and senior adviser to Sens. Edward Kennedy, D-Mass., and Senate
> Majority Leader Reid; and Peggy Noonan, former special assistant to > the
> late President Ronald Reagan.
>
>
> http://www.nationaljournal.com/congressdai...090820_2472.php
>
> -----
> POLITICAL ROUNDUP: ETHERIDGE GIVES SENATE RACE ANOTHER LOOK
>
> North Carolina. After declining entreaties to run earlier this year,
> Democratic Rep. Bob Etheridge said Wednesday he is giving another > look at
> challenging Republican Sen. Richard Burr, The News & Observer > reported.
> "I'm evaluating it," Etheridge said Wednesday. Etheridge said he met
> recently with Senate Majority Leader Reid and has talked with his > family
> and supporters. He said he hoped to make a decision by next month. > Other
> possible candidates include former state Sen. Cal Cunningham, Chapel > Hill
> Mayor Kevin Foy, Secretary of State Elaine Marshall and former Lt. > Gov.
> Dennis Wicker.
>
>
> http://www.nationaljournal.com/congressdai...090820_2384.php
>
> -----
> POLITICAL ROUNDUP: WILLIAMS TO SEEK APPOINTMENT TO SENATE SEAT
>
> Texas. Railroad Commission Chairman Michael Williams, a Republican, > said
> Wednesday he plans to actively lobby to be appointed to the seat > Republican
> Sen. Kay Bailey Hutchison will vacate, the Dallas Morning News > reported.
> Williams is believed to be among possible candidates Republican Gov. > Rick
> Perry might pick. Others include Lt. Gov. David Dewhurst, state Sen.
> Florence Shapiro, former Secretary of State Roger Williams and > Railroad
> Commissioner Elizabeth Ames Jones. Williams is also a declared > candidate
> for the seat.
>
>
> http://www.nationaljournal.com/congressdai...090820_4251.php
>
> -----
> POLITICAL ROUNDUP: CHAFFETZ RESERVES CHAFFETZFORSENATE.COM
>
> Utah. Republican Rep. Jason Chaffetz last month reserved
> ChaffetzForSenate.com as a domain name. The freshman lawmaker who > ousted
> GOP Rep. Chris Cannon last year told KCPW News that he was setting > it aside
> to keep his options open. "I reserved a whole set of combinations > for a
> variety of different offices," he said. "You just don't want to have > some
> smart aleck go out there and try to get it and try to extort > something out
> of you for it, so we grabbed a variety of different offices." Last > month,
> Chaffetz said he has been encouraged by supporters to take on > Republican
> Sen. Robert Bennett, who is seeking re-election next year. Chaffetz > said he
> will announce his plans early next year. Several Republican are > seeking to
> challenge Bennett, including state Attorney General Mark Shurtleff and
> businessman Tim Bridgewater.
>
>
> http://www.nationaljournal.com/congressdai...090820_9646.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "I haven't done anything legally wrong."
>
> -- Sen. John Ensign, R-Nev., telling a Chamber of Commerce luncheon in
> Fernley, Nev., Wednesday that his affair with a friend's wife was > different
> from former President Bill Clinton's relationship with a White House > intern
> because he did not lie about it under oath.
>
>
> http://www.nationaljournal.com/congressdai...090820_7033.php

[Snuffysmith]

> CongressDaily PM for Friday, Aug. 21, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: HOYER SAYS BILL, NOT PUBLIC OPTION, THE GOAL
> By Kasie Hunt and Billy House, with George E. Condon Jr. contributing
>
>
> Democrats might have to give up on a public health insurance option if
> they want to pass an overhaul bill, House Majority Leader Hoyer said > this
> afternoon.
>
> "I'm for a public option. But I'm also for passing a bill," Hoyer > said on
> a conference call with reporters.
>
> Hoyer's comments seem to contradict those from House Speaker Pelosi, > who
> Thursday insisted a bill without a government-run insurance plan to > compete
> with private insurance could not pass. "There's no way I can pass a > bill in
> the House of Representatives without a public option," Pelosi said.
>
> Three House committees have passed bills that include a public > option, and
> the versions are being melded. The Senate Health, Education, Labor and
> Pensions Committee's version of the overhaul also includes a > government-run
> plan.
>
> Both House and Senate leaders are waiting on bipartisan negotiations > among
> six Finance Committee senators, who talked last night via > teleconference.
>
> They discussed constituents' reactions to the healthcare overhaul - > many
> town halls over the August recess have been swamped by protesters -- > and
> talked about ways to bring down the cost of the bill. Before the > recess,
> Finance Chairman Max Baucus said the committee's bill would come in > under
> $900 billion.
>
> In a statement issued Thursday after the approximately 90-minute call,
> Baucus called the talks productive and said the senators will talk > again
> before the Senate returns in September.
>
> "Our discussion included an increased emphasis on affordability and
> reducing costs, and our efforts moving forward will reflect that > focus,"
> Baucus said.
>
> President Obama met today with former Senate Majority Leader Tom > Daschle,
> D-S.D., who he had wanted to lead the reform effort as HHS > secretary, to
> discuss reaction from the call and other health reform issues.
>
> White House Press Secretary Robert Gibbs said administration > officials had
> been briefed on the Senate Finance negotiations and that "the report > from
> the phone call was they were making progress."
>
> Gibbs said administration surrogates will keep the administration's > push
> for healthcare reform alive while Obama is on vacation, and health > care
> will be the subject of the president's Saturday morning radio address.
>
> Senators discussed the possibility of limiting the scope of the > overhaul,
> sources said, an idea that Finance ranking member Charles Grassley has
> floated in recent days.
>
> Senate leaders have set a Sept. 15 deadline for the bipartisan
> negotiations, and are exploring ways to pass a bill without Republican
> votes. Senate leadership is considering splitting the bill into two > pieces
> and using the reconciliation instructions included in the budget > resolution
> to pass the controversial revenue pieces of the health system > overhaul.
>
> Pressure on the bipartisan group of six has escalated over the > recess, and
> lawmakers still face two more weeks before they return to Washington.
>
> To keep up the pressure, the liberal Americans United for Change began
> airing ads on cable news today calling private insurance companies > the true
> "death panels" because of their refusals to pay for critical care.
>
> The "low five-figure" ad campaign, slated to start early next week,
> features emotional testimony from former Humana and Blue Cross/Blue > Shield
> official Linda Peeno talking about denials of care she approved.
>
> The ad is a response to Republican claims that end-of-life provisions
> included in the House bill would lead to the government making
> life-and-death decisions for patients. Those provisions have already > been
> stripped from the Finance Committee's bill.
>
>
> http://www.nationaljournal.com/congressdai...090821_1508.php
>
> -----
> TAXES: RETAILERS, STATES EYE ONLINE SALES TAXES AGAIN
> By Peter Cohn
>
>
> A diverse coalition including retailers, real estate firms and state
> governments this fall is set to renew its decade-long push to require
> collection of online sales tax on out-of-state purchases.
>
> Aides to Sen. Michael Enzi, R-Wyo., and Rep. William Delahunt, D-> Mass.,
> said they are working on revamped versions of measures they > introduced in
> the 110th and previous Congresses, although there is no timeline for
> introduction. Sources said they expect the "Main Street Fairness > Act" to be
> unveiled as early as September.
>
> Under a 1992 Supreme Court decision, retailers are not required to > collect
> sales tax on online purchases in states where they do not have a > physical
> presence, such as a warehouse, store or distribution center, > although some
> states have passed laws requiring online collections.
>
> Supporters claim that leaves brick-and-mortar stores victimized by > online
> retailers like Amazon and eBay that generally do not have to collect > the
> tax and deprives states of billions of dollars in tax receipts > annually.
>
> Earlier this year, the jewelry stores' trade association wrote Enzi > and
> Delahunt urging them to move quickly. Jewelers said they have been > hurt by
> consumers browsing to get a sense of what they wanted, and then > heading
> home to buy at online vendors like Blue Nile to avoid sales tax.
>
> "Internet retailers should not receive a tax advantage at the > expense of
> traditional retailers and state and local governments," say August > talking
> points from the International Council of Shopping Centers.
>
> Opponents argue major chains such as Sears, JCPenney and Best Buy are
> selling more of their goods online, as opposed to a decade ago, > collecting
> tax on online sales in most states.
>
> While they have to collect sales tax everywhere they have a physical
> presence -- which is in most states - they have still become major > players
> in the online market.
>
> "There is widespread acknowledgement this problem is rapidly solving
> itself," said NetChoice executive director Steve DelBianco.
>
> DelBianco's group represents online vendors that argue the big > retailers
> are merely seeking a competitive advantage over smaller firms that are
> increasingly moving to the Web.
>
> He said states still have not come up with a viable way to > streamline the
> system among nearly 8,000 separate state and local taxing > jurisdictions.
> And, he said, there needs to be adequate compensation for the cost of
> complying with tax collections, which PricewaterhouseCoopers has found
> disproportionately hits smaller retailers.
>
> Tod Cohen, vice president for global government relations at eBay, > said
> "efforts to expand sales taxes should not harm small business > retailers who
> use the Internet to provide great service to consumers across the > country,
> and for whom new burdens and tax expenses would add to the already > great
> challenges of competing with mega-retail giants."
>
> On the other hand, Amazon has said if Congress were to pass a bill > that
> became law, it should be applied evenly, regardless of a business' > size.
>
> Advocates lobbied to include the legislation in the economic stimulus
> package this year, and National Conference of State Legislatures > federal
> affairs counsel Neal Osten said administration officials were > sympathetic.
>
> "States are still hurting, and 2010 will not be much better," Osten > said.
> "This is not a new tax; it's a tax that's already being levied. This > is
> just a means for collecting it. ... What also resonates is that this > is
> something that is not going to add to the deficit. That sells."
>
> An Internet industry official was skeptical the Obama administration > would
> sign off on the proposal and said at this point there was little > reason to
> believe the Enzi-Delahunt bill would fare better than in previous > years.
>
> For example, Senate Finance Chairman Max Baucus' home state of > Montana has
> no sales tax, yet remote sellers based there would have to begin > collecting
> the tax when shipping to out-of-state consumers. "I would regard with
> appropriate skepticism the notion that this is ready for the launch > pad,"
> he said.
>
>
> http://www.nationaljournal.com/congressdai...090821_2299.php
>
> -----
> CAMPAIGN FINANCE: HIGH PROFILE CASE SPURS GROUPS INTO ACTION
> By Carrie Dann
>
>
> With the Capitol emptied of lawmakers for the August recess, > government
> watchdog groups and free-speech advocates are turning their attention
> across the street to the Supreme Court, where a blockbuster case > next month
> could transform the role of corporations and unions in financing > elections.
>
> The Supreme Court announced in June it would rehear the case, Citizens
> United v. Federal Election Commission, on Sept. 9, requesting that > oral
> arguments specifically address two precedents addressing whether > corporate
> and labor groups can use their general funds to pay for advertising or
> other forms of communication for or against a particular candidate.
>
> And this week, the high court said it would allow an attorney for > Senate
> Minority Leader McConnell, a litigant in a precedent-setting 2003 > campaign
> finance decision, to speak at the hearing.
>
> The consumer advocacy group Public Citizen launched a campaign this > week
> to organize demonstrations around the country on the day the case is
> reheard.
>
> "The Supreme Court is on the precipice of taking a 100-year step > backward,
> and nobody knows about it," said David Arkush, director of Public > Citizen's
> Congress Watch project.
>
> Acknowledging the difficulty of launching an advocacy campaign > around a
> matter pending before the court, Arkush said the goal of the > campaign is to
> build awareness of the case and plant the seeds of a grassroots > movement to
> neutralize corporate influence in politics.
>
> "If the court goes the wrong way, this could start building the > beginnings
> of a movement to counteract the Supreme Court's decision," he said.
>
> The Citizens United case deals with a conservative interest group's > 2008
> documentary critical of then-presidential candidate Sen. Hillary > Rodham
> Clinton, D-N.Y., that was partly underwritten by direct corporate > spending.
>
> The court will consider whether to reverse part of its 2003 decision > in
> McConnell v. Federal Election Commission that upheld the 2002
> McCain-Feingold campaign finance reform law's ban on corporate- and
> union-funded radio or television ads that explicitly target federal
> candidates during primary and general election campaigns.
>
> Foes of McCain-Feingold believe that the corporate limits have put a
> chokehold on free speech and are long overdue for re-evaluation.
>
> Tom Fitton, the president of conservative legal group Judicial Watch,
> noted the debate over political speech will take place just as public
> concern over the government's role in healthcare decisions has reached
> fever pitch.
>
> "People's nerves are exposed," said Fitton. "They are a lot more
> suspicious of government intervention."
>
> Advocates on both sides of the issue agree that the case could have
> far-reaching consequences. "If the court were to overturn those > cases and
> open the door to unlimited direct corporate expenditures, it would > change
> the character of our elections and change the character of the way
> decisions are made in government," said Fred Wertheimer, president of
> Democracy21, which supports the McCain-Feingold law.
>
> Wertheimer said his group, which is helping to coordinate the filing > of
> amicus curiae briefs in defense of the law, is on the offensive to > educate
> the public about the consequences of an overhaul of the laws.
>
> "We are focused on putting out as much information as we can during > this
> period to the media and to the public about both the stakes in this > case
> and the judicial doctrines that apply here," he said.
>
> The high-stakes case, which will mark the debut of both Associate > Justice
> Sonia Sotomayor and Solicitor General Elena Kagan in the high court's
> chamber next month, has become a magnet for leading business, legal > and
> advocacy groups. Disparate political fundraising powerhouses such as > the
> U.S. Chamber of Commerce, National Rifle Association and AFL-CIO > have filed
> amicus curiae briefs in support of Citizens United.
>
>
> http://www.nationaljournal.com/congressdai...090821_8869.php
>
> -----
> FINANCE: OPPONENTS GET ASSIST ON ARBITRATION
> By Bill Swindell
>
>
> Proponents of banning mandatory arbitration clauses in consumer > contracts
> received a boost this summer when a major bank scrapped the > procedure with
> credit card disputes and a major arbiter settled charges that it > concealed
> its ties to debt-collection services.
>
> Consumer activists say their drive for a bill to give a proposed > Consumer
> Financial Protection Agency the authority to ban such contracts in
> financial products such as credit cards has been buffeted after the
> National Arbitration Forum, the nation's second-largest arbitration > firm,
> halted its practice in consumer disputes in a settlement with the > Minnesota
> attorney general's office.
>
> Minnesota Attorney General Lori Swanson sued the Forum, contending > that it
> hid its ownership ties to a hedge fund that runs a debt-collection > agency
> that stood to benefit from its 200,000 annual proceedings.
>
> Swanson later was successful in putting pressure on the American
> Arbitration Association in its decision to place a moratorium on its
> consumer debt-collection cases.
>
> "The playing field is tilted against the ordinary consumer when credit
> card companies bury unfair terms like forced arbitration clauses in > fine
> print contacts. Congress should change that," Swanson said in a > statement.
>
> Those actions were followed by Bank of America's decision to drop
> mandatory arbitration in new cases over credit card, auto loan and > deposit
> accounts.
>
> "Arbitration is on the ropes," said Ed Mierzwinski, consumer program
> director for the U.S. Public Interest Research Group.
>
> The first test for proponents is to push for the CFPA bill, which is
> slated to be marked up next month by the House Financial Services
> Committee. It has attracted significant industry opposition.
>
> The arbitration dispute will be a subplot of the debate, but > advocates of
> the mandatory predispute cases fear it will be the first attempt to > roll
> back such contracts in all consumer, employment and franchisee > contracts as
> measures by Rep. Hank Johnson, D-Ga., and Sen. Russell Feingold, D-> Wis.,
> would accomplish.
>
> "To take this one situation and use it to [disparage] the whole > system I
> think is a serious mistake and a travesty for the consumer," said Lisa
> Rickard, president of the U.S. Chamber of Commerce's Institute for > Legal
> Reform.
>
> Advocates of the arbitration system contend that it offers a lower-> cost
> alternative than the court system, and its ease of use makes it > quicker for
> consumers to resolve a dispute.
>
> But critics contend the system favors businesses, noting a 2007 Public
> Citizen report that found that credit card companies won 94 percent of
> California arbitration cases over a four-year period.
>
> Rickard said the NAF case "should not be taken as indicative for any > other
> problems in the industry." She noted Bank of America's decision was a
> result of the arbitration market temporarily drying up.
>
> Opponents hope to pressure other banks to follow suit, but even with
> voluntary actions Mierzwinski said that a federal law is needed to > ensure
> that banks would not revert to such practices, noting that Citigroup
> reneged on pledge last year to end the practice of raising credit card
> rates at any time for any reason citing a tough business > environment. "We
> don't want to have Bank of America getting rid of arbitration and > bringing
> it back," he said.
>
>
> http://www.nationaljournal.com/congressdai...090821_2158.php
>
> -----
> APPROPRIATIONS: HILL BALKS AT MOST OBAMA BUDGET CUTS
> By Humberto Sanchez
>
>
> Congressional appropriators so far have agreed to only four of > President
> Obama's proposed cuts in 11 nonmilitary discretionary programs, > according
> to an analysis of the FY10 budget documents and appropriations bills.
>
> Obama has been under pressure from Republicans to reduce federal > spending
> and in May released a list of 121 programs, mandatory and > discretionary,
> that he recommended be terminated or cut, with a total savings of $17
> billion.
>
> About $12 billion of those savings would come from discretionary > programs,
> and half of that from defense programs. The other $5 billion comes > from
> cutting mandatory spending or repealing tax expenditures.
>
> In addition to following only part of his wishes on the reductions,
> Congress has agreed to terminate just 11 of the 48 programs > President Obama
> targeted. All the appropriations bills have yet to go through > conference,
> so further cuts might be possible.
>
> While "the president deserves some credit" for proposing cuts and
> terminations, Citizens Against Government Waste President Tom Schatz > said
> the situation "is a sign of Congress' willingness to spend > everything they
> can right now and their lack of fiscal discipline."
>
> The four programs that appropriators have agreed to reduce include the
> Interior Department's Abandoned Mine Lands discretionary grants for
> emergency abandoned coal mine land reclamation, which received $20 > million
> in FY09. Obama requested $7 million for FY10.
>
> The White House said the program was unnecessary because 2006 > changes to
> the Surface Mining Control and Reclamation Act boosted funding for the
> Abandoned Mine Land program for states and tribes, including new > mandatory
> funding for reclamation grants.
>
> "The increase in mandatory funding to the States and Tribes allows the
> Office of Surface Mining to begin phasing out discretionary funds > for AML
> emergency programs," OMB said.
>
> The House agreed, but went further by providing no funding for > emergency
> grants. The Senate provided $6 million for the program.
>
> House and Senate appropriators provided $30 million for the African
> Development Foundation Program and $41 million for the Labor > Department's
> Office of Labor Management Standards -- the same amount Obama > requested for
> both. In FY09, the African program received $33 million and the Labor
> program received $45 million.
>
> Obama sought $3 million for HHS' Real Choice Systems Change grants, > which
> help states provide community-based support for the disabled. The > House
> provided no funding and the Senate provided $2.5 million. It > received $3
> million in FY09.
>
> Appropriators disagreed with Obama's request to snip $244 million from
> low-performing Army Corps of Engineers projects funded from the > general
> construction account. Obama recommended $1.7 billion, but the House
> provided $2.1 billion and the Senate $1.9 billion.
>
> Obama requested $52 million in FY10 for the Election Assistance Grants
> program, which received $106 million in FY09. The House agreed with > Obama
> and provided $52 million, but the Senate proposes $106 million.
>
> Obama also sought to stop an FDA earmark to the University National > Center
> for Natural Products Research. "Funding construction and renovation > for a
> nonfederal, earmarked facility is outside the Food and Drug
> Administration's regulatory mission to assure the safety of food, > drugs,
> and cosmetics," OMB said.
>
> But appropriators disagreed. The House included a $1.6 million > requested
> by Rep. Travis Childers, D-Miss., and the Senate included $3.5 million
> requested by Senate Appropriations ranking member Thad Cochran and > Sen.
> Roger Wicker, both Mississippi Republicans.
>
> The White House sought to cut back funding for an Alaskan Villages
> Infrastructure program which OMB said has had a "history of management
> problems" to $10 million from $19 million.
>
> The House acceded to Obama's request and provided $10 million, but the
> Senate provided $15 million, including a $5 million earmark for the > program
> sought by Sen. Lisa Murkowski, R-Alaska.
>
>
> http://www.nationaljournal.com/congressdai...090821_1739.php
>
> -----
> ENERGY: YUCCA MOUNTAIN FUNDING NEARS ITS DEMISE
> By Darren Goode
>
>
> House and Senate Democrats are well on their way to helping the Obama
> administration kill Nevada's Yucca Mountain nuclear waste repository.
>
> Both chambers have approved FY10 Energy and Water Appropriations bills
> that match the administration's $197 million request to let the Energy
> Department officially keep the project open on paper for a year while
> funding Energy Secretary Chu's blue ribbon panel to develop an > alternative
> plan for storing and managing nuclear waste.
>
> The current 77,000 tons of high-level nuclear waste are held in > temporary
> surface storage facilities at 131 sites in 39 states.
>
> One difference between the two bills is that the House matches the
> administration's request of $56 million to also keep alive for one > more
> year a Nuclear Regulatory Commission review of a Bush Energy > Department
> application to build the long-stalled repository, primarily to avoid a
> legal challenge.
>
> The Senate bill only asks for $29 million. There is no timeline for
> conference negotiations, although a Senate aide said conference talks
> should be smooth enough for a bill to get finished before the next > fiscal
> year starts Oct. 1.
>
> Since the start, the repository has met stiff resistance, especially > from
> Nevadans, particularly Senate Majority Leader Reid.
>
> Reid recently said President Obama reaffirmed his plan to kill the > program
> by zeroing out funding in FY11 for the NRC review of the repository's
> application.
>
> The Senate Energy and Natural Resources Committee approved the > creation of
> a National Commission on Nuclear Waste in its broad energy bill to > perform
> a two-year study on the best way for the United States to move > forward on a
> permanent nuclear waste repository.
>
> Energy and Natural Resources Committee Republicans said that simply > delays
> a permanent solution to the problem and unsuccessfully tried to add
> language to the bill giving the Energy secretary the authority to > enter
> into cost-sharing agreements with private companies and contracts with
> local governments for hosting nuclear waste storage facilities.
>
> Panel Democrats expressed concern that local governments could enter > into
> agreements without consulting a state government.
>
> The panel turned down an attempt by Sen. John McCain, R-Ariz., to > express
> support for making Yucca Mountain a permanent nuclear waste > repository.
>
> Energy and Natural Resources Chairman Jeff Bingaman said he > supported this
> idea, but the "administration has made it clear" that it will not move
> forward on Yucca Mountain.
>
>
> http://www.nationaljournal.com/congressdai...090821_3599.php
>
> -----
> AGRICULTURE: MEXICO ASKED TO ALTER SUGAR PRODUCTION REPORTS
> By Jerry Hagstrom
>
>
> In the midst of controversy this week over Agriculture Department
> estimates of Mexican sugar imports in the coming year, USDA > officials said
> they have suggested to Mexican officials that they shift from a > system of
> voluntary reporting of sugar production to the U.S. model of mandatory
> reporting.
>
> Barbara Fecso, the USDA Farm Service Agency employee who runs the > sugar
> program, said she made a presentation this year to Mexican > government sugar
> officials on the U.S. reporting program, which requires cane > refiners and
> beet processors to report their production and levies heavy fines if > they
> do not comply.
>
> "We suggested this is the best way to get compliance, the best
> information." Fecso said. She added that mandatory reporting "is > probably
> not at the top of their list," but "they are looking into it." U.S.
> officials bring it up every time sugar officials from the two > countries
> meet, she said.
>
> "Mexico is providing more and better data than in the past, but we > still
> need to work together to improve market knowledge since, under > NAFTA, they
> have unlimited access to our market," Agriculture Undersecretary for > Farm
> and Foreign Agricultural Services Jim Miller added in an e-mail.
>
> Since January 2008 when Mexico -- under the North American Free Trade
> Agreement -- gained the right to export unlimited sugar to the United
> States, USDA officials have lowballed estimates of those imports > early and
> then had to raise them.
>
> Inaccurate figures on Mexican production and imports could lead to > what
> Congress would view as mismanagement of the U.S. sugar program.
>
> The 2008 farm bill directed USDA to manage the program so that 85 > percent
> of U.S. sugar comes from domestic production and prices are kept high
> enough that growers do not exercise their right to forfeit sugar to > the
> government.
>
> For decades, USDA managed the program by estimating U.S. supplies > from the
> mandatory reports and limiting imports. Now officials must now try to
> figure out Mexican imports before deciding whether to allow imports > from
> other countries above the levels required by trade agreements.
>
> Last year, the Bush administration allowed additional imports from > quota
> holding countries, but then Mexican imports surged and U.S. prices > fell.
> The Obama administration decided this week not to increase the import
> quotas this marketing year.
>
> Other factors also make estimating Mexican sugar imports difficult. > Last
> year, the devaluation of the Mexican peso and the Mexican mills' > need to
> sell sugar in order to raise cash during the financial crisis caused > Mexico
> to export an unexpected amount of sugar to the United States, said Ron
> Lord, the USDA Foreign Agriculture Service officer in charge of the > Mexican
> analysis.
>
> Estimating how much of Mexico's sugar it consumes is difficult because
> Mexico can sell sugar to the United States at higher prices and import
> cheaper sugar from Central and South America to satisfy its needs.
>
> Last week, Mexico announced it would allow 393,000 tons of imports. > USDA
> officials look at those imports as a sign Mexico does not have enough
> supply to export to the United States, and estimated that Mexican > exports
> for the 2009-10 marketing year would drop to 165,000 tons compared > with
> 1.45 million tons in the 2008-09 year.
>
> But Jack Roney, a former USDA sugar economist with the American Sugar
> Alliance, thinks the USDA estimate is low.
>
>
> http://www.nationaljournal.com/congressdai...090821_7946.php
>
> -----
> HILL BRIEFS: BERNANKE: ECONOMY ON VERGE OF RECOVERY
>
> Economy. Federal Reserve Chairman Bernanke declared today that the > U.S.
> economy is on the verge of a long-awaited recovery after enduring a > brutal
> recession and the worst financial crisis since the Great Depression. > "The
> prospects for a return to growth in the near term appear good," > Bernanke
> said in a speech to the Federal Reserve Bank of Kansas City's annual
> economic symposium in Jackson Hole, Wyo. But Bernanke said the > crisis will
> not be over until new regulatory systems are put in place. "Although > we
> have avoided the worst, difficult challenges still lie ahead. We > must work
> together to build on the gains already made to secure a sustained > economic
> recovery, as well as to build a new financial regulatory framework > that
> will reflect the lessons of this crisis and prevent a recurrence of > the
> events of the past two years," he said. There was additional > evidence of a
> recovery as the National Association of Realtors today reported home > sales
> rose 7.2 percent in July, the fourth consecutive monthly increase and
> highest level of sales since August 2007.
>
>
> http://www.nationaljournal.com/congressdai...090821_6953.php
>
> -----
> HILL BRIEFS: MASS. LEGISLATORS COOL TO KENNEDY REQUEST
>
> Senate. Top Massachusetts state lawmakers have reacted coolly to a
> proposal by ailing Democratic Sen. Edward Kennedy to change state > law to
> let the governor name a temporary successor during the five months > before a
> special election if a Senate seat is vacated, fueling speculation the
> legislature will not act. Kennedy's proposal looks "DOA," said one > senior
> Bay State political operative. "There certainly appears to no great
> enthusiasm for this particular thing." Kennedy has terminal brain > cancer.
> Under a 2004 change in state law that Democrats made to block then-> Gov.
> Mitt Romney, a Republican, from naming a replacement if Sen. John > Kerry,
> D-Mass., was elected president, Kennedy's death or resignation would > leave
> the seat vacant for 145 to 160 days until a special election can be > held.
> Changing the law would ensure Senate Democrats have 60 votes during > that
> time. But Massachusetts Gov. Deval Patrick, state Senate President > Therese
> Murray and House Speaker Robert DeLeo have pointedly declined to > embrace
> the idea, which Kennedy urged in a letter released Thursday. With
> Republicans already attacking them for considering altering the rule > twice
> for political gain, Massachusetts Democrats would face political > costs but
> questionable local benefits by passing a bill that would primarily > help
> Senate Democrats, the political operative said. "What's in it for > them?" he
> asked.
>
>
> http://www.nationaljournal.com/congressdai...090821_8444.php
>
> -----
> POLITICAL ROUNDUP: SENATE GOP RAISES MORE THAN DEMS
>
> National. Senate Republicans outraised their Democratic counterparts > in
> July, although Democrats still hold an overall cash advantage. The > National
> Republican Senatorial Committee raised $2.75 million during the month,
> outpacing the Democratic Senatorial Campaign Committee's $2.04 > million,
> according to campaign finance reports. The DSCC has $7.15 million in > cash
> on hand and $3.33 million of debt while the NRSC has $4.43 million > on hand.
> The DSCC has raised about $2 million more than the NRSC this year. > House
> Democrats continued to outraise their GOP rivals, according to > reports. The
> Democratic Congressional Campaign Committee reported receipt of $3.2
> million in July, bringing its total for the 2010 cycle to $34 million,
> while the National Republican Congressional Committee reported > receipts of
> slightly more than $3 million, bringing its total for the cycle to > $20.6
> million. The DCCC reported spending $24.3 million, leaving $10.2 > million on
> hand at the close of July, with $5.3 million in outstanding debts and
> obligations. The NRCC spent $17.4 million and had more than $4 > million in
> the bank at the end of July, with $2.75 million in outstanding debts > and
> obligations.
>
>
> http://www.nationaljournal.com/congressdai...090821_2662.php
>
> -----
> POLITICAL ROUNDUP: CRIST INTERVIEWS WEBSTER FOR SENATE POST
>
> Florida. Florida Republican Gov. Charlie Crist today interviewed > former
> state Sen. Dan Webster, a favorite among some conservatives to > replace Sen.
> Mel Martinez, R-Fla., who is resigning more than a year before his > first
> term expires. Crist says he doesn't expect to ask anyone else to > apply for
> the job, the Associated Press reported, although "you always keep the
> option open." Also being considered are Rep. C.W. (Bill) Young, > state Rep.
> Jennifer Carroll, former U.S. Attorney Roberto Martinez, lobbyist Jim
> Smith, former Jacksonville Mayor John Delaney and George LeMieux, > who once
> served as Crist's chief of staff. Crist indicated a decision is coming
> soon, saying, "I think we're coming in for a landing soon."
>
>
> http://www.nationaljournal.com/congressdai...090821_8369.php
>
> -----
> POLITICAL ROUNDUP: DEMS FILE ETHICS COMPLAINT AGAINST VITTER
>
> Louisiana. Louisiana's Democratic Party filed a complaint with the > Senate
> Ethics Committee accusing Sen. David Vitter, R-La., of using town hall
> meetings for campaign activity, the Lafayette Daily Advertiser > reported.
> State Democratic Party Chairman Chris Whittington wrote in the > letter that
> Vitter has used several taxpayer-funded town hall meetings to > criticize
> Democratic Rep. Charlie Melancon, a likely challenger in next year's > Senate
> election. At one town hall, Vitter encouraged those attending to > "keep up
> the pressure on" Melancon. "Senator Vitter's repeated attacks on his > likely
> campaign opponent indicate these events were political and not > official in
> nature," Whittington wrote.
>
>
> http://www.nationaljournal.com/congressdai...090821_4613.php
>
> -----
> POLITICAL ROUNDUP: BERKLEY CONSIDERS SENATE BID IN 2012
>
> Nevada. The fallout surrounding GOP Sen. John Ensign's extramarital > affair
> has prompted Democratic Rep. Shelley Berkley to consider a run for > the seat
> in 2012, the Las Vegas Review-Journal reported. "The circumstances > have
> changed and I would take a good look at it," Berkley told the > newspaper's
> editorial board. Berkley noted the disadvantages of running, such as > giving
> up a safe House seat and her committee assignments. "I would be > loath to
> give up what I have," she said.
>
>
> http://www.nationaljournal.com/congressdai...090821_7978.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "I'm not going to ask you to be polite to me or to be respectful to > me.
> ... I work for you. You can treat me how you'd like."
>
> -- Rep. Patrick McHenry, R-N.C., speaking to attendees at a > Wednesday town
> hall meeting in Cherryville, N.C., as reported by the Gaston Gazette.
>
>
> http://www.nationaljournal.com/congressdai...090821_7802.php
>

[Snuffysmith]

> CongressDaily AM for Wednesday, Oct. 7, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: SENATE TIMETABLE SLIPS AS MODERATES DEMAND WAITING PERIOD
> By Anna Edney and Dan Friedman, with Peter Cohn contributing
>
>
> The Senate will not likely consider healthcare overhaul legislation > next
> week as planned, according to Senate Majority Leader Reid's office, > and
> moderate Democratic senators might have further delayed efforts to > complete
> the bill.
>
> With the Senate Finance Committee not voting until late this week or > even
> possibly next, Reid is unlikely to be able to take a merged Finance > and
> Health, Education, Labor and Pensions Committee bill to the floor > until the
> week after next at the earliest.
>
> "We likely will not get to it until the week after next on the floor > since
> the Finance Committee will likely not report the bill until later this
> week," said a Democratic leadership aide.
>
> Finance Chairman Max Baucus expects to get CBO scores soon, possibly
> today, on his committee's proposal. Timing for a vote in his panel > will
> depend on what those scores reveal about the cost of his measure and
> whether it remains deficit-neutral after the committee's > modifications.
>
> Eight moderate Democrats further complicated the floor effort > Tuesday by
> asking Reid to post on the Internet for 72 hours the full > legislative text
> of a final bill and complete CBO scores "prior to the first vote to > proceed
> on health reform legislation."
>
> The moderates want the text as amended and modified CBO scores > available
> electronically 72 hours before a final vote on the measure. If Reid
> determines he must acquiesce to the moderates to get the bill > passed, such
> efforts could delay a final vote further by a few weeks at least.
>
> "Whether or not our constituents agree with the direction of the > debate,
> many are frustrated and lacking accurate information on the emerging
> proposals in Congress," the senators wrote. "Without a doubt, > reforming
> health care in America is one of the most monumental and far-reaching
> undertakings considered by this body in decades. We believe the > American
> public's participation in this process is critical to our overall > success
> of creating a bill that lowers healthcare costs and offers access to
> quality and affordable health care for all Americans."
>
> Reid's office did not offer any guarantees. "Senate Democrats have > pursued
> the most transparent process possible in both the [Health, > Education, Labor
> and Pensions] and Finance committees and intend to do the same as the
> debate moves to the Senate floor," a Reid spokeswoman said. "This > was Sen.
> Reid's position before the letter and remains his position now."
>
> Reid's staff has been working with the White House to merge the > Finance
> and HELP bills. HHS Secretary Sebelius is scheduled to meet today with
> administration officials to discuss the overhaul.
>
> The letter to Reid was sent by Democratic Sens. Blanche Lincoln and > Mark
> Pryor of Arkansas, Evan Bayh of Indiana, Mary Landrieu of Louisiana, > Joseph
> Lieberman of Connecticut, Claire McCaskill of Missouri, Ben Nelson of
> Nebraska and Jim Webb of Virginia. The senators also requested > legislative
> text of all amendments be posted prior to a vote on each amendment > and that
> following a Senate and House conference, a formal conference report > and
> complete CBO scores be made available to the public 72 hours before > a final
> vote.
>
> Senators who signed the letter did not say they would oppose the > bill if
> they did not have 72 hours to review it, but Lieberman said having > time to
> review the measure would be a factor. "It would be hard for me to > vote for
> a motion to proceed if there wasn't that time," Lieberman said.
>
> The request is similar to ones made by Republicans in recent weeks. > Sen.
> Jim Bunning, R-Ky., offered an amendment in the Finance Committee > that was
> shot down to require the committee to post full legislative text and > final
> CBO scores on its proposal 72 hours prior to a final vote.
>
> Bunning plans to offer a resolution today that will require the
> transparency measures before any vote on the floor or in committee.
>
> National Republican Senatorial Committee Chairman John Cornyn of Texas
> referenced the need for more transparency on the floor Tuesday as > well.
>
> "Maybe there's a reason why so many of my colleagues don't want the > public
> to read the actual legislative language," Cornyn said. "And maybe that
> reason is they have no intention of reading the language themselves."
>
> Cornyn pointed to backroom deals that legislative language, rather > than
> the conceptual language used by the Finance Committee, might have > brought
> to light sooner, including one in the Finance proposal that excluded
> hospitals from a Medicare cost-cutting commission and another that > provided
> four states -- including Reid's state of Nevada -- a special > Medicaid deal.
>
> As the Finance Committee awaits CBO, Baucus might have about $29 > billion
> in additional revenues to play with, according to preliminary scores > from
> the Joint Committee on Taxation. The initial scores issued by JCT for
> Baucus' mark of three proposed fees -- referred to as taxes by > Republicans
> -- on health insurance providers and manufacturers of > pharmaceuticals and
> medical devices pegged the total amount raised at $92.4 billion.
>
> But those estimates assumed companies would be able to deduct the > fees on
> their tax returns, which is not the case under the Finance bill. In > revised
> scores circulated Tuesday, the three fees or excise taxes are > estimated to
> raise $121.2 billion, even after accounting for the economic impact on
> business activity.
>
> Although CBO scores of the subsidy provisions are pending, the new
> estimates could ease some concerns that other offsets will have to > be found
> if senators reduce some of the proposed fees. For example, a > proposed levy
> on medical device-makers would raise $38.6 billion, or $8.7 billion > more
> than original estimates showed. Fees on insurance providers, > separate from
> an excise tax on high-cost plans, would raise $60.4 billion, about $15
> billion more than initially expected.
>
> While some budget wiggle room might be helpful for Baucus and the
> Democrats, Republicans have been consistently arguing that the fees > would
> be passed down to consumers in the form of higher prices and insurance
> premiums. The $6.7 billion annual insurers' fee, for example, could > result
> in a 2 percent increase in all policyholders' premiums, according to > one
> Senate staff estimate. The higher JCT revenue estimates could give
> Republicans ammunition to argue that the Democrats' new fees will > result in
> an even higher tax increase than expected.
>
> "A $29 billion change like this is why Republicans on the committee > asked
> to have the tax and budget experts at the table, answering questions,
> before the committee votes on a healthcare reform bill that costs > nearly a
> trillion dollars and affects every American," Finance ranking member
> Charles Grassley said.
>
> Republicans on the Finance Committee wrote Baucus Tuesday requesting > CBO
> Director Elmendorf and JCT Chief of Staff Thomas Barthold be > available to
> answer questions about scoring when the committee reconvenes either > this
> week or next to take a final vote on its version of the overhaul > bill. A
> Finance aide said Baucus had already invited CBO and JCT to the > final vote.
>
>
> http://www.nationaljournal.com/congressdai...091007_1652.php
>
> -----
> ENVIRONMENT: CHAMBER TRIES TO STOP CLIMATE BLEEDING
> By Darren Goode
>
>
> The U.S. Chamber of Commerce Tuesday looked to stanch the bleeding of
> recent defections over differences on climate change. They did so > even as
> several dozen businesses this week increased their visibility on > Capitol
> Hill to push for quick action on legislation that might resemble a > measure
> the Chamber strongly opposes.
>
> In a letter to Apple CEO Steve Jobs, Chamber President Thomas Donohue
> addressed the company's announcement Monday that it would > immediately leave
> the Chamber, while perhaps sending a message to others who are > thinking
> about leaving.
>
> "It is unfortunate that your company didn't take the time to > understand
> the Chamber's position on climate and forfeited the opportunity to > advance
> a 21st century approach to climate change," Donohue wrote Jobs, in a > letter
> released by the Chamber.
>
> The trade association, he wrote, supports "strong federal > legislation and
> a binding international agreement to reduce carbon emissions and > address
> climate change." Congress, Donohue added, should legislate in lieu > of EPA
> devising greenhouse gas regulations.
>
> The Chamber has been a leading critic of a House-passed climate and > energy
> bill, which Donohue said "numerous studies show will cause Americans > to
> lose their jobs and shift greenhouse gas emissions overseas, negating
> potential climate benefits."
>
> The organization has not taken a position on a draft Senate cap-and-> trade
> bill from Foreign Relations Chairman John Kerry and Environment and > Public
> Works Chairwoman Barbara Boxer -- which is missing key details > regarding
> the bill's cost to businesses but includes a tougher midterm emission
> reduction target than the House bill.
>
> In a strongly worded letter to Donohue Monday, Apple Vice President > for
> Worldwide Government Affairs Catherine Novelli chastised the Chamber > for
> not taking "a more progressive stance" and for not playing "a > constructive
> role" in the climate debate. Novelli wrote that "because the Chamber's
> position differs so sharply with Apple's, we have decided to resign > our
> membership effective immediately."
>
> Donohue swiped back in his letter: "I would have hoped that Apple > would
> have supported our efforts to improve environmental stewardship and > keep
> Americans at work and our economy competitive."
>
> Apple's response was the latest and most aggressive departure so far.
> Three utilities -- Chicago-based Exelon Corp., California-based > Pacific Gas
> and Electric Co. and New Mexico-based PNM Resources Inc. -- have > announced
> they are leaving the Chamber. Nike is leaving the Chamber's board > while
> retaining membership in the trade association.
>
> Nike has a representative in Washington this week as part of a larger
> lobbying effort of more than 150 companies from 37 states pushing for
> passage this year of "comprehensive energy legislation such as" the
> House-passed bill that the Chamber opposes, according to a Web site > for the
> campaign.
>
> This is the first fly-in lobbying effort of We Can Lead -- a joint
> campaign of businesses and investors that have been running TV and > print
> ads nationally and in targeted states. More fly-ins will be > forthcoming, a
> spokesman for the campaign said. Exelon and PG&E are members of the
> campaign. Exelon has a representative at the fly-in; PG&E does not.
>
> Company officials this morning are holding court at the White House > with
> Energy Secretary Chu, Commerce Secretary Locke and White House > climate czar
> Carol Browner before holding meetings with 35 Senate offices, the > campaign
> spokesman said.
>
> This includes a joint meeting with Sens. Sherrod Brown, D-Ohio, and > Debbie
> Stabenow, D-Mich. -- who are considered key players in developing > language
> to protect U.S. manufacturers.
>
> The effort comes as Senate Democratic leaders are searching for ways > to
> persuade enough moderate Democrats and Republicans to give them 60 > votes
> for a joint energy and cap-and-trade plan.
>
> Sen. Lindsey Graham, R-S.C., suggested the Obama administration set up
> working groups to foster more Senate GOP support and that maybe a > handful
> of Republicans could be convinced to back a bill if Democrats include
> sufficient help for nuclear energy and offshore oil and gas > drilling. "I
> think there's a way to grow Republican support," Graham said. "But > it's
> give and take."
>
> Graham referenced a plan adopted last year by a bipartisan group of
> senators led by Sen. Kent Conrad, D-N.D., that proposed lifting much > of a
> federal drilling moratorium that has since temporarily expired and
> maintaining a 50-mile buffer along the East coast and the west coast > of
> Florida. It also allows Virginia, North Carolina, South Carolina and
> Georgia to "opt in" and drill closer.
>
> An energy plan the Senate Energy and Natural Resources Committee > approved
> that could be merged with a cap-and-trade strategy has a pared-down > plan
> that opens up some waters in the eastern Gulf of Mexico. Conrad said > his
> bipartisan gang will get together again during the climate debate. > "We have
> been talking, and we have agreed that when it becomes more ripe, we > will
> meet again," he said.
>
> The Kerry-Boxer draft also has some initial nuclear energy language,
> though Republicans like Graham and Arizona Sen. John McCain say it > must go
> much further and include help for learning to recycle and better store
> waste and loan guarantees for new construction.
>
> While Kerry reiterated Tuesday that he takes Republican ideas "very, > very
> seriously" in a bid to win them over, McCain thinks otherwise. "From > my
> conversations that has not been the case. Perhaps you know something I
> don't," he said. "Look, I don't negotiate that way. I don't > negotiate with
> someone who presents me with legislation and says, 'well, maybe > we'll give
> you something you want,'" McCain said. "That isn't the way that I
> negotiate. And I've negotiated around here for more than 20 years."
>
> Kerry brought up climate change with Obama and top White House adviser
> David Axelrod Monday in a broader meeting that mainly focused on
> Afghanistan and is meeting with Browner today. "The message from the
> administration is they're committed to moving forward; they're > committed to
> doing everything they can to pass a bill," Kerry said. Given the > continuing
> focus on health care, Kerry said Obama's message was for the Senate > to pass
> a bill "as soon as we can possibly do it."
>
> Kerry has promised to look for ways to expand nuclear energy in the > bill
> and met Obama's top science adviser John Holdren on the subject > Monday.
> "We're looking at that issue very closely," Kerry said.
>
>
> http://www.nationaljournal.com/congressdai...091007_7662.php
>
> -----
> DEFENSE: SENATE AGAIN REJECTS C-17 CUT, APPROVES SPENDING BILL
> By Megan Scully and Humberto Sanchez, with Chris Strohm contributing
>
>
> The Senate voted 93-7 Tuesday to approve a $636.3 billion FY10 Defense
> Appropriations bill after soundly rejecting the Obama administration's
> decision to end production of the C-17 Globemaster III cargo plane.
>
> After failing on a procedural vote last week to strip funding to buy > 10
> more C-17s from the bill, Senate Armed Services ranking member John > McCain
> tried again to cut the $2.5 billion add-on for planes the White > House and
> Pentagon consider unnecessary.
>
> But the Senate voted 68-30 against McCain's amendment, signaling > strong
> congressional support for the Boeing Co.-aircraft program, which > employs
> more than 30,000 people in 43 states.
>
> The Senate also approved a bipartisan amendment that makes available > $50
> million to $151 million in FY10 funds or unobligated FY09 funds for > the
> research and development of two-stage ground-based interceptors. The
> amendment, which would tap funds intended for the long-range missile
> defense system in Europe, passed on a voice vote.
>
> The amendment also prohibits diverting any FY10 funds away from > research
> and development of the interceptors and requires the director of the
> Missile Defense Agency to develop a plan for the continued > development of
> the GBIs, including options for deploying them in Europe or the United
> States.
>
> Offered by Sens. Joseph Lieberman, D-Conn., and Jeff Sessions, R-> Ala., the
> amendment comes after the administration's recent decision to scrap > plans
> for the ground-based long-range missile defense system in Europe in > favor
> of near-term deployment of systems to protect Europe from the looming
> threat of Iranian short- and mid-range missiles.
>
> Despite the revised plans for the European missile defense system,
> Pentagon officials have said they want to continue developing the
> ground-based interceptors as a "technological hedge" against a > potential
> threat of long-range Iranian missiles. The administration now plans to
> develop mature SM-3 missiles to defeat long-range missiles.
>
> Also Tuesday, the Senate approved an amendment 91-7 from Sens. > Christopher
> (Kit) Bond, R-Mo., and Patrick Leahy, D-Vt., that prohibits the Air > Force
> from retiring tactical aircraft until the Air Force secretary > reports to
> Congress on how he plans to fill the capability gaps resulting from > taking
> the planes out of service.
>
> Bond and Leahy, co-chairmen of the Senate National Guard Caucus, are
> concerned that retiring the fighters will deplete the Air Guard's > inventory
> until the stateside units receive the F-35 Joint Strike Fighter. > National
> Guard boosters want the Air Force to consider buying older fighters > to fill
> the gap.
>
> Meanwhile, the Senate voted 77-21 to approve an amendment from
> Appropriations Chairman Daniel Inouye requiring that projects funded
> through earmarks follow the same acquisition rules as other military
> programs.
>
> The amendment was offered as a counter to language from McCain that > would
> have required competition for earmarks. McCain's language failed on > a voice
> vote.
>
> House and Senate appropriators already have been working quietly for > weeks
> to resolve differences in two chambers' versions of the defense bill.
> Inouye said Tuesday he hopes to have a conference report on the bill
> completed by the end of the week.
>
> Meanwhile, House and Senate negotiators will meet this afternoon to > finish
> reconciling differences between House and Senate versions of the FY10
> Homeland Security Appropriations bills, Inouye's committee announced.
>
> The compromise bill will likely not include controversial language
> requiring the Homeland Security Department to build 700 miles of > reinforced
> double-layered physical fencing along the Southwest border, a > lawmaker who
> did not wish to be identified said last week.
>
> The border fencing requirement was added to the Senate bill as an
> amendment by Sen. Jim DeMint, R-S.C. It would require the department > to
> complete the fencing by Dec. 31, 2010.
>
> While the department and other lawmakers say 700 miles of double-layer
> fencing is not needed and is very expensive, one aide said a final > decision
> on the fencing language will be made through the conference process.
>
> The bill is also expected to require the department to conduct a > threat
> assessment on detainees held at Guantanamo Bay, Cuba, to determine > what
> risk might be created by their transfer to the United States. It > also is
> expected to allow detainees to be brought to the United States for > court
> trials and prosecution.
>
>
> http://www.nationaljournal.com/congressdai...091007_7097.php
>
> -----
> FINANCE: KANJORSKI'S DRAFT REVISIONS MIGHT COST HIM SOME SUPPORT
> By Bill Swindell
>
>
> The insurance industry demonstrated its propensity for infighting > Tuesday,
> arguing over a proposal to create an office of insurance within the
> Treasury Department as part of an effort to revamp the nation's > financial
> regulatory structure.
>
> The wrangling occurred during a hearing over a revised draft by House
> Financial Services Capital Markets Subcommittee Chairman Paul > Kanjorski,
> D-Pa., to establish the office.
>
> Kanjorski originally proposed legislation to create an Office of > Insurance
> Information that would establish federal policy on international > insurance
> matters to ensure they are consistent with state laws as well as > advise the
> secretary on major domestic and international insurance issues. The > bill
> had the support of almost all insurance groups.
>
> But Kanjorski recently revised his draft, and some changes unnerved
> insurance groups who fear it will lead to a federal insurance > charter to
> compete with the state-based system.
>
> The changes include renaming the office as the Federal Insurance > Office
> and removing safeguards from the bill that made it more difficult to
> pre-empt state laws, such as providing public notice requirements, > allowing
> state regulators a greater opportunity to argue their side in a > dispute and
> giving Congress the opportunity to disapprove of its policies.
> Additionally, groups are also concerned the draft did not rule out > that the
> federal office would not have regulatory authority.
>
> "We are concerned about the breadth and scope and possibility for > mission
> creep," said Janice Abraham, who testified on behalf of the Property
> Casualty Insurers Association of America.
>
> Other groups expressing concern were the Independent Insurance > Agents &
> Brokers of America and the National Association of Insurance > Commissioners.
>
> Large, multinational carriers are arguing for creation of a federal
> regulator for insurance.
>
> Kanjorski noted that there was "a fundamental expansion" of the bill > since
> he introduced it this year, in some cases at the urging of the > Treasury
> Department. In its proposal, Treasury called for the office to have
> subpoena powers -- a provision rejected by Kanjorski.
>
> "It is not intended to do anything that is regulatory in nature ... I
> think that should be made clear to everyone," Kanjorski said.
>
> Rep. Judy Biggert, R-Ill., said she was concerned about the changes,
> noting that she had been a co-sponsor of the original Kanjorski > bill, which
> was able to pick up support from almost all sides of the industry. > "I'm
> afraid that this new draft moves away from what I thought was a really
> great bipartisan bill," Biggert said.
>
> On another issue, groups representing private equity firms asked > Kanjorski
> to show some flexibility in requiring them to register as investment
> advisers with the SEC. The Kanjorski draft would require hedge funds > and
> private equity firms to register with the agency, exempting only > funds that
> do not meet a $30 million threshold.
>
> The draft would exempt venture capital funds from the requirement and
> instead subjects them to separate rules the SEC will establish for
> reporting and recordkeeping.
>
> The Kanjorski draft would authorize the SEC to define what > constitutes a
> "venture capital fund" and establish how such firms will comply with > the
> reporting requirements. Kanjorski said the SEC could likely obtain
> financial information through a "Form D" disclosure document that most
> venture capital funds already file with the SEC during or shortly > after
> their public offerings.
>
> Other groups argued for greater relief akin to the venture capital > firms.
>
> "I would suggest a simpler and perhaps even fairer approach would be > to
> raise the threshold ... above which registration is required from $30
> million to a level that Congress believes is appropriate," said > Douglas
> Lowenstein, president of the Private Equity Council.
>
> Kanjorski said he is amenable to revising the size of the funds that > would
> be under the registration requirement. "We are going to look at size,
> whether it is $30 million or $100 million, it is open to discussion,"
> Kanjorski said.
>
> As far as schedule, the House Financial Services Committee is slated > to
> mark up legislation next week that would place greater regulations > on the
> derivatives market, as well as another bill to create a new Consumer
> Financial Protection Agency. House Financial Services Chairman > Barney Frank
> is tentatively trying to mark up the Kanjorski draft on Oct. 21.
>
>
> http://www.nationaljournal.com/congressdai...091007_3341.php
>
> -----
> HEALTH: LAWMAKERS SEEK SUPPORT TO EXTEND DEPENDENT COVERAGE
> By Carrie Dann
>
>
> Hoping to scoop much of the nation's young uninsured population back > into
> the healthcare system, four House Democrats are trying to build > support for
> a proposal that would let young adults stay on their parents' or > guardians'
> insurance plans until age 26.
>
> Rep. Chris Van Hollen, D-Md., joined by Reps. Kathy Dahlkemper, D-Pa.,
> Allyson Schwartz, D-Pa., and Tammy Baldwin, D-Wis., is leading the > campaign
> to include the language in the healthcare reform bill House Democratic
> leaders will bring to the floor in the coming weeks.
>
> The lawmakers have been soliciting colleagues to sign a letter to key
> House committee chairmen endorsing the proposal. They are arguing > that the
> extension of benefits for dependents would keep young adults from > falling
> through the cracks of the health insurance system during the > transition
> from school into entry-level jobs that often do not offer health > coverage.
>
> Their proposal would require any individual or group health plan that
> extends benefits to policyholders' children to keep those dependents > on
> their rolls until they turn 26 years old.
>
> Many employer-based health insurance plans drop coverage for > children when
> they turn 19 years old unless they are full-time students.
>
> It is unclear how a federally-mandated extension of benefits for
> dependents could affect the price tag of the House bill, but backers > argue
> that their proposal would cut government health costs by decreasing > the
> number of uninsured young adults who would need federal subsidies to > pay
> for their care.
>
> Adults aged 19-29 make up almost a third of the nation's uninsured
> population, according to the Kaiser Family Foundation. A 2005 Kaiser > study
> found that nearly one in 10 of those uninsured young adults faced
> out-of-pocket medical expenses of more than $700 in a single year.
>
> Van Hollen's group hopes to deliver a letter later this week to the
> chairmen of the three House committees -- Energy and Commerce, Ways > and
> Means, and Education and Labor -- that passed versions of health > reform
> legislation earlier this year. A letter also will be sent to Rules
> Chairwoman Louise Slaughter.
>
> While none of the three House bills, which leaders are working to > merge
> into a single measure, contain language extending the coverage age for
> young adults, legislation approved by the Senate Health, Education, > Labor
> and Pensions Committee does.
>
> If approved, the provision may be good news for about 8 million > federal
> workers and their family members who have health insurance under the
> Federal Employees Health Benefits Program, which caps dependent > coverage at
> age 22.
>
> The National Treasury Employees Union, the largest independent
> organization representing federal workers, said Tuesday that > increasing the
> age requirement for dependent coverage is "a long overdue action."
>
> In addition to the cap on coverage for dependent children, current > federal
> employee health plans pre-empt state regulations that would > otherwise offer
> young adults coverage under their parents' insurance policies for as > many
> as eight additional years.
>
> About 30 state legislatures have passed various regulations extending
> dependent coverage under parents' policies for several years after the
> children turn 19 -- as long as they are not married and do not have > any
> dependents.
>
> In New Jersey, for example, unmarried dependents without children > can be
> covered under a parent or guardian's plan up to age 30.
>
> A spokesperson for Blue Cross/Blue Shield, which covers about 60 > percent
> of workers enrolled in the Federal Employees Health Benefits Program,
> declined to comment Tuesday, saying that it is premature to judge the
> impact of a modified age cap until the legislative language is > finalized.
>
>
> http://www.nationaljournal.com/congressdai...091007_9357.php
>
> -----
> LABOR: ACTION ON JOBLESS AID BILL EXPECTED SOON IN SENATE
> By Dan Friedman
>
>
> Senate Democrats hope to pass a bill to extend unemployment benefits > in 50
> states by next week, Democratic aides said Tuesday. Democratic and
> Republican staffers said they expect the bill on the floor after the
> chamber passes pending appropriations bills, which could be as soon as
> Thursday.
>
> Senate Majority Leader Reid and Finance Chairman Max Baucus plan to > amend
> a House-passed unemployment extension bill and extend benefits by four
> weeks in all states and by another 13 weeks in 27 states where > unemployment
> rates exceed 8.5 percent, based on the average of the last three > months,
> according to Baucus and leadership aides.
>
> The measure, paid for by extending the federal unemployment tax > through
> Dec. 31, 2011, would also let families receiving food stamps to remain
> eligible while receiving an additional $25 per week in unemployment
> insurance benefits.
>
> Reid hopes to move the bill by unanimous consent, and Senate aides > said
> they expect agreements among Democrats, but with floor action on > healthcare
> reform delayed until at least Oct. 20, senators will have time next > week to
> vote on the bill and proposed amendments.
>
> A group of Democrats from states with unemployment below 8.5 > percent, led
> by Sen. Jeanne Shaheen of New Hampshire, is pushing to alter the > measure to
> extend benefits in all states for 17 weeks, by extending the > unemployment
> tax for another four to six weeks.
>
> Republicans want to amend the bill to avoid any tax extensions, > meaning
> passage by unanimous consent is unlikely, a GOP leadership aide said.
>
>
> http://www.nationaljournal.com/congressdai...091007_5353.php
>
> -----
> JUDICIARY: ADULT ENTERTAINMENT INDUSTRY AIMS TO END SEX RECORDS LAW
> By Andrew Noyes
>
>
> The $13 billion adult entertainment industry, photographers, artists > and
> others plan to sue the U.S. government today challenging what they > argue
> are unconstitutional and overly broad revisions to federal record-> keeping
> law that were implemented just before the Bush administration left > office.
>
> The final age-verification rules stem from changes Congress made to
> federal child safety law in 2006 and took effect this year.
>
> Under the law, which is intended to fight child pornography, > creators of
> images and videos -- both in print and on the Internet -- are > required to
> keep detailed records of content showing individuals engaged in sexual
> conduct and simulated sex acts. The obligation applies to "every > single
> sexual image produced by anyone, no matter how innocuous," said > Michael
> Murray, an attorney for the Free Speech Coalition, which will file > the case
> in a Philadelphia district court.
>
> The requirement pertains to all individuals depicted, regardless of > age or
> whether the content is publicly or privately communicated, he said. > That
> means millions of Americans theoretically are required to comply.
>
> The law also stipulates that a label be posted to show the physical
> location where the records can be found and permits law enforcement to
> search a home office or business without a warrant to certify > compliance.
>
> "You can't work from a hunch when you're talking people's freedoms,"
> Coalition Executive Director Diane Duke said. "If you misfile > documents,
> that's considered a violation, and people can go to jail for that."
>
> She said the statute encumbers small businesses many of whom find it
> impossible to comply. It is also unfair to adult content producers who
> "have to prove innocence even though there's no guilt involved," she > said.
>
> A similar 2005 lawsuit brought by the Coalition in a Colorado court > was
> dismissed without prejudice in April, which allowed the group to > file a
> fresh complaint elsewhere. The new case raises different issues > since there
> is a full set of rules that did not exist when the prior litigation > began,
> Murray said. Philadelphia was selected because the Constitution was > signed
> there, and its federal court has a history of deciding major First
> Amendment cases, he said.
>
> In the letter to Duke, Deputy Assistant Attorney General Laurence
> Rothenberg said the rule was finalized after serious consideration of
> public comments. He said numerous changes were made from the > proposed rule
> to ease burdens on adult content producers. "There is no ambiguity > about
> the legal authority for the rule," Rothenberg added.
>
> The complainants appear to have an uphill battle in a case that > could take
> years to resolve.
>
> The Coalition sent a letter to the Obama administration in January > asking
> for officials to review the record-keeping requirements. Duke > received a
> response from the Justice Department a few weeks ago declining the > request.
> "That doesn't give us any positive indication that this > administration will
> have a different approach," she said.
>
>
> http://www.nationaljournal.com/congressdai...091007_8686.php
>
> -----
> GOVERNMENT OPERATIONS: EXPERTS SAY POLICY 'CZARS' FALL WITHIN > PRESIDENTIAL
> AUTHORITY
> By Terry Kivlan
>
>
> Constitutional experts mostly defended the legality of President > Obama's
> practice of naming policy "czars" who are not subject to > confirmation by
> the Senate and not readily accountable to congressional oversight
> committees.
>
> Bradley Patterson, a senior analyst for the Brookings Institution who
> served on the White House staffs of Presidents Eisenhower, Nixon and > Ford,
> said Obama clearly had the power to appoint such top-level aides > under the
> historic prerogative of a president to hire White House personnel > without
> benefit of the Senate's advice and consent.
>
> "The president's staff are personally responsible only to the > president,
> and in the end he is the only 'czar' that is," said Patterson in > testimony
> before the Senate Judiciary Constitution Subcommittee. "And he is
> accountable to the American people."
>
> The White House, meanwhile, brushed off a request from Judiciary
> Constitution Subcommittee Chairman Russell Feingold, D-Wis., to send a
> witness to the hearing.
>
> In a letter to Feingold, White House Counsel Gregory Craig insisted > that
> none of the czar appointments raised valid concerns about > accountability
> and congressional oversight. "Neither the purpose nor the effect of > these
> positions is to supplant existing federal agencies or departments, but
> rather to help coordinate their efforts," Craig wrote.
>
> Feingold said he considered the White House's refusal to send a > witness
> "unfortunate. It's also a bit ironic, since one of the concerns > that's been
> raised about these officials is that they will somehow thwart > congressional
> oversight of the executive branch."
>
> The expert witnesses at the hearing agreed that the president's use of
> White House czars did not represent an abuse of power as long as > they did
> not attempt to give orders to agency heads or issue regulations on > their
> own.
>
> University of Virginia law professor John Harrison noted that it was > not
> unprecedented for appointed government officials to wield great > influence
> within an administration while possessing no independent power to > implement
> policy.
>
> "There is nothing legally problematic with that," Harrison said.
>
> Matthew Spalding, director of American Studies at the Heritage > Foundation,
> bemoaned the rise of czars in the Obama administration as > continuation of a
> trend that has seen presidents of both parties try to govern through > policy
> wonks at the expense of the democratic process.
>
> He also suggested that climate czar Carol Browner, officially > assistant to
> the president for energy and climate change, may have encroached on > the
> authority of the EPA by serving as the administration's point person > in
> developing automobile emissions standards.
>
> Another witness, Villanova University law professor Tuan Samahon,
> qualified his backing of the president's czar appointments by > warning that
> lawmakers should exercise vigilance to make sure that the "sorcerer's
> apprentice does not become the sorcerer."
>
> Feingold said he was mainly concerned about the small number of czars
> operating within the White House itself and vowed to keep pressing the
> administration for a detailed accounting of their missions.
>
>
> http://www.nationaljournal.com/congressdai...091007_4068.php
>
> -----
> PEOPLE: PEOPLE
> By Gregg Sangillo and Sara Jerome
>
>
> WINDOWS. Scott Corley, director of government affairs at Microsoft, is
> leaving to join Monument Policy Group as senior vice president of
> government affairs. At Microsoft, Corley was charged with lobbying > Senate
> Republicans. That group will remain his focus, he said, with his > issues
> including immigration and technology. Corley's Capitol Hill experience
> includes tenures on staff for former Sen. George Allen, R-Va., and > former
> Rep. Jim Rogan, R-Calif.
>
> MOSH PIT. Rob Mosher has been named legislative director in the > office of
> Rep. Doris Matsui, D-Calif. Mosher previously served as LD to Rep. > Steve
> Kagen, D-Wis., and he's also worked as an aide to Rep. Jim Langevin, > D-R.I.
> In addition, Mosher has worked for former Sen. John Glenn, D-Ohio, and
> former Reps. Bob Wise, D-W.Va., and Max Sandlin, D-Texas. Mosher also
> helped launch the U.S.-Armenia Public Affairs Committee. He earned his
> bachelor's degree from Miami University in Ohio and a master's in > public
> policy from Baylor University. Ryan McCabe, a former intern, was > recently
> hired on by Matsui as a staff assistant. A graduate of Princeton
> University, McCabe was a field organizer on the presidential > campaign of
> former Sen. John Edwards, D-N.C., and he worked as a political > assistant at
> the Democratic Congressional Campaign Committee.
>
> HIGH WATTAGE. Eric Love has joined the office of Rep. Melvin Watt, D-> N.C.,
> as a legislative assistant covering energy, environment, agriculture > and
> homeland security. Cap-and-trade has been a major focus, he said. Love
> interned for Watt on Capitol Hill, and worked in his district > office. He is
> a North Carolinian and keeps in mind "how legislation impacts people > in the
> district." Love succeeds Corey Little, who left Capitol Hill for law
> school. Also in Little's stead, administrative assistant Keith Kelly > has
> taken on the role of communications director while he continues to > hold his
> previous responsibilities. Before joining the office two years ago, > Kelly
> was based in North Carolina as a district liaison. Also in Watt's > office,
> Lakecia Foster has come on as a legislative assistant, covering the
> judiciary, the economy and the stimulus. She arrives after an > internship in
> Missouri for Rep. Russ Carnahan, D-Mo. She was a Missouri-based field
> organizer for the Obama campaign.
>
> JAG. Howard Hoege has joined the Senate Armed Services Committee in > the
> investigations group, which has recently focused on detainee > treatment and
> the role of private security contractors in Afghanistan, he said. > Hoege was
> deployed in Iraq from 2003-04 as a Judge Advocate General officer. > When he
> returned, he was a senior prosecutor in the Army, worked in private
> practice, and joined the faculty of the Army's JAG School in
> Charlottesville, Va.
>
>
> http://www.nationaljournal.com/congressdai...091007_8008.php
>
> -----
> WIRED IN WASHINGTON: THE DOPPELGANGER
> By David Hatch
>
>
> Will the real FCC chairman please stand up?
>
> Julius Genachowski, a close friend of President Obama since their > days at
> Harvard Law School in the late '80s and early '90s, was hand-picked > by the
> president in March to head the FCC. But a compelling argument can be > made
> that Genachowski shares the spotlight -- at least temporarily -- > with an
> unofficial co-chairman, Blair Levin.
>
> With a team of about 50 specialists, Levin has been tasked with what
> Genachowski describes as the commission's main responsibility: > crafting a
> national broadband plan that will serve as a grand vision for the > Internet
> in the 21st century.
>
> To meet a Feb. 17 congressional deadline, the agency has been > holding a
> steady stream of hearings, meetings and workshops since early > August, with
> Levin usually attending or huddling in advance with participants. > "It's a
> good kind of pressure. It focuses the mind," said the notoriously > rumpled
> policy wonk, who's been putting in long hours and weekends to keep > pace.
>
> Genachowski has repeatedly acknowledged he's in "listening mode" as he
> gets up to speed on the issues -- and understandably so, given the
> complexity of the subject matter and his newness to much of it. Yet > Levin,
> who seems to relish wading deep into regulatory minutiae, has had to > hit
> the ground running to meet the deadline.
>
> Genachowski and Levin crossed paths over the winter when they both > played
> integral roles shaping tech policy for Obama's transition team. > Levin was
> hired by the FCC in June -- a few weeks before Genachowski's June 29
> swearing in -- by then-Acting Chairman Michael Copps. The timing > suggests
> the decision was likely coordinated with Genachowski, though Levin > said
> he's not aware that his present boss was involved.
>
> As one of Washington's most prominent telecom experts, Levin was a
> contender for the FCC's top job and is unquestionably qualified for > it.
> Since arriving at the commission, he has conducted himself much like a
> chairman would -- delivering speeches, shaping policy and triggering
> headlines. He rivals Genachowski as a ubiquitous presence on the > lecture
> circuit and as a key voice at FCC meetings.
>
> When I asked Levin, whose title is executive director of the Omnibus
> Broadband Initiative, to respond to my thesis that he's effectively
> co-chairman, he was exceedingly modest and blunt.
>
> "You're wrong in two ways," he told me with the confidence of a man in
> charge. "The first way you're wrong, which is the most important, is > that
> Julius believes in empowering staff. I'm staff." Secondly, Levin > continued,
> the theory is misguided because his input reflects the work of other > many
> other talented professionals.
>
> But longtime FCC watchers contend that Levin's influence is > significant
> and that the plan's fate rests largely on his shoulders, even though > it's
> certain to be presented to the public as Genachowski's proposal. "It > will
> have Blair's imprimatur," a source said, adding, "You have to admire
> somebody who's willing to stand in the firing line like that."
>
> Both Genachowski and Levin worked at the commission during the Clinton
> administration under then-FCC Chairman Reed Hundt -- Levin as chief of
> staff and Genachowski as chief counsel. Genachowski later made his > mark as
> a venture capitalist and executive with Barry Diller's
> IAC/InterActiveCorp., with Levin emerging as a telecom analyst for the
> Stifel Nicolaus investment firm.
>
> Their resumes are equally impressive, and while no one would dismiss
> Genachowski as the agency's titular leader, had personal connections > not
> been a factor, we might have a chairman with a much easier to > pronounce
> surname.
>
> While Genachowski remains largely scripted and insulated by handlers
> worried about a misstep that could jolt the markets or draw media > scrutiny,
> Levin isn't afraid to throw a punch, as evidenced by his July > declaration
> that thousands of pages of initial comments on the broadband plan were
> sloppy, unimaginative and of little value.
>
> As reporters waited anxiously last week for the notoriously media shy
> official chairman to conduct an informal press scrum, it was Levin who
> strolled over first and appeared to delight in answering a round of
> questions.
>
> Genachowski reached a milestone Tuesday, celebrating his 100th day as
> agency chief. Over the next 100-plus days, the man to keep your eye > on is
> the regulatory phenom he helped foster and is sometimes overshadowed > by, at
> least when it comes to pontificating on the future of broadband.
>
> "We think we're doing well, but we recognize we're only graded by our
> final," Levin said at the end of a nearly five-hour public meeting > last
> week on the broadband plan. He should know -- since in February, > he's the
> one facing the biggest test.
>
> "We both feel the burden of delivering to this country a really great
> plan," Levin said, referring to his boss. "I don't think that > there's any
> way that either of us look good" if it fails.
>
> Levin revealed he will exit the agency shortly after the report is
> presented to Congress, and has no career plans beyond that. "I kid > people
> about this -- when it's over, I'm going to say, 'I'm going to Disney
> World.' "
>
>
> http://www.nationaljournal.com/congressdai...091007_2708.php
>
> -----
> POLITICAL ROUNDUP: HECK ENDS RUN FOR GOVERNOR; ANNOUNCES BID FOR > TITUS'
> SEAT
>
> Former state Sen. Joe Heck, a Republican, has ended his > gubernatorial run
> and said he will instead seek the seat held by freshman Rep. Dina > Titus,
> D-Nev., the Las Vegas Sun reported.
>
> Republicans recruited Heck after John Guedry announced last month he > was
> withdrawing because of family reasons.
>
> "I am increasingly alarmed at the Democratic policies coming out of
> Washington, D.C., and the direction our country is heading," said > Heck, a
> physician. "We must take action now to put our country back on a
> responsible track and I'm running for Congress to end the out-of-> control
> deficit spending and government-takeover policies that are literally
> bankrupting this nation's economy and future."
>
> Democrats quickly took aim at Heck.
>
> "With Joe Heck's last stint in public service chock full of examples > in
> which he put the special interests first, it's no wonder Joe Heck is
> putting another special interest first today -- his own," said a > spokesman
> for the Democratic Congressional Campaign Committee.
>
>
> http://www.nationaljournal.com/congressdai...091007_6600.php
>
> -----
> POLITICAL ROUNDUP: ORANGE COUNTY MAYOR PASSES ON BID AGAINST GRAYSON
>
> Orange County Mayor Rich Crotty announced late Monday he would not > run for
> the seat held by freshman Rep. Alan Grayson, D-Fla., the Orlando > Sentinel
> reported.
>
> After considering it for months, Crotty said a run for Congress "is > not a
> good fit at this time."
>
> While some Republicans viewed Crotty as one of the party's best > chances to
> win the seat, Crotty had some political liabilities. He faced a year > with
> legal and state ethics questions leading up to his re-election in > 2006. He
> was cleared of wrongdoing and won re-election, but suffered some > political
> fallout.
>
> Grayson last year defeated GOP Rep. Ric Keller and has drawn > notoriety for
> his recent sharp criticisms of Republicans and their healthcare > policies.
>
> Former GOP state Sen. Daniel Webster has been considering the race and
> told the paper he expected to make a decision this week.
>
> Other possible Republican candidates include: state Rep. Stephen > Precourt,
> businessman Armando Gutierrez Jr. and attorney Tico Perez.
>
>
> http://www.nationaljournal.com/congressdai...091007_9566.php
>
> -----
> POLITICAL ROUNDUP: BEAU BIDEN STAYS MUM ON SENATE RACE DECISION
>
> Democratic state Attorney General Beau Biden would not say whether he
> plans to run for the Senate seat once held by his father, following > GOP
> Rep. Michael Castle's announcement he would seek it, the Wilmington > News
> Journal reported.
>
> "I just got back from a year in Iraq," said Biden, son of Vice > President
> Biden. "I'm spending time with my family, I'm getting back to work and
> there will be time to make a decision."
>
> Biden did say positive things about Castle, who has served in Congress
> since 1992.
>
> "Congressman Castle is a good and decent man who served the state > well for
> a long time," Biden said. "Like all Delawareans, I look forward to > hearing
> his ideas about how we should address the problems facing the state."
>
> The seat is held by appointed Democratic Sen. Ted Kaufman, who has > said he
> will not seek a full term.
>
>
> http://www.nationaljournal.com/congressdai...091007_6293.php
>
> -----
> POLITICAL ROUNDUP: RUBIO SAYS HE RAISED MORE THAN $1M IN QUARTER
>
> Former state House Speaker Marco Rubio, a Republican, told supporters
> Tuesday he raised nearly $1 million last quarter in his bid for > Florida's
> open Senate seat.
>
> The total is good news for a campaign which took in $340,000 during > the
> second quarter. Rubio's primary opponent, Gov. Charlie Crist, > collected
> $4.3 million during that same time period.
>
> "This is a strong statement about the direction you believe our > Republican
> Party, our state and our nation should take," he told supporters in an
> e-mail Tuesday. "It is also an encouraging reminder about how piece by
> piece, supporter by supporter and idea by idea, we are building a > movement
> that will only continue growing and gaining momentum as we move > forward."
>
> Crist has yet to release his third-quarter fundraising numbers.
>
>
> http://www.nationaljournal.com/congressdai...091007_5770.php
>
> -----
> POLITICAL ROUNDUP: REPUBLICAN NEARS DECISION ON CHALLENGING SPRATT
>
> Republican state Sen. Mick Mulvaney said he is close to a decision on
> whether he will challenge Rep. John Spratt, D-S.C., the Rock Hill > Herald
> reported.
>
> Members of the state and local party say they expect Mulvaney to > run. An
> announcement should come in the next few days, according to York > County GOP
> Chairman Glenn McCall.
>
> "He's a strong conservative," McCall said. "It's giving the voters a
> choice, and seeing with these town halls and Freedom Rallies, are > people
> worked up for a moment in time, or will this translate into changing > the
> faces that represent us?"
>
>
> http://www.nationaljournal.com/congressdai...091007_7499.php
>
> -----
> POLITICAL ROUNDUP: GIANNOULIAS TAKES IN MORE THAN $1.1 MILLION IN > THIRD
> QUARTER
>
> Democratic state Treasurer Alexi Giannoulias, a candidate for the seat
> Sen. Roland Burris, D-Ill., will vacate next year, announced Tuesday > he
> raised $1.1 million during the last quarter.
>
> Meanwhile, former Chicago inspector general candidate David Hoffman
> reported raising $405,000 and loaning his campaign an additional > $500,000,
> the Chicago Sun-Times reported. Chicago Urban League President Cheryle
> Jackson has yet to release her fundraising totals.
>
> On the Republican side, Rep. Mark Kirk said he raised $1.6 million > during
> the third quarter. He says he has $2.3 million on hand.
>
>
> http://www.nationaljournal.com/congressdai...091007_7414.php
>
> -----
> HILL BRIEFS: HOLDER BEMOANS RESTRICTIONS ON GITMO DETAINEE TRANSFERS
>
> Attorney General Holder said Tuesday he is worried lawmakers' > opposition
> to bringing terrorist suspects held at the military prison in > Guantanamo
> Bay, Cuba, to U.S. prisons could hurt the effort to close the > detention
> center.
>
> Last week, the House passed a nonbinding recommendation against > bringing
> Guantanamo detainees to this country, even to face trial or be held > in a
> maximum-security lockup.
>
> Earlier this year, Congress passed a number of restrictions on > transfers
> of detainees, both within the United States or to other countries,
> requiring prior notification to lawmakers of such moves, and > explaining why
> such transfers are safe.
>
> "The restrictions that we've had to deal with on the Hill give me > great
> concern," said Holder, who disputed the claim, made often by > Republican
> lawmakers, that Guantanamo Bay detainees are simply too dangerous to > be
> brought to U.S. soil.
>
> "I don't see how that i

[Snuffysmith]

> CongressDaily AM for Thursday, Oct. 8, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: CBO DELIVERS GOOD NEWS FOR BAUCUS, BUT HOSPITALS BALK
> By Anna Edney, with Dan Friedman, Kasie Hunt and Billy House > contributing
>
>
> Senate Finance Chairman Max Baucus was quite pleased Wednesday with > CBO's
> analysis of his committee's modified healthcare overhaul proposal, > but the
> hospital industry says the number of Americans who will have > coverage under
> the measure is too low to allow hospitals to keep their $155 billion > pledge
> to help pay for the overhaul.
>
> The CBO scores on the Finance measure came as the House expects to > get its
> overhaul bill completed today and send it to scorekeepers Friday, > House
> Ways and Means Chairman Charles Rangel said.
>
> CBO told Baucus Wednesday the changes his panel made during its recent
> two-week markup brought the score up to $829 billion over 10 years, > $55
> billion more than Baucus' original mark. The measure will bring health
> insurance to an additional 29 million people, leaving 25 million > without
> insurance and bringing total coverage up to 94 percent of all > Americans.
>
> The measure would reduce the federal deficit by $81 billion.
>
> "Our balanced approach to health reform has paid off yet again with > the
> news today that the America's Healthy Future Act remains fully paid > for,
> begins to reduce the federal deficit within 10 years and makes > significant
> reductions in federal debt over the next several decades," Baucus > said.
>
> Charles Kahn, CEO of the Federation of American Hospitals, said > Wednesday
> the coverage numbers at 94 percent are not enough to hold up the
> cost-cutting deal hospitals cut with Baucus and the White House.
>
> "It does not provide sufficient coverage," Kahn said. "The deal > depends on
> sufficient coverage."
>
> Hospitals brokered the deal based on 94 percent coverage of all > residents
> and 97 percent coverage excluding illegal immigrants. The Finance > measure
> covers 91 percent of all residents and 94 percent excluding illegal
> immigrants.
>
> "We hope the Senate and the committee can fix this by the time we > get to
> the floor," Kahn said.
>
> It is unclear when Finance will vote on the bill. Sen. Olympia Snowe,
> R-Maine, who is Democrats' only reasonable hope of getting a GOP > vote in
> favor of the bill out of committee, said she wants a few days to > review the
> 27-page CBO analysis.
>
> "I would rather have the comfort level in having sufficient time to
> analyze it, and do it next week," Snowe said.
>
> Meanwhile, minutes before the score started making its way around > town,
> Rangel and Baucus met in Rangel's committee office in the Capitol.
> "Everything will be done by [today]. Everything," Rangel said.
>
> While House Democrats expect to meet today to go over revenue > raisers to
> pay for their overhaul, the structure of a public option -- whether > payment
> rates will be based on Medicare or negotiated by the government -- > has also
> been an issue.
>
> Rep. Raul Grijalva, D-Ariz., co-chairman of the Congressional > Progressive
> Caucus, suggested House Democratic leaders have decided to push for a
> public insurance option that would require the HHS secretary to > negotiate
> payment rates with providers.
>
> "It seems to me there's been a calculated decision that it's easier to
> shove the progressives and that we are going to roll over," Grijalva > said.
> "The vast majority of the majority supports Medicare-plus-five as > the rate
> structure. But for some reason, we continue to breathe life into the
> negotiated rate even though it has a small minority of support > within our
> Caucus."
>
> Leaders are facing pushback from moderate Democrats uncomfortable with
> basing the public plan on Medicare rates, as progressives prefer. But
> leaders presented a third, compromise option to the Caucus Wednesday.
> Described as a "trigger," it would implement Medicare rates if, > after a
> certain period of time, the rates negotiated by the HHS secretary were
> still too high to bring down healthcare costs.
>
> Rangel and Baucus seemed to be having a pre-conference of sorts when > they
> met Wednesday.
>
> "We're just comparing the two bills," Baucus said as he left Rangel's
> office, adding the caveat that neither the House nor the Senate has > final
> bills yet.
>
> "It's always good just to minimize misunderstandings," Baucus added > about
> the meeting.
>
> Baucus later said the CBO score refutes GOP assertions that the bill > would
> increase the deficit in its out-years.
>
> Favorable score in hand, Baucus for the first time touted his bill > on the
> Senate floor Wednesday, in a preview of the shift in focus from > committee
> to the full chamber.
>
> While aides familiar with the Finance bill have suggested they > expect the
> committee's bill to provide the main template for the merged bill > Senate
> Majority Leader Reid brings to the floor, Baucus said he expects > provisions
> from the Senate Health, Education, Labor and Pensions Committee's > version
> of the overhaul aimed at wellness and illness prevention to be > included in
> the merged measure.
>
> Republicans dismissed Finance's CBO score, arguing the cost of the > final
> measure will be higher.
>
> "This partisan Finance Committee proposal will never see the Senate > floor
> since the real bill will be written by Democrat leaders in a
> closed-to-the-public conference room somewhere in the Capitol," Senate
> Minority Leader McConnell said in a statement.
>
> A Reid aide said Wednesday that a bill this year to recover bonuses > paid
> to American International Group executives is likely to be used as a > shell
> bill into which the Senate healthcare bill will be inserted as a > substitute
> amendment. The contents of the AIG bill will be wiped out when the new
> language is inserted.
>
> A Democratic aide believes the Senate will move before the House in > the
> overhaul debate.
>
> The Constitution requires tax measures to originate in the House, so > the
> Senate needs House-passed revenue-raising legislation as a vehicle > for the
> health bill.
>
> The AIG measure, which never reached the Senate floor, is the only > such
> bill available on the Senate calendar, the aide said.
>
> Meanwhile, amid the movement on Capitol Hill, Republicans who have
> complained about being shut out of negotiations by Democrats and the > Obama
> administration were brought into two closed-door meetings.
>
> In one, HHS Secretary Sebelius met with about 30 members of the
> conservative Republican Study Committee.
>
> Afterward, Sebelius did not take questions. But the RSC chairman, > Rep. Tom
> Price, R-Ga., said Sebelius was asked to convey to the president > various
> Republican alternatives to lower cost and broaden access that are > not in
> the House bills -- and that she said she would.
>
> But Price added: "The fact of the matter is this is very late in the
> process. And what we have asked of the speaker and of the president > is to
> slow this down -- back up and take another look at it in a way that > allows
> a bipartisan solution to come forward."
>
> "We did not get that commitment today," he said. A separate meeting > was
> held between a handful of House Democrats and Republicans organized by
> House Democratic Caucus Vice Chairman Xavier Becerra of California.
>
> And today, Majority Leader Hoyer and Minority Whip Cantor are > planning to
> sit down for a similar meeting.
>
>
> http://www.nationaljournal.com/congressdai...091008_5767.php
>
> -----
> HOMELAND SECURITY: SPENDING BILL ENSNARED IN GITMO DISPUTE
> By Chris Strohm
>
>
> Although Democrats and Republicans publicly say the nation's homeland
> security is too important to play games with, the annual Homeland > Security
> Department spending bill is quickly becoming a political football on a
> field of partisan ploys.
>
> A $42.8 billion, FY10 Homeland Security spending bill cleared a major
> hurdle Wednesday, but further action on it is likely to be stalled > as a
> behind-the-scenes game between Democratic and Republican congressional
> leaders plays out over the thorny issue of closing down the military
> detention center at Guantanamo Bay, Cuba.
>
> Republicans suspect Democrats are going to use obscure procedural > tactics
> to prevent a politically difficult vote in the House. Adding fuel to > the
> fire, key Democrats are keeping mum on their plans.
>
> Senate and House appropriators met Wednesday to approve a conference
> agreement for the spending bill that includes language allowing > prisoners
> at the detention center to be brought to the United States for > trial. The
> transfers would be permitted after Congress receives a detailed plan > from
> the Obama administration describing the risks of doing so and how > those
> risks will be mitigated, as well as cost estimates and a > certification that
> the transfer poses "little or no security risk," under the agreement.
>
> House Republicans say the conference agreement flies in the face of a
> nonbinding GOP proposal approved by a 258-163 House vote last week > that
> would prevent detainees from being brought to the United States for > any
> reason. Over 80 Democrats voted for the proposal, which Republicans > offered
> as a motion to instruct appropriations conferees.
>
> Given the chance, House GOP leaders will likely offer the language > of that
> proposal as a motion to recommit if the conference agreement is > brought to
> the House floor for a vote. That would put Democrats who had supported
> blocking detainee transfers in a political bind. And, if a motion to
> recommit was approved, it would effectively kill the Homeland Security
> spending bill.
>
> But Republicans suspect they will never get a chance to do so.
>
> At Wednesday's conference meeting, House Appropriations ranking member
> Jerry Lewis pointedly asked Appropriations Chairman David Obey if the
> conference agreement would be brought to the House floor for an up-> or-down
> vote.
>
> Obey would not give a direct answer, saying that is a decision that > would
> be made "above my pay grade" based on the best judgment on how to > advance
> the spending bill. He said he had no idea when the bill would come > to the
> floor.
>
> Lewis and GOP aides said later they will be closely watching to see if
> Democrats try any procedural stunts. They said one option for > Democrats
> would be to bring the conference agreement through the Senate as an
> amendment to another spending bill, which would effectively prevent
> Republicans from offering a motion to recommit in the House.
>
> Echoing his chairman, House Homeland Security Appropriations > Subcommittee
> Chairman David Price, D-N.C, said in an interview that any > speculation on
> using such a strategy is "above my pay grade."
>
> Price and other Democrats argue that it makes sense to bring > detainees to
> the United States for trial and prosecution. They say the U.S. legal > system
> can safely deal with detainees.
>
> Price noted that Republicans agreed to put language in the spending > bill
> allowing detainees to be brought to the United States when the bill > was
> approved by the House Appropriations Committee.
>
> "We basically accepted the Republican language," Price said in the
> interview. "They moved the goal post."
>
> During the conference meeting, House Democrats defeated two GOP > amendments
> dealing with the military detention center and transfer of detainees.
>
> One amendment, offered by Lewis, would have prevented any funds from > being
> used to carry out President Obama's Jan. 22 executive order to close > the
> detention center within a year. Democrats argued the amendment would
> effectively stop any future effort to close the center and voted 9-6 > to
> defeat it.
>
> The other amendment, from House Homeland Security Appropriations
> Subcommittee ranking member Harold Rogers, R-Ky., would have > effectively
> prevented the administration from bringing detainees to the United > States
> for trial. It would also have required the secretary of Defense to > consult
> with the chairman of the Joint Chiefs of Staff on releasing any > photos of
> detainees. The amendment was defeated, 10-6.
>
>
> http://www.nationaljournal.com/congressdai...091008_6104.php
>
> -----
> ENVIRONMENT: EPA LIKELY TO DETERMINE TIMETABLE FOR SENATE CLIMATE BILL
> By Darren Goode
>
>
> Senate Environment and Public Works Chairwoman Barbara Boxer Wednesday
> said a revised draft climate bill should be finished by early next > week but
> it is unclear how quickly EPA will finish an economic analysis that > would
> precede any action on it by her panel.
>
> The revised draft "will be done the end of this week, the beginning of
> next week," Boxer said. "But it's going to be sent off to EPA before > we
> release anything so we know that it's right."
>
> Boxer has promised panel Republicans that she will not hold any
> legislative hearings or a markup until EPA has finished analyzing the
> economic impacts of a cap-and-trade bill she and Foreign Relations > Chairman
> John Kerry are co-sponsoring. EPA is missing key data regarding how > the
> cap-and-trade plan would allocate emission credits to businesses, as > well
> as potential language regarding coal.
>
> EPA took five weeks each to do two economic analyses of a draft House
> cap-and-trade bill before and after it was taken up in the Energy and
> Commerce Committee this year. That five-week clock started once the > agency
> had a complete draft to analyze. Boxer, though, predicted an > analysis of a
> Kerry-Boxer plan will not take as long.
>
> "They're saying it won't take them that long because our bill is very
> close to the House bill," Boxer said. "It will not take five weeks, > not at
> all; much shorter than that."
>
> But it is usually difficult to predict potential hiccups in a > complex EPA
> analysis that would involve several computer models, and agency > officials
> do not appear to have settled on a timeline. "We don't have anything > to
> announce re: the timing of this analysis right now," one EPA > official said
> in an e-mail.
>
> Republican aides on the panel have been told not to expect a hearing > on a
> draft bill until the last week of October at the earliest, a > spokesman for
> Environment and Public Works ranking member James Inhofe said. That > would
> push a markup until at least sometime in November. "Well, we're hoping
> sooner than that, but it depends on how long it takes the EPA," > Boxer said.
>
> Committee rules require a two-week notice for a hearing and no > notice has
> been issued.
>
> A senior Boxer aide said GOP committee aides were not told of any > timeline
> for a hearing or a markup and that the two-week notice could be > waived or
> shortened if both sides agree to do so. Inhofe's spokesman, though, > said
> Republicans will insist on the full two weeks.
>
> The Boxer aide said there is a deadline of Friday for staffers to > work out
> agreements on an updated version of a draft she and Kerry unveiled > last
> Wednesday and that there is a subsequent Wednesday deadline for > deals to be
> brokered on a member level.
>
> Even if Boxer and Kerry are able to move plans through their > respective
> panels by next month, there is dwindling time left for the full > Senate to
> take up a measure. There also is no indication how soon the Finance
> Committee can act on key aspects of a bill under its jurisdiction,
> including the emission credit allocation formula and protection for
> domestic manufacturers through possible tariffs.
>
> Boxer will have no trouble getting a bill through her panel, which > has a
> five-seat Democratic advantage and left-leaning tilt. Likewise, Kerry
> should have little trouble getting something through his panel. Far > more
> work will remain on the Finance Committee -- which is widely viewed > as more
> moderate and representative of the Senate -- as well as deals on > nuclear
> energy and other issues outside of the formal workings of the six
> committees with jurisdiction on a larger climate and energy strategy.
>
> White House climate czar Carol Browner, at an event hosted by The > Atlantic
> Friday, said President Obama is not expecting a bill to be signed > before
> U.S. negotiators travel to Copenhagen for international climate
> negotiations in December.
>
> The White House, meanwhile, has been firing off executive actions to > help
> shore up the administration's reputation in those talks. The latest > was an
> executive order Obama signed Monday requiring government agencies in > 90
> days to develop plans to reduce greenhouse gas emissions from their
> vehicles and facilities.
>
>
> http://www.nationaljournal.com/congressdai...091008_8672.php
>
> -----
> HEALTH: COBURN BLOCKS CONSIDERATION OF MEDICARE PART B PATCH
> By Peter Cohn
>
>
> Seniors are facing uncertainty over Medicare costs next year after > Sen.
> Tom Coburn, R-Okla., blocked a unanimous consent request Wednesday to
> approve a House-passed bill keeping Part B premiums constant at 2009
> levels.
>
> The House bill, which passed 406-18 on Sept. 24, is needed to freeze
> monthly Part B insurance premiums, which pay for seniors' physician > visits,
> at $96.40 next year. Those premiums are usually deducted from Social
> Security checks.
>
> But because of deflation, there is no Social Security cost-of-living
> adjustment planned for 2010 -- yet Medicare premiums are set to rise > anyway
> to keep pace with the program's overall costs. Thus, seniors would > see a
> net reduction in their Social Security benefits without the fix.
>
> Senate Finance Chairman Max Baucus brought the House bill straight > to the
> floor Wednesday hoping for swift passage to avoid those benefit > cuts. The
> bill's $2.8 billion cost would be taken from the Medicare > Improvement Fund,
> a pot of money for unspecified improvements to Parts A and B. Coburn > railed
> against the measure as unsustainable in the face of massive > entitlement
> obligations and a raid on future benefits.
>
> "Because we don't have the courage to face the situation in front of > us,
> we're just going to kick it down the road. That's what's wrong; > that's why
> we find ourselves with $12 trillion in debt, almost $100 trillion in
> unfunded liabilities," Coburn said. "The heritage of this country is > for
> one generation to sacrifice for the next. This generation in this > body has
> turned that upside down, and what we're saying to the next two > generations
> is, 'you sacrifice for us, because we don't have the courage to make > the
> hard choices.' "
>
> The Part B problem affects about 27 percent of Medicare > beneficiaries, or
> 12 million people, who find themselves in the unusual situation. That
> includes 8 million "dual eligible," lower-income seniors who receive
> Medicaid benefits; in their case, the federal government and the > states
> share the cost of the premium increases. The House bill would > essentially
> require the federal government to pick up the whole tab.
>
> Another 2 million seniors are affected because they make too much > money --
> more than $85,000 for individuals and $170,000 for couples. The rest > are
> people scheduled to enroll next year for the first time or who > already pay
> premiums on their own because their Social Security checks don't > cover the
> cost.
>
> Coburn estimated that since lower-income seniors are covered under > current
> law, only 5 percent of seniors would benefit from the legislation,
> including wealthier ones earning more than the income threshold.
>
> "So the question is, take $2.8 billion from our grandkids, one way > or the
> other, and protect that 5 percent of the seniors, including Bill > Gates and
> every other very rich person in this country," Coburn said, echoing > House
> Majority Leader Hoyer's opposition on the House floor -- although > Hoyer's
> target was Ross Perot.
>
> Baucus stressed that the bill was already paid for through a fund set
> aside for just such purposes, adding that "this is not for the Ross > Perots
> of the world." He said he would "continue to work to see that Medicare
> beneficiaries are not unfairly harmed."
>
>
> http://www.nationaljournal.com/congressdai...091008_3544.php
>
> -----
> APPROPRIATIONS: C-J-S MEASURE, CENSUS ATTRACT IMMIGRATION AMENDMENTS
> By Humberto Sanchez, with Carrie Dann contributing
>
>
> The Senate Wednesday defeated an amendment by Sen. David Vitter, R-> La., to
> the $64.9 billion, FY10 Commerce-Justice-Science Appropriations bill > that
> would cut police force funding to so-called sanctuary cities, which
> maintain policies of not inquiring into the detainee's immigration > status
> or cooperating with immigration authorities.
>
> The amendment failed 61-38.
>
> Vitter argued that these sanctuary cities violate the law and should > have
> to pay a price.
>
> "I believe this is very reasonable and very necessary because there > are a
> number of sanctuary cities who have made the affirmative public > decision
> that they are just going to flaunt and ignore and violate federal > law,"
> Vitter said.
>
> Sen. Robert Menendez, D-N.J., opposed the amendment and said that it > could
> cost at least 50 cities funds under the Community Oriented Policing
> Services program.
>
> "This amendment is downright dangerous," Menendez said. "It's > dangerous to
> threaten police funding to cities like New York, San Francisco, Los
> Angeles, Chicago, Washington, D.C., and smaller towns across America."
>
> Menendez added that sanctuary cities increase the cooperation of their
> communities in helping to fight crime.
>
> Today, the Senate is expected to consider an amendment to the C-J-S > bill
> by Vitter and Sen. Robert Bennett, R-Utah, that would deny funds for > the
> 2010 census unless it asks about citizenship status.
>
> "If we don't pass this amendment, or other legislation, the census > will
> move forward and would not distinguish in any way between citizens and
> folks in this country legally, and non-citizens," Vitter said on the > floor
> Wednesday. "Under the federal plan, the way the census is designed, > the
> U.S. House would be reapportioned counting illegal aliens," Vitter > said.
> "States that have large populations of illegals would be rewarded > for that.
> Other states, including my home state of Louisiana would be > penalized."
>
> Bennett, who recently introduced a similar stand-alone bill, said the
> amendment should be adopted because the Census Bureau already asks > about
> citizenship status in the American Community Survey, a more limited > survey,
> sent to a sample of the population and used to take a snapshot of its
> makeup.
>
> "Since the census is our once-every-10-year attempt to discover what
> America really is like, who the Americans are and where they live, > it seems
> to me very logical that the census should add this particular piece of
> information to it," Bennett said.
>
> Bennett argued that the Census Bureau should easily be able print an
> addendum to the census form to include the question, and would not
> overburden the agency.
>
> Commerce-Justice-Science Appropriations Subcommittee Chairwoman > Barbara
> Mikulski, D-Md., said she was reluctant to include the citizenship > question
> in the census because it would likely deter participation and would
> ultimately add to the burden of an already overworked Census Bureau.
>
> "The census determines the use of federal funds," Mikulski said. > "That is
> why we count persons, because regardless what your [citizenship] > status is
> you are a user of services and in some instances perhaps even a more
> intense user of services."
>
> She added that, "My colleagues say 'Why don't they just print one more
> piece of paper?' Well, everything we do affects the census at this > point
> [and] presents a logistical and financial challenge that borders on
> challenge to nightmare."
>
> Mikulski said that she would consult with Senate Democratic leaders > on the
> amendment before deciding how to deal with the proposal.
>
> In a Wednesday hearing before the Senate Homeland Security and
> Governmental Affairs Federal Financial Management Subcommittee, which
> oversees the census, Census Bureau Director Robert Groves said that > any
> changes to the 2010 census form would cause "logistical issues" > because the
> bureau has already printed over 100 million copies of the form, > which does
> not contain any questions about U.S. citizenship.
>
> Groves added that any attempt to exclude or deter illegal residents > from
> participating in the decennial count would violate "the tradition > and the
> law" of the census, which is mandated as a counting of all U.S. > residents
> in the place where they usually live.
>
> The Census Bureau has enlisted the help of community leaders > nationwide to
> encourage Hispanics to participate in the decennial count and to > convince
> skeptical respondents that their personal information will be kept > private.
>
> Meanwhile, Sen. John McCain, R-Ariz., withdrew an amendment he had > planned
> to offer to the C-J-S bill that would have eased the reimportation of
> prescription drugs from foreign countries such as Canada. McCain > withdrew
> the amendment after he received assurances from Senate Democratic > leaders
> that the amendment could be offered to healthcare reform legislation > the
> Senate is expected to take up in the next few weeks.
>
> A frustrated McCain has sought to offer the proposal after Senate > Majority
> Leader Reid twice failed to bring the matter to the floor after > promising
> McCain he would do so.
>
> Reid has been wary of bringing up the drug reimportation issue > during the
> debate on healthcare due its divisiveness. The Pharmaceutical > Research and
> Manufacturers of America supports healthcare reform under > conditions, but
> opposes the reimportation proposal. Also, Democrats are divided over > the
> issue, suggesting a fight over the measure could complicate passage > of a
> healthcare overhaul.
>
>
> http://www.nationaljournal.com/congressdai...091008_7191.php
>
> -----
> FINANCE: FRANK PUNTING ON SOME DERIVATIVES ISSUES TO PETERSON
> By Bill Swindell, with Billy House contributing
>
>
> As he attempts to redraft derivatives legislation, House Financial
> Services Chairman Barney Frank will have to handle objections to > provisions
> to his measure by officials with the SEC and Commodity Futures Trading
> Commission.
>
> But for some thorny issues, Frank is punting to House Agriculture > Chairman
> Collin Peterson, whose panel shares jurisdiction over the
> multitrillion-dollar market and has oversight of the CFTC and > commodity
> markets.
>
> Frank's proposal, which seeks to prevent gaps that led to the > downfall of
> American International Group Inc., sets a less-restrictive standard > than an
> Obama administration plan for derivatives regulation by providing more
> flexibility to market participants. For example, the administration > would
> require standardized derivative contracts to be traded through an > exchange
> or a clearinghouse, while Frank's draft would require that step only > if the
> SEC and CFTC thought it necessary.
>
> During a Financial Services hearing on the draft, Frank said that > three
> objections raised by CFTC Chairman Gary Gensler and Henry T.C. Hu, > director
> of the SEC's division of risk, strategy and financial innovation, > would
> have to be addressed by Peterson because they fall under Agriculture's
> purview.
>
> Gensler said he is concerned over how the draft would treat > agricultural
> swaps that are not traded on exchanges. Under current law, standard
> agricultural swaps are not considered an excluded commodity and thus > cannot
> be traded in over-the-counter markets. The Frank draft, like the
> administration proposal, would eliminate distinctions between > various types
> of commodity swaps. But the Frank measure does not contain protections
> Gensler believes are necessary to tighten protections to the OTC > market.
>
> "The discussion draft could inadvertently enable standardized > agricultural
> swaps to be traded bilaterally off exchange. It does not impose the
> protections that we believe are necessary for the market," Gensler > said.
>
> A spokesman for Peterson said he shares Gensler's concern on that
> provision.
>
> On another matter, Hu said he is concerned the Frank draft would > "enable
> significant arbitrage opportunities." The draft could result in > differences
> between regulating "swap" products and securities and futures > products, Hu
> added.
>
> A new framework for swaps and securities swaps would be established > under
> the draft to minimize differences in regulating the two products. For
> example, energy swaps would not be regulated in the same manner as > energy
> futures. But Hu argues that market participants are far more likely to
> focus on the choice between a swap or a regulated alternative such > as an
> option or a stock, rather than the specific underlying asset, such as
> whether it is an oil swap or a Microsoft swap. Hu contends such > differences
> could result in arbitrage into a newly regulated swaps market.
>
> "I will say that some of your points similarly are jurisdictional > issues
> between yourself and the CFTC, and that means between us and the
> Agriculture Committee," Frank told Hu. "There are some substantive > issues
> where I very much agree and a couple where I don't agree, but I -- I > do
> want to say they go through your points. Some of them will have to > go the
> Agriculture Committee."
>
> Finally, the Frank measure would not require cleared swaps to be > traded on
> exchanges, even though Gensler said such a requirement would give > end-users
> better transparency and pricing in a trading system that is > dominated by
> big banks.
>
> "I don't know why we would accommodate it, but it is natural that Wall
> Street might have a different view of this. But we're trying to > recommend
> things that benefit Main Street and end-users that use these > products,"
> Gensler said.
>
> "To the extent that we are dealing with swaps that are not > agricultural,
> we would be inclined to agree with you," Frank replied.
>
> Meanwhile, House Majority Leader Hoyer, Treasury Secretary Geithner > and a
> group of House Democrats met Wednesday to discuss regulatory reform
> legislation that Frank's panel will begin marking up next week. An > aide
> said the meeting focused on the proposed Consumer Financial Protection
> Agency and derivatives language. It was the second such meeting in > as many
> weeks.
>
>
> http://www.nationaljournal.com/congressdai...091008_5403.php
>
> -----
> FINANCIAL SERVICES: SECURITIES EXPERTS CALL FOR TRANSPARENCY FOR > RATINGS
> FIRMS
> By Michael Posner
>
>
> The market for mortgage-backed securities like those that > contributed to
> the collapse of the housing bubble, mass foreclosures and an > international
> financial crisis is now dead, financial experts told the Senate > Banking
> Securities Subcommittee Wednesday.
>
> Financial specialists recommended changes in the securitization > market to
> boost confidence and avoid another crisis, including requiring more
> disclosure and a tighter rein on securities rating firms which gave > "triple
> A" ratings to weak subprime mortgages.
>
> The markets for non-government mortgage-backed and collateralized debt
> obligations "are essentially dead," said Patricia McCoy, director of > the
> Insurance Law Center at the University of Connecticut Law School.
>
> "Private label (non-government agency) mortgage securitization > turned out
> to be an edifice built on a rotting foundation," McCoy said. "Once > that
> foundation gave way, rising nonprime delinquencies mushroomed into
> international contagion for a number of reasons." Those included > using the
> same loan as collateral for multiple bonds so that if the loan went > into
> default it jeopardized repayment of the bonds.
>
> She suggested several changes for the rating agencies, including a > ban on
> "issuer pays," in which securities issuers pay rating agencies to > get a
> rating. The Obama administration proposes giving the SEC more > oversight of
> rating agencies with expanded public disclosure.
>
> Banking Securities Subcommittee Chairman Jack Reed, D-R.I., said the
> financial collapse was due in part to the securities industry > emphasizing
> quantity over loan quality. The goal of any forthcoming legislation, > he
> said, should be to find ways to expand credit without harming > consumers.
>
> George Miller, executive director of the American Securitization Forum
> representing members of the securities industry, also called for more
> disclosure of actions by ratings agencies, including publication for
> investors of factors behind the rating scores. But he also said > reforms
> should be targeted and warned against "imposing undue impediments" in
> restoring the securitization market.
>
> William Irving, portfolio manager of Fidelity Investments, called > for more
> disclosure and stronger credit underwriting standards in the > origination
> process. Irving also supported more transparency for credit ratings.
>
> Christopher Hoeffel, representing the Commercial Mortgage Securities
> Association, also called for reform of credit rating agencies, > including
> more disclosure.
>
> "Fundamentally CMSA believes that one of the keys to long-term > viability
> is market transparency," Hoeffel said.
>
> Andrew Davidson, a New York securities consultant, said the SEC could
> continue to strengthen regulation of rating agencies, including > disclosure
> of conflicts of interest. He also said regulators should reduce the > use of
> credit ratings in regulations and supervisory practices.
>
>
> http://www.nationaljournal.com/congressdai...091008_9203.php
>
> -----
> BUDGET: DEFICIT TRIPLES IN FY09, REACHES 10 PERCENT OF GDP
> By Humberto Sanchez
>
>
> The CBO said Wednesday that the deficit for FY09, which ended Sept. > 30,
> totaled about $1.4 trillion, a $950 billion increase over the > shortfall
> posted in FY08.
>
> The deficit now represents 9.9 percent of the gross domestic product,
> which is up from 3.2 percent in FY08. That percentage is the highest
> shortfall, relative to the size of the economy, since 1945, CBO said.
>
> Revenues in FY09 were nearly $420 billion, or 17 percent, below > receipts
> in FY08 and totaled about 15 percent of GDP, the lowest level in > over 50
> years.
>
> Outlays increased by over $530 billion, or 18 percent, in FY09, to > nearly
> 25 percent of GDP, also the highest level in more than 50 years.
>
> About half of the spending increase, roughly $245 billion, resulted > from
> outlays for the Troubled Asset Relief Program, enacted last year to
> stabilize the financial system, and payments to Fannie Mae and > Freddie Mac,
> which were taken over by the government last year.
>
> House Budget Chairman John Spratt blamed the surge in the deficit on > the
> fiscal policies of the George W. Bush administration and a severe > economic
> recession.
>
> "It should be remembered that FY09 began during the Bush > Administration,
> which left in its wake the worst recession since the 1930s, > including a
> sharp plunge in revenues," Spratt said in a statement. "As a result, a
> large part of the FY09 deficit results from policies undertaken by > the Bush
> Administration, including the cost of the TARP. Much of the rest > stems from
> the cost of efforts like the [stimulus], which was necessary to keep a
> faltering economy from becoming an economic meltdown."
>
>
> http://www.nationaljournal.com/congressdai...091008_3344.php
>
> -----
> GOVERNMENT OPERATIONS: COST OF 2010 CENSUS REMAINS ELUSIVE, > OFFICIALS TELL
> PANEL
> By Carrie Dann
>
>
> Overseers of the 2010 census said Wednesday that it is almost > impossible
> to determine the total cost of the decennial count.
>
> "At this point, it's just unknown" if the cost of the census will
> ultimately surpass the current estimate of $14.7 billion, Commerce
> Department Inspector General Todd Zinser told the Senate Homeland > Security
> and Governmental Affairs Federal Financial Management Subcommittee, > which
> oversees the count.
>
> A GAO report released at the subcommittee's hearing showed that the > first
> major operation conducted by census workers -- the "address > canvassing"
> campaign to confirm millions of addresses nationwide -- went $88 > million
> over budget, or 25 percent of costs.
>
> "We deserve tighter controls or better estimates, one of the two," > said
> Sen. John McCain, R-Ariz., ranking member of the panel.
>
> Once expected to cost $11.5 billion, estimates of the funds required > to
> conduct the count jumped last year after a failed effort to equip > census
> workers with handheld computers.
>
> Census Director Robert Groves, who took the reins of the bureau in > July,
> acknowledged last month that the agency is revising its methods of > cost
> modeling.
>
> At the hearing, Census officials pointed to several factors that > make the
> final cost difficult to predict.
>
> A low rate of response to the mailed census would mean higher costs, > for
> example, because more census workers would have to be dispatched to
> retrieve the forms in person.
>
> Officials noted flaws in the bureau's process for fingerprinting its
> temporary workers as part of their criminal background checks.
>
> Robert Goldenkoff, director of strategic issues at GAO, told > senators that
> as many as 200 workers who participated in the address canvassing > effort
> may have committed crimes. Adequate background checks would have > prevented
> their hiring, he said.
>
>
> http://www.nationaljournal.com/congressdai...091008_7499.php
>
> -----
> PEOPLE: PEOPLE
> By Gregg Sangillo and Sara Jerome
>
>
> BANK NOTES. Brad Cheney is leaving his position as chief of staff to > Rep.
> Brad Sherman, D-Calif., to join the Mortgage Bankers Association. > Cheney
> will serve as a director of legislative affairs for MBA starting > Nov. 10.
> Cheney was the assistant to the chief of staff and systems > administrator
> for former Sen. Hillary Rodham Clinton, D-N.Y. In addition, he was > formerly
> a senior government relations associate at the Glover Park Group. > MBA has
> also announced the promotion of Pace Bradshaw to be director of > government
> affairs. Bradshaw was an aide to former Sen. John Sununu, R-N.H., > and he
> worked in the Office of Public Liaison at the Treasury Department.
>
> SUNSHINE STAFF. Corinne Stevens has become director of Florida Gov.
> Charlie Crist's Washington office, rising from the deputy post. She > was a
> senior legislative assistant for Rep. Adam Putnam, R-Fla. For some > of that
> time, she served as a shared employee with the House Rules Committee.
> Stevens also served as a staff assistant to former Rep. Dave Weldon, > R-Fla.
> She got her start in the D.C. office of former Florida Gov. Jeb Bush.
> Stevens hails from Jacksonville, Fla. She succeeds Kerry Feehery, who
> joined the staff of Sen. George LeMieux, R-Fla., and is now serving as
> chief of staff.
>
> BACK HOME. The Center for Reproductive Rights has announced that Laura
> MacCleery will be opening up its Washington office and working as > director
> of government relations and communications. MacCleery, who is moving > from
> New York for the job, grew up in Alexandria, Va. "My father was a
> Reagan-era political appointee, so I've been talking about public > policy
> over the dinner table since I was 7 years old," MacCleery said. Her > father,
> Douglas MacCleery, was a deputy assistant secretary in the Agriculture
> Department. Laura MacCleery spent eight years with the watchdog group
> Public Citizen, and she finished up as director of the group's > Congress
> Watch. In New York, she was deputy director of the democracy program > at the
> Brennan Center for Justice at New York University Law School. > MacCleery
> went to the University of Virginia and to law school at Stanford
> University. "I've always cared about women's issues," she said. > "This is an
> issue that we've lost a lot of ground on. I think we need a new > movement to
> make a full range of reproductive health choices available."
>
>
> http://www.nationaljournal.com/congressdai...091008_8766.php
>
> -----
> HOUSE RACE HOTLINE EXTRA: WAVE FORECASTING
> By Tim Sahd
>
>
> As the calendar has changed from September to October, candidates --
> particularly Republicans -- have been springing up all over the map. > Almost
> every day this month, interesting Republican challengers have popped > out of
> the woodwork, hoping to knock off seemingly safe Democratic > incumbents.
>
> It's certainly an unusual sight. For two cycles, beginning in 2006, > most
> strong and smart Republican challengers were content to sit out the
> Democratic wave in the comfort of a safe state legislative district > or law
> office, and not on the front lines in the battle for control of > Congress.
>
> But as the environment appears to be changing, those attitudes are
> changing.
>
> Take South Dakota Secretary of State Chris Nelson, a Republican. He
> announced late last week he'll challenge Democratic Rep. Stephanie > Herseth
> Sandlin.
>
> Nelson's a proven vote-getter statewide; he won with 56 percent in his
> 2002 race and didn't draw an opponent in 2006.
>
> Considering the GOP lean of the state -- Sen. John McCain, R-Ariz., > took
> 53 percent in 2008 -- it's surprising Republican A-listers haven't run
> against Herseth Sandlin. But Nelson fills the bill. She trounced her > 2008
> and 2006 challengers by 68 percent and 69 percent, respectively.
>
> That scenario is playing out all over the country. Reps. Bart Gordon,
> D-Tenn., Alan Mollohan, D-W.Va., Vic Snyder, D-Ark., Ike Skelton, D-> Mo.,
> Ron Kind, D-Wis., and others are facing their first electoral tests > in a
> long time.
>
> The talented candidates who form the GOP bench in these districts have
> been content to ride the pine the last two cycles, while lesser > candidates
> took the field in their place. That doesn't appear to be the case > this time
> around.
>
> If you look at the list of targeted Democrats, you'll see a pattern.
>
> Republicans are going after long-tenured incumbents who haven't > faced a
> threat in years. In addition, many sit in districts that have gone > solidly
> for Republicans at the White House level the last several cycles.
>
> That's why Democrats in Arkansas and Tennessee are feeling a bit > nervous.
> Snyder, Gordon and Reps. Marion Berry, D-Ark., John Tanner, D-Tenn., > and
> others just aren't used to facing any sort of opposition.
>
> Republicans are hoping these incumbents will show some rust as they > face a
> fight from these challengers.
>
> But is that a winning strategy? What exactly defines a vulnerable
> incumbent in a climate like this?
>
> In looking at the 1994 and 2006 wave elections, there were very few
> defining characteristics of the incumbents who were defeated, at > least if
> you consider those rubrics that parties usually use in assessing their
> chances in a district.
>
> First, a member could be in trouble if the opposing party's > presidential
> candidate won their district, or if they took 55 percent or less the
> previous cycle. In addition, just about every freshman is put under
> scrutiny, because their first re-election is usually their toughest.
>
> So how did those tests play out in 2006 and 1994?
>
> First, the previous cycle's presidential election results played a
> less-than-expected role in the House contests.
>
> In 1994, fewer than half of the 34 Democratic incumbents who lost > were in
> districts former President George H. W. Bush carried in 1992. In > 2006, just
> eight of the 22 Republican incumbents who lost saw Sen. John Kerry,
> D-Mass., win their districts in 2004.
>
> Another obvious target group is freshmen. But, at least in these two
> waves, they didn't always prove easy marks. Just two of the 2006 > losers
> were first-termers, while in 1994, nearly half of the casualties were
> freshmen.
>
> Finally, how about those who took 55 percent or less the previous > cycle?
> In these two wave elections, that statistic doesn't always point to an
> incumbent in trouble.
>
> In 1994, the losing Democratic incumbent averaged a 54 percent > victory in
> 1992.
>
> But defeated Republicans in 2006 were harder to spot ahead of time,
> because they averaged 59 percent in winning their 2004 races.
>
> Sure, a few of these incumbents had scandals, including Reps. Don
> Sherwood, R-Pa., and John Sweeney, R-N.Y., but most of the other > incumbents
> were defeated after feeling relatively comfortable, especially after > rather
> convincing 2004 victories.
>
> These data point to one thing: that in wave elections, which > Republicans
> hope this cycle develops into, the types of incumbents who lose vary
> wildly. There is no secret formula for finding the most vulnerable > members
> in wave elections. The only way to be successful is to expand the > playing
> field by targeting all types of Democrats, in all types of districts.
>
> And Republicans appear to be doing just that. While most of their > credible
> challengers are in GOP-friendly districts, others are in what would be
> considered safe seats for Democrats. Kind and Reps. Peter DeFazio, D-> Ore.,
> Loretta Sanchez, D-Calif., David Obey, D-Wis., and several open > seats have
> seen strong challengers rise up.
>
> But if 1994 and 2006 teach us any lessons, it's that when the winds of
> change are blowing, you never know who is going to be the one to > feel the
> hurricane-force winds.
>
>
> http://www.nationaljournal.com/congressdai...091008_9066.php
>
> -----
> POLITICAL ROUNDUP: OBAMA TO ATTEND OWENS FUNDRAISER IN NEW YORK
>
> President Obama will raise funds for 23rd District Democratic > candidate
> William Owens later this month, the Watertown Daily Times reported.
>
> Obama will be in New York City for a Democratic National Committee
> fundraiser Oct. 20 and plans to attend a separate event for Owens, > who is
> running for the seat former Rep. John McHugh, R-N.Y., held.
>
> It is the first fundraiser Obama has participated in for a non-> incumbent
> candidate seeking a House seat.
>
> "It's an honor to have the President's backing and I'm grateful that > he is
> taking the time to support our campaign," said Owens, in a > statement. "I
> look forward to working with President Obama in Congress where I'll > join
> his efforts to create jobs and get our economy back on track."
>
> Vice President Biden attended a fundraiser last month for Owens.
>
> Owens will face Republican Assemblywoman Dede Scozzafava and > Conservative
> candidate Douglas Hoffman in the Nov. 3 special election.
>
>
> http://www.nationaljournal.com/congressdai...091008_9493.php
>
> -----
> POLITICAL ROUNDUP: STATE LAWMAKER JOINS RACE FOR PERRIELLO'S SEAT
>
> Republican state Sen. Robert Hurt Wednesday filed paperwork with the > FEC
> to seek the seat held by freshman Rep. Tom Perriello, D-Va.
>
> "Over the last few months, I have met with many residents and > Republican
> leaders across the Fifth District," said Hurt. "I have come away > from these
> meetings struck by the urgent sense among our people that if the > current
> course of this great country is not quickly changed, we will soon be > left
> with a nation of more government, more taxes, fewer jobs, and even > fewer
> liberties."
>
> Hurt said he would work to promote small businesses and new jobs.
>
> While he opted to file his paperwork, Hurt said he would postpone a > formal
> announcement until the state's November elections.
>
> Some observers have suggested Hurt could face problems over a 2004
> legislative vote in favor of a $1.4 billion tax increase to close a > state
> budget gap, the Charlottesville Daily Progress reported.
>
> Hurt acknowledged the vote angered many in his party, but he said he
> believed at the time it was necessary.
>
> Hurt joins a growing field of Republicans in the contest that includes
> Kenneth Boyd, a member of the Albemarle County Board of Supervisors; > Feda
> Kidd-Morton, a teacher; Michael McPadden, a commercial airline > captain;
> Bradley Rees, an assembly line worker; and Laurence Verga, a real > estate
> investor.
>
>
> http://www.nationaljournal.com/congressdai...091008_4108.php
>
> -----
> POLITICAL ROUNDUP: FORMER MIAMI MAYOR ENTERS SENATE RACE
>
> Former Miami Mayor Maurice Ferre, a Democrat, announced Wednesday he > would
> run for Florida's open Senate seat next year.
>
> "At a time when Florida faces historic challenges, it's time to be > bold.
> That is what has defined my entire public service career, and that > is what
> our state needs now in Washington," said Ferre, 74. "I'm ready to > fight for
> Florida's future."
>
> Ferre, who served as mayor from 1973 to 1985, will face Rep. > Kendrick Meek
> in the primary. Democratic Rep. Corrine Brown is also exploring a bid.
>
> Ferre indicated the economy would be a focus of his campaign.
>
> "Job creation, economic stimulus and small business growth aren't just
> things that I talk about, they are things that I have done. And, > they are
> precisely what we need right now," he said.
>
> The seat is currently held by GOP Sen. George LeMieux, who was > appointed
> in August to succeed former Republican Sen. Mel Martinez, who > resigned.
>
> On the Republican side, Gov. Charlie Crist is facing former state > House
> Speaker Marco Rubio.
>
>
> http://www.nationaljournal.com/congressdai...091008_3422.php
>
> -----
> POLITICAL ROUNDUP: HORN TO MAKE ANOTHER CONGRESSIONAL BID
>
> Former radio talk show host Jennifer Horn, a Republican, will make > another
> bid for New Hampshire's 2nd District seat she announced Wednesday.
>
> However, unlike last year's unsuccessful bid against Democratic Rep. > Paul
> Hodes, Horn will not face an incumbent. Horn last year took 41 > percent of
> the vote against Hodes, who is running for the open Senate seat.
>
> Other Republicans considering the race include former Rep. Charles > Bass
> and former state Rep. Bob Giuda.
>
> On the Democratic side, attorney Ann McLane Kuster is running, while > state
> Rep. John DeJoie and Katrina Swett are considering bids.
>
>
> http://www.nationaljournal.com/congressdai...091008_2741.php
>
> -----
> POLITICAL ROUNDUP: POLL: DEMS, REPUBLICANS IN GENERIC BATTLE DEAD HEAT
>
> After gains in the last two election cycles, congressional Democrats > might
> have a tough fight on their hands next year, according to a Gallup > poll.
>
> Both parties are tied in congressional ballot preference of registered
> voters.
>
> Forty-six percent of those surveyed said they would vote for the > Democrat,
> while 44 percent said they would vote for the Republican when asked > which
> party's candidate they would support.
>
> Democrats held a 50 percent to 44 percent lead in July. Republicans > have
> gained since previous polls by drawing support from independents.
>
> Independents, prefer Republican to Democratic candidates, 45 percent > to 36
> percent. In July, independents were evenly divided in their party > voting
> preferences, and last fall they favored Democrats.
>
> Also troubling for Democrats, just 21 percent approve of the job > Congress
> is doing.
>
> The survey of 1,013 adults was conducted last Thursday through > Sunday and
> has a 4-point error margin.
>
>
> http://www.nationaljournal.com/congressdai...091008_1528.php
>
> -----
> HILL BRIEFS: JUSTICE DEPT. BLOCKS OFFICIALS FROM TESTIFYING UNDER OATH
>
> The Justice Department raised the ire of key lawmakers Wednesday > when it
> prevented Obama administration officials from being placed under > oath for a
> briefing before a House Intelligence subcommittee.
>
> The Intelligence Oversight and Investigations Subcommittee had > summoned
> Justice officials to testify ab

[Snuffysmith]

> CongressDaily PM for Thursday, Oct. 8, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: HOUSE DEMS EYE WINDFALL TAX ON INSURERS
> By Kasie Hunt and Billy House
>
>
> Democrats are considering a tax on insurance company profits as one of
> their key healthcare pay-fors, House Speaker Pelosi said today.
>
> The tax would help make up a $100 billion shortfall that would > result from
> raising a healthcare surtax so it only hits individual Americans > making
> more than $500,000 per year and families with more than $1 million in
> income, sources said.
>
> A plan to tax securities transactions also is on the table, but House
> leaders are no longer considering an excise tax on high-value > insurance
> plans, aides said.
>
> Pelosi said details of how much money could be raised by a tax on
> insurance company profits and how the tax would be imposed have not > been
> determined. "It's very preliminary," she said.
>
> Insurance companies pushed back against the idea. "There's a lot of > this
> misinformation out there about what health plan profits really are," > said
> Robert Zirkelbach, spokesman for America's Health Insurance Plans.
>
> Zirkelbach said profits were "much less than other industries within > the
> healthcare sector. The data's clear that health plan profits are not > what's
> driving rising healthcare costs."
>
> But Rep. Gerry Connolly, D-Va., said other healthcare stakeholders > have
> already agreed to pony up. "You got the pharmaceutical industries > and the
> hospital industry putting money on the table, and the insurance > [industry]
> is conspicuous by its absence. And they have the most profits," he > said.
>
> Democrats have been meeting through the day today to finalize pay-> fors in
> the health bill after sending three versions of the public insurance > option
> to CBO for scoring. One of those plans would pay providers based on
> Medicare rates, while two others would require the HHS secretary to
> negotiate rates directly.
>
> Which option the House will select remains uncertain. Pelosi > insisted the
> decision to send three versions of the plan to CBO is not a signal > that the
> robust plan does not have enough Democratic votes to pass the House.
>
> "This is not about whether we have the votes," she said. Rather, she > said,
> she wants members to see the CBO results from all the approaches in
> fairness to those who believe negotiated rates are a better option.
>
> Rep. Lynn Woolsey, D-Calif., said the Congressional Progressive Caucus
> could not support a public option with "triggered" Medicare rates, > in which
> the lower rates would kick in if negotiated rates did not push down
> healthcare costs after a period of time. "The House will have the > votes"
> for a Medicare-based public option, she said.
>
>
> http://www.nationaljournal.com/congressdai...091008_7747.php
>
> -----
> HEALTH: AIDES: CAPPING SURTAX WOULD LOSE $100B
> By Peter Cohn
>
>
> House Democrats have a smaller-than-expected healthcare revenue hole > to
> fill, as limiting a new surtax on wealthier households to those > earning
> more than $1 million only shaves about $100 billion off previous > revenue
> estimates, aides said.
>
> Rep. Xavier Becerra, D-Calif., said this afternoon that sum might be > as
> low as $84 billion.
>
> Combined with efforts to reduce the overall cost of the bill, the > surtax
> revenue estimates provide a bit of breathing room for Democratic
> tax-writers, who were sequestered in House Ways and Means Chairman > Charles
> Rangel's office at presstime.
>
> Options floated include new windfall profits taxes on insurers and > taxes
> on securities transactions, lawmakers said. But a new excise tax on
> "Cadillac" health insurance plans is off the table in the House, > sources
> said.
>
> As initially drafted by Rangel, the bill approved by Ways and Means > would
> have raised $544 billion in revenue through a new tax -- or > "surcharge" as
> Democrats call it -- on households earning more than $350,000 in > modified
> adjusted gross income. That includes income after certain deductions > such
> as retirement contributions and investment interest expense.
>
> The original tax would have begun at 1 percent and risen to 1.5 > percent
> for those earning more than $500,000, and top out at 5.4 percent for
> millionaires. The amount taxed would be the difference between the
> threshold amounts and overall income.
>
> After blowback from a number of House Democrats, including many > freshmen
> from suburban, middle-class districts, House Speaker Pelosi said no > family
> with less than $1 million in income should be subject to the tax, or
> $500,000 for individual filers.
>
> According to preliminary estimates, keeping the tax at roughly 5 > percent
> for those higher income levels but doing away with the taxes on the
> less-wealthy would reduce the revenue raised only by about $100 > billion,
> sources said.
>
> House Democratic Caucus Vice Chairman John Larson of Connecticut did > not
> have the figures on hand today but said he knows "not much" revenue > would
> be lost. "In fact, it's surprising. It's demonstrative of the amount > of
> wealth that exists in that small number of people in the country," > Larson
> said.
>
> According to figures from the Joint Committee on Taxation > distributed to
> Democratic aides, the surtax would only hit 0.3 percent of > households. That
> includes 1.2 percent of small-business owners, of which half derive > only
> about one-third of their income from small-business activities.
>
> Larson said Democrats were still discussing how to fill the remaining
> hole, which will be determined by CBO. "A number of people have > discussed
> windfall profits, but a number of people are discussing other forms of
> taxation, including transaction taxes," he said. "There's a number of
> issues that are still out there unresolved and on the table for
> discussion."
>
> Part of the debate includes finding revenue-raisers that will keep > up with
> escalating healthcare costs. An aide said that Rep. Jim Matheson, D-> Utah, a
> Blue Dog Coalition leader, expressed concern at the Caucus meeting > this
> morning that while the surtax would take effect in 2011 -- before > health
> benefits are even scheduled to begin -- it would rapidly be eclipsed > in
> later years by health spending.
>
>
> http://www.nationaljournal.com/congressdai...091008_2041.php
>
> -----
> HEALTH: AHEAD OF VOTE, SNOWE CALLS MATH 'PROMISING'
> By Anna Edney
>
>
> The Senate Finance Committee will reconvene Tuesday to consider > Finance
> Chairman Max Baucus' healthcare overhaul proposal, which CBO > determined
> Wednesday would reduce the federal deficit $81 billion over 10 years.
>
> Baucus is giving members nearly a week to review CBO's analysis of his
> $829 billion proposal after Sen. Olympia Snowe, R-Maine, said she > would not
> be comfortable voting until next week. Snowe, who has not revealed her
> position on the measure, is the only committee GOP member who might > vote
> for the proposal.
>
> "The numbers are promising," said Snowe, who talked with President > Obama
> today.
>
> "What do you think he wants?" she joked, adding that he was fishing to
> find out if she would vote for the Finance measure.
>
> She said they discussed bringing up her preferred trigger version of > the
> public option down the road, which would only be instituted in regions
> where private insurers do not offer affordable coverage. The president
> stressed to her that he has to first grapple with his own party, > which has
> not embraced the trigger idea.
>
> Meanwhile, Democrats are trying to defuse one of the main Republican
> complaints about the Finance measure -- that it will raise taxes on
> middle-income people, in part through penalties as high as $1,500 for
> violating the individual insurance mandate.
>
> Senate Democratic Conference Vice Chairman Charles Schumer of New York
> plans to try to deflate the GOP argument with an amendment on the > Senate
> floor that would set aside the penalties to go toward those > individuals'
> future premium purchases.
>
> "It is not a tax but can actually ... be used to buy insurance in a > future
> year," Schumer said. "This turns the penalty into a down payment on > future
> coverage, and will help make healthcare reform more affordable for
> middle-class families."
>
> The penalty money would be available for three years before some of it
> would be forfeited. The $4,500 maximum penalty-turned-premium > subsidy would
> not impact anyone's eligibility for subsidies to purchase insurance > through
> the exchange.
>
> Schumer has led the charge in the Senate to make coverage in the > overhaul
> more affordable, particularly since lawmakers are likely going to > end up
> requiring everyone to have insurance. Schumer and Snowe sponsored an
> amendment, included in the Finance proposal, that lowered the total
> penalties per two-adult household to $1,500 from $1,900.
>
>
> http://www.nationaljournal.com/congressdai...091008_9538.php
>
> -----
> FINANCE: DODD: NO OBSTACLES WITH SHELBY ON OVERHAUL
> By Bill Swindell and Dan Friedman
>
>
> Senate Banking Chairman Christopher Dodd said today he has no current
> sticking points with Banking ranking member Richard Shelby that could
> derail an agreement to revamp the nation's financial regulatory > structure.
>
> "We'll start at some point here, start to [draft] some legislative
> language, because you need to get beyond just a general conversation > on
> some of these issues," Dodd said. "I'm still optimistic that we'll > end up
> with a consensus bill."
>
> Dodd has been working behind closed doors to strike an agreement with
> Shelby that would make it easier to pass the measure on the Senate > floor.
>
> Their negotiations are in contrast to the more open process that House
> Financial Services Chairman Barney Frank is holding through hearings > and
> revised discussion drafts.
>
> The two senators have met regularly in recent weeks, including a > detailed
> discussion Wednesday. Dodd is trying to move a bill quickly because > of a
> fear that momentum could be stymied if it is kicked over to next year.
>
> "I'd like to get something done before we leave this year or the first
> part of next year. I'm not wedded to anything," Dodd said. "I don't > want to
> wait too long to miss the sense of urgency to get something done."
>
> Shelby has stressed that he wants a major curb on the Federal > Reserve's
> power, especially in limiting its role to be a systemic-risk > regulator to
> monitor the entire financial system.
>
> Dodd is pushing for creation of a Consumer Financial Protection > Agency,
> while Shelby has had qualms about creating more bureaucracy.
>
> Dodd said Majority Leader Reid has not told him when floor time will > be
> available for the bill. Health care "will be the priority on the > floor,
> obviously, and in the meantime we'll be having our meetings and > trying to
> draft a bill here," Dodd said. Dodd said he has not drafted language.
>
> Senate Democrats just met with FDIC Chairwoman Sheila Bair, Deputy
> Treasury Secretary Neal Wolin and Commodity Futures Trading Commission
> Chairman Gary Gensler on financial regulatory reform.
>
> Wolin, speaking for the administration, "made a strong pitch for how > badly
> we need" CFPA, Sen. Charles Schumer, D-N.Y., said. He said the
> administration officials said President Obama "feels very strongly > about
> it."
>
>
> http://www.nationaljournal.com/congressdai...091008_4642.php
>
> -----
> OUTLOOK: BENEFIT EXTENSION COULD REQUIRE FLOOR TIME
> By Dan Friedman and Billy House, with Humberto Sanchez contributing
>
>
> Senate Democrats are close to an agreement to extend jobless > benefits, but
> opposition from Republicans might require lawmakers to burn floor > time next
> week before voting on it.
>
> A political maneuver by Democratic leaders could add a twist to a
> conference committee's consideration of the FY10 Defense > Appropriations
> measure.
>
> While work on appropriations and other measures will continue to > dominate
> floor time next week, leaders in both chambers will continue working > toward
> bringing healthcare overhaul legislation to the floor in each > chamber. That
> is not likely until the week after next in the Senate and has not been
> scheduled in the House.
>
> Senate Majority Leader Reid and Finance Chairman Max Baucus plan to > amend
> a House-passed unemployment bill and extend benefits by four weeks > in all
> states and by another 13 weeks in 27 states where unemployment rates
> exceeded 8.5 percent over the last three months. The additional > weeks would
> be paid for by extending unemployment taxes through Dec. 31, 2011.
>
> A group of Democratic senators from states where unemployment is > below 8.5
> percent have been pushing for a 17-week extension in all states, but
> senators involved in the talks said they expected a deal that would > retain
> longer extensions for states with higher joblessness rates, but would
> lengthen the extension somewhere beyond four weeks in other states.
>
> Reid said he wants to move an agreement by unanimous consent, but
> Republicans said they would object to paying for the bill by extending
> taxes and would push to amend the bill to use stimulus funds > instead. That
> means Democrats will likely have to find floor time to pass the bill.
>
> Conferees could be named next week for the Defense Appropriations > measure,
> but action is not likely until the following week. Defense > appropriators
> from both parties said Democratic leaders are considering including > the
> budget for the District of Columbia in the must-pass Defense bill to > ensure
> its passage and avoid difficult votes over social issues, such as > whether
> to approve a provision allowing use of local tax funds for abortion-> related
> services. The District's budget is usually included in the Financial
> Services Appropriations bill.
>
> House Majority Leader Hoyer's office said conference reports on at > least
> two FY10 spending bills could move to the floor, including Homeland
> Security. Differences between Democratic and Republican congressional
> leaders over transferring detainees from Guantanamo Bay, Cuba, to > U.S. soil
> could slow floor action. The Interior-Environment Appropriations > conference
> report also could go to the floor, aides said.
>
> The Senate will likely continue work on the FY10 Commerce-Justice-> Science
> Appropriations bill early next week, the bill's manager, > Appropriations
> C-J-S Subcommittee Chairwoman Barbara Mikulski, D-Md., said today. > Reid
> hopes to follow that vote with quick approval of FY10 Energy and > Water and
> Agriculture appropriations conference reports.
>
>
> http://www.nationaljournal.com/congressdai...091008_2565.php
>
> -----
> FINANCE: FRANK POUNCES ON INDUSTRY CREDIT CLAIMS
> By Bill Swindell
>
>
> Keeping up his pressure on the banking lobby, House Financial Services
> Chairman Barney Frank said today the industry has presented weak > arguments
> against Congress moving on two issues that would further rein in its > power:
> curbing fees it charges merchants to use credit card networks and > speeding
> up the implementation date for new credit card rules.
>
> Industry groups have argued they can not comply with proposed > legislation
> that would move up the implementation date for placing new > restrictions on
> credit card issuers to Dec. 1. Frank countered those claims have > fallen
> flat since Bank of America announced this week it would not raise > credit
> card interest rates until the new law takes effect next year.
>
> That news "is indication that one of the large credit card > companies ...
> is able to comply," said Frank. "This is protection that shouldn't > wait and
> we should move forward."
>
> Congress in May passed legislation that includes a ban on issuers > raising
> rates on existing balances retroactively; a 45-day notice of any rate
> increase; and prevention of billing on balances for days not > included in
> the last billing cycle as a result of a grace period. The 45-day > notice
> requirement has taken effect, but other provisions do not kick in > until
> Feb. 22, and some will not be effective until Aug. 22.
>
> Bank critics say that institutions have been closing inactive > accounts,
> cutting credit limits and raising interest rates in advance of the > rules
> taking effect. Banks argue that they need time to change network > systems to
> comply with the new fee structure.
>
> Senate Banking Chairman Christopher Dodd also has expressed concerns > about
> banks raising interest rates before the law takes effect, but he > does not
> have immediate plans to move similar legislation.
>
> Frank also was skeptical about banking opposition to legislation by > Rep.
> Peter Welch, D-Vt., that would give the FTC the power to regulate
> interchange fees banks charge merchants for using a debit or credit > card.
>
> Retailers say the fees, which average 1.75 percent when they are > charged
> for using Visa and MasterCard, are arbitrary and that they have no > say in
> pricing. Banks and processors made $48 billion from the fees in 2008.
>
> Banks argue the interchange cost is minor given the services that they
> provide, and that any savings that retailers would garner from the > Welch
> bill are not required to be passed on to consumers. Frank noted that > in the
> early 1980s, the banking industry successfully lobbied Congress to > pass
> legislation that would ban merchants from imposing surcharges for > credit
> card use.
>
> "I thought it was a violation of free-market principles and voted > against
> it," Frank said. "The credit card industry has supported and has > maintained
> support for legislation in which the federal government restricts
> merchants' choices. Once you've done that, it's hard to go back to > the free
> market."
>
> Frank, who left the hearing after his opening statement, said it was > be
> the beginning in a series. The issue has divided panel members > because it
> forces them to choose between merchants and banks and credit unions.
>
>
> http://www.nationaljournal.com/congressdai...091008_4249.php
>
> -----
> HOUSING: PANEL DEBATES FUTURE OF FANNIE, FREDDIE
> By Otto Kreisher
>
>
> Although Senate Banking Committee members and witnesses today agreed > that
> changes in home financing giants Freddie Mac and Fannie Mae must be > part of
> regulatory reform, there was considerable disagreement over whether > their
> role of stabilizing and stimulating the home mortgage market could be
> privatized.
>
> Banking Chairman Christopher Dodd raised the question, without > indicating
> his preference, while Banking ranking member Richard Shelby indicated
> support for privatization and Sen. Bob Corker, R-Tenn., said the > financial
> crisis provided a "great opportunity" to end the government > competition to
> private lenders.
>
> The main witness, Edward DeMarco, acting director of the Federal > Housing
> Finance Agency, agreed privatization or other changes to the two
> government-sponsored enterprises should be considered. But he warned > there
> would be a long, difficult transition because of the massive amount of
> mortgages they hold.
>
> If government support were withdrawn, DeMarco said there would have > to be
> a clear demarcation between existing loans and those with no > government
> backing.
>
> William Shear, director of financial markets and community > investment at
> GAO, was highly critical of the role Freddie and Fannie played in the
> collapse of the securities market and presented three options for how
> Congress could treat them.
>
> One would be to retain their status as for-profit enterprises with
> government sponsorship, but add tight controls on the types of loans > they
> could underwrite.
>
> Another would be to make them a federal corporation with a limited > role of
> purchasing sound mortgages and avoiding the kinds of complex > transactions
> that created the financial crisis. The federally mandated role of > promoting
> home ownership for low-income and minority families would be shifted > to the
> FHA.
>
> The third option Shear offered was privatization or termination, > leaving
> the secondary mortgage business to the private sector.
>
> That option was endorsed by Peter Wallison, a former general counsel > at
> the Treasury Department now with the American Enterprise Institute.
>
> Wallison agreed with DeMarco that a transition to a private sector
> operation would be prolonged and difficult and warned that > continuing the
> massive financial support for the GSEs would make private financing > more
> expensive. That could lead to the GSEs assuming the credit risk for > the
> entire market, he said.
>
> DeMarco, whose organization was created by the Housing and Economic
> Recovery Act of 2008, said the total federal support for the GSEs > since
> they were put into conservatorship was about $1 trillion.
>
> Although they have shed many of the risky loans and have improved > their
> financial condition, "the short-term outlook for the enterprises > remains
> troubled and likely will require additional draws" on the government > funds,
> he said.
>
> Asked by Sen. Jim Bunning, R-Ky., if the taxpayers would get any of > their
> money back from the GSEs, DeMarco said he could not see that > happening any
> time soon.
>
>
> http://www.nationaljournal.com/congressdai...091008_5567.php
>
> -----
> APPROPRIATIONS: MCCAIN REBUFFED ON PBS CONSTRUCTION FUNDS
> By Humberto Sanchez
>
>
> With hopes of finishing the $64.9 billion FY10 Commerce-Justice-> Science
> Appropriations bill fading today, the Senate defeated, 64-33, an > amendment
> offered by Sen. John McCain, R-Ariz., that would have eliminated $20
> million in funding for the Public Telecommunications Facilities > Planning
> and Construction program.
>
> The program awards competitive grants that help public broadcasting
> stations, state and local governments, Indian tribes and nonprofit
> organizations bring educational and cultural programming to the public
> using telecommunications technologies.
>
> The program received $20 million for FY09, but the White House > recommended
> it receive no funding for the fiscal year. McCain argued that the > funds are
> not needed because the job for which it was designed has been > completed.
>
> Senate Commerce-Justice-Science Appropriations Subcommittee Chairwoman
> Barbara Mikulski, D-Md., opposed the amendment because the program > helps
> local public television station to modernize. "It also helps create > jobs in
> communities," she added.
>
> The Senate Appropriations Committee said in its report accompanying > the
> bill that, "Over the years, this funding has been critical to helping
> stations maintain services by providing funds to stations in need of
> equipment replacements and upgrades."
>
> "As radio stations across the nation face unprecedented financial
> hardship, now is not the time to propose the elimination of this > program,"
> it continued. "The Committee recognizes the overwhelming need the > program
> fills for communities, and denies the administration's request to > eliminate
> this program."
>
> Mikulski also raised a point of order, which was sustained, against an
> amendment from Sen. Jim Bunning, R-Ky., that would have required all
> legislative matters be available and fully scored by the CBO 72 hours
> before consideration by any subcommittee or committee of the Senate > or on
> the floor of the Senate.
>
> Mikulski said work on the bill would probably not conclude until next
> week.
>
>
> http://www.nationaljournal.com/congressdai...091008_1838.php
>
> -----
> JUDICIARY: PANEL CLEARS PATRIOT ACT REAUTHORIZATION
> By Andrew Noyes
>
>
> Legislation that would extend a pair of expiring USA PATRIOT Act
> provisions is teed up for a Senate vote after passage today by the
> Judiciary Committee.
>
> After two weeks of discussion, negotiations with the Obama > administration
> and a classified briefing from the head of the National > Counterterrorism
> Center, the bill was approved 11-8, with a number of amendments.
>
> The committee approved by voice vote a package of proposals by > Judiciary
> ranking member Jeff Sessions aimed at fixing language viewed by > federal law
> enforcement as "problematic from an operational perspective."
>
> One would limit use of data culled from a device that records numbers
> dialed from a particular phone line for administrative subpoenas > known as
> national security letters. Other proposals by Sessions tweaked the > judicial
> review standard and nondisclosure requirements associated with the > letters.
>
> Sessions also offered an amendment to require a higher standard for
> obtaining library records under one of the sunsetting PATRIOT Act
> provisions. He said the change, which was made at the request of the > Obama
> administration, was "a bitter pill" to swallow because he does not > believe
> libraries should be treated differently from banks and other > institutions
> that might be asked to provide information to investigators.
>
> Also accepted by voice vote was an amendment by Senate Minority Whip > Kyl
> that would give substantial weight to government certification of > perceived
> national security risks when disclosing NSLs.
>
> An amendment from Sen. Russell Feingold, D-Wis., requiring the > attorney
> general to issue minimization procedures for the letters, also won > approval
> by voice vote. He offered and withdrew a second proposal to ban the > bulk
> collection of overseas communications under the Foreign Intelligence
> Surveillance Act.
>
> The panel rejected 15-4 an amendment by Senate Majority Whip Durbin > aimed
> at strengthening standards for using national security letters. > Feingold
> backed the change, saying it would correct an "overly broad and > dangerously
> ambiguous standard," but Feinstein and others worried the proposal > could
> defeat the main purpose of the letters -- to allow investigators to > gather
> limited information at the earliest stages of their inquiries.
>
> Feingold said the measure as amended by the Judiciary Committee > "heads in
> the wrong direction."
>
> He introduced legislation with Durbin last month that would reverse > course
> on components of the PATRIOT Act, the FISA reauthorization bill > passed by
> Congress last year, and other surveillance authorities.
>
> "I won't stand in the way here, but I will reserve the right to > address
> some of these issues on the floor," Feingold warned when he voted > against
> the underlying measure.
>
> Leahy pledged to continue working with senators as the bill heads to > the
> floor. The version passed by the committee today "can extend the > needed
> authorities while providing increased accountability and allow both > the
> congressional and judicial branches to contribute to practices that > protect
> Americans' safety and freedoms," he said.
>
>
> http://www.nationaljournal.com/congressdai...091008_1401.php
>
> -----
> HILL BRIEFS: PELOSI: DEMS WEIGH JOBS INITIATIVES
>
> Employment. Speaker Pelosi today said Democrats are considering a > number
> of initiatives to help create jobs, including extending the tax > credit for
> first-time homebuyers and more state assistance. Pelosi suggested > that the
> credit, which is set to expire Dec. 1, might be expanded to cover > more than
> just first-time buyers. In addition to the homebuying credit and an
> extension of unemployment benefits, lawmakers will consult with > economists
> to consider such ideas as accelerated depreciation deductions for
> companies, extending the net operating loss carry-back to five years
> instead of two years and "some sort of state assistance." She said the
> discussions will focus on "what is that we can afford? What works > fastest?"
>
>
> http://www.nationaljournal.com/congressdai...091008_3712.php
>
> -----
> HILL BRIEFS: COALITION PUSHES TAX BREAK EXTENSION
>
> Taxes. A broad coalition seeking extension of expiring individual and
> corporate tax breaks rounded up 507 signatures from companies and > groups
> for a letter sent to lawmakers today. "Such an extension will help > build
> momentum for strong economic recovery and job growth," the letter > states.
> "Thousands of U.S. businesses and individual taxpayers would face > major tax
> increases if these tax provisions expire." It was signed by firms > across a
> wide range of industries and groups such as the U.S. Chamber of > Commerce,
> Financial Services Roundtable, Associated General Contractors, > Aerospace
> Industries Association and numerous others. The coalition letter > notes that
> President Obama endorsed one-year extensions of the expiring > provisions in
> his budget proposal. The tax breaks, separate from stimulus > provisions that
> are also expiring, include the research and development tax credit, > state
> and local sales tax deductibility and shorter cost-recovery for > restaurant
> and retail space improvements.
>
>
> http://www.nationaljournal.com/congressdai...091008_3611.php
>
> -----
> HILL BRIEFS: WTO ASKED TO REVIEW EU POULTRY RULES
>
> Trade. The United States has asked the World Trade Organization to
> establish a dispute settlement panel to consider the European Union's
> restrictions on the importation of U.S. poultry, the Office of the > U.S.
> Trade Representative said today. The request asks the panel to review
> whether the EU's ban on importing and marketing poultry meat and > poultry
> meat products processed with pathogen-reduction treatments is > consistent
> with the EU's WTO obligations. Previous attempts to negotiate with the
> European Union over this prohibition, which has been in effect since > 1997,
> have failed. The WTO dispute settlement body is expected to consider > the
> U.S. request Oct. 23. The European Commission said in a statement > that its
> rules do not allow the use of pathogen-reduction treatments on poultry
> produced within the European Union and that therefore its food safety
> system "does not discriminate against imported products."
>
>
> http://www.nationaljournal.com/congressdai...091008_6984.php
>
> -----
> HILL BRIEFS: CORRECTION
>
> Correction: A story in Tuesday's CongressDailyPM incorrectly stated > that
> former Delaware Lt. Gov. John Carney was still in office.
>
>
> http://www.nationaljournal.com/congressdai...091008_3200.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "They don't carry cards in their wallets that say: 'I'm a respected > member
> of the al-Qaida organization.' "
>
> -- Senate Minority Whip Kyl during today's Judiciary Committee > debate over
> amendments to the USA PATRIOT Act.
>
>
> http://www.nationaljournal.com/congressdai...091008_7191.php
>

[Snuffysmith]

> CongressDaily AM for Friday, Oct. 9, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: MODERATE DEMS WARY OF CBO NUMBERS ON BAUCUS MEASURE
> By Anna Edney with Dan Friedman contributing
>
>
> Moderate Senate Democrats cast a skeptical eye Thursday on promising > CBO
> numbers released regarding the healthcare overhaul proposal from > Senate
> Finance Chairman Max Baucus.
>
> The CBO score makes way for a Finance vote Tuesday on the $829 billion
> measure and helped build momentum for the Democrats' effort since
> scorekeepers have determined other versions of the overhaul bill in > the
> House and Senate would not slow the growth of healthcare spending or > reduce
> the deficit like Baucus' would. But moderate Democrats are not quite > so
> sure.
>
> Sen. Evan Bayh, D-Ind., was skeptical of CBO's analysis that the bill
> would be deficit neutral and reduce the federal deficit $81 billion > without
> "some alternatives that actually have some teeth in them in terms of > making
> sure that Congress honors the commitments of fiscal responsibility > that are
> implicit in this bill." Bayh is co-leader of the 16-member Moderate > Dems
> Working Group.
>
> Baucus' proposal contains a "fail-safe" mechanism that requires cuts > in
> premium subsidies if the implementation of the overhaul is expected to
> raise the budget deficit in the coming year. Bayh said he was glad the
> measure was in there but is not convinced the political will to make > the
> cuts will be available come crunch time.
>
> "Congress has proven not always so good at making fiscal decisions > in the
> past, so it's a tension between some of the legislative powers > wanting to
> retain their discretion versus those of us who have grown rather > skeptical
> about how that discretion's been utilized in the past," Bayh said.
>
> "Trust but verify," he added.
>
> Bayh expects he will seek to better lock in the cuts once an > overhaul bill
> hits the floor.
>
> "You can sort of see this coming. The savings from the pharmaceutical
> companies and the insurance industry, you can kind of count on that > because
> they're not very popular," Bayh said. "The hospitals are a different > story.
> People, you know, like their hospitals; they tend to trust their > hospitals.
> The hospitals have pledged big savings. I can easily forecast at > some point
> in the not-too-distant future the hospitals coming in and saying > 'You know
> what, this isn't working exactly the way we expected. Please spare > us from
> this,' and them getting a good hearing in here."
>
> Sen. Ben Nelson, D-Neb., flat out said he does not believe the CBO
> numbers.
>
> "I don't know that outside the Beltway people believe those numbers,"
> Nelson said.
>
> "The assumptions are pretty substantial," he added.
>
> CBO offered its analysis Wednesday with the caveat that the numbers > were
> only preliminary and could change if the proposal was converted into
> legislative language, rather than the conceptual language the > committee has
> been working from.
>
> The former insurance commissioner wants to see actuarial numbers on > how
> the bill will affect premiums, something Bayh expressed concern > about as
> well.
>
> While some moderate Democrats have not been supportive of their > party's
> overhaul efforts, Democratic leadership has indicated they would > attempt to
> convince those senators to vote for cloture to gain 60 votes even if > they
> do not vote for the bill. "My procedural vote is not on autopilot," > Nelson
> said. He indicated his decision will hang on the extent of his > dislike for
> the bill.
>
> Nelson has broken with liberal Democrats over the idea of a public
> insurance option. Meanwhile, 30 liberal senators wrote Senate Majority
> Leader Reid Thursday urging him to include a public option in the > merged
> Finance and Senate Health, Education, Labor and Pensions Committee > bill
> that will be considered on the floor.
>
> Baucus' bill does not include a public option like the HELP bill, but
> rather a co-op system of insurance. While Baucus' bill might have > better
> CBO scores than the HELP Committee's, Sen. Christopher Dodd, D-> Conn., who
> led the HELP overhaul debate, said numbers were not everything.
>
> "Scoring is important. I wouldn't minimize it," Dodd said. "But it's > not
> just scoring; it's actually doing something about something. ... > There are
> a lot of us that care about what actually happens in this bill. It's > not
> just the bottom line number, but what do you."
>
>
> http://www.nationaljournal.com/congressdai...091009_3069.php
>
> -----
> ETHICS: PANEL EXPANDS RANGEL PROBE TO INCLUDE DISCLOSURE FORMS
> By Billy House
>
>
> The House Ethics Committee announced Thursday that it was expanding > its
> investigation of Ways and Means Chairman Charles Rangel, a move that > the
> lawmaker's spokesman dismissed as "a technicality."
>
> Ethics Chairwoman Zoe Lofgren and ranking member Jo Bonner said in a
> statement that the committee had unanimously agreed to widen its probe
> "with respect to all financial disclosure statements and all > amendments
> filed in calendar year 2009."
>
> A source familiar with the panel's decision pointed to Rangel's
> disclosures in August that he failed to previously report hundreds of
> thousands of dollars in assets. He revised disclosure forms covering > the
> years 2002 through 2006 to account for the discrepancies.
>
> The committee has spent more than a year investigating allegations > of tax
> evasion and failure to report income from rental properties. He also > has
> been accused of using congressional letterhead to solicit donations > for a
> facility at the City College of New York that is named after him.
>
> According to the statement from Lofgren and Bonner, House > investigators
> have authorized nearly 150 subpoenas, interviewed 34 witnesses and > reviewed
> more than 12,000 pages of documents.
>
> They added that the investigative subcommittee had met more than 30 > times.
>
> Rangel has denied wrongdoing. A spokesman for Rangel played down the
> committee's announcement, saying that "as a practical matter, today's
> announcement is nothing new. Today's action by the committee is a
> technicality, as everything they referenced in today's announcement > has
> already been subject to ongoing review by the Ethics Committee and its
> staff."
>
> The committee's announcement came one day after House Democrats beat > back
> the latest Republican resolution to force him to step down as > chairman of
> the powerful tax-writing panel until the Ethics probe concludes.
>
> On the heels of Wednesday's vote, the Congressional Black Caucus > sent a
> letter to Speaker Pelosi criticizing the GOP efforts to punish Rangel.
>
> "Regrettably, the minority has repeatedly attempted to make an end-run
> around the bipartisan procedures for investigating possible ethics > issues,"
> they wrote. "These Republican attempts to presume guilt before an
> investigation has been completed violate the core American principle > of the
> presumption of innocence."
>
> The CBC letter noted that Rangel, himself, had asked the committee "to
> conduct a thorough investigation of any possible errors."
>
> After Wednesday's vote on the resolution, Minority Leader Boehner was
> among those keeping up the GOP criticism.
>
> "Instead of holding Chairman Rangel accountable for his actions, House
> Democrats are once again circling the wagons and demonstrating their
> loyalty to a leader who faces serious questions about his official
> conduct," he said.
>
>
> http://www.nationaljournal.com/congressdai...091009_6062.php
>
> -----
> EMPLOYMENT: SENATE DEMOCRATS REACH DEAL TO EXTEND JOBLESS BENEFITS
> By Dan Friedman
>
>
> After a week of talks, Senate Democrats agreed Thursday on a bill to
> extend unemployment benefits to all states, setting up possible Senate
> passage next week.
>
> Paid for by continuing the federal unemployment tax through June 30, > 2011,
> the bill extends jobless benefits in 50 states for 14 weeks, with > another
> six weeks of checks in 27 states where unemployment levels averaged > over
> 8.5 percent over the last three months.
>
> That is a longer extension than 13 weeks in the House-passed version > of
> the bill and longer than prior Senate proposals. Senate Majority > Leader
> Reid and Senate Finance Chairman Max Baucus had proposed a four-week
> extension in all states and another 13 weeks in high-unemployment > states.
> But senators from states with lower jobless levels objected, seeking
> uniform 17-week extensions.
>
> Senators from those states, led by Sen. Jeanne Shaheen, D-N.H., > blocked an
> effort to move the earlier bill by unanimous consent last week.
>
> "This agreement recognizes the need to extend unemployment benefits > for
> workers in every state whose unemployment benefits have run out or > will do
> so in the next several weeks," said Reid, who faces a potentially > tough bid
> for re-election next year. "More important for Nevadans, our > compromise
> recognizes that workers in the hardest-hit states have even greater
> challenges finding work and are in the greatest need of assistance."
>
> Shortly after reaching the deal, Democrats tried to move the measure > by
> unanimous consent. After the expected objection from Republicans, > Democrats
> then attacked the GOP for blocking help to uninsured Americans.
>
> Republicans had previously said they planned to object so they could
> attempt to amend the bill to use stimulus funding rather than a tax
> extension to cover the cost.
>
> Senate Majority Whip Durbin said Democrats will bring the bill to the
> floor under regular order as soon as next week. Lawmakers and aides > from
> both parties said they expected the bill will pass.
>
> "I have no doubt that at the appropriate time we'll be able to work > out
> some kind of agreement," said Minority Whip Kyl, who objected to the
> consent request. Kyl said Republicans want time to review the bill's
> scoring.
>
> In a preliminary estimate, CBO said the proposal would increase the
> deficit by $1.4 billion in 2010, but reduce it by $1.5 billion over > the
> next two years.
>
> The unemployment bill is one of several economic measures Democrats > are
> pushing in the face of bleak September jobless figures.
>
> House and Senate Democrats are also eyeing a way to extend an $8,000 > tax
> credit for first-time homebuyers, which is set to expire Nov. 30.
>
> Sen. Benjamin Cardin, D-Md., a key backer of the measure, said > Thursday
> that Democrats are discussing offsets, changes to make the measure > more
> effective and possible legislative vehicles. Using annual > legislation to
> extend expiring tax provisions is one possibility, Cardin said.
>
>
> http://www.nationaljournal.com/congressdai...091009_3566.php
>
> -----
> ECONOMY: FHA COMMISSIONER SAYS AGENCY WON'T REQUIRE BAILOUT
> By Bill Swindell
>
>
> The head of the Federal Housing Administration testified Thursday his
> agency will not require a bailout despite the fact its capital > reserve fund
> has dropped below the congressionally mandated level and as it > wrestles
> with a rising default rate.
>
> "Let me simply state at the outset that based on current projections > --
> absent catastrophic price decline -- FHA will not need to ask > Congress and
> the American taxpayer for extraordinary assistance. We will not need a
> bailout," FHA Commissioner David Stevens told the House Financial > Services
> Housing Subcommittee.
>
> Stevens attempted to reassure members that his agency, which provides
> mortgage insurance for homeowners who do not have large down > payments, was
> not in peril despite the fact that it will not meet a requirement > that it
> hold a 2 percent backstop for its capital reserve fund.
>
> The agency had to transfer money out of its reserve fund to cover
> projected losses in the next 30 years on the mortgages it insures.
>
> He noted that even though the funds were transferred, the monies > have not
> been spent and the agency has a total of more than $30 billion in > reserves.
> "Overall, the combination of our capital reserve will be higher than > it's
> ever been," said Stevens, a former president of real estate company > Long &
> Foster.
>
> The future of the agency is a prime concern for lawmakers because it > has
> played a crucial role during the housing downturn, insuring more > than 25
> percent of new home mortgages. By comparison, the agency insured 3 > percent
> in 2006 as it struggled to compete against a then-burgeoning subprime
> market that offered many loans based on poor underwriting standards. > Many
> of those loans later failed.
>
> Stevens has instituted reforms at the agency to prevent losses, such > as
> placing a chief risk officer in the agency, writing rules to > increase the
> net-worth requirements for mortgages and requiring lenders to submit
> audited financial statements.
>
> Housing Subcommittee Chairwoman Maxine Waters, D-Calif., said she was
> convinced that the FHA was not in dire straits even though Stevens
> testified the agency's "serious delinquent" rate for August was just > above
> 8 percent. The agency is self-funded; it relies on premiums it > collects
> from borrowers to cover claims.
>
> "I don't have any real questions if you are viable. You said quite > clearly
> that you are not coming here asking us for any extraordinary bailout,"
> Waters said.
>
> Rep. Gary Miller, R-Calif., said there would be "no housing market > today"
> if there was not support from the FHA and Fannie Mae and Freddie Mac.
>
> One voice of skepticism came from Ed Pinto, a former chief credit > officer
> at Fannie Mae, who testified that he thinks FHA will require a $54 > billion
> bailout within the next three years because it is insuring loans in a
> market that has not stabilized; the agency's loan volume has > exploded with
> a large loan-to-value ratio, and it has had a long history of not > being
> able to weed out faulty loans.
>
> But some panel members such as Waters seemed skeptical of Pinto's
> methodology, which assumed a 50 percent loss rate. No other industry
> witnesses vouched for Pinto's estimate, though some noted that > continuing
> job loss could make the housing rebound uncertain.
>
>
> http://www.nationaljournal.com/congressdai...091009_8511.php
>
> -----
> TRADE: BUSINESS GROUPS URGE EXTENSION OF ANDEAN PREFERENCES
> By Peter Cohn
>
>
> The heads of six major business organizations pressed congressional
> leaders Thursday to extend lapsing trade preferences for Andean > countries,
> in another example of the nonhealthcare workload piling up before > the House
> Ways and Means and Senate Finance panels.
>
> Extending the Andean Trade Preferences Act, which generally provides
> duty-free benefits for products from Colombia, Peru, Bolivia and > Ecuador,
> has become an annual ritual almost to the extent that the dozens of
> expiring tax "extenders" have.
>
> Earlier Thursday, more than 500 companies and trade associations > wrote to
> lawmakers urging action on those tax provisions, arguing a major tax
> increase was on the horizon if Congress does not act.
>
> Like most of the tax provisions, the Andean program expires Dec. 31, > and
> lawmakers have some decisions to make other than its routine > extension.
> First enacted in 1991 to help wean those countries away from the drug
> trade, in November former President George W. Bush revoked Bolivia's
> benefits -- a policy extended in June by President Obama -- after both
> administrations determined Bolivia had failed to cooperate on > counterdrug
> efforts. Obama chose to continue Ecuador's benefits, despite > concerns from
> the business community over that country's treatment of U.S. > companies.
>
> On Thursday, the business community letter, spearheaded by the > Emergency
> Committee for American Trade, urged the bipartisan leaders of Ways and
> Means and Finance to extend preferences for Peru and Colombia, but to
> revoke Ecuador's benefits and keep Bolivia shut out of the program.
>
> "ATPA has produced important economic opportunities and > diversification in
> the Andean region and strong economic relationships between the United
> States and Peru and Colombia. ATPA has been vital to sustain > hundreds of
> thousands of jobs in the formal private sector of those countries," > the
> letter states. "At the same time, there are serious concerns about the
> continued deterioration in the basic rule of law occurring in > Ecuador and
> Bolivia."
>
> The letter was signed by ECAT President Calman Cohen; Business > Roundtable
> President John Castellani; National Association of Manufacturers > President
> John Engler; National Foreign Trade Council President William Reinsch;
> United States Council for International Business President and CEO > Peter
> Robinson; and U.S. Chamber of Commerce President and CEO Thomas > Donohue.
>
> If benefits are extended to those countries, it should only be for six
> months and for "non-state dominated sectors," the letter continues. > Chevron
> Corp., in particular, due to a long-standing dispute with the > Ecuadorian
> government over an environmental remediation case, is pressing > Congress to
> remove Ecuador's benefits.
>
> In a recent filing with the Office of the U.S. Trade Representative,
> Chevron wrote that 94 percent of Ecuador's exports under ATPA in > 2008 were
> petroleum products, mostly shipped by state-owned Petroecuador. > Chevron
> wrote that U.S. policymakers should strip benefits for the state-> owned oil
> sector and limit preferences to private-sector farmers and > manufacturers.
>
> In a separate filing with USTR, Ecuador's ambassador to the United > States,
> Luis Gallegos, wrote that authorities are investigating Chevron's > claims,
> and the company should let the process play out in the courts. He also
> wrote that the country has been able to diversify beyond oil exports
> because of the preferences program, developing thriving businesses > such as
> cut flower and broccoli exports. If preferences are revoked, the > country
> could experience a 13 percent drop in exports that threatens to
> "destabilize the economy," he wrote.
>
> The business leaders added that trade preferences are not a > substitute for
> the stalled U.S.-Colombia trade accord, which would lock in reciprocal
> benefits for U.S. exporters. But even if Congress were to pass the
> agreement, there would be lag time before implementation. A separate > trade
> pact with Peru is already in place, but continued duty-free benefits > are
> necessary because some products are co-produced in Colombia and > Peru, the
> letter states.
>
>
> http://www.nationaljournal.com/congressdai...091009_4758.php
>
> -----
> APPROPRIATIONS: SENATE SENDS AGRICULTURE BILL TO OBAMA, CONTINUES ON > C-J-S
> By Humberto Sanchez
>
>
> The Senate Thursday sent President Obama the final version of the FY10
> Agriculture Appropriations bill after approving it, 76-22.
>
> Action on the measure comes after the House passed the measure > Wednesday,
> 263-162.
>
> The legislation is the second of the 12 appropriations bills to be > sent to
> Obama for his signature. Last week, Congress sent Obama the $4.6 > billion,
> FY10 Legislative Branch measure. That bill also included a continuing
> resolution to fund the government through October, as FY09 ended > Sept. 30.
>
> The Agriculture measure provides $121.1 billion, including $23.3 > billion
> in discretionary spending and $97.8 billion in mandatory programs at > the
> Agriculture Department, FDA, Commodity Futures Trading Commission > and the
> Farm Credit Administration.
>
> The $23.3 billion in discretionary funding is an increase of $2.7 > billion
> over FY09.
>
> The bill includes $350 million in aid to dairy farmers, a one-year
> extension of child nutrition programs and a provision requiring USDA > to
> proceed with a rule that would allow importation of processed chicken
> products from China.
>
> "This bill funds a range of programs that help improve the lives of
> Americans every day," including more resources for food and drug > safety,
> Senate Agriculture Appropriations Subcommittee Chairman Herb Kohl, D-> Wis.,
> told his colleagues as he urged passage of the measure on the floor.
>
> Agriculture Appropriations Subcommittee ranking member Sam Brownback,
> R-Kan., who also supported the bill, said he hopes next year that
> appropriators can keep down the cost of the bill.
>
> "I am always looking at ways that we can hold the budget numbers down
> because I think we've really got to get the budget under control,"
> Brownback said.
>
> His comments came after CBO reported this week the deficit for FY09
> totaled a record $1.4 trillion, a $950 billion increase over FY08.
>
> Also Thursday, the Senate inched toward completion of the $64.9 > billion,
> FY10 Commerce-Justice-Science Appropriations measure when it defeated,
> 65-33, a proposal from Sen. John Ensign, R-Nev., that spending in the
> measure be held at FY09 levels, excluding funding for the 2010 census.
>
> "In this era of record deficits, uncontrolled Washington spending, > we are
> just trying to say `let's live under last year's spending levels,' " > Ensign
> said.
>
> Commerce-Justice-Science Appropriations Subcommittee Chairwoman > Barbara
> Mikulski, D-Md., said she "vigorously opposed" the proposal.
>
> She said the cut would be devastating to federal law enforcement and > other
> important programs, such as NASA.
>
> Senate Majority Leader Reid Thursday night filed cloture motions on > the
> substitute for the C-J-S bill and the bill itself, setting up votes > next
> Tuesday.
>
> Meanwhile, Sen. Tom Coburn, R-Okla., is holding up consideration of > the
> $33.5 billion, FY10 Energy and Water Appropriations bill because a
> Senate-adopted Coburn amendment that would require public disclosure > of
> reports from agencies to Congress called for in appropriations bills,
> excluding sensitive reports on national security and defense, was not
> included in the final version of the bill.
>
> The amendment was adopted by voice vote in the Senate and was > something
> Coburn considered noncontroversial.
>
> "The only conclusion I can reach is that there is an intentional > desire to
> withhold information from the public and members of Congress who are > not
> members of the Appropriations Committee," he said in a letter to > leaders of
> the Senate Energy and Water Appropriations Subcommittee.
>
> Reid also filed a cloture motion on the Energy and Water spending > bill.
>
>
> http://www.nationaljournal.com/congressdai...091009_8231.php
>
> -----
> AGRICULTURE: NEW USDA RESEARCH AGENCY ALREADY WANTS MORE MONEY
> By Jerry Hagstrom
>
>
> The Obama administration launched a new agricultural research > institute
> Thursday, but farm lobbyists and others warned that its success > depends on
> whether Congress agrees to substantially increase funding for farm
> research.
>
> Otherwise, the observers say, the new National Institute of Food and
> Agriculture will become mired in decades-old battles over formula > funds for
> land grant universities, competitive grants favored by elite schools > and
> congressional earmarks.
>
> In response to declines in agricultural research, Congress created > NIFA in
> the 2008 farm bill in hopes of giving a farm agency the same stature > as the
> National Institutes of Health and the National Science Foundation.
>
> In a ceremony at the National Press Club attended by scientists and
> lobbyists, Agriculture Secretary Vilsack said: "It is no > exaggeration to
> say that NIFA will be a research 'start-up' company. We will be > rebuilding
> our competitive grants program from the ground up to generate real > results
> for the American people."
>
> Vilsack said that Roger Beachy, a plant scientist from the Danforth > Plant
> Science Center in St. Louis, will head NIFA.
>
> Vilsack and his undersecretary for research, education and economics,
> Rajiv Shah, noted that President Obama has proposed spending 3 > percent of
> GDP on all science, but neither Vilsack nor Shah mentioned the size > of the
> USDA research request in the FY11 budget. Last week Shah told a House
> Agriculture subcommittee he was not authorized to answer questions on
> budget requests.
>
> The FY10 Agriculture Appropriations bill approved by the House and > Senate
> this week included $2.76 billion for research, or $174 million above > FY09.
> Of the total, $1.25 billion went to the Agricultural Research > Service and
> $1.34 billion to NIFA, including an increase of nearly $61 million for
> competitive agricultural research grants.
>
> Vilsack said the institute would focus on five areas -- global food
> security and hunger, climate change, sustainable energy, childhood > obesity
> and food safety.
>
> Shah has emphasized that he wants to commission "breakthrough" > research by
> emphasizing a few select areas, similar to the approach of the
> Seattle-based Gates Foundation where he worked previously. But he > said USDA
> would continue to support research on local agricultural problems > such as
> wheat scab in the Midwest. "We realize production systems are > local," Shah
> said.
>
> Organic and small farm advocates have criticized Beachy's appointment
> because he supports genetic modification of seeds. Beachy said he > hopes
> those groups will learn that he is "pragmatic, not an ideologue," > but added
> that he regrets that the definition of organic food excludes genetic
> modification. Beachy said he shares with organic advocates the goal of
> reducing use of pesticides.
>
>
> http://www.nationaljournal.com/congressdai...091009_8900.php
>
> -----
> TELECOMMUNICATIONS: HOUSE SUBCOMMITTEE OKS BILL TO FORCE TV VOLUME > DOWN
> By Juliana Gruenwald
>
>
> Broadcasters, cable operators and other video providers would be > forced to
> turn down the volume on their television commercials if legislation
> approved Thursday by a House panel is enacted.
>
> The House Energy and Commerce Communications Subcommittee approved the
> legislation by voice vote. As originally introduced by Rep. Anna > Eshoo,
> D-Calif., the bill would have required the FCC to adopt regulations > a year
> after its enactment that would prohibit television commercials from > being
> "substantially" louder than the programming those ads accompany.
>
> House Energy and Commerce Communications Subcommittee ranking member > Cliff
> Stearns, R-Fla., noted that the issue is complex given that "many > different
> entities are responsible for producing and distributing the content
> consumers see and hear. Each element may be recorded or provided at a
> different volume level."
>
> To address such concerns, the subcommittee approved, by voice vote, a
> substitute amendment offered by Eshoo that would require the FCC to > adopt
> regulations incorporating the technical standards developed by the > Advanced
> Television Systems Committee, a nonprofit group that develops > voluntary
> standards for digital television, aimed at reducing the volume in TV > ads.
>
> The substitute measure would give the FCC one year to adopt the
> regulations and allow the agency to provide a one-year waiver, > renewable
> for an additional year, to broadcasters, cable operators or other > video
> distributors able to show that obtaining the equipment needed for
> compliance would constitute a severe financial hardship.
>
> Some lawmakers voiced concern about the bill's impact on small cable
> operators, who simply pass through programming from bigger > providers. Rep.
> Zack Space, D-Ohio, said many of these operators "have no means of
> adjusting (ad) volume," adding that he hoped these firms would not > be held
> accountable for something "over which they have very little control."
>
> Eshoo said no one had raised the concerns voiced by small cable > operators
> to her in the last two years and that she was wary of adopting an > 11th-hour
> amendment that could introduce a loophole.
>
> House Energy and Commerce Communications Subcommittee Chairman Rick
> Boucher, D-Va., said he expected the full committee to take up the > measure
> at its next markup, which would probably take place this month.
>
>
> http://www.nationaljournal.com/congressdai...091009_3970.php
>
> -----
> PEOPLE: PEOPLE
> By Gregg Sangillo
>
>
> PROMOTIONS. There has been some shuffling in the office of Rep. Steve
> Kagen, D-Wis. Peter Holstein and Michael McGourty have both been > promoted.
> McGourty, who has been with Kagen since he took office in 2007, is a > senior
> legislative assistant. McGourty has also worked as a field organizer > for
> Progressive Patriots Corps. Holstein, who has also worked for Kagen > since
> 2007, is now a legislative assistant. Brittany Taylor, a Green Bay > native
> and intern, is working as a staff assistant. Though Kagen Legislative
> Director Rob Mosher has taken that position for Rep. Doris Matsui,
> D-Calif., a spokesman in Kagen's office said they have not named a
> replacement.
>
> GOOGLE HER. Mistique Cano is the new manager of global > communications and
> public affairs in Google's Washington office. Cano was vice > president of
> communications at the Leadership Conference on Civil Rights, a large
> umbrella group. She hails from Corpus Christi, Texas, and came to > D.C. to
> earn her degree in political communication from The George Washington
> University. "I've always been interested in politics and [its] > intersection
> with press. ... Most kids would come home from school and have their > snack
> and watch 'Saved By The Bell' or whatever, but I used to come home and
> watch the White House press briefings," she says with a laugh. Cano > worked
> for pollster Stan Greenberg at Greenberg Quinlan Rosner. She later > worked
> on the presidential campaign of Sen. John Kerry, D-Mass., as press
> secretary for Pennsylvania, a job that entailed a lot of traveling > around
> the state.
>
> EAST BOUND. Sarah Tuke, an aide for Rep. Bart Gordon, D-Tenn., is > leaving
> Capitol Hill to take a position doing policy work at the Japanese > Embassy
> in Washington. Tuke began working for Gordon's personal office in > February
> 2007 after doing an internship at the House Science Committee, which > Gordon
> chairs. In a statement made in the Congressional Record, Rep. Gordon > said,
> "From the first day she walked into my office, her enthusiasm and kind
> spirit impressed me and everyone she worked with."
>
> FORMER AIDES. Two former aides for Senate Minority Leader McConnell > just
> registered to lobby for Altria Client Services, a tobacco and food > company.
> Hunter Bates is a former chief of staff and chief legal counsel to
> McConnell who is now with C2 Group, a firm where he was a founding > partner.
> Also registered to lobby for the company is Lesley Elliot, a former
> legislative aide to McConnell on health, education, and Social > Security
> issues. Also listed to register was Jeff Murray, a chief of staff for
> former Rep. Bud Cramer, D-Ala., who was a longtime Blue Dog Coalition
> member.
>
>
> http://www.nationaljournal.com/congressdai...091009_9544.php
>
> -----
> 1600: TURNING WORDS INTO A CAGE
> By George E. Condon Jr.
>
>
> When President Obama crisscrossed the Sunday morning TV landscape
> recently, much was written about what he said on four of the five > shows he
> visited. But almost no attention was paid to his appearance on the > fifth
> show, most likely because it was Spanish-language Univision's "Al > Punto."
>
> But it was an exchange between the president and "Al Punto" host Jorge
> Ramos that was perhaps the most interesting back-and-forth of the > day. The
> exchange provided both insight into Obama's approach to immigration > reform
> and a reminder of just how tough it is to steer a centrist course on > such a
> hotly contested issue.
>
> Ramos is more than just a news show host. He is also an advocate
> determined to push Obama into backing immigration reform that will > legalize
> millions of persons in the country illegally. In the interview, he > scolded
> Obama for using the words "illegal immigrants" in his address to > Congress
> instead of the "undocumented immigrants" label he favored in the > campaign.
>
> "Why the change? You said words matter. Now, why do you choose to > use the
> language that is being used by those who criticize immigrants?" > demanded
> Ramos.
>
> "Well," responded Obama, "keep in mind ... I was addressing > misinformation
> by the other side that was engaging in scare tactics. So I was > essentially
> quoting them. I was saying, 'for those of you who are saying that > illegal
> immigrants are going to be covered under this plan,' I said that's not
> true. Right? So I'm using their language because I was addressing the
> misinformation that they are providing."
>
> Setting aside the rhetorical stretch here by the president -- and > the fact
> that White House Press Secretary Robert Gibbs has no aversion to > saying
> "illegal immigrant" -- the episode vividly points out some of the > pitfalls
> of the immigration debate, one where the two sides can't even agree on
> terms.
>
> "More than any other issue, this illegal immigrant issue is one of
> language," said Republican pundit Frank Luntz, who has written > extensively
> on language. "And the language you use at the beginning tips off > where you
> stand at the end."
>
> He said Obama, in his address to a joint session of Congress, had
> positioned himself well with the majority of Americans by using the > most
> neutral term and avoiding the more charged "illegal alien" or > "undocumented
> worker."
>
> "His language was actually centrist," Luntz said. "But then he goes > and
> apologizes to those who have extreme positions on illegal immigration.
> Calling them 'undocumented workers' is not mainstream America. > 'Illegal
> immigrant' is mainstream America."
>
> In apologizing, the president put himself at odds with Sen. Charles
> Schumer, D-N.Y., who is expected to be the prime sponsor of > immigration
> reform when it is introduced this year. Schumer in June took a > strong stand
> on terminology, telling a conference at Georgetown Law Center, "When > we use
> phrases like 'undocumented workers,' we convey a message to the > American
> people that their government is not serious about combating illegal
> immigration, which the American people overwhelmingly oppose. If you > don't
> think it's illegal, you're not going to say it. I think it is > illegal and
> wrong and we have to change it."
>
> Of course, Ramos is unhappy about more than language. He also chafes > at
> what he sees as the president's reluctance to push immigration > reform to
> the front of his packed agenda. In that, he reflects a general > unease among
> Hispanic activists and the Latino press.
>
> His recent column was headlined "End of the Honeymoon." Another > Hispanic
> columnist, Esther Cepeda, wrote that Hispanics -- who gave 67 > percent of
> their vote to Obama -- have come to realize that "the man doesn't > actually
> walk on water." If asked when Obama will push immigration reform, > she said
> her answer now is "Don't hold your breath."
>
> Jerry Kammer, a senior research fellow at the Center for Immigration
> Studies, said Latino activists are clearly suggesting "A) You owe > us, and
> You promised us." They understand that the president is wrestling > with
> two wars, health care, regulatory reform, climate change and economic
> recovery. "But they are nevertheless insisting that he honor the > pledge
> that he made" to get a bill moving by the end of the year, Kammer > said.
>
> Despite everything else on the president's plate, the White House > thinks
> he and the administration are on track to do just that. The > president put
> Homeland Security Secretary Napolitano in charge of clearing the > path for
> the bill. To that end, she has spent the last few months holding > more than
> 20 discussions with stakeholders -- law enforcement, immigrant rights
> groups, human rights groups and local officials -- in states > including New
> Jersey, Kansas, Nevada, New Mexico, California, Nebraska and > Mississippi.
>
> "The dialogue has been productive; it's been fruitful; it's been very
> interesting to see," said Homeland Security spokesman Matt Chandler. > While
> acknowledging that some are impatient to see a final bill, he > defended the
> pace.
>
> "The president has said he wants to see something moving and that's > what
> we're doing. I think that it makes sense to do this right rather > than do it
> quickly. We have seen the failure of these bills in very recent > history and
> there are lessons to be learned there and we want to see this done > right,"
> he said.
>
>
> http://www.nationaljournal.com/congressdai...091009_8560.php
>
> -----
> POLITICAL ROUNDUP: OWENS WINS ENDORSEMENT OF WORKING FAMILIES PARTY
>
> Democrat Bill Owens picked up the Working Families Party endorsement > in
> his race for special election to succeed former Rep. John McHugh, R-> N.Y.,
> the Albany Times Union reported.
>
> "In this economic crisis, the North Country needs a champion in > Congress
> who will put people before politics. Bill Owens knows how to create > jobs
> because he has already helped bring more than 2,000 of them to > upstate New
> York," said Rick Oppedisano, co-chairman of the Central New York > Working
> Families Chapter.
>
> Conservative Party candidate Doug Hoffman has attacked the Republican
> candidate, Assemblywoman Dede Scozzafava, over her relationship with > the
> liberal party. Scozzafava has been endorsed by the party in her > previous
> elections.
>
> A campaign spokesman said Scozzafava, who is also running on the
> Independence Party line, did not seek a Working Families Party > endorsement.
>
>
> http://www.nationaljournal.com/congressdai...091009_6955.php
>
> -----
> POLITICAL ROUNDUP: CRIST ANNOUNCES TAKING IN $2.4 MILLION IN QUARTER
>
> Florida Gov. Charlie Crist raised more than $2.4 million in > contributions
> during the third quarter in his quest for the seat GOP Sen. George > LeMieux
> will vacate next year.
>
> His campaign will also report it has $6.2 million on hand.
>
> Crist raised $4.3 million in the second quarter.
>
> "I am overwhelmed by the support we received during our second > quarter and
> throughout the first five months of the campaign," said Crist.
>
> Crist's primary opponent, Marco Rubio, announced earlier this week he
> raised nearly $1 million.
>
>
> http://www.nationaljournal.com/congressdai...091009_4913.php
>
> -----
> POLITICAL ROUNDUP: SCHOLLENBERGER SEEKS TO END DEMOCRATIC DROUGHT IN > KAN.
>
> Pledging to try to break "the stranglehold that conservative > Republicans"
> have had over Kansas, Democrat Charles Schollenberger Thursday > kicked off
> his bid for the seat GOP Sen. Sam Brownback will vacate.
>
> Schollenberger said he made the decision to run after touring the > state
> for six months.
>
> "Our two U.S. Senators aren't attuned to our times, aren't attuned > to the
> needs of working Kansans. Nor are the two Republican congressmen who > want
> to be elected to a Senate office next year," said Schollenberger, a > former
> journalist. "We're going to change that next year."
>
> Reps. Todd Tiahrt and Jerry Moran are battling for the Republican
> nomination.
>
> Kansas has not elected a Democratic senator since 1932.
>
>
> http://www.nationaljournal.com/congressdai...091009_5979.php
>
> -----
> HILL BRIEFS: HOUSE APPROVES DEFENSE BILL AMID PROTEST BY REPUBLICANS
>
> The House voted Thursday to approve a final $680 billion, FY10 defense
> authorization bill, 281-146, with most of the "no" votes cast by
> Republicans.
>
> The bill, which the Senate expects to take up next week, typically > enjoys
> strong bipartisan support. But 131 Republicans voted against it > after a
> conference committee decided to keep in the final bill a Senate > provision
> that extends the definition of federal hate crimes to include those
> targeting sexual orientation and gender identity.
>
> House Armed Services Chairman Ike Skelton said Wednesday he tried to > strip
> the language from the conference report, but Senate Armed Services > Chairman
> Carl Levin, who led the effort to add it to the Senate version of > the bill,
> refused.
>
> Before the vote on final passage, Republicans narrowly lost a motion > to
> recommit, 216-208, which would have sent the bill back to conference > with
> instructions to eliminate the hate crimes language.
>
>
> http://www.nationaljournal.com/congressdai...091009_2677.php
>
> -----
> HILL BRIEFS: LAWMAKERS INTRODUCE BILL TO ADDRESS TRADE BARRIERS
>
> Lawmakers in both chambers introduced legislation Thursday to > require the
> executive branch to make sure other countries reduce trade barriers to
> United States exports before they are granted preferential access to > the
> U.S. market.
>
> Led by House Rules Chairwoman Louise Slaughter and Democratic Sens.
> Sherrod Brown of Ohio and Kay Hagan of North Carolina, the lawmakers > said
> the measure would require a tougher stance by U.S. negotiators and
> eventually lead to a reduced trade deficit. "We must demand that our > trade
> negotiators are firm and have clear guidelines so they can closely > enforce
> rules and make sure that all countries play by the same rules. A level
> playing field is all we are asking for," Slaughter said in a > statement.
>
> Their bill would require the president to certify to Congress that a
> trading partner has lowered barriers to U.S. exports, whether those
> barriers are tariffs or non-tariff measures such as quotas, import > licenses
> or other bureaucratic hurdles.
>
> The lawmakers said since the United States has few if any nontariff
> barriers to imports, negotiators need the ability the bill would > give to
> require nontariff barrier concessions by other countries before > tariffs are
> lowered or removed.
>
> That move could upend delicate negotiations such as the Doha round of
> global trade talks in which nontariff barrier and tariff discussions > are
> kept separate and self-contained.
>
>
> http://www.nationaljournal.com/congressdai...091009_2797.php
>
> -----
> HILL BRIEFS: FCC TO SEEK FEEDBACK ON 'SPECIAL ACCESS' RATES
>
> The FCC is stepping up its review into whether incumbent
> telecommunications carriers such as AT&T and Verizon are overcharging
> competitors for access to their networks under deregulated rates.
>
> In a letter this week to Sen. Daniel Inouye, D-Hawaii, FCC Chairman > Julius
> Genachowski said the agency would issue a public notice in 30 days > to seek
> further comment on special access rates.
>
> Inouye, the Senate Commerce Committee's second-ranking Democrat and > its
> former chairman, has previously raised concerns that nondominant > carriers
> are being overcharged. The feedback will help the agency conclude > related
> rulemaking proceedings launched in 2005 and 2007, Genachowski wrote.
>
> On Wednesday, the FCC issued a separate notice seeking comment on > whether
> the cost of accessing infrastructure controlled by incumbents is an
> impediment to future broadband deployment being contemplated under a
> national plan to be presented to Congress in February.
>
>
> http://www.nationaljournal.com/congressdai...091009_2896.php
>
> -----
> HILL BRIEFS: PATENT OFFICE ABANDONS REGS THAT CAUSED ANGST, LAWSUIT
>
> Patent and Trademark Office Director David Kappos on Thursday > rescinded
> controversial regulations issued by the Bush administration that > patent
> applicants felt restricted their capacity to protect intellectual > property.
>
> The 2007 rules, aimed at streamlining patent processing by limiting > the
> number of continuation patent applications and claims that can be > presented
> to the agency during a given examination, were enjoined by a federal > court
> and never took effect.
>
> The PTO will ask that the case be thrown out and GlaxoSmithKline, > one of
> two plaintiffs in the lawsuit, will join the agency's motion for > dismissal.
>
> The executive director of the American Intellectual Property Law
> Association, Todd Dickinson, lauded Kappos' abandonment of the rules,
> calling it "a significant step... toward rebuilding the relationship"
> between the PTO and the user community.
>
>
> http://www.nationaljournal.com/congressdai...091009_9733.php
>
> -----
> HILL BRIEFS: WAXMAN PANEL TO TACKLE BLOCKED NFL SUSPENSIONS
>
> The House Energy and Commerce Committee will hold a hearing next > month on
> the case of two NFL players whose suspensions were blocked by a > federal
> appeals court, Energy and Commerce Chairman Henry Waxman said > Thursday.
>
> Waxman is concerned that the legal issues raised in the case "could > result
> in weaker performance-enhancing drugs policies for professional > sports,"
> the committee said in a statement issued to the Associated Press.
>
> The committee provided the statement after the AP reported on the > hearing,
> citing two people with knowledge of the panel's plans.
>
> The NFL had attempted to suspend Pat Williams and Kevin Williams of > the
> Minnesota Vikings for four games each after they tested positive for a
> banned substance during training camp in 2008. But the players sued,
> arguing that the NFL's testing violated state workplace laws. A > federal
> judge issued an injunction blocking the order, which was upheld last > month
> by a three-judge panel of the 8th U.S. Circuit Court of Appeals.
>
>
> http://www.nationaljournal.com/congressdai...091009_8035.php
>
> -----
> MARKUP REPORTS: HOUSE BILL SEEKS TO AID NEW SMALL BUSINESSES
> By Andy Leonatti
>
>
> The House Small Business Finance and Tax Subcommittee approved a bill
> Thursday to authorize grants and microloans to assist new small > businesses
> and those owned by women, veterans and minorities.
>
> The measure sponsored by Rep. Brad Ellsworth, D-Ind., was approved by
> unanimous voice vote as part of a package of bills to modernize the > Small
> Business Administration's capital access programs, which Finance and > Tax
> Subcommittee Chairman Kurt Schrader, D-Ore., said had not been > updated in
> more than eight years.
>
> The bill updates the SBA's microloan program, which provides loans > of up
> to $35,000 to startup and newly established small businesses. The > program
> is designed to help low-income borrowers, especially those with little
> credit history, along with women, minority and veteran borrowers who > do not
> qualify for larger SBA or conventional loans.
>
> The program also helps intermediaries such as nonprofits with > experience
> helping low-income small businesses get loans in order to meet their > goals.
> The bill authorizes $80 million for technical assistance and $110 > million
> in direct loans annually for FY10-FY11.
>
> The bill also increases the amount that intermediaries may borrow from
> $750,000 to $1 million for the first year of participation and $7 > million
> in the remaining years that the intermediary remains in the program.
>
>
> http://www.nationaljournal.com/congressdai...091009_5315.php
>
> -----
> MARKUP REPORTS: INCREASED SBA ENERGY LOANS WIN SUBCOMMITTEE APPROVAL
> By Andy Leonatti
>
>
> Legislation to expand loans in a Small Business Administration > program to
> help low-income areas and to increase small-business investment in
> renewable energy won approval Thursday by the House Small Business > Finance
> and Tax Subcommittee.
>
> The bill, sponsored by Rep. Ann Kirkpatrick, D-Ariz., would > reauthorize
> funding for SBA's New Markets Venture Capital Program, which is > designed to
> help venture capital firms provide seed money to small businesses in
> low-income areas.
>
> Kirkpatrick's bill authorizes $100 million for FY10 and FY11 for > debenture
> guarantee authority and $20 million for operational assistance > grants to
> supplement private capital raised by the NMVC firms.
>
> The bill expands the reach of investment capital from NMVC firms by
> encouraging them to invest in manufacturing businesses in low-income > areas.
>
> The SBA requires NMVC firms to invest at least 80 percent in equity
> capital investments in designated low-income geographic areas, of > which
> there are currently six. The geographic areas are defined as census > tracts
> or counties that have a poverty rate of 20 percent or higher, or a > tract or
> county within a metropolitan area where 50 percent of households > make 60
> percent or less than the area's median gross income.
>
> Kirkpatrick's bill, however, widened the definition of a low-income
> geographic area to include census tracts and counties where the median
> family income is lower than 80 percent of the statewide median family
> income.
>
> The SBA defines small enterprises for the NMVC program as those making
> less than $2 million in profits for the previous two years, or > having net
> worth below $6 million.
>
> The bill also authorized $1 billion in debenture guarantees for the > SBA
> Renewable Energy Capital Investment program, and makes the program
> permanent by removing its pilot program designation. The program > would help
> small businesses reduce energy consumption and helps manufacturing
> companies update machinery and equipment.
>
>
> http://www.nationaljournal.com/congressdai...091009_3696.php
>
> -----

[Snuffysmith]

> CongressDaily AM for Tuesday, Oct. 13, 2009
>
> --------------------
> CONTENTS
>
> OUTLOOK: HEALTH OVERHAUL, FINANCE MARKUPS TAKING CENTER STAGE
> By Anna Edney and Kasie Hunt, with Bill Swindell, Dan Friedman, > Humberto
> Sanchez, Megan Scully, Darren Goode, Carrie Dann, Chris Strohm, > David Hatch
> and Andrew Noyes contributing
>
>
> Although appropriations measures will occupy most floor time this > week,
> markups of legislation to overhaul the healthcare and financial > sectors
> will command the most attention.
>
> After months of negotiations and weeks of markup, the Senate Finance
> Committee will vote this week on Finance Chairman Max Baucus' $829 > billion
> healthcare proposal. The vote is expected to come today, which frees > up
> senators who will work to merge the Finance and Senate Health, > Education,
> Labor and Pensions Committee's overhaul bill to begin meeting in > earnest.
>
> The Finance measure is expected to get through committee, but Sen. > Olympia
> Snowe, R-Maine, was mum last week on whether she supports the > proposal and
> will grant it a smidgen of bipartisan approval.
>
> "The numbers are promising," Snowe said last week after CBO released > its
> preliminary analysis of the measure. CBO found Baucus' proposal would
> reduce the federal deficit $81 billion over 10 years and reduce the > growth
> of healthcare spending, something none of the four other House and > HELP
> pieces of overhaul legislation can claim.
>
> But America's Health Insurance Plans released its own study Sunday > arguing
> that the Finance Committee bill could cost individuals $1,700 more and
> families $4,000 more by 2019.
>
> "Several major provisions in the current legislative proposal will > cause
> healthcare costs to increase far faster and higher than they would > under
> the current system," said AHIP CEO Karen Ignagni.
>
> A Finance Committee spokesman called the study "a health insurance > company
> hatchet job, plain and simple" and the White House said "this is an
> insurance industry analysis that is designed to reach a conclusion > which
> benefits the industry, and does not represent what the bill does."
>
> Senate Finance Health Subcommittee Chairman John (Jay) Rockefeller,
> D-W.Va., Senate Agriculture Chairwoman Blanche Lincoln and Sen. Ron > Wyden,
> D-Ore., will be a few to watch during the vote.
>
> Rockefeller is a champion of the public option and is unhappy with the
> co-op alternative in Baucus' proposal. Lincoln is facing a potentially
> tough re-election race in a conservative state, and Wyden wants more
> choices.
>
> Wyden has pushed to allow everyone to enter the exchange if they > want to
> rather than require those with employer-sponsored coverage to stay > there,
> but the move would significantly raise the cost of the bill because > those
> in the exchange are eligible for federal subsidies.
>
> The principal negotiators who will merge the Finance and HELP bills > are
> administration officials, Senate Majority Leader Reid, Baucus, and > Sen.
> Christopher Dodd, D-Conn., who shepherded the HELP bill. Staffers > have done
> some of the meshing.
>
> Democratic senators are at odds over whether to include a public > option in
> the legislation or some variation with smaller federal involvement. > Snowe
> said last week she discussed with President Obama bringing up her > trigger
> proposal down the road, which would initiate a public option only in > areas
> of the country where affordable insurance was not made available.
>
> Snowe said she cannot support an immediately implemented public option
> that does not give private insurers time to improve their products > and make
> them affordable.
>
> The HELP and Finance bills diverge over whether an overhaul should > include
> an employer mandate. HELP's version did, while Finance includes a > "free
> rider" provision that fines companies that do not provide insurance a
> portion of subsidies any of their employees might receive to purchase
> insurance in the exchange.
>
> Much of the merged bill is expected to resemble Baucus' proposal, > given
> his promising CBO score, but HELP does expect some of the committee's
> wellness and prevention provisions to be included.
>
> Dodd also said he believes a HELP provision that creates a federal
> insurance program to provide assistance to disabled or elderly > people who
> need help with daily tasks will be included. CBO found the long-term > care
> provision would reduce the federal deficit by $58 billion over 10 > years.
> HHS would need to reduce benefits and increase premiums in the > following
> decade to maintain the program's solvency.
>
> House leaders this week will continue negotiating the final details of
> their health reform overhaul. Lawmakers are waiting for CBO scores > on three
> versions of a public option.
>
> One of those plans would base reimbursement rates on Medicare, while > the
> other two would require the HHS secretary to negotiate prices with
> providers. The Congressional Progressive Caucus prefers the first > option,
> and leaders say it is likely to save the most money -- $110 billion > in all.
> Many moderate Democrats prefer negotiated rates, despite an estimated
> savings of only $25 billion.
>
> The scores won't just help the Caucus decide how to structure the > public
> plan. They will determine how much revenue lawmakers will need to > make sure
> the plan is deficit neutral. House leaders are considering a tax on
> "windfall" profits from insurance companies as part of the package, > a move
> not included in the original bill.
>
> Leaders will also have to make up revenue lost to changes to the > "surtax"
> on the wealthiest Americans. Under the original formulation, the tax > would
> have provided $544 billion in revenue to pay for the overhaul.
>
> But after pushback from moderate Democrats, leaders reduced the tax's
> threshold so it only affects individuals making more than $500,000 > per year
> and families making more than $1 million. The change lost $84 > billion in
> revenue.
>
> Meanwhile after months of debate, Congress this week will begin to > tackle
> a revamp of the nation's financial regulatory system. The House > Financial
> Services Committee will begin Wednesday with a markup of legislation > to
> overhaul the over-the-counter derivatives market, where American
> International Group Inc. was forced into a government bailout after it
> suffered catastrophic losses by trading insurance-like credit > default swaps
> tied to faulty mortgages.
>
> Financial Services Chairman Barney Frank is revising his bill after it
> came under criticism from the SEC and the Commodity Futures Trading
> Commission. For example, the Frank measure would not require cleared > swaps
> to be traded on exchanges, while the Obama administration and a > competing
> draft from House Agriculture Chairman Collin Peterson would carry > such a
> mandate. CFTC Chairman Gary Gensler said such a requirement would give
> end-users better transparency and pricing in a trading system that is
> dominated by big banks.
>
> On another issue, the Obama administration would require standard
> derivative contracts to carry a presumption that they are to be traded
> through an exchange or a clearinghouse, which essentially guarantees > such
> trades. In contrast, Frank's draft would require that step only if
> regulators thought it necessary.
>
> Peterson takes a different tack in his draft by allowing the > clearinghouse
> to make the call regarding whether a trade should be considered > standard,
> as opposed to a specially customized one.
>
> Late Friday, Frank circulated revisions to his draft for clearing
> requirements. Under the new language, clearinghouses can submit > swaps to
> either the SEC or CFTC for approval. The regulators would then > determine if
> the swap would be appropriate to clear.
>
> Gensler also testified last week about a loophole in Frank's > proposal that
> would allow major swap participants to be exempted from the draft's
> regulations if they used swaps for "risk management purposes." Gensler
> argued that a great number of trades could be characterized as
> risk-management, or hedging, swaps. The revised Frank text proposes to
> narrow the definition. Those that would expose their counterparties to
> significant losses would not be eligible for the exemption.
>
> The Frank draft provides flexibility for end-users such as airlines,
> manufacturers and farmers that use derivatives to hedge against > risk, much
> more than Gensler has advocated. The revised Frank draft would give
> regulators more flexibility in setting margin requirements for the
> over-the-counter market, where customized trades take place between > two
> parties rather than through an exchange.
>
> The panel also is scheduled to mark up a bill that would create a > Consumer
> Financial Protection Agency. It would act as a sole federal watchdog
> against abusive and unfair mortgages, credit-card practices and other
> banking matters.
>
> Frank has been forced to tweak an original Obama administration > proposal
> after it came under heavy opposition from the business community,
> especially the U.S. Chamber of Commerce, which argued that the > agency would
> have too broad of a scope and it would result in higher costs for
> consumers.
>
> Frank excluded merchants, retailers and other nonfinancial firms > from its
> oversight and rules and took out a requirement that firms will have to
> offer "plain vanilla" products, such as 30-year fixed mortgages, in
> addition to their more exotic offerings.
>
> Frank faces a major battle over an attempt by Rep. Melissa Bean, D-> Ill.,
> to pre-empt state consumer laws for national banks. All Republicans > support
> the Bean measure and if she can persuade enough of her fellow New > Democrats
> on the panel, she could pull off a victory against consumer groups. In
> addition, some lawmakers are expected to attempt to weaken the CFPA's
> enforcement authority to give it back to other federal bank > regulators.
>
> On Friday, Frank also released a revised version of the CFPA bill, > but it
> did not appear the changes would satisfy business groups. The > revised draft
> would narrow the definition of who would be covered under oversight > by the
> agency; provide financial bank regulators backstop enforcement > authority,
> and add new disclosure requirements for remittance agencies.
>
> Senate Democrats this week will push to pass a bill to extend > unemployment
> insurance benefits in all 50 states, but Reid last week had not made > clear
> if he will carve out floor time for the bill if Republicans block a
> unanimous consent request.
>
> With millions of Americans facing pending loss of jobless benefits,
> Democrats on Thursday announced a deal to extend unemployment > benefits in
> 50 states for 14 weeks and in states where unemployment exceeds 8.5 > percent
> for an additional six weeks. Democrats from states with lower > jobless rates
> previously objected to a proposal with a shorter extension for their
> states. The House has passed a bill with a 13-week extension.
>
> Republicans want to amend the bill to use stimulus funds instead of an
> extension of the unemployment tax, as proposed in the Democrats' > bill, to
> cover the cost. Senate Minority Whip Kyl last week blocked a > Democratic
> attempt to move the bill by unanimous consent and Republican > senators will
> do so again without a chance to vote, GOP aides said. A Reid > spokeswoman
> said Democrats hope to reach an agreement to move the bill, but did > not say
> if Reid would allow votes.
>
> Meanwhile, Congress hopes to make more progress this week on
> appropriations bills as the Senate will likely clear the $64.9 > billion FY10
> Commerce-Justice-Science Appropriations bill, while the House might > take up
> the final version of the FY10 Homeland Security Appropriations > measure and
> possibly other compromise spending bills.
>
> Reid Thursday night moved to cut off debate on the C-J-S bill and a
> cloture vote is set for this evening.
>
> Reid has also filed cloture on the final version of the $33.5 > billion FY10
> Energy and Water Appropriations bill. A cloture vote is set for > Wednesday.
>
> Senate consideration of the bill is being blocked by Sen. Tom Coburn,
> R-Okla., because a Senate-adopted Coburn amendment that would require
> public disclosure of reports from agencies to Congress called for in
> appropriations bills, excluding sensitive reports on national > security and
> defense, was not included.
>
> The House cleared the compromise bill over a week ago after it was
> approved by conferees. The Coburn amendment was adopted by voice > vote in
> the Senate and was something he considered noncontroversial.
>
> Meanwhile, the House might take up the $42.8 billion, FY10 Homeland
> Security Appropriations bill. But differences between Democratic and
> Republican congressional leaders over transferring detainees from the
> military detention center at Guantanamo Bay, Cuba, to U.S. soil > could slow
> floor action.
>
> Democrats, bowing to the wishes of Obama, want to allow the > detainees to
> be brought to the United States for prosecution. But Republicans > oppose the
> idea.
>
> The matter was complicated for Democrats after more than 80 recently > voted
> in favor of a nonbinding House Republican proposal that detainees > should
> not be brought to the United States.
>
> House and Senate negotiators could also meet this week to finalize the
> FY10 Interior-Environment Appropriations bill, which could be quickly
> followed by House floor action.
>
> • The Senate meets today at 2 p.m. for morning business and afterward
> resumes consideration of the C-J-S Appropriations bill.
>
> • The House meets today at 12:30 p.m. for morning hour and 2 p.m. to
> consider suspension bills. Votes will be postponed until 6:30 p.m.
>
> DEFENSE
>
> The top Republicans and Democrats on the House and Senate Defense
> Appropriations subcommittees are expected to meet privately this > week to
> hash out differences in the two chambers' versions of the FY10 Defense
> spending bill.
>
> Staffers have been in informal negotiations for weeks on the bill, but
> this week's meeting will mark the first time key lawmakers will meet.
>
> Rep. John Murtha, D-Pa., the chairman of the House panel, said > Thursday
> that many of the differences have already been resolved and the > committees
> should reach a conference agreement quickly. But he suggested floor > action
> on the final Defense Appropriations bill will likely not occur until > next
> week.
>
> Meanwhile, the Senate hopes to vote this week on the final FY10 > defense
> authorization bill. The House approved the measure last week, > 281-146, with
> many Republicans voting against the typically bipartisan bill > because it
> includes a provision that extends the definition of federal hate > crimes to
> include those targeting sexual orientation and gender identity.
>
> ENVIRONMENT
>
> With most of the work going on behind the scenes, little is publicly
> progressing on climate change talks as health care occupies Congress'
> attention.
>
> Senate Energy and Natural Resources Chairman Jeff Bingaman, though, > will
> finally be able on Wednesday to hold a hearing featuring analyses of a
> House-passed climate bill by CBO, EPA, the Energy Department and
> Congressional Research Service that had been postponed due to his
> participation in healthcare talks.
>
> When Bingaman's committee postponed the initial Sept. 17 hearing, his
> staff went ahead and released a Sept. 14 report from CRS, detailing > seven
> cost studies done on the House bill and warning against relying too > much on
> any one that offers detailed projections of future costs of a cap-> and-trade
> program.
>
> FINANCE
>
> On Wednesday, the Senate Banking Financial Institutions Subcommittee > will
> hold a hearing examining the state of the banking industry, which > has seen
> almost 100 banks fail this year. The FDIC expects future failures > will cost
> its insurance fund $100 billion over the next four years. Last > month, the
> FDIC board proposed that banks prepay $45 billion in regular insurance
> premiums for 2010-2012.
>
> GOVERNMENT OPERATIONS
>
> Continuing to train its microscope on potential wrongdoing during the
> financial crisis, the House Oversight and Government Reform > Committee will
> hear testimony Wednesday from Troubled Asset Relief Program watchdog > Neil
> Barofsky.
>
> Barofsky, the special inspector general for TARP, will release the > results
> of his office's audit of more than $160 million in bonuses granted > by AIG
> in March. Barofsky announced the probe in March, after reports of the
> bonuses prompted a firestorm of public anger directed at the TARP-fund
> recipient.
>
> HOMELAND SECURITY
>
> The Senate Commerce Committee will hold a hearing Thursday to > consider the
> nomination of Erroll Southers to head the Transportation Security
> Administration. Southers, a former FBI agent who serves as chief of
> intelligence and counterterrorism at Los Angeles International > Airport, is
> expected to discuss his views on using technology, such as whole-body
> scanners, for aviation security.
>
> IMMIGRATION
>
> Rep. Luis Gutierrez, D-Ill., plans to unveil legislative principles > today
> that would overhaul the nation's immigration laws and give an > estimated 12
> million illegal immigrants in the country a path to legal residence. > He
> plans to introduce the bill this fall. Gutierrez will join a rally on
> Capitol Hill with other lawmakers and an estimated 2,500 people to > push for
> comprehensive immigration reform.
>
> "There is significant buzz in immigrant communities around this > event that
> signals a new beginning to the legislative battle for comprehensive
> immigration reform in the 111th Congress," stated an announcement > about the
> rally. "The president and leaders in the House and Senate have > indicated
> that immigration reform will be debated late this year or early next > and
> this event -- and the forthcoming bill from progressive House > members --
> signals the effort is serious."
>
> JUDICIARY
>
> Legislation that would force AM and FM radio stations to pay fees to
> performers and record labels whose songs they broadcast might be > considered
> by the Senate Judiciary Committee on Thursday.
>
> The bill, sponsored by Judiciary Chairman Patrick Leahy, was the > focus of
> an August hearing. A similar measure passed the House Judiciary > Committee
> in May after key members added carve-outs intended to help small
> broadcasters cope with the charge. Resolutions have been introduced > in the
> House and Senate opposing the fee.
>
> TELECOMMUNICATIONS
>
> The growing trend of drivers distracted by cellphones, texting and > even
> laptops -- or something as low-tech as munching on doughnuts -- will > be the
> focus of a Wednesday hearing before the Senate Commerce Committee.
>
> FCC Chairman Julius Genachowski and Transportation Secretary LaHood > are
> scheduled to testify. Earlier this month, Obama signed an executive > order
> directing federal employees not to text while driving government > vehicles
> or personal cars used for official business.
>
>
> http://www.nationaljournal.com/congressdai...091013_3685.php
>
> -----
> HOUSE RACES: MANY DEMS OWE DCCC DUES PAYMENTS
> By Erin McPike with Peter Bell contributing
>
>
> More than 100 Democratic House members have yet to contribute a > penny of
> their obligations for the 2010 election cycle to the Democratic
> Congressional Campaign Committee, a finding that suggests dozens of
> incumbents expect competitive races next year.
>
> But some lawmakers who don't face serious challenges -- including
> safe-seat liberals from the solid blue Northeast -- are also on the > list,
> leading some Democratic operatives to suggest bubbling unhappiness > within
> the party.
>
> According to a DCCC dues sheet obtained by CongressDaily, 117 > lawmakers
> have not contributed to the party committee's coffers. The > spreadsheet from
> Sept. 25 shows dozens of other Democrats have paid a small fraction of
> their "dues" to the party committee.
>
> Overall, Democrats have contributed $12.1 million of the $53.4 > million the
> DCCC hopes to bring in from members -- about 23 percent of the $53.4
> million goal. The party's leaders -- Speaker Pelosi, Majority Leader > Hoyer
> and Majority Whip Clyburn -- have paid the biggest percentage of their
> dues, so far, while Blue Dog Coalition members from districts in the
> Midwest that were carried by GOP Sen. John McCain in last year's
> presidential race are among those paying the least.
>
> Members facing tough races traditionally get a pass from the DCCC. For
> example, no one inside the party is grousing that the 42 members of > the
> Frontline program -- mostly freshmen -- have not donated cash to the
> committee.
>
> Most Blue Dogs have given little or nothing, too, but party insiders > are
> quick to point out that nearly every conservative Democrat in that
> coalition could have a competitive race, so it's understandable that > they
> are hoarding their cash.
>
> But privately, the frustration against better-positioned members,
> including members of the Progressive Caucus and the Congressional > Black
> Caucus, is palpable.
>
> "There are a lot of liberals with lots of money in the bank who > should be
> stepping up," complained one Democratic aide.
>
> House Administration Chairman Robert Brady is among the > noncontributors.
> While he has $595,000 in his campaign account, he has not paid > anything
> toward the $250,000 he owes. When asked about it, Brady first wondered
> whether Pelosi or the DCCC put a reporter up to pressuring him, then
> groused, "I'll pay them when I'm supposed to pay them."
>
> A handful of members in the New Jersey and Massachusetts delegations > are
> notoriously slow with their payments, but in a tough environment, that
> makes it all the more frustrating, one Democratic aide said. In > particular,
> several Democrats questioned why Rep. Richard Neal of Massachusetts, > who is
> close to Pelosi and is moving up the Ways and Means ladder, has > given just
> $65,000 of the $250,000 he owes despite having more than $2.5 > million in
> the bank.
>
> Massachusetts Rep. John Tierney has chipped in $25,000 but had $1.9
> million in the bank at the end of June; Rep. Stephen Lynch, also of
> Massachusetts, had $1.4 million on hand but hadn't contributed by > the time
> the spreadsheet was created.
>
> One Democratic lawmaker, who is exempt from paying because he is > running
> for higher office, said some Blue Dogs and liberals are holding onto > their
> wallets because of unhappiness over the way the healthcare debate is
> playing out.
>
> "It's like herding cats around here," the lawmaker said.
>
> Two major players who could fit into that category are Rep. Mike > Ross of
> Arkansas, a Blue Dog who has played a key role in the health debate, > and
> Ways and Means Health Subcommittee Chairman Fortney (Pete) Stark, D-> Calif.
>
> Ross had about $950,000 on hand at the end of September but had paid > none
> of his $200,000 obligation, according to the party spreadsheet. > Stark, with
> $424,000 in the bank, had not paid anything toward his $250,000 dues.
>
> Among those not in the Frontline program who have not contributed is > Rep.
> Ed Perlmutter of Colorado. His campaign had $816,000 on hand at the > end of
> June and owes $200,000 to the DCCC.
>
> Perlmutter said he'll have a lot more cash when he files his third-> quarter
> report and might start writing checks to the party by the end of the > year,
> even though he expects Republicans to field a strong challenger and > he has
> other goals he wants to meet first.
>
> "I'm not worried about it, and nobody else should be," he said, > pointing
> out that in the last cycle he chipped in more than he owed.
>
> Among the more prominent names of noncontributors is House Armed > Services
> Chairman Ike Skelton, who is being targeted by the National Republican
> Congressional Committee. While he has been a regular dues-payer in > past
> cycles, he hasn't written a check to the DCCC in a year.
>
> A number of high-profile members of the Congressional Black Caucus > in very
> safe districts also haven't paid any dues, according to the > spreadsheet,
> including Reps. Maxine Waters of California, Gregory Meeks and > Edolphus
> Towns of New York, Bobby Rush of Illinois and Melvin Watt of North
> Carolina. However, those members each had less than $100,000 in the > bank as
> of the end of June, and Democratic sources explained that many of > their
> districts don't pull in much money.
>
> Another CBC member, Rep. Sheila Jackson Lee of Texas, had $419,000 > in the
> bank but hadn't paid on the $150,000 she owes. She said she prefers > to send
> her money in a lump sum. "I'm sympathetic to the season, but this > way I
> know where I am and what's going on," she said.
>
> While some top Democrats had criticized Black Caucus members over > party
> contributions in the past, party sources said Clyburn, the highest > ranking
> black lawmaker, has stepped up efforts to get members to pay their > share.
> One caucus member, Rep. William Lacy Clay, said on Thursday that he > had
> written a check for $30,000 that morning.
>
> Overall, CBC members had paid about 20 percent of their dues - on > par with
> the 23 percent paid by Democratic members overall. But the $1.7 > million
> from members of the Black Caucus includes $600,000 that Clyburn has > already
> paid on his $800,000 account.
>
>
> http://www.nationaljournal.com/congressdai...091013_9858.php
>
> -----
> HEALTH: HEALTHCARE REFORM PROPOSALS BY THE NUMBERS
>
> A public option, an employer mandate and tax provisions are among the
> biggest differences of the healthcare reform proposals headed to the > House
> and Senate floors.
>
>
> http://www.nationaljournal.com/congressdai...091013_9925.php
>
> -----
> OUTLOOK: HOT TICKET
> By Jason Mann
>
>
> THE LAST PARTY?
>
> Like all publishing houses, magazine juggernaut Condé Nast has > struggled
> to weather the economic crisis, having folded four more titles just > last
> week, including the venerable Gourmet. Tonight, the company's magazine
> dedicated to men's style, GQ, is hosting a party to promote its > upcoming
> list of the 50 most powerful people in Washington. The upscale event > is
> being held at 701 Restaurant at 6:30 p.m. and is invitation only, > making it
> very difficult to crash. But given Condé Nast's financial status, it's
> safe to say it will be a while until this company, once known for
> extravagant expense accounts and soirees, will have another over-the-> top
> party.
>
> GIVING THANKS
>
> This week ThanksUSA is throwing a "Treasure Our Troops Gala." > Despite the
> name of the event, it's the family members of troops who will he > honored
> Wednesday as the nonprofit awards scholarships to spouses and > children of
> individuals serving in the armed services. Gala co-chairman and > National
> Association of Manufacturers President John Engler will be joined by > Army
> Chief of Staff George Casey and NBC's Natalie Morales as the evening's
> speakers. Tickets cost $750 and can be bought by calling Lindsay > Robbins at
> (202) 741-1274. The reception starts at 6:30 at the Newseum. Business
> attire is required.
>
> PEACE TALKS
>
> Another nonprofit is also hosting a gala this week. On Thursday, the
> American Task Force of Palestine, which advocates that the United > States
> work to negotiate a peaceful agreement between Israel and Palestine, > is
> honoring former Ambassador to Egypt Robert Pelletreau for his > decades of
> work toward U.S. and Palestine diplomacy. The "Palestine Alongside > Israel:
> Liberty, Security, Prosperity" gala has the support of Sen. Carl > Levin,
> D-Mich., House Foreign Affairs Chairman Howard Berman and Reps. > Charles
> Boustany, R-La., and Robert Wexler, D-Fla.; who are all honorary host
> committee members. The black-tie event, which includes a silent > auction, is
> being held at the Ritz Carlton at 1150 22nd Street, NW. Tickets cost > $250
> and can be purchased at www.americantaskforce.org.
>
> WILD THING!
>
> Wild things are coming to Washington this week, literally. On > Thursday,
> the National Wildlife Foundation teams up with Warner Bros. Pictures > to
> host a screening of the new film "Where The Wild Things Are" -- > based on
> the beloved children's book -- and launch the "Be Out There" campaign,
> which is aimed at connecting children and the environment. The event > is
> getting the full Hollywood treatment, with the red carpet rolling > out at 5
> p.m. before the film starts at 6:15 p.m. at the AMC Loews Uptown > Theatre at
> 3426 Connecticut Avenue, NW. The movie will be preceded by a > discussion of
> the campaign and Congress' contribution to bringing children > outdoors, such
> as that morning's House Natural Resources Insular Affairs, Oceans and
> Wildlife Subcommittee hearing on a bill by Rep. Lois Capps, D-> Calif., to
> bolster NOAA's environmental education programs. Tickets cost $150 > and can
> be bought at www.nwf.org.
>
>
> http://www.nationaljournal.com/congressdai...091013_3767.php
>
> -----
> PEOPLE: PEOPLE
> By Mike Magner
>
>
> Eight years at the Pentagon had a profound effect on former Rep. Pete
> Geren, D-Texas, who stepped aside as Army secretary last month when > former
> Rep. John McHugh, R-N.Y., took over the post.
>
> In the midst of catching up on some long-deferred projects at his > northern
> Virginia home last week, Geren called his Defense Department tenure > "the
> most rewarding public service experience in my life."
>
> Geren, 57, said he loved the time he spent in Congress, where he
> represented the 12th District in and around Fort Worth from 1989-97. > But
> working with U.S. troops and their families during two wars "was a
> different kind of rewarding," he said. "Soldiers are the best people > in the
> world. It is extraordinary, the burden they carry for us."
>
> As Army Chief of Staff George Casey noted in a farewell tribute to > Geren,
> the only time he wore a uniform was when he played football for > Georgia
> Tech in the early 1970s. Geren went on to get his bachelor's and his > law
> degree from the University of Texas, then worked in private practice > before
> joining the staff of Sen. Lloyd Bentsen, D-Texas, in 1984.
>
> Geren said his lack of military background probably gave him a steeper
> learning curve when he became special assistant to then-Defense > Secretary
> Donald Rumsfeld in 2001. But over the years, as he advanced to > acting Air
> Force secretary in 2005, to undersecretary of the Army in 2006 and > to Army
> secretary in 2007, Geren said he felt that "not having been in the > service
> gave me a stronger sense of indebtedness to the soldiers and their
> families."
>
> Geren faced difficult duty at the outset of his Army leadership > role, when
> news broke about shoddy outpatient care for veterans at the Walter > Reed
> Army Medical Center. The scandal forced Army Secretary Francis > Harvey to
> resign in March 2007, resulting in Geren's promotion to the post, > and left
> Geren to clean up the mess.
>
> "The Army has radically overhauled that system," though there is still
> more to be done, he said. That responsibility now rests with McHugh, > who
> Geren called an ideal choice to be his successor.
>
> Anadarko Petroleum Corp., based in Houston, last week named Geren to > its
> board of directors, returning him to a position he held from > 2000-05. Aside
> from that position, Geren said he has no other immediate plans, > except to
> remain in Virginia at least until his daughters finish school there.
>
>
> http://www.nationaljournal.com/congressdai...091013_6362.php
>
> -----
> FORWARD OBSERVER: THROUGH IRAN'S EYES
> By George C. Wilson
>
>
> Just before Iran gets back to dominating the front page again, let's > look
> at the deeds -- not words -- of the United States and Israel through > Iran's
> end of the telescope. The ugly truths Iranian leaders and their > people see
> go a long way toward explaining why they are so determined to get > the Bomb.
>
> First of all, the United States is the only country on Earth that > actually
> killed thousands of civilians by incinerating them with nuclear > bombs. Yes,
> I know. It was during World War II when the Japanese were considered > all
> bad guys. But the truth is that the United States government has > lots of
> blood on its hands when it warns the Iranians not to build the bomb or
> else.
>
> A study financed by the National Science Foundation estimated that the
> Little Boy uranium-235 bomb dropped from our Enola Gay B-29 bomber on
> Hiroshima on Aug. 6, 1945, killed 80,000 to 140,000 Japanese > instantly and
> injured 100,000 more.
>
> The Fat Man plutonium implosion bomb dropped from our Bock's Car B-29
> bomber on Nagasaki on Aug. 9, 1945, killed 74,000 and injured 75,000 > more,
> according to the same study. Fatal radiation sickness was a side > effect of
> our two nuclear bombings.
>
> After the war, American presidents -- including Harry Truman, who > approved
> dropping Fat Man and Little Boy -- looked with alarm at the furious > efforts
> of the Soviet Union and China to get the Bomb. The Soviet Union > tested its
> first one in August 1949, and China joined the nuclear club by > testing its
> first bomb in October 1964.
>
> There were plans in the Pentagon's bottom drawer to slow Soviet and
> Chinese nuclear bomb programs by bombing their facilities. But the > stickier
> questions back then are the same ones that hang over plans for bombing
> Iranian plants today: How do you bomb nuclear material without > shooting
> poisonous radioactive material into the atmosphere where upper winds > could
> carry it far and wide and kill innocents? And if bombers and/or > missiles
> just hit with conventional explosives the Iranian machinery for > making the
> Bomb, avoiding the nuclear material itself, would the temporary > setback
> inflicted be worth the storm of world protest bound to follow?
>
> Up to now, presidents have clamped the claws of hawks in their midst > who
> wanted to bomb Soviet, Chinese and now Iranian nuclear bomb facilities
> before they became lethal. U.S. and Soviet leaders eventually > settled for
> keeping nuclear pistols at each others' temples all through the Cold > War.
>
> This strategy of mutually assured destruction was based on the > premise of
> "I won't if you won't, and if you do, I'll kill you dead with all > the nukes
> you'll miss in your surprise strike."
>
> So far, MAD has kept these two biggest nuclear powers from pulling the
> trigger.
>
> Even if Iran makes good on its promise to let International Atomic > Energy
> Agency inspectors study its newly disclosed plant at Qom on Oct. 25 to
> convince world leaders it is pursuing nuclear energy, not the Bomb, > hawks
> in this country, Israel and elsewhere will not believe it. They will > argue
> that Israel can have the Bomb but Iran cannot -- a double standard if
> you're looking through Tehran's end of the telescope.
>
> The International Institute for Strategic Studies estimates in its > latest
> Military Balance report that Israel possesses "up to 200 nuclear > warheads"
> that could be put aboard its Jericho 1 and 2 missiles to hit Iran. A > fair
> but uncomfortable question for Obama, Congress and others to ask > themselves
> is this one: If mutually assured destruction kept the United States > and
> Soviet Union -- the two scorpions in the bottle during the coldest > days of
> the Cold War -- from nuking each other, would Iran's possession of > the Bomb
> have the same sobering effect on Israeli and Iranian leaders?
>
> Iran seems hellbent on getting the Bomb, sanctions or not, sooner or
> later, so it's time to think about the unthinkable.
>
> Israel has demonstrated to the world that it is willing to resort to
> invading another nation's air space and bombing its nuclear > facilities to
> delay its pursuit of the Bomb. Exhibit A is Israel's bombing on June > 7,
> 1981, of Iraq's nuclear reactor bought from France.
>
> The bombers were American-made F-16s escorted by American-made F-15
> fighters. Still shrouded in mystery is the Israeli bombing of a > suspected
> nuclear development facility in Syria on Sept. 6, 2007.
>
> Way back in the presidency of John F. Kennedy, his secretary of State,
> Dean Rusk, came to lunch at The Washington Post and told us > reporters and
> editors that Israel had the Bomb and that he had warned its > ambassador that
> the United States would take a dim view of Israel ever using it. "We > won't
> be the first," Rusk said the ambassador told him. When the ambassador
> reached Rusk's office door to exit, he added, "And we won't be the > second."
>
> There's one more thing for Obama to worry about.
>
>
> http://www.nationaljournal.com/congressdai...091013_3513.php
>
> -----
> BEYOND THE BELTWAY: ALTERNATIVE TO FORECLOSURE BILL IN OHIO EXPLORED
>
> An Ohio state lawmaker last week introduced an alternative to > foreclosure
> moratorium legislation that has stalled in the state Senate, the > Cleveland
> Plain Dealer reported.
>
> A measure by Republican state Sen. Matthew Dolan would compel > borrowers
> and lenders to use mediation before foreclosure can move forward.
>
> The stalled legislation would stop all foreclosure filings in Ohio > for six
> months.
>
> The measure is being introduced in the state Senate by GOP state Sen.
> Shannon Jones, and Dolan is hoping that it can break the logjam.
>
> Court-ordered mediation programs are voluntary and need to be > requested by
> the borrower. "A lot of times borrowers are scared to engage with > the court
> system," Dolan said. "But where they do, it's working."
>
> While the moratorium bill passed the Democratic-controlled House, > there
> appears to be little interest to act on it in the Republican-> controlled
> Senate.
>
> Republican state Sen. John Carey, who heads the Finance Committee, > opposes
> the moratorium measure.
>
> "I think it has the possibility of making things worse," Carey said. > "It
> may put people being foreclosed on in a deeper hole and seems to > have a
> negative impact on the foreclosure process in terms of working > things out."
>
> Carey was not familiar with Dolan's proposal but said that he is > open to
> exploring alternatives to the stalled measure.
>
>
> http://www.nationaljournal.com/congressdai...091013_8286.php
>
> -----
> BEYOND THE BELTWAY: WIS. LAWMAKERS SEEK TO EXPAND HEALTH PARITY
>
> Two Wisconsin state lawmakers last week introduced a measure aimed at
> improving insurance coverage for mental health and substance abuse.
>
> The measure, introduced by Democratic state Rep. Sandy Pasch and
> Democratic state Sen. Dave Hansen, would expand the federal mental > health
> parity law and require all group health plans to provide mental > health and
> substance abuse disorder coverage at the same level as medical and > surgical
> coverage.
>
> The federal law requires mental health and substance abuse parity for
> health plans offered by employers with 51 workers or more. Employers > with
> 50 or fewer employees and individual health plans are exempt. The > lawmakers
> say 700,000 state residents are uncovered by the parity law.
>
> "The costs of not treating mental illnesses are shifted to county > budgets,
> to the workplace, to the criminal justice system, and to families > across
> the state," said Pasch, a psychiatric nurse. "Mental illnesses are > the most
> stigmatized, underfunded and undertreated illnesses, and I believe > this
> legislation will effectively address this problem in the state."
>
> Opponents of the expanded mandate have argued that the insurance
> requirements would be costly to small businesses. However, the > lawmakers
> say six states have extended the parity laws for small businesses > and there
> has been no evidence of significant cost increases or significant > instances
> of small businesses dropping health coverage.
>
>
> http://www.nationaljournal.com/congressdai...091013_4635.php
>
> -----
> BEYOND THE BELTWAY: ILLINOIS COULD MAKE ANOTHER RUN AT CIGARETTE TAX
> INCREASE
>
> The possibility of an increase in Illinois' cigarette taxes might > come up
> this week when the annual fall session of the General Assembly > begins, the
> Bloomington Pantagraph reported.
>
> Raising the tax on cigarettes by $1 a pack is being looked at to pay > for
> the state's biggest scholarship program.
>
> The tax was considered this year as a means to generate more money for
> health care for low-income residents.
>
> Democratic Gov. Pat Quinn wants to use money from the increase to > pay for
> the state's Monetary Award Program.
>
> The state's financial problems have left funding for spring semester
> grants in limbo.
>
> While the Senate passed a tax increase, it fell short in the state > House.
>
> The Senate sponsor of the tax proposal said spending more on health > care
> will draw in federal money. Under that scenario, state money could be
> shifted to pay for scholarship grants.
>
> "I don't think we're too far apart in our goals," said Democratic > state
> Sen. Jeff Schoenberg.
>
> However, the tax increase faces opposition. Republicans are > advocating a
> tax amnesty plan to generate money for the scholarship program.
>
> Republican state Rep. Dan Brady said he doubts the cigarette tax will
> bring in the amount of money expected. "More people will stop > smoking,"
> Brady said.
>
>
> http://www.nationaljournal.com/congressdai...091013_1385.php
>
> -----
> BEYOND THE BELTWAY: REINSTATEMENT OF FOOD TAX CONSIDERED BY UTAH BOARD
>
> A state sales tax on food in Utah that's been incrementally lowered > over
> the past two years could get a full reinstatement as the state deals > with
> large revenue losses, the Deseret News reported.
>
> Members of the state Tax Review Commission heard testimony last week > from
> advocates for the poor, grocery industry representatives, tax > watchdogs and
> a state lawmaker who unsuccessfully sought to raise the food tax last
> session.
>
> The concept could find more support this year as the state faces a > budget
> shortfall estimated to be $700 million.
>
> The tax reduction is favored by advocates for low-income families, > who say
> any food tax is regressive.
>
> "The recession has hit a lot of people in the low-income class," > said Art
> Sutherland from the Coalition of Religious Communities, an advocate > group
> for low-income Utahns.
>
> GOP state Rep. Kay McIff, a proponent of the increase, said putting > the
> food tax rate back at 4.75 percent would put $140 million of new > money into
> the general fund and about $16 million into earmarked accounts.
>
>
> http://www.nationaljournal.com/congressdai...091013_6726.php
>
> -----
> DRAWING BOARD: DRAWING BOARD
> By Mark Armstrong
>
>
>
> http://www.nationaljournal.com/congressdai...091013_2896.php
>

[Snuffysmith]

> CongressDaily PM for Tuesday, Oct. 13, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: WITH SNOWE'S VOTE, PANEL PASSES OVERHAUL
> By Anna Edney, with Dan Friedman contributing
>
>
> The Senate Finance Committee passed a bipartisan healthcare overhaul
> proposal today, 14-9, with crucial help from Sen. Olympia Snowe, R-> Maine.
> The vote sets up a floor debate beginning as early as next week once
> Democratic leadership merges the Finance measure with a more liberal
> version approved by the Senate Health, Education, Labor and Pensions
> Committee.
>
> As the only Republican panel member that will support the measure, > Snowe
> said she made the choice with reservations about what will transpire > on the
> Senate floor when the $829 billion Finance bill is merged with the > HELP
> measure.
>
> "My vote today is my vote today. It doesn't forecast my vote > tomorrow,"
> she said.
>
> Snowe said she shares concerns with her Republican colleagues over the
> possibility the final legislation could create "vast government
> bureaucracies and vast government intrusions." But she said she > wants for
> now to continue the progress the Finance Committee has made.
>
> Snowe's fragile support could affect the merging of the Finance and > HELP
> bills if Democratic leaders want to keep her on their side. Most
> significantly, Snowe does not support a public option like the one > in the
> HELP bill unless it is used only as a fallback option in regions of > the
> country where coverage is deemed unaffordable.
>
> "Americans want us to craft a package that will get the 60 votes > that it
> needs to pass," Senate Finance Chairman Max Baucus said.
>
> Snowe was the only GOP senator Baucus had a chance of wooing. She > worked
> for several months with Baucus and a small group of other senators > to craft
> a bipartisan proposal but remained undecided as the Finance vote > loomed.
>
> Snowe also joined moderate Democrats in demanding that Senate > leadership
> post final CBO scores on the Internet before voting on a motion to > proceed
> on the merged bill.
>
> While Snowe's comments were good news for Baucus, another centrist
> lawmaker signaled he would come out against the measure.
>
> "In the end, the Baucus bill is actually going to raise the price of
> insurance for most of the people in the country, because most of the > people
> in our country have health insurance, either private or Medicare or
> Medicaid or veteran's benefits," Sen. Joseph Lieberman, D-Conn., > told CNN
> today. "I'm concerned that there's a danger that we're trying to do > too
> much here."
>
> White House Press Secretary Robert Gibbs called Snowe's decision
> "important" and said today's panel vote will be an "exceedingly > important
> step" toward reform.
>
> Senate Minority Whip Kyl accused Baucus today of making substantial
> changes in the bill that will affect its score without consulting > committee
> members. "It is not something the staff can change by simply handing > [CBO
> Director] Elmendorf a document," Kyl said.
>
> Baucus gave CBO technical corrections last week that the committee > did not
> vote on. The changes would index some of the penalties and waivers to
> inflation to tie them to the future cost of living. Baucus said the > changes
> were made in "good faith" and were simply clarifications that helped > CBO
> realize the committee's true intent. But he allowed a vote today on > the
> clarifications, which passed 13-10 along party lines.
>
> Sen. Jim Bunning, R-Ky., noting that most of the Finance bill does > not go
> into effect until 2014, argued its true cost is $1.8 trillion over 10
> years. "The actual cost is hidden by delaying effective dates," > Bunning
> said.
>
>
> http://www.nationaljournal.com/congressdai...091013_9712.php
>
> -----
> HEALTH: CLYBURN AGAIN NIXES 'CADILLAC' PLAN TAX
> By Kasie Hunt
>
>
> The Senate Finance Committee's version of healthcare reform would > not pass
> muster in the House because it taxes high-value insurance plans, House
> Majority Whip Clyburn said today.
>
> "No, no, no," Clyburn said when asked on MSNBC's "Morning Joe" > whether the
> bill crafted by Senate Finance Chairman Max Baucus could get 218 House
> votes. "I think that taxing benefits is a tough thing to do. On the > House
> side ... we're coming up with a much better pay-for than taxing > benefits."
>
> The House bill relies primarily on a tax on millionaires to pay for > the
> measure. Under the plan, individuals making more than $500,000 a > year and
> families making more than $1 million would face an approximately 5 > percent
> income tax. The Joint Committee on Taxation estimated the tax will > raise
> approximately $460 billion.
>
> The Baucus plan would levy a 40 percent tax on insurance plans worth > more
> than $8,000 for individuals and $21,000 for families. Proponents argue
> taxing high-cost benefits is effective because the money it brings > in will
> increase with healthcare costs, which have been rising much faster > than
> wages in recent years.
>
> But liberal House members argue the tax on such "Cadillac" plans will
> amount to a tax on middle-class families. Because benefits are tax > free
> while wages are subject to income taxes, incentivizing employers to > buy
> cheaper benefit plans and increase wages instead could lead to a > higher
> income tax burden for workers, according to a JCT analysis. Labor > unions
> also oppose the tax because they often sacrifice wage increases in > favor of
> better benefits during contract negotiations.
>
> House negotiators are also finalizing other revenue measures to make > sure
> their version of the bill remains deficit neutral. Members are > considering
> a windfall profits tax on insurance plans, an idea Clyburn strongly > backs.
>
> "I have been proposing that we look at a windfall profits tax. We know
> that the insurance companies are going to get a tremendous windfall > out of
> this. If you get 35 million or 40 million new customers, that's a
> tremendous windfall," Clyburn said today.
>
>
> http://www.nationaljournal.com/congressdai...091013_6607.php
>
> -----
> POLITICS: SENATE DEMS USING UC FOR TALKING POINTS
> By Dan Friedman
>
>
> Senate Democrats in recent weeks have repeatedly used unanimous > consent
> requests to rack up talking points against Senate Republicans, a > tactic
> that GOP aides said
>
> the majority is using deceptively to blame Republicans rather than
> internal disputes for stalled legislation.
>
> Senate leaders have long used the tactic of asking for unanimous > consent
> to pass legislation they know will draw an objection from the > minority,
> then blasting the objectors for obstruction. But Republicans are
> nevertheless annoyed at Democrats' recent reliance on the maneuver, > noting
> the majority has attacked Republicans for not immediately approving
> measures that had been stalled for weeks by feuds among Democrats.
>
> "It's totally a cheap shot," said a senior Republican aide. "They keep
> trying to blame us for obstructing when then can't get their own > house in
> order."
>
> The House in late September passed a bill extending unemployment > benefits
> for an additional 13 weeks in 27 states with unemployment rates of > more
> than 8.5 percent over three months, but the measure stalled in the > Senate.
>
> Led by Sen. Jeanne Shaheen, D-N.H., Democrats from 23 states sought
> similar extensions for their states. They blocked an effort by Senate
> Majority Leader Reid to quickly move a bill that gave their states > just a
> four-week extension.
>
> Last Thursday, Democrats announced a deal that gave all 50 states a
> 14-week extension, with added time for higher unemployment states. > Senate
> Finance Chairman Max Baucus within hours of that announcement sought
> unanimous consent to pass the bill, even though Republicans had > already
> indicated they would object so they could try to amend the bill to > replace
> an extension of the unemployment tax, the pay-for in the Democrats' > plan,
> with use of stimulus money.
>
> After Senate Minority Whip Kyl objected, saying Republicans had not > had
> time to review the plan and hoped to see a CBO score, Reid, Baucus and
> other Democrats quickly bashed Republicans.
>
> "This delay is a threat to millions of workers struggling to feed > their
> families as they retrain or search for a new job," Baucus said.
>
> A day earlier, Baucus sought unanimous Senate consent to pass a bill > that
> would keep Medicare Part B premiums at 2009 levels, preventing > seniors from
> seeing a net reduction in Social Security benefits. When Sen. Tom > Coburn,
> R-Okla., objected, Baucus attacked the GOP for not protecting > seniors from
> premium hikes, picking up a talking point that cuts against > Republicans
> arguing Democratic healthcare overhaul plans would reduce Medicare
> benefits.
>
> A week earlier, Democrats twice sought unanimous consent to pass a > bill
> extending the surface transportation law for three months and > restoring
> $8.7 billion in spending authority states are set to lose.
>
> The bill looked unlikely to become law due to objections from House
> Transportation and Infrastructure Chairman James Oberstar, whose > chamber
> had to approve the measure, but Senate Democrats faulted the GOP for a
> failure they said could cost 17,000 jobs.
>
> A Reid spokeswoman today continued to fault the GOP. "These pieces of
> legislation are vitally important to helping the many people who are > still
> struggling in these tough economic times," she said. "It is > unfortunate
> that Republicans continue to say no rather than work with us."
>
> The spokeswoman said Republicans have "refused to provide" their > proposed
> amendments to the unemployment bill. "It seems clear that > Republicans want
> to hold the UI bill hostage as with so many other issues important > to the
> American people," she said.
>
>
> http://www.nationaljournal.com/congressdai...091013_4738.php
>
> -----
> AGRICULTURE: SPLIT IN ETHANOL LOBBY FOILS COORDINATION
> By Jerry Hagstrom
>
>
> A nasty exchange of messages among corn and ethanol groups has > revealed
> that ethanol plant builder Jeff Broin and a handful of other ethanol
> leaders established Growth Energy, the pro-ethanol lobbying group that
> Broin chairs with former Gen. Wesley Clark, in 2008 because they did > not
> believe the National Corn Growers Association and the Renewable Fuels
> Association were lobbying hard enough for ethanol.
>
> Broin, Clark and Tom Buis, their Washington lobbyist, are also > making the
> case that they have defended the industry and are pursuing its goals > more
> vigorously than the other groups have in the last two years.
>
> The National Corn Growers Association, which lobbies on a wide range > of
> issues, Renewable Fuels, founded in 1981 to make the case for > ethanol, and
> Growth Energy have been at odds since Growth Energy was founded.
>
> Their battles became public Oct. 2 when NCGA President Darrin Ihnen, a
> South Dakota farmer, sent RFA and Growth Energy a memorandum that he > was
> tired of the "friction and divergence in the ethanol industry" and > that the
> two groups needed to "reconcile immediately."
>
> Ihnen suggested the two groups agree to binding arbitration, with > the NCGA
> as the facilitator. Last Friday, RFA and Growth Energy each sent the > NCGA a
> letter saying that all corn and ethanol groups should work together, > but
> rejecting the binding arbitration proposal as practically and legally
> impossible. RFA Chairman Chris Standlee emphasized that his group > has a
> long history of working with NCGA and wants to continue.
>
> Growth Energy's Clark and Broin said in their reply that its founders
> spent "countless hours and significant dollars" trying to unify the > ethanol
> industry before deciding that they needed their own group.
>
> Clark and Broin wrote that it was Growth Energy that formally asked > EPA to
> increase the percentage of ethanol allowed in gasoline from 10 > percent to
> 15 percent and contended it has responded more strongly in the
> "food-versus-fuel" debate in which ethanol has been attacked for > raising
> food prices. They also wrote that Growth Energy has lobbied the > hardest
> against EPA's proposal to consider land use changes in other > countries in
> analyzing the environmental impact of growing crops for renewable > fuels in
> the United States and defended the tariff on imported ethanol and > proposed
> country-of-origin labeling for gasoline.
>
> Clark and Broin also said Growth Energy and RFA "can share common > goals,
> but have a difference of opinion on how to reach those goals."
>
> Sources close to all three groups said the heart of the dispute may > lie in
> a disagreement over how hard to push for ethanol compared with corn's
> traditional markets in domestic livestock feed and exports.
>
> Sources said some ethanol industry participants believe RFA does not > push
> ethanol issues hard enough because one of its major backers is Archer
> Daniels Midland, which also processes corn for feed and may not want > corn
> prices to rise too high.
>
> An RFA spokesman disputed that today, saying, "We represent everyone > from
> the world's largest producer (ADM) down to the smallest farmer-owned
> cooperatives." Growth Energy, meanwhile, says the rising yields of > corn
> will make ethanol a more important market for corn in the future.
>
> "When we have excess grain, like we do, and idled corn ethanol plants,
> like we do, and we have an increasingly expensive reliance on > foreign oil,
> there's an easy solution to all this -- ethanol," Buis said today in > an
> e-mail. A spokeswoman said the NCGA has not yet finished its > response to
> the letters.
>
>
> http://www.nationaljournal.com/congressdai...091013_2112.php
>
> -----
> JUDICIARY: KOHL, HATCH CONCERNED BY AIRLINE ALLIANCE
> By Andrew Noyes
>
>
> Senate Judiciary Antitrust Subcommittee Chairman Herb Kohl, D-Wis., > and
> ranking member Orrin Hatch, R-Utah, today said a plan by American > Airlines
> and British Airways to broaden their partnership raises "significant
> competition issues."
>
> They urged Transportation Secretary LaHood to "pay substantial heed" > to
> recommendations from the Justice Department and refrain from acting > on the
> proposal until that guidance is delivered.
>
> The pair has repeatedly pressed the Transportation Department to grant
> international airline antitrust immunity applications sparingly and > only
> upon the conclusion that the deals will not harm competition. They > wrote to
> LaHood earlier this summer with concerns about Continental Airlines' > plan
> to join United and Lufthansa in the Star Alliance. The agency > subsequently
> set forth conditions for the enterprise.
>
> In their letter to LaHood and Christine Varney, the Justice > Department's
> top antitrust official, Kohl and Hatch vowed to study whether the
> Transportation Department is the right agency to have final say over
> granting immunity and whether legislation is needed to boost the > Justice
> Department's authority in this area. The European Commission has also
> voiced concern about the issue.
>
> Despite talk of holding a hearing, the chances of scheduling one > before
> the Transportation Department acts on the American Airlines > application are
> slim, according to a panel aide. That ruling could come by the end > of this
> month, the staffer added. The House Judiciary Courts and Competition
> Subcommittee scheduled a hearing last month but it was postponed. A > new
> date has not been announced.
>
> LaHood has also felt pressure from a group representing 11,500 > American
> Airlines pilots, which last week urged him to reject the immunity
> application, citing European outcry and the airline's alleged > refusal to
> address job security and other issues.
>
> "The same concerns we have expressed regarding American Airlines' > plans
> apply to all immunized airline alliances," Allied Pilots Association
> President Lloyd Hill said. He argued the partnerships have cost U.S. > jobs
> and hurt consumer interests.
>
> American Airlines and British Airways did not comment by presstime. > The
> Air Transport Association of America has argued that partnerships > between
> carriers offer significant benefits to passengers, and the traveling > and
> shipping public will lose service options and see higher fares without
> them.
>
>
> http://www.nationaljournal.com/congressdai...091013_5239.php
>
> -----
> INTELLIGENCE: HILL SENDS MIXED SIGNALS TO IMAGERY FIRMS
> By Chris Strohm
>
>
> The Obama administration is moving forward with plans to buy more
> satellite imagery from private companies while Congress grapples with
> developing a long-term strategy to ensure that U.S. military and
> intelligence agencies have access to the images they need.
>
> The National Geospatial-Intelligence Agency issued a classified > request
> two weeks ago asking firms that operate remote-sensing or imaging
> satellites for information on how they could meet U.S. government > needs.
>
> The agency plans to award major contracts to commercial imagery > providers
> next spring under its EnhancedView program, which is designed to > augment
> the capabilities of powerful U.S. spy satellites.
>
> But commercial providers are closely following proposals in Congress > that
> might have an impact on the millions of dollars in revenue they get > each
> month from selling images to the government.
>
> In a move that could spark a clash with the industry, Congress is > backing
> a plan under which the government would build new satellites that > might
> ultimately compete with those of commercial providers, such as > GeoEye of
> Dulles, Va., and DigitalGlobe of Longmont, Colo.
>
> Last week's conference agreement for the FY10 defense authorization > bill
> includes a little-noticed provision directing the Defense Department > to
> develop two commercial-grade electro-optical satellites, one with a
> 1.1-meter aperture and a second with a more powerful 1.5-meter > aperture.
>
> The House approved the agreement Thursday; the Senate is expected to > do so
> this week.
>
> When asked about the directive for the government to build the new
> commercial-grade satellites, GeoEye spokesman Mark Brender gave a > carefully
> worded response.
>
> "The authorizers have spoken. Whatever comes of this I am hopeful > we'll
> have a seat at the table when these decisions are being made," he > said.
>
> Key lawmakers support the idea of turning to the private sector for > large
> amounts of satellite imagery. Both the Bush and Clinton > administrations
> also made using more private satellite images a priority.
>
> But Congress has yet to agree on a long-term strategy for replacing > the
> nation's aging spy satellites. The Obama administration earlier this > year
> proposed buying large, expensive satellites for intelligence and > military
> operations, a plan backed by the House Intelligence Committee.
>
> The Senate Intelligence Committee balked, however, putting forward an
> alternative plan that would allow the government to buy more -- albeit
> cheaper and less sophisticated -- satellites.
>
> Even though a long-term plan has yet to materialize, the National
> Geospatial-Intelligence Agency believes it is prudent to award new
> contracts for commercial imagery in the spring.
>
> "We are still working with the Hill on the FY10 budget, while > concurrently
> moving forward with our plans," the agency said in response to > questions.
> "The U.S. government continues to support the U.S. commercial imagery
> industry; we will continue to rely on commercial data providers in > the near
> future."
>
> Companies like GeoEye and DigitalGlobe boast that they are able to > launch
> satellites on time and on budget compared to the government, whose
> expensive programs have experienced delays and, in some cases, > outright
> failures.
>
> Notably, Congress is also taking a major step toward the relaxation of
> restrictions on the commercial sale of detailed imagery by private
> companies.
>
> The defense authorization conference agreement directs the > administration
> to review whether changes should be made. Companies are now barred > from the
> commercial sale of imagery that reveals details smaller than half a > meter.
>
> "We do welcome the review of the resolution limits since this will > allow
> U.S. industry to maintain its leadership position in the face of > increasing
> foreign competition," Brender said.
>
>
> http://www.nationaljournal.com/congressdai...091013_9110.php
>
> -----
> TRADE: KIRK CALLS FOR EXPANDING SERVICES TRADE
> By Peter Cohn
>
>
> U.S. Trade Representative Kirk today said the Obama administration > remains
> "firmly committed" to bringing the Doha round of global trade talks > to a
> successful conclusion, but other countries are going to have to do > more to
> open their markets to U.S. services.
>
> Calling a Doha breakthrough "the right thing to do for the world's
> economy," Kirk said negotiators need to stop their "obsessive" focus > on
> agricultural and manufacturing sectors and devote more attention to
> services. "The offers on the table right now, frankly, in the services
> sector, just aren't there," Kirk said at the outset of this week's > Global
> Services Summit in Washington.
>
> "We are firmly of the mind that one of the ways to help Doha close the
> gap" is through a "thoughtful services policy," he added.
>
> Noting that the global market in information and communications > services
> is estimated at nearly $4 trillion, Kirk said the United States has > to keep
> the service sector on the front-burner of trade discussions beyond > Doha. He
> said the administration was working with the governments in the
> Asia-Pacific region to facilitate cross-border services trade, and > that
> "our free trade agreements have gone a long way toward achieving open
> markets for services."
>
> Noting that services account for 75 percent of the domestic economy > but
> only 30 percent of U.S. international trade, Kirk called the sector > "the
> main driver of U.S. economic and global growth." He cited a report > by the
> Coalition of Service Industries' Research and Education Foundation > that
> found nearly 23 million new jobs were created between 1993 and 2005 > in the
> services sector.
>
> Kirk also emphasized that "trade does not occur in a vacuum," and that
> overhauling health care is a top priority. Without reform, he said,
> companies will not be able to compete internationally, no matter > what trade
> policies are implemented.
>
> "Right now, American businesses and workers can't take full > advantage of
> job-creating trade opportunities, because our healthcare system is > draining
> their resources. And they won't be able to take advantage of those
> opportunities until we get healthcare reform done," Kirk said.
>
>
> http://www.nationaljournal.com/congressdai...091013_3414.php
>
> -----
> HILL BRIEFS: SENATE VOTING LATER TODAY ON C-J-S BILL
>
> Appropriations. The Senate is scheduled to vote later today on > whether to
> cut off debate on the $64.9 billion FY10 Commerce-Justice-Science
> Appropriations bill. Senate Majority Leader Reid said Senate > Democratic and
> Republican leaders will work through the afternoon to reach an > agreement on
> amendments. He said the cloture vote scheduled for this afternoon > might not
> be needed if an agreement can be reached. Reid last week filed > cloture on
> the bill after arguing that most of the amendments filed are not > germane.
> Among them is a proposal from Sen. Lindsey Graham, R-S.C., that would
> prevent funds in the bill from being used to try the perpetrators of > the
> Sept. 11, 2001, terrorist attacks, in federal courts. Graham argued > last
> week that the suspects should be considered war criminals and > accordingly
> be tried in military courts.
>
>
> http://www.nationaljournal.com/congressdai...091013_9739.php
>
> -----
> HILL BRIEFS: CLARKE PRESSES NEED FOR CYBER CZAR
>
> Technology. House Homeland Security Emerging Threats Subcommittee
> Chairwoman Yvette Clarke, D-N.Y., today urged President Obama to > appoint a
> high-level official to coordinate how the government and the private > sector
> prepare for and respond to high-tech attacks. Obama announced early > in his
> presidency that he would focus on cyber issues and in May he > promised to
> handpick a White House official to oversee that mission. Clarke, who > spoke
> at a TechAmerica briefing in recognition of National Cybersecurity
> Awareness Month, called filling the post "a matter of immediacy," > noting
> the urgent need to encourage collaboration and information-sharing > among
> federal agencies, academia, and industry stakeholders. Clarke said
> ignorance about safe computing "creates vulnerabilities right here on
> Capitol Hill," noting that she would host the first in a series of
> educational "cyber-flu shot" sessions for members and staff Friday.
>
>
> http://www.nationaljournal.com/congressdai...091013_9918.php
>
> -----
> HILL BRIEFS: CFTC HAS FULL ROSTER
>
> Agriculture. Senate confirmation last week of three nominees for the
> Commodity Futures Trading Commission means the panel will be fully > staffed
> as lawmakers and the Obama administration move to overhaul > regulations for
> futures and derivatives trading. On Thursday, the Senate confirmed > Jill
> Sommers for a term expiring in 2014 and Bart Chilton for a term > ending in
> 2013. The Senate also confirmed Scott O'Malia, a Senate aide, who will
> serve until 2015. They join CFTC Chairman Gary Gensler, whose term > expires
> in 2014, and Commissioner Mike Dunn, whose term ends in 2011. The > Senate
> also confirmed three nominees for other agriculture posts: Harris > Sherman
> as USDA undersecretary for natural resources and the environment; > Edward
> Avalos as USDA undersecretary for marketing and regulatory services; > and
> Kenneth Spearman as a member of the Farm Credit Administration board.
>
>
> http://www.nationaljournal.com/congressdai...091013_2485.php
>
> -----
> HILL BRIEFS: HIGH COURT WILL HEAR APPEAL FROM SKILLING
>
> Judiciary. The Supreme Court will consider throwing out the > convictions of
> former Enron Chief Executive Officer Jeff Skilling for his role in the
> collapse of the one-time energy giant, the Associated Press > reported. The
> court said today it will hear Skilling's appeal of lower court > rulings that
> upheld all 19 of his 2006 convictions of conspiracy, securities fraud,
> insider trading and lying to auditors involving the 2001 collapse of > Enron.
>
>
> http://www.nationaljournal.com/congressdai...091013_9586.php
>
> -----
> HILL BRIEFS: HUTCHISON UNSURE ABOUT RESIGNATION TIMING
>
> Politics. Sen. Kay Bailey Hutchison, R-Texas, suggested this morning > she
> might postpone her resignation from the Senate, the Fort Worth
> Star-Telegram reported. "I am going to leave," Hutchison told WBAP-> AM talk
> show host Mark Davis. "I think it's important that I do everything I > can
> when there are such huge issues and I haven't been able to set that
> deadline, which I know is something a lot of people are looking at to
> determine what other possibilities there might be." Hutchison, who is
> challenging GOP Gov. Rick Perry next year, has said she planned to > retire
> in October or November. Davis asked Hutchison if she might stay in the
> Senate through next year's March primary. "I can't say anything > right now
> because I don't know," Hutchison said. "Every day in Washington, > some new
> bad thing is coming up."
>
>
> http://www.nationaljournal.com/congressdai...091013_8851.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "What I did is like a Bob Dylan protest song. What Joe Wilson did is > like
> a belch."
>
> -- Rep. Alan Grayson, D-Fla., explaining during an MSNBC appearance > Monday
> the difference between his statement that the Republicans' > healthcare plan
> is to tell Americans to "die quickly" and South Carolina GOP Rep. Joe
> Wilson's shout of "You lie!" during President Obama's address to > Congress.
>
>
> http://www.nationaljournal.com/congressdai...091013_9880.php
>

[Snuffysmith]

> CongressDaily AM for Thursday, Oct. 15, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: BOTH CHAMBERS LOOK TO MOVE MEDICARE PHYSICIAN FIX SOON
> By Anna Edney and Dan Friedman, with Kasie Hunt, Billy House and > Darren
> Goode contributing
>
>
> In a surprise move, physicians will get a Senate vote as early as next
> week on a Medicare payment fix that helps them avoid massive cuts as > House
> Democratic leaders work to set up that chamber's own separate vote > on a
> payment solution.
>
> The Senate move will appease physicians who have leaned on senators > to use
> the overhaul to permanently fix a payment structure that leaves > physicians
> facing annual cuts in Medicare reimbursement, including a 21 percent
> reduction looming next year. Physicians argue other payment reforms > that
> focus reimbursement on quality rather than quantity are not as > effective if
> the medical community continues to face cuts.
>
> Physician lobbyists met Wednesday evening with White House > healthcare czar
> Nancy-Ann DeParle, Senate Majority Leader Reid, Senate Finance > Chairman Max
> Baucus and Sen. Christopher Dodd, D-Conn. Senate Democratic leaders > made a
> procedural move Tuesday night that allows the chamber to bypass the > usual
> committee process and take the $245 billion fix, proposed by Sen. > Debbie
> Stabenow, D-Mich., straight to the floor.
>
> Reid, Baucus and Dodd also met Wednesday with White House officials,
> including DeParle, White House Chief of Staff Emanuel and HHS > Secretary
> Sebelius, to discuss merging the Finance and Senate Health, Education,
> Labor and Pensions committees' overhaul bills. The senators are > expected to
> meet again today with administration officials, a spokesman for Reid > said.
>
> Leadership has indicated the merger will be swift. Baucus indicated
> Wednesday that might not be the case for the rest of the road ahead. > When
> asked whether the panel can take up climate legislation before
> Thanksgiving, Baucus said, "I just don't know. Frankly, I think > healthcare
> reform is going to take a little longer than people think."
>
> The Senate could vote on the physician fix as early as next week. > The fix
> faces three tough procedural hurdles that each will require 60 > votes: a
> cloture vote, a budget point of order because the measure is not > offset and
> a motion to proceed to the bill, a lobbyist source said.
>
> Sources expect Reid to file cloture today, setting up a Monday vote to
> limit debate.
>
> Stabenow's bill will repeal the formula, known as the sustainable > growth
> rate, that determines Medicare physician payment. "SGR is one part > of the
> physician reimbursement formula, and the Finance mark contains a new > system
> based on quality that will move physician reimbursement away from > rewarding
> for quantity to rewarding for quality. We have to eliminate the SGR in
> order to move toward the new system," Nkenge Harmon, Stabenow's
> communications director, said.
>
> The Finance proposal gives physicians a 0.5 percent payment increase > next
> year and leaves open the possibility of future increases.
>
> Across the Capitol, Rep. Chris Van Hollen, D-Md., the assistant to the
> speaker, said the House will split the physician payment fix from > the House
> overhaul bill as its own separate legislation to be voted on "in the > same
> time period" as the overhaul.
>
> House Majority Leader Hoyer said earlier Wednesday the decision had > not
> been made to separate the physician fix. "But my view is that > whatever we
> do with the doc fix we would do with or without healthcare reform, and
> healthcare reform really needs to be considered on its own merit and > the
> SGR fix on its own merit," Hoyer said.
>
> A House Democratic aide said the discussions are ongoing.
>
> The House already voted as part of its budget resolution to exempt the
> $245 billion fix from pay-go requirements, but extracting it from the
> overhaul bill will help bring down the overall cost of the measure. > The
> House has been searching for a way to get its overhaul bill closer > to $900
> billion, as President Obama has indicated he prefers, rather than the
> approximately $1 trillion it is at now.
>
> The House legislation would eliminate future cuts and create a new > payment
> formula to encourage efficiency like Finance's proposal.
>
> A lobbyist source said the physician fix could end up back in the > overhaul
> proposal through a House maneuver known as a "self-executing rule," > that,
> according to the Congressional Research Service, "may stipulate that a
> discrete policy proposal is deemed to have passed the House and been
> incorporated in the bill to be taken up" once the House passes the > rule
> governing floor time for the larger piece of legislation under
> consideration. This would allow the House to claim its bill is
> deficit-neutral even when the fix is attached and not offset.
>
>
> http://www.nationaljournal.com/congressdai...091015_3556.php
>
> -----
> HEALTH: HOUSE LEADERS CONSIDER INCREASING PAYMENTS TO HOSPITALS
> By Kasie Hunt with Billy House and Peter Cohn contributing
>
>
> House leaders are considering paying hospitals more money under a > public
> option as they push to include a Medicare-based government insurance > plan
> in the health care overhaul, sources said Wednesday.
>
> "The way the public option came out of Ways and Means, you would > have had
> Medicare rates for hospitals and Medicare-plus-five for physicians," > said
> Democratic Congressional Campaign Committee Chairman Chris Van > Hollen of
> Maryland, who is the assistant to the speaker. "So the issue now is > that if
> you do Medicare-plus-five for hospitals and physicians, does that > address
> the concerns of people who were nervous about that version of the > public
> option?"
>
> House Speaker Pelosi met with members Wednesday to discuss the public
> option, and sources said she indicated the House would likely vote > on a
> bill with one based on Medicare rates. "They are very close to > including
> this," a lobbying source said.
>
> Leaders are working to merge bills from each of the three committees > of
> jurisdiction. The House Energy and Commerce Committee's version > requires
> the HHS secretary to negotiate the public plan's rates directly with
> providers, while the bills from Ways and Means and Education and > Labor use
> Medicare rates to determine payment levels.
>
> Pelosi's office emphasized that negotiations are ongoing. "No > decisions
> have been made on the public option, but the bottom line is this: > The House
> bill will have a public option to bring competition to the insurance
> industry and ensure affordability for the middle class," said Pelosi
> spokesman Nadeam Elshami.
>
> Using Medicare rates would be a victory for the party's liberal > wing. "If
> indeed that is the direction we're going, we're grateful," said Rep. > Raul
> Grijalva, D-Ariz., co-chair of the Congressional Progressive Caucus.
>
> Paying hospitals more would likely help appease members from rural > states,
> who believe their providers are unfairly penalized by disparities in
> Medicare reimbursement rates. Democrats are working to adjust the > Medicare
> formula to fix that issue, "but people want a little added > assurance," Van
> Hollen said.
>
> "There are some members who have said that would address their > concern.
> ... There are some people who have said this does not," he said.
>
> The Blue Dog Coalition has expressed general reservations about the
> Medicare-based plan -- they pushed to include negotiated rates in the
> Energy and Commerce bill -- but the Blue Dog co-chairwoman, Rep. > Stephanie
> Herseth Sandlin of South Dakota, said it is particularly problematic > if
> there is no hospital fix.
>
> "The proposal is Medicare-plus-five for doctors, but Medicare for
> hospitals, and that will destroy the healthcare infrastructure in many
> people's districts whether they're Blue Dog Democrat, progressive > alike,"
> she said.
>
> "Obviously, what we are trying to do is work through various different
> issues that individual members have indicated problems with, because > they
> want to make sure that it works for their areas and for their > people," said
> Majority Leader Hoyer.
>
> Leaders have not detailed how the change would affect the public > plan's
> savings. The Medicare-based public option included in the Ways and > Means
> version of the bill would save approximately $110 billion over 10 > years,
> leaders have said. The Energy and Commerce version, which requires > the HHS
> secretary to negotiate rates, would save $25 billion -- or $85 billion
> less.
>
> Leaders are waiting on updated CBO scores for three separate > versions of
> the public option. The scores are not expected until early next week,
> sources said.
>
>
> http://www.nationaljournal.com/congressdai...091015_4571.php
>
> -----
> FINANCE: DEMS COALESCE AROUND TOUGHER DERIVATIVES PROVISIONS
> By Bill Swindell and Jerry Hagstrom
>
>
> The House Financial Services Committee is slated to approve > legislation
> today that would place greater regulations on the over-the-counter
> derivatives market in a vote that showcases Democrats coalescing > around an
> effort to place tough requirements on the financial industry despite
> aggressive lobbying by big banks.
>
> The panel is expected to approve Financial Services Chairman Barney
> Frank's bill to force more trades on the multitrillion-dollar OTC > market --
> where customized trades take place between two parties with less > regulation
> -- onto exchanges and require greater capital standards to prevent a
> collapse such as the one at American International Group.
>
> Frank revised his bill after it came under criticism, particularly > from
> Commodity Futures Trading Commission Chairman Gary Gensler, that it
> contained too many loopholes. "I think Gensler is mostly satisfied," > Frank
> said after his panel finished debating amendments to the measure. > Frank
> noted that he called AFL-CIO Chairman Richard Trumka to reassure him > that
> he was taking a tough stance on the issue after a labor-backed group
> strongly criticized his earlier version.
>
> For example, Frank offered an amendment Wednesday that would mandate > that
> trades between major financial players -- such as banks and hedge > funds --
> must be placed on exchanges. But trades by end-users such as airlines,
> manufacturers and farmers, which use them to hedge against business > risk,
> would be exempt.
>
> Frank did not include such a mandate for cleared swaps in his first > draft,
> while an Obama administration proposal and a competing draft from > House
> Agriculture Chairman Collin Peterson did. Gensler had argued that > placing
> those trades on the exchanges would provide better transparency and
> pricing, though cut into the profit margins of the five big banks that
> dominate the OTC market.
>
> "We do not believe mandating exchange trading is necessary. There is > no
> reason for the government to mandate one particular transaction mode > over
> another," said Cory Strupp of the Securities Industry and Financial > Markets
> Association.
>
> Despite the difference in the language, Assistant Treasury Secretary
> Michael Barr said Frank's exemptions for end-users were reasonable and
> would continue to work on the language before it comes to the floor, > most
> likely as part of an overall revamp of the nation's financial > regulatory
> system.
>
> On another issue, Frank said he is moving closer to the Obama
> administration over a definition of a "major swap participant" that > would
> come under greater scrutiny from the bill's regulation. Gensler had
> criticized an earlier Frank draft that allowed exemptions for "risk
> management purposes."
>
> Frank offered an amendment Wednesday that would designate firms as a > major
> swap participant if they would expose their counterparties to > significant
> losses. Frank would additionally give the SEC and CFTC more > authority to
> exempt firms from falling under the definition.
>
> It was approved on a voice vote.
>
> "The administration urges a definition that would exclude few end-> users.
> ... They would have a narrower exclusion," said Frank, who added > that he
> understood Peterson was moving closer to the administration's > language for
> a major swap participant. "I don't think there are going to be huge
> differences."
>
> The Agriculture Committee will mark up its bill Wednesday. Peterson > said
> he expects a bipartisan vote in favor of the measure, in which banks > and
> dealers face a greater obstacle in getting their language attached > given
> that Peterson has held a skeptical view of Wall Street traders.
>
> Agriculture ranking member Frank Lucas, who sits on Financial > Services,
> said in an e-mail Wednesday, "It is fortunate that Agriculture > Committee
> members will have a few days to evaluate the outcome of this markup > before
> taking up the issue next week. There are still concerns from the end-> user
> community and others with both the Frank and Peterson bills."
>
> Peterson, who met with Gensler Wednesday, said he was pleased with the
> changes that Frank made because "he keeps picking up our provisions > and
> putting them in his bill." He noted a provision in Frank's proposal to
> allow end users of derivatives such as airlines, manufacturers and > farmers
> to continue using the non-cash collateral for margin requirements. > "The end
> users were not causing any problems," Peterson said.
>
> Peterson said his bill would include language to curb speculation in > the
> energy and agricultural markets that were contained in an earlier > bill that
> his committee passed. Peterson said he expects that he would add a
> provision to give the CFTC authority to establish position limits > for such
> markets.
>
> Airlines, public utilities and farm groups have complained that
> commodities speculation by investors last year caused futures prices > to
> skyrocket. They contend such speculation makes the futures markets
> unworkable for long-term market participants that depend on them for > risk
> management and price discovery.
>
> Barr said the administration financial services regulation proposal > was
> silent on the speculation issue, but said administration officials are
> working with Peterson.
>
> The two bills also differ over who would have the authority to > mandate if
> swaps should go through a clearinghouse, which guarantees a trade and
> establishes capital requirements.
>
> Under Frank's bill, clearinghouses would be able to submit swaps to > either
> the SEC or CFTC for approval and the regulators would then determine
> whether the swap should be cleared. Peterson's draft would allow the
> clearinghouse to make the call regarding whether a trade should be
> considered standard and could be cleared.
>
>
> http://www.nationaljournal.com/congressdai...091015_9740.php
>
> -----
> TELECOMMUNICATIONS: REPUBLICANS SET STAGE FOR POSSIBLE FIGHT WITH FCC
> CHIEF
> By David Hatch
>
>
> Senate Commerce ranking member Kay Bailey Hutchison will try to > block the
> FCC from adopting new Internet regulations if agency Chairman Julius
> Genachowski doesn't modify or abandon a proposal dealing with "network
> neutrality" that is scheduled for a vote next week.
>
> The showdown is occurring amid a rising chorus of protests from
> Republicans that is expected to include House legislation requiring > the
> commission to produce concrete evidence justifying any additional
> regulations designed to preserve the Internet's openness.
>
> The regulatory battle is the first major political test for > Genachowski,
> who assumed the chairmanship in late June after a long stint in the > private
> sector. A government source, describing him as "very thin-skinned," > said
> congressional Republicans have calculated that their best strategy > is a
> campaign of relentless pressure and criticism.
>
> Industry players such as AT&T were said to be lobbying frantically
> behind-the-scenes to drum up opposition from lawmakers.
>
> Hutchison's next move hinges on Genachowski's response to a dozen
> questions she posed Tuesday in letter about his plan to expand and > fortify
> net neutrality regulations.
>
> The FCC plans to vote at its Oct. 22 meeting on Genachowski's > proposal for
> additional requirements aimed at preventing broadband providers from
> blocking or degrading competing content and services carried over > their
> high-speed infrastructure. Genachowski has said he wants to require
> operators to disclose their network management practices and wants the
> agency to step up enforcement actions against violators.
>
> If Genachowski fails to amend the proposal to reflect the senator's
> concerns -- including her demand that online players such as Google > and
> Skype be subject to new Internet regulations -- she'll proceed with > the
> legislation, sources said.
>
> On the House side, Energy and Commerce Communications Subcommittee > ranking
> member Cliff Stearns, R-Fla., is seriously contemplating a bill > requiring a
> higher threshold for any rule changes, requiring a cost-benefit > analysis
> and other additional steps.
>
> While it's doubtful Stearns could muster the votes to get the bill > out of
> committee, the bill's introduction would send a strong message that > House
> members are closely monitoring the rulemaking process, a Hill > staffer said.
>
> Hutchison's measure, if pursued, would face an uphill battle. Last > month,
> after Genachowski outlined his plan in a speech, she considered > tacking it
> onto the Interior Appropriations bill despite questions about its
> germaneness to the underlying bill. After the chairman initiated a > dialogue
> with her office, she backed off.
>
> Hutchison has a new legislative vehicle that is more germane: the
> Financial Services Appropriations bill, which covers the FCC and could
> reach the floor as early as November.
>
> Republicans are worried that next week's vote would set the agency > on the
> path of adopting regulations that could create marketplace > uncertainty and
> stifle investment. They are concerned that the draft of Genachowski's
> proposal, which is not available for public comment, includes foregone
> conclusions about how the agency should act, which they contend would
> prejudice the outcome.
>
> Genachowski's supporters note that companies such as AT&T, Comcast and
> Verizon have continued to invest heavily despite the FCC's adoption of
> Internet principles and net neutrality conditions imposed on recent
> mergers. And they insist that uncertainty created by the lack of > stringent
> rules dissuades investment in online content and services and harms
> consumers.
>
> The agency's two GOP regulators, Robert McDowell and Meredith Baker, > have
> expressed skepticism about the need for tougher net neutrality > safeguards,
> though with negotiations still in flux, it's unclear how they will > vote.
>
> Sources said it is highly unusual for a commissioner to oppose a > proposed
> rulemaking, which is intended to collect data and public feedback > before
> final rules are considered. As a result, "no" votes or even partial
> dissents by the Republican commissioners would be viewed as a rebuke > of
> Genachowski's approach, they said.
>
>
> http://www.nationaljournal.com/congressdai...091015_1171.php
>
> -----
> SOCIAL SECURITY: OBAMA ENDORSES EFFORT TO PROVIDE SENIORS A $250 BOOST
> By Peter Cohn, with George E. Condon Jr. contributing
>
>
> President Obama Wednesday got behind efforts to provide seniors with a
> $250 cash boost next year, in time for today's announcement from the > Social
> Security Administration that there won't be a 2010 cost-of-living
> adjustment.
>
> The one-time payment would cover the costs of a 2 percent benefit > increase
> for nearly 50 million Social Security recipients -- whose benefits > would
> otherwise be flat or cut next year because Medicare Part B premiums > are
> scheduled to rise.
>
> As proposed by the White House, the $13 billion cost would not be paid
> for, similar to a $250 payment for 2009 approved as part of the $787
> billion economic stimulus enacted in February.
>
> "Even as we seek to bring about recovery, we must act on behalf of > those
> hardest hit by this recession," Obama said in a statement. "This > additional
> assistance will be especially important in the coming months, as > countless
> seniors and others have seen their retirement accounts and home values
> decline as a result of this economic crisis."
>
> A senior administration official said the White House would be > discussing
> timing and cost concerns with lawmakers. But the key point for Obama > was
> that the funding should come out of general revenues and not the > Social
> Security Trust Fund, so as not to affect the program's solvency.
>
> The official said the administration views the 2010 payment much as > it did
> the first one in the stimulus package, as a tool for economic > recovery that
> shouldn't require offsets.
>
> "In the past, when people have done things, for example like extending
> unemployment insurance benefits in a recession, they have > historically not
> been offset in the context of a recession," the official said. "So > we are
> looking at this as an extension of something in the Recovery Act. We > are
> going to have a discussion with Congress on the issue of financing > but the
> president would not insist that it be paid for."
>
> The measure is backed by influential groups like AARP and the National
> Committee to Preserve Social Security and Medicare. Senior lawmakers
> including House Ways and Means Chairman Charles Rangel and Senate > Majority
> Leader Reid quickly issued statements that they will work to enact the
> benefit increase. "Millions of seniors are seeing higher > prescription drug
> and healthcare costs while, at the same time, the value of their > homes,
> pensions and life savings have declined," said Sen. Bernie Sanders, > I-Vt.,
> who has already introduced legislation to provide the $250 payment.
>
> Overall, the payments would go to about 57 million individuals, mainly
> Social Security beneficiaries but also recipients of Supplemental > Security
> Income, veterans benefits, railroad retirement and disability > benefits, and
> public-employee retirees. Democrats are also looking at extending > portions
> of the stimulus such as unemployment insurance and health benefits for
> laid-off workers, as well as some tax provisions, such as a credit for
> first-time home buyers.
>
> A separate House-passed bill to stave off scheduled Medicare Part B
> increases, at a $2.8 billion cost, is held up in the Senate due to
> objections from GOP conservatives. Advocates say that fix is also > necessary
> because Medicare premiums are deducted from Social Security, > resulting in
> an overall cut in benefits next year if no action is taken.
>
>
> http://www.nationaljournal.com/congressdai...091015_6602.php
>
> -----
> DEFENSE: GATES WEIGHS WHETHER TO URGE VETO OF AUTHORIZATION BILL
> By Otto Kreisher
>
>
> Defense Secretary Gates' staff is evaluating the final version of > the FY10
> defense authorization bill to see if the continued funding of an
> alternative engine for the F-35 Joint Strike Fighter will require > President
> Obama to veto the bill, the Pentagon's spokesman said Wednesday.
>
> The staff still is "going through this lengthy document to determine > if it
> in any way violates the bench mark the secretary set," spokesman Geoff
> Morrell said during his regular Pentagon briefing.
>
> The Obama administration wants to cancel the second engine program, > which
> it considers an unnecessary expense. Morrell reiterated Gates' vow to
> recommend a veto of any defense legislation if it would "seriously > disrupt"
> the F-35 program, which is intended to meet urgent aircraft > requirements of
> the Air Force, Navy and Marine Corps.
>
> The conference version of the defense bill would authorize $560 > million to
> continue work on an engine, being developed by General Electric and
> Rolls-Royce, as an alternative to the engine by Pratt & Whitney that > powers
> the F-35s being tested. The House approved the conference bill last > week
> and the Senate is expected to vote soon.
>
> Even if the bill would not adversely affect progress on the F-35 for > one
> year, Morrell said, that "doesn't affect how we would look at the > long-term
> effect."
>
> "There is no diminishing of our commitment to assuring there is no > impact
> on the program" by continuing funding for a second engine, he said.
>
> Senate Armed Services Chairman Carl Levin last week said he hoped the
> conference decision to authorize funding for all 30 F-35s the
> administration sought for FY10 would shield the bill from a veto. > The House
> bill had only provided funds for 28 F-35s, in part to pay for the > alternate
> engine.
>
> "It's hard to imagine them vetoing an authorization bill when we don't
> impact the program negatively," Levin said.
>
> A veto of the authorization could influence the ongoing negotiations > on
> the FY10 Defense Appropriations bills, in which the House provided > funds
> for the alternative engine but the Senate bill did not.
>
> "The action taken thus far by Congress is troubling," Morrell said.
>
>
> http://www.nationaljournal.com/congressdai...091015_4589.php
>
> -----
> APPROPRIATIONS: INOUYE LOOKS TO CLEAR DECK BEFORE HEALTHCARE DEBATE > STARTS
> By Humberto Sanchez with Chris Strohm contributing
>
>
> Senate Appropriations Chairman Daniel Inouye hopes to get as many > spending
> bills as possible through the Senate before the healthcare reform > package
> hits the Senate floor.
>
> "What we are trying to do is get everything out as soon as possible,"
> Inouye said Wednesday. "I don't think health care will come up for > another
> week."
>
> Senate Democratic leaders are combining the health bill approved > this week
> by the Senate Finance Committee with another version of the > legislation
> approved this summer by the Health, Education, Labor and Pensions
> Committee.
>
> The merged bill could be ready for floor debate later this month. The
> debate is expected to be lengthy and will make it difficult for the > Senate
> to continue work on appropriations.
>
> Senate Majority Whip Durbin said Wednesday Senate Democratic leaders > are
> deciding how to move the appropriations process forward once the > health
> bill comes to the floor.
>
> "It depends on what we do, whether it's a [continuing resolution] > and we
> come back with regular appropriations bills or it's an omnibus bill, > [it's]
> still undecided."
>
> Inouye said he hopes to work on the bills one at a time, as opposed to
> packaging them in an omnibus.
>
> But he believes that effort was hurt Tuesday when Republicans voted
> against ending debate on the $64.9 billion, FY10 Commerce-Justice-> Science
> Appropriations bill, which will cause the Senate to take more time to
> finish work on it.
>
> Typically, a few Republicans vote with Democrats to move the
> appropriations process along, but none did in this instance.
>
> Senate Republican Conference Chairman Lamar Alexander of Tennessee > said
> "the reason that happened is because at the last minute [Senate > Majority
> Leader Reid] decided not to allow a reasonable number of Republican
> amendments, I think seven was the number."
>
> One amendment was particularly controversial, according to a GOP
> leadership aide, who said the dispute was primarily over a proposal > by Sen.
> David Vitter, R-La., to prevent funding of the 2010 Census unless > census
> workers are required to inquire if those they question are U.S. > citizens. A
> spokeswoman for Reid, however, said Republicans were using the > amendment
> dispute "as a stalling tactic."
>
> Durbin said he was surprised Republicans did not vote to move the > bill.
>
> "We are talking about a key appropriations bill for law enforcement > across
> America, we couldn't get a single Republican to join us," he said.
>
> So far, Congress has sent President Obama two of the 12 annual > spending
> bills, including the FY10 Agriculture bill, which provides $23.3 > billion in
> discretionary spending. Congress has also sent Obama the $4.6 > billion, FY10
> Legislative Branch measure. That bill included a continuing > resolution to
> fund the government through October.
>
> The Senate is close to clearing the final version of the $33.5 > billion,
> FY10 Energy and Water Appropriations bill. The House passed the bill > Oct.
> 1, and a vote in the Senate would send the bill to Obama.
>
> The House is expected to take up the final version of the FY10 > Homeland
> Security bill this week, which would set up possible Senate action > next
> week, according to House Homeland Security Appropriations Subcommittee
> ranking member Harold Rogers, R-Ky. The Rules Committee Wednesday > approved
> the rule for the conference report, allowing one hour of debate and > one
> motion to recommit.
>
> Rogers would not say if Republicans will offer a motion to recommit.
> Earlier this month, the House approved, 258-163, a nonbinding GOP > motion to
> instruct conferees to include language to prohibit the transfer of
> prisoners from the military detention facility at Guantanamo Bay, > Cuba, to
> the United States.
>
> Meanwhile, House and Senate negotiators are reconciling differences
> between their versions of the FY10 Defense bill, the FY10
> Transportation-HUD bill, and the FY10 Interior-Environment bill.
>
> Negotiators could meet next week to finalize a compromise
> Interior-Environment bill, according to House Interior-Environment
> Appropriations Subcommittee ranking member Mike Simpson, R-Idaho.
>
> Simpson said conferees are working on settling on the funding level > in the
> bill. The Senate late last month approved a $32.1 billion, FY10
> Interior-Environment Appropriations bill, while the House in June > approved
> a $32.3 billion measure.
>
>
> http://www.nationaljournal.com/congressdai...091015_1123.php
>
> -----
> HOMELAND SECURITY: OFFICIAL SAYS EINSTEIN SECURITY SYSTEM WON'T READ
> E-MAILS
> By Chris Strohm
>
>
> Although a sophisticated system called Einstein 3 is in development to
> detect and prevent electronic attacks on federal civilian networks, a
> senior Homeland Security official gave assurances Wednesday that the
> department has no intention of reading contents of e-mails or other
> communications.
>
> Instead, the department wants to have the system determine whether
> electronic communications entering the networks contain viruses or > other
> attack signatures, the official said.
>
> Einstein 3 is expected to deal solely with federal civilian > networks. The
> Defense Department is responsible for protecting military networks.
>
> But so far, Homeland Security officials have provided little > information
> publicly about the reach of Einstein 3, stoking concerns by privacy > and
> civil rights groups that the government might ultimately intend to > read and
> store the contents of electronic communications produced by U.S. > citizens.
>
> "The intention is not to look at the contents of e-mail," Phil > Reitinger,
> deputy undersecretary for the department's National Protection and > Programs
> Directorate, said in an interview with reporters.
>
> "The intention is to look for attack signatures; things that > indicate an
> attack. So, for example, if a virus is coming in you would want to > see the
> pattern of bits that indicates a virus or worm is coming in," > Reitinger
> said. "You are looking for specific indicators of attack, not the > contents
> of people's e-mail."
>
> "We use automated signature analysis," he added. "No person would > look at
> any particular piece of data unless a signature was matched and > indicated
> that an attack was in progress."
>
> Reitinger accompanied Homeland Security Secretary Napolitano in a > media
> roundtable intended to help raise awareness about cybersecurity. > Reitinger
> said the "general level" of attacks against U.S. government networks > is
> going up.
>
> "Our risk profile continues to go up for a number of reasons," he > said.
> "We're tying more and more systems together in more and more > different ways
> and we're depending upon them more and more every day. And that > means in
> sum that it's harder for us to secure that overall ecosystem and help
> protect national and homeland security."
>
> But he said the government continues to struggle with identifying the
> origin of attacks. He declined to discuss attacks that might be > coming from
> foreign governments, such as China and Russia, or international > criminal
> gangs.
>
> Homeland Security has launched an exercise using data from AT&T and
> technology developed by the National Security Agency and other > agencies to
> help develop Einstein 3.
>
> "Exactly what Einstein 3 will be -- and the technology to be used -- > is
> still, I think, in a to-be-tested-and-determined state," Reitinger > said.
> "But Einstein 3 is an intrusion prevention system that is supposed > to move
> beyond simply detecting intrusions after they've taken place [to]
> preventing them from occurring."
>
> Napolitano said the department is not seeking any legislative > changes by
> Congress to aid cybersecurity efforts. She said her department is > focusing
> on ensuring good information sharing and getting protective measures > out
> for the domains it is primarily responsible for securing.
>
> She also decried the use of the word "czar" to describe the position > of a
> cybersecurity adviser that President Obama intends to pick. "I think > it has
> become overused and more and more inaccurate as a form of journalistic
> shorthand," she said of the word.
>
> "What the White House is going to be identifying is a coordinator,"
> Napolitano said. "And the reason there will be a coordinator is > because you
> have a huge universe of issues -- cyber -- that has now been divided > up in
> terms of who has operational responsibility, primarily between DOD > and DHS
> ... and there are other agencies as well that obviously have roles to
> play."
>
>
> http://www.nationaljournal.com/congressdai...091015_8031.php
>
> -----
> JUDICIARY: RADIO STATIONS COULD SEE FEE SCALE FOR ROYALTY PAYMENTS
> By Andrew Noyes
>
>
> Senate Judiciary Chairman Patrick Leahy is expected to propose carve-> outs
> for small and minority-owned radio stations today if his committee > takes up
> a bill that would force AM and FM radio to pay a fee to performers and
> record labels.
>
> The legislation, which Leahy introduced in February amid protests > from the
> National Association of Broadcasters, is among several bills awaiting
> action.
>
> A manager's amendment incorporates concessions made by the House > Judiciary
> Committee, which passed its version in May. Under the plan, stations > making
> less than $100,000 a year would pay a $500 yearly fee; stations > grossing
> between $100,000 and $500,000 would pay $2,500; and those grossing > between
> $500,000 and $1.25 million would pay $5,000. Stations that gross > more than
> $1.25 million a year would pay a per-song rate. Leahy's proposal > allows
> community stations earning less than $50,000 to pay $100 per year.
>
> Leahy's bill is expected to include a three-year delay on payment > for any
> broadcaster making more than $5 million annually and a one-year pass > for
> those making more, sources said. Similar changes were made in the > House to
> accommodate radio stations' complaints that they are struggling to > survive
> in the current economic climate.
>
> Several potential amendments have been circulated by Sen. John Cornyn,
> R-Texas, including one that would create a do-not-play list under > which
> performers could earn revenue from platforms like cable, Internet and
> satellite, which already pay royalties. The idea was pitched by > Cornyn at
> an August hearing on the topic, but Senate Majority Whip Durbin > warned the
> idea could be troublesome for composers who do get paid by AM and FM
> stations.
>
> Another possible amendment would stipulate that artists get 100 > percent of
> revenue generated from the fee, essentially blocking any money from > padding
> record labels' coffers. That, sources have said, would be a "bill > killer."
> A third proposal would delay implementation of the bill until the FCC
> determines that its provisions do not lead to a reduction in > diversity on
> the airwaves.
>
> Sen. Blanche Lincoln, D-Ark., who is not on the Judiciary Committee, > has
> led the opposition to Leahy's bill and has gathered more than 20 > supporters
> for a resolution challenging "any new performance fee, tax, royalty, > or
> other charge" on local radio stations. Texas Reps. Gene Green, a > Democrat,
> and Mike Conaway, a Republican, introduced an identical measure in the
> House that has 251 backers.
>
>
> http://www.nationaljournal.com/congressdai...091015_9356.php
>
> -----
> FINANCE: WATT, MOORE LOOK FOR COMPROMISE ON CFPA LANGUAGE
> By Bill Swindell and Andy Leonatti
>
>
> Looking to avoid votes that could split their ranks, House Financial
> Services Democrats were negotiating Wednesday over compromise > language to
> create a Consumer Financial Protection Agency, which is largely > opposed by
> banking interests.
>
> The most pressing issue for members is trying to craft an agreement > over
> whether states should be allowed to fashion stronger rules than > proposed by
> the planned agency, which is a main priority for Financial Services
> Chairman Barney Frank and the Obama administration as part of an > overhaul
> of the nation's financial regulatory system. The panel began marking > up the
> bill Wednesday.
>
> Banking groups are arguing for such exclusion for national banks, > noting
> that they have been pre-empted from state regulations after a 2004 > ruling
> by the Office of the Comptroller of the Currency. Rep. Melissa Bean,
> D-Ill., has proposed such an amendment that could be adopted if she > is able
> to persuade enough of her fellow New Democrats. Five other New Dems > have
> signed onto the effort and all Republicans on the panel would likely > vote
> in favor of the approach. Frank opposes pre-emption.
>
> Rep. Melvin Watt, D-N.C., is working with Rep. Dennis Moore, D-Kan., > with
> input from Bean on a compromise. According to a source, the compromise
> would have the national bank apply to the OCC to determine if it must
> comply with state law -- a status that was applied before 2004. The > OCC
> would then have to determine if the state law interfered with the > business
> of banking.
>
> Watt was mum Wednesday night on his efforts, though speculation > centered
> over whether Bean would offer the amendment in committee or save it > for a
> floor vote to see how the Watt-Moore compromise plays out. Bean has > been
> under criticism from the left for her stance, especially from Illinois
> Attorney General Lisa Madigan, who called on Bean to "put the > interests of
> our consumers before those of the banks that led us in part to this
> financial crisis."
>
> On another issue, Rep. Brad Miller, D-N.C., and Moore plan to offer an
> amendment that would exempt banks with less than $10 billion in > assets and
> credit unions with less than $1.5 billion in assets from enforcement > and
> examination provisions with the new agency, leaving such duties to > their
> current bank regulator.
>
> The amendment would give CFPA the ability to take action if it deems > the
> bank regulator has not taken sufficient action.
>
> But the proposal has its critics, such as those representing big > banks who
> contend small institutions should not get a break and credit union
> lobbyists who argue the threshold for them is too low.
>
> "Most community banks and credit unions did not take advantage of
> consumers the way others did," Miller said in a statement.
>
> Miller is expected to offer an amendment today with Bean requiring any
> firm covered under CFPA to submit the terms and conditions of a new
> financial product to the agency before offering it.
>
> "Giving CFPA immediate access to the latest innovations in different > types
> of loan products (payday loans, refund anticipation loans, mortgages,
> credit cards, etc) will better inform their rulemaking capability and
> enforcement," said Miller and Bean in a Dear Colleague.
>
> While easily agreeing on the first two amendments to the bill on
> Wednesday, the tone of the debate got more heated than on the
> over-the-counter derivatives market reform bill debated earlier in > the day.
>
> Republicans used an amendment from Rep. Joe Donnelly, D-Ind., to > exempt
> modular and manufactured home retailers, to point out that the > measure was
> not ready to be considered, especially considering the carve-outs > Democrats
> wanted to place within the bill.
>
> "Perhaps the bill isn't all the way there yet," said Rep. Kevin > McCarthy,
> R-Calif.
>
> The Donnelly amendment passed by unanimous voice vote, but Rep. Jeb
> Hensarling, R-Texas, predicted "there will be a series of other > carve-out
> amendments," to protect retailers and other businesses that could
> accidentally fall under the jurisdiction of the new agency. Frank > pointed
> out the bill excludes retailers and merchants.
>
> Rep. Michael Castle, R-Del., warned about the looming debate to > allow the
> agency to pre-empt tougher state laws. Business groups and banks say
> without pre-emption, they fear a patchwork of different state > standards.
> Castle called the lack of pre-emption authority in the bill "a > matter of
> huge concern."
>
> Republicans said the bill will cut jobs in the financial sector > because
> regulations will especially harm small firms that will not have the
> capacity to adhere to the rules. Hensarling said the new "draconian" > agency
> would be able to regulate based on "subjective opinions about what is
> abusive."
>
> Frank said the bill was going to be "one of the issues that defines > the
> parties."
>
> The committee also approved an amendment on Wednesday from Rep. Bill
> Posey, R-Fla., to require CFPA to place a disclaimer on any public
> statements that the agency does not endorse any specific financial > products
> or services.
>
>
> http://www.nationaljournal.com/congressdai...091015_2976.php
>
> -----
> PEOPLE: PEOPLE
> By Gregg Sangillo
>
>
> LIBELL-OUS. Rep. Linda Sanchez, D-Calif., has just signed on a senior
> counsel for her Washington office. Mark Libell is expected to manage > tax,
> Social Security, and income security issues for Sanchez, who sits on > the
> House Ways and Means Committee. Libell will also handle financial > services,
> budget and transportation matters. He was a legislative assistant and
> counsel for Rep. Bart Gordon, D-Tenn., and was Gordon's liaison to > the Blue
> Dog Coalition. Earlier, Libell spent two years working for Sen. Debbie
> Stabenow, D-Mich. He has a bachelor's degree in history from Maryville
> College in Tennessee and a law degree from the University of Alabama.
>
> MOUTHPIECES. Sen. Mary Landrieu, D-La., has brought in Rob Sawicki > as her
> press secretary. Sawicki held the same position with Sen. Joseph > Lieberman,
> D-Conn., and he worked on Lieberman's 2004 presidential campaign. Most
> recently, he was working as senior director of communications for the
> Parkinson's Action Network. Sawicki is a Fairfield, Conn., native. > Aaron
> Saunders, who was promoted to be Landrieu's communications director in
> June, was formerly an aide on the other side of the aisle. He used > to be a
> spokesman for former Sen. Ted Stevens, R-Alaska, holding positions > in his
> personal office and at the Senate Commerce Committee when Stevens was
> chairman of that panel.
>
> CAP AND TRADE. The liberal think tank Center for American Progress has
> been beefing up its staff. Jeff Krehely is expected to sign on as > director
> of the LGBT Progress section, dealing with gay rights issues such as
> marriage equality and the military's "don't ask, don't tell" policy.
> Krehely worked at the LGBT Movement Advancement Project, the Urban
> Institute, and several organizations focused on philanthropy. He's > expected
> to work with senior CAP staffer Winnie Stachelberg, who spent many > years
> with the Human Rights Campaign and also worked at OMB during the
> administrations of former presidents George H.W. Bush and Bill > Clinton. New
> with CAP's immigration policy team is Angela Kelley, a former > director of
> the Immigration Policy Center; Marshall Fitz, a former director of > advocacy
> at the American Immigration Lawyers Association, and longtime > journalist
> Gebe Martinez. Michael Linden is working at CAP as an associate > director
> for tax and budget policy. He also worked at the children's advocacy > group
> First Focus.
>
>
> http://www.nationaljournal.com/congressdai...091015_2663.php
>
> -----
> BALANCE OF PAYMENTS: SERVICE, PLEASE
> By Bruce Stokes
>
>
> At the G-20 summit in Pittsburgh last month, the world's major > economic
> powers promised "to adopt policies that promote balanced global > demand."
> For the United States, that means producing more of what Americans > consume,
> while foreigners consume more of what is produced here.
>
> Growing the exports of U.S.-made services such as insurance, banking,
> architectural and legal expertise can make an important contribution > toward
> this needed rebalancing of American trade. Although services account > for
> nearly two-thirds of global economic activity and, in recent years,
> services trade has actually been growing more rapidly than > manufacturing
> production and merchandise trade, services still account for less than
> one-fifth of world trade.
>
> But, as participants in the Global Services Summit hosted by the > Coalition
> of Services Industries heard this week in Washington, the obstacles to
> expanding that commerce are formidable. Realizing America's services > export
> potential will require hard-nosed negotiating in the ongoing Doha > Round of
> multilateral trade negotiations and creative new thinking about > possible
> services-only trade agreements with Europe and Japan.
>
> It has been the goal of every U.S. administration in recent history to
> grow exports. But the persistence of trade imbalances is testimony > to the
> fact that imports have consistently increased faster than exports. The
> current U.S. account deficit, the broadest measure of America's > balance
> sheet with the world, was 5.3 percent of GDP in 2007. By the end of > 2009 it
> will have fallen to about 3 percent, which most economists think is
> sustainable and poses no destabilizing threat to the world economy.
>
> However, much of the recent improvement is due to a falloff in > imports,
> down 33 percent this year thanks to the recession. Once the U.S. > economy
> picks up, imports could return with a vengeance.
>
> To head off the renewed global financial instability that could > ensue, the
> Obama administration has a limited number of rebalancing options:
>
> A weak dollar. The dollar has fallen about 9 percent on a trade-> weighted
> value since March 2009, according to estimates by the St. Louis > Federal
> Reserve. But it is still worth more than in much of 2007 and 2008. > So a
> further weakening of the dollar is in order.
>
> Trade policy. U.S. merchandise exports were down 24 percent in the > first
> eight months of this year compared to the same period in 2008. > Services
> exports were down by only 12 percent. The global market for American-> made
> services remains relatively strong. And the Obama administration > needs to
> focus on completing trade deals that offer the greatest opportunity > to sell
> more U.S. services abroad, especially in markets, such as Europe and > Japan,
> where services constitute a large share of the local economy.
>
> At the moment, the Doha Round of multilateral trade negotiations > offers
> little prospect of that beneficial outcome. Harvesting what is now > on the
> negotiating table in Geneva in agriculture and manufacturing would > actually
> result in U.S. imports growing twice as fast as exports, according to
> recent estimates by the Peterson Institute for International > Economics.
>
> Economists have long argued this would be good, because imports > benefit
> consumers. But in the post-financial crisis world, with a new > priority in
> rebalancing international accounts, a trade agreement that worsens the
> trade imbalance is not in America's interest.
>
> For the Doha Round to be successful, greater trade liberalization is
> necessary, especially in services. But, as U.S. Trade Representative > Kirk
> told the Services Summit, "the offers on the table right now, in the
> services sector, just aren't there." They would deliver no > "meaningful new
> market access" according to an assessment by the Coalition of Services
> Industries this summer.
>
> To correct this shortcoming, the Peterson Institute analysts suggest a
> "topping up" of the Doha agenda: a 10 percent cut in services' trade
> barriers. By their calculations, such an outcome could increase > annual U.S.
> services exports by $10.8 billion, more than the likely combined > growth in
> agricultural and goods exports from the Doha Round.
>
> But the Peterson analysts readily acknowledge that this is an > optimistic
> goal, given the limited services liberalization under discussion.
>
> So the Obama White House needs to think more broadly. Former U.S. > Trade
> Representative Charlene Barshefsky suggested to the Services Summit > that
> the administration consider a services-only trade agreement with > Europe and
> Japan. This effort could supplement whatever is accomplished in the > Doha
> Round and, while difficult to conclude, might ultimately deliver > greater
> benefits than are possible in Geneva at this time.
>
> The rebalancing of the global economy and, more specifically, the
> establishment of a more sustainable American trade balance is long > overdue.
> These goals cannot be achieved simply by growing exports in lieu of > other
> measures, such as a weakening of the dollar. But, in that context, the
> expansion of services exports -- through more ambition in the Doha > Round
> and new services deals with large and growing markets -- can be an
> important part of the solution.
>
>
> http://www.nationaljournal.com/congressdai...091015_2372.php
>
> -----
> POLITICAL ROUNDUP: DODD REPORTS RAISING LESS THAN SIMMONS IN QUARTER
>
> The campaign of Sen. Christopher Dodd, D-Conn., says it will report
> raising $900,000 over the last quarter as Dodd prepares for what > appears to
> be his most competitive re-election bid.
>
> That figure is just below the total his leading Republican foe > raised --
> $967,907.
>
> Jay Howser, Dodd's campaign manager, says the senator has about $2 > million
> on hand.
>
> Howser noted the fundraising total came as Dodd played a key role in > the
> healthcare debate on Capitol Hill in July and while he was > recuperating
> from his battle with prostate cancer in August.
>
> Republican Linda McMahon, the former chief executive of World > Wrestling
> Entertainment, reports spending more than $2 million of her own > money in
> the third quarter. Tom Foley, a former U.S. ambassador to Ireland, > raised
> $780,000.
>
> Simmons criticized McMahon Wednesday, arguing she helped put > Democrats in
> power, the Hartford Courant reported.
>
> "Linda McMahon is entitled to spend as much of her professional > wrestling
> fortune as she wants,'" Simmons said, "but Republican voters will not
> forget that she also spent tens of thousands of dollars to fund > negative
> attack ads against Republican candidates in Connecticut and around the
> country, and helped put [House Speaker] Nancy Pelosi and [then-> Democratic
> Rep.] Rahm Emanuel in power."
>
>
> http://www.nationaljournal.com/congressdai...091015_6571.php
>
> -----
> POLITICAL ROUNDUP: POSSIBLE CANDIDATES EYE WEXLER'S SEAT
>
> The scramble for the seat Rep. Robert Wexler, D-Fla., will vacate in
> January began Wednesday, the Sun Sentinel reported.
>
> Former Broward County Commissioner Ben Graber, a Democrat, said he > would
> run.
>
> Democratic state Sen. Ted Deutch said he has had "lots of > conversations"
> about a possible candidacy.
>
> "I'm going to have important

[Snuffysmith]

> CongressDaily PM for Monday, Oct. 19, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: GOP WEIGHS FIGHT ON PHYSICIAN PAY FIX
> By Dan Friedman, with Anna Edney contributing
>
>
> Senate Republicans plan to raise a budget point of order that could > sink a
> bill to permanently fix a Medicare reimbursement formula that annually
> threatens physicians with payment cuts. But Democrats are betting > that a
> campaign by physician groups, combined with unwillingness among many > GOP
> senators to cross them, will result in passage.
>
> Democratic and Republican leaders agreed Friday to cancel a cloture > vote
> that was set for this afternoon, allowing the bill to come to the > floor
> Tuesday. That gives Majority Leader Reid and groups like the American
> Medical Association, which began an ad campaign last week, and AARP > time to
> lobby for passage.
>
> Many Senate Republicans and some fiscally conservative Democrats
> threatened to oppose the measure due to its $245 billion cost over 10
> years, which the bill does not offset.
>
> "If Congress is going to step in and prevent it, we shouldn't do it by
> racking up more debt on the country's credit card," Senate Minority > Leader
> McConnell said Friday, noting the Treasury Department's announcement > of a
> $1.4 trillion budget deficit in FY09.
>
> Although Democrats and Republicans were negotiating an amendment list
> today, the main attempt to scuttle the bill will come via the budget > point
> of order, which requires 60 votes to waive, Republican and Democratic
> leadership aides said.
>
> Republicans will likely offer multiple amendments to pay for the bill,
> including one requiring use of stimulus funds, GOP aides said.
>
> Democratic plans to pass the bill hinge on the hope that many > Republicans
> want to avoid public opposition to physicians. A Democratic aide > said the
> agreement to allow votes on the bill occurred "because Republicans > don't
> want to be seen filibustering this." Senators retain the chance to
> filibuster the bill before a final passage vote, the aide noted.
>
> Meanwhile, as Reid grapples with merging the Senate's two versions of
> healthcare legislation, Senate Finance Chairman Max Baucus said today
> senators are still working on determining the effects of the latest > public
> option compromise that would allow states to choose to participate > in a
> public plan.
>
> "We're trying to figure out what some of the unintended consequences > may
> or may not be," Baucus said.
>
> An aide close to moderate Democrats said there is also momentum > around a
> trigger that would constitute when a public option could kick in, > but that
> neither alternative has 60 votes yet. "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," the aide said.
>
>
> http://www.nationaljournal.com/congressdai...091019_9842.php
>
> -----
> HEALTH: MCCONNELL: MEDICARE MOVE NEEDS SCRUTINY
> By Dan Friedman
>
>
> The Obama administration's announcement that it would weaken a ban on
> insurers telling seniors their Medicare benefits might be cut if > healthcare
> legislation passes is not enough to satisfy Republicans who > denounced the
> original action as a gag order.
>
> "I'm glad to see the administration has recognized the error of its > ways,"
> Senate Minority Leader McConnell said on the floor this afternoon. > He said
> the ban amounted to a violation of free speech and denied seniors > "crucial
> information about the potential impact of Democrat health care > proposals"
> on their care. Still, he argued that the change announced by the
> administration requires more scrutiny.
>
> McConnell did not address whether Senate Republicans will lift a > threat to
> block confirmation of HHS nominees.
>
> The Centers for Medicare and Medicaid Services announced late Friday > that
> insurance companies administering Medicare benefits can communicate to
> seniors about the potential effect of pending legislation on those > plans,
> but they must first get consent from beneficiaries. The firms cannot > use
> federal money for the communications.
>
> Last month, CMS told insurers to stop sending information about the
> Democratic healthcare proposals to Medicare beneficiaries. The agency
> opened an investigation into Humana, Inc., for alleged misuse of
> beneficiaries' information after the Louisville, Ky.-based company, > a major
> administrator of Medicare Advantage plans, sent a mailing telling > 900,000
> clients they could lose benefits under Democratic proposals.
>
> Senate Finance Chairman Max Baucus, then at work on his committee's
> healthcare bill, denounced the mailing as a lie and asked CMS to act.
>
> Led by McConnell, Republicans denounced the CMS position, arguing it
> violated the free-speech rights of Medicare recipients and insurers.
>
> The tiff is part of a fight pitting the White House and congressional
> Democrats against insurers, who have defected from the coalition of > groups
> supporting Democratic reform plans and came out swinging against > Baucus'
> proposal. Both parties are aggressively wooing seniors in the > healthcare
> reform debate, with each party arguing it would better protect > Medicare
> benefits.
>
>
> http://www.nationaljournal.com/congressdai...091019_8414.php
>
> -----
> FINANCE: BEAN TO DROP PRE-EMPTION VOTE IN MARKUP
> By Bill Swindell
>
>
> Rep. Melissa Bean, D-Ill., will not push for a vote in the Financial
> Services Committee to exclude national banks from state regulation, > even
> though she will continue to push for changes in legislation to > create a
> Consumer Financial Protection Agency, her spokesman said today.
>
> Bean has reached an agreement with Financial Services Chairman Barney
> Frank to engage in a colloquy Tuesday in which she will outline > concerns
> about allowing federally regulated banks to adhere to one set of > rules,
> according to the spokesman.
>
> Frank will respond that he will consider her views as the bill moves > to
> the floor as part of the overhaul of the nation's financial regulatory
> system. Bean will then withdraw her amendment.
>
> "This was essentially the chairman asking for her help in moving > this out
> of committee, but it's not the end of the discussion," the spokesman > said.
>
> Bean could either offer her amendment on the floor -- which is > likely to
> be a close tally given strong Republican support -- or work with > Frank to
> make changes beforehand. A key factor will be a Tuesday vote on an
> amendment by Reps. Melvin Watt, D-N.C., and Dennis Moore, D-Kan., that
> would exempt national banks from state laws if the Office of the
> Comptroller of the Currency determines it "significantly interferes" > with
> its powers.
>
> Consumer activists are fighting for a change that would allow the > CFPA,
> not the OCC, to make the determination, arguing that the bank > regulator has
> been a weak protector of consumer rights.
>
> The issue is further complicated because Bean's daughter was diagnosed
> with swine flu this weekend, and her staff was unsure as of > presstime if
> she would be at the markup.
>
>
> http://www.nationaljournal.com/congressdai...091019_6819.php
>
> -----
> ECONOMY: HOUSE DEMOCRATS PLAN JOB-FOCUSED FORUM
> By Billy House
>
>
> House Democrats have organized another forum of national experts to > talk
> Wednesday about what can be done to rev up the economy amid Republican
> criticism that the majority hasn't been doing enough.
>
> Speaker Pelosi said the event will focus on job creation and the > economy.
>
> The event comes as the House prepares to take up a Senate amendment > to a
> House bill that would extend unemployment benefits and as lawmakers > prepare
> to consider changes to the food stamp program and to health insurance
> coverage for those who leave jobs.
>
> "Our top economic priority as a nation is to get Americans back to > work,"
> Pelosi said.
>
> Among those expected to participate are Alan Blinder, a Princeton
> University economist; Heather Boushey, a former senior economist for > the
> Joint Economic Committee; and economist Mark Zandi, who has advised > the
> Obama administration and the 2008 GOP presidential contender Sen. John
> McCain of Arizona.
>
> In January, the House Democratic Steering and Policy Committee > hosted an
> economic forum to discuss elements of an economic recovery plan to > spur job
> creation and create long-term growth.
>
> Republicans in Congress argue that despite the $787 billion stimulus
> legislation enacted in February, unemployment is nearly 10 percent, > and
> there has been no real improvement in the economy.
>
> "Given the fact that the trillion-dollar stimulus just isn't > working, why
> are Democratic leaders going back to the same ineffective partisan
> playbook?" Michael Steel, a spokesman for Minority Leader Boehner, > asked
> today. "As the American people continue to ask, 'where are the > jobs?' what
> will it take for Democrats to work with Republicans on policies that > will
> actually help small businesses and middle-class families?"
>
>
> http://www.nationaljournal.com/congressdai...091019_5795.php
>
> -----
> AGRICULTURE: MERRIGAN ASSERTS CONTROL OVER BUDGET
> By Jerry Hagstrom
>
>
> Deputy Agriculture Secretary Kathleen Merrigan is planning to continue
> running the USDA budget, despite an organizational revamp that has > placed
> the budget office under Assistant Secretary for Administration Pearlie
> Reed.
>
> "I will be running the budget process at USDA," Merrigan told
> CongressDaily Friday, adding that she had presented USDA's FY11 > budget to
> OMB and will make the presentations of future budgets.
>
> The deputy Agriculture secretary has traditionally been in charge of
> developing the budget and received reports from the budget officer. > But
> since the reorganization, which went into effect Oct. 1, farm > lobbyists
> have worried that if an official below the level of deputy secretary > made
> the presentations, USDA would be at a disadvantage.
>
> Merrigan said she has received calls from congressional offices also
> expressing concern, but added she is meeting with USDA budget analysts
> weekly. The meetings also include USDA Chief Financial Officer Evan > Segal,
> a Senate-confirmed appointee.
>
> The departmental management reorganization shows that the Office of > Budget
> and Program Analysis will report to Segal, who reports to Reed. But > USDA
> budget officer Scott Steele said today he is expecting to maintain
> "traditional communications channels and working relationships > important to
> carry out budget processes and policy."
>
> The reorganization also shows that USDA Assistant Secretary for Civil
> Rights Joe Leonard will report to Reed rather than to the secretary. A
> spokeswoman for Agriculture Secretary Vilsack said today the Office of
> Civil Rights was placed under Reed so that civil rights could be > better
> integrated with other human resources and employment offices, which > have
> also been placed under Reed.
>
> Vilsack said in February that he wanted to upgrade the position of
> assistant secretary for administration to the level of > undersecretary, in
> part to give the administration's initiative to resolve USDA's
> long-standing civil rights problems more stature. But the > spokeswoman said
> today that no action has been taken.
>
> A USDA source said today Vilsack's decision to move more offices > under the
> assistant secretary for administration came from his organizational
> experience as governor of Iowa.
>
>
> http://www.nationaljournal.com/congressdai...091019_2717.php
>
> -----
> TECHNOLOGY: COMMERCE AIDE: CYBERSECURITY BILL MOVING
> By Andrew Noyes
>
>
> Legislation to help the government and private sector better prepare > for
> and respond to high-tech attacks against communications > infrastructure has
> a shot at Senate passage this year despite the crowded calendar and
> potential turf wars, a top Senate aide said today.
>
> "Between health care, climate change and a number of huge issues of > the
> day, it can't be lost that this is a critically important issue," said
> Senate Commerce Committee General Counsel Bruce Andrews at a briefing
> sponsored by Hewlett-Packard. "We've got to focus and do it."
>
> Senate Commerce Chairman John (Jay) Rockefeller and Sen. Olympia > Snowe,
> R-Maine, introduced a broad cybersecurity bill in April, but it > underwent
> major changes during the August recess and is being fine-tuned.
>
> Andrews said Senate Homeland Security and Governmental Affairs > Committee
> leaders have been crafting proposals as Rockefeller and Snowe have > focused
> on the healthcare debate. The issue requires "real cooperation" among
> committees, he said.
>
> An August e-mail from Andrews to outside groups said the Commerce
> Committee was aiming for a hearing and a markup in September or > October.
> Some industry players were told last month that the panel hoped to
> circulate a fresh draft and vote on the bill before the end of > October. But
> Andrews said today he did not want to set arbitrary deadlines, > adding that
> Rockefeller had instructed him to "move it when we get it right."
>
> Homeland Security and Governmental Affairs ranking member Susan > Collins
> will soon unveil a measure that would give the Homeland Security
> Department, rather than a White House czar, primary authority to > protect
> federal civilian and private computer networks. Homeland Security and
> Governmental Affairs Chairman Joseph Lieberman plans to outline his > bill at
> a Chamber of Commerce speech Oct. 30, but he and Collins will likely > work
> out a compromise.
>
>
> http://www.nationaljournal.com/congressdai...091019_8318.php
>
> -----
> HOUSE RACES: EXPECTATIONS DOWNPLAYED IN N.Y. SPECIAL
> By Erin McPike
>
>
> Democrats and Republicans alike have begun to lower expectations > ahead of
> New York's Nov. 3 special House election to replace former Rep. John
> McHugh, a Republican who resigned earlier this year to become Army
> secretary.
>
> One leading question is how the Republican electorate will split its > votes
> between the National Republican Congressional Committee-backed Dede
> Scozzafava, a state assemblywoman, and Conservative Party candidate > Doug
> Hoffman, who has the support of a host of conservative groups, > including
> the Club For Growth.
>
> A House Democratic aide predicted Democratic candidate Bill Owens' > chances
> of winning stand at about 50 percent right now, while a House > Republican
> aide said although Hoffman will be a factor in the outcome, > Republicans
> still believe Scozzafava "has a chance" and that they are confident.
>
> An upstate New York Democratic source pointed out that Owens > essentially
> will have "unlimited raised funds" as he barrels toward the finish > line
> after holding three fundraisers, one each with Speaker Pelosi and > New York
> Democrats Sen. Charles Schumer and Rep. Steve Israel within the last > week,
> as well as one to come Tuesday with President Obama in New York City.
>
> "I think it's more of a referendum on the direction the Republican > Party
> wants to go," said another Democratic source, who noted that the > election
> is not about Owens and is not a referendum on the Obama > administration and
> healthcare reform.
>
> But a House Republican questioned that shift in rhetoric, noting > that just
> two weeks ago, former President Bill Clinton sent out a fundraising > appeal
> in which he directly noted the election should be a mandate for > Obama and
> health care.
>
> The shift, the Republican aide said, likely suggests that all sides > are
> aware that even if Owens does prevail, he will do so with less than 50
> percent of the vote and that because Obama won 52 percent of the > vote, that
> is hardly a mandate.
>
> Republicans also point out that Owens was originally an independent > and
> does not have all unions' backing -- some of which has gone to > Scozzafava,
> although that has hurt her on the right.
>
> They also note that Scozzafava has the biggest geographic base in the
> district, as she is from Watertown, while Hoffman and Owens are from > the
> district's outskirts.
>
> At the same time, the NRCC is aware of its own challenges, which > include
> conservative groups that are urging conservative donors not to give > their
> money to the party.
>
> When he endorsed Scozzafava earlier today, New York GOP Rep. Peter > King
> said: "Dede is the only Republican candidate in this race, and the > only
> candidate with a proven record that Republicans can trust in > Washington. A
> vote for either of her opponents is a vote for [House Speaker] Nancy > Pelosi
> and her far left, radical agenda."
>
> Scozzafava started out with some difficulty raising money, and her
> campaign is not currently on the air in the Syracuse media market. > Neither
> is the Club For Growth on behalf of Hoffman, and the last time the
> conservative organization was on the air was Tuesday. The NRCC, > however, is
> airing ads, as is Owens.
>
>
> http://www.nationaljournal.com/congressdai...091019_7269.php
>
> -----
> TELECOMMUNICATIONS: COMPANIES PLUGGING INTO DEM NETWORKS
> By David Hatch
>
>
> Well-connected Democratic aides are being scooped up by > telecommunications
> companies and associations in an apparent effort to guarantee access > to
> influential lawmakers and FCC regulators.
>
> The makeover is happening as the FCC readies a massive national > broadband
> plan to be presented to Congress in February that could have sweeping
> implications for communications providers for years, even decades. A > more
> immediate concern is the agency's plan to vote Thursday on draft
> regulations that would expand and strengthen its "network > neutrality" rules
> designed to foster an open Internet.
>
> Experts said the hiring is intended to polish tarnished images, > boost the
> standing of industries that have fallen out of favor with > regulators, or in
> the case of companies such as Google, buttress already strong party > ties.
>
> The wireless association CTIA, Comcast, the National Cable and
> Telecommunications Association and Verizon are among the players > that have
> recently bolstered their government affairs ranks with top > Democratic aides
> to telecom policy rainmakers. Notable hires include Rick Chessen, top
> adviser to Democratic FCC Commissioner Michael Copps, who joined > NCTA last
> month as senior vice president of law and regulatory policy, and Brian
> Rice, communications policy adviser for Senate Commerce Communications
> Subcommittee Chairman John Kerry, D-Mass., who became director of > federal
> regulatory affairs for Verizon in August.
>
> In other moves, Scott Bergmann, senior legal adviser to former FCC
> Commissioner Jonathan Adelstein, joined CTIA in March as assistant > vice
> president of regulatory affairs. Rudy Brioche, legal adviser on media
> issues to Adelstein, was hired by Comcast in late June as senior > director
> and policy counsel.
>
> Meanwhile, Gregg Rothschild, chief counsel and deputy chief of staff > for
> Rep. John Dingell when the Michigan Democrat led the House Energy and
> Commerce Committee, joined the Glover Park Group in January as a > lobbyist
> for Verizon, Viacom and the National Association of Broadcasters.
> Rothschild also served as Kerry's legislative director from 1996 to > 2002.
>
> Most recently, Frannie Wellings, chief telecom aide to Sen. Byron > Dorgan,
> D-N.D., a senior member of the Senate Commerce Committee, has agreed > to
> become Google's federal policy outreach manager in the next four to > six
> weeks. She is now recused from handling telecom matters.
>
> Defenders of these new executives emphasize that they are highly > talented
> individuals who can provide expertise on regulatory and strategic > matters,
> and were tapped for more than their connections. Moreover, many > government
> affairs offices around town were top-heavy with Republicans after > eight
> years of the Bush administration and needed to beef up their > Democratic
> ranks.
>
> But even their supporters acknowledged that hiring well-connected
> Democrats in an environment where the party wields total control in
> Washington is a matter of necessity if companies want their voices > heard.
>
> "They would rather have a seat at the table than be on the menu," > said an
> industry source.
>
> The spate of personnel acquisitions by the cable sector is > particularly
> noteworthy, given that operators served as a punching bag for > previous FCC
> chairman Kevin Martin, who cracked down on Comcast for impeding > Internet
> traffic.
>
> "They want to get off on the right foot with the administration," a > source
> said. "Make no mistake about it: if the pendulum swings back to the > right,
> these companies would adjust accordingly." [For a longer version of > this
> article, go to CongressDaily's Tech Central Web site at
> http://www.nationaljournal.com/congressdaily/techcentral/].
>
>
> http://www.nationaljournal.com/congressdai...091019_5767.php
>
> -----
> HILL BRIEFS: DODD UNVEILS BANK OVERDRAFT BILL
>
> Finance. Senate Banking Chairman Christopher Dodd today unveiled
> legislation that would rein in questionable overdraft fees charges > imposed
> by banks. The Dodd bill would require banks to get pre-approval from
> customers before enrolling them in overdraft programs; limit the > amount of
> fees to no more than one per month and six per year; mandate the > fees be
> proportional to the processing of the overdraft; and place better
> requirements to notify customers that their account has been > overdrawn.
> "When many can afford it least, American consumers are being hit with
> hundreds of dollars in penalties for overdrawing on their account by > just a
> few dollars. Banks should not be trying to bolster their profits at > the
> expense of their customers," said Dodd. "This legislation gives > Americans
> control over their bank accounts." Rep. Carolyn Maloney, D-N.Y., has a
> similar House bill. The legislative push has been aided by the Federal
> Reserve, which is undertaking a rule to rein in abusive and unfair
> overdraft fees. Some banks such as Bank of America and JPMorgan > Chase have
> recently taken steps on their own to limit such fees, which are > expected to
> total $38.5 billion nationally this year.
>
>
> http://www.nationaljournal.com/congressdai...091019_4276.php
>
> -----
> HILL BRIEFS: GROUPS PRESS FOR TAX CREDIT EXTENSION
>
> Taxes. Three major groups representing the housing and real estate > sectors
> wrote to administration officials today urging them to support an > extension
> and expansion of the $8,000 first-time homebuyer tax credit, set to > expire
> Nov. 30. "Our fragile economy is just beginning to show signs of > recovery.
> We should not jeopardize that recovery by letting this tax credit > expire,"
> states the letter from the Mortgage Bankers Association, National
> Association of Realtors and National Association of Home Builders. The
> letter is addressed to Treasury Secretary Geithner, HUD Secretary > Donovan,
> and National Economic Council Chairman Lawrence Summers. The groups > are
> pressing the White House and Congress to extend the credit for another
> year, while making all homebuyers eligible, increasing the credit > amount
> and making the funds available for closing costs. Lawmakers are > unlikely to
> approve the full extent of the proposal because of cost, but they > might
> extend and perhaps expand the credit. Senate Banking Chairman > Christopher
> Dodd and Sen. Johnny Isakson, R-Ga., have a plan to keep the credit at
> $8,000 for another seven months while removing the first-time buyer
> requirement and doubling the income threshold to $150,000 per person > or
> $300,000 per household before the credit phases out. Even that plan > has a
> $16.7 billion price tag, according to the Joint Committee on Taxation.
>
>
> http://www.nationaljournal.com/congressdai...091019_9526.php
>
> -----
> HILL BRIEFS: LYNCH TO ENDORSE CAPUANO'S SENATE BID
>
> Senate Races. Rep. Stephen Lynch, D-Mass., who chose not to seek the > seat
> left vacant by Democratic Sen. Edward Kennedy's death, will endorse
> Democratic Rep. Michael Capuano for the seat today. Lynch's > endorsement
> will give Capuano the backing of four members of the state's 10-member
> Democratic House delegation. On Sunday, Rep. John Tierney endorsed > Capuano,
> joining Reps. Barney Frank and James McGovern. Capuano will face > Attorney
> General Martha Coakley, Boston Celtics co-owner Stephen Pagliuca and > City
> Year co-founder Alan Khazei in the Dec. 8 primary.
>
>
> http://www.nationaljournal.com/congressdai...091019_9392.php
>
> -----
> HILL BRIEFS: JUNE RETRIAL SET FOR FORMER LOBBYIST
>
> Ethics. A federal judge today set June 21 for the retrial of a former
> lobbyist who worked for influence peddler Jack Abramoff, the > Associated
> Press reported. U.S. District Judge Ellen Segal Huvelle set the date > after
> Thursday's mistrial for Kevin Ring. The jury had deadlocked over eight
> counts. The government alleged Ring lavished thousands of dollars > worth of
> tickets and meals on Justice Department officials and employees of
> then-Reps. John Doolittle, R-Calif., and Ernest Istook, R-Okla., in > return
> for congressional appropriations and other assistance for Abramoff's
> clients. The mistrial was the biggest setback in the government's
> prosecution of cases related to Abramoff.
>
>
> http://www.nationaljournal.com/congressdai...091019_8095.php
>
> -----
> HILL BRIEFS: FORMER REP. JOHNSON DIES
>
> People. Former Rep. Jay Johnson, D-Wis., who was elected in 1996 and
> served one term in the 8th District, died Saturday at his suburban
> Washington home of an apparent heart attack, the Green Bay Press-> Gazette
> reported. Johnson, 66, was a longtime journalist before serving in > Congress
> and was defeated by GOP Rep. Mark Green in 1998. Johnson was appointed
> director of the U.S. Mint in 2000 by President Bill Clinton and > served two
> years. He later started Jay Johnson Coins and Consulting.
>
>
> http://www.nationaljournal.com/congressdai...091019_3958.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "I could go to Pakistan and start up a company in the amount of time > it's
> taking to move this bill. People are screwing around and it needs to > stop."
>
> -- Sen. Maria Cantwell, D-Wash., commenting last week on her stalled > bill
> to establish special "Reconstruction Opportunity Zones" in Pakistan > and
> Afghanistan for exports to the United States.
>
>
> http://www.nationaljournal.com/congressdai...091019_3291.php
>