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National Journal's CongressDaily
Issue date: November 27, 2001 -=-=-=-=-=-=-=- OUTLOOK Senate Returns To More Recriminations Over Priorities The week-long Thanksgiving break appears to have had little salutary effect on relations between the two parties in the Senate, where Republicans and Democrats again locked horns today on tax and FY02 spending bills. Majority Leader Daschle told colleagues on the Senate floor he intends to drop the stalled economic stimulus bill and turn to controversial legislation to aid retired railroad workers and the farm bill. That provoked charges and counter-charges from Republicans and Democrats that the other party was stalling the stimulus bill. "We shouldn't be doing anything else until we get an agreement worked out on a stimulus bill," said Minority Leader Lott. Daschle said Republicans were "filibustering the stimulus bill as we speak," leaving him no choice but to bring up other measures. He invited Republicans to convene bipartisan negotiations on the bill - but insisted those include discussions on a $15 billion Democratic "homeland security" spending package. He expressed a willingness to convene two separate negotiations, but said the spending proposals had to be part of the talks. "We ought to be able to find some middle ground between zero and [$15 billion]," he said, "but the Republicans are refusing to even meet." Lott charged Democrats were pushing for new spending that President Bush has not requested because they do not really want to pass a stimulus bill. "Your interest is to shovel the stimulus bill off to the side," he said. Meanwhile, a proposal by Sen. Pete Domenici, R-N.M., to provide a temporary payroll tax holiday appears to be gaining currency among some Republicans. Daschle's plan to move to the bill to increase benefits to survivors of retired railroad workers did not win him any points with Republicans. "There will be strenuous opposition to the railroad retirement bill using procedural devices that are available to all members," vowed Minority Whip Nickles during the floor exchange. Nickles called the bill a "$15 billion giveaway," and also warned that the farm bill, which has also drawn objections from budget hawks, "is not going to pass in a day or two." Daschle tried to head off GOP plans to attach energy legislation to either the farm bill or the railroad retirement bill by committing to bring up energy legislation after Congress returns Jan. 22. But Lott criticized Daschle for planning to bring a Democratic energy package straight to the floor rather than going through committee, and for failing to commit to completing an energy bill. As for the FY02 Defense appropriations bill, which Lott also urged Daschle to put on the floor, Daschle said the Senate would take it up after the House acts, and once the Senate Appropriations Committee has a chance to mark it up. A Senate Appropriations spokesman said action is likely early next week. On Wednesday, the House plans to consider the $317.5 billion spending measure, which also carries the $20 billion terrorism supplemental. The House Rules Committee plans to meet on that bill at 5 p.m. today, and Democrats will press their case to offer amendments to increase the supplemental. Although GOP leaders have indicated their opposition, New York GOP Rep. John Sweeney plans to break with them and join Rep. Nita Lowey, D- N.Y., to push for an amendment to add $9 billion in recovery aid to the supplemental. - by Geoff Earle and Lisa Caruso -=-=-=-=-=-=-=- OUTLOOK Armey Sees Two More Weeks Needed To Finish Up House Majority Leader Armey said this afternoon that Congress needs at least two more weeks to complete the FY02 spending bills and economic stimulus legislation, while suggesting that lawmakers could go home without the latter. Armey said the economic stimulus debate has gotten caught up in philosophical differences, commenting, "If you want to attach a dateline to the [end of the] session, attach it to that." Armey, who has placed tax relief at the heart of a stimulus bill, said he does not want a bill that does not stimulate business investment. "If you can't get a real economic stimulus package that makes sense . then you're better off doing nothing," he said. Armey also suggested that Congress would have to approve a sixth continuing resolution when the current CR expires Dec. 6. "I'm personally planning on another," he said. "We're looking at this trade bill on the 6th.. We're still trying to get through the impasse with the Senate on stimulus." Armey said he remains committed to the Dec. 6 date to consider renewal of presidential trade negotiating authority, and said it is forcing undecided members to make up their minds. "The only thing was announce a date and make everyone get off the dime," Armey said, predicting, "The votes will be there." This week Armey said the House would consider the FY02 Defense appropriations bill Wednesday and terrorism reinsurance legislation Thursday or Friday, also mentioning conference reports on the FY02 Foreign Operations and District of Columbia spending bills as possibilities. Armey said jurisdictional disputes on the reinsurance bill would likely be sorted out in the Rules Committee, singling out liability language from the Judiciary Committee. Looking beyond this week, Armey said he might schedule election reform next week, and said he was he was hopeful an education conference committee report would be ready before the end of the session. - by Mark Wegner -=-=-=-=-=-=-=- ECONOMY White House Shows No Sign Of Budging Over Spending The White House today showed no sign of budging on its desire to hold the line on spending, despite continuing Democratic demands for more money to combat terrorism and aid areas affected by the Sept. 11 attacks. Referring to an earlier deal between congressional appropriators and the White House to hold FY02 spending to $686 billion and keep the supplemental at $40 billion, White House Press Secretary Ari Fleischer today declared, "A deal is a deal is a deal." Fleischer reiterated President Bush's threat to veto legislation that breaches the agreed-upon totals. And the White House will continue its campaign to pressure the Senate to pass a stimulus package. Bush will make the point during his weekly breakfast meeting Wednesday with House Speaker Hastert, Senate Majority Leader Daschle, Senate Minority Leader Lott and House Minority Leader Gephardt, Fleischer said. And the president will urge movement on stimulus legislation in a speech to be delivered later Wednesday. House Majority Leader Armey today continued to press the Senate to act on stimulus legislation. "There is in fact a recession and that obviously gives us some sense of urgency," Armey said, chiding Daschle for scheduling Senate votes on railroad retirement legislation and the farm bill instead of continuing to work on a stimulus package. Armey said public opinion over the Thanksgiving break could, in part, determine whether the Senate acts on a stimulus plan. "Have they communicated to the Senate in the past 10 days that this is an important thing in their lives?" Armey asked. House Ways and Means Chairman Thomas also continued to blast Daschle for failing to move a stimulus bill through the Senate, dismissing as "hogwash" the suggestion that no tax bill could garner 60 votes to overcome a budget point of order. Thomas also charged that Daschle deliberately helped create a partisan measure in the Senate Finance Committee. Thomas continued to refuse to negotiate any bicameral agreement so long as the $15 billion package of domestic security spending items remains on the table. Without those items, Thomas said the leaders of the Senate Finance and House Ways and Means committees could put together a compromise "over a weekend." He declined to offer specific views on the package put together by Senate moderates. However, he acknowledged that a final bill could contain items not approved by either House. Also, while he continued to vigorously defend full repeal of the corporate alternative minimum tax, he said he would look at other options "assuming there is a middle ground." Meanwhile, the National Federation of Independent Business Monday urged congressional leaders to pass a stimulus bill including expanded Section 179 expensing provisions, acceleration and permanent enactment of the tax cuts passed earlier this year, allowing small business owners to depreciate vehicles "within a reasonable time frame," and expanding the availability of tax refunds for net operating losses to five years from the current two-year limit. In a letter, NFIB said these provisions "would be the most beneficial for small business," and urged Congress to focus on "real benefits for small businesses, while avoiding placing costly mandates on employers that will slow economic development." - by Keith Koffler, Mark Wegner and Stephen Norton -=-=-=-=-=-=-=- HEALTH Brownback Fails To Get Floor Debate On Human Cloning The debate over human cloning found its way to the Senate floor today as Sen. Sam Brownback, R-Kan., followed through on his vow to try to bring up for debate a cloning-ban bill that passed the House in July and has been endorsed by President Bush. But Democratic leaders blocked the move by objecting to its consideration. Brownback and allies who oppose human cloning intended to produce a live birth, as well as the creation of embryos intended to be destroyed for research, said Sunday's announcement by a Massachusetts biotech firm that it has successfully cloned a six-cell embryo means the Senate should act immediately. "I've been telling this body for months that this issue was going to be here and now it's here," said Brownback. "We now have the first human clone." Majority Whip Reid objected to immediate consideration, noting that Majority Leader Daschle has promised a full debate in February or March on both the House-passed bill and a proposal by Sen. Arlen Specter, R-Pa., on the related issue of expanding federal funding for research on human embryonic stem cells. Brownback then proposed a fallback position for a six-month moratorium on human cloning research. "People are very uncomfortable with human cloning," he said, so much so that "we should hit the pause button at this point." But Reid rejected that proposal as well. While Reid acknowledged that Brownback feels strongly about the issue, he said there are those who feel just as strongly on the other side. "They believe therapeutic cloning is something that will lead very quickly to the abolishment of diabetes, Parkinson's and other diseases," Reid said. For those people, he added, a moratorium "for six months, for two months, or for two days" represents an unacceptable delay. Sen. Barbara Boxer, D-Calif., suggested Democrats could quickly reach agreement on legislation that would ban the implantation of a cloned embryo into a woman's uterus, a proposal Brownback rejected. And Specter said he would be happy to see an immediate debate and vote on the matter, although he prefers to wait to have a chance for scientists interested in research on cloning to make their case. Specter said at a news conference that his willingness to proceed does not necessarily signal that his side has the votes to defeat Brownback, but that "I'm just not disposed to duck the matter. I think there are too many delays in the Senate." - by Julie Rovner -=-=-=-=-=-=-=- FINANCE Consumer Activists Opposing 'Rent To Own' Legislation Consumer activists are up in arms over plans by the House Financial Services Financial Institutions and Consumer Credit Subcommittee to resume marking up Wednesday a controversial "rent to own" bill, action on which was postponed in September. In a letter today, activists urged lawmakers to oppose the markup vehicle, a proposal by Rep. Walter Jones, R-N.C., which they claim will roll back strong protections against "predatory" rent- to-own practices in a handful of states. "The Jones bill .pre- empts the strongest state laws - in Minnesota, New Jersey, Wisconsin and Vermont - that treat rent-to-own as a credit transaction" as opposed to a lease, which does not afford consumers the same level of protection from abuse, the activists said. Industry supporters of the measure said they simply want legal certainty that their transactions will be treated as leases, and claim that certainty will work to consumers' benefit. If all such transactions were treated as sales, "we would be put out of business," said one industry lobbyist, who noted that rental purchase agreements often are the only way low-income individuals can secure appliances and luxury items. The protest letter is signed by officials with the U.S. Public Interest Research Group, the Consumer Federation of America, Consumers Union and the National Consumer Law Center, among others, who added: "This wolf-in-sheep's clothing is not a 'pro- consumer' bill, as its industry proponents allege .[It] is cleverly designed for one purpose, and one purpose only: to eliminate existing stronger state law protections against industry abuses .[A]t a time when the American people want the Congress to focus on legislation to rebuild the nation's economy and security, we are frankly both surprised and disappointed that attempts are being made to move this unnecessary, extremely controversial, special interest legislation." The House measure, which has nearly equally bipartisan sponsorship, is expected to pass easily in committee, and on the House floor, as well. Its fate in the Senate is less certain, however. - by Pamela Barnett -=-=-=-=-=-=-=- JUDICIARY High Court Decides To Pass On Affirmative Action Case The Supreme Court abandoned its plan to rule on a major reverse discrimination case today, concluding the case involving a white-owned contractor from Colorado was not a good vehicle for deciding whether federal affirmative action rules amount to reverse discrimination, the Associated Press reported. The court's action came in a unanimous, unsigned ruling and is an anticlimactic end to what had been billed as an important case. Opponents of racial preferences had hoped the court would use the 11-year fight over government highway contracts to effectively declare federal affirmative action programs unconstitutional. The case, Adarand Constructors Inc. v. Mineta, had developed procedural problems that several justices suggested last month were too messy to fix. The court flirted with overturning affirmative action programs in its 1995 decision involving the same case. The court also ruled today that Indian tribes must pay federal gambling taxes on pull-tab lottery cards and other forms of betting. States are not required to pay federal excise taxes on wagers, and two Oklahoma tribes argued that Congress also intended to exempt them. "The language of the statute is too strong to bend as the tribes would wish," Justice Stephen Breyer wrote for the court's majority. The case involves pull-tab lottery cards, which are sold to finance reservation activities. The Chickasaw and Choctaw nations argued that the federal Indian Gaming Regulatory Act was unclear on whether lottery cards can be taxed. Justice Sandra Day O'Connor, in a dissent joined by Justice David Souter, said the court should have relied on the long-established precedent requiring governments to interpret ambiguity in tax laws favorably to the tribes. -=-=-=-=-=-=-=- TECHNOLOGY Cantwell To Introduce The 'Reclaim Your Identity Act Of 2001' Sen. Maria Cantwell, D-Wash., promised Monday to try to amend federal law to help curb identity theft, the Seattle Times reported. Cantwell said she was introducing the "Reclaim Your Identity Act of 2001" as the holiday shopping season begins "because as credit card usage peaks, consumers deserve the tools they need to protect their identity." Cantwell's proposal, which is based on a Washington state law that went into effect in July, would require businesses to give copies of records reflecting fraudulent transactions to identity-theft victims, require consumer credit reporting agencies to block information that appears on a victim's credit report as a result of identity theft and change the statute of limitations for identity-theft victims to file a claim. Cantwell said the chances are not good that her proposal would get a hearing this year, but she hopes it will raise awareness now and lead to reform next year. -=-=-=-=-=-=-=- AGRICULTURE Bush Slated To Deliver Farm Journal Forum Speech Wednesday President Bush is scheduled to give a luncheon speech to the Farm Journal forum Wednesday, a spokeswoman for the publication confirmed today. The appearance, coming just a day before the Senate is scheduled to take up the farm bill, would provide Bush with an opportunity to take a formal position on farm policy. At that forum today, Trade Representative Zoellick said Bush's speech would show that "the priority" the administration puts on markets for agriculture "starts at the top." Agriculture Secretary Veneman also is scheduled to address the forum Wednesday on food safety. -=-=-=-=-=-=-=- POLITICS Graham Undergoes Surgery To Remove Nonlethal Skin Cancer Sen. Bob Graham, D-Fla., underwent two hours of outpatient surgery Monday in Gainesville to remove a small, nonlethal skin cancer from the right side of his nose, the Associated Press reported. The procedure was done under local anesthetic, and Graham planned to return to work today in Washington. He will take an antibiotic to guard against infection and will wear a bandage until his stitches come out in five to seven days. The doctor who treated Graham said the senator's prognosis was "excellent," and that while it was not life threatening, "it was important to take care of it." -=-=-=-=-=-=-=- POLITICS Crane Passes Sobriety Test After Car Accident Last Month Rep. Philip Crane, R-Ill., passed a sobriety test given to him after his car struck a pedestrian last month near the Washington Monument, according to laboratory results released today, the Chicago Tribune reported. Crane was given a blood test by U.S. Park Police after the Oct. 30 accident and it showed the lawmaker had no trace of alcohol or drugs. "He's not had a drink in almost two years, so it'd be impossible for it to be any other way," said Crane's spokesman. Crane is a recovering alcoholic who completed a month-long stay at a rehabilitation center in April 2000. Police had said the legislator was tested only as a matter of routine and Crane had shown no outward signs of intoxication. The 36-year-old Long Beach, Calif., woman who was struck by Crane's car was hospitalized at a Washington hospital after suffering a concussion and some abrasions and released two days later. Police said the woman was talking on her cell phone when she ran across a street against a red light and into the path of Crane's car. Crane, 70, was not injured in the accident and no ticket was issued, said a police spokesman. -=-=-=-=-=-=-=- HEALTH Health Insurance Association Of America Names Young As President The Health Insurance Association of America has named Don Young as president of the organization. Young has been running the organization on an interim basis since former president Charles (Chip) Kahn decamped to head the Federation of American Hospitals. Kahn succeeded Thomas Scully, who left the federation to join the Bush administration as head the Center for Medicare and Medicaid Services. Young, a physician, is well known and well respected in Washington health policy circles. He served as executive director of Medicare's Prospective Payment Assessment Commission for that advisory group's entire existence, from 1983 until it was merged into the current Medicare Payment Advisory Commission in 1997. After leaving ProPAC, Young served as a senior vice president at the American Association of Health Plans before joining HIAA in 1999 as its chief operating officer and medical director. -=-=-=-=-=-=-=- ECONOMY Consumer Confidence Falls For The Fifth Consecutive Month Consumer confidence unexpectedly fell for the fifth consecutive month in November as Americans continued to worry about layoffs and their buying power, according to the Conference Board. The organization reported today that its Consumer Confidence Index fell to 82.2 from a revised 85.3 in October. Analysts had been expecting an increase to 86.5. "Rising unemployment and continuing layoff announcements are dampening confidence," said Lynn Franco, director of the Conference Board's Consumer Research Center. "A turnaround in confidence levels is not likely before year's end, nor are retailers likely to enjoy a blockbuster holiday season." The announcement was expected to douse hopes that the Dow Jones Industrial Average would reach the 10,000-point level today after finishing Monday just 18 points shy of that mark at 9,982.75. At 2 p.m., the DJIA stood at 9,949.26, a decline of 33 points from Monday's close. -=-=-=-=-=-=-=- ATTACK UPDATE As U.N. talks on the future of Afghanistan began in Germany, anti-Taliban forces said today they have retaken control of a fort where prisoners loyal to Osama bin Laden had staged a three- day revolt, the Associated Press reported. U.S. Special Forces were in action helping Northern Alliance forces put down the bloody uprising in a mud-walled fortress-prison outside the northern city of Mazar-e-Sharif. The alliance said it had suppressed the revolt, killing the last of hundreds of rebelling bin Laden loyalists. A courtyard of the fortress held the bodies of 60 fighters slain in the fierce battle. Meanwhile, U.S. Marines expanded their base of operations in southern Afghanistan, sending out heavily armed patrols in Humvees loaded with anti-tank weapons and heavy machine guns. U.S. helicopters and KC-130 cargo planes landed on the hardpacked sand of the base, where an American flag was planted at the center of a compound of buildings. After negotiations with Pashtun tribal leaders on the fate of Taliban-held Spinboldak, a key town on the main road from Kandahar to the Pakistani border, tribesmen looted blankets and food from humanitarian aid warehouses and drove the Taliban from power, the Afghan Islamic Press said. The Taliban have vowed to fight to the death in Kandahar. A spokesman, Mullah Abdullah, told the Pakistan-based news agency that the Taliban leader, Mullah Mohammed Omar, was still in town and in command of his troops. -=-=-=-=-=-=-=- THE FINAL WORD "This is not exactly a 'Where's Waldo?' exercise." - Sen. Byron Dorgan, D-N.D., on the Senate floor today, accusing Republican leaders who were asking the whereabouts of the economic stimulus bill of having driven the measure off the floor in the first place. -=-=-=-=-=-=-=- -=-=-=-=-=-=-=- CongressDaily is published daily, Monday through Friday, by National Journal Group Inc. Copyright 2001 by National Journal Inc., 1501 M St., NW, #300, Washington, D.C. 20005. Retransmission, redistribution or reproduction of CongressDaily is prohibited without the express, written permission of National Journal Group Inc. To read CongressDaily on the Web, contact 1-800-207-8001 or njcirc@njdc.com for your username and password. President--John Fox Sullivan, 202-739-8468 (jsullivan@njdc.com) Publisher--Steve Hull, 202-739-8475 (shull@njdc.com) Editor--Louis Peck, 202-739-8481 (lpeck@njdc.com) Executive Editor--Keith White Senior Managing Editor/A.M. Edition--Robert Ourlian Senior Editor--Charlie Mitchell Associate Editor--Greta Wodele Assistant Editor--Chuck Jordan Reporters--Pamela Barnett, Lisa Caruso, Geoff Earle, Keith Koffler, Brody Mullins, Stephen J. Norton, Mark Wegner Special Correspondents--Jerry Hagstrom, Julie Rovner Subscription price: $2,497 a year. Subscription and e-mail transmission information: 202-266-7230 (cngdaily@njdc.com). -=-=-=-=-=-=-=- CDENDIT
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