CongressDaily PM for Thursday, May 28, 2009
>
> --------------------
> CONTENTS
>
> FINANCE: MCCASKILL HITS BREAKS FOR ALASKA NATIVE CORPS.
> By Dan Friedman
>
>
> Senate Homeland Security and Governmental Affairs Contracting > Oversight
> Subcommittee Chairwoman Claire McCaskill, D-Mo., is picking a fight > with
> Alaska over contracting breaks state native corporations enjoy, > setting up
> a test for a state delegation eager to show it can keep benefits long
> protected by the power of former GOP Sen. Ted Stevens.
>
> McCaskill sent letters this month to 20 Alaska Native Corporations,
> seeking information about their compensation, subsidiaries, > shareholder
> benefits, federal contract revenues and other business practices and
> scheduled a July 16 subcommittee hearing.
>
> Under a legal regime built up by Stevens-backed legislation since > 1971,
> the Alaska Native Corporations, along with native Hawaiian > organizations
> and Indian tribes, are eligible for federal contracts under the Small
> Business Administration's 8(a) development program.
>
> Unlike most other small businesses in the program, the ANCs can win > no-bid
> contracts and subcontracts from government agencies and face no > limit on
> total contract value. With those and other benefits, the ANCs have > become
> major federal contractors and cash cows for Alaska, earning $5 > billion in
> federal contracts in FY08, according to Government Executive magazine.
>
> The ANCs' benefits have been targeted for years by trade groups
> representing other small business contractors, good-government > groups and
> lawmakers, including former House Oversight and Government Reform > Chairman
> Henry Waxman.
>
> Waxman held a hearing on the ANCs in 2006 and later put provisions > into
> defense authorization bills that would have forced agencies to limit
> sole-source awards to ANCs. But Stevens and Rep. Don Young, R-> Alaska, got
> the provision removed.
>
> McCaskill said she is "skeptical of the ability to give anybody a
> noncompetitive bid with no limit. That just kind of offends me at its
> base." But she said legal changes might not be "doable now. These > guys,
> they're huge corporations; they have huge lobbying efforts under > way. I am
> already feeling the hot breath of the lobbying effort on my neck."
>
> Alaska Sens. Mark Begich, a Democrat, and Lisa Murkowski, a > Republican,
> want to show they can deliver for their constituents on the ANC > issue and
> other state matters. "I'm raring to go on it," said Begich, arguing > the
> corporations cut poverty among Alaska natives.
>
> Begich and Murkowski sent McCaskill a letter asking her to give the > ANCs
> more time to respond and each argued new program rules SBA is > developing
> should be allowed to take effect. Begich said he is eager to "talk to
> people like Senator McCaskill, who does not have the history on this."
>
> The ANC matter is just one front where Alaska is on the defensive.
> Murkowski recently announced she has won a commitment from the Obama
> administration to work with her on its proposed cut of $20 million > in the
> Denali Commission, which supports construction of health facilities in
> Alaska.
>
> Murkowski said past efforts to restore funds have been successful. But
> this is the first year Stevens will not be on the Appropriations > Committee
> to aid in that effort.
>
>
> http://www.nationaljournal.com/congressdai...090528_6075.php
>
> -----
> TAXES: FINANCIAL SERVICES GROUPS REVIVE 'CARRY-BACK' BID
> By Peter Cohn
>
>
> The financial services industry has broken its silence on being > excluded
> from a tax break for struggling businesses. In a recent letter to > Treasury
> Secretary Geithner, trade groups including the American Bankers
> Association, the Financial Services Roundtable and the Securities > Industry
> and Financial Markets Association urged him to endorse their > eligibility
> for a five-year net operating loss "carry-back" period, which > lawmakers
> have declined.
>
> "We urge you to promote NOL carry-back relief for all industries, > without
> exclusions. Making NOL carry-back relief available to all taxpayers
> represents sound policy and would best speed economic recovery," the > trade
> groups wrote in a letter dated May 20. Signatories include the > Financial
> Services Forum, the Clearing House Association and Independent > Community
> Bankers of America. The last could be crucial to the effort, as it
> represents smaller banks.
>
> The provision lets companies smooth out recent losses by converting > taxes
> paid on profits earned in better times into instant refunds. > Generally,
> companies can only carry back losses for two years while carrying them
> forward for 20, but the carry-back period is considered more valuable,
> particularly when future profits are uncertain.
>
> Big financial institutions like Bank of America, Citigroup, Wells > Fargo
> and JPMorgan Chase, which have received billions of dollars in > federal aid,
> would be barred from the benefit in five-year NOL relief legislation
> introduced in both chambers.
>
> Under the economic stimulus legislation, the only firms that are > eligible
> for the carry-back provision are those with $15 million or less in > annual
> revenues and that have not received Troubled Asset Relief Program > funds.
> The provision expires at the end of this year.
>
> The financial industry was largely quiet during that stimulus > debate. Amid
> rising anger against big banks, the lobbying was muted other than an
> abortive effort to let smaller banks benefit, industry and > congressional
> sources said at the time.
>
> In their letter last week, financial services firms said barring > them from
> the NOL language could prolong the recession. "Such an exclusion > would run
> directly counter to the goals of the administration and the TARP - > e.g.,
> facilitating the extension of credit by improving the capital > position of
> lenders - and potentially would discourage future participation in > the TARP
> and similar programs intended to help stabilize the economy," they > wrote.
>
> Since the stimulus was enacted, bills to expand the NOL provision to
> bigger companies other than TARP recipients have been introduced by > Senate
> Finance Chairman Max Baucus and House Ways and Means Select Revenue
> Measures Subcommittee Chairman Richard Neal, D-Mass.
>
> In a statement introducing his bill, Neal noted administration > officials
> have said they do not support singling out industries, a position he > agreed
> with.
>
> The administration's budget proposal, which would extend the carry-> back
> relief at a $63.5 billion cost over the next two years, is not > explicit.
> The Treasury description says only that the administration "looks > forward
> to working with the Congress to make a lengthened NOL carryback period
> available to more taxpayers."
>
> Neal said he would wait for "clear guidance" from the administration
> before changing his bill. The industry letter to Geithner notes Neal's
> statement, which he issued May 15.
>
>
> http://www.nationaljournal.com/congressdai...090528_7140.php
>
> -----
> FINANCE: GEITHNER TO FOCUS ON DEFICIT, STIMULUS IN CHINA
> By Peter Cohn
>
>
> Treasury Secretary Geithner is heading to China for meetings Monday > and
> Tuesday to discuss bilateral trade and investment, climate change and
> energy issues, and economic issues with senior officials.
>
> A senior Treasury official at a briefing today said both nations > have some
> work to do: The United States needs to bring down its huge deficits,
> estimated to reach $1.8 trillion by the end of this fiscal year, while
> continuing investments in health care, education and infrastructure to
> boost the economy.
>
> The U.S. household savings rate would likely continue to rise and > deficits
> will fall as a result of "unwinding" the temporary economic stimulus
> measures put in place in January, while financial regulatory reform > works
> its way through the system, the official said.
>
> Geithner will discuss with Chinese leaders the need for Beijing to > do more
> to stimulate domestic consumer demand.
>
> "It's very important in this context ... that we bring about stronger
> domestic demand in a variety of major countries, including China," the
> official said. "That will be a critical component to ensuring > balanced,
> sustainable growth once the recovery is firmly established."
>
> Part of the need to increase domestic demand, which the official > noted is
> occurring in part due to China's stimulus efforts, is because that
> country's economy is largely export-driven, to the detriment of U.S.
> manufacturers. That surge in exports resulted in a $270 billion trade
> deficit in goods last year with China. A key factor has been China's
> lower-valued currency, the yuan, which has been pegged to the dollar.
>
> Smaller U.S. firms disadvantaged by Chinese exports have been > clamoring
> for action from policymakers to institute trade remedies providing > relief
> to U.S. firms and penalizing China if that government does not allow > the
> yuan to float.
>
> They have met with a tepid response, despite Geithner's testimony > during
> his confirmation process that China has been manipulating its > currency. A
> Treasury report last month, required by Congress, declined to label > China a
> currency manipulator.
>
> "The only difference between the Bush administration and the Obama
> administration has been the Obama administration has actually > released the
> Treasury report on time," said Lloyd Wood, spokesman for the American
> Manufacturing Trade Action Coalition, which represents domestic > textile,
> chemical and machinery manufacturers.
>
> The senior Treasury official said maintaining a "flexible exchange > rate"
> would be part of the discussion. He declined to comment on Chinese
> officials' statements that perhaps a new international reserve > currency is
> needed to replace the dollar. But the official did note that "we > expect the
> U.S. dollar to play a very prominent role for a very long time." > Upholding
> the pledge by G-20 nations this year to oppose trade barriers would > be a
> subject of discussion, he added.
>
> Addressing reports that China's stimulus has in effect delivered
> preferential treatment to domestic firms, he said "we have been > criticized
> for our own 'Buy America' provisions" and that it would likely come > up in
> the talks.
>
>
> http://www.nationaljournal.com/congressdai...090528_8743.php
>
> -----
> OUTLOOK: TSA AUTHORIZATION, RAIL BILL AWAIT LAWMAKERS
> By Billy House and Dan Friedman
>
>
> The House will focus on legislation authorizing the Transportation
> Security Administration when lawmakers return next week from the > Memorial
> Day recess, while the Senate will work its way through lower-profile > bills
> while getting set for contentious consideration of healthcare > legislation
> and Supreme Court nominee Sonia Sotomayor in the summer.
>
> CBO estimates the TSA bill -- the first authorizing legislation for > TSA
> since the agency was created in 2001-- would require about $11.5 > billion in
> new spending through 2014. The rest of the House schedule will be
> determined Friday, a spokeswoman for House Majority Leader Hoyer said
> today.
>
> One item that might come up is a conference report on the FY09 war
> supplemental. The conference committee is expected to convene early > next
> week.
>
> Differences between the House and Senate versions include whether to > fund
> an increase in International Monetary Fund lending capacity. The > Senate
> included $5 billion for the IMF in its $91.3 billion version; the > House did
> not include any such funding in its $96.7 billion bill.
>
> The Senate is set to invoke cloture Tuesday on a bill by Sen. Herb > Kohl,
> D-Wis., to eliminate long-standing antitrust exemptions for freight
> railroad firms. Senate Majority Leader Reid has been trying since > April to
> find time for the bill, which business and consumer groups back and
> railroads oppose.
>
> Following the railroad bill, the Senate will likely take up > legislation
> giving the FDA power to regulate tobacco. Reid filed cloture motions > on
> both bills before the recess.
>
> The Senate's first action next week, after convening Monday without > votes,
> will be a vote Tuesday on the nomination of Regina McCarthy to be > assistant
> administrator of the EPA.
>
>
> http://www.nationaljournal.com/congressdai...090528_1526.php
>
> -----
> HOMELAND SECURITY: U.S. BEGINS TESTING EXIT SYSTEM AT TWO AIRPORTS
> By Chris Strohm
>
>
> The Homeland Security Department launched test programs at two > airports
> today in an attempt to verify when foreigners and legal permanent > residents
> leave the country, but federal officials remain at odds with the > airline
> industry over the effort.
>
> The objective is to develop a system in which fingerprints are > collected
> at every airport from non-U.S. citizens departing the United States. > The
> fingerprints would be used to verify that visitors have not > overstayed the
> time they are allowed to remain in the country.
>
> Congress has been demanding the implementation of such a visa-> enforcement
> process since the Sept. 11, 2001, terrorist attacks.
>
> The test programs began today at Hartsfield-Jackson Atlanta > International
> Airport and Detroit Metropolitan Wayne County Airport and will last > for 35
> days. The testing will compare the process of collecting > fingerprints at
> checkpoints operated by the Transportation Security Administration to
> having Customs and Border Protection collect fingerprints at gates.
>
> But what is missing is a test to determine the feasibility of having > the
> airlines, as opposed to the government, collect the fingerprints. > Congress
> asked for such a test in its report accompanying the FY09 Homeland > Security
> appropriations bill.
>
> Officials from the airline industry and the department dispute each
> other's account of why the airline test is not being done.
>
> "We can say with complete confidence that since Congress called for > the
> trials late last year, DHS has never contacted us to cooperate on an
> airline test," said Steve Lott, spokesman for the International Air
> Transport Association. "It's not that we are resisting help. > Frankly, they
> haven't asked us yet. Why not? I don't know."
>
> But Robert Mocny, director of the program, known as US-VISIT, said the
> airlines refused to participate in the test program.
>
> "We've been reaching out to them for months and they have completely
> refused," Mocny said. "They have a very concerted effort to not
> participate."
>
> Victoria Day, spokeswoman for the Air Transport Association, said her
> group has had conversations with the department, "but nothing has > emerged
> from them."
>
> But Mocny said he ultimately expects a compromise to be reached under
> which the airlines participate in the final version of an exit > verification
> system.
>
> Aides for congressional appropriators acknowledged today the airline > test
> program is missing from current department plans. But they said the > most
> important thing is getting the results of the test programs now > getting
> under way.
>
> "The bottom line ... is that the [pilot programs] are going forward > where
> we're seeing how an exit system could be implemented at the gate and > at the
> checkpoint," one aide said.
>
> Aides also said they expect the government and airlines to reach a
> compromise.
>
> The department did not seek any funding in its FY10 budget request > to move
> forward with an air exit system. But one aide said the test results > will be
> known by the time the House and Senate begin to reconcile their FY10
> Homeland Security spending bills, and adding money for an air exit > system
> will likely be part of conference negotiations.
>
>
> http://www.nationaljournal.com/congressdai...090528_3671.php
>
> -----
> TELECOMMUNICATIONS: GOP SENATORS QUERY NOMINEE ON BROADBAND
> By David Hatch
>
>
> Eight Republican senators have sought to clarify the views of Larry
> Strickling, President Obama's choice to run the National > Telecommunications
> and Information Administration, in a detailed questionnaire that > could hint
> at why his confirmation has stalled.
>
> A Commerce Department agency, NTIA is playing a critical role in > assisting
> the June 12 transition to digital television signals and helping > distribute
> $7.2 billion in broadband stimulus funding.
>
> Strickling appeared to face smooth sailing at his May 19 nomination
> hearing when Senate Commerce ranking member Kay Bailey Hutchison > said there
> were no objections from the panel's Republicans. The next day, Senate
> Commerce Chairman John (Jay) Rockefeller called for a speedy > confirmation
> as his committee approved Strickling's nomination.
>
> But when Senate Majority Leader Reid ran a "hotline" a week ago to > gauge
> whether Strickling could be confirmed by unanimous consent, he met
> Republican resistance, sources said. By contrast, Aneesh Chopra > received
> quick Senate approval that day as the first federal chief technology
> officer after testifying alongside Strickling.
>
> Hutchison, whose office said she is not holding up the nominee, is > among
> the senators who submitted 25 detailed questions on a range of > subjects.
> The 13-page "Post Hearing Questions for the Record," obtained by
> CongressDaily, focused on the Broadband Technology Opportunity > Program,
> created by Obama's economic stimulus package.
>
> Regarding the $4.7 billion worth of broadband grants that Strickling > would
> oversee, Hutchison asserted that "NTIA's primary focus must be on > unserved
> communities" in a question about how such areas would benefit. > Strickling's
> reply carefully sidestepped the assertion.
>
> Responding to a question from Sen. John Thune, R-S.D., Strickling > provided
> insight into the government's approach to defining "unserved" versus
> "underserved" households -- the two main categories to receive > assistance.
> Strickling describes unserved areas as "likely to be those places > where
> households and businesses lack access to Internet service at > appropriate
> speed levels."
>
> That description provided more wiggle room for distributing funds > than the
> definition some Republicans prefer: that unserved areas are those > lacking
> broadband, other than satellite service, which can be costly, > requires a
> dish and has technical limitations. Strickling also told Thune that > the
> earliest NTIA can begin doling out broadband stimulus money is this > fall.
>
> Strickling was particularly cautious in answering queries about the
> regulatory conditions that Congress imposed on grant recipients. > Sen. John
> Ensign, R-Nev., ranking member on the Senate Commerce Communications
> Subcommittee, asked whether Strickling shared the concern that > burdensome
> restrictions would dissuade companies from applying. Strickling > avoided
> that controversy, instead providing a benign summary of the > conditions and
> the public comment process.
>
> Sens. Sam Brownback, R-Kan., Jim DeMint, R-S.C., and Johnny Isakson,
> R-Ga., posed additional questions about broadband, while Sens. David
> Vitter, R-La., and Olympia Snowe, R-Maine, asked about cybersecurity.
> Snowe, whose office said is not stalling the nomination, also queried
> Strickling on spectrum management. Aides in the other offices were not
> available for comment.
>
>
> http://www.nationaljournal.com/congressdai...090528_3627.php
>
> -----
> TECHNOLOGY: AIDE: SENATE PANEL WEIGHS PRIVACY ACT UPDATE
> By Andrew Noyes
>
>
> The Senate Homeland Security and Governmental Affairs Committee is
> exploring potential updates to the 35-year-old Privacy Act and could
> advance legislation this Congress, a top panel aide said today.
>
> Evan Cash, who works for Sen. Daniel Akaka, D-Hawaii, told an > audience at
> a Center for Democracy and Technology briefing the senator intends to
> introduce a bill to bring the law up to speed with modern > technologies and
> information systems. Akaka chairs the panel's Oversight of Government
> Management Subcommittee.
>
> Staffers crafting the measure will build on recent GAO studies and
> recommendations released Wednesday in a new report by the Information
> Security and Privacy Advisory Board, a federal panel that advises the
> National Institute of Standards and Technology, OMB and the Commerce
> Department.
>
> Cash cited a suggestion to expand the definition of "system of > records" to
> encompass relational and distributed systems based on government use > of
> records, not just its possession of them.
>
> Under current law, privacy protections only apply to databases where
> records are regularly located by a unique identifier, such as a name > or
> government ID number. Cash said his office has been looking at the > amount
> of information collected by agencies and how it is being utilized in > the
> context of "routine use" -- a justification for data gathering that > "has
> been really blurred."
>
> The role of federal chief privacy officers will factor prominently > in the
> forthcoming bill, Cash added. The ISPAB report calls for the hiring > of CPOs
> at all major agencies and the creation of a Chief Privacy Officers'
> Council, much like the existing Chief Information Officers' Council > that is
> chaired by OMB's e-government and IT administrator.
>
> Cash lauded the proposal by ISPAB as well as a GAO proposal that a
> Privacy.gov Web site be created so that visitors could more easily > find and
> search systems of records and privacy-impact assessments for > government
> projects.
>
> At the same event, Homeland Security Chief Privacy Officer Mary Ellen
> Callahan said she is "cautiously optimistic" OMB will act on ISPAB's
> recommendations. She noted a CIO Council privacy subgroup, which she
> co-chairs, has been effective at addressing cross-cutting privacy > issues.
> Making it a stand-alone council is a good goal, she added.
>
>
> http://www.nationaljournal.com/congressdai...090528_8694.php
>
> -----
> TECHNOLOGY: CYBERSECURITY REPORT SAID TO OFFER FEW DETAILS
> By Andrew Noyes
>
>
> The Obama administration's release Friday of a report on the state > of the
> federal government's cybersecurity posture will not offer specific
> recommendations for action, sources who reviewed the document said > today.
>
> The paper will call for the creation of a cybersecurity coordinator > who
> would be housed in the National Security Council but report to the > National
> Economic Council, they said. The report does not state how senior the
> individual will be within the White House or to whom the official > would
> report.
>
> The roughly 40-page document emphasizes the importance of building
> public-private partnerships to safeguard communications networks and
> creating incentives for threat information-sharing between > government and
> industry entities, sources said.
>
> The report includes language intended to sharpen the government's IT
> procurement processes to drive greater security; underscores the > need for
> more federal cybersecurity research and development; and calls for the
> cultivation of a highly skilled cybersecurity workforce in and > outside of
> government.
>
> The report lacks any mandates for heavy-handed Internet regulation, > but it
> states the government has the ultimate responsibility to protect all > IT
> networks, sources said. That vague language should satisfy technology
> watchdogs who worry the administration might take a cue from sweeping
> cybersecurity legislation introduced this year by Senate Commerce > Chairman
> John (Jay) Rockefeller and Sen. Olympia Snowe, R-Maine. Some groups > claimed
> the bill would give the president the power to shut down the > Internet in
> the event of a large-scale cyber attack.
>
> "It's largely a statement of principles and goals, not a full plan," > one
> source said. "The report has some really tough talk about dangers > faced on
> the Internet but its recommendations are very general."
>
> Releasing such high-level language will likely lead to internal > squabbles
> as administration officials begin the implementation phase, another > source
> said. "Every one of these recommendations will have to be unpacked, > and
> that's where the rubber will hit the road."
>
>
> http://www.nationaljournal.com/congressdai...090528_1113.php
>
> -----
> HILL BRIEFS: LEVIN PUTS HOLD ON STATE DEPARTMENT NOMINEE
>
> Foreign Affairs. A dispute over compensation to a Michigan victim of
> Libya-sponsored terrorism has prompted Sen. Carl Levin, D-Mich., to > place a
> hold on the nomination of Jeffrey Feltman as assistant secretary of > state
> for Near Eastern affairs, a spokeswoman confirmed Wednesday to the > Detroit
> News. At issue is whether a Michigan resident whom Levin's office > would not
> identify is eligible for compensation under a $1.5 billion > settlement with
> the Libyan government. That settlement created a State Department-> run fund
> to compensate victims of the 1988 downing of a Pan Am airliner over
> Scotland and attacks on a Berlin disco and the Rome and Vienna > airports in
> the 1980s. In return, several lawsuits filed in U.S. courts against > Libya
> were dismissed. Levin's office said the individual in question was > not a
> U.S. citizen at the time of the attacks and the fund will only > compensate
> American citizens.
>
>
> http://www.nationaljournal.com/congressdai...090528_6052.php
>
> -----
> HILL BRIEFS: SENATE PANEL QUESTIONS TWO FIRMS ON CHARGES
>
> Technology. The Senate Commerce Committee has launched an > investigation
> into certain electronic commerce marketing practices that generate
> thousands of mysterious monthly charges to consumer credit cards, > the panel
> said today in a statement. The source of the fees appears to be a > group of
> marketing firms that acquire consumers' billing information through
> arrangements with popular online retailers such as movie ticket seller
> Fandango.com and travel booking site Orbitz.com. Senate Commerce > Chairman
> John (Jay) Rockefeller sent letters to two leading "post-transaction"
> marketing firms, Vertrue Inc. and Webloyalty.com, to get details > about the
> controversial practice. Rockefeller said thousands of complaints > have been
> logged about the activity. An FTC spokeswoman said it has filed cases
> against firms who have engaged in similar behavior.
>
>
> http://www.nationaljournal.com/congressdai...090528_4467.php
>
> -----
> HILL BRIEFS: BONDHOLDERS AGREE TO HIGHER STAKE IN GM
>
> Transportation. Treasury Department officials won the support of a key
> group of General Motors Corp. bondholders today after they agreed to > allow
> bondholders to increase their ownership stake in the company -- a > move that
> should shorten and smooth GM's stay in bankruptcy court, the Detroit > News
> reported. GM bondholders could own roughly 25 percent of the > recapitalized
> GM, up from 10 percent under an offer that was overwhelmingly rejected
> Tuesday. Shareholders will receive little or nothing under the plan. > "This
> agreement represents another important step in GM's restructuring > process,"
> the administration said in a statement. "The [auto] task force will
> continue its efforts to help ensure that GM emerges from this > restructuring
> process as a strong, viable company that can operate independent of
> government support." Bondholders have until 5 p.m. Saturday to submit
> statements of support for the exchange, but GM is still likely to > enter
> bankruptcy by Monday while announcing cuts in salaried employees and
> identifying 14 plans it wants to close by the end of 2010.
>
>
> http://www.nationaljournal.com/congressdai...090528_1585.php
>
> -----
> HILL BRIEFS: BYRD STILL HOSPITALIZED, BUT IMPROVING
>
> People. Sen. Robert Byrd, D-W.Va., is still hospitalized, although a
> spokesman said he is "much improved." Byrd was hospitalized May 15 > with a
> fever caused by a minor infection. The most recent update on Byrd's > health
> came Tuesday, and his office said no new updates are expected. Byrd > was
> originally expected to be released from the hospital within a few > days, but
> his office says the extended hospital stay is the result of extra > caution.
>
>
> http://www.nationaljournal.com/congressdai...090528_3796.php
>
> -----
> HILL BRIEFS: OBAMA: NOW OR NEVER FOR HEALTHCARE REFORM
>
> Health. It is now or never for healthcare reform, President Obama said
> today on a phone call with supporters while flying back from a West > Coast
> fundraising trip. He urged volunteers to pressure lawmakers to > support the
> White House's goal of overhauling health care because if it does not > pass
> this year, it may never happen. Obama's political organization, > Organizing
> for America, plans a nationwide June 6 kickoff to pressure lawmakers > and
> demonstrate support for the White House goal.
>
>
> http://www.nationaljournal.com/congressdai...090528_9012.php
>
> -----
> POLITICAL ROUNDUP: NRCC HITS DEMS FOR BACKING PELOSI
>
> National. The National Republican Congressional Committee is trying > for
> the third straight cycle to bring down Democratic House members by > tying
> them to Speaker Pelosi. Starting today, the NRCC is running a > television ad
> against freshman Rep. Frank Kratovil of Maryland and radio ads > against six
> other Democrats. The lawmakers are accused of voting last week "to > protect
> Nancy Pelosi from an investigation into her serious allegations that > the
> CIA lied to Congress." The television ad includes footage of a > recent news
> conference in which Pelosi said the CIA misleads Congress "all the > time."
> The radio ads are running against Reps. Vic Snyder of Arkansas, > Suzanne
> Kosmas of Florida, Harry Teague of New Mexico, Stephanie Herseth > Sandlin of
> South Dakota and Glenn Nye and Tom Perriello of Virginia.
>
>
> http://www.nationaljournal.com/congressdai...090528_9979.php
>
> -----
> POLITICAL ROUNDUP: NODLER ENTERS RACE FOR BLUNT SEAT
>
> Missouri. Republican state Sen. Gary Nodler today officially entered > an
> already crowded race to succeed GOP Rep. Roy Blunt, who is leaving > to run
> for the seat of retiring GOP Sen. Christopher (Kit) Bond, the > Springfield
> News-Leader reported. "We need a candidate that not only reflects > our moral
> values, but also understands our economic and global challenges," said
> Nodler. He joins state Sen. Jack Goodman, Springfield auctioneer Billy
> Long, Greene County Prosecutor Darrell Moore and Ozarks Technical > Community
> College instructor Jeff Wisdom in the race for the heavily > Republican 7th
> District in southwest Missouri that the GOP has held without a break > since
> 1960. Currently chairman of the state Senate Appropriations Committee,
> Nodler also served as an assistant to the late GOP Rep. Gene Taylor > and
> lost the 1996 Republican primary to Blunt. Hal Donaldson, the > founder of
> religious aid organization Convoy for Hope, has formed an exploratory
> committee, while Nixa alderman Kevin Elmer and Jasper County > Republican
> Party Chairman John Putnam have expressed interest.
>
>
> http://www.nationaljournal.com/congressdai...090528_3925.php
>
> -----
> POLITICAL ROUNDUP: KASICH TO ANNOUNCE GUBERNATORIAL BID
>
> Ohio. Former Rep. John Kasich, R-Ohio, will announce his 2010 bid for
> governor Monday in Westerville, his hometown, the Associated Press
> reported. Kasich, who served in Congress from 1982-2000, has been > speaking
> to Republican groups around the state for the last six months. > Democratic
> Gov. Ted Strickland, another former member of Congress, is expected > to seek
> re-election.
>
>
> http://www.nationaljournal.com/congressdai...090528_6749.php
>
> -----
> POLITICAL ROUNDUP: TOOMEY GAINS GROUND ON SPECTER, POLL FINDS
>
> Pennsylvania. Former GOP Rep. Pat Toomey has gained ground on > Democratic
> Sen. Arlen Specter, according to a Quinnipiac University poll released
> today. Specter leads Toomey 46-37 percent in a hypothetical general
> election matchup. Specter held a 53-33 percent edge over Toomey in a
> similar May 4 poll. Specter has a 45-36 percent lead over GOP Rep. Jim
> Gerlach, who says he is considering a bid. In the Democratic primary,
> Specter has a 50-21 percent lead over Rep. Joe Sestak, who said > Wednesday
> he planned to challenge Specter. Toomey leads the pack in the GOP > primary
> with 38 percent of the vote, followed by Gerlach with 10 percent and 3
> percent for conservative activist Peg Luksik. The poll of 1,191 > voters was
> conducted last Wednesday through Tuesday and has a 2.8-point error > margin.
> The subsample of 517 Republicans has a 4.3-point error margin, while > the
> subsample of 561 Democrats has a 4.1-point error margin.
>
>
> http://www.nationaljournal.com/congressdai...090528_8040.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "We're the most beautiful state, the most dynamic state, the most
> cutting-edge state, the most diverse state. ... We're just about $20
> billion short."
>
> -- Sen. Barbara Boxer, D-Calif., on MSNBC's "Morning Joe" today,
> commenting on her state's fiscal crisis.
>
>
> http://www.nationaljournal.com/congressdai...090528_5687.php

> CongressDaily PM for Friday, May 29, 2009
>
> --------------------
> CONTENTS
>
> HOMELAND SECURITY: OBAMA SAYS HE WILL HANDPICK CYBER CZAR
> By George E. Condon Jr., with Andrew Noyes contributing
>
>
> President Obama today announced he will handpick a White House cyber > czar
> to coordinate and unify the U.S. response to attacks on computers and
> information technology that he called "one of the most serious > economic and
> national security challenges we face as a nation."
>
> The East Room announcement came after a 60-day assessment of how the
> government responds to cyberattacks. "Millions of Americans have been
> victimized, their privacy violated, their identities stolen, their > lives
> upended and their wallets emptied," Obama said. He estimated > Americans have
> lost more than $8 billion to cyber crimes in the last two years.
>
> "No single official oversees cybersecurity policy across the federal
> government, and no single agency has the responsibility or authority > to
> match the scope and scale of the challenge," he said. Federal agencies
> "have overlapping missions and don't coordinate and communicate > nearly as
> well as they should, with each other or with the private sector."
>
> It will be up to his cybersecurity coordinator to unify the national
> effort. "From now on, our digital infrastructure -- the networks and
> computers we depend on every day -- will be treated as they should > be: as a
> strategic national asset. Protecting this infrastructure will be a > national
> security priority. We will ensure that these networks are secure,
> trustworthy and resilient. We will deter, prevent, detect and defend
> against attacks, and recover quickly from any disruptions or > damage," Obama
> said.
>
> Initial congressional reaction to Obama's plan was positive. "In > dealing
> with cybersecurity, the details will prove to be very important," > House
> Intelligence Chairman Silvestre Reyes said.
>
> Rep. Jim Langevin, D-R.I., co-chairman of the House Cybersecurity > Caucus,
> called the report "a good starting point for the work that lies > ahead" and
> said he was particularly pleased to hear Obama refer to the cyber
> infrastructure as a "strategic national asset."
>
> Former Senate Intelligence Chairman John (Jay) Rockefeller and Sen.
> Olympia Snowe, R-Maine, released a joint statement urging Obama to > give his
> cyber czar "the heft and authority the position requires. We need to > act
> now -- the time to combat cyber terror was yesterday."
>
> The president said the coordinator would be a member of the National
> Security Council and the National Economic Council.
>
> Obama stressed that the job would not involve government monitoring of
> private networks or the Internet. He noted that the stakes were > high. "In
> today's world, acts of terror could come not only from a few > extremists in
> suicide vests but from a few key strokes on the computer -- a weapon > of
> mass disruption."
>
>
> http://www.nationaljournal.com/congressdai...090529_1260.php
>
> -----
> DEFENSE: FEDS SERVE SUBPOENAS TO VISCLOSKY OFFICES, AIDES
> By Carrie Dann
>
>
> Federal investigators have subpoenaed the offices of Rep. Peter > Visclosky,
> D-Ind., as part of a continuing probe of the PMA Group, a defense > lobbying
> firm that was disbanded early this year after its Virginia > headquarters was
> raided by the FBI in November.
>
> Law enforcement officials are seeking documents from Visclosky's > campaign
> committees and congressional offices. They have also subpoenaed some
> members of the Indiana lawmaker's staff, according to a statement > issued by
> Visclosky today.
>
> Visclosky pledged in his statement to cooperate with federal
> investigators.
>
> "I am confident that, at the end of this process, no one will conclude
> that I have done anything wrong or harmed my constituents in any > way," he
> said.
>
> The lawmaker has retained lawyers to review his compliance with > federal
> campaign finance laws. FEC records show he received during the last
> election cycle more than $350,000 from PMA lobbyists, one of whom once
> served as his chief of staff.
>
> At least part of the federal probe of PMA is said to be examining > the use
> of phony "associates" of PMA as contributors to the campaigns of > several
> House lawmakers, many of them members of the House Defense > Appropriations
> Subcommittee.
>
> As a member of that subcommittee, Visclosky succeeded in adding
> significant amounts in earmarks to Defense spending bills that > benefited
> PMA clients.
>
> Meanwhile, a Pennsylvania defense contractor to whom House Defense
> Appropriations Subcommittee Chairman John Murtha, D-Pa., has directed
> millions of dollars in congressional earmarks has been blocked from > doing
> business with the Navy amid allegations of fraud, the Associated Press
> reported today.
>
> Word of the suspension of Kuchera Defense Systems Inc., which has > given
> Murtha's campaigns more than $60,000 since 2002, came during an annual
> defense contractor show in Johnstown, Pa., in the heart of his > district.
>
> During a brief news conference, Murtha turned aside questions about
> Kuchera's suspension, which has benefited from $14.7 million in Murtha
> earmarks over the past two years.
>
> "What's that got to do with me? What do you think, I'm supposed to > oversee
> these companies? That's not my job. That's the Defense Department's > job,"
> said Murtha.
>
> At the Pentagon, a Navy spokesman said Kuchera was suspended in late > April
> for "alleged fraud, including multiple incidents of cost mischarging,
> defective pricing and ethical violations." An attorney representing > Kuchera
> said the firm would appeal.
>
>
> http://www.nationaljournal.com/congressdai...090529_6138.php
>
> -----
> TRADE: VIETNAM RAISES CONCERNS ON CLASSIFYING CATFISH
> By Peter Cohn
>
>
> The Vietnamese government has formally made its concerns known to
> lawmakers about a potential Agriculture Department regulation that > could
> put one of that nation's top exports at risk.
>
> In a letter to Senate Agriculture Chairman Tom Harkin, Le Cong Phung,
> Vietnam's ambassador to the United States, urged him to persuade the
> department not to define "catfish" in a broad manner that would > sweep in
> Vietnamese Pangasius fish, which is a different species.
>
> Doing so would subject Vietnamese producers to stringent overseas
> inspections they argue would cripple their ability to export to the > United
> States. The letter follows a visit last month by Vietnam's agriculture
> minister, who met with Agriculture Secretary Vilsack and Trade
> Representative Kirk, among others.
>
> "We are deeply concerned that a USDA decision to include pangasius > in its
> definition of 'catfish' would not only endanger the opportunity for > normal
> employment of our farmers and workers but also significantly impact > the
> bilateral relations between Vietnam and the United States, and put > into
> question the U.S. [World Trade Organization] commitments," Phung > wrote in a
> letter dated May 15. "I do hope that you will look into the matter > and make
> a just decision for the sake of our bilateral ties."
>
> Domestic seafood processors and retailers also oppose the potential > USDA
> move, arguing it could eliminate one of their top-selling items.
>
> At issue is a provision inserted in the 2008 farm bill at the behest > of
> Mississippi River catfish producers that would give the Food Safety > and
> Inspection Service the ability to inspect catfish like it does beef, > pork
> and poultry.
>
> The bill left it up to the agency to define catfish, but the intent > was
> clear, as Southern lawmakers and their catfish-farming constituents > have
> complained for years about unfair competition from countries like > China and
> Vietnam.
>
> The Commerce Department imposed anti-dumping duties in 2003 that are > up
> for review this year. In the 2002 farm bill, the U.S. industry > obtained a
> requirement that catfish be clearly labeled with their country of > origin,
> in part to prevent Vietnamese Pangasius from being labeled as catfish.
>
> Phung said the latest proposal would be a reversal in policy that > "appears
> to developing nations hypocritical and contrary to the new direction > we all
> seek from the U.S."
>
> The importance of Phung's reference to "bilateral ties" is not lost on
> Harkin, who represents Iowa soybean and beef exporters who have a > growing
> market in Vietnam.
>
> A spokeswoman for the National Cattlemen's Beef Association could not
> comment on the catfish issue, but noted the United States last year > had
> $131 million in beef exports to that country.
>
> "In general, as we work to expand market access for U.S. beef, > especially
> in Asia, it's important that we ensure science-based standards for
> international trade," she said.
>
> "The senator has received the letter," a spokesman said. "The new
> regulations referred to in the letter have not yet been issued by > the USDA,
> but when they are made public the chairman will certainly review > them."
>
> FSIS spokesman Brian Mabry said the agency is still developing a > proposed
> regulation that it expects to publish late this year.
>
>
> http://www.nationaljournal.com/congressdai...090529_6643.php
>
> -----
> FINANCE: ABA SUGGESTS COUNCIL, NOT SUPER-REGULATOR
> By Bill Swindell
>
>
> The American Bankers Association is calling for a council of > regulators to
> monitor the financial services spectrum rather than a super-> regulator with
> the power to intervene to prevent the collapse of firms that could > send
> shockwaves across the U.S. economy.
>
> In a Thursday letter to Treasury Secretary Geithner, the banking lobby
> outlined how policymakers should revamp the nation's financial > regulatory
> system in the aftermath of the collapse of Wall Street firms that > led to
> the bailout of several large banks and insurance conglomerate American
> International Group.
>
> The ABA said the council should be led by the Federal Reserve > chairman and
> should not be a committee, but rather a stand-alone agency with a > small
> staff, which would be in charge of monitoring all markets to ensure > that
> any one firm's failure would not send the economy into a tailspin.
>
> The group also called for broader regulation of industries such as > hedge
> funds, mortgage brokers and derivatives. It called for an agency to > be able
> to take control and unwind assets of troubled nonbank firms -- like > AIG --
> similar to what the FDIC does for banks.
>
> But it opposes the FDIC having such authority because it could erode
> consumer confidence in its main mission to insure bank deposits.
>
> "Furthermore, banks, which have to pay all the costs of the FDIC, > should
> not pick up the tab to run an infrastructure created to deal with > future
> non-bank resolutions," wrote ABA President Edward Yingling.
>
> The group expressed its opposition to a proposed Consumer Financial
> Products Safety Commission, which is proposed by key Democrats such as
> Senate Majority Whip Durbin and Sen. Charles Schumer, D-N.Y., and > another
> idea purportedly considered by the Obama administration to create a > single
> regulator for banks.
>
> That latter approach would merge the Office of the Comptroller of the
> Currency, the Office of Thrift Supervision and some regulatory > functions of
> the FDIC and the Fed.
>
> The ABA said the single regulator proposal would, in effect, end the
> dual-banking system where banks can choose to be either regulated at > the
> federal level or by states where they operate.
>
>
> http://www.nationaljournal.com/congressdai...090529_3705.php
>
> -----
> DEFENSE: ARMY TO PURSUE SEVERAL MODERNIZATION PROGRAMS
> By Megan Scully
>
>
> In reworking its modernization plan after the demise of the ground > vehicle
> portion of its problem-plagued Future Combat Systems, the Army > supports
> breaking the massive program into several pieces, Army Chief of Staff
> George Casey disclosed Thursday.
>
> "We're not going to have another program where we bundle everything > into
> one package," Casey told reporters after a speech at the Center for
> Strategic and International Studies. "I don't know what it's going > to cost,
> but we're not going to come up with another program, frankly, that's > just a
> big target."
>
> After launching FCS nearly a decade ago -- an ambitious program whose
> price tag swelled to $160 billion, the Army argued that it needed to > be
> managed as a single program to ensure coordinated development of its > manned
> and unmanned vehicles and sensors, as well as the intricate electronic
> network that would link the various components together.
>
> But last month, Defense Secretary Gates dealt the program a > crippling blow
> when he announced plans to cancel the family of manned ground > vehicles that
> formed the foundation for FCS. Gates said he was concerned the Army > had not
> adequately incorporated lessons learned from Iraq and Afghanistan in > the
> vehicles' design.
>
> While Gates has said he is committed to pursuing new combat vehicles > for
> the Army, his decision has forced the Army back to the drawing board.
>
> The four-star general acknowledged the Army had done a poor job > explaining
> FCS, the most expensive and ambitious undertaking in the service's > history,
> and never succeeded in building a broad constituency on Capitol Hill > in
> support of FCS, in part because lawmakers had difficulty grasping the
> concept.
>
> "Frankly, we designed a program that was really very good but we > could not
> explain it," Casey said. "We spent more time explaining the program to
> people unsuccessfully than we did actually working on the program. > In the
> end that doesn't help. Whatever we come up with is going to be > simpler."
>
> Ashton Carter, the Pentagon's recently installed top weapons buyer, is
> expected to sign an acquisition decision memorandum for FCS in the > next
> several weeks, formally killing the eight types of manned ground > vehicles
> and separating the program into discrete pieces.
>
> The memo will be the "start of the process" of redefining FCS, Casey > said.
> The Army then will work with contractors to break up the program, > Casey
> said.
>
> Army leaders plan to have a new design for the manned ground > vehicles by
> Labor Day, in the hopes of fielding the vehicles in five to seven > years.
>
> Boeing Co. and Science Applications International Corp. led the FCS > effort
> as the so-called lead systems integrator, although it is unclear > what their
> role will be in the future. Gates has said the contract was "not as > good a
> contract as we could have, in terms of how we spend our money."
>
> Casey said he does not yet know whether the Army will pursue another
> family of vehicles or simply develop a replacement for the Bradley > Fighting
> Vehicle, the workhorse of the mechanized infantry that entered the > field
> more than 25 years ago.
>
> Casey also said he did not know whether the vehicles would be > wheeled or
> tracked, or what the cost would be. The price tag on the FCS manned > ground
> vehicles, which were intended to roll on hard rubber-band tracks, was
> expected to be $87 billion, more than half the total cost of the > program.
>
>
> http://www.nationaljournal.com/congressdai...090529_7206.php
>
> -----
> SENATE RACES: EFFORT TO CLEAR N.Y. DEM FIELD AIDS GILLIBRAND
> By Dan Friedman
>
>
> A few weeks after Sen. Kirsten Gillibrand, D-N.Y., looked poised to > face a
> bruising primary challenge from one or more downstate rivals, the > Senate
> appointee's path to election in 2010 is easing as powerful players > work to
> clear the field.
>
> Following pressure from the White House and Sen. Charles Schumer, D-> N.Y.,
> Gillibrand's best-financed potential Democratic challenger, Rep. Steve
> Israel, D-N.Y., dropped plans to seek the seat.
>
> Gillibrand's backers have since overseen a drumbeat of endorsements > from
> prominent New York lawmakers, particularly those representing New > York City
> constituencies with whom Gillibrand needs help.
>
> Rep. Edolphus Towns, a Brooklyn Democrat, "is planning to endorse
> [Gillibrand] in coming weeks," a spokeswoman said, and a Democratic > source
> said Rep. Nydia Velazquez, D-N.Y. also is likely to endorse the > senator,
> although a spokeswoman declined to confirm Velazquez's plans.
>
> Gillibrand has also announced endorsements from New York Democratic > Reps.
> Nita Lowey, Yvette Clarke, Michael McMahon, Brian Higgins, Maurice > Hinchey,
> John Hall, Michael Acuri and Scott Murphy.
>
> Notably absent from the endorsement parade are Reps. Carolyn > Maloney, Jose
> Serrano and Carolyn McCarthy and a handful of other high-profile > Democratic
> House members who have not masked hostility to Gillibrand.
>
> Maloney and Serrano have said they are mulling challenges to > Gillibrand,
> while McCarthy, a gun-control advocate angered by Gillibrand's past
> opposition to gun laws and recent reversal on the issue, has said > she will
> challenge Gillibrand if no one else does.
>
> But chances of a serious challenge are falling fast, New York > political
> operatives said. Taking note of the heavy pressure put on Israel, > the only
> potential candidate who did serious fundraising for a Senate run, > pragmatic
> politicians like Serrano and Maloney are unlikely to risk powerful
> subcommittee chairmanships for an uphill fight that Schumer, the White
> House and Gov. David Paterson would likely oppose, said New York > Democratic
> political consultant Hank Sheinkopf.
>
> The public way in which Israel was pushed aside is "the kind of lesson
> that is not lost on people, because rational people value incumbency > more,"
> Sheinkopf said. "What it will do, it will scare people out of > running."
> While she might run, with opposition from the New York Democratic
> establishment, McCarthy, never a strong fundraiser, will be unable > to win
> serious financial support, Sheinkopf said.
>
> But while the aggressive tactics used to clear the field for > Gillibrand
> might succeed - a result that would boost the perception that > Schumer can
> enforce his decisions -- they have angered some of New York City's
> political establishment. Some feel they are being bullied into > backing an
> unelected candidate whose views are well to their right. "It's boss > rule,"
> said one Democratic source. "She's out of sync with the electorate > on most
> issues. It's a disgrace."
>
>
> http://www.nationaljournal.com/congressdai...090529_5195.php
>
> -----
> HOUSE ADMINISTRATION: COUNSEL'S OFFICE FLOODED WITH OUTSIDE BILLS
> By Billy House
>
>
> The office that helps House members write thousands of bills each > year is
> being inundated by requests to review and rewrite drafts prepared for
> lawmakers by lobbyists and interest groups.
>
> "It is clear that the number of outside groups striving to design and
> control the details of legislative language is growing," M. Pope > Barrow,
> legislative counsel for the House, told the Legislative Branch
> Appropriations Subcommittee earlier this month. It is also evident, he
> added, that members are asking for more bills that will not receive > serious
> consideration but will allow them "to stake out a position or for some
> other reason."
>
> Barrow's testimony underscored the growing demands on an office that > has
> been providing neutral drafting assistance to lawmakers for more > than 90
> years. The office has 42 attorneys.
>
> According to Barrow, the office completed 25,096 final drafts in > 2007 and
> 14,436 in 2008 for a total during the 110th Congress of 39,532. Of > that
> total, 20,817 final drafts were bills, 15,568 were amendments and > 3,147
> were resolutions.
>
> The average number of requests in 2008 for assistance from a single > House
> member was 36. However, some individual members were especially > heavy users
> of the office. One member had 147 bills drafted, another 127.
>
> By the end of the first quarter of this year, Barrow said his office > had
> already completed 4,785 bills, 2,024 amendments, and 719 resolutions.
>
> "We are already on a pace this session that will probably surpass the
> numbers from the 110th session of Congress," he said. "The pace has > picked
> up so much, in fact, that we are now beginning to receive requests for
> amendments to bills that are not yet in existence and requests for > bills
> amending laws that have not yet been enacted."
>
> The influx of bills from outside groups is slowing the process. > "Often it
> takes twice as long to review, analyze, and rebuild an existing draft
> prepared by outside groups as it would to draft the bill from scratch
> because in the former cases, we first need to unearth the policy > within
> language that may not be totally coherent, and then start over from > there,"
> he said.
>
>
> http://www.nationaljournal.com/congressdai...090529_2406.php
>
> -----
> ENERGY: SENSENBRENNER SOUNDS WARNING ON CLIMATE CHANGE
>
> House Speaker Pelosi and Global Warming Chairman Edward Markey said > late
> Thursday night they were encouraged that China will play a > constructive
> role in upcoming climate change talks in Copenhagen, Denmark, but > Global
> Warming ranking member James Sensenbrenner struck a contrary note.
>
> "I am very discouraged at the conversations that we have had with > all of
> our Chinese counterparts during this visit," he said. "It's business > as
> usual for China. The message that I received was that China was > going to do
> it their way regardless of what the rest of the world negotiates in
> Copenhagen."
>
> That could pose serious problems for any global agreement, > Sensenbrenner
> said, noting that President Bill Clinton never submitted the Kyoto > Protocol
> for ratification to the Senate because he knew it would be defeated.
>
> "I fear that we are on the same road and if Copenhagen is the son of
> Kyoto, the same thing is going to happen," Sensenbrenner said.
>
> Chinese officials said they are trying to reduce their carbon > emissions
> per unit of their gross domestic product by 20 percent by 2010, but > since
> China's economy is growing so fast, that means a significant net > increase
> in emissions. "That is frankly unacceptable," he said.
>
> Markey was more optimistic that China got the message that the climate
> change bill approved last week by the House Energy and Commerce > Committee
> means the United States is serious about addressing the issue.
>
> "Hopefully it sends a signal that will be received -- that we want > to work
> with the Chinese toward the goal in Copenhagen of achieving the proper
> roles for each country, including the Chinese, so that their > appropriate
> role can also be accepted," said Markey, who added that he was > "encouraged
> that progress can be made."
>
> "Mr. Markey is encouraged; Mr. Sensenbrenner is not, and I am hopeful
> because this is very urgent," said Pelosi, who noted that glaciers > melting
> in the Himalayas and the expansion of the Gobi Desert as problems that
> affect China.
>
> "We don't have that much time or margin for error. We must come to
> agreement. We must act. Copenhagen must be successful. But what we > do to
> get there must work," she said. "So, again, I'm hopeful that we can > reach a
> U.S.-China agreement but much more needs to be done."
>
>
> http://www.nationaljournal.com/congressdai...090529_2752.php
>
> -----
> HILL BRIEFS: HUD MONETIZES FIRST-TIME HOMEBUYER CREDIT
>
> Finance. HUD Secretary Donovan drew cheers from the National > Association
> of Homebuilders today as he announced the department was monetizing > the
> $8,000 first-time homebuyer tax credit. The credit, established in the
> economic stimulus package, previously only allowed families to > access the
> credit after filing tax returns. Donovan said the move would allow
> homebuyers using Federal Housing Administration-approved lenders to > use the
> tax credit quickly to help pay additional down payment or closing > costs,
> which would help lower interest payments. The rule would allow the tax
> credit to be applied in addition to the 3.5 percent down payment
> requirement for an FHA loan. "We believe this is a real win for > everyone,"
> Donovan said at the NAHB's board of directors spring meeting. > According to
> NAHB estimates, monetizing the tax credit will help 160,000 home > sales in
> the United States.
>
>
> http://www.nationaljournal.com/congressdai...090529_4126.php
>
> -----
> HILL BRIEFS: CHIEF EXPECTS NO CHANGE IN SHIPBUILDING PLAN
>
> Defense. As the Navy reviews its 30-year shipbuilding plan, Chief of > Naval
> Operations Gary Roughead today said he does not expect the Navy to > cut the
> number of ships planned for the fleet. "For me, I have not seen > anything
> that indicates that 313 ships is still not going to be the floor," > Roughead
> said in an interview at the Pentagon. "Our fleet is very, very busy > today
> and I don't see that diminishing." The Navy is required to send a
> shipbuilding plan to Capitol Hill with its budget submission each > year but
> decided to hold off this year until after the Pentagon completes its
> Quadrennial Defense Review of military capabilities and needs, which > is
> expected in early 2010. "The QDR is going to ask some very fundamental
> questions," Roughead said. "To submit a shipbuilding plan now that > tries to
> look out prior to a QDR that we're going to be working on over the > next
> couple of months to me would be putting a plan on the Hill that really
> doesn't have the ... intellectual foundation that I think we need to > be
> able to give Congress something that means something."
>
>
> http://www.nationaljournal.com/congressdai...090529_6569.php
>
> -----
> HILL BRIEFS: DUNCAN SAYS CHANGE DEPENDS ON POLITICAL WILL
>
> Education. Education Secretary Duncan, fresh from a 15-state listening
> tour, said today that without political resolve and courage, the
> administration's vast investment in education reform will not succeed.
> "What we have lacked is political courage, what we have lacked is > the will
> to do the right thing by children," said Duncan in a speech at the > National
> Press Club. "If we as a country can summon that passion, summon that
> courage to do the right thing, we'll transform the lives of our > children
> and our children's children for generations to come." Duncan said the
> administration will be watching how states and schools spend the > more than
> $100 billion in federal funding and stimulus money it is making > available.
> The majority of that money, about $70 billion, will go to K-12 > education,
> while $5 billion will go to early childhood education programs, and > about
> $30 billion will be used to "increase accessibility and opportunity" > for
> higher education. The department has the benefit of a second round of
> funding which has not yet been released, money which Duncan called a > "very,
> very strong stick" to ensure schools follow the administration's > plans.
>
>
> http://www.nationaljournal.com/congressdai...090529_6324.php
>
> -----
> HILL BRIEFS: COMMERCE DEPT. LOWERS ESTIMATED GDP DROP
>
> Economy. The Commerce Department statisticians today said the economy
> shrank during the first quarter, but not as much as it first > estimated.
> Instead of the 6.1 percent annual decline in gross domestic product > the
> department reported last month, it said the decline was 5.7 percent, > which
> was still slightly more than the 5.5 percent most economists were
> expecting. During the last quarter of 2008, the economy contracted > by 6.3
> percent.
>
>
> http://www.nationaljournal.com/congressdai...090529_5651.php
>
> -----
> HILL BRIEFS: PHRMA ADS BOOST DEMOCRATS
>
> Politics. A major player in the healthcare debate is launching ads in
> support of four Democratic lawmakers being targeted by the National
> Republican Congressional Committee. The Pharmaceutical Research and
> Manufacturers of America ads commend Reps. Parker Griffith and Bobby > Bright
> of Alabama; Frank Kratovil of Maryland and Tom Perriello of Virginia > for
> working for affordable health care. Ken Johnson, a senior vice > president
> for PhRMA, said the adds are part of the yearlong campaign to "build
> greater consensus and support for reform that ensures all Americans > have
> access to high-quality and affordable healthcare coverage."
>
>
> http://www.nationaljournal.com/congressdai...090529_3817.php
>
> -----
> HILL BRIEFS: ANOTHER PRIMARY CHALLENGER TO TAKE ON BURTON
>
> Indiana. State Rep. Mike Murphy Thursday became the fourth > Republican to
> announce he would mount a primary challenge to GOP Rep. Dan Burton, > the
> Indianapolis Star reported. Murphy, a former Marion County > (Indianapolis)
> Republican chairman, joins physician John McGoff, former state Rep. > Luke
> Messer and Brose McVey, who ran against the late Rep. Julia Carson, > D-Ind.,
> in the 2002 primary. McGoff narrowly lost to Burton -- who was first
> elected to the House in 1982 -- in last year's GOP primary, and > Burton's
> closer-than-expected finish apparently persuaded other Republicans to
> challenge him this time around. "Burton has served, but he has not > led,"
> Murphy declared in announcing his candidacy. The suburban > Indianapolis 5th
> District is heavily Republican, making whoever emerges from the > primary
> likely to be seated in the next Congress.
>
>
> http://www.nationaljournal.com/congressdai...090529_8655.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "Naturally, all of the groups on both sides have been knocking on the
> door. I mean, I have to admit both sides are very forceful. I can't > tell
> you how obnoxious both sides can become from time to time."
>
> -- Senate Judiciary member Orrin Hatch, speaking this morning on > National
> Public Radio about lobbying he is starting to get over Supreme Court
> nominee Sonia Sotomayor.
>
>
> http://www.nationaljournal.com/congressdai...090529_5501.php

> CongressDaily AM for Monday, June 1, 2009
>
> --------------------
> CONTENTS
>
> OUTLOOK: CONFEREES TO RECONCILE SUPPLEMENTAL
> By Humberto Sanchez and Anna Edney, with Andy Leonatti, Megan > Scully, Bill
> Swindell, Jerry Hagstrom, Carrie Dann, Kasie Hunt, Chris Strohm, > Andrew
> Noyes, George E. Condon Jr., and David Hatch contributing
>
>
> Democratic leaders hope to complete work this week on a supplemental
> spending bill for the wars in Iraq and Afghanistan, and other > military and
> domestic priorities.
>
> Staffs of the House and Senate appropriations committees are meeting > this
> week to reconcile differences between a $96.7 billion House version > of the
> bill and a $91.3 billion Senate-passed measure, a Democratic aide > said.
>
> Before leaving for the Memorial Day recess, the Senate named its > entire
> Appropriations Committee to a conference committee, and the House is
> expected to name its negotiators this week.
>
> Among the major differences is whether to include $5 billion to boost
> lending at the International Monetary Fund.
>
> The IMF funding is a priority for President Obama, who committed to > the
> funds at April's G-20 meeting in London. He said it is part of a
> multinational effort to increase the financial security of the IMF > in the
> face of the global recession.
>
> While the Senate included the funding in its package, the House did > not
> fund the initiative in its bill.
>
> The IMF funding issue poses a dilemma for House Democratic leaders > because
> they need Republican support to offset opposition from antiwar > Democrats.
> But if conferees include the IMF funding, it will likely jeopardize > GOP
> support.
>
> During floor debate last month, House Minority Leader Boehner said > the IMF
> funding "should be debated on its own merits, not as part of a
> troop-funding bill."
>
> J.D. Foster, a senior fellow at the Heritage Foundation and senior OMB
> official under former President George W. Bush, said last week that
> proponents of the IMF funding "have to say exactly what is it that > this
> money is going to do that can't be done otherwise at this time. The > center
> of the global financial crisis is not an inability of emerging market
> countries to borrow money. To this point, the case has not been made."
>
> In the Senate, Sen. Jim DeMint, R-S.C., offered an amendment to cut > the
> funding from the supplemental, but it failed, 64-30.
>
> Senate Foreign Relations Chairman John Kerry argued that the funding > would
> serve as a backstop for emerging market nations and buyers of U.S.-> produced
> goods.
>
> "We've got a lot of people in America whose jobs depend on their > ability
> to export goods," Kerry said. "And the fact is, if those emerging > markets
> start to fade, not only do we lose the economic side of those > markets, but
> we also run the risk that governments fail."
>
> One Democratic observer believes party members can win support for > the IMF
> money by getting assurances that other countries do their fair share.
>
> "I think the House, in part, is looking for assurances that the entire
> burden of stimulating the global economy is not going to fall on the > United
> States," said Scott Lilly, a former Democratic clerk and staff > director of
> the House Appropriations Committee, and now a senior fellow at the > Center
> for American Progress. "I don't [think] that this supplemental will > get to
> the president's desk with the IMF money in it unless those > assurances are
> given."
>
> Lilly didn't know what those assurances would look like.
>
> "That is something the White House and the governments in Europe > that want
> to see the money are going to have to take up with the conferees," > Lilly
> said.
>
> Other differences conferees must resolve include billions in military
> equipment added to the House bill, such as $2.2 billion for eight C-17
> cargo planes and $904 million for 11 C-130 transport aircraft. The > Senate
> bill does not fund either aircraft.
>
> Meanwhile, the Senate Finance Committee this week begins the process > of
> deciding what will make the cut for healthcare reform legislation.
>
> Senate Finance Chairman Max Baucus has stuck to a rigorous process to
> bring members up to speed on the issues and faces the task of paring > down
> the options considered during those weeks into a workable bill. > Baucus will
> meet Thursday with committee members to discuss the panel's agenda > for the
> upcoming weeks.
>
> Senate Health, Education, Labor and Pensions Chairman Edward Kennedy > is
> expected to release this week details of legislation his staff has > been
> crafting.
>
> Some of those details were leaked through a summary circulating among
> health policy experts that reveals Kennedy is looking to create a
> Medicare-like public insurance option and institute individual and > employer
> mandates.
>
> HELP staffers are scheduled to meet privately with Democratic panel
> members Tuesday and Wednesday and with all committee members Friday.
>
> In the House, committee chairmen continue to work with leaders to > craft
> legislation expected to be quite different than what emerges from the
> Senate. House Ways and Means Chairman Charles Rangel said to expect to
> start seeing ideas put to paper shortly after members return this > week. In
> addition, healthcare industry groups that pledged to find $2 > trillion in
> savings over the next 10 years are expected to provide more detail > on those
> plans to Obama today.
>
> The Senate meets today at 2 p.m. for morning business and afterward
> resumes consideration of the motion to proceed to railroad antitrust
> legislation.
>
> The House is not in session today.
>
> COMMERCE
>
> The Senate Commerce Committee Wednesday will examine recent > announcements
> by Chrysler LLC and General Motors Corp. to terminate agreements with
> thousands of auto dealers.
>
> Witnesses have yet to be confirmed for the hearing, but Commerce > Chairman
> John (Jay) Rockefeller and ranking member Kay Bailey Hutchison have > called
> on Chrysler CEO Robert Nardelli and GM CEO Fritz Henderson to testify.
>
> Members of Congress have criticized the lack of time GM and Chrysler > have
> given the dealerships to sell their inventory. During debate on the
> supplemental war package before Memorial Day, Hutchison introduced an
> amendment, which was not included in the final package, to not allow > any
> federal assistance to go to auto manufacturers that have not > provided at
> least 60 days for dealerships to sell inventory.
>
> Nearly 2,000 dealerships are set to close, putting approximately > 100,000
> jobs in jeopardy.
>
> DEFENSE
>
> The Senate Armed Services Committee will hold a confirmation hearing
> Tuesday for Lt. Gen. Stanley McChrystal, the director of the Joint > Staff
> who has been nominated to lead U.S. forces in Afghanistan.
>
> McChrystal, a former commander of Joint Special Operations Command, > would
> replace Gen. David McKiernan, who has served in Afghanistan only a > year.
>
> Defense Secretary Gates, who asked for McKiernan's resignation last > month,
> has said it is important to get "fresh thinking, fresh eyes on the > problem"
> in Afghanistan. McChrystal will head to Afghanistan as the Obama
> administration boosts U.S. military forces there by an additional > 21,000
> troops amid rising violence across the country.
>
> In addition to McChrystal, the committee also will meet Tuesday with > Adm.
> James Stavridis, who has been nominated to head U.S. European > Command, and
> Lt. Gen. Douglas Fraser, nominated to command U.S. Southern Command.
>
> ENERGY
>
> On Thursday, the Senate Energy and Natural Resources Committee will
> continue its markup of a massive energy package. Before the recess, > the
> committee worked on titles dealing with nuclear waste, cybersecurity > and
> the Strategic Petroleum Reserve.
>
> An agenda for the markup has not been announced. The committee has not
> finished work on a title dealing with building efficiency codes, and
> committee staffers spent the recess going through nearly 50 amendments
> dealing with a renewable energy standard.
>
> The mandate would require utility companies to produce 15 percent of
> electricity from renewable sources by 2021. Energy and Natural > Resources
> Chairman Jeff Bingaman's previous proposal was 20 percent.
>
> The committee has yet to take action on a title dealing with large-> scale
> carbon capture and sequestration demonstration projects, an issue > that will
> heavily influence a package addressing climate change.
>
> The majority of committee Republicans oppose the standard because it > does
> not include nuclear power or expanded hydroelectricity in the > definition of
> renewable energy sources. Energy and Natural Resources ranking > member Lisa
> Murkowski of Alaska has called for increased domestic oil and gas
> production.
>
> FINANCE
>
> The House Financial Services Capital Markets Subcommittee will hold a
> Wednesday hearing on the future of Fannie Mae and Freddie Mac. The two
> mortgage-financing giants were taken over by the federal government > last
> year in the midst of the housing meltdown and credit crunch.
>
> The two were chartered by the federal government and later allowed to
> offer stock and act in effect as private companies. Lawmakers are > weighing
> their future structures -- which buy mortgages from lenders and hold > them
> or package the loans into securities to sell to investors -- and > whether to
> privatize them, keep the current quasi-governmental structure or
> nationalize them.
>
> Meanwhile, the Senate Banking Committee will hold a Thursday > confirmation
> hearing on Herbert Allison Jr. to be assistant Treasury secretary for
> financial stability, which oversees the $700 billion Troubled Asset > Relief
> Program. The hearing will likely focus on the Obama's administration > plans
> for TARP. Some lawmakers worry that as some big banks are gearing up > to
> repay their TARP funds, the money will be recycled and lent out again,
> instead of shrinking the government's liability.
>
> The Senate and House Agriculture committees will each examine > overhauling
> the Commodity Futures Trading Commission and derivatives trading > Thursday.
>
> Senate Agriculture Chairman Tom Harkin has introduced a bill that > would
> bring over-the-counter derivatives trading onto the regulated > exchanges.
> The House Agriculture Committee has passed a CFTC reform bill, but > the path
> for CFTC regulatory reform in the House is unclear because House > Financial
> Services Chairman Barney Frank has claimed jurisdiction as part of his
> larger financial industry review.
>
> Congress is under intense pressure to beef up regulation of the CFTC > and
> derivatives as part of a larger financial industry regulation > overhaul.
>
> Last year, critics charged that investor speculation in the > commodities
> markets caused price spikes and dives in both oil and agricultural
> commodities. Many argued that the lack of regulation of derivatives > was a
> factor in the financial crisis.
>
> Sen. Bernie Sanders, I-Vt., said last week that, in light of rising > oil
> prices, the CFTC should use its emergency powers to intervene in the > oil
> futures markets. Sanders is not a member of the Senate Agriculture
> Committee, but he held up the nomination of Gary Gensler to be CFTC
> chairman. Gensler was confirmed last month.
>
> The Agriculture panel's hearing will come after the Senate Financial
> Services Appropriations Subcommittee meets Tuesday to review the
> administration's FY10 funding request for the SEC and CFTC, with SEC
> Chairwoman Mary Schapiro and Gensler expected to appear.
>
> Meanwhile, the House Agriculture General Farm Commodities Subcommittee
> will hold a hearing to review the implications of the CFTC v. > Zelener case
> on futures industry regulation. The 2004 court decision said the > CFTC did
> not have anti-fraud authority over certain off-exchange trades.
>
> GOVERNMENT OPERATIONS
>
> The Senate Homeland Security and Governmental Affairs Committee > Wednesday
> will consider the nomination of Martha Johnson to head the General > Services
> Administration. Johnson was GSA's chief of staff from 1996 to 2001 > and was
> an assistant deputy secretary in the Commerce Department during the > Clinton
> administration.
>
> She holds a post as vice president for culture at Falls Church, Va.-> based
> Computer Sciences Corp., a technology and software development firm > that
> handles tens of millions of dollars in federal contracts annually > from a
> host of government agencies.
>
> HEALTH
>
> The Senate could take up legislation this week giving the FDA > authority to
> regulate tobacco. Majority Leader Reid filed for cloture on the bill > before
> Congress left for the Memorial Day recess. The Senate will take it > up after
> dealing with a measure to end antitrust exemptions for freight > railroad
> companies.
>
> The senators from tobacco-rich North Carolina, Democrat Kay Hagan and
> Republican Richard Burr, are opposed to the bill -- and Burr has > threatened
> a filibuster. The legislation would allow FDA to limit the amount of
> nicotine and put restrictions on marketing and advertising. It would > also
> enlarge cigarette warnings, prohibit flavored cigarettes unless they > taste
> like menthol, and restrict print tobacco advertising and bar > companies from
> advertising cigarettes as "light" or "low tar."
>
> Meanwhile, the House Energy and Commerce Committee will start > discussions
> on a food safety overhaul with a hearing Wednesday on a discussion > draft
> released by the committee last week. The draft includes $1,000 annual
> registration fees for food companies to offset the cost of more FDA
> inspections. Riskier products will be inspected more often, as > frequently
> as every six months, while low-risk companies would be inspected every
> three years.
>
> HOMELAND SECURITY
>
> The House is expected to take up an unusual bill authorizing > programs and
> spending for the Transportation Security Administration.
>
> The bill represents the first-ever authorizing legislation for TSA > since
> the agency was created in the aftermath of the Sept. 11, 2001, > terrorist
> attacks. Lawmakers will consider 14 amendments to the bill, > including one
> that would prohibit the agency from using so-called whole-body imaging
> machines at primary airport screening checkpoints.
>
> Significant activities the bill would authorize include a test > program to
> demonstrate the use of biometrics, such as fingerprints, to improve
> aviation security; hiring additional security inspectors for surface
> transportation systems, and reimbursing airports for security-related
> expenses. According to CBO, the bill would increase discretionary > federal
> spending by $11.4 billion from FY10 to FY14.
>
> Meanwhile, examination of the Obama administration's release of its
> cybersecurity review continues this week with a briefing today by the
> Congressional Internet Caucus Advisory Committee. Panelists will > discuss
> the report, the role of the forthcoming White House cyber czar, and
> potential challenges in implementing the recommendations.
>
> Panelists include former Homeland Security Department assistant > secretary
> for policy Stewart Baker and Business Software Alliance President > Robert
> Holleyman.
>
> The cybersecurity report and the path forward will be a focus of > debate at
> the 19th annual Computers Freedom and Privacy conference, which begins
> Tuesday. Attendees will hear from Susan Crawford, special assistant > to the
> president for science, technology and innovation policy and a member > of the
> National Economic Council and Craigslist founder Craig Newmark.
>
> JUDICIARY
>
> Supreme Court nominee Sonia Sotomayor starts informal meetings with
> senators this week. According to a schedule announced by the White > House,
> she will meet Tuesday with Majority Leader Reid, Senate Judiciary > Chairman
> Patrick Leahy and Judiciary ranking member Jeff Sessions. A meeting > with
> Senate Minority Leader McConnell was also being set up. Obama has > said he
> hopes Sotomayor is confirmed to replace retiring Justice David Souter
> before the Supreme Court reconvenes in October.
>
> LABOR
>
> The U.S. Chamber of Commerce this week will fly local business > leaders to
> Washington to lobby against a possible compromise on the Employee Free
> Choice Act. Sen. Tom Harkin, D-Iowa, has been leading a push among > Senate
> Democrats to adjust the bill so it can overcome a Republican > filibuster.
> Lawmakers have proposed quick union elections and mail-in ballots as
> possible alternatives to the "card-check" portion of the current bill,
> which strips companies of the ability to demand secret ballot > elections
> before workers can form a union.
>
> The business leaders will meet with Sen. Dianne Feinstein, D-Calif., > who
> has been pushing mail-in ballots as an alternative to the card-check
> provision of the bill. As currently written, that piece would allow > workers
> to form a union if a majority sign authorization cards and eliminate a
> company's ability to demand a secret ballot election. Lawmakers have > also
> proposed quicker elections as part of a possible compromise.
>
> TELECOMMUNICATIONS
>
> The FCC has cleared the decks for its Wednesday public meeting to > focus
> solely on the final phase of the nationwide shift to digital > television
> signals June 12, when more than 900 stations will cut their analog
> transmissions. In a replay of previous agency meetings addressing > the same
> topic, federal officials, broadcasters, watchdogs and other > stakeholders
> will provide status reports.
>
> Meanwhile, House Energy and Commerce Communications Subcommittee > Chairman
> Rick Boucher, D-Va., will hold a Thursday hearing to examine the > future of
> the government's relationship with the Internet Corporation for > Assigned
> Names and Numbers, a nonprofit California-based entity that > administers the
> Internet addressing system.
>
> Internet industry stakeholders have pressed Boucher to hold such a > hearing
> on ICANN, particularly as a joint project agreement that has allowed
> Commerce Department oversight of ICANN is slated to sunset on Sept. > 30 amid
> accountability and transparency concerns.
>
> Senate Commerce Committee members recently urged Commerce Secretary > Locke
> and Assistant Secretary-Designate Larry Strickling to pay close > attention
> to the issue.
>
> And with broadband deployment on the minds of regulators in > Washington,
> the Free State Foundation, a market-oriented think tank, hosts a > Friday
> seminar on where the United States stands in global rankings for > high-speed
> Internet usage. The featured speaker is David Gross, a Wiley Rein > attorney
> whose client lists include telecom and cable companies.
>
> Gross was U.S. coordinator for international communications and
> information policy at the State Department during the Bush > administration.
> Other speakers include Robert Atkinson, president of the Information
> Technology and Innovation Foundation; Link Hoewing, assistant vice
> president for Internet and technology issues at Verizon; and > Christopher
> Guttman-McCabe, vice president of regulatory affairs at CTIA, the > wireless
> association.
>
> WHITE HOUSE
>
> Obama leaves Tuesday for a four-nation swing through the Middle East > and
> Europe. The centerpiece of the trip is a speech to the Muslim world
> Thursday in Egypt. He will also make stops in Saudi Arabia, Germany > and
> France, where he will mark the 65th anniversary of D-Day. The > president is
> scheduled to return to Washington on Sunday.
>
>
> http://www.nationaljournal.com/congressdai...090601_5968.php
>
> -----
> HEALTH: CRUCIAL SUMMER SCHEDULE BEGINS FOR 'MUST PASS' HEALTHCARE > OVERHAUL
> EFFORT
> By Anna Edney, with Billy House contributing
>
>
> The House and Senate return this week to begin the heavy lifting on a
> healthcare overhaul. It is not that members and staff have not been > working
> hard -- but, as Robert Moffit, director of The Heritage Foundation's > Center
> for Health Policy Studies, put it, "all of the bumper-sticker talk" is
> coming to an end.
>
> Senate Finance Chairman Max Baucus will not be able to keep every > option
> on his table much longer. The tough decisions are going to be made > in the
> next few weeks. What does a public insurance plan look like, > assuming there
> is one at all? Will employers be required to provide health > insurance? How
> do lawmakers pay for a measure that could top $1 trillion?
>
> As one lobbyist put it, "We're going to put a lot of water through a > small
> garden hose as far as the decisions they've got to make in a short > period
> of time."
>
> With such enormous questions hanging in the balance and only a > couple of
> weeks to go before the Senate aims to mark up health reform > legislation, it
> is surprising that many interested parties believe the mid-June markup
> deadline, and likely a July one in the House, is attainable or close > to the
> mark. Both chambers are shooting for passage before their August > recess.
>
> "Amazingly, I do," one Republican lobbyist said when asked if Congress
> appeared on track. "Just normal business around Washington; there's > no way
> anyone would think they could keep that schedule, but I think they > will."
>
> According to K Street sources, one idea being talked up among Senate
> staffers to help them meet their markup and passage goals is the > concept of
> bestowing much of the decision-making authority on a healthcare > entity such
> as HHS or something new. The entity could detail concepts Congress
> envisions, such as a minimum benefit package for insurers > participating in
> an exchange, value-based purchasing or slashing hospital readmissions.
>
> One Democratic lobbyist described the idea as a way to ensure CBO can
> score the ideas, rather than punting on the hard issues. For example,
> lawmakers could direct the entity to find a certain amount of > savings from
> these ideas and to make cuts another way if necessary to achieve the > same
> dollar figure.
>
> The concept of a decision-making healthcare entity is in no way > certain,
> but Senate Finance Health Subcommittee Chairman John (Jay) > Rockefeller,
> D-W.Va., has pushed a similar idea. He proposed legislation recently > that
> would vest more authority in the Medicare Payment Advisory > Commission and
> instruct Congress to hand off reimbursement decisions to the panel > that
> currently can only offer recommendations.
>
> While lawmakers still face the gritty work that will produce actual
> legislation, many are buoyed by the atmosphere to date.
>
> "If [the timing] slips, the tone, the mood, the commonality, and to > me,
> the basic philosophical approach that we're all in right now is so > much
> better than '93, '94," Bill Vaughan, a senior analyst at Consumers > Union,
> said. "From the outside, it feels like they're so much more on > schedule
> than the Clinton years."
>
> Others are not so convinced the congenial talk will hold much longer.
>
> "What you've seen is a lot of posturing by people in Congress, and for
> that matter, on K Street," Moffit said, pointing to the > administration's
> recent announcement that six health industry groups have pledged to > come up
> with $2 trillion in cost cuts over the next 10 years. Some of the > groups
> quickly backed off the announcement when they faced pushback from > their
> members. Those groups are supposed to reveal further detail by day's > end.
>
> One of the trickier issues Congress has yet to contend with, and one > on
> which the entire package hinges, is financing. Whether members can > find and
> agree on how to pay for healthcare reform will shape the size of the
> overhaul, and ideas could start slipping off Baucus' table simply > for lack
> of funding. Not only do members need to agree on how to pay for it, > but CBO
> needs to assign savings to them, something the agency has struggled > with
> for a lack of specifics and experience with some of the ideas.
>
> "A potential challenge they face, which may slow things down > slightly, is
> securing the necessary scoring from CBO and educating members on the
> policy," Shawn Martin, director of government relations for the > American
> Osteopathic Association, said. "If those two things fall in line, I > see no
> reason they don't meet their mark."
>
> Lawmakers have given themselves plus or minus two weeks wiggle room,
> particularly in the House. "We hope to pass healthcare reform by > August.
> That is a target, not a deadline," House Majority Leader Hoyer said
> recently. "We want to get this done right."
>
> The Senate Health, Education, Labor and Pensions Committee, which > has done
> most of its work behind closed doors, is expected to hold private > member
> and staff meetings beginning this week, much like the Senate Finance
> Committee did throughout April and May. The HELP Committee aims to > start
> marking up its bill June 16, according to a copy of the committee's
> timeline floating around Capitol Hill last week.
>
> HELP also appears to be crafting a much more liberal bill than its > Finance
> counterparts, at least according to a rough sketch circulating along > with
> the timeline. According to the outline, HELP Chairman Edward Kennedy's
> staff is contemplating a Medicare-like public option, individual and
> employer mandates, subsidies to help families pay for health > insurance up
> to those earning 500 percent of the poverty level and would extend > coverage
> through the Children's Health Insurance Program to people as old as > 26.
>
> Most do not doubt the Senate committees will be able to meld their > bills.
>
> "They are both strong chairmen, but neither will let committee
> jurisdiction interfere with their mutual goal of passing healthcare > reform
> this year," Rich Tarplin, a former Clinton administration HHS > official and
> founder of Tarplin Strategies, said.
>
> Concerns remain as to whether the Senate can stick to its bipartisan > tone.
> "From now on, I think it's an open question," Chip Kahn, president > of the
> Federation of American Hospitals, said.
>
> House Democrats are not necessarily going for bipartisanship, but they
> could have trouble keeping every member of their Caucus in the fold,
> particularly vulnerable moderates. "They're going to look through > the prism
> of what's going to pass the Senate," a Democratic lobbyist said. "If > the
> Senate's not going to do it, and we're going to lose to the Senate in
> conference, why take that tough vote?"
>
>
> http://www.nationaljournal.com/congressdai...090601_6155.php
>
> -----
> OUTLOOK: HOT TICKET
> By Jason Mann
>
>
> REBEL WITH A CAUSE This week marks the 20th anniversary of China's
> Tiananmen Square protests. On Tuesday, the Heritage Foundation is > hosting a
> discussion with Wang Dan, who, as a 20-year-old student, helped > organize
> the protests as a leader of the Chinese democracy movement. Since > then,
> Wang has spent his life on most-wanted lists and in prison. He will be
> introduced by Sen. Sam Brownback, R-Kan., before discussing his life > as a
> dissident. The discussion starts at 1 p.m. For more information, visit
> www.heritagefoundation.org.
>
> HEALTH PROGNOSIS Healthcare legislation is taking center stage this > year
> and will be discussed by two heavy hitters this week. On Tuesday, the
> National Press Club is hosting a discussion between former HHS > Secretary
> Michael Leavitt and former HHS-nominee and Senate Majority Leader Tom
> Daschle, D-S.D., who will analyze the politics of reform and > forecast its
> outcome. Former Centers for Medicare and Medicaid Services > Administrator
> Mark McCellan will moderate the debate. The event starts at 2 p.m. > For more
> information, contact Mark Schoeff Jr. at (202) 662-7218.
>
> CRY FOR HELP With "American Idol" over, we know you're just dying to > find
> out where you can go to hear amateur singers butchering your favorite
> songs. On Wednesday, Childhelp is hosting a karaoke night to raise > funds
> for the nonprofit, which helps victims of child abuse and at-risk > children.
> Some of the celebrities taking the stage include NBC's Andrea > Mitchell and
> married CNNers John King and Dana Bash, who we really hope sing > "Muskrat
> Love." Reps. John Shadegg, R-Ariz., and Patrick Kennedy, D-R.I., > will be in
> attendance but haven't confirmed yet whether or not they'll belt out a
> ballad or two. The fun starts at 6:30 p.m. at the Newseum. Tickets > cost
> $500 and can be bought by calling Tara Tucker at (571) 438-1653.
>
> AWARDS NIGHT The Bradley Awards are Wednesday night, taking over the
> Kennedy Center to honor four individuals who exemplify the Lynde and > Harry
> Bradley Foundation's mission of free representative government. > Columnist
> George Will is hosting and will hand awards to Federalist Society
> co-founders former Sen. Spencer Abraham, R-Mich., and former Rep. > David
> McIntosh, R-Ind., "Weekly Standard" founding editor William Kristol, > UCLA
> economics professor Arnold (Alito) Harberger and Sir Martin Gilbert,
> biographer for Winston Churchill. The award comes with its own > stimulus
> package of $250,000. The event starts at 7:30 p.m. and is invitation > only,
> so start making some phone calls.
>
>
> http://www.nationaljournal.com/congressdai...090601_4471.php
>
> -----
> PEOPLE: PEOPLE
> By Mike Magner
>
>
> GOING PLACES. After drafting appropriations bills for 22 years, > primarily
> for transportation programs, Peter Rogoff is going to start spending > some
> of the money himself.
>
> Over the Memorial Day recess, Rogoff moved from the Senate
> Transportation-HUD Appropriations Subcommittee, where he had been
> Democratic staff director since 1995, to the corner office at the > Federal
> Transit Administration. The Senate confirmed him as FTA > administrator May
> 21.
>
> "As we enter into a new era of public transportation in America, a new
> champion for mass transit has arrived," declared Edward Wytkind, > president
> of the AFL-CIO's Transportation Trades Department.
>
> Rogoff, from highly transit-oriented Queens, N.Y., has helped write > the
> last three surface transportation bills and played "a key role in > advising
> lawmakers on the operating and capital needs of Amtrak," the White > House
> said when it announced his appointment.
>
> The latter experience makes him a favorite contact for Vice President
> Biden, who commuted by Amtrak as a senator from Delaware. "The vice
> president and I have had many, many discussions about mass transit," > Rogoff
> said.
>
> While attending Amherst College in 1982, Rogoff interned in Washington
> with a research center on socially responsible investing and fell in > love
> with the city. He returned after graduating in 1983 to advocate for > student
> aid programs, then joined the staff of the Senate Appropriations > Committee
> in 1987, first as an aide to the Labor-HHS subcommittee. He > transferred to
> the Transportation subcommittee in 1990.
>
> Rogoff earned an MBA at Georgetown University and last year was an > adviser
> on transportation issues to the Obama presidential campaign.
>
>
> http://www.nationaljournal.com/congressdai...090601_1698.php
>
> -----
> FORWARD OBSERVER: NON-EXIT STRATEGY
> By George C. Wilson
>
>
> Voices from the grave make me fear that President Obama and Congress > are
> unwittingly setting up the American military for another Vietnam-type
> failure in Afghanistan.
>
> "I don't think anything is going to be as bad as losing, and I don't > see
> any way of winning," President Lyndon Johnson told Defense Secretary > Robert
> McNamara in a formerly secret tape-recorded telephone conversation > on Feb.
> 26, 1965 -- since made public.
>
> That president had said while campaigning against Sen. Barry > Goldwater,
> R-Ariz., in 1964 that "we are not about to send American boys 9,000 or
> 10,000 miles away from home to do what Asian boys should be doing for
> themselves." At the end of 1964, the United States had 16,300 troops > on the
> ground in South Vietnam. At the end of 1968, this same Lyndon > Johnson had
> sent 536,000 American boys to fight a war in Vietnam that he did not
> believe he could win.
>
> Gen. Bruce Palmer Jr., a thoughtful and far-seeing four star who was
> deputy commander in Vietnam, wrote in his slim but pithy book, "The
> Twenty-Five Year War," that "with respect to Vietnam, our leaders > should
> have known that the American people would not stand still for a > protracted
> war of an indeterminate nature with no foreseeable end to the U. S.
> commitment."
>
> I humped around with troops in the outbacks of South Vietnam in 1968 > and
> 1972 and saw for myself several hard-fighting troopers wearing black
> armbands to protest the very same war they were in. One of their > generals
> said, "Westy doesn't get it," a reference to Gen. William > Westmoreland,
> America's field commander in Vietnam in 1968, whom critics contended > never
> realized the North Vietnamese leaders would stay in the fight until > they
> won, regardless of how many soldiers our forces killed.
>
> "Your generals are leading you down a primrose path, Mr. President," > Clark
> Clifford, McNamara's successor at the Pentagon, said he told Johnson > late
> in the Vietnam War. Clifford told us editors and reporters at The
> Washington Post that LBJ had asked him to find out how the United > States
> was really doing in the Vietnam War. Clifford told us that no > general would
> guarantee the president victory no matter how many more troops were > sent to
> Vietnam.
>
> So, as Yogi Berra would put it, Afghanistan looks to me like "deja > vu all
> over again." If I'm right, and I hope I'm not, Obama's decision to put
> 21,000 more American troops in Afghanistan to bring our total there > up to
> about 59,000 Americans will be followed by our commanders requesting > more
> and more and more military power.
>
> The Vietnam calls to attack enemy sanctuaries in Cambodia and Laos may
> well be echoed as our commanders ask Obama to hit Taliban > sanctuaries in
> Pakistan.
>
> As in Vietnam, our European friends cannot be counted on to give us
> significant military help in Afghanistan. Remember, our war in > Afghanistan
> has been going on for almost eight years now. The American public and
> Congress will eventually demand that Obama either show them light at > the
> end of the tunnel or get the hell out of Dodge.
>
> Obama probably has more time to show progress in Afghanistan than > Johnson
> had in Vietnam. The reason for the longer tolerance is that the > mainstream
> of American society does not have to worry about being drafted to > fight a
> questionable war. The draft, if nothing else, was a national > referendum on
> the rightness of a war America's youth, some from the establishment, > were
> dying in. Not so today. The all-volunteer American military is > almost as
> far out of sight of the American establishment as was the French > Foreign
> Legion to France.
>
> Yet, the patience of the American public and its hired hands in > Congress
> is not unlimited. The more people, especially lawmakers, who read > books
> like "Three Cups of Tea" by Greg Mortenson and David Oliver Relin, > the more
> the American military's mission to pacify the 40,000 tiny villages in
> Afghanistan will look like mission impossible, especially if our > bombings
> keep killing Afghan civilians and infuriating the ones who survive. > Like it
> or not, fair or unfair, the war in Afghanistan has become Obama's > war. The
> big question is whether Afghanistan will ruin Obama's presidency the > way
> Vietnam ruined Johnson's.
>
> I recently asked the top military officer in our land, Adm. Michael
> Mullen, chairman of the Joint Chiefs of Staff, whether he was > worried about
> his civilian bosses setting up the American military up for another
> Vietnam-type failure in Afghanistan. His reply: "I've been given a > mission
> by the president of the United States, and I'm going to succeed in > that
> mission. There are going to be a lot of hard questions" about the > American
> military's role in Afghanistan and its exit strategy, Mullen > acknowledged.
> "I welcome those hard questions. I think we need to be able to > answer them.
> This is a tough fight and it's going to take some time."
>
> In contrast, Andrew Bacevich, a retired colonel who served in Iraq and
> teaches international relations at Boston University, sees another > failure
> coming. "Just as in the 1960s, [when] we possessed neither the > wisdom nor
> the means needed to determine the fate of Southeast Asia," he told the
> Senate Foreign Relations Committee recently, "so, too, today we > possess
> neither the wisdom nor the means necessary to determine the fate of > the
> Greater Middle East."
>
>
> http://www.nationaljournal.com/congressdai...090601_4619.php
>
> -----
> BEYOND THE BELTWAY: R.I. SENATE PASSES MEASURE TYING PAY INCREASES > TO CPI
>
> The state Senate approved legislation on Wednesday that could raise > Rhode
> Island's $7.40 minimum wage each year in accordance with federally > adjusted
> cost-of-living measures, known as the consumer price index.
>
> The measure would adjust the minimum wage every January, starting in > 2011,
> based on the consumer price index. If growth is negative, the rate > would be
> unchanged. Annual growth would be capped at 3 percent.
>
> Supporters said the measure removes politics and uncertainty to wage > floor
> increases.
>
> "There are some years when a minimum wage proposal makes it onto the
> Legislature's agenda and other times when it does not," said > Democratic
> state Sen. Leonidas Raptakis. "This measure will bring a much-needed > degree
> of stability and continuity to the process."
>
> The measure passed 31-6 and moves to the House, where a similar > measure
> stalled last year, the Providence Journal reported.
>
> Republicans primarily oppose the bill; they say it would place a > strain on
> employers.
>
> "We can't be making decisions that drive away small businesses on a > whim,"
> said Republican state Sen. Leo Blais.
>
>
> http://www.nationaljournal.com/congressdai...090601_4976.php
>
> -----
> BEYOND THE BELTWAY: CONN. ADVANCES BILL TO REMOVE GUBERNATORIAL > APPOINTMENT
> POWER
>
> Connecticut's Democratic-controlled Senate voted last week to strip > the
> governor's power to appoint a U.S. senator in the event of a vacancy.
>
> Approved in a party-line 21-12 vote, the legislation would require a
> special election to be held 150 days after a Senate seat becomes > vacant,
> the Hartford Courant reported.
>
> Forty-five states have gubernatorial appointments, including > Connecticut.
>
> In the event the vacancy occurred in the last year of the Senate > term, the
> measure would allow the governor to nominate a replacement. The > nomination
> would require approval from two-thirds of the state House and Senate.
>
> "In recent years, we've seen corruption and scandal surround the
> appointment of a U.S. senator by governors in states across our > country,"
> said Democratic state Sen. Gayle Slossberg. "The bottom line is that > no one
> person, no one party and no one group of special interests should > have the
> power to choose the individual who will serve in such an important
> position."
>
> The legislation now moves to the state House for consideration.
>
> Republicans expressed concern about the expense of a special election,
> which officials said could exceed $2 million.
>
> State Senate Majority Leader Martin Looney said that the legislation
> follows a trend of states moving toward direct primaries.
>
>
> http://www.nationaljournal.com/congressdai...090601_8310.php
>
> -----
> BEYOND THE BELTWAY: OHIO HOUSE APPROVES MEASURE TO REGULATE TRANSITION
> ACCOUNTS
>
> The Ohio House last week unanimously passed a measure aimed at > reining in
> unregulated transition accounts which pay for the inaugural > activities of
> officials, the Toledo Blade reported.
>
> The measure, which goes to the state Senate, was prompted by last > year's
> investigation into former Attorney General Marc Dann's office and > campaign
> activities.
>
> Dann resigned in the wake of a sexual harassment scandal that turned > into
> a wider investigation.
>
> A report by Ohio Inspector General Tom Charles last year accused > Dann of
> using his campaign and transition accounts as slush funds for the > use of
> him, his family and friends.
>
> "What is just as troubling to me, if not more troubling, is the fact > that
> there could be more cases like that out there. Frankly, we'll never > know,"
> said Democratic state Rep. Dan Dodd.
>
> State law does not limit who can open such accounts, restrict those
> allowed to make donations or require the elected official to > disclose the
> account's activities.
>
> "It's no surprise. There were irregularities found [through the
> investigation]. Unfortunately, there was no violation of law, > because there
> was no law to violate," said Democratic state Rep. Mark Okey, the > bill's
> primary sponsor.
>
> The measure would limit opening transition accounts to elected and
> appointed officals. It would also limit donations for the governor's > office
> to $10,000 and $2,500 for other offices.
>
>
> http://www.nationaljournal.com/congressdai...090601_1919.php
>
> -----
> BEYOND THE BELTWAY: RENEWABLE ENERGY BILL BECOMES LAW IN VERMONT
>
> While he expressed concerns with it, Vermont Republican Gov. Jim > Douglas
> allowed renewable energy legislation become law last week without his
> signature, the Burlington Free Press reported.
>
> The bill sets favorable rates for small-scale solar, wind and other
> renewable production that advocates say will encourage those > projects and
> eventually lower costs while creating jobs.
>
> "This bill does more for small-scale and community-scale renewable > energy
> than anything that's been passed," said James Moore, clean-energy > advocate
> for Vermont Public Interest Research Group. "This helps businesses,
> schools, farmers, towns."
>
> Douglas surprised many by not vetoing the legislation after he had
> criticized it.
>
> Senate President Pro Tempore Peter Shumlin, a Democrat, said there > were
> enough votes to override a veto.
>
> The measure sets rates up to six times higher than going electric > rates
> but allows the Public Service Board to decide if those prices are
> acceptable and can adjust them.
>
> In a message to the Legislature, Douglas argued that the prices it set
> were too generous.
>
>
> http://www.nationaljournal.com/congressdai...090601_1906.php
>
> -----
> DRAWING BOARD: DRAWING BOARD
> By Mark Armstrong
>
>
>
> http://www.nationaljournal.com/congressdai...090601_6928.php
>

> CongressDaily PM for Monday, June 1, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: LIBERAL GROUPS UNVEIL $82M AD BUY
> By Anna Edney, with Dan Friedman contributing
>
>
> Progressive groups banded together today to launch an $82 million > campaign
> to support President Obama's effort to pass a healthcare overhaul this
> year. The bulk of the spending will go toward advertising and > grassroots
> organization.
>
> "We have the momentum for real change, and with the commitment of the
> president and Democratic leadership in Congress, we know we can be > stronger
> and louder than the special interests who make money off the status > quo and
> would have any reform continue to put their profits before people's
> health," said Richard Kirsch, national campaign manager for Health > Care for
> America Now.
>
> Kirsch's group is joined by AFL-CIO, the union group Change to Win,
> MoveOn.org and Democracy for America, a group founded by former > Democratic
> National Committee Chairman Howard Dean aimed at pushing a progressive
> agenda.
>
> According to the coalition, the effort is the largest national > progressive
> issue campaign ever, "one that was lacking when President Clinton's
> healthcare proposals were defeated by the healthcare industry and
> conservative groups more than a decade ago," said Kirsch. The groups
> support one of the thornier issues under discussion, a public > insurance
> option, which is under attack by most Republicans and interest groups,
> including the private insurance lobby.
>
> Republicans remain largely united against a broader government role.
> Senate Minority Leader McConnell weighed in on the healthcare debate > today
> for the first time as he gave the first of what should be several > floor
> speeches on the topic.
>
> McConnell outlined several Senate GOP talking points, chief among > them his
> party's opposition to a public plan. McConnell's speeches will try > to frame
> debate on the issue on Republican terms, GOP aides said.
>
> McConnell argued a government insurance option would drive out private
> insurers. "Those who like the care they have don't particularly like > the
> idea of the people who brought us the Department of Motor Vehicles > handling
> life-or-death healthcare decisions, like whether or not they're > eligible
> for surgery or whether they qualify for a certain medicine according > to
> some impersonal government board in Washington," he said.
>
> The $82 million campaign is part of a push under way on Capitol Hill > this
> week under the banner "America's Future Now." The collusion this > week aims
> to coordinate progressive efforts not just around health care but > energy
> independence, issues involving working mothers, torture, college
> affordability, a global economic strategy and military spending. The
> conference was known as Take Back America, but it changed names with
> Democrats in control of the White House and Congress.
>
>
> http://www.nationaljournal.com/congressdai...090601_2622.php
>
> -----
> HEALTH: BUSINESS GROUPS, UNIONS TANGLE ON BENEFITS TAX
> By Kasie Hunt
>
>
> Business leaders are accelerating a push to convince lawmakers that > union
> contracts should not be excluded from changes to the tax exclusion for
> health benefits.
>
> Business and labor unions are generally opposed to ending the tax
> exclusion for health benefits. But if such changes are made, > lawmakers are
> considering grandfathering language that would protect negotiated > union
> benefit contracts. This has caused alarm among business groups.
>
> "Good policy should not be at the mercy of collective bargaining
> agreements -- if Congress decides to make this landmark change, the > changes
> should apply uniformly," the U.S. Chamber of Commerce wrote last > week to
> Senate Finance Chairman Max Baucus and ranking member Charles > Grassley.
>
> Furthermore, modifying the tax exclusion based on income or other > factors
> would "foster class warfare" by ending the exclusion for some while > not
> affecting others, the letter said. It added Congress should not > index any
> health tax to the consumer price index, because healthcare costs have
> increased at a much faster rate than consumer prices.
>
> "Preferred options would be indexing to the medical price index or > perhaps
> the national health expenditures. The index should further good > policy by
> giving no special consideration to high cost areas," said the > letter, which
> was dated May 26.
>
> Unions and business groups continue to disagree on other possible
> financing elements. Baucus has mentioned ending tax deductions for HSA
> contributions for people with high-deductible plans.
>
> Unions would take the idea even further, while business wants to > protect
> the deduction. As it stands, the deduction "favors the wealthy and may
> actually make the healthcare system less efficient overall," says a > report
> issued last month by Citizens for Tax Justice and circulated by the > Service
> Employees International Union.
>
> The group's proposal would bar new contributions to HSAs but allow > people
> to use savings they have already contributed to such plans. The report
> estimates the move would save the government $1.1 billion in 2012.
>
> Business opposes changing HSA plans. "The revenue implications of > changes
> to HSAs are so small that it becomes immediately obvious that this > change
> is ideologically driven, rather than policy-driven," the Chamber's > letter
> to the Finance Committee leaders said.
>
>
> http://www.nationaljournal.com/congressdai...090601_8403.php
>
> -----
> TRANSPORTATION: OBAMA CALLS GM BANKRUPTCY NECESSARY STEP
> By George E. Condon Jr., with Billy House contributing
>
>
> President Obama pledged an additional $30 billion to bail out troubled
> U.S. automakers today as General Motors Corp. filed for the nation's
> largest industrial bankruptcy.
>
> The president said both steps were necessary to "mark the end of an > old GM
> and the beginning of a new GM," while acknowledging that the > transition
> will bring pain and job losses to thousands of Americans.
>
> He held out Chrysler as an example of the good that can come from a
> bankruptcy filing, noting the company is completing its alliance > with Fiat
> and will emerge from its bankruptcy "stronger, leaner and more
> competitive."
>
> He urged critics of GM's bankruptcy to learn the lessons of Chrysler.
> "Many experts said that a quick, surgical bankruptcy was > impossible," he
> said. "They were wrong. Others predicted that Chrysler's decision to > enter
> bankruptcy would lead to an immediate collapse in consumer > confidence that
> would send car sales over a cliff. They were wrong as well."
>
> The president cast the government as "reluctant shareholders, > because that
> is the only way to help GM succeed. What we are not doing, what I > have no
> interest in doing, is running GM. GM will be run by a private board of
> directors and management team with a track record in American > manufacturing
> that reflects a commitment to innovation and quality. They, and not > the
> government, will call the shots."
>
> He also made it clear that he expects government involvement to be
> short-lived, saying companies that receive bailout money will not be
> "permanent wards of the state, kept afloat on an endless supply of > taxpayer
> money."
>
> Republicans in the House remain skeptical. "This agreement may buy > some
> time, but does nothing to ensure GM's success," said House Minority > Leader
> Boehner. "The only thing it makes clear is that the government is > firmly in
> the business of running companies using taxpayer dollars."
>
> Boehner also complained that "the policies coming out of Washington > have
> been conflicting and counterproductive, while leaving American workers
> holding the bag. On one hand, the administration says it is > committed to
> keeping GM afloat, then announces increased CAFE standards that > would force
> more American auto jobs overseas."
>
> House Minority Whip Cantor said he is concerned "that thousands of
> hard-working Americans who chose to invest their savings in the > company had
> their rights trampled by this agreement. These working families and
> retirees had their voices silenced and their savings erased."
>
> Senate Majority Leader Reid was more supportive, calling the > bankruptcy "a
> regrettable but necessary step." He contended in a statement that > Obama's
> actions were driven "by our nation's shared interest in ensuring the
> American auto industry can survive." He added, "We are equally > committed to
> protecting the taxpayers' investment and giving back our stake in > General
> Motors as soon as possible. In the meantime, the government has no > interest
> in or intention to interfere with the company's day-to-day > operations."
>
>
> http://www.nationaljournal.com/congressdai...090601_2176.php
>
> -----
> TRANSPORTATION: LAWMAKERS TURN TO RETRAINING, TECHNOLOGY
>
> After fighting to keep General Motors Corp. out of bankruptcy, > Michigan
> lawmakers today began identifying steps for Congress to take to help > the
> company and its workers get back on their feet as quickly as possible.
>
> "Just as we have all done everything we possibly could to help GM > survive,
> we now need to put our shoulders to the wheel for two goals: > supporting in
> every way we can the people whose jobs are lost, in part with a > greater
> emphasis on new energy technologies that can be developed in > Michigan, and
> doing our utmost to help the new GM become a strong and vibrant > company,"
> said Sen. Carl Levin, D-Mich.
>
> Rep. Sander Levin, D-Mich., said "it is vital that we finalize a > voucher
> program to spur consumer demand and that we accelerate federal > programs
> that leverage investments in the advanced technologies that will > power the
> car of tomorrow as we rebuild the domestic auto industry."
>
> Rep. John Dingell, D-Mich., added that "we need to come together to
> develop and enhance training programs for our displaced workers so > that
> they get back into the workforce quickly."
>
> Dingell will make that argument directly Tuesday to Labor Secretary > Solis,
> who is going to Dingell's district to participate in a retraining
> roundtable in Ypsilanti, where one of the GM's engine and transmission
> plants will be closed.
>
> But U.S. Chamber of Commerce President and CEO Tom Donohue raised > concerns
> about the degree to which the GM and Chrysler restructurings will > allow
> government and unions to influence what happens.
>
> "Our biggest concern with the restructuring plan ... is the > potential for
> governments and unions to influence production, product, workforce and
> management decisions in ways that could jeopardize the automakers' > chances
> for survival, put politics and special interests above sound business
> strategy, and disrupt our nation's trading relationships across the > world,"
> he said.
>
> Donohue said the Chamber will carefully monitor the new GM and > Chrysler
> LLC boards "and we will expose and fight any counterproductive > influence by
> government, unions, or politicians over decisions that should be > left to
> management."
>
> As part of its bankruptcy plan, GM will close nine plants and idle > three
> more. It will close its assembly plant in Wilmington, Del., in July > and the
> Pontiac, Mich., pickup truck plant in October, with assembly plants in
> Spring Hill, Tenn., and Orion, Mich., put on standby.
>
> Engine and transmission plans in Livonia, Flint and Ypsilanti, Mich.;
> Parma, Ohio, and Fredericksburg, Va., will close by December 2010.
>
> Parts stamping plants in Indianapolis and Mansfield, Ohio, will > close next
> year, while a stamping plant in Pontiac, Mich., will shut down by > December
> 2010 but remain on standby.
>
> Services and parts warehouses in Boston, Jacksonville, Fla., and > Columbus,
> Ohio, will close by the end of this year.
>
> On a related front, Chrysler President James Press and GM CEO Fritz
> Henderson are scheduled to appear before the Senate Commerce Committee
> Wednesday to talk about their decisions to close thousands of > dealerships
> throughout the country.
>
>
> http://www.nationaljournal.com/congressdai...090601_2772.php
>
> -----
> TAXES: PAPERMAKERS FIRE BACK AGAINST ATTACKS ON FUEL
> By Peter Cohn
>
>
> The war over "black liquor" continues, as lawmakers return from the
> Memorial Day recess and renew efforts to finance a massive healthcare
> overhaul bill.
>
> The American Forest & Paper Association has fired the latest salvo > in a
> letter late last week, telling competitor nations who have decried a > tax
> break for producing the liquid biomass fuel that their fears are > unfounded.
>
> In a letter to ambassadors from Canada, Brazil, Chile and the European
> Union, AF&PA President and CEO Donna Harman also notes that instead of
> bickering, pulp and paper-producing countries should be working > together
> "to secure support and recognition around the world for our industry's
> leadership" in producing renewable energy.
>
> Unfortunately for U.S. paper firms, other than pockets of support from
> Pacific Northwest, Southeast and Maine lawmakers there is powerful > domestic
> opposition to a tax credit they enjoy for making their "black > liquor" wood
> pulp-based fuel.
>
> As a healthcare offset, the Obama administration has proposed > closing what
> it calls a loophole that enables paper companies to reap an unintended
> windfall.
>
> The proposal has support from two influential lawmakers looking for > any
> and all methods to fund the healthcare effort -- Senate Finance > Chairman
> Max Baucus and House Ways and Means Chairman Charles Rangel, who > also have
> jurisdiction over international trade.
>
> Under current law, paper companies that burn a wood pulp byproduct > derived
> from a chemical conversion process -- known as black liquor -- can > claim a
> 50-cents-a-gallon tax credit. That provision was added to a 2007 tax > bill
> at the behest of Alaska seafood processors who derive energy from > fish oil.
>
> But its biggest beneficiaries have been paper firms, which are also > the
> biggest users of renewable energy in the country -- 28.5 million > megawatt
> hours of electricity a year, enough to power 3 million homes, > according to
> the AF&PA.
>
> Still, to qualify a producer must use a dash of fossil fuel, a quirk > of
> the law detested by environmental groups. The Obama proposal would > limit
> the credit's use by paper and pulp companies to fuel sold for use in a
> motor vehicle or boat, saving $1.2 billion.
>
> Unions representing paper mill workers back the existing credit.
>
> But international scorn has been heaped on the provision. Last week,
> ambassadors from nations with a heavy paper and pulp industry presence
> wrote to lawmakers that the tax break was an unfair subsidy that > puts their
> firms at a competitive disadvantage.
>
> They wrote that the United States could be subject to retaliatory > action
> through the World Trade Organization or their domestic remedies, > such as
> countervailing duties.
>
> Harman countered that there is no market distortion because U.S.
> production and exports were way down in early 2009 compared with > last year.
> She also wrote that U.S. firms use no more diesel than they ordinarily
> would and that fossil fuel output is "minimal" compared with the
> carbon-neutral fuel produced.
>
> Finally, the tax credit is no export subsidy because it is not > specific to
> the paper industry, Harman wrote, noting that "seafood processing, > animal
> fat rendering, and restaurants with spent cooking oil, to name a > few" also
> benefit.
>
>
> http://www.nationaljournal.com/congressdai...090601_6375.php
>
> -----
> HOMELAND SECURITY: HOUSE TO CONSIDER BAN ON AIRPORT BODY SCANS
> By Chris Strohm
>
>
> House lawmakers expect to take up legislation Wednesday that would
> prohibit government security officials from using controversial > whole-body
> imaging machines to screen airplane passengers at primary airport
> checkpoints.
>
> The machines are being tested at 19 airports by the Transportation
> Security Administration, with six airports allowing passengers to
> voluntarily go through them at primary security checkpoints and the > rest
> using scanners at secondary checkpoints.
>
> The machines use millimeter-wave technology that shows a three-> dimensional
> image of a passenger without clothes. The images allow security > officials
> to determine whether somebody is hiding threatening objects under > their
> clothes.
>
> But lawmakers and civil liberties advocates say the machines raise too
> many privacy concerns. In response, Reps. Jason Chaffetz, R-Utah, > and Carol
> Shea-Porter, D-N.H., have offered an amendment to the TSA > authorization
> bill that would prevent the machines from being used at primary
> checkpoints.
>
> "The TSA does great work, and I appreciate what the men and women are
> doing there trying to secure airplanes," Chaffetz said in a video on > his
> Web site. "But whole-body imaging goes too far."
>
> "It basically looks at your body naked. ... According to the TSA, > they can
> even see the sweat on somebody's back," Chaffetz added. "Nobody > needs to
> see my kids ... and see my wife naked in order to secure an airplane."
>
> TSA is evaluating its trial use of the scanners to decide whether more
> airports should use whole-body imaging at its primary checkpoints.
>
> "Over the course of testing this technology as the primary screening
> procedure in six airports, 99.6 percent of passengers choose this
> technology over other screening options," a TSA spokesman said. > "Passengers
> who do not wish to receive millimeter-wave screening can use the
> walk-through metal detector and undergo a pat-down procedure."
>
> TSA officials argue that privacy safeguards are in place. The security
> official who views the image is at a remote location; facial images > are
> blurred; and images are deleted immediately after viewing.
>
> While the amendment from Chaffetz and Shea-Porter is likely to get
> bipartisan support when the TSA bill comes to the floor Wednesday,
> Republicans and Democrats are at odds over other provisions in the > overall
> bill, which is the first agency authorization bill since TSA was > created.
>
> In a Homeland Security Committee report accompanying the bill, > Republicans
> complained that Democrats were rushing the measure to the House > floor with
> "unclear and unfunded mandates under an artificial sense of urgency."
>
> One provision Republicans oppose would allow the president to > determine
> whether former detainees at the military detention center at > Guantanamo
> Bay, Cuba, should be prevented from flying if they are released into > the
> United States. Republicans want such former detainees to be > automatically
> put on the no-fly list even if the Obama administration no longer > considers
> them a threat to national security.
>
> Another disputed provision would delay by two years a mandate > requiring
> TSA to screen all air cargo coming into the United States by passenger
> plane by August 2010. In the committee report, Republicans wrote > that the
> original deadline was one of several that Democrats created "for > political
> gain, without regard to feasibility or cost."
>
> The Democratic majority "now finds itself in the difficult situation > of
> walking back those policies," the GOP lawmakers added.
>
>
> http://www.nationaljournal.com/congressdai...090601_5285.php
>
> -----
> TECHNOLOGY: EXPERTS: CYBER CZAR'S AUTHORITY MUST BE RESOLVED
>
> The biggest question hanging over the White House cybersecurity
> coordinator position is whether that individual will have the > authority to
> marshal disparate agency efforts to safeguard information technology
> networks, tech insiders said today.
>
> Neither President Obama's Friday remarks nor a report summarizing a > 60-day
> review of the federal cybersecurity posture provided enough detail > to gauge
> whether the cyber czar will have the president's ear and the power > to drive
> change across government, said the experts, speaking at a briefing > hosted
> by the Congressional Internet Caucus Advisory Committee.
>
> "This is not necessarily going to turn out well," warned Stewart > Baker, a
> Washington attorney who served as Homeland Security Department > assistant
> secretary for policy under former President George W. Bush. "Every > agency
> has its own IT budget and wants to do things [its] own way."
>
> In addition to consulting and coordinating with a handful of > agencies, the
> individual will have a relationship with the Privacy and Civil > Liberties
> Oversight Board. The cyber coordinator, whom Obama said will wear hats
> within the National Economic Council and the National Security > Council,
> should hold the rank of deputy assistant to the president at > minimum, said
> James Lewis of the Center for Strategic and International Studies. > "If you
> put someone in place who does not have the authority or ability to > carry
> the mission out, having a good plan doesn't do that much," he said.
>
> Lewis pointed out Bush had a cybersecurity staffer under his national
> security adviser and a similar official within NSC who spoke > frequently but
> lacked influence. "Informal, ad hoc arrangements are no longer > enough," he
> said.
>
> Regardless of who becomes cyber czar, Lewis stressed that the > candidate
> should not be a Silicon Valley "rock star" or dot-com era guru.
>
>
> http://www.nationaljournal.com/congressdai...090601_3264.php
>
> -----
> HILL BRIEFS: HIGH COURT TO REVIEW BUSINESS-METHOD PATENTS
>
> Judiciary. The Supreme Court agreed today to consider what types of
> business methods qualify for patent protection in a case with > ramifications
> for the software, biotechnology and financial services industries,
> Bloomberg News reported. The justices said they will review a lower > court
> decision that narrowed the class of patentable inventions, excluding > some
> innovations that do not have a physical component. Because it came > from the
> federal appeals court that handles all patent appeals, the ruling had
> marked a watershed in U.S. intellectual property law. The case will > mark
> the first time since 1981 the Supreme Court has ruled on the types of
> innovations covered by the U.S. Patent Act.
>
>
> http://www.nationaljournal.com/congressdai...090601_1639.php
>
> -----
> HILL BRIEFS: MINN. HIGH COURT HEARS SENATE RACE ARGUMENTS
>
> Judiciary. Attorneys for former Sen. Norm Coleman, R-Minn., who is
> fighting a recount battle for his seat with Democrat Al Franken, faced
> skeptical questioning from Minnesota Supreme Court justices in a > crucial
> hearing on the case this morning, the Associated Press reported. > Coleman is
> challenging the rulings of a state recount board and a lower court > that
> Franken won the race by 312 votes. Associate Justice Christopher > Dietzen
> said Coleman's argument that thousands of absentee ballots had been
> wrongfully excluded had "no concrete evidence to back it up." The > attorney
> for Franken was grilled about whether the differences in the > acceptance of
> ballots did not show some evidence of deeper electoral problems that > the
> Coleman team described. Democrats have charged that Republicans are > just
> using legal delaying tactics to deny them a 60-vote majority in the > Senate.
> A Coleman attorney, Ben Ginsberg, declined to discuss whether > Coleman would
> continue to fight. "The answer to that question depends entirely on > what
> the Supreme Court does, so there's no point in abject speculation > about
> it," he said.
>
>
> http://www.nationaljournal.com/congressdai...090601_8070.php
>
> -----
> HILL BRIEFS: REID PULLS CLOTURE VOTE ON RAILROAD BILL
>
> Transportation. A freight railroad antitrust bill up for a cloture > vote in
> the Senate Tuesday has been pulled to give time for a joint plan to be
> drawn up by the Senate Commerce and Judiciary panels. Senate Commerce
> Chairman John (Jay) Rockefeller and Senate Judiciary Antitrust > Subcommittee
> Chairman Herb Kohl, D-Wis., informed colleagues in a letter today > that they
> asked Majority Leader Reid to pull the cloture vote on a bill by > Kohl that
> the Judiciary unanimously approved in early May eliminating antitrust
> protections for the freight rail industry. The two panels will bring > up a
> broader rail competition bill later. "We hope to shortly have a > bipartisan
> package that reforms the Surface Transportation Board and repeals the
> railroads' antitrust exemption available for the consideration by > the full
> Senate," they wrote, adding they want something enacted this year. > The move
> comes after Commerce panel leaders in both parties sent a letter to
> colleagues last week asking them to oppose the cloture vote on > Kohl's bill.
> They "strongly believe that regulation of railroads should be > addressed in
> a comprehensive manner rather than in a piecemeal fashion focused on > one
> narrow aspect," according to that letter. The House Judiciary > Committee has
> a similar bill to Kohl's that is likely to come up for a markup soon.
>
>
> http://www.nationaljournal.com/congressdai...090601_2449.php
>
> -----
> HILL BRIEFS: HEALTHCARE GROUPS RELEASE SAVINGS DETAILS
>
> Health. The six healthcare industry groups that pledged to President > Obama
> they would find $2 trillion in savings over the next 10 years detailed
> today how they will reach their goal. Those proposals could be at > least $1
> trillion using low-end estimates and could total as much as $1.7 > trillion
> based on high-end estimates. The proposals focus on improving the > quality
> and proper use of care, streamlining administration, and managing > chronic
> care better. Chronic care management proposals focus on disease > prevention
> and health promotion, with a particular focus on obesity.
>
>
> http://www.nationaljournal.com/congressdai...090601_6038.php
>
> -----
> HILL BRIEFS: COBURN RUNNING FOR SECOND TERM
>
> Senate Races. Sen. Tom Coburn, R-Okla., today announced he will seek
> re-election next year for a second term. He made the announcement at > an
> event in Tulsa and on his campaign Web site in a video that states, > "Only
> one leads the fight against government waste in Washington. Many times
> alone." The video also notes that Coburn "singlehandedly blocked more
> spending bills than any other senator." But Coburn, following in the
> footsteps of some other Republicans, also played up the fact that he
> "reached across the aisle" to work with President Obama to post > government
> spending reports online.
>
>
> http://www.nationaljournal.com/congressdai...090601_3278.php
>
> -----
> HILL BRIEFS: BYRD KEPT IN HOSPITAL DUE TO STAPH INFECTION
>
> People. Sen. Robert Byrd, D-W.Va., is still hospitalized after > developing
> a staph infection, his office said today. Byrd was admitted to the > hospital
> May 15 with a minor infection, then contracted a staph infection. > Byrd is
> being treated with antibiotics and is "responding well," according > to his
> office, but it remains unclear how long he will remain hospitalized.
>
>
> http://www.nationaljournal.com/congressdai...090601_8317.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "In a political campaign, there's no such thing as certainty."
>
> -- Sen. Arlen Specter, D-Pa., when asked on "Fox News Sunday" > whether he
> was certain he can beat Democratic Rep. Joe Sestak in a primary next > year.
>
>
> http://www.nationaljournal.com/congressdai...090601_2734.php
>

> CongressDaily PM for Tuesday, June 2, 2009
>
> --------------------
> CONTENTS
>
> DEFENSE: OBAMA TAPS GOP'S MCHUGH TO LEAD ARMY
> By Megan Scully, with Billy House contributing
>
>
> House Armed Services ranking member John McHugh has been tapped to > become
> Army secretary, President Obama announced today.
>
> McHugh would join Transportation Secretary LaHood, a former GOP House
> member from Illinois, as Republicans serving in a Democratic
> administration.
>
> "John shares my belief that a sustainable national security strategy > must
> include a bipartisan consensus at home," Obama said. "He hasn't > agreed with
> every decision my administration has made, but he brings patriotism > and a
> pragmatism that has won him respect on both sides of the aisle."
>
> If confirmed, McHugh would replace Pete Geren, a former Democratic > House
> member from Texas who became Army secretary in 2007 in the wake of
> revelations of substandard conditions at Walter Reed Army Medical > Center.
>
> Rep. Mac Thornberry, R-Texas, is seen as the frontrunner to replace > McHugh
> as ranking member, according to House GOP aides, although Armed > Services
> Air and Land Forces Subcommittee ranking member Roscoe Bartlett, R-> Md., is
> the next most senior member.
>
> A Thornberry spokesman would not comment on whether the Texas > lawmaker has
> had any conversations with party leaders, but said he is interested > in the
> ranking member slot.
>
> "Mac is anxious to serve and he's certainly going to take the > opportunity
> when it presents itself to discuss with the leader and others in > leadership
> how he can serve," he said.
>
> A Bartlett spokeswoman said her boss "remains interested" in the > position,
> but added that the focus today should be on McHugh.
>
> House Education and Labor ranking member Howard (Buck) McKeon also is
> giving the Armed Services post "serious consideration," his > spokeswoman
> said. McKeon, a senior Armed Services member from a district with > several
> large military installations, did not compete for the post last > year, but
> his spokeswoman said he sees this as a "unique situation."
>
> McHugh, 60, has represented upstate New York's 23rd District for nine
> terms. His district includes Fort Drum, where the Army's 10th Mountain
> Division is based.
>
> As ranking member, McHugh has reached across the aisle, most > recently on a
> defense acquisition reform bill that won unanimous congressional > support.
> And he has generally supported Obama's Afghanistan policy, including > his
> decision to send 21,000 more troops to the war zone.
>
> McHugh also has adopted a more moderate approach than many of his GOP
> colleagues to Obama's plans to close the U.S. detention facility at
> Guantanamo Bay, Cuba. He has refrained from accusing Democrats, as > some
> Republicans have done, of wanting to put out a "welcome mat" for
> terrorists.
>
> But McHugh, who is known for his candor, has also publicly > criticized the
> Pentagon this year, particularly for its handling of the FY10 budget.
>
> McHugh recently raised concerns that the Pentagon's internal budget
> deliberations were too secretive and has argued for more information > to
> explain its decisions. He also has said he fears the sweeping > changes made
> to defense programs in the FY10 request are dictating the outcome of > the
> comprehensive Quadrennial Defense Review now under way.
>
> About the Army's budget request, McHugh has called the 2.1 percent
> increase in funding "misleading" because it includes money for > programs
> previously paid for out of supplemental spending.
>
> "The Army is under tremendous pressure based partially on limited
> resources," McHugh said in his opening statement at a May 14 Army > budget
> hearing. "If we continue down this path, something has to break."
>
>
> http://www.nationaljournal.com/congressdai...090602_9138.php
>
> -----
> HOUSE RACES: TOP DEMS MIGHT HAVE TO SIT OUT N.Y. ELECTION
> By Erin McPike
>
>
> The nomination of Rep. John McHugh, R-N.Y., to be secretary of the > Army
> will kick off a competitive special election in one of the biggest
> congressional districts east of the Mississippi River.
>
> Obama announced the appointment this morning, setting the stage for a
> special election later this year. McHugh has held the seat since 1992.
>
> Democrats won a special election to replace now-Sen. Kirsten > Gillibrand,
> D-N.Y., in an adjacent district earlier this year and are eager to > try to
> claim McHugh's seat, but they might have to go to the polls without > two top
> candidates on the ballot.
>
> One Democratic operative familiar with the district said the party > "can't"
> pick state Sens. David Valesky or Darrel Aubertine because electing a
> Republican to replace either of them in Albany would result in an > evenly
> divided state Senate.
>
> But the Democratic Congressional Campaign Committee does have a list > of
> potential candidates to court, since the party has been preparing > for an
> eventual retirement by McHugh.
>
> The party is optimistic about a possible takeover because President > Obama
> carried the sprawling district by 5 points in last year's election.
> Republicans have a registration edge of about 46,500 voters in the
> district.
>
> Potential Republican candidates at this early stage include Robert > Taub,
> McHugh's chief of staff, and state Assemblyman Will Barclay. Barclay > lost
> to Aubertine in a special state Senate election last year.
>
> McHugh's departure from the House will leave Reps. Peter King and > Chris
> Lee as the only Republicans in New York's 29-member congressional
> delegation.
>
>
> http://www.nationaljournal.com/congressdai...090602_8896.php
>
> -----
> HEALTH: BAUCUS, ORSZAG AT ODDS OVER TAXING BENEFITS
> By George E. Condon Jr., with Michael Posner contributing
>
>
> Even as the White House launched a campaign today to push Congress to
> approve healthcare legislation by Oct. 1, differences over funding the
> overhaul played out in public.
>
> Senate Finance Chairman Max Baucus said at a briefing that he will > meet
> President Obama's timetable and will "pass a comprehensive, meaningful
> healthcare reform bill this year." But he said his committee will > look at
> taxing some parts of insurance benefits provided for workers by > employers,
> even though the administration opposes that.
>
> OMB Director Orszag said the administration is not budging from its
> opposition to the tax. "It was not in the president's plan," he > said. "It
> was not in the budget."
>
> The comments came as the president's Council of Economic Advisers > released
> a report indicating the nation's economy will be damaged and the > number of
> jobless Americans will double if an overhaul does not help curb > healthcare
> costs.
>
> Republicans remained unimpressed by the report. "We agree with the CEA
> report that healthcare savings would improve the health of the > economy,"
> said House Minority Whip Cantor. He complained that "the > administration
> continues to focus on a public relations strategy while providing > little
> detail about how they are going to follow through on their commitments
> without a massive tax increase on working families and small > businesses."
>
> Former OMB Director Douglas Holtz-Eakin said at a separate event > today he
> would take the projected savings in the administration's report > "with a big
> grain of salt." Christina Romer, chairwoman of the White House > Council of
> Economic Advisers, said slowing the growth rate of health costs > would be
> "very challenging" but that finding a way to cut costs was critical > and
> would "prevent disastrous budgetary consequences."
>
>
> http://www.nationaljournal.com/congressdai...090602_7502.php
>
> -----
> HEALTH: BAUCUS, CONRAD SIGNAL SPEEDY HEALTHCARE STRATEGY
> By Anna Edney, with Michael Posner contributing
>
>
> Senate Finance Chairman Max Baucus said today he expects President > Obama
> to tell Senate Democrats he wants a bill overhauling the nation's
> healthcare system on his desk by Oct. 1.
>
> Baucus and other Senate Democrats headed to the White House this > afternoon
> to talk health care with Obama and senior administration officials.
>
> Senate Budget Chairman Kent Conrad said today he plans to underscore > to
> Obama the importance of getting the costs effect right, "because > we're on a
> course that's entirely unsustainable. And it's entirely possible > that we
> could bend the cost curve the wrong way."Looking for more?
> For more on the healthcare reform debate, see our Healthcare Reform > page.
>
> Conrad, who sits on the Finance Committee, said there cannot be a > markup,
> expected in mid-June, without CBO scores. Despite the difficulty CBO > has
> had scoring some provisions, Conrad said the panel will be ready for a
> markup in a few weeks. "We need the scores to have a markup, and CBO
> assures us that we will have scores," he said.
>
> He admitted there will be some provisions CBO cannot score because no
> precedent exists.
>
> Asked why he thought Obama called senators to his office, Conrad > demurred.
> "I think because they enjoy our company and another chance to > visit," he
> joked.
>
> Baucus and Senate Health, Education, Labor and Pensions Chairman > Edward
> Kennedy are drafting separate healthcare bills that the two say will > merge
> on the Senate floor. Kennedy's bill appears to be shaping up as a more
> liberal bill, setting up a potential split among the healthcare > leaders.
>
> But Baucus, who is pushing a more bipartisan version, said merging the
> bills after markup will not "be difficult at all."
>
> Conrad said people must realize a far-left agenda will not garner > enough
> votes in the Senate to pass. "If we want to achieve something, we're > going
> to have to understand we don't, any of us, get precisely what we might
> like."
>
> Meanwhile, Kennedy, ailing from a brain tumor, will not return to > Congress
> this week as expected. "Senator Kennedy is doing a good job at > balancing
> his work on healthcare reform with his treatment plan, but he's not
> planning to be back on the Hill this week," said Kennedy spokesman > Anthony
> Coley.
>
>
> http://www.nationaljournal.com/congressdai...090602_8611.php
>
> -----
> APPROPRIATIONS: SUPPLEMENTAL LIKELY TO HAVE $3.1B FOR PLANES
> By Humberto Sanchez, with Megan Scully contributing
>
>
> Senate Appropriations Chairman Daniel Inouye today said he expects > $2.2
> billion for eight C-17 cargo planes and $904 million for 11 C-130 > transport
> aircraft to be included in the final version of FY09 war supplemental
> spending legislation Democratic leaders hope to finish this week or > early
> next week.
>
> Inouye and House Appropriations Chairman David Obey are working to
> finalize a tentative agreement reached Monday night, Inouye said. "I > think
> it's just about done," Senate Majority Leader Reid said this > afternoon.
>
> The aircraft procurement funds were included in the $96.7 billion
> supplemental passed by the House but not in the $91.3 billion Senate > bill.
>
> Inouye said he and Obey are working on compromise language that > would put
> restrictions on bringing detainees to the United States from > Guantanamo
> Bay, Cuba. Both the House and Senate bills included such provisions.
>
> The tentative agreement includes $5 billion to help boost lending at > the
> International Monetary Fund. The IMF funding is a priority for > President
> Obama, who committed to the funds at last month's G-20 meeting.
>
> Obama said it is part of a multinational effort to increase the > financial
> security of the IMF in the face of the global recession. While the > Senate
> included the funding in its package, the House did not.
>
> House Appropriations ranking member Jerry Lewis said the funding bill
> should not include the IMF assistance because it would take away > money that
> would otherwise be used to support the troops.
>
> "The reported deal struck between House and Senate Democrat leaders > will
> bail out foreign governments at the expense of our troops and provide
> international giveaways while our own economy is suffering," Lewis > said.
>
> "This irresponsible action puts the president's questionable IMF > policy
> experiment above our military, our security, and our economic > stability
> here at home," he added.
>
> Lewis added that "should this 'deal' stand, I will not support this
> legislation. My colleagues and I would like this to be a bipartisan > piece
> of legislation that gets adequate funding to our troops quickly. > There is
> still time to accomplish this and I look forward to working out these
> issues in a proper and open conference committee."
>
> House Minority Whip Cantor also opposes including the IMF funds. > "Handing
> over billions to the IMF not only saddles young Americans with more > debt
> but could fund terrorist activity - a complete affront to our troops
> combating terrorism across the globe," he said.
>
>
> http://www.nationaljournal.com/congressdai...090602_4034.php
>
> -----
> JUDICIARY: SOTOMAYOR HOLDS FIRST MEETINGS WITH SENATORS
> By Dan Friedman
>
>
> Previewing her likely response to a key Republican criticism, Supreme
> Court nominee Sonia Sotomayor said her opinions will reflect the > law, not
> personal opinions, in a meeting today with Judiciary Chairman Patrick
> Leahy.
>
> "Of course, one's life experience shapes what your views are, but
> ultimately and completely as a judge you follow the law," Leahy said
> Sotomayor told him when he asked how her background will influence her
> decisions. He said she used the phrase "ultimately and completely."
>
> Sotomayor has been ripped by Republicans like former House Speaker > Newt
> Gingrich, R-Ga., for a 2001 speech where she said, "I would hope > that a
> wise Latina woman with the richness of her experiences would more > often
> than not reach a better conclusion than a white male who hasn't > lived that
> life."
>
> Senate Republicans have been more restrained but expressed concern > about
> the statement. The White House has said she regrets her choice of > words.
>
> The meeting with Leahy was one in a series that Sotomayor has today. > With
> photo opportunities and media hordes on hand at each stop, the > meetings
> appear to be ceremonial courtesies and preliminary chances for > senators to
> question Sotomayor.
>
> Flanked by Phil Schiliro, the White House's head of legislative > affairs,
> and Stephanie Cutter, a Senate veteran tapped to coordinate the
> confirmation process, Sotomayor met this morning with Senate Majority
> Leader Reid and Judiciary ranking member Jeff Sessions.
>
> Meetings with Majority Whip Durbin and Minority Leader McConnell > were set
> for today. Leahy and Reid praised Sotomayor's experience as a trial > judge
> and a prosecutor. "We could not have anyone more qualified," Reid > said.
>
> Leahy said he will meet Wednesday morning with Sessions to discuss the
> timing of Sotomayor's confirmation hearing. They will likely discuss > an
> apparent disagreement over whether the committee's hearing should come
> before or after the August recess.
>
> Sessions, who like other Republicans has said senators need time to > review
> more than 3,000 opinions Sotomayor has issued as an appellate judge, > said
> Monday he opposes a hearing before September.
>
> "There's plenty of time after the August recess to have a confirmation
> before October, and that would be my preference," he said.
>
> Leahy today indicated he wants a July hearing. He said he has > rejected the
> option of a hearing this month, but September is too late.
>
> Citing "vicious" attacks by Republicans outside the Senate, Leahy said
> Sotomayor deserves a chance to defend herself sooner. It would be
> irresponsible "to leave her hanging out there that long," he said.
>
>
> http://www.nationaljournal.com/congressdai...090602_8384.php
>
> -----
> TRADE: KIRK PREFERS DIALOGUE ON CHINA DISPUTES
> By Peter Cohn
>
>
> Trade Representative Kirk today told a group of industry officials > doing
> business in China that the Obama administration prefers to resolve > trade
> disputes between the two countries through dialogue. But he added > that, if
> necessary, the United States would "not hesitate to use other tools, > such
> as dispute settlement" proceedings at the World Trade Organization.
>
> Kirk's speech at the U.S.-China Business Council, which represents > about
> 250 multinationals such as Boeing Co., Microsoft Corp. and Procter & > Gamble
> Co., came as Treasury Secretary Geithner and Secretary of State > Clinton
> issued a joint statement in Beijing announcing that Washington would > host
> the first U.S.-China Strategic Dialogue in late July.
>
> The dialogue "will focus on addressing the challenges and > opportunities
> that both countries face on a wide range of bilateral, regional and > global
> areas of immediate and long-term strategic interest," the > secretaries said.
>
> Kirk spoke positively about the benefits of trade with China, despite
> massive U.S. merchandise trade deficits that soared close to $270 > billion
> last year. He noted that U.S. exports to China have increased by 273
> percent since China's admission to the WTO in 2001, while U.S. > exports to
> the rest of the world have more than tripled.
>
> Kirk said that U.S. trade with China would continue creating more U.S.
> jobs "if we can work to shrink our trade imbalance with China, and > if China
> further opens its market for U.S. goods and services."
>
> The "preferred method of engagement with China will always be through
> dialogue," Kirk said, noting that the administration had recently > resolved
> a decades-old beef dispute with the European Union. Kirk said he would
> apply that same approach to trade disputes with China and had already
> engaged in some quiet diplomacy on information security products and
> intellectual property rights.
>
> But Kirk also said dispute settlement proceedings are also a > "healthy" way
> for trading partners to resolve differences. The United States is > committed
> to working "positively and cooperatively" with China, but it will "not
> yield on enforcing the right of American businesses and exporters to
> compete on a level playing field with China," he said.
>
> The Obama administration faces a major test on enforcement this > summer: a
> case at the International Trade Commission about a surge in > passenger car
> and light truck tire imports from China.
>
> The United Steelworkers union brought the case under Section 421 of > U.S.
> trade law, which permits the ITC to recommend trade remedies to > affected
> parties. The president can then decide whether to act on the
> recommendations.
>
> The Bush administration chose not to exercise its authority to act and
> unions and their allies in Congress are looking to President Obama to
> change that course.
>
> "Americans have the skill, creativity, and work ethic to compete
> successfully in the global marketplace. All they ask is that our > government
> fully enforces the rules agreed to by trading nations," Sen. Sherrod > Brown,
> D-Ohio, said this morning at the ITC hearing, where he testified on > behalf
> of workers at two Ohio tire plants. The final ITC report to the > president
> and USTR is due July 9.
>
>
> http://www.nationaljournal.com/congressdai...090602_8541.php
>
> -----
> FINANCE: SEC CHIEF SEES 'LOGIC AND EFFICIENCY' WITH CFTC MERGER
> By Bill Swindell
>
>
> SEC Chairwoman Mary Schapiro said today a possible merger between her
> agency and the Commodity Futures Trading Commission makes sense, but > the
> two agencies could work well together even if lawmakers do not > combine the
> two market watchdogs. Schapiro told the Senate Financial Services
> Appropriations Subcommittee that Congress ultimately would have to > make the
> decision on a possible merger, but noted that she had a unique > perspective
> since she served as chairwoman of the CFTC under the Clinton > administration
> and before that was an SEC commissioner.
>
> Sen. Jon Tester, D-Mont., pressed Schapiro whether investor protection
> would be better served with a combined agency in the aftermath of > problems
> at both understaffed agencies. Some critics have cited examples such > as the
> SEC's inability to detect fraudster Bernard Madoff and the CFTC not > having
> the authority to regulate the over-the-counter derivatives markets, in
> which American International Group placed bets that later doomed the > firm.
>
> "My personal view is there is a logic and efficiency that can be > achieved
> between a merger of the two agencies. But short of that, I also > think the
> two agencies could do a better job of working together to ensure > protection
> of investors," Schapiro said.
>
> Even without a merger, Schapiro added, she can have a strong working
> relationship with CFTC Chairman Gary Gensler "to ensure that > products and
> practices don't fall between the cracks between the two agencies, > and that
> we don't leave large swaths of the financial markets unregulated and
> unaccountable to the American public."
>
> Debate over a merger will pick up later this year as Congress begins > to
> revamp the nation's financial regulatory structure. But proponents > of such
> a merger will have to overcome reservations from both the Senate and > House
> agriculture committees, whose leaders fear that they would lose
> jurisdiction and power over a combined agency whose focus of food
> commodities would be a small portion of its overall charter.
>
> Senate Financial Services Appropriations Subcommittee Chairman Richard
> Durbin, D-Ill., and ranking member Susan Collins, R-Maine, said they > felt
> the SEC has been underfunded. Even though the Obama administration has
> proposed an FY10 budget of $1.026 billion, a 7 percent increase from > FY09,
> Collins warned the budget would do little to expand agency personnel
> because of attrition. It currently has 3,652 full-time employees. > She asked
> Schapiro whether it would be helpful to ramp up staffing at the > agency. "We
> can use more boots on the ground, absolutely," Schapiro said.
>
>
> http://www.nationaljournal.com/congressdai...090602_7714.php
>
> -----
> LABOR: HARKIN: REID WILL ALLOW CARD-CHECK VOTE
> By Kasie Hunt
>
>
> Senate Majority Leader Reid will allow a vote on labor's favored > version
> of the Employee Free Choice Act before the end of the year if senators
> cannot find a compromise that 60 senators can support, the bill's > chief
> Senate proponent said today.
>
> "I'm hopeful that our negotiations will bear fruit and that we'll > have a
> reasonable compromise that will be supported by 60 people," said > Sen. Tom
> Harkin, D-Iowa. "There will come a time when if that falls through, > I have
> the assurances from Harry Reid that we'll just bring the original > bill to
> the floor, we'll have a vote."
>
> Reid's office did not respond to requests for comment.
>
> The original legislation strips employers of the ability to demand a
> secret ballot election before workers can form a union. It also > requires
> management and labor to use binding arbitration to get a first > contract if
> they cannot agree within the first 120 days of bargaining.
>
> Harkin said he is meeting today with some moderate Senate Democrats.
> Forcing a vote could put some of them -- including Sens. Blanche > Lincoln
> and Mark Pryor of Arkansas, Arlen Specter of Pennsylvania and Dianne
> Feinstein of California -- in a difficult spot. Feinstein has > floated using
> mail-in ballots as an alternative to the card check provision of the > bill.
> Quicker elections are a possibility.
>
> Specter has said he is a proponent of "last best offer" arbitration, > in
> which labor and management submit offers to an arbitrator who > decides the
> one to be used. The goal is to discourage both sides from submitting
> extreme proposals for fear the arbitrator will accept the other side's
> offer.
>
> Specter said last month that he was optimistic about prospects for a
> compromise. He faces a likely primary challenge from Rep. Joe Sestak > and
> will likely need the support of organized labor in the contest. > Meanwhile,
> the U.S. Chamber of Commerce flew small-business leaders to > Washington to
> meet with Feinstein and other members today and Wednesday, when they > will
> push against a compromise.
>
>
> http://www.nationaljournal.com/congressdai...090602_6582.php
>
> -----
> HEALTH: TOBACCO BILL CLEARS FIRST HURDLE IN SENATE
> By David Hess
>
>
> Senators voted overwhelmingly today to open debate on legislation that
> would result in federal regulation of tobacco, a 10-year, $5.4 billion
> proposal granting the FDA the authority to set rules for the > content, sales
> and marketing of cigarettes and other tobacco products.
>
> By a vote of 84-11, the Senate brushed aside filibuster threats -- > mainly
> from tobacco-state lawmakers -- to set the stage for a full-fledged > debate
> and almost certain passage of the bill that has passed the House by > a wide
> margin and would likely be signed into law by President Obama.
>
> Senate Majority Leader Reid said earlier this week he would work with
> Minority Leader McConnell, who voted against cloture, on scheduling
> expected amendments to the measure when formal debate gets under way.
>
> Once the bill passes the Senate, it will go to a conference with the > House
> to reconcile rather small differences between the two versions.
>
> The bill does not ban the sale of cigarettes but gives FDA the legal > power
> to set standards for their ingredients to make them less addictive > and less
> harmful to smokers.
>
> Sen. Christopher Dodd, D-Conn., one of the principal sponsors, said he
> hoped the bill would deter young people from starting smoking and help
> reduce the incidence of chronic illness caused habitual use of tobacco
> products. "That's what this bill is all about," he said today.
>
> Some of the Republicans bristled at the "user fees" in the > legislation to
> pay for the FDA's new enforcement efforts. Those fees would amount > to $235
> million in FY10 and rise to $719 million by FY19 -- for a total of > $5.4
> billion over the decade.
>
> Sen. Richard Burr, R-N.C., called the measure a "tax hike" in > disguise.
> He, along with fellow tobacco-state senators McConnell, Kay Hagan, D-> N.C.,
> James DeMint, R-S.C., and Jim Bunning, R-Ky., indicated they would > offer
> amendments to moderate the bill's impact on the tobacco industry in > their
> states. Hagan was the lone Democrat voting no.
>
> In addition to controlling the amount of addictive nicotine in tobacco
> products, the bill would regulate marketing and advertising, > prohibiting
> such claims as "light," "low tar," "ultra light" and "mild."
>
> It would also require more prominent labeling of the health effects of
> tobacco use and ban flavor additives, except menthol, that critics > say are
> being used to lure teenagers into smoking.
>
>
> http://www.nationaljournal.com/congressdai...090602_9187.php
>
> -----
> HILL BRIEFS: VISCLOSKY TO TEMPORARILY LEAVE PANEL POST
>
> Appropriations. Embattled House Energy and Water Appropriations
> Subcommittee Chairman Peter Visclosky, D-Ind., announced today he > will ask
> panel member Rep. Ed Pastor, D-Ariz., to temporarily take over work > on the
> FY10 spending bill. His announcement comes after federal investigators
> recently subpoenaed Visclosky's offices as part of a probe of the PMA
> Group, a defense lobbying firm that was disbanded this year after > the FBI
> raided its Virginia headquarters in November. "I have conducted > myself with
> integrity out of respect for the people who I represent, the House of
> Representatives, and myself," he said in a statement. "I have > represented
> the people of Northwest Indiana to the best of my ability and I have > always
> abided by the law and adhered to the rules and code of ethics of the
> House."
>
>
> http://www.nationaljournal.com/congressdai...090602_5095.php
>
> -----
> HILL BRIEFS: BOXER: HIGHWAY TRUST FUND NEEDS AT LEAST $5B FOR FY09
>
> Transportation. Senate Environment and Public Works Chairwoman Barbara
> Boxer said today the Highway Trust Fund will need an additional $5 > billion
> to $7 billion by August to continue work on current construction > projects
> through the end of FY09. Speaking at a hearing on the nomination of > Victor
> Mendez for Federal Highway Administrator, Boxer said that, according > to
> Obama administration officials, the fund will also require an > additional $8
> billion to $10 billion to remain solvent through the end of FY10. > Also at
> the hearing, Senate Environment and Public Works ranking member James
> Inhofe criticized the administration for hosting a conference call > about
> the trust fund without inviting Republican staff to participate. > "The last
> administration was widely criticized last August for not being more > open
> and transparent with Congress and states over this very issue," Inhofe
> said. Inhofe won a guarantee from Mendez that the Federal Highway
> Administration would share information equally and respond to > questions
> from both Republicans and Democrats.
>
>
> http://www.nationaljournal.com/congressdai...090602_3910.php
>
> -----
> HILL BRIEFS: JUSTICE IG TO RELEASE EXIGENT LETTER REPORT
>
> Judiciary. The Justice Department's watchdog will soon release a > report
> critical of the FBI's use of exigent letters to demand information. > Such
> issuances are intended for emergencies, but they were sent numerous > times
> to telecommunications firms in nonemergencies. The audit follows a > 2007
> report by Justice Department Inspector General Glenn Fine that > documented
> the distribution of more than 700 letters as well as the issuance of
> administrative subpoenas known as national security letters without
> adequate justification and oversight. FBI General Counsel Valerie > Caproni
> downplayed the report at a technology conference today, noting that > all of
> the conduct in question took place prior to 2006 and the department
> subsequently implemented stricter controls. Fine's initial report > spurred
> intense congressional scrutiny, most recently at a March hearing of > the
> Senate Judiciary Committee, when Judiciary Chairman Patrick Leahy > pressed
> FBI Director Mueller for assurances that appropriate steps had been > taken
> to prevent further exigent letter abuse. Leahy said he was worried > that
> records illegally obtained through the requests may have been
> inappropriately retained.
>
>
> http://www.nationaljournal.com/congressdai...090602_3124.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "I don't go to the Hill much these days -- at least the Senate side --
> since I started raiding their staffers."
>
> -- Trade Representative Kirk at a speech today introducing two > deputies,
> Demetrios Marantis and Carol Guthrie. Marantis was Senate Finance > Chairman
> Max Baucus' lead trade staffer, and Guthrie was his communications > director
> before joining the administration earlier this year.
>
>
> http://www.nationaljournal.com/congressdai...090602_4577.php
>

> CongressDaily AM for Wednesday, June 3, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: COVERAGE MANDATE GAINS MOMENTUM
> By Anna Edney and Kasie Hunt with George E. Condon Jr., and Cyra > Master
> contributing
>
>
> The likelihood that healthcare overhaul legislation will include a
> requirement that individuals purchase health insurance appears to be
> getting closer to reality.
>
> Although the Senate Finance Committee indicated they likely will > include
> an individual mandate in their bill, the Senate Health, Education, > Labor
> and Pensions Committee and President Obama had yet to come down
> definitively on the idea, particularly given that Obama did not > include
> such a mandate from his health plan during the presidential campaign.
>
> But Sen. Jeff Bingaman, D-N.M., one of HELP Chairman Edward Kennedy's
> deputies on health care, told Senate Democrats Tuesday that health > reform
> legislation being crafted by the HELP Committee will include an > individual
> mandate.
>
> According to a summary of a presentation that Bingaman gave Senate
> Democrats during their policy lunch, Bingaman said the panel's > healthcare
> overhaul will include three major points: an individual mandate; > federal
> support for businesses and individuals to purchase health insurance,
> including an expansion of Medicaid; and insurance industry changes > to make
> coverage more equitable.
>
> A summary of the HELP Committee's legislation making its way around
> Capitol Hill included the aspects Bingaman touched on.
>
> At the same time, HHS Secretary Sebelius told House appropriators > Tuesday
> that Obama is open to discussing an individual mandate.
>
> "A number of members of Congress are very committed to an individual
> mandate, as have some of the stakeholders at the table," she told > the House
> Labor-HHS Appropriations Subcommittee. "He is open to engaging in that
> conversation with Congress."
>
> Sebelius reiterated Obama's opposition to a single-payer system and to
> ending the tax exclusion for health benefits as part of broader health
> reform. "I do not support and the president does not support a > single-payer
> system," she said, adding, "The president does not support > dismantling the
> system that we have for employer-based health systems."
>
> OMB was ambiguous about the president's position on taxing
> employer-sponsored health benefits. An official at OMB stressed > Tuesday
> evening that "the administration is open to all ideas."
>
> "It was discussed, and it's on the table. It's an option," Senate > Finance
> Chairman Max Baucus said after a meeting between Obama and 24 Senate
> Democrats Tuesday. Pressed on the matter, Baucus said, "He said it's
> something he might consider." But then he added, "I forget his exact > words.
> I don't want to overstate it, so let's leave it at that."
>
> Obama stressed during the meeting that the next few months would be a
> "make or break period" for a healthcare overhaul and pushed for final
> healthcare legislation to cross his desk by October.
>
> The meeting included talk of a strong desire to include a public plan
> option in a healthcare overhaul.
>
> "The sentiment in the room, from the president to the rest of us, is > the
> public plan option will keep the insurance industry honest," Sen. > Sherrod
> Brown, D-Ohio, said.
>
> Inclusion of a public plan decreases the chances of a bipartisan bill
> emerging from the process with Republicans largely opposed to the > idea.
>
> Republicans complained about a lack of a White House invitation, > noting
> the contrast between a lack of their presence and Democrats' claims > the
> process will be bipartisan. "The president wants this to be a > bipartisan
> process. He has met with congressional Republicans throughout the > process,
> and he'll continue to do so," a White House spokesman said.
>
> Republicans were noticeably absent from a Senate HELP meeting Tuesday
> where senators discussed prevention sections of legislative language > the
> committee has been crafting. HELP Democrats will meet again today on
> coverage issues and Friday with Republicans on the proposals.
>
> As lawmakers met on Capitol Hill and at the White House, former Senate
> Majority Leader Tom Daschle, D-S.D., and former HHS Secretary Michael
> Leavitt said they are less optimistic about a bill's chances. At a > joint
> appearance at the National Press Club Tuesday, Daschle -- Obama's > initial
> pick for HHS secretary and healthcare reform coordinator before > stepping
> aside due to tax problems -- said the possibility of comprehensive > change
> is "no better than 50-50." Leavitt said he believes there is a > political
> imperative to pass something, but it will most likely be "an > incremental
> approach where they take the few things we can agree upon ... put them
> together into something they'll call healthcare reform."
>
> As the White House launches itself into the debate, Leavitt said that
> while there are many proposals on which the parties can agree, he > feels
> most of the bills coming out of Congress focus on the contentious > measures.
> The biggest disagreement is over the public plan option, which > Leavitt said
> "relies so heavily on the expansion of already trouble entitlements."
> Daschle said a public plan will cause the most controversy and cited
> malpractice issues and mandates as other potential trouble spots.
>
>
> http://www.nationaljournal.com/congressdai...090603_3427.php
>
> -----
> ENVIRONMENT: RANGEL, PELOSI GET WIRES CROSSED A BIT ON CLIMATE CHANGE,
> HEALTH CARE ORDER
> By Darren Goode and Peter Cohn, with Billy House contributing
>
>
> House Ways and Means Chairman Charles Rangel Tuesday said House > Speaker
> Pelosi informed him she wants his panel to tackle climate change
> legislation before health care, perhaps sparking a reversal to > Rangel's
> initial plans.
>
> Speaking at a tax policy conference after an hourlong meeting with > Pelosi,
> Rangel said she brought up "the need for our committee to pass the
> president's health reform bill ... but she wants before we do that > to pass
> the climate control bill."
>
> After his speech, Rangel said the schedule had not been decided and > that
> he first needed to meet with his committee members to discuss the
> priorities. "I may have misspoke," he said. He indicated that moving > on
> healthcare reform might be an easier and faster lift. "We've got a > head of
> steam right here with the health bill," said Rangel, who was on his > way to
> meet with Treasury Secretary Geithner and White House officials. > "You know,
> no matter what the speaker said or didn't say, we have to go back > and see
> what's doable and what's not doable. And we don't have any > opposition to
> anything; we just want to be able to do our committee work in a way > that
> can make the Congress proud."
>
> Rangel said it wasn't important which agenda item moved first and that
> there was "no emotional reason" to favor climate change or health > care over
> the other. "You guys are reporters, not lobbyists. We're going to do > both
> of them," he said. "At the end of the day, I want to get done what > we can
> get done, without any impediments."
>
> Rangel later told reporters after early evening votes that climate > change
> could go first if all goes smoothly. "If we can package the energy > bill so
> that it does not interfere with our ability to put a bill on the
> president's desk on health care, we'll move it. There's no reason > for me
> not to want to do it," he said. "But health care is my priority. OK? > And
> there's nothing inconsistent with that."
>
> While some of the other eight committee chairmen with partial > jurisdiction
> over a bill the Energy and Commerce Committee passed shortly before > the
> Memorial Day recess might skip holding a formal markup, Rangel said, > "We're
> going to have a real, true markup. It's in our jurisdiction; we owe > it to
> the committee and to the Congress to have a markup."
>
> Pelosi met separately Tuesday with Rangel and Agriculture Chairman > Collin
> Peterson, two skeptical Democratic panel leaders who are needed to > help
> shepherd at least pieces of a climate bill to and through the House > floor.
> Rangel and Peterson think a carbon market could be ripe for the
> manipulation and speculation that has tainted financial and commodity
> markets.
>
> Peterson has a list of concerns shared by other rural Democrats, > including
> how the bill determines the carbon footprint of corn-based ethanol. > He said
> his meeting with Pelosi went well, and he plans to meet with Energy > and
> Commerce Chairman Henry Waxman today. He said Pelosi did not > indicate a
> specific timeline for moving a bill.
>
> Pelosi -- during a briefing about a recess trip she led to China on
> climate change and human rights -- danced around the details of her
> meetings with Rangel and Peterson and any timing for doing a bill > other
> than wanting something before international climate change talks > start in
> Denmark in December. "I'm optimistic that we will be able to move > forward
> in a timely fashion so that legislation will pass the House and send a
> clear message about Copenhagen. But I'm not putting any deadline on > it,"
> she said. "We will go to the floor when we are ready."
>
> Peterson and Rangel "will pass bills out of their committees when we > are
> ready," she said. "But I think that progress is being made on all > those
> scores." When asked what kind of progress, Pelosi said, "I think > I'll leave
> it up to the chairmen to talk about what their plans are and how > they go
> forward in having their own discussions and marking up the bill." Her
> office declined to elaborate when asked about Rangel's comments.
>
> The Senate is on a far slower track. Senate Environment and Public > Works
> Chairwoman Barbara Boxer Tuesday did not give a timeline for marking > up a
> bill in her panel, including whether it would happen this summer. > "It could
> be in two weeks; it could be in five weeks; it could be in eight > weeks. I
> can't tell you," she said. She is first trying to forge a deal to > get 60
> votes in the full Senate before holding what would likely be a quick
> markup.
>
> One of the key Democrats she is negotiating with, Michigan Sen. Debbie
> Stabenow, was one of 17 Senate Democrats -- with several others > represented
> by aides -- who attended an hourlong briefing Tuesday with Waxman, > Energy
> and Environment Subcommittee Chairman Edward Markey, D-Mass., and > Rep. Rick
> Boucher, D-Va., on the Energy and Commerce bill.
>
> "I think they made great progress," Stabenow said, though there is the
> "one big area" to work on regarding how the agricultural sector > could help
> reduce carbon emissions. It would be "very positive," she said for the
> Agriculture Department to have a role and said staff talks have > started
> with Peterson. (See related story, page 14.)
>
> Boucher said what he took away from Tuesday's meeting was that > senators
> "are seeking to learn from the House experience" in finding > compromise and
> said he has been invited to talk with another group of senators in a > couple
> of weeks in a briefing hosted by Sen. Mark Warner, D-Va. Boucher > will be
> joined then by fellow Energy and Commerce Democratic Reps. Mike > Doyle of
> Pennsylvania and Jay Inslee of Washington, who led efforts to give > help in
> the bill to industries such as steel, aluminum, paper and cement. > Boucher
> said that briefing will be with senators representing states whose
> electricity is primarily produced with coal.
>
> Tuesday's briefing was part of Boxer's "Tuesday and Twelve" group that
> meets in Senate Foreign Relations Chairman John Kerry's offices. EPA
> Administrator Jackson will visit the group next week. Boxer is > aiming to
> convince Democrats from manufacturing, auto, coal and other industrial
> states who might be swayed, given the various deals made to appease
> Democrats on the House Energy and Commerce panel. Boxer is hosting a
> briefing with Energy and Commerce aides for all senators today on the
> climate portions of the bill.
>
> Perhaps underscoring how Boxer will use the Energy and Commerce bill > as
> precedent for her own, the environment-business U.S. Climate Action
> Partnership has been asked Friday to come and talk to Environment and
> Public Works aides about its blueprint, which Waxman and Markey > largely
> used for their bill.
>
> Meanwhile, Senate Energy and Natural Resources Chairman Jeff > Bingaman said
> he hopes to wrap up an energy bill in his panel by next week that > could be
> merged with Boxer's bill. He is expecting several amendments to a > renewable
> electricity production mandate he is still fine-tuning. He said > there were
> 49 amendments pending to that mandate at last count. "We're still > working
> to see if we can accommodate some of the amendments," he said. That > might
> include exempting new nuclear energy from the baseline of that > mandate,
> which Bingaman said "depends on where we are with other aspects" of > the
> talks.
>
> Two Republicans -- Sens. Sam Brownback of Kansas and Bob Corker of
> Tennessee -- at a markup shortly before the Memorial Day break helped
> Bingaman secure majority opposition on the panel to an attempt by > Sen. Jeff
> Sessions, R-Ala., to block a renewable electricity mandate from the > bill.
>
> While Brownback showed interest in backing such a mandate, Corker > Tuesday
> said he does not support it but voted against Sessions to set up
> negotiations for including separate language to aid nuclear power and
> offshore energy production. "I realized there are going to be some > things
> in any bill that I don't like," Corker said. "But I also hope > there's some
> things in it that my friends on the other side of the aisle don't > like."
>
> Corker did not have any details and is still talking to industry > officials
> on nuclear and oil and gas production ideas.
>
> Perhaps the other big issue left for Bingaman to do in his panel is a
> section on oil and gas production, which the chairman said a draft of
> should be available in the next couple of days. He wants the > centerpiece to
> be a robust inventory of oil and gas supply, while Republicans are > looking
> for more expedited language boosting domestic production.
>
>
> http://www.nationaljournal.com/congressdai...090603_5902.php
>
> -----
> TAXES: RANGEL ASKS BUSINESS INTERESTS TO STEP UP FOR OVERHAUL
> By Peter Cohn
>
>
> House Ways and Means Chairman Charles Rangel Tuesday asked for help > from
> the business community in the upcoming tax code overhaul effort, > which is
> likely to target some sacred cows even as overall corporate rates are
> lowered.
>
> Speaking to the United States Council for International Business, > Rangel
> told the assembled industry officials his door was open, just as
> stakeholders have been invited to participate in the healthcare > debate. But
> he informed them they must be prepared to make sacrifices or risk > having
> their concerns ignored in the final product.
>
> "We expect that you would be in a position to know that if you don't > play
> in terms of helping us to wipe out some of the complexities we have in
> terms of the individual tax code or the corporate tax code ... if > you can't
> deal with people who are there to try to do the right thing, then it > means
> the Congress, the Ways and Means Committee, the Finance Committee, is
> really going to move on without you," Rangel said.
>
> Rangel assured corporate executives that his desire remains to lower > the
> corporate tax rate from 35 percent to as low as 28 percent, which is
> slightly more generous than in a bill he offered in 2007. But he > said the
> pain might be similar in terms of revenue-raisers to help pay for it,
> noting in particular his and President Obama's proposal to tax > companies'
> overseas earnings.
>
> "Please take into consideration the arguments that we have in trying > to
> believe that we have to raise revenue ... and that we believe people > should
> pay a fair tax on monies that they earn," Rangel said. "If we all come
> together knowing that in this year, certainly in this term of the
> president, we're going to have tax reform, that gives us plenty of > time to
> talk about the equities and the inequities and to make your case."
>
> He stressed that companies should understand that "politically, the > whole
> idea, now more than ever, as to where those jobs are going to be > located,
> will have to be an influence on the decision that you make."
>
> Rangel said he thought he made great progress on overhauling the > corporate
> tax code with former Treasury Secretary Henry Paulson under President
> George W. Bush. He said he "stole from Paulson" most of the revenue-> raising
> items in his 2007 tax reform bill, which he refers to as "loophole
> closers." Part of the problem, Rangel said, was that he could not > secure a
> GOP commitment not to attack the bill as laden with tax increases.
>
> "That's the only way you can't move forward. If we're going to have a
> group of people that say generally speaking they're at a disadvantage
> because of the tax rates, then they have to be able ... to assist us > so
> that it would help cut the political pain of those people that were > losing
> preferential treatment," Rangel said. "But if we're going to find a > group
> of people that are going to say that we don't want anyone to lose the
> benefits that they receive, then of course politically we can't do > anything
> about it."
>
> Bush's 2001 and 2003 tax cuts expire on Dec. 31, 2010, providing > much of
> the impetus for action next year. Lawmakers have little interest in
> rehashing the annual alternative minimum tax fight much longer. A > series of
> business and individual tax provisions expire this year, which > lawmakers
> are likely to extend by a year to give more steam to the tax reform > effort.
>
> Anne Mathias, an analyst with Concept Capital, wrote in a research > note
> last week that the "practical deadline" for lawmakers to act next year
> might be as early as March or April, given the tax-filing deadline > of April
> 15. She wrote that the more important "political deadline" for a tax > reform
> bill might be the end of June, before the election-year campaign > crunch
> begins. "No politician wants to go into an election with a massive > tax bill
> unfinished," Mathias wrote.
>
>
> http://www.nationaljournal.com/congressdai...090603_5157.php
>
> -----
> CAMPAIGN FINANCE: FEC STILL AWAITS OFFICIAL NOTICE OF SPECTER'S PARTY
> SWITCH
> By Carrie Dann
>
>
> Sen. Arlen Specter may now have a "D" next to his name, but he is > still a
> Republican in the eyes of the FEC.
>
> The Pennsylvania lawmaker's campaign committee, Citizens for Arlen
> Specter, has yet to file paperwork with the FEC to reflect his April > 28
> announcement that he will run as a Democrat in his bid for Senate
> re-election next year.
>
> According to campaign finance laws, a candidate's committee must > report
> any change or correction of information contained in its > registration forms
> within 10 days of the change, including party affiliation.
>
> But almost a month after that deadline passed, the FEC has not > received
> updated forms from Specter's committee, an agency spokesman said > Tuesday.
>
> Specter's stunning announcement in April threw his campaign's finance
> infrastructure into disarray.
>
> His finance director resigned shortly afterward. Then Huckaby Davis > Lisker
> -- the Virginia-based accounting and consulting business that helped
> Citizens for Arlen Specter comply with FEC rules -- dropped the > committee
> as a client because the firm only represents Republicans.
>
> But now that the newly minted Democrat has begun to rebuild his
> fundraising operation, current and former consultants to Specter > expect
> that his committee will soon have everything under control.
>
> "We are planning to send [the revised paperwork] in the next few > days,"
> said Stephen Harmelin, who serves as the treasurer for Specter's 2010
> campaign.
>
> It is not uncommon for lawmakers, especially incumbents, to forget > to file
> FEC forms to indicate their intention to raise money for a future > race.
> Penalties for past cases in which committees have been found to be in
> violation of campaign finance laws have ranged from letters of > admonishment
> to civil penalties.
>
> In 2005, the FEC penned a letter of complaint to Specter's campaign
> committee after it began collecting funds intended for use in the 2010
> Senate race before Specter filed an official statement of candidacy.
>
> Citizens for Arlen Specter never responded to the FEC's inquiry, > although
> the committee did adhere to subsequent FEC deadlines, an agency > spokesman
> said.
>
>
> http://www.nationaljournal.com/congressdai...090603_1553.php
>
> -----
> DEFENSE: SCRAMBLE BEGINS FOR MCHUGH'S POST ON ARMED SERVICES
> By Megan Scully
>
>
> The race is on for the top Republican slot on the House Armed Services
> Committee that is expected to be vacated by Rep. John McHugh, R-> N.Y., whom
> President Obama has nominated to become Army secretary.
>
> Only a few hours after Obama announced his decision to name McHugh > to the
> Army's top civilian post, House Education and Labor ranking member > Howard
> (Buck) McKeon of California and Rep. Roscoe Bartlett, R-Md. -- both > senior
> members of the Armed Services panel -- said they would seek to succeed
> McHugh.
>
> "The coming years are poised for tough challenges for our men and > women in
> uniform and I stand ready to lead as a strong voice for Republicans,"
> McKeon said in a statement Tuesday. "I'm looking forward to > discussing my
> bid in the coming days with my fellow Republican colleagues."
>
> Bartlett, who is ranking member of the Armed Services Air and Land
> Subcommittee and is just ahead of McKeon in seniority, announced his
> intention of seeking the seat a few hours earlier.
>
> "With an ongoing war against terrorism on two fronts in Iraq and
> Afghanistan and the imminent beginning of markup of the annual defense
> authorization bill, I have great confidence that the House Republican
> Leader John Boehner and my colleagues will recognize the importance of
> ensuring continuity and pay close attention to my 17 years on the > House
> Armed Services Committee," Bartlett said in his statement.
>
> At least one other senior Republican on the committee, Rep. Mac > Thornberry
> of Texas, has expressed interest in replacing McHugh.
>
> A Thornberry spokesman said Tuesday night that the lawmaker -- who > ranks
> just after McKeon and Bartlett in seniority on the committee -- > already had
> called Republican steering committee members and had spoken with party
> leaders.
>
> The spokesman said it is not something "we fight on the front page > of the
> paper," but added, "He is definitely in [the contest]."
>
> Like Bartlett, Thornberry was beaten out by McHugh for the committee
> leadership post last year.
>
> McKeon, an avid fundraiser and close Boehner ally, would have to > give up
> his post as the Education and Labor Committee's ranking member.
>
> McKeon is in his ninth term from California's 25th District, which has
> several large military installations, including the sprawling Fort > Irwin
> National Training Center and the China Lake Naval Air Weapons Station.
>
> Bartlett, also in his ninth term, served in the previous Congress as
> ranking member of the Armed Services Seapower Subcommittee, while
> Thornberry, in his eighth term, comes from a north Texas district > that is
> home to a Bell Helicopter V-22 plant. Thornberry served in the > previous
> Congress as ranking member of the Armed Services Terrorism > Subcommittee.
>
>
> http://www.nationaljournal.com/congressdai...090603_5851.php
>
> -----
> TELECOMMUNICATIONS: OBAMA TO NAME GOP'S MCDOWELL TO SECOND FCC TERM
> By David Hatch
>
>
> The White House Tuesday announced President Obama's intent to nominate
> Republican FCC regulator Robert McDowell for a second term after > months of
> deliberation by Senate GOP lawmakers over who to recommend for the
> commission.
>
> McDowell, known for an independent streak, occasionally has broken > ranks
> with GOP colleagues and sided with Democrats on crucial votes.
>
> The development comes as the Senate Commerce Committee looks to June > 17
> for a nomination hearing that could include up to four new prospects > for
> the five-member commission.
>
> If paperwork on the choices can't be finalized on time, the panel > would
> hold a hearing on wireless communications issues that day, sources > said.
>
> Senate Commerce Chairman John (Jay) Rockefeller has been eager to > confirm
> Julius Genachowski, a confidante of President Obama and his chief tech
> adviser during the campaign, as FCC chairman. He would replace Acting
> Chairman Michael Copps, who would resume being a Democratic > commissioner.
>
> The president plans to nominate Mignon Clyburn, a South Carolina > regulator
> and daughter of House Majority Whip Clyburn, to fill another > Democratic
> seat.
>
> Meanwhile, Senate Commerce ranking member Kay Bailey Hutchison and > Senate
> Minority Leader McConnell appear to have settled on Texas native > Meredith
> Baker, a Commerce Department official during the Bush > administration, for
> an existing GOP vacancy.
>
> In a statement Tuesday, McConnell took credit for recommending > McDowell.
>
> While McDowell can't be confirmed until after June 30, when his term
> expires, he can appear before Senate Commerce before that date. In an
> interview Friday, he pledged to focus on promoting economic growth > if he
> remains at the agency.
>
> The decision to retain McDowell for another five-year term is a blow > to
> AT&T, whose chief lobbyist, Jim Cicconi, sought his ouster, sources > said.
> Cicconi wanted payback, they explained, for McDowell's 2006 recusal > from
> casting the tie-breaking vote on the AT&T-BellSouth merger, forcing > the
> companies to make additional concessions to win approval. McDowell > stepped
> aside to avoid any perception that his background as a telecom > lobbyist
> might unduly influence his decision-making.
>
> "While we have not always agreed on every issue," McDowell's > knowledge and
> experience "will be of value to the new FCC," Cicconi said in a > statement.
>
>
> http://www.nationaljournal.com/congressdai...090603_8214.php
>
> -----
> HEALTH: ENERGY AND COMMERCE BEGINS FOOD SAFETY DELIBERATIONS
> By Kasie Hunt
>
>
> Lawmakers will begin work on an overhaul of the country's food safety
> system today as the House Energy and Commerce Committee hears from > health
> officials about a draft version of legislation.
>
> FDA Commissioner Margaret Hamburg is slated to testify, along with
> representatives from consumer groups and industry. Lawmakers say > they are
> particularly concerned because of a recent spate of food contamination
> problems that led to illnesses and deaths, including E.coli in > spinach,
> tainted peppers and salmonella traced to peanuts.
>
> "Redoing the inspections and food safety system is essential. It's > got to
> be a public-private partnership," HHS Secretary Sebelius told the > House
> Labor-HHS Appropriations Subcommittee Tuesday. "Whether or not it's a
> stand-alone agency or in the FDA I think is almost secondary to what > the
> system needs to look at."
>
> The draft, circulated late last month by committee Democrats, is > based on
> the food safety portion of broader legislation that addresses drug and
> medical device safety. The bill would require food companies to pay a
> $1,000 annual registration fee to help offset the costs of increased
> inspections, which would range in frequency from every six months for
> high-risk products and to every three years for some less risky items.
>
> The draft was introduced by Energy and Commerce Chairman Henry > Waxman and
> Democratic Reps. John Dingell of Michigan; Oversight and > Investigations
> Subcommittee Chairman Bart Stupak of Michigan; Health Subcommittee > Chairman
> Frank Pallone of New Jersey, and Reps. Diana DeGette of Colorado and > Betty
> Sutton of Ohio.
>
> Food industry interests have criticized the legislation, saying the
> recession makes the timing inappropriate. Groups argued the > registration
> fees will create a conflict of interest because they will be funding > the
> inspections.
>
>
> http://www.nationaljournal.com/congressdai...090603_9864.php
>
> -----
> APPROPRIATIONS: SUPPLEMENTAL'S IMF FUNDS MAY JEOPARDIZE HOUSE PASSAGE
> By Humberto Sanchez with Megan Scully and Billy House contributing
>
>
> House Defense Appropriations Subcommittee Chairman John Murtha, D-Pa.,
> said Tuesday he is worried about the loss of Republican support for a
> nearly $100 billion tentative deal on a FY09 war supplemental spending
> bill, which includes $5 billion to increase International Monetary > Fund
> lending.
>
> "It's a concern," Murtha said. "If 50 Democrats vote against the > bill and
> the Republicans vote against it, we'll have a problem."
>
> The House passed its version of the supplemental -- which did not > include
> the IMF funding -- in mid-May 368-60, with 168 Republicans voting in > favor
> of it. The bloc of Republicans favoring the bill offset the 51 anti-> war
> Democrats who opposed it.
>
> But inclusion of the IMF funding in the tentative conference agreement
> with the Senate poses a potential problem for House Democratic leaders
> because Republicans leaders, who oppose funding the IMF initiative, > have
> said they will urge their members to vote against the measure, which > could
> jeopardize its passage.
>
> "I will oppose this legislation if it is loaded up with billions in
> spending that is unrelated to our military's core mission of > protecting our
> nation and our interests," House Minority Leader Boehner said Tuesday.
>
> At a briefing Tuesday, House Republican Conference Chairman Mike > Pence of
> Indiana said the IMF funding in the war supplemental would be > "vigorously
> opposed."
>
> "You are going to see a very hard-line stance taken by House > Republicans,"
> Pence said.
>
> "The means that are used, the decisions that are made to do that, just
> wait and see."
>
> The Senate included the IMF funding in its bill at President Obama's
> request. During floor consideration of the measure, the Senate voted > 64-30
> to defeat an amendment offered by Sen. Jim DeMint, R-S.C., that > sought to
> cut the IMF aid.
>
> Senate Majority Leader Reid said Tuesday he did not think the IMF > funding
> would hold up the compromise measure in the Senate.
>
> Also Tuesday, Obama asked House Speaker Pelosi that an additional $2
> billion be included in the supplemental to help the nation guard > against
> any further outbreak of the H1N1 flu. The request to the House also
> included $200 million for aid to Pakistan to help displaced people > as a
> result of that country's counterterrorism measures.
>
>
> http://www.nationaljournal.com/congressdai...090603_2394.php
>
> -----
> HOMELAND SECURITY: OBAMA ADMINISTRATION GETS TO WORK ON > CYBERSECURITY R&D
> By Andrew Noyes
>
>
> Maximizing government investment in federal cybersecurity research and
> development is a major component of President Obama's plan to bolster
> defenses against high-tech attacks. If the White House's new cyber > strategy
> and key agencies' FY10 budget requests are any indication, they're > off to a
> solid start.
>
> The intended result -- in the words of former Homeland Security > Secretary
> Michael Chertoff and policy experts who have borrowed a phrase -- is a
> cyber "Manhattan Project."
>
> In the near term, the White House's unnamed cyber czar will be charged
> with developing a framework for R&D strategies that focus on "game-> changing
> technologies" and provide the research community access to event > data to
> help develop tools and testing theories, according to the Friday > report,
> which stemmed from a 60-day review.
>
> That czar will eventually develop threat scenarios and metrics for > risk
> management decisions, recovery planning and R&D prioritization.
>
> "Research on new approaches to achieving security and resiliency in
> information and communications infrastructures is insufficient," the > report
> stated. "The government needs to increase investment in research > that will
> help address cybersecurity vulnerabilities while also meeting our > economic
> needs and national security requirements."
>
> One initiative cited in the study is a National Science Foundation > grant
> program for students to pursue cyber-related government careers, > which has
> supported more than 1,000 students in its eight years.
>
> NSF's FY10 request includes $126.7 million for cybersecurity R&D, > with $40
> million specifically devoted to research in usability, theoretical
> foundations and privacy in support of the Comprehensive National
> Cybersecurity Initiative, a multibillion-dollar Bush administration
> project. The National Institute of Standards and Technology, which has
> expertise in developing security protocols, has asked for $5.5 > million to
> develop encryption algorithms and metrics for cybersecurity systems.
>
> NIST Information Technology Laboratory Director Cita Furlani said her
> agency has an essential role in achieving Obama's goals through > bringing
> about more secure and reliable systems to drive national initiatives > like
> the development of an electric smart grid and electronic medical > records.
>
> NIST is collaborating with the intelligence and defense communities > on a
> uniform set of cybersecurity standards.
>
> Obama proposed a $37.2 million cyber R&D budget for DHS in FY10 to > support
> operations in its national cybersecurity division as well as projects
> within the CNCI. DHS is using much of its FY09 allotment to deploy
> Einstein, a system to analyze civilian agencies' systems for cyber > threats
> and intrusions.
>
> For his part, Defense Secretary Gates said this spring he wants to
> increase the number of cyber experts who can be trained from 80 > students
> per year in FY10 to 250 in FY11.
>
> Members of Congress have ideas for how to bolster R&D. Legislation
> sponsored by Senate Commerce Chairman John (Jay) Rockefeller and Sen.
> Olympia Snowe, R-Maine, would create an annual cybersecurity > competition
> and prize to get students to study in the field.
>
> It would increase NSF funding and attempt to place a dollar value on
> cybersecurity risk by requiring the cyber czar to report on the > feasibility
> of creating a market for cybersecurity risk management.
>
> Meanwhile, academic and private sector experts will share > perspectives on
> June 10 at a House Science Research and Science Education Subcommittee
> hearing on which cyber R&D initiatives should take priority. It is the
> first of several hearings planned by House Science Chairman Bart > Gordon.
>
>
> http://www.nationaljournal.com/congressdai...090603_3218.php
>
> -----
> AGRICULTURE: VILSACK MAKES A BID TO OVERSEE CLIMATE CHANGE EFFORTS
> By Jerry Hagstrom
>
>
> Contending that farmers and foresters can do more than anyone else to
> reduce global warming, Agriculture Secretary Vilsack is proposing > that USDA
> should run any cap-and-trade system for controlling emissions that > cause
> climate change.
>
> Vilsack's suggestion, first made publicly at a May 27 event in > Kentucky,
> faces a major obstacle, though, since the White House plan for a
> cap-and-trade system was initially outlined in February in the FY10 > budget
> proposal for the EPA.
>
> Even so, a White House official said Tuesday that no decisions have > been
> made about how a cap-and-trade system should be administered. "The
> administration hasn't taken a position on the specifics/where we > want any
> component parts of the program [cap and trade] to be administered," > the
> official said in an e-mail.
>
> Vilsack's statements surfaced in an account of the event written by Al
> Cross, a former Louisville Courier-Journal reporter who runs the > Institute
> for Rural Journalism at the University of Kentucky.
>
> Cross wrote on the Institute's Rural Blog that Vilsack said at a > community
> forum in McAfee, Ky., that he would push Congress to include an > agriculture
> and forestry carbon credits program and a cap-and-trade program > under the
> oversight of USDA.
>
> "We will be advocating forcefully" for both provisions, Vilsack said,
> according to Cross' account. Vilsack said agriculture emits 7 > percent to 10
> percent of U.S. greenhouse gases but could be as much as "25 percent > of the
> solution" through farming practices that prevent carbon dioxide from
> entering the atmosphere, Cross reported.
>
> Vilsack also said USDA is better suited than EPA to monitor those
> practices, since it has more than 2,000 offices, and employees "in
> virtually every county in the country," according to the report.
>
> USDA did not include Vilsack's comments in its release on the event, > which
> was the fourth in a series of forums at which he is highlighting USDA
> spending in the economic stimulus package.
>
> On Monday, USDA communications director Chris Mather did not dispute > the
> account, telling Reuters in an e-mail, "Secretary Vilsack believes
> agriculture and forestry should be included in an offsets program > and USDA
> should play a role to overseeing any such program."
>
> Asked whether Vilsack's comments reflected administration policy, a > White
> House spokesman said: "President Obama has consistently underscored > the
> importance that the agriculture and forestry sectors will play in > achieving
> reductions in greenhouse gas emissions. Both the USDA and EPA agree > that
> working together to tackle climate change and implement a system of > clean
> energy incentives is not only good for the environment but will also > help
> grow rural economies."
>
> According to Cross' account, Vilsack also said he agreed with House
> Agriculture Chairman Collin Peterson that calculations of the carbon
> footprint of ethanol should not include "indirect land use," such as > the
> conversion of forest land to agriculture when expansion of corn > acreage for
> ethanol pushes production of other crops elsewhere, including other
> countries.
>
> That position is not in agreement with a recent finding by EPA, but
> Vilsack said that EPA's proposal is still "subject to peer review," > and he
> is confident that a final rule on the topic will find him and EPA
> Administrator Jackson in agreement, Cross said.
>
>
> http://www.nationaljournal.com/congressdai...090603_9746.php
>
> -----
> PEOPLE: PEOPLE
> By Winter Casey
>
>
> COMMUNICATION SKILLS. Longtime Capitol Hill aide Sonya Wendell has > left
> her post as legislative assistant for Sen. Claire McCaskill, D-Mo., > to join
> the National Cable & Telecommunications Association as a vice > president for
> government relations. Wendell has worked with McCaskill since 2007 > and has
> been her principal adviser for the Senate Commerce Committee. > Wendell was a
> legislative director for Rep. Bart Stupak, D-Mich., and was co-staff
> director for the Congressional Rural Caucus Telecommunications Task > Force.
> She also worked for Sen. Tom Harkin, D-Iowa, and former House Minority
> Leader Richard Gephardt, D-Mo.
>
> MOUTHPIECE. Andrew McLaughlin, Google's head of global public policy > and
> government affairs, is leaving the company, a spokesman for the firm > said.
> Rachel Whetstone, who has led Google's communications and public > affairs
> efforts, will lead the company's public policy initiatives globally, > the
> spokesman added.
>
> POLICY DIRECTION. The Commission on Security and Cooperation in > Europe,
> known as the Helsinki Commission, hired Edward Joseph to be its policy
> director. Joseph, a helicopter pilot in the U.S. Army Reserve, is a
> graduate and lecturer at Johns Hopkins University's School for > Advanced
> International Studies. He was a U.N. peacekeeper in the Balkans > during the
> war in Bosnia-Herzegovina and later helped coordinate U.S. AID's > governance
> efforts with Iraq's interim government in 2004.
>
> IDENTITY POLITICS. The National Center for Transgender Equality has > hired
> Harper Jean Tobin as policy counsel. According to an organization
> spokesman, Tobin will be the "first staff attorney to anchor the
> organization's new policy department," and will eventually be > lobbying.
> Tobin was a staff attorney for the Federal Rights Project at the > National
> Senior Citizens Law Center.
>
>
> http://www.nationaljournal.com/congressdai...090603_4292.php
>
> -----
> OUTSIDE INFLUENCES: FROM RUSSIA WITH ... MEAT
> By Jerry Hagstrom
>
>
> MOSCOW -- As Trade Representative Kirk and other U.S. officials head > to
> Russia this week for talks that include an attempt to convince > Russia to
> reverse its ban on some U.S. pork imports due to fears over the H1N1 > flu
> virus, questions must be asked.
>
> Given Russia's erratic history on allowing meat imports, is it really
> worth it for the United States and its agriculture industries to put > so
> much effort into U.S.-Russian trade relations? Is there any hope that
> U.S.-Russian agricultural trade relations could be normalized?
>
> With Russia the No. 1 market for U.S. poultry for many years, No. 4 in
> pork and No. 5 in beef in 2008, the market is big enough to make the > effort
> worthwhile, say U.S. government and meat industry officials based > here.
> And, yes, Kirk and others might succeed in creating more stability > for U.S.
> exports to Russia -- but only if they understand Russia's many > political
> sensitivities, some agricultural, some geopolitical.
>
> Kirk is leading the U.S. delegation to the St. Petersburg > International
> Economic Forum, which begins Thursday. His office has announced that > he
> will meet with senior Russian government officials to discuss > "bilateral
> trade issues, including Russia's ongoing, unscientific bans on U.S. > pork,
> beef, and poultry products."
>
> Michael Michener, the administrator of the Agriculture Department's
> Foreign Agricultural Service, will join Kirk for the agriculture > talks.
>
> In a recent interview here, Scott Reynolds, the agriculture officer > at the
> U.S. Embassy, noted that Russia has been "a decent export market for > many
> years for U.S. poultry." U.S. agricultural exports to Russia reached > $1.9
> billion in calendar year 2008 and $800 million of that was in > poultry and
> $400 million in pork, Reynolds said.
>
> It was the fall of communism that created the space for the United > States
> and other agricultural exporting countries to enter the Russian > market. As
> Russia attempted to privatize state and collective farms, livestock
> production fell compared with the Soviet era. Russia initially > welcomed
> dark poultry meat that was in excess supply in the United States but
> popular with Russians in processed foods.
>
> "Chicken legs have been a salvation in Russia," Yuri Barutkin, > manager of
> the St. Petersburg office of the U.S. Meat Export Federation, which
> represents the beef, pork, lamb and veal industries, said in a recent
> interview in Washington.
>
> But Russian officials were never comfortable importing so much > poultry and
> in their attempts to develop a domestic industry occasionally > declared U.S.
> poultry unsanitary and banned it. Russia's insistence on restricting > U.S.
> poultry imports led to an increase in its quota for U.S. pork, which > was
> enjoying a boom in Russia when the H1N1 virus arose. Russian > consumers have
> shown no concern about catching H1NI from pork and are buying the > U.S. pork
> that makes it into the country, Barutkin said.
>
> The ban on some U.S. pork appears to fit into the Russian government's
> plans to increase pork, chicken and dairy production. But the > difficulty in
> negotiating with the Russians over agricultural issues is that it is > often
> not clear exactly why the government takes certain actions. When > Russia
> experiences a conflict with another country, one option it can > pursue is to
> try to stop trade, an echo of Cold War strategies.
>
> Russian veterinarians, Barutkin said, are technically capable, but
> sometimes they are under pressure to find a reason to stop trade. "In
> Russia everything is interrelated," Barutkin said. "There are power > plays
> among the ministries. You have to push everywhere."
>
> Over the long run, U.S. beef might not face the same obstacles in > Russia
> that chicken and pork have. Russia gets its domestic beef from old > dairy
> cows. It has no tradition of raising beef for meat and is not good
> territory for raising corn for feed. Russia imposed a ban on U.S. beef
> after the discovery of the first cow with mad cow disease in the > United
> States in 2003, but part of that ban has been lifted and sales of > U.S. beef
> soared until world economic problems caused it to slow down.
>
> Kirk and European Union Trade Commissioner Catherine Ashton are > supposed
> to meet with the Russians about Russia's application to join the World
> Trade Organization. But Russia's erratic bans on meat imports raise
> questions of whether it would really want to join the WTO and have to
> adhere to the group's international food safety rules.
>
> U.S.-Russian meetings on the sidelines of a World Animal Health
> Organization conference in Paris last week apparently went without
> incident, leading to the possibility that Kirk and Michener might > make some
> progress.
>
> But whether there are any big breakthroughs this week, U.S. meat > exporters
> are in Russia for the long haul. They see a market of 140 million > people
> who consume only one third the amount of meat Europeans eat. Even if > Russia
> increases its domestic meat production, the United States can still > compete
> in niche markets as it does in other countries, industry officials > say. As
> Barutkin put it, "Russia is a very difficult market, but name me an > easy
> one."
>
>
> http://www.nationaljournal.com/congressdai...090603_2318.php
>
> -----
> HILL BRIEFS: VISCLOSKY CHIEF OF STAFF TENDERS HIS RESIGNATION
>
> Chuck Brimmer, the chief of staff to Rep. Peter Visclosky, D-Ind., > whose
> offices have received a grand jury subpoena related to an escalating > probe
> into the PMA Group, has recently resigned from his post.
>
> Jacob Ritvo, a spokesman for Visclosky said Brimmer had retired, but
> declined to say when or provide any other details on the advice of
> Visclosky's lawyers.
>
> Last week, in revealing in a statement that a subpoena had been > received
> seeking documents from his office and campaign committee, Visclosky > added
> that some members of his staff had received subpoenas. Visclosky also
> pledged to "fully cooperate with the investigation."
>
> The PMA probe is focused in part on looking into whether the one-time
> lobbying powerhouse made illegal donations to members through "straw"
> donors. The subpoenas to Visclosky's office seek information about > its ties
> to the PMA Group.
>
> Visclosky had various ties to PMA as a member of the House Defense
> Appropriations Subcommittee, where he helped steer millions in > earmarks to
> PMA clients and received significant campaign funding from the firm > and its
> clients over the years.
>
> Further, Rich Kaelin, a previous Visclosky chief of staff, left his > office
> several years ago and went to work at PMA. Kaelin has since joined > another
> lobbying shop, Flagship Government Relations, which started up this > winter
> with several PMA lobbyists.
>
>
> http://www.nationaljournal.com/congressdai...090603_5290.php
>
> -----
> HILL BRIEFS: LEVIN SAYS AUTHORIZATION BILL LIKELY TO BE DRAFTED IN > JULY
>
> Senate Armed Services Chairman Carl Levin said Tuesday he does not > expect
> his panel to mark up the FY10 defense authorization bill until next > month,
> a move that could push Senate floor debate on the measure into > September.
>
> Levin said there was still hope the Senate could pass an authorization
> bill before the monthlong August recess but acknowledged that doing so
> would require the committee to finish marking it up in early July.
>
> The House Armed Services Committee plans to begin subcommittee > markups of
> the authorization bill next week. The full committee set June 16 to > take up
> the bill, making it a likely candidate for floor consideration > before the
> July 4 recess.
>
>
> http://www.nationaljournal.com/congressdai...090603_9244.php
>
> -----
> HILL BRIEFS: CFTC NEEDS A BUDGET BOOST, NEW CHAIRMAN TELLS SENATORS
>
> Commodity Futures Trading Commission Chairman Gary Gensler asked the
> Senate Financial Services Appropriations Subcommittee Tuesday to > raise the
> CFTC budget so that he can pursue a tougher market transparency and
> enforcement regime.
>
> Noting that the FY09 budget for the CFTC is $146 million, Gensler > urged
> appropriators to meet President Obama's FY10 request of $160 million > so
> that he can hire more staff, improve information technology, engage in
> intensive investigations and "ensure that crimes are punished to the > full
> extent of the law."
>
> Gensler, who came under questioning in his confirmation hearing for > his
> advocacy of deregulation when he served at Treasury in the Clinton
> administration, said he wants to provide data in weekly reports so > that
> more information on "influential investor groups" will be available to
> market participants.
>
>
> http://www.nationaljournal.com/congressdai...090603_4076.php
>
> -----
> HILL BRIEFS: INTEL AUTHORIZATION BILLS BEING PREPPED FOR ACTION
>
> Work is under way in both the House and the Senate on legislation
> authorizing programs and spending for the nation's intelligence > community,
> with an eye toward completing markups in the coming weeks.
>
> Lawmakers are evaluating a submission from the Obama administration
> describing what should be in the FY10 intelligence authorization bill,
> aides said.
>
> The House Intelligence Committee plans to mark up its version of the > bill
> June 17, a spokeswoman said. Intelligence Chairman Silvestre Reyes'
> priorities "will continue to be providing the necessary resources to > our
> intelligence community and supporting our war fighters to the maximum
> extent possible," she said.
>
> An aide to House Intelligence ranking member Pete Hoekstra added: > "We hope
> that the committee will not simply rubber-stamp the administration's
> request without much change or substantive review."
>
> The Senate Intelligence Committee plans to mark up its version of the
> legislation shortly after the July congressional recess, an aide said.
>
> The intelligence community has not had an authorization bill enacted > since
> FY05. Several previous bills failed to get through Congress, and one > that
> did was vetoed by then-President George W. Bush.
>
>
> http://www.nationaljournal.com/congressdai...090603_2570.php
>
> -----
> HILL BRIEFS: WAXMAN, STUPAK WANT FDA TO REVISIT PLASTICS CHEMICAL
>
> Two Democratic lawmakers are calling on the FDA to reconsider its
> conclusion that a chemical used in baby bottles and food container

> CongressDaily AM for Thursday, June 4, 2009
>
> --------------------
> CONTENTS
>
> ENVIRONMENT: WAYS AND MEANS MIGHT PUNT ON CLIMATE
> By Darren Goode and Peter Cohn
>
>
> House Ways and Means Committee Democrats are likely to punt on their
> opportunity to help shape climate-change legislation, given a tiny > window
> for action, zero agreement among panel members and a desire to focus
> instead on health care.
>
> That tentative decision was made during an hour-long closed-door > meeting
> of Democrats on the tax-writing panel Wednesday after House Speaker > Pelosi
> handed down a June 19 deadline for Ways and Means and several other
> committees to do a markup or lose their partial jurisdiction over a
> cap-and-trade and energy strategy approved by the Energy and Commerce
> Committee shortly before the Memorial Day break.
>
> "I think that's a highly possible outcome," said Rep. Earl Pomeroy, > D-N.D.
> "A very short timeframe dramatically changes the equation, and we've > been
> given a very short timeframe. There's a strong consensus in the Ways > and
> Means Committee that the first priority is health care, and these are
> difficult issues to work on simultaneously."
>
> Rep. Ron Kind, D-Wis., was more blunt: "Trying to pass climate > change and
> healthcare reform simultaneously is a disaster."
>
> Another factor, Democratic sources said, was that Ways and Means > Democrats
> believe it would be counterproductive to invest efforts in making > changes
> to the Energy and Commerce bill that House leaders probably would not
> accept, when their time could better be spent on health care. > "Leadership
> has already blessed Waxman-Markey, so why would the committee waste > time
> putting its imprimatur on something that won't move anyway," a > Democratic
> source close to the Ways and Means Committee said, referring to the
> legislation by its sponsors: Energy and Commerce Chairman Henry > Waxman and
> Energy and Environment Subcommittee Chairman Edward Markey, D-Mass.
>
> Ways and Means Democrats remain far apart on the climate bill, > making the
> June 19 deadline difficult to meet. "We have no idea what we want to > do and
> how long it will take," Ways and Means Chairman Charles Rangel told
> reporters shortly after Wednesday's meeting.
>
> Rep. Artur Davis, D-Ala., for instance, flat-out opposes a cap-and-> trade
> regime.
>
> "I think it's imperative that the Ways and Means Committee begin to > move
> on the healthcare issue to assert primacy over that issue and really > drive
> the debate," Davis said. "So a number of us within the committee are
> advocating, as far as outlining the calendar over the next few > weeks, an
> approach that enables us to move as quickly as possible within the
> committee to health care."
>
> Rangel -- who said health care remains his top priority -- told > reporters
> after the meeting that he will continue to work on his panel's > contribution
> to the climate bill in time for Pelosi's deadline. "We have to reach > it,"
> he said. When asked whether he knew why that date was picked, he said,
> "Hell, no." He said his panel Democrats will meet every day on the > subject
> "because we have so many issues that we have to work out." Rangel will
> invite Waxman and Markey to talk with Ways and Means Democrats "so > we know
> exactly where we are and where we're not."
>
> Waxman welcomed the invitation. "I think they don't understand fully > our
> bill, and we would like the opportunity to explain it to them," he > said. He
> said Rangel's panel, which has jurisdiction for the moment over how > revenue
> earned from a cap-and-trade plan would be allocated, "has an > important role
> to play in this legislation and so we need them to be involved in it."
>
> Agriculture Chairman Collin Peterson -- who, like Rangel, is wary of a
> carbon market and has a long list of concerns shared by rural > Democrats --
> said he was not sure his panel would hold a markup, either. "Well, > we don't
> know. We're gonna try," he said.
>
> Peterson met with Waxman Wednesday and agreed to have their staffs > work on
> a list of Peterson's concerns. Waxman did not make any promises at the
> meeting and neither did Peterson to reporters afterward. "They'd > like us to
> move, but until we get these issues resolved, we're not going to do
> anything," Peterson said. "We're just at the start of the process." > He also
> made clear, "We're not ruling anything in or out," including > skipping a
> markup if enough of his problems are fixed.
>
> He said even if they were, holding a markup in the next couple of > weeks on
> such a complex subject would be a problem with his staff. "When I > said,
> 'Well, if we get this resolved, maybe we can mark this up next > week,' they
> about had a heart attack," Peterson said.
>
> Pelosi's June 19 deadline suggests she may be moving toward bringing > it to
> the floor before the Independence Day break. On Tuesday, Pelosi > insisted to
> reporters she was not imposing any deadlines on finishing the bill. > A House
> Democratic leadership aide, though, said Wednesday that Democratic > Caucus
> leaders handed down the June 19 deadline "to keep the committee > process
> moving."
>
> The aide said the possibility exists for an extension. "We're still > going
> to move forward when we're ready," the aide said. The deadline > "doesn't
> mean, the 20th we're going to the floor."
>
> Waxman has recommended that the full House debate the bill before
> Independence Day because of the need to turn to health care in July. > "We
> have to get both bills out by the August recess, and I think we'd be > better
> off doing one before the other," Waxman told reporters. "Health care > is not
> going to be ready until much further in July, and I think if we can > work
> out our problems, we should be ready to go on the House floor." He > said he
> expects a draft healthcare bill to be released by late June, > followed by
> hearings and a markup. He did not know how much time floor debate on a
> climate bill would require.
>
> Over in the Senate, Energy and Natural Resources Chairman Jeff > Bingaman
> holds a markup today on a renewable electricity production mandate > that is
> one of the main parts of an energy bill that might be merged with a
> cap-and-trade bill the Environment and Public Works panel will offer.
>
> Bingaman has been working through dozens of amendment to this > mandate and
> as of Wednesday morning had agreed to some concessions, including > taking
> all new nuclear power, as well as "clean coal" with carbon capture and
> storage technology out of the mandate's baseline, according to > Republican
> committee spokesman Robert Dillon. Waste-to-energy is also now > considered a
> renewable energy source under the mandate, Dillon said. All three of > those
> concessions echo details in a renewable power mandate in the House > Energy
> and Commerce bill. Many of the panel's Republicans want all nuclear > energy
> to qualify for the mandate.
>
> There is also a broader definition of biomass under the Senate > mandate, an
> important laurel to Southeastern lawmakers. Bingaman spokesman Bill > Wicker
> declined to confirm details. As of Wednesday morning, Democratic and
> Republican staffers had been able to clear about 30 out of 49 > amendments to
> the mandate, Dillon said. Bingaman's mandate at that point was 15 > percent
> by 2021, with improved energy efficiency accounting for about a > quarter of
> the mandate.
>
>
> http://www.nationaljournal.com/congressdai...090604_9284.php
>
> -----
> FINANCE: CONGRESSIONAL POPULISTS CHARGING HARD ON DEBATE OVER > DERIVATIVES
> REGULATION
> By Bill Swindell
>
>
> Congressional populists have gained the upper hand in the debate > over how
> to regulate the derivatives market, placing banks and securities > dealers on
> the defensive in their quest to have Congress apply a light touch to > the
> multitrillion-dollar industry.
>
> The latest setback came after Rep. Bart Stupak, D-Mich., included > language
> in the House climate change bill that would place major restrictions > on
> over-the-counter derivatives, especially energy transactions. OTC > trades
> are conducted between parties with little oversight or transparency > -- as
> opposed to those on exchanges and clearinghouses. American > International
> Group traded insurance-like contracts called credit default swaps on > the
> OTC market, which led to the company's downfall after they were > largely
> based on subprime mortgages that went bust, forcing the federal > government
> to rescue the firm to the tune of $125 billion.
>
> "I think we have seen it in the credit market, in the mortgage > market and
> we have certainly seen it in the energy market that the system is > being
> gamed," said Stupak. "They are using market conditions to maximize > their
> profit."
>
> Stupak's language is even stronger than legislation House Agriculture
> Chairman Collin Peterson moved out of his committee in February, which
> would mandate all OTC trades must be cleared by an organization > approved by
> the Commodity Futures Trading Commission, giving the agency in > effect the
> authority to suspend trading in credit default swaps. The Peterson > bill
> also would give the SEC the power to clear OTC trades of financial
> products, taking away any power from the Federal Reserve.
>
> The House measures are strongly opposed by a consortium of seven big
> banks. They contend tough rules would ultimately hurt end-users such > as
> airlines, manufacturers and fast-food chains that rely on the OTC > market to
> hedge risk on fuel, currency volatility and interest rates.
>
> But the headwinds are strong for regulation. Senate Agriculture > Chairman
> Tom Harkin will hold a hearing today on his more stringent bill that > would
> require all derivatives to be traded on exchanges, making the CFTC > the sole
> regulator of the industry. At the hearing, CFTC Chairman Gary > Gensler will
> detail the administration's position.
>
> Lobbyists for the industry privately concede the recent actions have > made
> their jobs much harder, specifically because they were relying on > the House
> Financial Services and Senate Banking committees to do the lion's > share of
> the work as both panels gear up for a revamp of the nation's financial
> regulatory system. Now other panels outside such jurisdiction are > entering
> the fray, with members who are much more populist and much more > skeptical
> of the banking industry.
>
> "That's a huge challenge," one lobbyist said. "These are huge issues
> because they involve a somewhat esoteric subject. Many members are not
> especially familiar with it ... then you overlay it with the > jurisdictional
> dynamics, [then] it makes a difficult set of issues twice as > difficult."
> House Financial Services Chairman Barney Frank said he is working with
> Peterson to craft a single bill that would be part of the House > package to
> revamp the financial regulatory system, after first being irked that
> Peterson decided to initially move ahead with his bill. Frank also > said he
> agrees with Stupak that there should regulation of the energy trading
> system, which critics contend can be easily manipulated by > speculators.
>
> "We have to regulate all derivatives," Frank said. "My only difference
> [with Stupak] is that we should do a separate thing for them. Collin > and I
> both agree that regulation should be part of all of the overall > regulation
> of all derivatives."
>
> Frank and Peterson are attempting to figure out how the SEC and CFTC > split
> on jurisdiction on the issue between their respective panels; > Financial
> Services has jurisdiction over the SEC. He notes that the two panels > should
> be able to work together because one idea has essentially been taken > off
> the table: a possible merger between the SEC and CFTC. "I don't think
> that's realistic. There are strongly entrenched interests that will be
> working with each of them and would resist being subsumed into the > other,"
> Frank said.
>
> A key factor will be how hard Treasury Secretary Geithner will weigh > in,
> because he is considered the most sympathetic to the industry.
>
> In his role as president of the New York Fed, Geithner approved a > plan to
> allow the bank to have jurisdiction of a major clearinghouse > operated by
> major banks, ICE U.S. Trust, to clear credit default swaps. Last > month,
> Geithner outlined an Obama administration proposal that would favor > the
> clearinghouse approach, where intermediaries guarantee the trade > between
> buyer and seller. Nonstandardized OTC trades that did not go through a
> clearinghouse would have to be reported to a regulated trade > depository,
> where their positions and trading volume would be available to the > public.
> Geithner did not spell out what would be considered a > nonstandardized trade
> and industry groups are arguing for major flexibility on that point.
>
> One industry source noted that Geithner -- in a May 13 letter to > Senate
> Majority Leader Reid -- outlined key elements that should be part of > any
> plan, which were tailored to the advantages of big banks, such as
> conservative capital requirements, business conduct standards and > reporting
> requirements.
>
> Geithner added that derivatives dealers and all other firms whose
> activities create large exposure to counterparties should be subject > to
> "robust and appropriate" supervision. "Those three features are core
> elements of banking supervision," said the source. "So he is > proposing to
> extend banking supervision to corporate America. Those are the guys > who use
> the contract and in their use create exposure for the banks who > trade for
> them."
>
> But Peterson is especially wary of the Fed, calling it an unelected > body
> "with too much power" and will likely fight Geithner hard on the > issue to
> curb its role in supervising the industry.
>
> Meanwhile, the banks that dominate the industry are trying to ramp up
> their message that any legislation should not be restrictive. They are
> recruiting allies in the business community to help spread the word,
> especially as the major banks have been battered politically over > the last
> year as result of the banking crisis and last year's $700 billion > financial
> bailout.
>
> The National Association of Manufacturers wrote to Senate Banking > Chairman
> Christopher Dodd in April asking he "ensure corporations' access to
> critical OTC derivative products by preserving the ability of > companies to
> customize derivatives to their specific risk management needs."
>
> "It's a very fluid, interesting dynamic situation. The key is for > members
> of Congress to keep in mind that these aren't issues that just > affect eight
> or 10 Wall Street firms. These are issues that affect companies > across the
> country. Derivative products are used by companies of different > sizes to
> manage lots of different risks," said Cory Strupp, a lobbyist with the
> Securities Industry and Financial Markets Association.
>
>
> http://www.nationaljournal.com/congressdai...090604_2249.php
>
> -----
> HEALTH: OBAMA COMES OUT IN FAVOR OF PUBLIC INSURANCE OPTION
> By Anna Edney with Billy House contributing
>
>
> President Obama has thrown his support behind a public insurance > plan as
> part of any healthcare overhaul and said he is willing to consider
> requiring Americans to purchase health insurance and businesses to > offer it
> to their employees.
>
> "I strongly believe that Americans should have the choice of a public
> health insurance option operating alongside private plans. This will > give
> them a better range of choices, make the healthcare market more
> competitive, and keep insurance companies honest," Obama wrote Senate
> Finance Chairman Max Baucus and Senate Health, Education, Labor and
> Pensions Chairman Edward Kennedy Tuesday in a letter released > Wednesday.
>
> Sen. Christopher Dodd, D-Conn., who is managing the healthcare > debate for
> the HELP Committee while Kennedy battles brain cancer, said he spoke
> Tuesday evening for several hours with HELP ranking member Michael > Enzi on
> key healthcare provisions, including a public option.
>
> "There are a couple that are troublesome to them, the public option > being
> one. But they're also willing to see what we offer, what ideas we > have,"
> Dodd said. "There's a lot of room between 'yes' and 'no' on that > subject
> matter. We want to explore that ground."
>
> Dodd said Sen. Jeff Bingaman, D-N.M., presented four or five different
> ways to construct a public plan to HELP Democrats who met Wednesday
> evening.
>
> "I wouldn't begin to tell you where the Democrats stand on all of > this in
> the committee, although I think most are in favor of some form of a > public
> option," he said.
>
> The massive grassroots campaign Health Care for America Now lauded > Obama's
> statement on a public option and voiced opposition to what some are
> considering as a potential compromise with Republicans that would > trigger a
> public plan only if changes in the private insurance industry do not > show
> results.
>
> "The choice of a public health insurance plan must be part of
> comprehensive reform from the very beginning," Richard Kirsch, the > group's
> national campaign manager, said.
>
> Obama also wrote to Baucus and Kennedy about another contentious > issue:
> mandates.
>
> "I share the goal of ending lapses and gaps in coverage that make us > less
> healthy and drive up everyone's costs, and I am open to your ideas on
> shared responsibility," Obama wrote. The president added that small
> businesses should be exempted from an employer mandate.
>
> Finance ranking member Charles Grassley praised Obama's letter for not
> "drawing lines in the sand."
>
> Dodd spoke briefly Wednesday about Kennedy's health, saying he is > hoping
> for a quick return. "He's fighting hard. It's just hard," an > emotional Dodd
> said.
>
> HELP Committee leaders hope to reveal a bill next week, followed by a
> roundtable with health experts to gauge their reaction to the > proposal,
> Dodd said.
>
> "I informed the members of our committee that I intend to start on > Monday
> in the morning and go right through the week and into the evening if
> necessary," he said.
>
> He plans to treat floor consideration the same.
>
> "I've made the request of the leader that we repeat that process, > that we
> be here Monday through Friday in July and into August if we have to, > as
> long as it takes to get this process through," Dodd said. "If we're > going
> to be here Tuesday through Thursday, we won't get this done."
>
> Obama said Tuesday he wants a bill on his desk by October, a > deadline that
> offended some Republicans.
>
> "I don't think anyone's ever been better at creating a straw man than
> President Obama," Rep. Roy Blunt, R-Mo., said Wednesday, referring > to what
> he called a "false deadline."
>
> Enzi spokesman Michael Mahaffey said Enzi is disappointed Democrats > are
> focusing on "arbitrary deadlines over getting the legislation done > right."
>
>
> http://www.nationaljournal.com/congressdai...090604_2695.php
>
> -----
> APPROPRIATIONS: SUPPLEMENTAL NEGOTIATIONS ALMOST COMPLETED, SAYS > MURTHA
> By Humberto Sanchez with Megan Scully and Billy House contributing
>
>
> House Defense Appropriations Subcommittee Chairman John Murtha, D-Pa.,
> Wednesday said House and Senate negotiators have just about finished > work
> on a compromise FY09 war supplemental and conferees would likely > meet to
> sign off on the package this afternoon.
>
> Murtha declined to provide details, but a congressional source said > the
> final package will include funding for seven Lockheed C-130 Hercules
> military transport aircraft. The House-passed version of the > supplemental
> called for 11 C-130s, while the Senate supplemental did not include > any
> C-130 funding.
>
> It also includes all eight Boeing C-17 Globemaster III military > transport
> planes sought in the House bill, the source said. The Senate measure > did
> not seek any C-17 funding.
>
> The C-17 program is very popular in Congress and represents about > 30,000
> jobs at companies sprinkled across 43 states. However, Defense > Secretary
> Gates, as part of a Pentagon overhaul, has sought to end the program > in
> 2011 after the last plane ordered is built.
>
> The final package includes $5 billion for the International Monetary > Fund
> -- a priority for President Obama -- that will finance a $100 > billion line
> of credit and another $8 billion required under reforms adopted by > the IMF
> last year to have the United States maintain its voting share and veto
> power.
>
> House Majority Leader Hoyer Wednesday played down the possibility > that the
> supplemental would include an additional $2 billion to guard against > the
> H1N1 flu virus and increased humanitarian aid to Pakistan, as > requested by
> Obama.
>
> "There is substantial money in there now," Hoyer said. "If we pass the
> $1.85 (billion) ...and that's insufficient, then there's obviously an
> opportunity to pass an additional supplemental at some point in time."
>
> However, including the IMF funding in the supplemental could > jeopardize
> its passage in the House, where Democratic leaders relied on > Republican
> support to pass the bill.
>
> The House passed its version of the supplemental -- without IMF > funding --
> in mid-May 368-60, with 168 Republicans voting in favor of it. The > bloc of
> Republicans favoring the bill offset the 51 anti-war Democrats who > opposed
> it.
>
> With Republicans set to oppose the package over the IMF funding,
> Democratic leaders are trying to win over 18 of the 51 anti-war > Democrats
> to pass the compromise.
>
> They already have one convert in Rep. Barney Frank, D-Mass., who is
> talking to several liberal colleagues in an attempt to get their > votes.
>
> "I don't like the war supp, but ... we had that vote and I lost," > Frank
> said. "The issue now is whether we can get the funding for the IMF. > I think
> [the IMF] is very important for equity in the world, so I'll vote > for it."
>
> Frank said "the IMF is very important, especially now," given the > global
> financial crisis and the loan would strengthen an important economic
> backstop in case a nation collapses financially.
>
> Rep. Maxine Waters, D-Calif., an influential member of the Progressive
> Caucus, said while she typically supports the IMF, she still plans to
> oppose the bill over her objections to the wars in Iraq and > Afghanistan.
>
> "I would only support [the supplemental] to roll us out, to withdraw,"
> Waters said.
>
> Meanwhile, other members of the Progressive Caucus, including Reps.
> Jerrold Nadler, D-N.Y., and Louise Slaughter, D-N.Y., are concerned > about
> the possible inclusion in the supplemental of a Senate provision to > allow
> Gates to withhold any "photograph relating to the treatment of > individuals
> engaged, captured, or detained after September 11, 2001, by the Armed
> Forces of the United States" if he certifies that the release of the > photos
> could endanger citizens or the armed forces.
>
> Good government groups have come out against the amendment, offered by
> Sen. Joseph Lieberman, D-Conn., arguing that it is too broad and could
> cover photos of all detainees captured in any future actions taken > by the
> U.S. military, and exempt them from the Freedom of Information Act.
>
> Nadler said he plans to talk to House leaders to argue against > including
> the provision.
>
> "If they have enough Republican votes, despite the IMF funding, then > they
> can do what they want," Nadler said. "If they don't, then" they will > have
> some leverage.
>
> "Congresswoman Slaughter feels strongly that FOIA laws are among the > most
> important protection the American people have against excessive > secrecy and
> that Congress should think very carefully before doing anything to > weaken
> them," said a spokesman.
>
> Both Nadler and Slaughter voted for the supplemental earlier this > year.
>
> Meanwhile, it does not appear that additions to the supplemental,
> including the popular C-17s, will be enough to persuade Republicans to
> break ranks with their GOP leaders and vote for the bill with IMF > funding
> included.
>
> C-17 supporter Rep. Todd Akin, R-Mo., said there was "not even a
> nano-second delay" in his decision to vote against the supplemental > should
> it include funding for the IMF, which "doesn't pass the smell test."
>
> Boeing's defense headquarters is located in St. Louis, just outside of
> Akin's district.
>
> However, it could be a difficult vote for Armed Services ranking > member
> John McHugh, R-N.Y., nominated by President Obama Tuesday to become > the
> next secretary of the Army, which would get the bulk of the defense > funding
> in the supplemental.
>
> McHugh said Wednesday he was waiting to review the legislation before
> deciding how to vote.
>
>
> http://www.nationaljournal.com/congressdai...090604_4659.php
>
> -----
> LOBBYING: HIGH-TECH FIRMS BRING HIGH-PROFILE REPUBLICANS ON BOARD
> By Andrew Noyes
>
>
> Google's recruitment of Seth Webb, the House Financial Services
> Committee's second-most senior Republican aide, is the latest in a > string
> of recent GOP hires by major high-tech companies in Washington.
>
> The trend, some policy watchers believe, demonstrates the tech lobby
> hasn't shied away from wooing Republicans even as much of K Street has
> augmented its Democratic workforce since President Obama took office.
>
> Webb, who is Financial Services ranking member Spencer Bachus' deputy
> staff director, served as chief of staff for Rep. Adam Putnam, R-> Fla., and
> before that was a senior aide to former House Speaker Dennis Hastert,
> R-Ill.
>
> He will join the ranks of recently hired Republicans at IBM and SAP. > Also
> this spring, IBM brought on Chris Padilla, former Commerce Department
> undersecretary for international trade under former President George > W.
> Bush to run its government affairs office. Padilla, who replaced > veteran
> IBM executive Christopher Caine, spent three years at the Office of > the
> U.S. Trade Representative and lobbied for AT&T. Caine opened a > consulting
> firm, Mercator XXI.
>
> German multinational SAP, one of the world's largest business software
> firms, hired Robert Cresanti to succeed Mary Arnold as head of its
> Washington operation in February. He was Commerce's undersecretary for
> technology under Bush but most recently worked for Ocean Tomo, a bank
> specializing in intellectual property. Intel Corp. hired Peter > Cleveland,
> former chief of staff to Sen. Dianne Feinstein, D-Calif., last fall > and is
> seeking a Democrat and a Republican to beef up its policy shop, > sources
> said.
>
> Meanwhile, Hewlett-Packard was recently said to be looking at a pair > of
> GOP lobbyists to run its Washington office: Ziad Ojakli, a top > lobbyist at
> Ford who was Bush's deputy assistant for legislative affairs, and Nick
> Calio, who runs Citigroup's Washington office and served as Bush's
> principal liaison to Congress. Former HP Government Affairs Director > David
> Isaacs left the company at the end of 2008.
>
> "On so many issues important to the tech industry, from patent > reform to
> immigration, trade, and taxes, the need to build bipartisan > coalitions will
> be vital," said Ralph Hellman, the Information Technology Industry
> Council's top lobbyist, who is a Republican. "It's not the party > they hire,
> it's the competence," he said.
>
> ITI hired former Motion Picture Association of America executive Dean
> Garfield, a registered independent, to replace its longtime > president and
> former Reagan administration adviser Rhett Dawson last year.
>
>
> http://www.nationaljournal.com/congressdai...090604_5035.php
>
> -----
> DEFENSE: MCHUGH RESIGNS COMMITTEE POST; GOP TO FILL SLOT SOON
> By Megan Scully
>
>
> Rep. John McHugh, R-N.Y., resigned his ranking member post -- and > his seat
> -- on the House Armed Services Committee Wednesday, one day after > President
> Obama announced he was nominating him to become Army secretary.
>
> McHugh, a member of the committee since coming to Congress in 1993, > said
> he decided to give up his seat "in fairness to both sides [of the > aisle]
> and certainly my side."
>
> He added he was concerned that people "might view me as conflicted,"
> particularly as the committee prepares to consider the FY10 defense
> authorization bill this month.
>
> McHugh submitted his resignation from the committee, effective
> immediately, in a short letter Wednesday to House Speaker Pelosi.
>
> The Republican steering committee has not set a timetable for choosing
> McHugh's successor, but several GOP lawmakers said they expect a > decision
> as early as this week.
>
> After a month of almost daily hearings with senior Pentagon > officials and
> military brass, Armed Services subcommittee markups are scheduled to > begin
> next week.
>
> But the full committee will not meet until June 16, when it will > take up
> the authorization measure. The nearly two weeks of lag time before > that
> markup takes some pressure off the steering committee, which is > weighing
> three candidates for the post.
>
> Nonetheless, the annual committee markup typically generates partisan
> battles over everything from missile defense funding to whether > overseas
> military personnel should have access to abortions, making it all > the more
> important for Republicans to install a new ranking member before > June 16.
>
> Rep. Howard (Buck) McKeon, R-Calif., one of the three lawmakers > vying for
> the ranking member slot, said he expects a decision before the > committee
> markup of the authorization bill, which prescribes Pentagon spending > levels
> and sets military policy.
>
> "We have to be on a fast track," McKeon said.
>
> Aside from McKeon, Armed Services Air and Land Forces Subcommittee > ranking
> member Roscoe Bartlett, R-Md., and Rep. Mac Thornberry, R-Texas, are
> seeking the committee leadership post.
>
> Meanwhile, McHugh, who took over as ranking member in January, will > remain
> in Congress for several more weeks -- if not months. His upstate New > York
> district includes Fort Drum, home to the Army's 10th Mountain > Division.
>
> Senate Armed Services Chairman Carl Levin said Tuesday his panel would
> move quickly on McHugh's nomination, but the timeframe depends > largely on
> how quickly the administration sends the nomination papers to > Congress.
>
>

> http://www.nationaljournal.com/congressdai...090604_3043.php
>
> -----
> SENATE RACES: BURR, LOOKING TO BUCK DEM TREND, PREPARES FOR 2010 BID
> By Erin McPike
>
>
> Sen. Richard Burr, R-N.C., is girding himself for the fight he knows
> Democrats are spoiling for, even though they still are without a > candidate.
>
> Burr recently told CongressDaily that in sketching out the early > math for
> his 2010 re-election, his campaign team determined he needs only 80 > percent
> of the vote share he won in 2004, since that was a presidential > election in
> which turnout for President Bush was high.
>
> He waved off the idea that Democratic successes last year -- holding > the
> governorship, flipping the state at the presidential level and > picking up
> the other Senate seat -- marked a watershed moment in state politics.
> Instead, he argued, many of those who came out were "one-time > voters," and
> he similarly dismissed the idea that influx of young people into the
> densely populated Research Triangle Park since the last census has
> drastically changed the state's electorate.
>
> "Not having an opponent now has been helpful to my campaign," Burr > said,
> because it gives his team time to map its strategy without having to > divert
> attention to opposition research.
>
> Focusing on the race even though he doesn't yet have opposition has
> appeased some in Republican Senate circles who worried that the > absence of
> a Democratic candidate might disrupt the focus of the low-key > candidate.
>
> Democrats, though, see an opportunity, in part because his first-> quarter
> fundraising take of $700,000 was less than half the amount then-Sen.
> Elizabeth Dole raised at the same point in the 2008 cycle in which > she lost
> to now-Sen. Kay Hagan. They also see opportunities to attack his > record.
>
> "Whether it was his reckless comments calling for a bank run, or his > votes
> opposing every Obama proposal to get this economy back on track, we > believe
> Sen. Burr is extremely vulnerable," said Democratic Senatorial > Campaign
> Committee spokesman Eric Schultz. "North Carolinians deserve two > senators
> working to get the economy moving again -- not one who stands in the > way of
> President's Obama's agenda at every turn."
>
> Democrats suggest that what Burr considers to be "one-time voters" > were
> actually "first-time voters" who will re-engage next year.
>
> Democrats do have a potential messaging conundrum, since Hagan > portrayed
> Dole in a way that suggested Burr was far more effective in > representing
> the state. And a number of newspaper editorials in that campaign > pointed
> out that Burr was more focused on home state issues than Dole had > been.
>
> A handful of Republican operatives familiar with Burr's operation > respect
> his decision to keep his press outreach low key, but worry that it > limits
> getting his message out. Burr's first Senate communications > director, Doug
> Heye, disputes that. He countered that while Burr might not seek out > the
> Sunday talk shows, he is active in the local press.
>
> "He's always been focused on pushing through legislative > accomplishments
> for the state first. In doing so, while not seeking the limelight, > he has
> been more accessible to the North Carolina media throughout the > state than
> any other senator in state history," Heye said.
>
>
> http://www.nationaljournal.com/congressdai...090604_3790.php
>
> -----
> ETHICS: DEMOCRATS BLOCK GOP BID TO SCORE POINTS ON PMA PROBE
> By Billy House with Erin McPike contributing
>
>
> House Democrats blocked a Republican bid Wednesday to force the Ethics
> Committee to say whether it is investigating lawmakers or staffers in
> connection with a federal investigation of the now-dismantled PMA > lobbying
> group.
>
> Lawmakers voted 270-134 to refer the matter to the Ethics Committee, a
> move that potentially buries the issue. That move came as the leaders
> warned in a memo that an alternate resolution by Rep. Jeff Flake, R-> Ariz.,
> was overly broad and "would have sent the Ethics Committee on an
> unrealistic fishing expedition."
>
> The memo also stated, "The resolution that was referred to the Ethics
> Committee today is properly focused to ensure that the committee is > taking
> necessary action, without sending them on an endless chase."
>
> After the ethics debate wrapped up, House Minority Whip Cantor > called the
> result "nothing short of a cover-up." Other Republicans called the > referral
> meaningless. The Ethics Committee is not required to act on the > referral.
>
> The Democratic maneuver came just days after Rep. Peter Visclosky, D-> Ind.,
> reported that his office and some staffers had been subpoenaed by > federal
> investigators looking into PMA.
>
> Another Democrat whose ties to PMA are believed to be drawing > scrutiny is
> Defense Appropriations Subcommittee Chairman John Murtha, D-Pa.
>
> The talking points memo circulated to House Democrats Wednesday > reflected
> that they were beginning to feel the heat.
>
> "It's critical that we strike the necessary balance between > discretion and
> showing action; we should not subject those who are innocent to > baseless
> accusations, but we must also let the American public know that we > take
> ethical matters seriously and will take all appropriate actions to > ensure
> the House's integrity," the memo adds.
>
> "This is a joke," said Michael Steel, a spokesman for House Minority
> Leader Boehner. "It is the tiniest speck of political cover from a
> Democratic leadership that has voted time after time to block a real
> investigation of PMA."
>
>
> http://www.nationaljournal.com/congressdai...090604_3083.php
>
> -----
> HOUSE ADMINISTRATION: PELOSI ORDERS POSTING OF QUARTERLY EXPENSE > REPORTS
> ONLINE
> By Carrie Dann, with Billy House contributing
>
>
> The quarterly expense reports that detail how members of Congress > spend
> taxpayer dollars allotted to their offices each year will soon be > available
> to the public online, House Speaker Pelosi said Wednesday.
>
> Pelosi asked the House's top administrative manager to put the > quarterly
> reports, which have been available for years only in the form of a > thick
> three-volume set of books, on the Web as soon as possible.
>
> "Consistent with my goal to increase transparency and ensure greater
> accountability to the public, please take all steps necessary to > ensure
> that the quarterly Statement of Disbursements be made available > online free
> of charge to the public and on a suitable House Web site," she wrote > to
> Chief Administrative Officer Dan Beard Wednesday.
>
> Leadership offices, as well as those of House committees and members
> typically spend the bulk of their appropriated funds on commonplace
> expenses such as office supplies, staff salaries, phone bills and
> subscriptions.
>
> But journalists and government watchdog groups perennially scour the > data
> in search of questionable entries such as hefty travel and restaurant
> expenses, payments to no-show employees or lease payments to family > members
> or campaign contributors.
>
> First-quarter data will be available electronically before Congress
> returns from its summer recess, a spokesman for Beard said. The first
> incarnation of the financial disclosure Web site will only offer the
> reports as PDF scans -- a format that irks some transparency > advocates who
> prize more easily searchable ways to present online information.
>
> But, the spokesman added, the House is devising a more user-friendly
> system for processing the quarterly disbursement reports from > lawmakers'
> offices.
>
> Good-government advocates such as the nonpartisan Sunlight Foundation
> praised Pelosi's directive, calling broader public disclosure of the
> spending reports long overdue and saying the changes will allow > greater
> scrutiny of how Congress spends public funds.
>
> John Wonderlich, the foundation's policy director, added House
> administrators should aim to start using technologies like financial
> computer processing language XBRL to display the data contained in the
> reports.
>
> And, in the future, disclosures of congressional expenditures should > be
> available to the public in real time, he said.
>
>
> http://www.nationaljournal.com/congressdai...090604_8209.php
>
> -----
> TELECOMMUNICATIONS: AGENCIES WILL TEAM UP WITH ICANN TO RAISE WEB > SECURITY
> By Andrew Noyes
>
>
> The National Telecommunications and Information Administration and
> National Institute of Standards and Technology announced Wednesday > that
> they will work with the Internet Corporation for Assigned Names and
> Numbers, a nonprofit group that administers the Internet addressing > system,
> to enhance Web security and stability in the face of increasing global
> threats.
>
> The announcement came on the eve of a House Energy and Commerce
> Communications Subcommittee hearing intended to explore ICANN's
> relationship with the U.S. government.
>
> The agencies will collaborate with ICANN and Internet infrastructure > firm
> Verisign to create an interim approach to put into place by year's > end a
> security technology at the authoritative root zone, the address book > for
> the Internet. Verisign is under contract with ICANN to run the .net > and
> .com Domain Name System as well as the authoritative root zone.
>
> There will be further consultations with the Internet technical > community
> as the testing and implementation plans progress, officials said.
>
> "The Internet is an ever-increasing means of communications and > commerce,
> and this success is due in part to the Internet domain name and > addressing
> system," Acting NTIA Administrator Anna Gomez said in a news > release. "The
> administration is committed to preserving the stability and security > of the
> DNS."
>
> NIST has been active in developing specifications for securing > information
> provided by the DNS, and the forthcoming activity will speed up the > global
> rollout of those protocols, NIST Information Technology Laboratory > Director
> Cita Furlani added.
>
> Witnesses at today's hearing will focus on the Sept. 30 expiration > of a
> joint project agreement that has allowed Commerce Department > oversight of
> ICANN amid transparency and accountability concerns. NTIA Associate
> Administrator Fiona Alexander will tell the subcommittee that > regardless of
> whether the JPA is terminated, modified, or extended, her agency > will be
> active as part of ICANN's Governmental Advisory Committee and by > filing
> comments in various public consultations.
>
> Also on Wednesday, former Vice President Al Gore and Vint Cerf, > known to
> many as the father of the Internet, released statements in support of
> ICANN.
>
> Gore, who chaired an interagency panel 12 years ago that led to the
> group's creation, emphasized the ICANN model works. Cerf, a longtime
> chairman of ICANN's board who is now Google's chief Internet > evangelist,
> said the group is "better positioned to fulfill its mandate" than ever
> before and the JPA should be allowed to expire.
>
>
> http://www.nationaljournal.com/congressdai...090604_3470.php
>
> -----
> TRANSPORTATION: SENATORS DEFEND DEALERSHIPS GM, CHRYSLER WANT TO CLOSE
> By Andy Leonatti
>
>
> Top executives from General Motors Corp. and Chrysler LLC took a > grilling
> Wednesday from Senate Commerce Committee members over their plans to > close
> auto dealerships, with many senators accusing them of targeting rural
> dealerships.
>
> "The dealers, it seems to me, are an asset," said Sen. Byron Dorgan,
> D-N.D., who questioned Chrysler President James Press and GM CEO Fritz
> Henderson on how the companies could grow the brands if they > minimize their
> market shares and make rural customers travel farther to purchase and
> service cars.
>
> "Nearly 2,000 dealerships are closing throughout America and over > 100,000
> jobs are at risk. We have to do better. We can save some of these > jobs and
> help these communities," said Commerce Chairman John (Jay) > Rockefeller.
>
> "Let me be very clear -- I don't believe that companies should be > allowed
> to take taxpayer funds for a bailout and then leave local dealers > and their
> customers to fend for themselves with no real notice and no real > help. That
> is just plain wrong," he said.
>
> Press said a new, streamlined Chrysler merged with Italian automaker > Fiat
> will sell approximately 700,000 cars per year, while the current > dealer
> network is designed to sell 2 million.
>
> "It's a well-documented opinion of the administration and many > members of
> Congress that over the years Chrysler has not moved fast enough to > make the
> tough changes necessary to become a formidable contender," said Press,
> adding the company had "run out of time."
>
> Press and Henderson faced similar criticism from Sen. Olympia Snowe,
> R-Maine, who wondered why some of the best-performing dealerships in > her
> state were being closed.
>
> "I don't know how you emerge from bankruptcy ... when you're > reducing your
> market share to virtually nothing," she said.
>
> Henderson noted that GM dealerships that will be terminated in 2010 > have
> the chance to appeal -- terminated Chrysler dealerships do not -- > but GM's
> decision to send "participation letters" to remaining dealerships was
> slammed.
>
> National Automobile Dealers Association Chairman John McEleney said
> signing the letter to go forward with GM would commit his dealership > to
> hundreds of thousands of dollars "that I know about" in mandatory > upgrades
> and the letters allow GM to alter terms at any time.
>
> Henderson said he was meeting with the NADA Friday to try to come to > an
> agreement on parts of the participation letters, but that 647 have > already
> been signed after being sent Tuesday.
>
> Dealers have until June 12 to respond to the letters, otherwise > franchise
> agreements can be terminated.
>
> McEleney asked the committee to take action on protecting franchise > laws.
>
> As the hearing dragged into the early evening, Rockefeller noted the > 19
> members who showed up made it the best turnout he had seen in 24 > years as
> Press and Henderson sat for over an hour listening to opening > statements
> critical of their plans.
>
>
> http://www.nationaljournal.com/congressdai...090604_4003.php
>
> -----
> AGRICULTURE: HOUSE MEMBERS PUSH ADMINISTRATION ON BIOMASS DEFINITION
> By Jerry Hagstrom
>
>
> The Obama administration Wednesday came under pressure from House
> Agriculture Committee members to define biomass in the climate change
> debate and to include it as an eligible fuel to meet the renewable > fuel
> standard.
>
> The 2007 energy bill limits the types of woods, particularly from > national
> forest lands, that can be used for fuel to meet the renewable fuel
> standard. Rural members of Congress have been fighting to liberalize > that
> provision.
>
> At a subcommittee hearing on forestry policy, Rep. Stephanie Herseth
> Sandlin, D-S.D., Agriculture Department Operations Subcommittee > ranking
> member Jeff Fortenberry, R-Neb., and Rep. Cynthia Lummis, R-Wyo., all
> pressed Jay Jensen, the USDA deputy undersecretary for natural > resources
> and the environment, on the biomass definition and the use of > biomass fuel.
>
> Fortenberry said he wants "renewable woody biomass" to be eligible > under
> the renewable fuel standard. Herseth Sandlin said more biomass > should be
> allowed as a renewable fuel because the country is in danger of not > meeting
> cellulosic fuel development goals.
>
> Jensen said the administration is developing its position on the > issue. He
> noted that Agriculture Secretary Vilsack has said he wants to use the
> development of biofuels to help family farmers and said "an overly > narrow
> definition would not be helpful."
>
> But Jensen added that the issue for the administration is whether > biomass
> fuels are "sustainable."
>
> In an interview afterward, Herseth Sandlin noted that the 2007 > energy bill
> and the 2008 farm bill contain different definitions of biomass.
>
> She said it is time for the administration "to wade into the debate to
> synthesize the biomass definition and more forcefully advocate for a > role
> forest land can play in the new energy economy. Otherwise you are > leaving
> behind communities that are suffering."
>
> "We face hurdles from groups that don't want any economic activity in
> national forests," she added.
>
> Forest owner groups testified in favor of liberalizing the > definition of
> biomass for the renewable fuel standard. But the Nature Conservancy > said
> that while renewable biomass from forests can be used for producing > energy,
> overcutting should be avoided and federal lands should not be > harvested for
> that express purpose.
>
> Jensen referred to the bitter battles between the forestry industry > and
> environmentalists, saying that a "challenge our forests face is the > deep
> divide that persists in the wake of decades of debate about how to > best
> manage for the desired multiple uses."
>
> Marshall Matz, a lawyer who represents the Black Hills Forest > Association,
> praised Jensen for saying that forests should have "multiple uses" > and said
> it was an indication that the Obama administration will take a more
> balanced approach to forestry policy than the Clinton administration > did.
>
>
> http://www.nationaljournal.com/congressdai...090603_2154.php
>
> -----
> FINANCE: CURRENCY EQUILIBRIUM NEEDED TO AVERT CRASH, STUDY WARNS
>
> Growing imbalance between the dollar and Asian currencies poses a > threat
> to long-term global economic stability, the Peterson Institute for
> International Economics said in a study Wednesday.
>
> The Chinese renminbi needs to come down 40 percent against the > dollar to
> achieve equilibrium, according to William Cline and John Williamson, > the
> institute fellows who conducted the study. The euro should > appreciate to
> $1.53 and most other currencies also need to appreciate against the > dollar,
> the study said.
>
>
> http://www.nationaljournal.com/congressdai...090604_7572.php
>
> -----
> IMMIGRATION: WHITE HOUSE DELAYS IMMIGRATION SUMMIT
>
> The White House is postponing Monday's scheduled summit on immigration
> reform until June 17 due to President Obama's travel schedule, an
> administration spokesman said late Wednesday.
>
> The summit, which is highly anticipated by Latino organizations and > other
> pro-immigrant groups, is expected to bring together Democratic and
> Republican lawmakers and administration officials to discuss an > overhaul of
> the nation's immigration laws and ways to provide legal status to > millions
> of undocumented workers in the country.
>
> Reform advocates see the summit as launching a concerted effort to > have
> lawmakers draft and pass legislation this year, which they hope > Obama can
> sign by February.
>
>
> http://www.nationaljournal.com/congressdai...090604_6129.php
>
> -----
> PEOPLE: PEOPLE
> By Winter Casey
>
>
> TRADING PLACES. Former Deputy Assistant Treasury Secretary Nova Daly > has
> joined Wiley Rein LLP as a public policy consultant. In addition to > his
> tenure at Treasury in the administration of former President George W.
> Bush, Daly was director of international trade at the National > Security
> Council and a trade policy adviser for the former Commerce Secretary > Donald
> Evans. He was also a trade adviser for the Senate Finance Committee > in 2002
> through 2003.
>
> DROPPING IN. The National Association of Water Companies board of
> directors has named Michael Deane as its executive director. Deane, > who
> succeeds the late Peter Cook, had been serving as the deputy executive
> director and director of strategic development for the association. > NAWC
> seeks to promote the importance of the private sector as the > provider of
> sustainable water services. Deane is leaving his position as associate
> assistant administrator for water at EPA to take the NAWC job. While > at
> EPA, he had the responsibility of communicating EPA policy positions > to
> Congress.
>
> DEMOCRACY NOW. The International Foundation for Electoral Systems has
> brought Bill Sweeney on as president and CEO, taking the place of
> Jean-Pierre Kingsley. Sweeney has served as deputy chairman of the
> Democratic National Committee and executive director of the Democratic
> Congressional Campaign Committee. He has been an elections observer > in the
> Philippines, Russia, Jamaica and Nicaragua.
>
> VETERAN AIDE. Jonathan Schleifer, the new policy director for Iraq and
> Afghanistan Veterans of America, served as the director of onli

> CongressDaily PM for Tuesday, June 9, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: DODD: HELP DRAFT 'INVITATION' FOR GOP IDEAS
> By Anna Edney and Kasie Hunt
>
>
> Senate Health, Education, Labor and Pensions Committee Democrats will
> unveil their version of healthcare overhaul legislation today, Sen.
> Christopher Dodd, D-Conn., said. It will not include a public > insurance
> plan, an employer mandate or a proposal on generic biologics so > Republicans
> will have the chance to pitch alternative proposals.
>
> "There are some gaps, done intentionally," he said. "I left those > areas
> open for discussion. The reason for that is an invitation, not a > retreat
> from the principles."
>
> Dodd said the committee plans to begin its markup June 16, when > senators
> will start moving title by title through the bill. Dodd has reserved > two
> weeks for the effort, and said he hopes to finish before the Fourth > of July
> break.
>
> Senate Finance Chairman Max Baucus said today at a Brookings > Institution
> event his committee likely will begin marking up a healthcare > overhaul bill
> June 17. He expects the process to last one week.
>
> While senators complained last week about a lack of specific > proposals and
> CBO scoring, Baucus said today scores are coming in. "We worked over > the
> weekend," Baucus said. "We're getting scores now."
>
> OMB Director Orszag stressed CBO scoring at the Brookings > Institution as
> well. "The reform plan as a whole will be deficit-neutral under CBO > scoring
> over the next five to 10 years," Orszag said.
>
> He said he was directing his remarks at critics who have confused the
> administration's desire to fix the healthcare system with the > offsets for
> health care that President Obama proposed in his budget.
>
> Senate Budget Chairman Kent Conrad and ranking member Judd Gregg > wrote CBO
> today, asking agency officials to provide them with an analysis in > one week
> on proposals that would "most effectively bend the healthcare cost > curve
> over the long term."
>
> They asked CBO to provide them with policies that will reduce spending
> growth and improve quality as well as those that could add to spending
> growth.
>
> One offset could come from comparative effectiveness research, which
> Orszag and Baucus began referring to today as "patient-centered health
> research" to remove the stigma of potential government-run health care
> associated with the term.
>
> He said he will include a comparative effectiveness research > proposal he
> made with Conrad in his overhaul measure.
>
> Baucus was careful to note his proposal does not include cost-benefit
> analyses that the government or private insurers could use to > determine
> coverage.
>
> "I think the cost will come in decisions made by patients, by > providers,"
> he said. "It's not up to the agencies to prescribe what should or > should
> not be used."
>
> Meanwhile, Dodd's comments about outreach today did not sway one key > GOP
> senator, HELP ranking member Michael Enzi. An Enzi spokesman said he > is
> "very disappointed in the process." The spokesman added, "This > proposal
> does not reflect the months of bipartisan work that Republicans have > put
> into healthcare reform."
>
>
> http://www.nationaljournal.com/congressdai...090609_3524.php
>
> -----
> HEALTH: HOUSE CHAIRMEN RELEASE OUTLINE WITH PUBLIC PLAN
> By Anna Edney
>
>
> Key House chairmen today disclosed an outline of healthcare > legislation
> they are crafting for House Democrats.
>
> The measure will include a public insurance option, although little > detail
> was offered other than the fact that it would operate on a level > playing
> field with private insurers. Individuals would be required to purchase
> insurance under the bill, and employers would have to provide > insurance for
> employees. Small businesses would be exempt from the employer mandate.
>
> The discussion was led by House Ways and Means Chairman Charles > Rangel,
> Energy and Commerce Chairman Henry Waxman and Education and Labor > Chairman
> George Miller.
>
> The legislation they discussed will include an advisory committee that
> would set minimum benefits for plans that participate in an exchange > that
> the measure would establish.
>
> The bill also will aim to base Medicare provider payments on quality
> rather than volume and permanently address the Medicare physician > payment
> system that leaves physicians facing annual cuts.
>
> In a floor speech this morning, House Minority Leader Boehner said the
> Democratic offering would lead to higher taxes, more-expensive health
> insurance and rationed care.
>
> The outline does not address financing in detail but does indicate the
> bill will eliminate overpayments to private insurers that > participate in
> Medicare Advantage. Rangel has said they are weighing taxing
> employer-sponsored health benefits to pay for the overhaul, among > other
> options.
>
> "We will continue to seek input and work closely with our colleagues,
> outside stakeholders, and the administration and are on track to > introduce
> legislation shortly," the chairmen said in a joint statement. "We
> anticipate committee action on health reform in the coming weeks, with
> legislation on the House floor prior to the August district work > period."
>
> "We've got to finish the bill before the end of July, so that we can > get
> it to conference when we get back in September and get it to > [President
> Obama] desk by October," said Waxman in comments later.
>
>
> http://www.nationaljournal.com/congressdai...090609_5301.php
>
> -----
> JUDICIARY: LEAHY SLATES HEARING, REPUBLICANS CRY FOUL
> By Dan Friedman
>
>
> Senate Judiciary Chairman Patrick Leahy today announced a July 13 > start
> date for the confirmation hearing of Supreme Court nominee Sonia > Sotomayor,
> a step that drew immediate complaints from Republicans who want more > time
> to review her record.
>
> The timeline would give the Senate just enough time to confirm > Sotomayor
> before the August recess, as President Obama and many Democrats have > urged.
> Reiterating an argument he made last week, Leahy said Sotomayor > deserves a
> chance to quickly rebut attacks on her judicial philosophy and > speeches.
>
> "Given the attacks on her character, there are compelling reasons to
> proceed even ahead of this schedule." Leahy said, citing in particular
> charges by Republicans outside the Senate, such as former House > Speaker
> Newt Gingrich, R-Ga., that Sotomayor has expressed "racist" views.
>
> Leahy said the date tracks the "bipartisan" timeline used in 2005 > after
> the nomination of John Roberts, who is now chief justice.
>
> Republicans said Sotomayor's extensive record, including more than > 3,600
> rulings on the federal bench, requires more time to review her > rulings and
> opinions. Sotomayor has "made 10 times as many decisions as > Roberts," said
> Minority Whip Kyl, a Judiciary Committee member.
>
> Leahy "can't be serious," said one senior GOP aide. "Committee members
> would have to evaluate around 76 cases per day if they're going to > be fully
> prepared for this hearing." Judiciary ranking member Jeff Sessions and
> Minority Leader McConnell have suggested the hearing should not > occur until
> after the August recess. Republicans have also noted that the > confirmation
> hearing for Justice Samuel Alito did not start until 70 days after his
> nomination.
>
> Despite the objections, Senate Democrats appear to have the votes to
> confirm Sotomayor easily.
>
> While some, including Majority Leader Reid, have suggested forcing a > quick
> hearing on the GOP will increase opposition to the nominee, many > appear to
> feel delay will give Republicans a chance to develop arguments that > could
> make confirmation tougher. Responding briefly to questions this > afternoon,
> Reid said he supports Leahy's timeline.
>
> The committee hearing will likely take most of the week, with > Republicans
> able to delay a vote after completion of the hearing for an additional
> week. That would give the Senate two weeks to confirm Sotomayor > before the
> recess, although the chamber already faces a packed July calendar.
>
> Republican aides and senators suggested today that Leahy's > announcement
> could be a bargaining tactic. He might later seek to win backing for > a late
> July hearing by framing a short delay as a compromise, one aide said.
>
>
> http://www.nationaljournal.com/congressdai...090609_4500.php
>
> -----
> BUDGET: OBAMA SEEKS RESTORATION OF PAY/GO PROVISION
> By George E. Condon Jr., with Billy House contributing
>
>
> President Obama today called on Congress to act quickly to restore > pay/go
> spending constraints that he credited with the surpluses of the late > 1990s.
> While defending the record spending he pushed through to battle the
> recession, he said it is time to reintroduce the pay/go discipline > that was
> pushed aside in 2002 to permit former President Bush's tax cuts to go
> through.
>
> Obama was joined by House Speaker Pelosi, House Majority Leader > Hoyer, and
> House Budget Chairman John Spratt and about 40 other House members, > mostly
> members of the Blue Dog Coalition. Sen. Claire McCaskill, D-Mo., also
> attended.
>
> Hoyer said he will introduce pay/go legislation for Obama as early > as next
> week. He said pay/go was scrapped by Republicans "because they could > not
> afford the tax cuts" if the provision stayed in place. If the measure
> passes, lawmakers would have to offset most spending increases by > cutting
> spending somewhere else.
>
> Republicans countered that Obama's move was too late. Noting that the
> president has led the country "through five months of historic > spending of
> taxpayer dollars," House Minority Whip Cantor said, "For us to sit > here and
> listen to the White House say 'we ought to be responsible; we ought > to pay
> for what we are doing,' I think lacks just a little bit of > credibility."
>
> House Republican Conference Chairman Mike Pence of Indiana also was
> critical, saying the president's call "is going to be met with > cynicism by
> many."
>
> Obama presented himself as a champion of fiscal responsibility who > will
> stick to his promise to halve the deficit in the next four years. He > cast
> pay/go as an essential tool that proved its worth when Bill Clinton, a
> Democratic president, teamed with a Republican Congress on policies > that
> led to surpluses when pay/go was in effect.
>
> "This is a rule I championed in the Senate and called for time and > again
> on the campaign trail," he said. "Today, with the support of these
> legislators ... my administration is submitting to Congress a > proposal to
> codify this rule in law -- and I hope that the House and Senate will > act
> quickly to pass it."
>
> The rule, he said, is the essence of simplicity. "Congress can only > spend
> a dollar if it saves a dollar elsewhere," he said. "It is no > coincidence
> ... that when this rule was abandoned, we returned to record > deficits that
> doubled the national debt."
>
> The White House said Medicare payments to physicians, the estate > tax, the
> alternative minimum tax, and tax cuts enacted in 2001 and 2003 would > be
> exempt.
>
>
> http://www.nationaljournal.com/congressdai...090609_5780.php
>
> -----
> ENERGY: DEMS, INDUSTRY GROUPS PRESS CAP-AND-TRADE CONCERNS
> By Darren Goode
>
>
> A House Energy and Commerce hearing today examining how a panel-passed
> climate bill handles industry's right to emit greenhouse gases > suggests
> Democratic leaders might have more finagling left before moving a > bill to
> the full House or beyond.
>
> While the bill already gives away more than three-quarters of the > emission
> credits in the early years of its cap-and-trade program, lawmakers and
> companies representing key industries told the panel they want more > help.
>
> Rep. Mike Ross of Arkansas, one of four Democrats who voted against > the
> bill in committee, said he wants more free credits for small > refineries.
> That is just one of perhaps a dozen or more concerns Ross has, and > he said
> the bill needs serious revisions, including a broader definition of > biomass
> included in the farm bill.
>
> "They wrote a bill they could get out of committee, which is totally
> different than writing a bill that can pass on the House floor," > Ross said.
> "And this bill is going to have to move a lot more to the middle for > them
> to have the votes to pass it in the House."
>
> Ross, who received calls from President Obama and former President > Bill
> Clinton seeking his support during a week of markups before Memorial > Day,
> said he did not know whether his concerns will be assuaged. "I > thought our
> concerns would have been accommodated in committee. They weren't, so > we'll
> see," he said.
>
> Democratic leaders on the panel negotiated with a diverse mix of > Democrats
> on the committee before the recent markup in the face of nearly > unified GOP
> opposition. "The committee has worked hard on this allocation plan to
> ensure that it's fair," House Energy and Commerce Chairman Henry > Waxman
> said. But he later said further changes are possible.
>
> Thomas Farrell, the head of Dominion Resources and speaking on > behalf of
> the Edison Electric Institute, the leading trade association for > electric
> companies, said the coalition wants longer than the bill's five > years for
> phasing down the level of free emission credits afforded to the > industry.
> Rep. Rick Boucher, D-Va., is seeking the same.
>
> Local electricity distribution companies received for free 35 > percent of
> all emission credits in the bill until 2025. This has raised a point > of
> contention with other industries seeking more in the early years.
>
> Boucher said he does not expect changes to the bill's allocation > system
> before it reaches the House floor based on today's hearing, but he > added
> that Senate debate gives another chance to make changes to that and > the
> bill's 2020 emission goal.
>
> Rich Wells, a vice president at Dow Chemical Co., said the bill also
> phases out free emission credits too quickly for industries like > chemical,
> steel, cement and other manufacturers that are highly competitive in > the
> international trade market. Wells asked for the bill's cap-and-trade > target
> of 17 percent by 2020 to be reduced to 14 percent, which Boucher is > also
> seeking.
>
> Others were harsher in their criticism. David Sokol, chairman of the
> Iowa-based MidAmerican Energy Holdings Co., said the bill's trading
> mechanism "will impose a huge and unacceptable double cost on > customers"
> that will not reduce greenhouse gas emissions "by one ounce."
>
> Tommy Hodges, representing the American Trucking Associations, said > the
> bill would "significantly increase" fuel prices and asked for more > free
> credits for oil refiners. Steve Cousins, vice president at Lion Oil, a
> small refinery headquartered in Ross' district, agreed and said the
> refinery would eventually close due to the bill.
>
>
> http://www.nationaljournal.com/congressdai...090609_2127.php
>
> -----
> FINANCE: KANJORSKI CONSIDERS OTC DERIVATIVES MARKET
> By Bill Swindell
>
>
> A top House Democrat said today Congress will likely have to allow an
> over-the-counter derivatives market because some trades are unable > to be
> placed on an exchange or go through a clearinghouse procedure.
>
> House Financial Services Capital Markets Subcommittee Chairman Paul
> Kanjorski, D-Pa., said during a hearing on the issue that the OTC > market,
> where trades are conducted between parties with little oversight or
> transparency, serves a purpose because some products could not be > traded on
> a public exchange. "Subjecting all contracts to mandatory exchange > trading
> may cast too wide a net. Yet the clearing of most products, not all,
> through a central clearing entity seems appropriate and should not > impose
> an undue burden on the affected parties," Kanjorski said.
>
> His comments contrast with those of Senate Agriculture Chairman Tom
> Harkin, who has sponsored a bill that would mandate all derivatives > to be
> traded on exchanges. That effort comes in the aftermath of the > collapse of
> American International Group, which required a government bailout > after it
> lost heavily on traded insurance-like contracts called credit > default swaps
> on the OTC market.
>
> Treasury Secretary Geithner has called for allowing some > nonstandardized
> trades on the OTC market, but they would have to be reported to a > trade
> depository, where their positions and trading volume would be > available to
> the public. If Congress were to allow for such certain trades on the > OTC
> market, business groups would be lobbying for a large swath of > products.
>
> But Kanjorski said he was fearful of creating too many loopholes in > the
> OTC market that could lead to another AIG-type situation. "Carving > out too
> many exemptions as we tackle regulatory reform could create widespread
> economic harm in the long term," he said.
>
> House Financial Services Chairman Barney Frank and House Agriculture
> Chairman Collin Peterson, whose committees have jurisdiction, are > working
> on the issue and their bill will be included as part of legislation > that
> will revamp the nation's financial regulatory system.
>
> At least one lawmaker thought the sentiment on the panel was too > tilted to
> the industry. "I get the sense who is winning this fight, and I > don't think
> it is the American taxpayer," said Rep. Stephen Lynch, D-Mass.
>
> Rep. Brad Sherman, D-Calif., called for tough capital standards for > those
> participating in the market, another thorny issue in the debate. > Geithner
> has said that OTC participants who would create a large market > exposure
> would need to adhere to some conservative capital requirements, but > he did
> not spell out the details.
>
> "We don't let you sell fire insurance on my house without setting up
> reserves," Sherman noted. "There ought to be reserves. Anything else > means
> you can sell an unlimited quantity and ultimately we're told this is a
> private market decision."
>
> Timothy Murphy, foreign currency risk manager for 3M, testified that > any
> robust collateral requirements would make it less likely for > companies to
> participate because it would result in greater cost and administrative
> burdens.
>
> Rep. Brad Miller, D-N.C., said he was concerned over the use of naked
> derivatives, where the seller does not own the underlying product in > the
> trade.
>
> A bill that Peterson moved out of his committee would allow the > Commodity
> Futures Trading Commission to ban such trades under certain > circumstances,
> while Geithner has not called for such a ban. "What is the social > value in
> allowing derivative positions when neither party of the contract has > any
> interest in the underlying contract?" Miller said. "There are > obviously a
> lot of downsides to that."
>
> Robert Pickel, CEO of the International Swaps and Derivatives > Association,
> replied that such trades provide greater liquidity to the market by
> allowing traders to take a long view on whether the product is > priced right
> and ultimately help those who own the underlying security.
>
>
> http://www.nationaljournal.com/congressdai...090609_1014.php
>
> -----
> FINANCE: DODD: FINANCIAL REGS BILL TO WAIT FOR FALL
> By Bill Swindell
>
>
> Senate Banking Chairman Christopher Dodd said today he will not move
> legislation to revamp the nation's financial services system until > the fall
> because the healthcare debate has become a greater priority.
>
> Senate leaders want to bring the regulatory revamp up after the August
> recess and that is appropriate because "health care is number one," > Dodd
> said.
>
> He added that half of his panel's members already work on either of > the
> two committees that have jurisdiction over health care -- the > Finance and
> Health, Education, Labor and Pensions committees.
>
> But Banking Committee members not on the other two panels will be > able to
> pick up some slack, said Dodd. "We're already working as well. My > staff on
> the Banking Committee is already working, drafting a financial
> modernization proposal," he said.
>
> Dodd has become a main negotiator in the healthcare debate while > filling
> in for Health, Education, Labor and Pensions Chairman Edward Kennedy > as he
> fights brain cancer. But that work has come at some cost as Banking > panel
> members have not pursued as rigorous a hearing schedule as their
> counterparts on the House Financial Services Committee have.
>
> The House panel is holding two hearings this week on the issue, > while the
> Banking Committee is holding one hearing, and that is on the auto > bailout.
>
> House Financial Services Chairman Barney Frank has said he wants to > pass a
> House bill before the August recess.
>
> Dodd has been criticized for a lack of Banking Committee action,
> especially when he launched his long-shot presidential bid in 2007 > at the
> time when the subprime mortgage market was beginning to crater, a > precursor
> to the banking crisis.
>
> But the opportunity to play a lead role in the healthcare debate is > too
> enticing for Dodd, a longtime HELP Committee member, as he gears up > to face
> a tough race next year after Connecticut polls showed a tough race > in a
> reliable Democratic state.
>
>
> http://www.nationaljournal.com/congressdai...090609_4261.php
>
> -----
> DEFENSE: INOUYE VOICES CONCERN OVER PROPOSED CUTS
> By Megan Scully
>
>
> Senate Defense Appropriations Subcommittee Chairman Daniel Inouye,
> D-Hawaii, today raised concerns over the Obama administration's > proposals
> to cut many of the military's top weapons programs, suggesting, for
> example, that they could harm the U.S. government's ability to deter
> potential adversaries.
>
> But during a hearing with Pentagon leaders on the Defense Department's
> FY10 budget request, Inouye did not signal how he would address these
> concerns as his panel prepares to mark up the Defense spending bill > later
> this summer. He said after the hearing that his subcommittee will > continue
> to discuss the concerns with the administration.
>
> "I hope it doesn't send the wrong signal to our potential enemies or > our
> friends that we are reducing our capabilities," said Inouye, who > also heads
> the full Appropriations Committee. "I also hope it will not diminish > our
> military industrial base. I hope that it will not diminish our > deterrence
> posture and the strength that we provide to our allies."
>
> During the hearing, Defense Secretary Gates and Joint Chiefs of Staff
> Chairman Michael Mullen defended their budget request, which calls for
> major changes and terminations for dozens of military programs, > including
> the Army's Future Combat Systems and the Navy's DDG-1000 destroyer.
>
> The request also would end production of several programs that are > popular
> with lawmakers, including the F-22 Raptor fighter jet and the C-17
> Globemaster III cargo plane. Still, Mullen said, 35 percent of the > $534
> billion Defense spending request will pay for modernization programs.
>
> Gates argued that the request balances capabilities needed for
> conventional warfare against other countries and the types of > equipment and
> skills needed for counterinsurgency operations. Gates also pledged > to do
> "everything in my power" to prevent major cuts in defense spending > as long
> as he is at the helm of the Pentagon.
>
> Meanwhile, Gates said he plans to make a decision within the next 10 > days
> on how to proceed with the new competition for Air Force aerial > refueling
> tankers. Included in those decisions are whether the Air Force or his
> office will oversee the competition, as well as what mechanisms will > be in
> place to ensure a fair, open and transparent process. Gates added > that he
> plans to ask Deputy Defense Secretary William Lynn "to take a very > close
> interest in this process."
>
> Last year, a team led by Northrop Grumman Corp. and EADS, the European
> consortium behind Airbus, beat out Boeing Co. for the contract to > build the
> tankers, worth an estimated $35 billion.
>
> But GAO upheld Boeing's protest of the award and the Pentagon > canceled the
> contract. A request for proposals, which officially launches the new
> competition, is expected sometime this summer.
>
>
> http://www.nationaljournal.com/congressdai...090609_7088.php
>
> -----
> FINANCE: WARREN DEFENDS EFFORTS OF TARP PANEL
> By David Hess
>
>
> Dodging brickbats from Republicans who questioned the value of the
> oversight panel created to monitor the federal bank bailouts, the > panel's
> chairwoman today defended its activities and declared that as long > as the
> banks continue to hold toxic assets, their balance sheets should > undergo
> scrutiny from the Treasury Department and other regulatory agencies.
>
> Harvard economics professor Elizabeth Warren, chairwoman of the
> Congressional Oversight Panel, told the Joint Economic Committee > that some
> of the financial institutions receiving federal money from the > Troubled
> Asset Relief Program needed recurrent stress testing as part of the > effort
> to bring more transparency and accountability.
>
> In response to a question by Joint Economic Chairwoman Carolyn > Maloney of
> New York, Warren said investor and public confidence in the banking
> industry needs to be restored before a full recovery from the > recession is
> possible. "Without it, we can't rebuild our institutions on clouds; > we have
> to build it on reality," she said.
>
> Warren came under fire from Joint Economic ranking member Kevin > Brady of
> Texas, who charged that the oversight panel has done too little to > bring
> transparency and clarity to TARP and said, "I think the [panel] > needs to be
> abolished and reconstituted."
>
> Warren reminded the joint committee that her oversight panel lacks
> subpoena power to command attendance at hearings from key federal > officials
> and officials from banks that receive federal funding. Maloney said > she is
> sponsoring legislation to strengthen the oversight regime, including > giving
> the power of subpoena. Brady expressed support for that concept.
>
> After her testimony, Warren said most of the information needed by the
> oversight panel was obtained without the need for subpoenas but
> acknowledged her attempts to interview Federal Reserve Chairman > Bernanke
> fizzled.
>
> She said private banking officials also had largely ignored the > panel's
> requests for detailed information. She mused that subpoena power > could be
> useful in "the hearing process where someone has to show up and give > sworn
> testimony." Warren told Maloney that she would be "willing to take > at look
> at" the proposed legislation.
>
>
> http://www.nationaljournal.com/congressdai...090609_2319.php
>
> -----
> HILL BRIEFS: LIEBERMAN, GRAHAM THREATEN TO BLOCK SUPPLEMENTAL
>
> Appropriations. Sens. Joseph Lieberman, D-Conn., and Lindsey Graham,
> R-S.C., today threatened to block the FY09 war supplemental spending > bill
> if it does not include language preventing the release of detainee > photos,
> a provision opposed by some House Democrats. Lieberman added they > would
> vote against the package if it did not include an amendment they > offered --
> and the Senate added - stipulating the photos not be released. House > and
> Senate negotiators are trying to reconcile their respective versions.
> Graham threatened to try to hold up all business in the Senate > "until we
> get this right." The two argued the photos' release would endanger > U.S.
> soldiers and other personnel around the world, and they noted the > White
> House supports their position. Open-government groups oppose the > Lieberman
> amendment, and one liberal Democratic lawmaker, speaking without
> attribution, said today the language allowing the photos' release > will be
> dropped in conference. Meanwhile, House Majority Leader Hoyer said he
> expects the House to take up the package this week "pending a > resolution
> between the Senate and the House" on the Lieberman amendment and other
> sticking points. But Senate Appropriations Chairman Daniel Inouye > said he
> was "not optimistic" that work on the supplemental could be wrapped > up this
> week, citing other unresolved issues such as the legal fate of the
> Guantanamo Bay, Cuba, detainees.
>
>
> http://www.nationaljournal.com/congressdai...090609_6149.php
>
> -----
> HILL BRIEFS: SENATE PANEL SUPPORTS FLA. EXPLORATION
>
> Energy. By a 13-10 vote, the Senate Energy and Natural Resources > Committee
> today agreed to open up the eastern Gulf of Mexico to oil and gas > drilling.
> But the amendment offered by Sen. Byron Dorgan, D-N.D., did not > provide
> revenue-sharing of the proceeds with coastal states and that > prompted many
> Republicans, including Energy and Natural Resources ranking member > Lisa
> Murkowski, to oppose it. By the same margin, the committee rejected an
> amendment by Louisiana Democratic Sen. Mary Landrieu to give coastal > states
> 37.5 percent of the revenue. The committee's action prompted a > personal
> appearance from Sen. Bill Nelson, D-Fla., who is not on the > committee but
> has strongly opposed any oil and gas exploration off his state's > coasts.
> Nelson said "a bunch of senators will filibuster this if they have to"
> because the exploration area would include an area where military > exercises
> take place off the Florida coast. Dorgan's amendment also included the
> Destin Dome, a formation south of Pensacola, Fla., believed to > contain a
> substantial reserve of natural gas.
>
>
> http://www.nationaljournal.com/congressdai...090609_8580.php
>
> -----
> HILL BRIEFS: BORDER CZAR SEES PROGRESS IN EFFORT AGAINST CARTELS
>
> Homeland Security. The Homeland Security Department's border czar > today
> said it is too early to tell whether U.S. government efforts to stop > the
> smuggling of cash and guns into Mexico is putting pressure on the > Mexican
> drug cartels. But Alan Bersin used a news conference at department
> headquarters to defend the focus on Mexico-bound traffic, arguing > that it
> needs to be viewed in a broader context. In March, the department > announced
> it would begin searching vehicles and people heading into Mexico in an
> effort to prevent smuggled cash and money from reaching the cartels. > About
> 1,000 illegal guns and millions of dollars in illicit cash bound for > Mexico
> have been confiscated at border checkpoints so far in FY09, Bersin > said.
> "If southbound checks were simply the program, I don't think we could
> expect to see that to be successful," Bersin cautioned. Bersin said
> southbound inspections are an "important piece of a much larger > strategy"
> that includes efforts to combat international arms trafficking and the
> movement of weapons through Mexico's southern border. The strategy > also
> includes the tracking of money and money laundering beyond bulk cash,
> Bersin said. "But for the first time we've actually created a > deterrent
> that simply wasn't present, wasn't credible before," he added. He > also said
> Homeland Security and Defense officials are discussing whether to send
> National Guard troops back to the border.
>
>
> http://www.nationaljournal.com/congressdai...090609_1648.php
>
> -----
> HILL BRIEFS: HATCH SEES MOVEMENT ON IP AGENDA
>
> Judiciary. Sen. Orrin Hatch, R-Utah, said today he is hopeful the > Senate
> Judiciary Committee will move forward on its intellectual property > agenda
> as early as this summer despite a packed schedule. Among the issues
> awaiting the panel's attention include a proposal to end an AM/FM > radio
> royalty exemption; overhauling a portion of U.S. copyright law that > deals
> with musical tracks, images, videos or other content whose owners > cannot be
> easily located; and a bill to reauthorize expiring provisions of a > statute
> that lets satellite systems retransmit local and distant TV signals > into
> markets across the country. His comments echoed similar remarks by
> Judiciary Chairman Patrick Leahy Thursday. Despite heavy lobbying by > the
> National Association of Broadcasters, a bill that would require > payments to
> performers passed the House Judiciary Committee last month. "There's > no
> question that radio play promotes artists and their sound > recordings," said
> Hatch, himself a songwriter. "There's also no question that radio > stations
> profit directly from playing artists' recordings."
>
>
> http://www.nationaljournal.com/congressdai...090609_9201.php
>
> -----
> HILL BRIEFS: HOUSE PANEL RECOMMENDS IMPEACHMENT
>
> Judiciary. A House panel voted 10-0 to recommend impeachment of a > federal
> judge from Texas who has been convicted of lying about sexual > assaults of
> two female employees, the Associated Press reported. The House task > force,
> led by Rep. Adam Schiff, D-Calif., took 20 minutes to agree to four
> articles of impeachment against U.S. District Judge Samuel Kent of
> Galveston. The recommendation goes to the full House Judiciary > Committee,
> which could vote as early as Wednesday.
>
>
> http://www.nationaljournal.com/congressdai...090609_8191.php
>
> -----
> HILL BRIEFS: BACHUS NAMES STAFFER FOR HOUSE PANEL
>
> People. House Financial Services ranking member Spencer Bachus > announced
> the appointment of Vincent Randazzo as deputy staff director. > Randazzo will
> lead the panel's strategic communications efforts, which include
> coordination with leadership and member offices. Randazzo most > recently
> served as director of government relations for Wachovia. Before > that, he
> was director of public policy for the Business Roundtable.
>
>
> http://www.nationaljournal.com/congressdai...090609_6939.php
>
> -----
> HILL BRIEFS: CORRECTION
>
> Correction. Contrary to a story in Monday's CongressDailyPM, former > Sen.
> Tom Daschle, D-S.D., was not majority leader in the early 1990s.
>
>
> http://www.nationaljournal.com/congressdai...090609_2001.php
>
> -----
> THE FINAL WORD: THE FINAL WORD
>
> "I've met a few copyright lawyers since coming to Washington. What > they
> lack in personality, they make up for in intelligence."
>
> -- Sen. Orrin Hatch, R-Utah, at the World Copyright Summit today.
>
>
> http://www.nationaljournal.com/congressdai...090609_8672.php
>

CongressDaily AM for Wednesday, June 10, 2009
>
> --------------------
> CONTENTS
>
> SENATE: LEARNING FROM GUANTANAMO SILENCE, DEMS FIGHTING BACK ON HEALTH
> CARE
> By Dan Friedman
>
>
> Senate Democrats, who by their silence largely allowed Republicans to
> frame the debate over White House plans to close the detention > facility at
> Guantanamo Bay, Cuba, have turned to Majority Whip Durbin to make > sure the
> same thing doesn't happen with the high-stakes debate about health > care.
>
> Senate Minority Leader McConnell has launched daily attacks on the > public
> insurance option in healthcare reform legislation since Congress > returned
> from the Memorial Day recess, just as he hammered away at the > Guantanamo
> plan before the break. This time, Durbin and some other Democrats are
> hitting back with point-by-point rebuttals.
>
> "The impression was that if he was allowed to go unanswered that many
> people might be convinced," Durbin added. "But if you go to the > floor and
> tell the other side of the story, rebut the argument, I think we > have a
> good thing to tell."
>
>> From April 20 to late May, McConnell ripped Senate Democrats nearly >> every
> day for backing a White House effort to close the detention facility
> without a plan for relocating its occupants.
>
> The floor speeches -- more than 20 in all -- were little noted when > they
> started, but senators in both parties later credited the repetitive > and
> unanswered attacks with helping drive the Democratic Caucus to vote
> overwhelmingly to strip funding to close Guantanamo from the FY09
> supplemental spending bill.
>
> That will not happen on health care, Senate Democrats vow.
>
> McConnell argues that the public insurance option in the plan > developed by
> Senate Health, Education, Labor and Pensions Chairman Edward Kennedy > and
> backed by the White House will drive private insurers from the market,
> result in long waits for care and lead, in some cases, to treatment > being
> denied.
>
> Citing McConnell's claim that the public option would eventually cause
> Americans to give up their existing coverage, Durbin said Tuesday that
> "exactly the opposite is true. President Obama has said, and what we > are
> saying, is that if you have a good health insurance, you can keep it."
>
> Pointing to McConnell's descriptions of Canadian and British > citizens who
> have had to wait years for vital treatments, Durbin cited existing > delays
> in the United States.
>
> "The senator from Kentucky says, 'we don't want a Canadian plan. We > don't
> want a British plan. We don't want a New Zealand plan.'" Durbin > said. "He's
> right. We want an American approach."
>
> Democratic leadership aides said Durbin, after consulting with > Majority
> Leader Reid and the Democratic Caucus, decided last week to > aggressively
> counter McConnell on health care and, from now on, on the closure of
> Guantanamo, for which the White House still hopes to get funds.
>
> "It's no accident that Sen. McConnell is doing this repeatedly," > Durbin
> said. "And so clearly there is [a] Republican message strategy and > we think
> there's another side of the story. We're going to make a point of > saying
> that on that floor."
>
> GOP leadership aides shrugged off Democratic efforts to counter
> McConnell's attacks.
>
> "Maybe if Democrats spent less time shadowing the Republican leader > and
> more time listening to him, their spin would be less pathetic and > people
> wouldn't laugh every time they feigned an interest in > bipartisanship," one
> Republican aide said.
>
>
> http://www.nationaljournal.com/congressdai...090610_6600.php
>
> -----
> HOUSE LEADERSHIP: GOP TAPS MCKEON FOR HASC RANKING SLOT
> By Megan Scully with Billy House and Kasie Hunt contributing
>
>
> The House Republican Steering Committee on Tuesday selected Rep. > Howard
> (Buck) McKeon, R-Calif., to be the next ranking member of the House > Armed
> Services Committee.
>
> The decision, which still must be approved by the Republican > Conference,
> opens a vacancy for the top Republican slot on the House Education and
> Labor Committee, where McKeon was the ranking member.
>
> McKeon will take over from Rep. John McHugh, R-N.Y., who last week
> resigned the Armed Services ranking member post and left the committee
> after President Obama nominated him to be Army secretary.
>
> The California Republican takes over the top GOP slot on the panel > at a
> busy time, with subcommittee markups of the massive FY10 defense
> authorization bill set to begin Thursday. The full committee will > consider
> the bill June 16 during a markup that will cover everything from the
> military's weapons programs to quality-of-life initiatives for > troops and
> their families.
>
> "We have to hit the ground running," McKeon said in a brief interview
> shortly after the steering committee's vote.
>
> The prolific fundraiser and close ally to Minority Leader Boehner > said he
> had been preparing for the markup in the event he won the position.
>
> In a statement issued later, he said he would push for several > Republican
> priorities, including restoring funding for missile defense programs > and
> keeping detainees held at the military's detention center at > Guantanamo
> Bay, Cuba, off U.S. soil.
>
> Armed Services Air and Land Forces Subcommittee Chairman Roscoe > Bartlett
> of Maryland -- the most senior Republican on the full committee -- > and Rep.
> Mac Thornberry of Texas, who ranked third in seniority behind > Bartlett and
> McKeon, vied for the slot.
>
> Several House GOP aides said Tuesday it was a close contest between
> Thornberry and McKeon, who had been considered the strongest > contenders for
> the slot.
>
> Bartlett campaigned on his experience and argued he should have been
> selected based on his seniority. He issued a stinging statement > after the
> vote.
>
> "Not for the first time, big state and big money politics trumped
> experience, independent judgment and dedication to the legislative > work of
> a committee," he said. "My priorities are unchanged. I remain > focused and
> committed to protecting our country and our men and women in uniform."
>
> In an interview Friday, Bartlett suggested that, as the only Maryland
> Republican, he was at a disadvantage against Republicans from > California
> and Texas -- big states with significant representation on the > steering
> committee.
>
> "Poor little me," he said. "I'm all alone in Maryland."
>
> Bartlett complained about McKeon's and Thornberry's attendance at > House
> Armed Services Committee hearings, saying they have other priorities.
>
> McHugh, who has resigned his slot on the steering committee, said
> Republicans made a "fine decision" and added that McKeon will be a > "great
> leader."
>
> Several House Armed Services Committee Republicans endorsed the > decision,
> citing McKeon's experience as a leader on the Education and Labor > panel.
>
> Armed Services Oversight and Investigations Subcommittee ranking > member
> Rob Wittman, R-Va., called McKeon a "real facilitator" and said he > expects
> him to reach out regularly to committee Republicans, as McHugh had > done.
>
> Rep. Michael Turner, R-Ohio, said McKeon is someone who can move > smoothly
> into the position "and pick it up, as he is now, as if it were a relay
> stick passed in a race."
>
> During its meeting, the steering committee also selected Rep. Todd > Platts,
> R-Pa., to fill the Armed Services vacancy created by McHugh's > departure.
>
> House Rules ranking member David Dreier said after the meeting that he
> expected a decision on the Education and Labor post in the next week > or so.
>
> Rep. Joe Wilson, R-S.C., will vie for the job, his spokesman, Ryan > Murphy,
> said Tuesday. Wilson is outranked on the committee by Republican > Reps. Tom
> Petri of Wisconsin and Michael Castle of Delaware.
>
> Petri lost a bid for the committee chairmanship in 2001, when he ran
> against Boehner, while Castle is considering a run for the Senate. > Rep.
> John Kline, R-Minn., is next in line after Wilson and confirmed > Tuesday he
> will seek the spot.
>
> McKeon said he does not plan to step down as Education and Labor > ranking
> member until his successor is named.
>
>
> http://www.nationaljournal.com/congressdai...090610_1544.php
>
> -----
> HEALTH: GOP KNOCKS HELP BILL AS CONRAD PLAN GAINS TRACTION
> By Anna Edney with Dan Friedman contributing
>
>
> Healthcare overhaul legislation released Tuesday by Senate Health,
> Education, Labor and Pensions Democrats was attacked almost > immediately by
> the panel's top Republican for lacking GOP input.
>
> "We've been meeting with Democrats for months to discuss healthcare
> reform, but from what I've seen in this proposal, it doesn't look > like they
> listened at all," HELP ranking member Michael Enzi said.
>
> A senior Enzi aide highlighted perceived problems with the 615-page > bill,
> including the potential for the establishment of a public insurance > plan
> and an employer mandate; an expansion of Medicaid coverage to families
> earning up to 150 percent of poverty, and the creation of an > advisory panel
> that would determine the minimum qualifying coverage for insurance > plans
> that want to participate in an exchange.
>
> Sen. Christopher Dodd, D-Conn., said the bill omits public plan and
> employer mandate language to allow more time to reach a compromise > with
> Republicans. The Enzi aide said Republicans take Dodd at his word. > But the
> aide noted that a lack of specific proposals for the two provisions
> Republicans have said they will not support weakens the ability of
> stakeholders to criticize them as the committee nears a markup.
>
> Robert Zirkelbach, a spokesman for America's Health Insurance Plans,
> reiterated the insurance lobby's opposition to a public plan as a > provision
> that would damage the employer-sponsored healthcare system and raise > costs
> for those who remain in private insurance.
>
> "This does not symbolize the end of the game or even the end of the > first
> quarter," Dodd said. "We still have a lot of work ahead of us and are
> looking forward to working with our colleagues on a bipartisan basis > to
> resolve the remaining issues and move forward with a markup of this
> legislation next week."
>
> The HELP Committee will mark up the bill Tuesday, a day before Senate
> Finance Chairman Max Baucus said he will mark up his own bill. > Baucus is
> expected to release a bill early next week. The HELP Committee plans > to
> hold a roundtable discussion on its bill Thursday afternoon.
>
> As details emerge, HELP and Finance Republicans wrote Baucus, Dodd and
> HELP Chairman Edward Kennedy Tuesday asking them to provide GOP > members
> with offsets for overhaul legislation before markup and to give > members as
> many as 10 days to review any measure.
>
> One area of potential compromise on the overhaul could be a public > plan
> alternative offered this week by Senate Budget Chairman Kent Conrad > that
> would create a system of pooling similar to a co-op through which > people
> could purchase insurance. Enzi thinks the idea is interesting and > worth
> exploring, his aide said.
>
> Sen. Mary Landrieu, D-La., said she is reviewing the proposal after > coming
> out Tuesday against the public plan.
>
> "I don't think that the public option is the way to go, but I am
> absolutely committed to getting healthcare reform through this > Congress,"
> she said. "So while I do not support a public plan, I am keeping my > options
> open for negotiations as we move forward."
>
> Senate Finance Committee healthcare staffers met Tuesday to talk about
> Conrad's proposal, sources said. Baucus characterized it Tuesday as > the
> most bipartisan compromise.
>
> The appeal of Conrad's proposal is that it is not a government-run > option.
> Rather, the nonprofit co-ops would negotiate directly with healthcare
> providers for better rates and quality care, a Democratic source said.
>
> While Conrad's plan is evolving as negotiations continue, his > proposal is
> to start the state and regional co-ops with government seed money that
> would not be ongoing.
>
> On the House side, Ways and Means Democrats met Tuesday with President
> Obama following a caucus meeting, where key chairmen revealed an > outline of
> the overhaul bill they are crafting. Larry Summers, director of the
> National Economic Council, White House Chief of Staff Emanuel and the
> administration's healthcare czar Nancy-Ann DeParle also attended the
> meeting, Ways and Means Chairman Charles Rangel said.
>
> Rangel said the meeting focused on emphasizing the importance of the
> overhaul and that Obama is pleased with the direction of the House > bill.
>
>
> http://www.nationaljournal.com/congressdai...090610_1462.php
>
> -----
> HOUSE: HOYER: GUN WOUND MIGHT BE FATAL TO D.C. VOTE MEASURE
> By Billy House
>
>
> House Majority Leader Hoyer and Del. Eleanor Holmes Norton, D-D.C., > said
> Tuesday that prospects are dim for passage of a bill giving District > of
> Columbia residents voting rights.
>
> Hoyer, who additionally expressed confidence the bill could be > passed this
> year, said the bill stalled because District officials could not > agree how
> to deal with an amendment that would eliminate its tough gun-control > laws.
>
> "There is not a consensus among the leadership of the District of > Columbia
> on this issue as I understand it," said Hoyer. "And as a result of > there
> not being consensus, I don't think we're going to be able to move > the bill
> at this point in time."
>
> Hoyer also said he does not have the votes to pass a version of the > bill
> that does not include the gun language, which was added in the > Senate by
> Sen. John Ensign, R-Nev., and in the House by Rep. Travis Childers, > D-Miss.
>
> Backed by the National Rifle Association, the amendment has drawn
> significant support from Democrats in both the House and Senate, > many from
> Southern and rural districts.
>
> "It's clear that the [amendment] has a majority of votes," Hoyer said.
> Still, he and Norton stopped short of declaring the bill dead.
>
> "Giving up is not an option," said Norton, who would have a chance to
> become a full-fledged representative if the measure passed.
>
> Added Hoyer, "I will not give up on this bill. I will continue to > work on
> it."
>
> But he said he continues to be "very disappointed that the House and > the
> Senate cannot pass a bill which enfranchises 600,000 Americans with a
> voting representative in the Congress of the United States."
>
> In addition to establishing a seat in the Democratic-dominated > District,
> the legislation would add another seat in reliably-Republican Utah.
>
> In a statement, Norton's office acknowledged that she has been > canvassing
> voting rights advocates "who have worked the hardest for the bill" and
> found agreement that the bill "should not move at this time" because > of the
> gun provision.
>
> The statement also said that despite her "overriding priority for > voting
> rights," Norton believed she had "an obligation to expose the unusual
> public safety dangers posed by the Ensign amendment."
>
> D.C. Council Chairman Vincent Gray said he was disappointed that the > bill
> had lost momentum, but added that the "the onerous and dangerous > nature" of
> the gun rider "perhaps makes this delay a necessary step for now."
>
>
> http://www.nationaljournal.com/congressdai...090610_9527.php
>
> -----
> APPROPRIATIONS: OBEY'S TENTATIVE SCHEDULE ASSUMES BEST-CASE SCENARIOS
> By Humberto Sanchez
>
>
> House Appropriations Chairman David Obey said he expects the House > to pass
> all 12 FY10 appropriations bills by July 30, according to a tentative
> schedule released Tuesday.
>
> "This schedule would allow the House to complete action on all FY10
> appropriations bills before the August recess, provided that > consideration
> of other high priority legislation does not intervene and provided > that we
> have reasonable procedural cooperation from all members," Obey said > in a
> release. "It is an ambitious schedule, but it is workable if we all > work
> together and if other crucial considerations do not intervene."
>
> Under the schedule, the Homeland Security spending bill would be the > first
> to see House floor action, scheduled for Friday. The Defense > appropriations
> bill would be the last, which is slated for July 30. The > Appropriations
> Committee Tuesday passed the Commerce-Justice-Science bill and > signed off
> on the FY10 302b allocations. (See related item, page 18.)
>
> Scott Lilly, a former Democratic clerk and staff director of the House
> Appropriations Committee who is now a senior fellow at the Center for
> American Progress, said he believes Democrats will need luck to > finish all
> 12 bills by July 30, citing likely Republican efforts to disagree > with --
> and offer alternatives to -- Democratic funding priorities.
>
> "If you were lucky on the House side, I think you could stick with > that
> schedule," Lilly said. "I think it's going to be hard, but I think > they
> could do it."
>
> The House schedule comes after Senate Appropriations Chairman Daniel
> Inouye this year set the goal of completing work on all bills by > Oct. 1,
> the beginning of the fiscal year.
>
> In recent years, congressional leaders have had a difficult time > meeting
> the Oct. 1 goal, and experts contend that even under the best of
> circumstances it can be an arduous process.
>
> For example, work on nine FY09 bills was wrapped up in March, months > after
> the start of the current fiscal year, when Congress passed a $410 > billion
> omnibus package. The FY08 appropriations process was funded through a
> nearly yearlong continuing resolution enacted in December 2007.
>
> But while Lilly believes that the odds are against Congress > finishing all
> the bills by Oct. 1, he expects that they will complete their work > soon
> after.
>
> House Majority Leader Hoyer pledged to work with Obey to meet his
> timetable. "I hope that our Republican colleagues will work with us to
> complete the appropriations process in an open and timely manner," > Hoyer
> said.
>
>
> http://www.nationaljournal.com/congressdai...090610_9056.php
>
> -----
> FINANCE: GEITHNER SAYS FINANCIAL SYSTEM SHOWS SIGNS OF HEALING
> By Elaine S. Povich
>
>
> Treasury Secretary Geithner testified Tuesday that while the nation's
> financial system "is beginning to heal," it still faces significant
> difficulties.
>
> Geithner's testimony to the Senate Financial Services Appropriations
> Subcommittee came as the Treasury Department announced it will allow > 10 of
> the nation's banks that received part of the $700 billion from the > Troubled
> Asset Relief Program bailout in October to repay $68 billion to the
> government.
>
> In addition, the banks, which gave warrants to the Treasury in > return for
> the money, are being allowed to repurchase that stock at a fixed > price.
> That, Geithner said, could raise funds in the "several-billion-dollar
> range." But Geithner said the nation's financial system is not out > of the
> woods. "The force of the storm is weakening a bit, and the economy is
> beginning to heal, but our country faces very substantial economic and
> financial challenges," he said.
>
> Financial Services Appropriations Subcommittee Chairman Richard > Durbin,
> D-Ill., said he was concerned about whether the banks that are > repaying
> TARP money are going to loosen credit to prospective borrowers.
>
> "These banks are in a position now where they can make normal business
> judgments about lending," Geithner said. "It is going to be that > borrowing
> will decline as we go through this, and that is a healthy thing, a
> necessary thing. You have a financial system that is significantly > stronger
> today than it was two, three, six months ago," Geithner said.
>
> President Obama will announce regulations for financial institutions > next
> week and those may address executive compensation, the insurance > industry
> and other issues, he said.
>
> Sens. Jon Tester, D-Mont., and Susan Collins, R-Maine, questioned the
> decision to close hundreds of dealerships nationwide, including many > in
> rural areas. Both senators said would that have an adverse affect on > those
> economies.
>
> "Dealerships in Maine tell me they pay for the cars; they pay for the
> shipping; they own their showrooms, and they pay their people," > Collins
> said. "How does it [closing dealers] save money?"
>
> Geithner hesitated a bit. "I've never run an automobile company," he
> began.
>
> "Till now," Collins shot back.
>
> Geithner said closing dealerships, which he said was the companies'
> decision, was designed to reduce distribution costs. Tester > maintained that
> closing dealerships has a disproportionately adverse effect on rural > areas.
> "If a dealership is making money, I don't see any reason to shut them
> down," he said.
>
>
> http://www.nationaljournal.com/congressdai...090610_7241.php
>
> -----
> TRADE: EMBASSY SAYS URIBE WILL VISIT WITH OBAMA LATER THIS MONTH
> By Peter Cohn
>
>
> Colombian President Alvaro Uribe will travel to Washington to meet > with
> President Obama on June 29, the Colombian Embassy said Tuesday, for > their
> first in-depth talks since Obama took office.
>
> An embassy spokeswoman said a wide range of topics from energy to drug
> interdiction would likely be discussed, as well as the stalled
> U.S.-Colombia trade agreement inked by Uribe and Obama's predecessor,
> George W. Bush. A White House press aide referred a call to the > National
> Security Council, which declined to confirm that the meeting with > Uribe
> would take place.
>
> Obama and Uribe spoke briefly at the Summit of the Americas in > Trinidad
> and Tobago in April. After that trip, Trade Representative Kirk said > the
> administration was laying the groundwork for movement on a separate > trade
> accord with Panama, and also working to identify conditions under > which the
> Colombia deal could be approved.
>
> But the pending trade pacts have been put on hold pending a broader > review
> of the administration's trade policy and probably until complex > domestic
> priorities such as healthcare reform are completed. That decision > has drawn
> rebukes from lawmakers such as Senate Finance Chairman Max Baucus, who
> argues Congress can "walk and chew gum at the same time."
>
> The Colombia trade agreement has deeper problems than just skepticism
> about trade and its impact on jobs and the economy. That country's > history
> of violence against union officials has earned the trade agreement the
> die-hard opposition of U.S. labor groups who enjoy even broader sway > now
> than they did last year, when House Democrats postponed a vote > indefinitely
> after the Colombia pact was submitted to Congress by Bush.
>
> If the Panama deal gets pushed off until late this year, it appears
> unlikely Democrats will move on the Colombia pact as well. And > moving a
> trade agreement during an election year in 2010 is always a heavy > lift.
> That has led to major frustration within the business community and > farm
> groups. "I don't even see Colombia on the clock. We're not even in > the race
> right now," said Rebecca Bratter, director of policy at U.S. Wheat
> Associates.
>
> U.S. wheat exporters shipped $331 million worth of their product to
> Colombia in 2008. The trade accord would likely boost output by > immediately
> eliminating a 12.5 percent duty, which the International Trade > Commission
> has estimated would make wheat growers the biggest winners under the > deal
> other than producers of rice and cereal grains.
>
> That's not the whole story, Bratter said, arguing that a pending
> Canada-Colombia trade deal could wipe out domestic producers' market > share.
> "It's not only what we're going to gain, but what we're going to > lose," she
> said, which in this case would be the existing 60 percent U.S. share > of the
> Colombian wheat market.
>
> Bratter said Colombian wheat importers would shift their business to
> Canada, whose wheat would no longer be subject to tariffs. "If we > don't
> have that agreement, we're going to lose a very good customer," she > said.
> "Colombia wants to buy from the U.S., but profit-wise, if it costs > too much
> for them, they're not going to do it."
>
> The one bit of leverage the deal's backers might have is that the > Andean
> trade preferences program, which provides duty-free benefits to > imports
> from Colombia and other countries in the region, expires on Dec. 31.
> Lobbying on that measure has already begun, and in a related > development,
> several business groups wrote to Kirk on Tuesday urging him to > consider
> removing Ecuador from the list of eligible countries.
>
> The letter was sent by the Business Roundtable, Emergency Committee > for
> American Trade, National Association of Manufacturers, National > Foreign
> Trade Council, United States Council for International Business and > U.S.
> Chamber of Commerce. The groups argue corruption in Ecuador is > rampant and
> that the country's leftist government has fostered an inhospitable
> environment for U.S. companies.
>
> "Given these basic gaps in the rule of law, we believe that the > automatic
> renewal of Andean preferences for Ecuador would send the wrong > message to
> other developing countries in the Hemisphere and throughout the > world that
> have worked to meet the basic eligibility standards to qualify for > U.S.
> trade preferences," the letter states.
>
>
> http://www.nationaljournal.com/congressdai...090610_3723.php
>
> -----
> ENVIRONMENT: HOUSE DEM LEADERS REACH OUT TO DISPARATE CAUCUSES
> By Darren Goode
>
>
> While much focus has been on weary committee chairs, House Democratic
> leaders are also reaching out to other Democratic caucuses to smooth > out
> potential problems before bringing a climate bill up to the floor
> potentially by Independence Day.
>
> Energy and Commerce Chairman Henry Waxman is scheduled to brief the
> 69-member New Democrat Coalition at their weekly meeting Thursday at
> Waxman's request. The group includes 17 first-term Democrats, many > of whom
> represent swing districts important to Democratic leaders to keep > hold of
> in the 2010 elections. Energy for the second straight week will also > be one
> of the topics when Speaker Pelosi today holds her regular separate > meetings
> with freshmen and sophomores.
>
> Last week, Waxman and Energy and Environment Subcommittee Chairman > Edward
> Markey, D-Mass., attended the freshmen meeting and Rep. Rick Boucher,
> D-Va., joined the two of them at the meeting of the sophomores, a > House
> Democratic leadership aide said. Boucher Tuesday said another > meeting might
> happen this week with the freshmen.
>
> Boucher said one of the issues raised at last week's briefing with the
> sophomore class was how to sell the bill in the face of stiff > resistance in
> some districts.
>
> Democrats in the last two election cycles made significant gains
> particularly in areas historically favoring Republicans, who have been
> actively deriding the Energy and Commerce bill as imposing a huge > tax on
> businesses and consumers.
>
> "The political side of me says, 'put the bill up ... because it's a
> terrible bill for Democrats to have to vote for and support,'" > Energy and
> Commerce ranking member Joe Barton said.
>
> The National Republican Congressional Committee issued a rapid-> response
> series of e-mails hitting some of the panel's Democrats over regional
> issues -- such as Reps. Zack Space of Ohio on coal and Charlie > Melancon of
> Louisiana on oil and gas -- after several Republican message > amendments
> were defeated in the recent Energy and Commerce markup. The NRCC > followed
> that with a series of robocalls when Pelosi visited Iowa over the > weekend,
> targeting the state's three Democratic House members -- Reps. Bruce > Braley,
> Leonard Boswell and Dave Loebsack.
>
> On Monday, the NRCC sent out a first batch of releases targeting > Democrats
> on the Agriculture Committee, whose chairman, Rep. Collin Peterson of
> Minnesota, has been working with Waxman on a list of problems he has > that
> are shared by some other rural Democrats. "Is [Rep.] Tim Walz among > those
> willing to stand against the Dems' job-killing climate bill?" asks > one such
> NRCC release Monday of Walz, also a Minnesota Democrat.
>
> On Tuesday, Walz said he shares the concerns Peterson has cited, > including
> EPA's proposed inclusion of international land-use to determine the > carbon
> footprint of corn-based ethanol. "I believe that [if] we don't get a
> correction on that, then we will not be a part of an energy bill and > we
> will not be able to help reduce emissions," Walz said of ethanol > backers.
>
> Walz also wants more help for rural electricity companies, who met > with
> his district staff Monday. His staff also met with environmental > groups
> Tuesday. "And we're asking them, lay your case out," said Walz, who
> personally met with the Congressional Research Service Tuesday for a
> walk-through of four of the bill's sections.
>
> Aides to Waxman and Peterson have been trying to work out deals, but > when
> asked Tuesday whether he saw a light at the end of the tunnel in the > talks,
> Peterson said, "Not at this moment. ... A lot of problematic issues."
>
> He said he thought that possibly by today, staffers will get as far as
> they would be able to. "I think they're getting near the end," he > said.
>
> There is also pressure coming from the left. Forty environmental > groups --
> including Friends of the Earth, Greenpeace and Public Citizen -- > asked Ways
> and Means Chairman Charles Rangel Tuesday to act on the bill. "We > believe
> that the environmental, economic, public health and international > security
> threats of global warming require full and fair consideration by the
> multiple committees of jurisdiction in the House of > Representatives," their
> letter to Rangel states.
>
> Rangel has shown signs, though, that he might skip a formal markup > on the
> bill given the heavy attention his panel is paying to healthcare
> legislation. "It was pointed out by a couple of members about how > difficult
> it was in a short period of time to concentrate on climate and > health,"
> Rangel said regarding an hour-long meeting Ways and Means Democrats > had
> Tuesday with President Obama on health care.
>
> He reiterated to Obama that nothing will stand in the way of doing a
> healthcare bill this summer "even if it meant that we didn't have > the time
> to adequately work our will on energy." His panel might still take > up an
> energy and climate bill. "We haven't taken that up, but we will soon I
> guess," Rangel said.
>
>
> http://www.nationaljournal.com/congressdai...090610_4704.php
>
> -----
> FINANCE: LAWMAKERS INTENSIFY FOCUS ON TRANSPARENCY AND THE FED
> By By Bill Swindell and Carrie Dann
>
>
> House members are stepping up their efforts to bring more > transparency to
> the Federal Reserve over mounting concerns that the central bank has > had
> little accountability in its decision to lend more than $1 trillion to
> firms in its bid to stabilize the economy.
>
> House Financial Services Chairman Barney Frank on Tuesday favorably > noted
> a measure introduced by Rep. Ron Paul, R-Texas, that would allow GAO > audits
> of the Federal Reserve.
>
> "I would like to take a look at it," said Frank of Paul's legislation,
> which has collected 190 co-sponsors. "Yes, the GAO should be able to
> audit."
>
> He added that his primary concern will be maintaining the > independence of
> the Fed while increasing Congress' ability to oversee the massive
> transactions it conducts.
>
> "The question is ... that we are losing the independence of monetary
> policy," he said. "I don't think we are. But I think maybe we need > to put
> some safeguards on it."
>
> House Financial Services Domestic Monetary Policy Subcommittee > Chairman
> Melvin Watt, D-N.C., is expected to hold a hearing on the issue, said
> Frank.
>
> The calls to shine a brighter light on the notoriously shadowy > agency come
> as the House Oversight and Government Reform Committee issued a > subpoena
> for internal Fed documents relating to its intervention late last > year in
> Bank of America's acquisition of Merrill Lynch.
>
> Domestic Policy Subcommittee Chairman Dennis Kucinich, D-Ohio, > requested
> the Fed's documents on March 30, and committee investigators were > allowed
> to view them at Fed headquarters only after he and Oversight and > Government
> Reform Chairman Edolphus Towns threatened to issue a subpoena in late
> April.
>
> But the investigators were only allowed to copy the documents by hand.
> What prompted the subpoena, aides said, was the lack of response to a
> committee request that hard copies of the reviewed documents -- > including
> e-mails and notes of meetings held by Federal Reserve Chairman > Bernanke and
> other top Fed officials -- be provided for a hearing Thursday that > will
> feature testimony from Bank of America CEO Ken Lewis.
>
> According to testimony prepared in advance of the hearing, Lewis is
> expected to describe how, in mid-December, Bank of America officials > came
> close to calling off the merger before entering into intense > negotiations
> with government officials intent on stabilizing financial markets.
>
> "Officials of the company, the Treasury Department, and the Federal
> Reserve discussed a plan to close the transaction, with the government
> providing assistance," Lewis says in his written testimony.
>
> Kucinich has won bipartisan support for legislation similar to > Paul's that
> would authorize GAO to open the Fed's books. Towns and Oversight and
> Government Reform ranking member Darrell Issa are among the co-> sponsors.
>
> Their hearing, and the scuffle over access to the Fed's documents, may
> give lawmakers a more prominent stage to voice concerns that > Bernanke has
> overstepped his authority under the central bank's charter by > lending more
> than $1 trillion to firms outside the traditional banking structure.
>
> The Fed's role will continue to be highlighted during the debate > over a
> regulatory revamp, especially in regard to Treasury Secretary > Geithner's
> approach. Geithner apparently favors having the central bank serve > as a
> super-regulator to monitor systemic risk throughout the financial > services
> spectrum so one company's failure does not result in a market crash.
>
> But there is major resistance in Congress to expanding the central > bank's
> authority and lawmakers are expected to opt for a council approach, > though
> the Fed could play the lead role in such a set-up.
>
> Some conservatives say that expanded powers would take away from the > Fed's
> mission to dictate monetary policy, while liberals such as Senate > Banking
> Chairman Christopher Dodd have chastised its weak consumer protection
> efforts in the subprime mortgage market.
>
>
> http://www.nationaljournal.com/congressdai...090610_5454.php
>
> -----
> HEALTH: SENATE SET TO PASS TOBACCO MEASURE
> By Kasie Hunt
>
>
> The Senate Tuesday rejected an alternative tobacco regulation proposal
> from North Carolina's senators Tuesday, setting up a final vote on the
> underlying bill as early as today.
>
> The substitute, backed by North Carolina Sens. Richard Burr, a > Republican,
> and Kay Hagan, a Democrat, was defeated 60-36, with Hagan the only > Democrat
> voting in favor of it. Their proposal would have created a new agency
> inside HHS to regulate tobacco and would have banned print > advertising for
> cigarettes entirely.
>
> The underlying bill, the result of a multi-year effort, would give FDA
> authority over tobacco products, allowing the agency to limit the > amount of
> nicotine and put restrictions on marketing and advertising. It would > also
> enlarge cigarette warnings and prohibit flavored cigarettes unless > they
> taste like menthol.
>
> The Senate voted to cut off debate on the underlying bill on Monday,
> 61-30. Majority Leader Reid said he would consider germane > amendments to
> the bill, but Republicans said they did not have a commitment that > their
> proposed changes would get votes.
>
>
> http://www.nationaljournal.com/congressdai...090610_2699.php
>
> -----
> TELECOMMUNICATIONS: INDUSTRY, LOCAL GOVERNMENTS CLASH OVER CELL > PHONE FEES
> By David Hatch
>
>
> Cities, counties and states do not see anything fair about the "Cell > Tax
> Fairness Act of 2009," which would bar them from imposing new fees on
> mobile phone service for five years.
>
> But the legislation, introduced by Rep. Zoe Lofgren, D-Calif., has
> considerable support, both from the wireless industry and 120 co-> sponsors.
>
> The measure stirred up debate Tuesday at a hearing before the House
> Judiciary Subcommittee on Commercial and Administrative Law. It would
> grandfather existing taxes under the moratorium, while new > surcharges could
> be levied if they apply to other goods and services.
>
> The legislation is intended to foster increased deployment and usage > of
> wireless high-speed Internet access, especially as the Obama > administration
> implements strategies to extend and improve broadband technology. A
> bipartisan companion bill sponsored by Sen. Ron Wyden, D-Ore., has six
> co-sponsors.
>
> Among the parties raising concerns are the National Association of
> Telecommunications Officers and Advisors, National League of Cities > and
> U.S. Conference of Mayors.
>
> "Given the strength and profitability of this industry, one wonders > why
> they are seeking preferential tax treatment," Joanne Hovis, a member > of the
> NATOA board of directors, testified on behalf of several groups.
>
> "Enactment of this bill would lead other industries to seek similar
> special federal protection from state and local taxes," warned Don > Stapley,
> president of the National Association of Counties.
>
> Panel supporters emphasized the huge tax burden that wireless > companies
> and their customers already face -- a figure the wireless > association CTIA
> estimates at $21 billion annually. "I strongly believe that consumers
> should be the ones to pick winners and losers and not government," > said
> Commercial and Administrative Law Subcommittee ranking member Trent > Franks,
> R-Ariz.
>
> "I'm cognizant of the current plight that the local governments are > facing
> vis-a-vis revenue," said Commercial and Administrative Law > Subcommittee
> Chairman Steve Cohen, D-Tenn., who insisted the measure only targets
> "discriminatory taxes."
>
> CTIA contends that more than 15 percent of the average wireless bill
> reflects combined federal, state and local surcharges -- more than > double
> the average rate for other products and services.
>
> Lofgren asserted that wireless taxes are regressive because they
> disproportionately affect low-income customers, who rely heavily on > cell
> phones for voice and Internet connections.
>
> NATOA's Hovis countered that the wireless industry has a poor track > record
> of investment in low-income and rural areas.
>
>
> http://www.nationaljournal.com/congressdai...090610_4489.php
>
> -----
> HOUSE RACES: REPUBLICAN FILES PAPERS TO CHALLENGE KOSMAS
>
> Winter Park, Fla., City Commissioner Karen Diebel, a Republican, filed
> paperwork with the FEC to run for the seat held by freshman > Democratic Rep.
> Suzanne Kosmas, the Orlando Sentinel reported.
>
> "I am not a career politician," Diebel said. "I am a mother who > wants to
> ensure a bright future for my three children. I am a businesswoman who
> wants to create local jobs."
>
> Kosmas, who ousted Republican Rep. Tom Feeney last year, has been
> mentioned by the National Republican Congressional Committee as one of
> their top six targets.
>
>
> http://www.nationaljournal.com/congressdai...090610_2367.php
>
> -----
> TRADE: AFGHANISTAN-PAKISTAN PREFERENCES HITCH RIDE ON BROADER BILL
> By Peter Cohn
>
>
> A high-ranking House Democrat is on the cusp of attaching > legislation to a
> foreign aid bill that would make products from troubled regions of
> Afghanistan and Pakistan eligible for duty-free treatment at the U.S.
> border.
>
> House leaders agreed to include the proposal from Rep. Chris Van > Hollen,
> D-Md., the assistant to the speaker, during Rules Committee > consideration
> of the broader bill on Tuesday. That measure from Foreign Affairs > Chairman
> Howard Berman, which would triple U.S. economic aid to Pakistan, > might not
> see a final vote until Thursday, Van Hollen said. A vote on the rule > is
> expected today, which, if successful, would incorporate the trade > measure
> into the broader bill.
>
> Van Hollen said he expected a broad bipartisan vote, which would put
> pressure on the Senate to act. "This is a national security > priority," he
> told CongressDaily Tuesday.
>
> President Obama has endorsed the bill as part of a broader regional
> strategy, which would put in place a trade preferences program for > products
> made in "reconstruction opportunity zones" in Afghanistan and > Pakistan for
> 15 years. Van Hollen's bill has bipartisan support, with Intelligence
> ranking member Pete Hoekstra a lead co-sponsor.
>
> Normally a trade bill would be formally vetted by the Ways and Means
> Committee before moving. But Van Hollen said Obama's ambassador to the
> region, Richard Holbrooke, has "made it clear we need to get this > done on
> an urgent basis" and could not wait for the normal legislative > process.
>
> Berman and Ways and Means Trade Subcommittee Chairman Sander Levin,
> D-Mich., are co-sponsors, and the committees signed off on including > the
> measure in the Pakistan aid bill. Van Hollen called the Pakistan > measure
> "the appropriate place" for the trade program, which is estimated to > cost
> $105 million and would be offset through an increase in Customs fees.
>
> Van Hollen said he spoke with Holbrooke several times in the last 24 > hours
> since the ambassador returned from Pakistan, and that he expected a > formal
> letter soon pressing Congress to enact the trade preferences > program. "The
> administration is very engaged on this now, and once we get it out > of the
> House it will certainly boost Senate prospects," he said, noting that
> Holbrooke "has been on the phone regularly since he was on the plane > coming
> back from Pakistan."
>
> The legislation would enable products made in border regions to be > shipped
> to the United States without tariffs, provided certain conditions > are met
> such as the protection of labor standards. Business groups such as > the U.S.
> Chamber of Commerce have protested the labor provisions as > unworkable, but
> support from Republicans like Hoekstra could provide sufficient > cover for
> others to back the bill.
>
> A Senate version by Sen. Maria Cantwell, D-Wash., has less stringent > labor
> provisions that could serve as the basis for negotiation, as > Republicans in
> that chamber, including Finance ranking member Charles Grassley, > have said
> they oppose the more far-reaching House language. Meanwhile, labor
> officials argue the worker protections don't go far enough, and are > almost
> an afterthought in lawless border regions of Afghanistan and Pakistan.
>
> Sensitive apparel products are not eligible for duty-free treatment > under
> the bill, which has riled importers and retailers. The U.S. domestic
> textile industry has concerns with the bill because of what they > regard as
> unenforceable transshipment rules that could allow countries like > China to
> benefit. Imports from Afghanistan are largely minor, mostly rugs and > floor
> coverings, gemstones and antiques. But Pakistan is a major player in > the
> worldwide market for cotton apparel and household goods, shipping $2.7
> billion worth to the United States last year.
>
>
> http://www.nationaljournal.com/congressdai...090610_7968.php
>
> -----
> ECONOMY: CHRYSLER SALE TO FIAT OK'D BY HIGH COURT
>
> The Supreme Court has cleared the way for the sale of bankrupt > Chrysler
> LLC to Fiat, turning down a last-ditch bid by opponents of the deal, > the
> Associated Press reported.
>
> The court said late Tuesday it had rejected a plea to block the sale > of
> most of Chrysler's assets to the Italian automaker. Chrysler, Fiat > and the
> Obama administration had warned that the high court's intervention > could
> have scuttled the sale.
>
> A federal appeals court in New York had earlier approved the sale, but
> gave opponents until Monday afternoon to try to get the Supreme > Court to
> intervene. Attorneys for several pension funds in Indiana did > appeal, and
> Justice Ruth Bader Ginsburg ordered a temporary delay just before a > 4 p.m.
> deadline on Monday.
>
> Now the court has freed the automakers to complete their deal.
>
>
> http://www.nationaljournal.com/congressdai...090610_3775.php
>
> -----
> DEFENSE: ARMY GA. PULLOUT DRAWS FIRE FROM DEFENSE APPROPRIATORS
> By Otto Kreisher
>
>
> House Defense Appropriations Subcommittee members Tuesday expressed
> concerns over the Army's impact on two communities, one because of the
> thousands of personnel moving there and one because troops are not > coming
> as expected.
>
> During the panel's review of the Army's FY10 funding request, > members also
> pressed the service's leaders on the dramatic changes in Future Combat
> Systems, the effort to reverse the massive shift of work to outside
> contractors, and the record suicide rate among soldiers.
>
> Reps. Jack Kingston, R-Ga., and Sanford Bishop, D-Ga., protested the
> sudden reversal of the Army's plans to move two brigades of troops > to Fort
> Stewart, Ga., after it had urged the nearby communities to invest in
> improvements to support the 27,000 additional soldiers and their > families.
> That move was canceled after Defense Secretary Gates stopped the > Army's
> buildup at 45 brigades, rather than 48.
>
> Kingston said the city of Hinesville and other jurisdictions spent $38
> million for schools and other improvements and private contractors > spent
> millions more on housing and other facilities. "What can we do to
> compensate these folks? What else can the Army put there?" he asked.
>
> Bishop demanded to know if the change was budget-driven. Army > Secretary
> Pete Geren said there was little budget impact from Gates' decision > to use
> the additional soldiers to fully man 45 brigades rather than build
> additional units.
>
> But he agreed that "the community has gone out on a limb" at the > Army's
> request. "We want to look at ways to mitigate that situation."
>
> Defense Appropriations Subcommittee Chairman John Murtha, D-Pa., > told the
> Georgians "we're going to work this out" and find ways to reimburse > the
> community. "This is unacceptable to us."
>
> Rep. James Moran, D-Va., demanded to know how the Army could justify > its
> decision to move 20,000 Army personnel from facilities near the > Pentagon,
> well served by public transit, to Fort Belvoir, in an area south of
> Washington with over-burdened highways and no public transit.
>
> Geren said the Army was only following the decisions of the 2005 Base
> Realignment and Closure commission.
>
> Murtha asked the status of the mandate he has pushed to cut the army > of
> contractors doing work service members or defense civilians should be
> doing.
>
> Geren said the Army has added personnel to take over many of those
> out-sourced jobs and will hire another 6,000. But contractors will > continue
> to fill many jobs, he said.
>
> Rep. Norman Dicks, D-Wash., questioned the logic of Gates' decision to
> stop the manned ground vehicle part of the FCS program, a major > component
> of the project.
>
> Army Chief of Staff Gen. George Casey, said Gates did not think the
> planned vehicles could meet current threats, but the Army would use
> research already done to produce a new line of combat vehicles.
>
>
> http://www.nationaljournal.com/congressdai...090610_6314.php
>
> -----
> PEOPLE: PEOPLE
> By Gregg Sangillo
>
>
> THE MACK. Rep. Connie Mack IV, R-Fla., has named a chief of staff. > Francis
> Gibbs, formerly Mack's legislative director, has been promoted to the
> position. Gibbs, who has worked for Mack since 2005, was legislative
> counsel for Rep. Ander Crenshaw, R-Fla. He hails from Fernandina > Beach in
> northeast Florida. He replaces Jeff Cohen, who is now with public > affairs
> office Direct Impact.
>
> IN CHAMBERS. The U.S. Chamber of Commerce has just named two well-> known
> former Justice Department officials to its National Chamber Litigation
> Center's board. James Comey, former deputy attorney general in the
> administration of former President George W. Bush, will serve as board
> chairman of the litigation center. And Paul Clement, Bush's solicitor
> general, has also been elected to the board. When Clement took his > position
> with law firm King & Spalding late last year, he reflected on his > role as
> solicitor general with National Journal. "It's a tremendous > privilege just
> to walk into that courtroom. ... I think if I ever got to the point > where I
> started taking it for granted or not getting nervous, I'd probably > find a
> different line of work."
>
> PRACTICE, PRACTICE. Deanne Maynard, who worked as an assistant in the
> solicitor general's office headed by Paul Clement, has just taken a > job
> with law firm Morrison & Foerster, where she will chair the firm's
> appellate and Supreme Court practice. She's a former clerk for Supreme
> Court Justice Stephen Breyer.
>
> PEACE OF MIND. Lauren Sucher, who was formerly working in an acting
> capacity, is now director of public affairs and communications at > the U.S.
> Institute of Peace. She's a former staffer for Rep. Jane Harman, D-> Calif.,
> and has handled media relations for the Environmental Working Group.
>
>
> http://www.nationaljournal.com/congressdai...090610_4564.php
>
> -----
> WIRED IN WASHINGTON: A HAIL OF BALLYHOO!
> By David Hatch
>
>
> Hear ye, hear ye! His majesty, Senate Commerce Chairman John (Jay)
> Rockefeller of the kingdom of West Virginia, proudly proclaims the
> coronation of the new FCC regulators. The legions of telecom industry
> executives, lawyers, lobbyists and watchdogs -- plus any serfs who can
> squeeze into his palatial chambers -- are cordially beckoned to > attend the
> changing of the agency guard.
>
> Come hither by limo, motorcade, taxi or coach. When: Next Tuesday, the
> first of two sessions. Where: 253 Russell Senate Office Building. > RSVP:
> Reserve a line stander if you haveth the means. Dress Code: Courtly > attire.
> BYOB: Bring your own broadband.
>
> Democratic Royal Guests of Honor: Julius Genachowski, anointed by > friend
> and colleague President Obama as Prince of the Commission, and Mignon
> Clyburn, scion of House Majority Whip Clyburn. GOP Royal Guests of > Honor:
> Texas native Meredith Baker, backed by a Lone Star State luminary, >

> CongressDaily AM for Thursday, June 11, 2009
>
> --------------------
> CONTENTS
>
> HEALTH: GRASSLEY: CO-OP IDEA HAS POSSIBILITIES
> By Anna Edney
>
>
> An attempt to provide a viable alternative to a public insurance plan
> gained a powerful ally Wednesday, potentially giving the proposal that
> resembles a co-op system some real legs if certain kinks can be > worked out.
>
> Senate Finance ranking member Charles Grassley Wednesday became the > latest
> Republican to give credence to the co-op alternative proposed this > week by
> Senate Budget Chairman Kent Conrad as an attempt to bridge the divide
> between Democrats in favor of a public plan and Republicans who will > not
> support any government involvement in coverage as part of a healthcare
> overhaul.
>
> "If it can be presented as an entirely ... private-sector operation > and
> incentive and like co-ops that we know generally in the Midwest, I > think
> it's got some possibilities except for one thing that some people are
> suggesting: that it's got to be government-backed from the standpoint
> presumably like, if it got in trouble. That's got to be out of there,"
> Grassley said Wednesday evening.
>
> When asked if the idea could turn out to be the compromise on a public
> plan that both parties have searched for, Grassley said, "It's got
> possibilities."
>
> "But it's too new, and there were a lot of questions raised about > it, not
> outright objections in our caucus, but a lot of questions," he added.
>
> Senate Budget ranking member Judd Gregg and Senate Health, Education,
> Labor and Pensions ranking member Michael Enzi also have expressed > interest
> in the co-op alternative.
>
> Senate Finance Chairman Max Baucus brought up the proposal Wednesday > to
> President Obama in a White House meeting with key senators, and Sen.
> Charles Schumer, D-N.Y., is working with Conrad to see if they can > work the
> proposal so liberal Democrats are satisfied that the co-ops can hold
> insurance companies accountable like a public plan would.
>
> As the Senate Finance and HELP committees near markups beginning next
> week, Obama will take his recent push to be more involved in shaping > the
> overhaul to Chicago on Monday, where he will address the American > Medical
> Association's annual conference, White House Press Secretary Robert > Gibbs
> said Wednesday. The appearance proves just how important physician > support
> for the bill will be.
>
> The Senate Finance Committee is set to meet behind closed doors this
> morning to talk about specific proposals on a healthcare overhaul.
> Republicans met Wednesday evening to discuss their strategy.
>
> "Let them know what we're against and let them know what we're for,"
> Senate Republican Policy Committee Chairman John Ensign of Nevada > said.
>
> While it's well known that Republicans are against a public plan and > an
> employer mandate, Ensign said some of the issues they plan to push > for are
> the establishment of small-business health plans, delinking > employment and
> healthcare coverage and greater transparency in coverage.
>
> Republicans on the House side appear to be coalescing around draft
> legislation spearheaded by House Ways and Means ranking member Dave > Camp.
> The GOP working group on health care, led by Rep. Roy Blunt of > Missouri, is
> expected to endorse Camp's effort as early as today, a Republican aide
> said.
>
> The contents of the Camp measure are mostly unclear, but the basic > themes
> are aimed at lowering costs, improving the quality of care and > increasing
> access to insurance without instituting any mandates to purchase > coverage.
>
>
> http://www.nationaljournal.com/congressdai...090611_3246.php
>
> -----
> IMMIGRATION: SHARP DIVIDE OVER VISAS, TEMP WORKERS
> By Chris Strohm and Dan Friedman
>
>
> Business and labor groups have launched aggressive lobbying efforts in
> Congress to promote widely divergent views on how to overhaul the > nation's
> immigration laws, raising fresh doubts that lawmakers can come to an
> agreement this year on immigration reform legislation.
>
> The activity comes only days before President Obama hosts a highly
> anticipated summit with congressional leaders on Wednesday to > discuss the
> prospects for immigration reform legislation.
>
> Obama has vowed to make comprehensive reform legislation a priority > for
> 2009, and some key lawmakers, including Senate Majority Leader Reid, > have
> claimed a bill can be passed this year.
>
> But powerhouse groups such as the AFL-CIO and the U.S. Chamber of > Commerce
> are at odds over a proposal to create an independent commission that > would
> establish limits for work visas and determine the flow of temporary > workers
> into the United States.
>
> The groups are making their respective cases in behind-the-scenes > meetings
> with key lawmakers and aides who are expected to play a central role > in
> drafting a comprehensive immigration bill.
>
> Groups seeking changes in immigration laws agreed to support the > idea of
> creating an independent commission as a way to bring the AFL-CIO on > board
> with their cause. The labor group did not support a sweeping > immigration
> reform bill that Congress took up in 2007, but ultimately failed to > pass.
>
> But the move has alienated the business community -- a key > constituency
> that helped to build bipartisan support for the 2007 bill.
>
> The primary sticking point is that labor groups do not support the
> creation of a temporary guest-worker program.
>
> The U.S. Chamber and other business groups fear the commission will be
> dominated by labor interests and, therefore, will not allow a guest-> worker
> program to be created. They fear that the commission will try to kill
> existing work visa programs, such as those for specialty and seasonal
> workers.
>
> "We are worried that if an independent commission is created it will
> prevent the creation of a future flow program for essential workers > and try
> to kill programs like H-1B and H-2B," said Angelo Amador, the > Chamber's
> director of immigration policy.
>
> Amador said he does not believe the chances of passing an > immigration bill
> this year are good.
>
> Key Senate Republicans, including Sen. John McCain, R-Ariz., said they
> will oppose any immigration reform effort if a guest-worker program > is left
> out.
>
> "I cannot support any proposal that does not contain comprehensive
> immigration reform [and] a temporary worker program part of it," said
> McCain, who was instrumental in crafting the 2007 bill. "The labor > [groups
> feel] they have won the election and they [feel] they have great > control
> over" the process, he added.
>
> McCain has not been invited to the White House to discuss > immigration, his
> spokeswoman said.
>
> Business groups plan to discuss the issue in a meeting Friday with key
> aides to Senate Judiciary Immigration Subcommittee Chairman Charles
> Schumer, D-N.Y.
>
> Schumer is holding separate hearings on key pieces of a > comprehensive bill
> and plans to complete draft bill language by this fall, an aide said.
>
> Meanwhile, the AFL-CIO is making its rounds in Congress to drum up > support
> for the commission.
>
> "We've been having meetings with members of relative committees and
> leadership to discuss what we support," said Sonia Ramirez, the labor
> group's legislative representative.
>
> She disputed that the AFL-CIO wants to kill existing work-visa > programs.
>
> "We would support immediate reform of existing programs and then we > would
> empower the commission to come up with methodology and criteria to > inform
> how we should be inviting workers in the future and how many," she > said.
>
> When asked how lawmakers have reacted so far to the commission idea, > she
> said: "It's a new concept, so I think there are a lot of questions > on how
> to achieve the goals that we have in mind."
>
> She added: "No one has expressed outright opposition to the idea."
>
> Several key Democrats are still evaluating the proposal.
>
> House Judiciary Immigration Subcommittee Chairwoman Zoe Lofgren, D-> Calif.,
> "hasn't ruled out a commission, but the problem is in the details," > her
> spokesman said. "She's taking meetings with anyone who wants to meet > with
> her."
>
> Members of the Congressional Hispanic Caucus, whose support will be
> essential to an immigration bill, gave virtually identical answers > when
> asked for comment.
>
> The caucus chairwoman, Rep. Nydia Velázquez, D-N.Y., and Rep. Luis
> Gutierrez, D-Ill., said they "look forward" to hearing from various > groups,
> "including the labor unions who have voiced their active support for
> achieving comprehensive immigration reform this year."
>
>
> http://www.nationaljournal.com/congressdai...090611_9233.php
>
> -----
> FINANCE: HOUSE GOP RALLIES AROUND MANTRA: NO MORE BAILOUTS
> By Bill Swindell
>
>
> House Republicans have one major mantra as they gear up to tackle a > revamp
> of the nation's financial regulatory structure: no more bailouts.
>
> They officially spell out their plan this afternoon that will adhere > to
> their party's philosophy of limited regulation, a greater > privatization
> push and consolidating federal regulators that overlap. But the > underlying
> theme is that the federal government has gone too far in bailing out
> private industry by placing a greater debt burden on government, > dictating
> industrial policy that would be better left to the markets and > dangling an
> easy escape hatch to any politically connected firm.
>
> They also believe their argument is politically viable with a belief > that
> the public has bailout fatigue and a growing concern over the > federal debt
> -- an issue that even the Obama administration has conceded.
>
> "Ours works to end the bailouts. Theirs works to perpetuate them," > said
> Rep. Scott Garrett, R-N.J., the ranking member on the Financial > Services
> Capital Markets Subcommittee.
>
> A flashpoint is on the question on the need for a federal agency to be
> able to take control and unwind assets of troubled nonbank firms like
> American International Group, which has received more than $180 > billion to
> keep it afloat so that its demise would not threaten the economy.
>
> Treasury Secretary Geithner and House Democrats are considering > giving the
> FDIC the authority to unwind such nonbanks that are deemed > systemically
> important, meaning their failures would cause major disruption in the
> markets.
>
> But the House Republican plan would reject that thinking and not > include
> any such resolution authority, allowing such companies to only take > the
> bankruptcy option as was done for Lehman Brothers. They propose a new
> chapter in the bankruptcy code to allow federal regulators to provide
> technical assistance and expertise to a filing and give judges the > power to
> stay the claims of creditors and counterparties to prevent a run on an
> at-risk firm, which happened in Lehman's case.
>
> "We're going to draw a proverbial line in the sand and say, 'Going
> forward, the federal government will not be interfering or injecting > itself
> in bailing [out] companies like it has done in the past," Garrett > said.
>
> Continuing on the theme, the plan calls to place Fannie Mae and > Freddie
> Mac into receivership if they are not financially viable. If they > are, the
> two mortgage-financing giants would be privatized as the housing > market
> starts to rebound. Democrats are opposed to privatization and have not
> discussed the fate of the two government-sponsored enterprises, > which are
> under conservatorship by the federal government, as part of the > regulatory
> overhaul.
>
> The provisions follow along increasing GOP pressure on the Obama
> administration to wind down the $700 billion Troubled Asset Relief > Program,
> believing that the White House is keeping the program alive more to > bolster
> key industries rather than for its primary purpose -- to expand > liquidity
> during the credit crunch.
>
> Geithner announced Tuesday that 10 big banks would be allowed to > repay up
> to $68 billion into the program, given that regulators have found them
> better capitalized. The announcement came a day after Rep. Jeb > Hensarling,
> R-Texas, unveiled his bill to prevent repaid TARP funds from being > recycled
> and would shut down the program by the end of the year.
>
> "I believe the taxpayer wants to have his money back," said > Hensarling,
> the ranking member of the Financial Services Financial Institutions
> Subcommittee and a member of the TARP oversight board. "The economy > is in
> serious condition, but we have gone past the emergency point."
>
> In other areas, the GOP plan would rein back the power of the Federal
> Reserve, which has lent out more than $1 trillion to provide > liquidity to
> markets, much of that done through its emergency powers. It calls > for a
> board, led by Treasury, to monitor risks that could imperil the > safety and
> soundness of the financial system. Instead, Democrats and the
> administration appear to be leaning toward a council that would be > chaired
> by the Fed.
>
> The Republican proposal also would take away the Fed's and FDIC
> supervisory role over banks into a new agency that would combine the > Office
> of Comptroller of the Currency and Office of Thrift Supervision. The > OTS is
> likely to be consolidated into OCC under the Democratic plan, > according to
> sources.
>
> Furthermore, the plan would narrow the Fed's emergency lending > authority
> in "unusual and exigent" cases. It would require that Treasury sign > off on
> all emergency actions under such authority and permit Congress to > block any
> action with a disapproval resolution.
>
> The plan also would lessen the reliance of the SEC's designation of
> credit-rating agencies, which, if meeting certain qualifications, > could be
> deemed a Nationally Recognized Statistical Rating Organization. The > GOP
> plan would change it to a nationally "registered" organization and > remove
> all references to ratings throughout federal law.
>
>
> http://www.nationaljournal.com/congressdai...090611_4949.php
>
> -----
> ENVIRONMENT: HOUSE DEMOCRATS NEAR IMPASSE AS CLIMATE TALKS INTENSIFY
> By Darren Goode
>
>
> House Democratic leaders might be nearing a breaking point in > negotiations
> with recalcitrant committee chairmen on a climate bill, as discussions
> continue to widen beyond key panels.
>
> Staff discussions between Agriculture Chairman Collin Peterson and > Energy
> and Commerce Chairman Henry Waxman have hit an impasse and the two > have
> agreed to meet in person to see if something could be worked out. "It
> appears that they're at a loggerhead," Peterson said Wednesday.
>
> He said aides came to an impasse on one issue Wednesday morning "but
> there's a bunch of other ones we haven't even talked about yet."
>
> Waxman confirmed he plans to meet with Peterson this week. "There > are a
> lot of things on the table," he said. "That's why it's important to > have a
> meeting of the minds." Waxman said he still expects the bill to be > debated
> by the House before the Independence Day recess.
>
> Peterson has said his concerns are shared by 45 or more fellow rural > House
> Democrats.
>
> "Well, listen, I don't have 45 votes. I'm just estimating what I > think the
> number of votes are who have a problem with this," he said. "It's > probably
> grown. The more people look at this, the more problems they've got. > I mean,
> my list has grown since I've been looking at it."
>
> House Speaker Pelosi has given Peterson and other committee chairmen > until
> June 19 to mark up their portions of the bill or risk losing their > partial
> jurisdiction. "It's very doubtful that we can get anything done by > then,"
> Peterson said.
>
> Peterson and Ways and Means Chairman Charles Rangel have suggested > their
> panels will skip formal markups. "We are doing every day three > things --
> health care, health care, health care," Rangel said Wednesday.
>
> On Wednesday, Ways and Means Republicans sent Rangel a petition they
> signed requesting that the committee assert its jurisdiction on the > bill.
> Six of the panel's 26 Democrats would also need to sign it to force a
> markup.
>
> Waxman said the panels can still exert their jurisdiction through
> amendments on the floor.
>
> One of Peterson's main concerns is he wants the Agriculture > Department --
> instead of EPA - to have control over agriculture offsets that can > be used
> to meet the bill's cap-and-trade emission reduction requirements.
>
> Rep. Tim Walz, D-Minn., said this was the impasse Peterson and Waxman
> aides faced Wednesday morning. "That's a line in the sand I think > for many
> ag-state folks and neither chairman will give on that," Walz said.
>
> Agriculture Democrats met Wednesday afternoon to "try and see what > things
> might be possible and might not [and] it didn't seem real optimistic"
> regarding finding a compromise with Waxman, Walz said. "There > doesn't seem
> to be any momentum" and Democrats are questioning whether it is worth
> taking a tough vote when they do not believe the Senate will act, he > said.
>
> Peterson met privately without staff this week with Agriculture > Secretary
> Vilsack, who will testify at a hearing on Waxman's bill in Peterson's
> committee today. Peterson said he and Vilsack "agree on a lot of > things"
> but does not know what position Vilsack can take as a member of the
> administration.
>
> The reality Waxman faces -- a weary Peterson and a distracted Rangel > --
> might place more emphasis on talks he is having with a broader mix of
> Democrats on and off those two panels.
>
> Energy and Commerce Democratic leaders are meeting today with the New
> Democrat Coalition. Rep. Ron Klein, D-Fla., who co-chairs the > coalition's
> energy task force, said there are regional issues to be addressed,
> including the need to add nuclear energy to a renewable electricity
> production mandate. "There are changes that are necessary," Klein > said.
>
> But the backing of the bill from the U.S. Climate Action Partnership > -- a
> broad coalition of businesses and environmentalists -- makes it > easier for
> Democrats in swing districts to sell the bill in the face of heavy
> opposition from Republicans, Klein said. "That fact can demonstrate > that
> this probably is somewhere on the right track," Klein said.
>
> Rep. Mike Doyle, D-Pa., joined Pelosi Wednesday in talking to freshmen
> Democrats about how Doyle helped shape the bill, including how > lawmakers
> with industries like coal, steel and other manufacturers in their > districts
> can follow his lead in touting the bill.
>
> The Senate is waiting for the House to make deals and make things > easier
> over there to get a climate plan through, though the Finance > Committee has
> set a hearing for Tuesday.
>
>
> http://www.nationaljournal.com/congressdai...090611_5788.php
>
> -----
> APPROPRIATIONS: NEGOTIATORS SIGN OFF ON WAR SUPPLEMENTAL COMPROMISE
> By Humberto Sanchez with Megan Scully contributing
>
>
> After more than two weeks of behind-the-scenes consultation, House and
> Senate negotiators reached a compromise on a FY09 war supplemental > and plan
> to officially meet this afternoon to sign off on the package.
>
> The House will formally name its conferees before the meeting, > according
> to House Majority Leader Hoyer. The Senate, after approving its > version of
> the bill in May, named the entire Appropriations Committee to the
> conference committee.
>
> House Democratic leaders expect the full House to take up the > conference
> report next week -- possibly as early as Tuesday, according to a > senior
> Democratic aide. The Senate would take the bill up after the House > and, if
> approved, would send it to President Obama for his signature.
>
> "We will probably have a bill that we will put forward next week along
> with the Senate, and my understanding ... is that quite a bit of > progress
> was made," House Democratic Caucus Vice Chairman Xavier Becerra of
> California said Tuesday upon leaving a meeting with House Democratic
> leaders.
>
> Rep. George Miller, D-Calif., Democratic Steering Committee co-> chairman,
> said he was confident Democrats can get the 218 votes needed to pass > the
> supplemental.
>
> The compromise was struck after Senate Appropriations Chairman Daniel
> Inouye said Wednesday he would support dropping a provision that would
> prevent release of detainee mistreatment photos. Inouye said he still
> supports the substance of the amendment but is willing to drop it to
> complete work on the supplemental.
>
> Other senators said Wednesday they too would support the > supplemental even
> if it does not include the amendment.
>
> "What I hear is that the Pentagon could well run out of money for > [the war
> in] Afghanistan and I am not willing to do that," said Senate
> Interior-Environment Appropriations Subcommittee Chairwoman Dianne
> Feinstein, D-Calif., who supports blocking the release of the photos.
>
> The provision -- offered as an amendment by Sens. Joseph Lieberman,
> D-Conn., and Lindsey Graham, R-S.C., to the Senate version -- had > been an
> issue for House Democratic leaders, who need the support of at least > 18 of
> 51 anti-war Democrats to pass the supplemental. Democratic leaders > need
> those votes because Republicans have said they would oppose the bill
> because it includes $5 billion to increase International Monetary Fund
> lending activity - something the GOP thinks is extraneous to the
> supplemental.
>
> But anti-war Democrats, including Financial Services Chairman Barney
> Frank, have said they would not support the bill if it includes the
> Lieberman amendment, which they believe is too broad and would weaken
> government transparency law.
>
> Rep. Louise Slaughter, D-N.Y., a vocal opponent of the photo > provision,
> said Wednesday that she expects the provision has been removed from > the
> final version.
>
> House Defense Appropriations Subcommittee Chairman John Murtha, D-Pa.,
> said "It will be a tough vote. I think we'll pass it, but it'll be > very
> close."
>
> The bill is expected to include language stipulating that through > the end
> of the fiscal year, accused terrorists detained at Guantanamo Bay, > Cuba,
> may be brought to the United States for trial, but not for permanent
> detention. Both the House- and Senate-passed bills had stricter
> restrictions on bringing detainees to the United States, but the White
> House sought a more relaxed provision.
>
> Murtha said that the White House is satisfied with the language.
>
> Murtha said that the bill includes about $1 billion for the first > year of
> a "cash for clunkers" plan, which would provide a voucher to trade > in a
> less fuel-efficient vehicle for a more efficient one.
>
> The bill will also include about $7.7 billion for H1N1 flu fighting,
> including $5.8 billion in contingency funds, whereby Obama must notify
> Congress that the funds will be tapped.
>
>
> http://www.nationaljournal.com/congressdai...090611_4035.php
>
> -----
> HOUSE RACES: MIDTERM STRATEGY, PARTY CONCERNS STARTING TO SHAKE OUT
> By Erin McPike
>
>
> The Democratic Congressional Campaign Committee and the National
> Republican Congressional Committee agree on something: History is on > the
> GOP's side when taking stock of how next year's midterm elections > might
> shape up.
>
> But recent history -- including President Obama's enviable approval
> ratings and the GOP's strong showing in the first midterm during the > Bush
> administration -- has made the longer historical view something of an
> afterthought as both sides plot strategy for the 2010 cycle.
>
> Jon Vogel, executive director of the DCCC, said there is no way > Democrats
> can put 50 to 60 GOP seats in play like they did in the last two > cycles.
> But in a recent interview, he mentioned 35 potential pickup > opportunities
> based on the performances of Obama and Massachusetts Sen. John Kerry > in the
> last two presidential elections.
>
> Still, Vogel gave a nod to the expectation that the party in power
> generally loses ground in the president's first midterm election. > "We could
> do everything right and still lose seats," he said.
>
> Republicans are a bit wary of raising expectations too high, but the > NRCC
> boasts what it calls an "impressive lineup" of recruits. And in > terms of
> recruiting, fundraising and staffing, "We're in better shape now > than we
> were at this time in 2007," said Ken Spain, the NRCC communications
> director.
>
> Both parties say Obama will help them recruit strong House > candidates for
> next year's races.
>
> Democrats are urging would-be candidates to become a part of history > and
> work with Obama. "We are closely linked to the success of the > president and
> approval of the administration, and we're working to promote their > agenda,"
> Vogel said.
>
> Republicans, on the other hand, see recruiting potential in the agenda
> pushed by Obama and the Democrats who control Congress.
>
> "Now, if you're a small-business owner, what the president and the
> Congress are doing stands greatly at odds with what you believe, and > that's
> certainly a motivator for Republican candidates," Spain said.
>
> He added that potential GOP candidates seem more willing to engage > this
> time around. "There was a sense of timidity among potential Republican
> recruits last cycle who were somewhat concerned about the [political]
> environment," Spain said.
>
> Indeed, Republican Greg Ball, who announced his candidacy a month > ago to
> run for two-term Democratic Rep. John Hall's New York seat, recently > said
> he was approached to run in 2008 but wanted to wait until after GOP
> President George W. Bush left office to run.
>
> Both sides see an upside in their pitches to independent voters.
>
> "Independents have significantly moved our way the last two cycles," > the
> DCCC's Vogel said. He added that the party has had some success > recruiting
> conservative Democrats "who are good fits for their districts," while
> contending that Republicans won't be as successful attracting moderate
> candidates in Democratic-leaning districts because, "It's harder for
> Republicans to show moderate candidates there's a place for them in > their
> conference."
>
> But success among independents in earlier cycles doesn't necessarily > mean
> Democrats will enjoy the same benefit next year, Spain said. He noted
> growing GOP support in recent polls among independents on such > issues as
> spending and national security and a narrowing of the generic > congressional
> ballot results, in which poll respondents are asked whether, > generally,
> they would rather be represented by a Republican or Democrat in > Congress.
>
> Two of the biggest challenges facing the NRCC, according to Brian > Walsh,
> the committee's political director, are not knowing what the political
> landscape will look like a year from now and not knowing what to > expect in
> terms of fundraising.
>
> Republicans expect Democrats will outraise them during the cycle, but
> Democrats are keeping a wary eye on the $24 million the Republican > National
> Committee had in the bank at the end of the last quarter. While the > RNC is
> not a direct player in House elections, the committee has shown a
> willingness to transfer money to the House and Senate committees in > past
> cycles, and Vogel is watching for the same thing this time.
>
>
> http://www.nationaljournal.com/congressdai...090611_1387.php
>
> -----
> TRADE: CRITICS DETAIL OBJECTIONS TO PAKISTAN/AFGHAN PREFERENCE PLAN
> By Peter Cohn
>
>
> The House voted Wednesday to approve the rule for floor debate on a > bill
> authorizing economic aid to Pakistan, incorporating into the text a
> proposal creating a new duty-free benefits program for imports from > that
> country and Afghanistan.
>
> The rule passed on a 238-183 vote, a mostly party-line affair, > although it
> drew 11 Democratic defections, mainly from lawmakers such as Rep. > Michael
> Michaud of Maine who oppose expanded trade without greater worker
> protections.
>
> A final vote is expected today on the underlying Pakistan aid measure.
> Differences will have to be worked out with a Senate version from > Foreign
> Relations Chairman John Kerry and ranking member Richard Lugar, but > the
> Obama administration is pressing hard for swift action.
>
> In a letter to Speaker Pelosi Wednesday, President Obama's special
> representative for the region Richard Holbrooke urged swift action > on the
> trade preferences bill. "Military power alone cannot bring peace to
> Afghanistan and Pakistan," Holbrooke wrote, calling the measure "an
> important component of the president's comprehensive national security
> strategy" in the region.
>
> Imports from Afghanistan are paltry, but critics say the tough labor
> standards written into the bill will do little good in a country > with few
> labor protections to speak of and where international inspections > will be
> fraught with peril.
>
> As for Pakistan, a major cotton apparel exporter, its major products > will
> be barred from the program and manufacturing could only occur in > certain
> areas near the Afghan border; parts of Kashmir harmed by an Oct. 8, > 2005
> earthquake; and tribal regions not subject to central government > control.
>
> Labor protections in those areas are also considered difficult to
> administer, and domestic textile manufacturers and workers argue > production
> could easily occur closer to commercial centers in Pakistan or even > China
> under the bill.
>
> Backers paint the bill as a way to stimulate economic development in > the
> region and steer the local population away from violent extremism. > Rep.
> Chris Van Hollen, D-Md., the bill's chief sponsor, said he included > it in
> the Pakistan aid bill rather than try to move it through the Ways > and Means
> Committee process because the administration regards it as crucial > to its
> diplomatic efforts in the region.
>
> The process did not sit well with House Ways and Means Trade > Subcommittee
> ranking member Kevin Brady, R-Texas, who complained that the panel of
> jurisdiction was being shut out of a chance to debate and offer > amendments.
>
> Brady said he supported the bill's objectives, but that the limited > scope
> of products allowed, as well as the labor provisions, would > discourage the
> necessary investment. "I'd like to see it be a more meaningful > bill," Brady
> said, adding that short-circuiting the committee process undermines > the
> traditional bipartisan support for trade preferences programs. He > said he
> supported a version introduced by Sen. Maria Cantwell, D-Wash., that > has
> less stringent labor provisions than the House bill.
>
> Importers and retailers with production facilities in Pakistan also
> expressed concern with the Van Hollen bill, calling it a "hollow > symbolic
> gesture" in a letter to lawmakers Wednesday. The American Apparel and
> Footwear Association, National Retail Federation, Retail Industry > Leaders
> Association and United States Association of Importers of Textiles and
> Apparel signed the letter, urging members to make several changes > before
> enactment.
>
> Those include watering down the labor provisions, including a repeat
> inspection requirement, and expanding the scope of products eligible > for
> duty-free treatment, particularly cotton knit shirts and cotton > trousers.
> Importers also want to see the eligible geographical regions of > Pakistan
> expanded beyond "extremely remote areas that are experiencing intense
> conflict and are not yet mature for industrial growth," the letter > states.
>
> Also, the groups oppose a provision offsetting the bill's $105 million
> cost through increasing Customs fees, arguing it will raise the > price of
> importing from one area of Pakistan to finance imports from other > regions.
> They wrote that would be "a terrible precedent in a trade preferences
> program."
>
>
> http://www.nationaljournal.com/congressdai...090611_7852.php
>
> -----
> ENERGY: NELSON THREATENS TO FILIBUSTER OVER DRILLING
> By Darren Goode
>
>
> As the Senate Energy and Natural Resources Committee looks to possibly
> finish marking up an energy and environment bill today, Sen. Bill > Nelson,
> D-Fla., said he has the votes to filibuster the bill if it keeps > language
> the panel adopted Tuesday that would open up waters in the eastern > Gulf of
> Mexico to oil and gas drilling.
>
> "Because I don't think there are 60 votes to cut the heart and the > lungs
> out of the United States military's testing and training range in > the Gulf
> of Mexico," Nelson said.
>
> The panel, by a 13-10 vote, adopted an amendment from Sen. Byron > Dorgan,
> D-N.D., that allows drilling as close as 45 miles off of Florida's > west
> coast and in the Destin Dome, an area 25 miles off of Pensacola's > shoreline
> that is estimated to contain more than 3 trillion cubic feet of > natural
> gas.
>
> Nelson said there is no compromising on this since oil and gas > companies
> have not fully taken advantage of a deal reached in a 2006 Senate > bill that
> opened up 8.3 million acres in the Gulf of Mexico to drilling in > return for
> preserving certain protection around Florida, including where > Dorgan's plan
> would open up. "That was the compromise," Nelson said. "They need to > honor
> that agreement."
>
> It is unclear how the drilling language will affect support for the > bill,
> which includes a renewable electricity production mandate unpopular > with
> many Republicans who would support the expanded offshore drilling. > "With
> some senators it helps, with other senators it clearly hurts," > Energy and
> Natural Resources Jeff Bingaman said. "It's clear that it's a > legitimate
> issue to deal with in an energy bill. The committee worked its will > on the
> subject."
>
> In a release, Dorgan said his plan "represents a commonsense, balanced
> approach that will allow us to develop our oil resources responsibly > and
> reduce our dependence on foreign oil and natural gas."
>
>
> http://www.nationaljournal.com/congressdai...090611_9000.php
>
> -----
> GOVERNMENT OPS: FIRST OMBUDSMAN FOR FOIA NAMED AT NATIONAL ARCHIVES
>
> The National Archives has named the first Freedom of Information Act
> ombudsman, with ability to mediate disputes over requests for > information.
>
> Miriam Nisbet heads the information society division of the United > Nations
> Educational Scientific and Cultural Organization in Paris. She will > direct
> the Archives' new Office of Government Information Services, acting
> Archivist Adrienne Thomas announced Wednesday.
>
> Thomas said Nisbet "has dedicated her entire professional life to > working
> for open access to government records."
>
> Nisbet is expected to open the new Archives office in September.
>
>
> http://www.nationaljournal.com/congressdai...090611_8798.php
>
> -----
> HOUSE LEADERSHIP: RACE MIGHT COME DOWN TO KLINE, MCMORRIS RODGERS
> By Kasie Hunt
>
>
> Republicans on and off Capitol Hill are coalescing behind Minnesota > Rep.
> John Kline to take the top GOP spot on the House Education and Labor
> Committee.
>
> But Rep. Cathy McMorris Rodgers, R-Wash., who spoke with Republican
> Steering Committee members on the House floor Wednesday and asked for
> support, might dim Kline's chances. "If [Minority Leader Boehner's] > already
> determined that she's the one for whatever reason, then she stands a > really
> good chance," a GOP aide said.
>
> McMorris Rodgers is vice chairwoman of the House Republican > Conference,
> and her selection could create a cascade of openings in political
> leadership.
>
> But a top aide to a Steering Committee member said, "It looks like Mr.
> Kline." He pointed to Kline's relationships with the outgoing ranking
> member, Rep. Howard (Buck) McKeon, R-Calif., and Boehner, a former
> Education and Labor chairman.
>
> The slot opened when McKeon was selected to be ranking member on the > Armed
> Services Committee. Whoever succeeds McKeon will have to fend off an
> ambitious Democratic agenda on labor issues, help craft healthcare
> legislation and eventually tackle a reauthorization of the No Child > Left
> Behind law.
>
> The top aide said the Steering Committee would look for someone who > could
> deal effectively with Education and Labor Chairman George Miller, a > close
> ally of Speaker Pelosi, and eventually become chairman. "We want to > make
> sure that the person we have there can be an appropriate foil without
> making Republicans seem like the party of 'no,'" the aide said. "Mr. > Kline
> fits the profile as someone who's viewed as a strong conservative, > but he's
> not exactly a magnet for the left."
>
> Republican interests off Capitol Hill like Kline for the job, too. > "It's
> clear that Kline would be a front-runner," a business lobbyist said.
>
> Business groups are enthusiastic about Kline because he is a longtime
> opponent of the Employee Free Choice Act, a labor-backed proposal that
> would ease union organizing.
>
> "He's been one of the most outspoken and visible members of the > committee
> on EFCA, and that's going to be one of the biggest items of focus on > that
> committee," the business lobbyist said.
>
> Kline has backed a Republican bill to require secret ballot > elections in
> all union organizing elections. He is the top Republican on the > committee's
> Health, Employment, Labor, and Pensions Subcommittee.
>
> "I've been talking about card check and taking away the secret > ballot in
> unionizing for three years," Kline said. "I think I'm in a very good
> position to step into this slot."
>
> Kline said he has discussed his interest with Republican leaders and > that
> Boehner was positive. "He is my friend. He was very thoughtful," he > said of
> the meeting.
>
> Kline would have to pass over more senior Republicans: Reps. Michael
> Castle of Delaware, Judy Biggert of Illinois and Joe Wilson of South
> Carolina have all announced they will seek the spot.
>
> Rep. Thomas Petri of Wisconsin, next in seniority after McKeon, has > not
> said whether he plans to seek the job. He was passed over for the
> chairmanship in 2001, when he lost to Boehner. Petri has also recently
> taken a strong stand in favor of President Obama's proposal to end the
> Federal Family Education Loan (FFEL) Program, a move that would hurt > loan
> companies like Sallie Mae and has drawn fire from congressional
> Republicans.
>
> Biggert opposes ending FFEL. A former PTA president, Biggert would > bring
> an education focus -- which may not play well in the early years of an
> administration with an ambitious list of labor-backed policy > priorities.
>
> Castle would likely get the nod if he were to commit to staying in the
> House, because it would help keep his vulnerable seat in Republican > hands,
> a GOP aide said, but party leaders might be wary of giving him the > ranking
> member job if he is considering a run for the Senate. Castle told > Biggert
> he could not commit to running for the House in 2010, a decision that
> helped lead her to step in. "He [Castle] has talked to me, but he > said that
> he would not be able to commit to whether he was going to run or not > for
> Senate," Biggert told CongressDaily.
>
> GOP aides said there were some concerns about Biggert and Castle > because
> they are known to be more moderate on some social issues.
>
> Biggert dismissed that criticism. "Moderates face that issue all the > time,
> but we do have a lot of moderates that are high up. I don't think that
> should be the test," she said. She said her ability to work with > Democrats
> on education would benefit the committee. She also emphasized her > strong
> opposition to the card check bill.
>
> Wilson said he has received positive feedback from leadership. "They > know
> I'm a team player," Wilson said. The committee "is very ideologically
> driven. I have worked on the conservative side all my life. I could > promote
> mainstream conservatism," he said.
>
> The Steering Committee is set to meet Wednesday to choose a successor.
>
>
> http://www.nationaljournal.com/congressdai...090611_4141.php
>
> -----
> ECONOMY: AUTO TASK FORCE OFFICIAL HOPEFUL FOR GM, CHRYSLER FUTURE
> By Andy Leonatti
>
>
> A member of President Obama's auto task force stressed to Senate > Banking
> Committee members Wednesday that sacrifices had been made by all > sectors
> affected by the bankruptcies of Chrysler LLC and General Motors > Corp., but
> the companies would emerge in better shape without requiring > additional
> federal dollars.
>
> Ron Bloom said although he was by no means "highly confident," he sees
> "reasonable scenarios" in which a substantial portion of the $85 > billion in
> federal funds that has been poured into the two companies can be > recouped.
>
> "If the government intends to be a silent partner of sorts, how do > they
> intend to protect the interests of the American taxpayer as a > shareholder?"
> asked Banking ranking member Richard Shelby.
>
> "Could this be an economic Vietnam?" Shelby added, asking if it > would be
> "easy to get in, but hard to get out?"
>
> Bloom defended the decision by the Bush and Obama administrations to > bail
> out the companies, and said he "strongly" believed GM will not > require any
> more money beyond what has been promised by the administration.
>
> He could not give a timeline for when the government would end its > role in
> GM, adding the economy would play a large factor in determining that.
>
> Bloom deflected questions from members frustrated about local plant > and
> dealership closings, insisting the government was not involved in > deciding
> which locations would be closed.
>
> Sen. Robert Bennett, R-Utah, pointed out that after 789 Chrysler
> dealerships had their franchise agreements terminated Tuesday, there > were
> no Chrysler dealerships between Provo, Utah, and Las Vegas, a > distance of
> 380 miles.
>
> Bennett said he would be working with Commerce ranking member Kay > Bailey
> Hutchison and the National Automobile Dealers Association to see > what could
> be done, adding he was fearful the new Chrysler would come in and > install a
> dealer of its choice.
>
> Bloom also appeared to throw cold water on a bipartisan House bill > that
> would require GM and Chrysler to honor franchise laws and restore
> dealerships.
>
> "These decisions, while difficult, will help make Chrysler more
> competitive and help ensure the success of the company in the > future," he
> said.
>
> House Majority Leader Hoyer said "time is of the essence" for the
> dealership legislation, adding that he would attempt to talk with > the White
> House today and make the case to House Speaker Pelosi to move the > bill.
>
> Rep. Frank Kratovil, D-Md., who introduced the bill with Rep. Dan > Maffei,
> D-N.Y., said they were "looking at the ramifications" the bill would > have
> on Chrysler dealerships that have already closed, and Hoyer said > they would
> look into how the bill could conflict with bankruptcy laws.
>
>
> http://www.nationaljournal.com/congressdai...090611_6003.php
>
> -----
> JUDICIARY: EUROPEAN REPORT CRITICIZES U.S. STANCE ON ONLINE GAMBLING
> By Andrew Noyes
>
>
> As the debate over Internet gambling heats up on Capitol Hill, > European
> regulators weighed in with a Wednesday report characterizing the > 2006 U.S.
> law that bans online betting as inconsistent with World Trade > Organization
> rules and an obstacle to trade.
>
> The European Commission report concludes that WTO proceedings are
> justified and says the issue should get a fresh look by the Obama
> administration with the goal of reaching a negotiated solution.
>
> The 94-page paper could give traction to a pair of bills by House
> Financial Services Chairman Barney Frank.
>
> One measure would suspend for a year the anti-gambling rules that the
> Treasury Department and the Federal Reserve finalized shortly before > former
> President George W. Bush left office. They are slated to take effect > Dec.
> 1. Frank's other bill would create a licensing regime for online > gambling
> services, providing an exemption for states that would ban such bets.
>
> Last Congress, a divided House Financial Services Committee approved a
> bill offered by Frank that would have set up a rule-making process to
> determine the definition of "unlawful Internet gambling" under the > statute.
>
> Frank issued a statement Wednesday saying the report furthers his > argument
> for repealing the law and "shows the inconsistency of the Bush
> administration, which frequently argued we had to abide by the WTO > even
> when it cost American jobs, but ignored the WTO when it didn't fit the
> conservatives' ideological beliefs."
>
> Rep. Jim McDermott, D-Wash., whose companion bill would help capture
> revenues lost to offshore gambling, agreed.
>
> "Regulating online gaming is an important revenue-raising issue for > the
> federal government; now we find it is an equally important trade > issue,
> which is a new and compelling reason for Congress to pass Internet > gaming
> legislation," he said.
>
> Spokespersons for the Justice Department and U.S. Trade Representative
> said their agencies were reviewing the Commission's document and > declined
> to comment on its findings.
>
> "Internet gambling is a complex and delicate area, and we do not > want to
> dictate how the U.S. should regulate its market," EU Trade > Commissioner
> Catherine Ashton said in a statement accompanying the report.
>
> Remote Gambling Association Chief Executive Clive Hawkswood said he > hoped
> U.S.-EU talks will lead to "a satisfactory outcome without delay." > European
> gambling firms left the U.S. market in 2006 but are targeted by U.S.
> authorities based on their past activities, he said.
>
>
> http://www.nationaljournal.com/congressdai...090611_3121.php
>
> -----
> LABOR: NEAL HOPES TO MOVE 401(K) DISCLOSURE LEGISLATION SOON
> By Peter Cohn
>
>
> House Ways and Means Select Revenue Measures Subcommittee Chairman > Richard
> Neal, D-Mass., has introduced legislation that would require greater
> disclosure of fees in 401(k) and other employer-sponsored retirement
> accounts by companies and plan administrators, coupled with tax > penalties
> for failure to comply.
>
> The bill, introduced Tuesday, is an updated version of a bill from > last
> year that died in the face of opposition from the Bush > administration as
> well as the competing jurisdictional authority of the Education and > Labor
> Committee. The two panels were working toward an agreement last > year, but
> the clock ran out, and they were waiting for regulations from the > Labor
> Department that never materialized.
>
> In a statement, Neal said the stock market downturn has increased the
> urgency for moving a bill, as most retirement plan participants are > losing
> even more money because of hidden fees. He cited an AARP study that > found
> 83 percent of participants don't even know what those fees are.
>
> "Considering the number of people who have told me they do not dare to
> even open their 401(k) statement in this devalued market, that > percentage
> may have increased even more," Neal said. He added he plans to work > with
> Ways and Means Chairman Charles Rangel to move the bill "very soon."
>
> The disclosure requirements would apply to an array of employer-> provided
> retirement plans, including traditional 401(k) plans as well as > 403( and
> governmental 457( plans.
>
> The measure would require employers to provide workers with > information on
> all of a plan's investment options, such as whether funds are > actively or
> passively managed, as with an index fund. All fees associated with a > fund,
> such as operating and administrative expenses, must also be > disclosed at
> the time of enrollment. The same notifications must be sent out each
> quarter to employees.
>
> Failure to provide such notices would result in a tax of $100 per day,
> capped at the lesser of $500,000 or 10 percent of a plan's assets.
>
> Similar disclosure notices would be required of retirement plan > service
> providers, including what benefits they might derive by offering > certain
> investment options. Those notices to employers are due annually and > when
> any modifications to a contract are proposed. Failure to comply with > that
> requirement would mean a tax of $1,000 per day up to $1 million or 10
> percent of the plan's assets, whichever is less.
>
> The bill will have to be melded with an offering by House Education > and
> Labor Chairman George Miller, who introduced a bill in April similar > to
> Neal's but which would impose financial penalties through the Labor
> Department, not the tax code.
>
> It is different in one important respect: It would require 401(k)-> style
> plans to offer at least one low-cost index fund option, or the plan
> administrator would be liable for investment losses. The mutual fund
> industry opposes the index fund requirement, arguing the government > should
> not be in charge of dictating investment decisions.
>
>
> http://www.nationaljournal.com/congressdai...090611_5898.php
>
> -----
> TRANSPORTATION: IG CITES CONCERNS ABOUT DIFFERING AVIATION SAFETY
> STANDARDS
> By Cyra Master
>
>
> Transportation Department Inspector General Calvin Scovel Wednesday > told
> the Senate Commerce Aviation Subcommittee that despite FAA > regulations,
> regional air carriers do not always meet the same safety levels as > national
> carriers. "When an American gets aboard an aircraft in this country > he or
> she could reasonably think that the level of safety would be the > same no
> matter what aircraft or carrier it is, yet that's not entirely true,"
> Scovel said.
>
> Regional or commuter carriers make up 50 percent of the flights in the
> country and transport 20 percent of the passengers, according to Mark
> Rosenker, acting chairman of the National Transportation Safety > Board, and
> seven of the nine most recent airline crashes involved these flights.
>
> Regional carriers were the subject of scrutiny during the subcommittee
> hearing. Much of the material focused on the February crash of > Colgan Air
> Flight 3407 in Buffalo. Aviation Subcommittee Chairman Byron Dorgan,
> D-N.D., said that crash brought to light issues including fatigue, > pilot
> training, and salaries that could have contributed to the accident and
> should be addressed by the FAA.
>
> Dorgan, as well as Commerce ranking member Kay Bailey Hutchison and
> Aviation Subcommittee ranking member Jim DeMint, R-S.C., expressed > concern
> over the roadblocks that prevent the sharing of pilot training records
> between the FAA and commercial airlines. Dorgan asked that the FAA > take
> steps toward making it simpler for the two to share pilot training > records
> as soon as possible.
>
> FAA Administrator Randolph Babbitt said regional and national > carriers are
> "dramatically different environments" and the differences in flight > d