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National Journal's CongressDaily
Issue date: June 6, 2001 -=-=-=-=-=-=-=- SENATE LEADERSHIP Daschle Pledges Bipartisanship As Dems Take Control Newly installed Senate Majority Leader Daschle today pledged to pursue bipartisanship and what he called "united governance" as Democrats took control of the Senate. Daschle and Minority Leader Lott pledged to work together to conduct business just as they worked through issues when Republicans held the majority. Meanwhile, Republicans scaled back their demands for what must be included in a new organizing resolution - the first major task facing Democrats and Republicans in their newly reversed roles. Daschle told reporters he recognized the unique historic nature of a mid-session shift in power, and said Democrats would strive to be fair in their dealings with the GOP, often having criticized Republican rule in the past. "It would be hypocrisy at its worst if we were going to take the same tactics. We're not going to do that," said Daschle. "The tenuous nature of our majority requires that we act accordingly." Lott took a similar tone, saying: "The good times, we will remember and try to repeat. The bad times have already been forgotten." There were continuing signs of a de-escalation of rhetoric over the organizational resolution, which must be passed before new Democratic chairmen can operate their committees effectively. And Republicans appear to be backing down on their demand that the resolution establish new procedures to ensure that the Senate considers presidential nominations. Senate Republican Conference Chairman Rick Santorum of Pennsylvania, who last week hinted Republicans might filibuster the resolution if Democrats did not meet their concerns, today said, "I've said all along that I don't want to change the rules of the Senate to disadvantage members." Democrats - despite their accommodating rhetoric - have shown no signs of willingness to cede new authority to Republicans on nominations. Daschle said Democrats would "respect the process" currently in place. Minority Whip Nickles said: "I think it's going to work . I think it's going to be fine." Nickles said he expected a minimum wage bill, accompanied by some tax relief, to pass this year. But he said "it remains to be seen" whether a compromise can be reached on a patients' rights bill, which Daschle has pledged to bring up after completing work on the education bill. Sen. Olympia Snowe, R-Maine, a key moderate, said it would be better if Republicans and Democrats can come to some "mutual understanding, rather than making some major changes, that may not stand the test of time." The softening of the GOP stance came as Republicans could no longer ignore their new minority status. The Senate today passed a resolution naming Sen. Robert Byrd, D- W.Va., as the new Senate president pro tempore. The Senate Republican Conference was scheduled to meet today to discuss a new organizational resolution, and Daschle was scheduled to meet with new committee chairmen. Until the Senate passes a new resolution, freshmen must go without committee assignments, and panels are composed of members from the 106th Congress, many with GOP majorities. Daschle said Democrats would make decisions about new panel assignments after the organizational resolution is passed. - by Geoff Earle and Charlie Mitchell -=-=-=-=-=-=-=- TAXES House Republicans Stress Impact Of Tax Cut Legislation Frustrated that the change in Senate leadership has overshadowed passage of the $1.35 trillion tax cut, House Republicans today redoubled their efforts to tout tax relief as President Bush plans to sign the measure into law Thursday. "Every paycheck, whether it be weekly, biweekly or monthly, will be bigger in take home pay," House Ways and Means Chairman Thomas said at a news conference today with GOP leaders. A spokesman for House Speaker Hastert said the defection of Sen. James Jeffords, I-Vt., saturated media coverage just as the House and Senate passed the tax cut bill. "Our view is we have to go out there and communicate our message," the Hastert spokesman said, adding that the new Democratic-controlled Senate does not override their plans. Thomas sought to correct what he said included "flat out wrong" media explanations of the tax cut. Thomas said all taxpayers would get a rebate check beginning this summer. He emphasized that it was not a "one-time stunt," saying the tax cut includes a permanent reduction in income tax rates. "It is an ongoing gift to the American people, who are hard working," Thomas said. However, the tax bill, which passed under budget rules, includes a provision that would "sunset" the tax cuts Dec. 31, 2010, unless they are made permanent. Thomas said the Senate was responsible for the sunset provision, and sought to put the onus on the Democrats to make tax relief permanent. House Majority Leader Armey today said the House would move legislation to do that, commenting, "Why should we tell families and small businesses the relief they need will disappear in 10 years?" In a memo distributed today to House Republicans, Republican Conference Chairman J.C. Watts of Oklahoma, who is responsible for GOP communications, said Jeffords' switch complicated his party's ability to talk about tax relief. "Sen. Jeffords' decision to leave the Republican Party was clearly not good news and had two significant ripple effects - however temporary - for House Republicans," he wrote. Watts said the Jeffords defection gave Democrats a forum to blast Republicans and saturated the media so that insufficient attention was given to the tax cut bill. Meanwhile, Senate Finance ranking member Charles Grassley, R- Iowa, said it was "possible" to take up a bill extending the expiring tax breaks this year, while adding, "I think that's probably wishful thinking, although I would welcome it." He said he had met with Finance Chairman Baucus, and the two would continue to work together on prescription drug legislation and upcoming trade issues. He mentioned small business tax breaks and energy provisions as other tax legislation that could still move this year. He also said Sen. Rick Santorum, R-Pa., may be the "leading candidate" to take the new seat on the Finance Committee created by the party switch of Jeffords. But he noted Sens. Mike DeWine, R-Ohio, and Fred Thompson, R-Tenn., are both more senior, although they would have to relinquish other prestige assignments to claim it. - by Mark Wegner -=-=-=-=-=-=-=- POLITICS House GOP Moderates Seeking Progress On Key Issues House Republican moderates said today their leadership has made no special effort to reach out to them in the wake of the defection of Sen. James Jeffords, I-Vt., but complimented House Speaker Hastert's leadership style and attentiveness to their priorities. House GOP moderates hope to see movement on such issues as patients' rights, a prescription drug benefit, campaign finance reform and the environment. Moderates such as Rep. Sherwood Boehlert, R-N.Y., described the Senate as a body of "100 independent operators" and said the Jeffords defection is less relevant to House moderates, especially given Hastert's openness. "We have access. He hears us out. We could not ask for a better leader for the time," Boehlert said. He said the leadership might not always heed moderates' wishes, but said he has seen progress this year on some environmental issues, debt reduction and education. Boehlert said even House Majority Whip DeLay, often a target of Democrats for his conservative positions, "has reached out not only post-Jeffords, but pre-Jeffords." Rep. Marge Roukema, R-N.J., similarly said she has seen no additional outreach from leadership, but called Jeffords' decision a "red flag" for national party leaders. "In a two-party system, you need to bring people together if we are to be in the majority," she said. Roukema cited education reform as "good evidence of excellent progress," but said she also would like to see action on prescription drugs and campaign finance reform. Rep. Christopher Shays, R-Conn., who urged Jeffords not to defect and has been largely content with Hastert's treatment of campaign finance reform, said moderate issues have found their way onto the table this year. "That's why we don't have the problem in the House," Shays said. Speaking with reporters Tuesday, National Republican Congressional Committee Chairman Tom Davis of Virginia used a sports metaphor to describe Hastert's management of the GOP Conference. Davis said that, unlike the Senate, House Republicans may disagree in private but play "team ball" in public. "The key to our success is we all play together," Davis said. Hardline conservative positions do sometimes make floor votes difficult for members representing marginal districts. Rep. Michael Castle, R-Del., said he hopes the new Democratic-controlled Senate might provide an opening for President Bush to be more collaborative in his approach. "I'd assume our leaders think 'pure Republican' positions need to be established in the House, but some of us in the House would prefer that we pre-negotiate some things like we've done on education," Castle said. "There will be some pulling and tugging as we go along." - by Mark Wegner -=-=-=-=-=-=-=- ENERGY House Drops Calif. Energy Bill, Daschle Wants Action House Republicans pulled the plug on a short-term California electricity relief bill today after failing to strike a deal with Democrats on a controversial price cap provision. The development comes as two leading Senate Democrats plan to make California energy legislation a top priority of the Democrats' first month in power. Senate Energy and Natural Resources Chairman Bingaman will focus on producing a short-term bill in the next few weeks before shifting to a more comprehensive energy bill after the July Fourth recess, he said today. "We'll see what we can agree on in a short-term bill" by July 4, Bingaman said at a session with reporters. Meanwhile, Majority Leader Daschle, clarifying earlier remarks, said Congress should order the Federal Energy Regulatory Commission to limit prices in California's wholesale electricity market if FERC refuses to act. In a letter to California Democratic Gov. Gray Davis, Daschle said that unless FERC curbs wholesale prices, "Congress will have to consider legislation to address this issue." Although Daschle said he does not believe Congress "can or should establish a dollar amount for the price of electricity," he endorsed legislation offered by Sens. Dianne Feinstein, D-Calif., and Gordon Smith, R-Ore., that orders FERC to limit prices. "Unless FERC acts soon," Daschle said, the "legislation should be taken up and passed . I will support all necessary efforts to meet that goal." Daschle's comments come after Daschle appeared to soften his support for price caps in a Los Angeles Times interview late last week. On the other side of the Capitol, House Democrats blasted Republicans for calling off an Energy and Commerce Committee markup of the California bill. "I think that the canceling of the markup was a mistake," Energy and Commerce ranking member John Dingell, D-Mich., said at a news conference. Earlier, Energy and Commerce Chairman Tauzin and Energy and Commerce Energy and Air Quality Subcommittee Chairman Joe Barton, R-Texas, told reporters they pulled the bill to protect good relations on the panel. The Republican leaders said they had the votes to pass the bill and reject a Democratic amendment to limit wholesale prices. But the contentious votes would have made it more difficult to gather Democratic support for the more comprehensive energy plan this summer. Still, Tauzin said the planned committee action had spurred the Bush administration and California lawmakers to implement many of its provisions. Barton, the author of the bill, said the victory was bittersweet. "I hope I don't have many more victories like this," he grumbled. - by Brody Mullins -=-=-=-=-=-=-=- ENERGY GOP Defends Bush Energy Policy Against Attacks Republican legislators on the House Resources Committee and Interior Secretary Norton today made a pre-emptive strike against critics of President Bush's national energy policy at a news conference before Norton's testimony before the committee. Resources Chairman Hansen, Energy and Commerce Chairman Tauzin and Norton defended the administration's energy policy, repeating the mantra that the proposal includes environmental protections, conservation initiatives and renewable and alternative energy measures as well as provisions to increase domestic oil production. Tauzin adamantly took issue with criticism against increasing domestic oil production, arguing that the United States must increase domestic oil supplies to prevent future energy crises and reduce its dependence upon other countries. But Tauzin was also quick to add that Congress and the administration will concentrate their efforts "big time" on conservation, demand reduction, environmental protections and alternative energy sources. Fielding questions on the issue of opening up newly designated national monuments for drilling, Norton said the Interior Department is studying the designated lands on a "case-by-case" basis - receiving comments from state and local officials on support for the national monuments, which were designated by the Clinton administration during its final days. Norton noted that some states steadfastly support their national monuments, while others vehemently oppose the land restrictions, adding that the department will take this into consideration before opening these lands up for domestic oil production. Added Hansen, "What can be opened up, should be." At the other end of the hall, two Democratic panel members held their own news conference to call attention to a designated area in Montana that will be opened for drilling in July. A coalition of American Indian tribes and environmental groups joined Rep. Frank Pallone, D-N.J., and Resources ranking member Nick Rahall, D-W.Va., to introduce legislation to overturn a federal permit allowing oil drilling in Weatherman Draw, a pristine Montana valley. The coalition argued the site contains one of the most significant collections of Indian art on the Northern Plans, including prehistoric, multicolored drawings of shields, animals and human figures. Last month, a state agency gave Denver-based Anschutz Exploration Corp. permission for exploratory drilling in the valley. Anschutz holds leases to oil rights on two parcels of land in Weatherman Draw and has permission to start drilling as early as July 21. During Norton's testimony, Rahall asked Norton to use her authority to stop the drilling but Norton declined to say whether she would prohibit the drilling, but promised to continue to monitor the area and work with local officials and tribal groups. - by Greta Wodele -=-=-=-=-=-=-=- FINANCE LaFalce Promises Review Of SEC Protection Of Investors House Financial Services ranking member John LaFalce, D-N.Y., said today he intends to "aggressively" pursue an investigation into the SEC's capacity to protect investors, saying that too much of Congress' financial agenda traditionally has been "industry driven." A case in point, LaFalce told a group of reporters, is pending SEC fee reduction legislation, which he said ought to have been considered in the context of "an examination of what the needs and role of the SEC should be." While saying he is not opposed to a fee reduction for investors, LaFalce said he felt a "much larger look at issues and questions" was warranted. While acknowledging the committee's work in the area of financial modernization, he said, "This has been the agenda of industry." Asserting that investor protections have been ignored for the last 25 years, LaFalce said one issue where there is "a crying need for a thorough, exhaustive investigation [is] the capacity of the SEC to protect investors given [the agency's] limited resources and reach of the law. I intend to pursue this aggressively." In that vein, LaFalce expressed a desire to see the SEC's enforcement capabilities beefed up by increasing the agency's enforcement staff "not by 2 or 3 percent, but by 200 to 300 percent." With the Senate's shift from Republican to Democratic control, LaFalce contended that the "stumbling block" to consumer advocacy in that chamber "has been eradicated. Proponents of consumer advocacy have been emboldened." Noting that newly installed Senate Banking Chairman Sarbanes shares his consumer protection concerns, LaFalce said he expected he would be helped both offensively and defensively in the House. "It will help me both advance my agenda and stop agendas I oppose," LaFalce said. Overall, LaFalce surmised he would be afforded greater leverage in the legislative negotiations and in setting the agenda. "If you know an issue is going to be taken up in conference, you might as well take it up now," LaFalce said. As for House Financial Services Chairman Oxley, who has been criticized in some circles as relying too heavily on the financial industry in setting his agenda and priorities, LaFalce described their working relationship as still evolving. While expressing great affection for Oxley personally, as a friend of 20 years, LaFalce said he had yet to glean Oxley's "substantive disposition" on a number of fronts - consumer protection included. He intimated there might be too much top down control, with the full committee dictating to subcommittee chairmen on what and when to hold hearings and markups. "I don't think that's the way to legislate, LaFalce said. "That is not my idea of thoughtful legislating." - by Pamela Barnett -=-=-=-=-=-=-=- HEALTH Managed Care Industry Faults Bill Over Litigation Factor Leaders of the managed care industry today sketched out for reporters what will likely become a familiar theme over the next several weeks as the Senate prepares to debate a patients' rights bill - that the leading bipartisan measure would hurt patients more than it would help them. "It would be impossible not to conclude . that this is a trial lawyer takeover of the healthcare system," Karen Ignagni, president and CEO of the American Association of Health Plans, said at a briefing. Ignagni said that by dramatically expanding the right to sue health plans in both state and federal courts, the bill sponsored by Senate Commerce ranking member John McCain, R-Ariz., Sen. John Edwards, D-N.C., and Senate Health, Education, Labor and Pensions Chairman Kennedy would equally dramatically increase the cost of health insurance. "And the only way for [employers] to recoup is for workers to trade additional wages, or workers will have to pay more directly for health care," Ignagni said. While the AAHP has expressed "concerns" with the leading alternative measure - sponsored by Sens. Bill Frist, R-Tenn., John Breaux, D-La., and James Jeffords, I-Vt., and backed by President Bush - Ignagni was careful not to rule out the possibility that the organization could ultimately back some expansion of liability in federal court only. While the organization has been steadfast over the past five years in its opposition to any expansion of liability while supporting a requirement for independent outside review of health plan denials, Ignagni said a decision to support the Frist-Breaux- Jeffords bill or any other substitute "will be made by our members," who "will be instructing us every step of the way." Ignagni said she also expects that insurance and business opponents could soon be joined by the hospital industry, which has been largely supportive of patients' rights legislation, particularly provisions that would require insurers to pay for emergency room care. Further study of liability language has shown that it could not only expose physicians to new lawsuits, Ignagni said, but also hospitals. "Every hospital in this country is as vulnerable as every physician," she said. - by Julie Rovner -=-=-=-=-=-=-=- TRADE Legislators Urge ITC Review Of Canadian Wheat Board Senate Finance Chairman Baucus, Budget Chairman Conrad, Sens. Byron Dorgan, D-N.D., and Conrad Burns, R-Mont., and Larry Craig, R-Idaho, and Rep. Earl Pomeroy, D-N.D., today urged the International Trade Commission at a hearing to pursue an aggressive investigation of the Canadian Wheat Board, a state trading enterprise that exports all western Canadian wheat. Former Trade Representative Barshefsky requested the investigation under Section 301 of the 1974 Trade Act last October, and the ITC has said it will submit a confidential report to the Office of the U.S. Trade Representative by Sept. 24. Wheat farmers in the Northern Plains have complained that since the Canada-U.S. Free Trade Agreement went into effect in 1989 the Canadian Wheat Board has been using unfair and secretive trading practices to sell wheat in the United States and in markets where U.S. and Canadian producers compete. "What we need from the commission in this investigation is an exhaustive catalog and description of the discriminatory pricing policies of the wheat board and the most precise possible quantification of the effects on U.S. producers of these unfair practices," Baucus said. "And we need that information to be made available to interested parties and the public to the maximum extent possible." Charging that the Canadian government and the wheat board have "stonewalled" previous U.S. efforts to get information on the wheat board's operations, Baucus urged the ITC to "use all secondary sources in the U.S. government and the U.S. and Canadian private sectors" to collect information and draw "meaningful conclusions." Craig noted that while the USTR request was in response to a petition from the North Dakota Wheat Commission, the investigation has the support of national and other state wheat groups as well. Both Craig and Pomeroy pointed out support for future trade agreements has eroded in the northern border states because residents there believe the agreement with Canada has worked to their disadvantage. Pomeroy also said that, if the Canadians refuse to provide information, "silence can and must be used against them." Dorgan said U.S. farmers had been "patient" with the government for 10 years and that the U.S. response to the Canadian situation to date has been "pathetic." An ITC official noted during the hearing that the Canadian Wheat Board was invited to testify, but chose not to. - by Jerry Hagstrom -=-=-=-=-=-=-=- FINANCE Grassley To Form Strategy With House Republicans On Bankruptcy Senate Finance ranking member Charles Grassley, R-Iowa, today said he intends to meet as early as this week with House Republican leadership and committee chairmen to try and forge a consensus strategy on "the difficult parliamentary situation" brewing on bankruptcy reform legislation. The House and Senate each have passed individual bills but Republicans want to avoid reopening the measure in conference. The House has the option of taking up the Senate-passed bill, but Grassley indicated that is unlikely, noting the Senate bill's inclusion of language pertaining to homestead exemptions and clinic violence. -=-=-=-=-=-=-=- ENERGY Dems Ask Burton To Investigate Cheney's Energy Task Force House Government Reform Committee Democrats Tuesday wrote Government Reform Chairman Burton to urge him to look into Vice President Cheney's energy task force, which met privately with major Republican donors in formulating the Bush administration's energy policy, the Associated Press reported. Government Reform ranking member Henry Waxman, D-Calif., asked Burton to conduct a hearing on what took place at the Cheney group's secret meetings and the identities of all participants. "The Cheney task force has conducted its meetings in private, and reportedly has obtained input from private citizens and groups, including political contributors," Waxman wrote in the letter. The AP reported last month that GOP contributors - including executives from power wholesaler Enron and the Edison Electric Institute, the utility industry lobbying group - had met with Cheney to discuss energy policy. A committee spokesman said the Republican staff has not had a chance to discuss the letter with Burton. -=-=-=-=-=-=-=- POLITICS Evans Participates In Steel Industry Rally Commerce Secretary Evans joined members of Congress from both parties today in pledging to stand with the United Steelworkers of America in their effort to help the ailing domestic steel industry. Evans' presence at rally at the Capitol came one day after the administration announced it was starting a Section 201 action in response to evidence of serious injury the industry has suffered as a result of allegedly illegal dumping by foreign producers. Evans said the move was just a first step in addressing what has become an uneven playing field. Just how far the administration would go beyond taking action under existing trade laws is not clear. While the workers and their allies in Congress greeted the news of the Section 201 action positively, they pressed today for passage of a bill that would also provide government subsidies to help ailing steel manufacturers rebuild and recover and shore up health and retirement funds hit hard by the crisis in the last few years. -=-=-=-=-=-=-=- POLITICS Watson Wins Special Election Democratic state Sen. Diane Watson coasted to an easy victory Tuesday in the special election to pick a successor to the late Rep. Julian Dixon, D-Calif. With all precincts reporting, Watson - a former ambassador and the first black woman elected to the California state Senate - had 75 percent of the vote, while Republican nominee Noel Irwin Hentschel had 20 percent. Watson's victory means the House Republicans now hold a 221-210 majority, with two independents and two vacancies. The next special election will be held June 19 to fill the vacancy created by the death of Rep. Norman Sisisky, D-Va., while a special election has yet to be set to choose a successor to the late Rep. Joe Moakley, D-Mass., who died on Memorial Day. Watson will be sworn into her new office Thursday. Watson's election was virtually assured once she won the Democratic nomination, since the 32nd District is 73 percent Democratic. Its population is 40 percent black, with a growing number of Hispanics. -=-=-=-=-=-=-=- THE FINAL WORD "I'm hoping someday the weight comes back, as it was fated to be." - Senate Minority Leader Lott, today comparing the job of majority leader to that of Atlas carrying the weight of the world on his shoulders as Democrats became the Senate majority - and Lott lost the majority leader's post he held for the past five years. -=-=-=-=-=-=-=- -=-=-=-=-=-=-=- 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--Chris Cillizza, 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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