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Monday, April 14, 2008
AGRICULTURE
Harkin, Peterson Say Farm Bill Issues Have Been Resolved
Senate Agriculture Chairman Tom Harkin and House Agriculture Chairman Collin Peterson both said today they have settled all the issues in the new farm bill except for those on which conferees will vote. They added that the completion of the bill depends on Senate Finance Chairman Max Baucus and House Ways and Means Chairman Charles Rangel reaching agreement on which offsets to pay for spending above the 10-year baseline of $597 billion. But an Agriculture Department spokesman said today that the Bush administration was not satisfied with the offer the Senate made Friday. "This proposal does not include program reform and includes tax revenue provisions for the sole purpose of increasing government spending. Therefore, this proposal is not acceptable and the president's senior agriculture advisers would recommend a veto," said Chris Connelly, a spokesman for Agriculture Secretary Schafer. Harkin, who chairs the conference, has called a meeting of conferees for today. He said he expects Peterson to make another counterproposal on offsets that will be turned over for Baucus and Rangel to settle. The remaining issues could be resolved in a few "marathon" sessions Wednesday and Thursday, Harkin said. He added that while it is unlikely the conferees could get the bill to the floor of the House and Senate before Friday, the date the extension of the 2002 farm bill expires, floor action is likely next week. Peterson said he wants the bill settled by Wednesday so that he could persuade House Speaker Pelosi and others to support another short-term extension of the 2002 bill. Peterson added that he had accepted the only change the Senate conferees made in the farm bill. The House had increased the cut in crop insurance subsides to $6 billion, but the Senate reduced the cut to $5.75 billion. Harkin said that to reduce the crop insurance cut, the Senate proposal would delay implementation of the increases in crop target prices and loan rates and make a small change in his average crop revenue program. Harkin noted that the change in date for target prices and loan rates would not matter because crop prices are above those levels at the present time. The House and Senate have proposed different levels of spending with different offsets. The House proposed $5.5 billion in spending above the baseline, but Peterson said today that House Minority Leader Boehner had agreed to $6 billion above the baseline. The House proposed using revenue from stricter credit-card income reporting as an offset. The Senate proposed spending $10 billion above the baseline plus $2.5 billion in tax breaks to be financed through a combination of income from stricter stock basis reporting and an extension of customs user fees and reductions in Medicare expenditures due to a ban on physicians' referrals to hospitals they own as offsets. A Baucus aide said the Montana Democrat will continue to talk with Rangel and many other colleagues today to settle on a final list of offsets. -- by Jerry Hagstrom
WHITE HOUSE
Administration Might Consider Climate Change Measure
The White House has sent aides to Congress to tentatively broach the issue of climate change legislation, but President Bush has not decided whether he will act or stand pat on global warming during his last year in office, industry lobbyists said today. Lobbyists said White House Council on Environmental Quality Chairman James Connaughton and Keith Hennessey, deputy director of the National Economic Council, met with congressional Republicans and major industry groups last week and suggested three possible options: a set of principles for legislation the White House could support; a new carbon tax that would be offset by reductions in tax revenue elsewhere; and a greenhouse gas emissions cap and trade plan for power plants. The one-week window for an announcement by Bush begins Wednesday morning, the lobbyists said. But they also noted that Connaughton and Hennessey got a harsh reaction from House Republicans last Wednesday, which suggests Bush might decide to do nothing. House Global Warming ranking member James Sensenbrenner and Rep. John Shimkus, R-Ill., were among those advising that Bush would be better off not proposing anything. "Why are you going there now when the Congress is not looking for smaller incremental steps?" said one House Republican aide. "The [Democratic] leadership will not endorse or support whatever the administration would likely propose." A spokesman for House Minority Whip Blunt declined to discuss any meetings Blunt had with the White House last week on global warming, but said House Republicans could not support a "climate change bill that adversely impacts our competitiveness, hemorrhages U.S. jobs, and refuses to deploy advanced technologies to produce more energy." Connaughton and Hennessey did not mention specific options when they met with Senate Republicans Thursday, lobbyists said, indicating that they might have altered their sales pitch after meeting with the House Republicans. Connaughton and Hennessey instead presented Senate Republicans with a status report on global warming and indicated legislation might be necessary in the next 18 months. One slide used in the presentation indicated a cap-and-trade bill is an option "in the president's toolbox," one lobbyist said. A CEQ spokeswoman confirmed Connaughton was on Capitol Hill last week to talk about global warming but would not discuss specifics. Connaughton and Hennessey also met with leaders of major industry trade associations Friday to hear what they would require in global warming legislation, one industry lobbyist said. White House Press Secretary Dana Perino said President Bush is "not necessarily" opposed to "capping and trading" as a way to address global warming, but so far has not seen a proposal he likes. Perino confirmed the administration is considering new proposals for addressing global warming, but declined to give any details. She said the current federal approach to climate change is headed toward a "regulatory train wreck." -- by Darren Goode, with Keith Koffler contributing
TRADE
President Says Pelosi's Move Will Kill Deal With Colombia
President Bush today denounced House Speaker Pelosi's decision last week to abolish a 90-day deadline for a vote on the Colombia Free Trade Agreement, saying unless she decides to schedule a vote she has killed the deal. "This is a unprecedented move and it's not in our country's interests that we stiff an ally like Colombia, and that we don't encourage our goods and services to be sold overseas," Bush said after meeting with his Cabinet this morning. "That bill is dead unless the speaker schedules a definite vote," he said. Pelosi last week moved a measure through the House that would eliminate a rule under presidential trade negotiating authority requiring a vote within 90 working days of the president submitting an agreement to Congress. Bush submitted the deal last week over the wishes of top Democrats, asserting he had no choice if he wanted to assure a vote before Congress adjourns. Pelosi and other leading Democrats took the move as a violation of efforts to forge bipartisan cooperation on trade, and they surprised the administration by changing trade negotiating authority rules. Today, Pelosi said the trade deal is dead only if Bush wants it to die. If he wants to save the deal, she added, he needs to first negotiate with Democrats on a new economic stimulus package. "We ask the president to once again bring his people to the table so we can move forward," Pelosi told reporters. The Colombia deal is perhaps Bush's top legislative priority for the remainder of the year, and Bush is said by aides to be passionate about helping Colombia by getting the deal approved. "There's big disappointment around this table about the action the speaker took on the Colombia Free Trade Agreement," Bush said. Bush also acknowledged "economic uncertainty" in the country, and called for Congress to take several steps to address it. He said lawmakers must finish legislation making changes to the Federal Housing Administration, Fannie Mae and Freddie Mac and that they should renew expiring tax provisions. Bush has consistently resisted a new stimulus proposal, saying the rebates passed this year should first be allowed take effect. "That's going to be an important part of making sure this economy begins to recover in a way that will add confidence and hope," he said of the original stimulus package. -- by Keith Koffler, with Peter Cohn contributing
JUDICIARY
Hatch Says Patent Bill Has A Chance To Move Ahead
The Senate patent reform bill still stands a chance of moving ahead despite the fresh standoff between Judiciary Committee leaders, according to Sen. Orrin Hatch, R-Utah, a co-sponsor of the bill. Senate Judiciary Chairman Patrick Leahy and ranking member Arlen Specter have locked horns over language that would alter how damages are awarded in infringement lawsuits, making the measure's chances to advance before the Memorial Day recess uncertain. Leahy introduced the bill a year ago and worked for months with Specter and Hatch to find a compromise on the most controversial sections. Leahy said "a handful of words" stalled the bill and called the situation "a missed opportunity." But Hatch said in an e-mail that "there's still plenty of time to resolve the concerns that some have." He said he and Leahy need Specter's continued support and said he looked forward to working with the Pennsylvania Republican "until we cross the finish line." Added Hatch, "I've always believed it's better to get the job done right rather than just done fast." Mark Isakowitz, a spokesman for the Coalition for Patent Fairness, sent out an optimistic e-mail late Friday lauding Leahy's resolve to "stand firm" on damages. The group, which represents technology and media companies, believes damages should be based on the value of the component in question rather than the entire product. Isakowitz said his members are upset that the bill's critics "refuse to budge an inch" when sponsors "have made a tremendous number of compromises." "Mark Twain would have said that reports of patent reform's death have been greatly exaggerated. The same could have been said about reports of its momentum toward passage," said Eli Lilly General Counsel Robert Armitage. Stakeholders with differing views on reform are "working hard to get to a common place," but the bill needs work and the process of reconciling viewpoints is far from complete, he said. Armitage, whose company is part of the Coalition for 21st Century Patent Reform, said he has seen as many as 50 versions of damages proposals. He called for "a more creative approach" to the issue and praised recent compromise language floated by Sen. Dianne Feinstein, D-Calif., because it would provide a methodology to ensure the issue is "properly postured" for a jury. Industry interests have a responsibility to help advance the ball because "a period of exhaustion must be setting in" among Senate staffers, he added. Five higher education associations working to influence the patent bill are continuing to make their views known to sponsors, the Association of American Universities said in a Friday member update. The AAU and its counterparts believe damages should be determined on a case-by-case basis, using an economic rather than technical valuation. Under such a framework, damages should be based on the value of the patented invention at the time of infringement, not at the time of the application. -- by Andrew Noyes
LOBBYING
NAM To Appeal Court Ruling On Lobbying Disclosure Law
The National Association of Manufacturers announced today it will ask for a stay and appeal D.C. District Court Judge Colleen Kollar-Kotelly's Friday ruling that NAM must comply with the 2007 lobbying disclosure law. "We remain convinced that many of the law's burdensome and intrusive disclosure requirements will have a serious chilling effect on the constitutional rights of our members," NAM President John Engler said. The lobbying law would require the powerful trade group to disclose the identities of members that pay more than $5,000 quarterly for lobbying help. NAM had challenged the constitutionality of the law, citing the First Amendment right to petition the government. In a lawsuit filed in February against the House, Senate and Justice Department, NAM argued that its membership would suffer because companies would not want to be publicly linked to certain lobbying activities for fear of reprisals. "Public debate is not served by undermining the rights of business -- employers and employees alike -- or when laws limit speech, association and the public's ability to petition the government," Engler said. In dismissing the complaint, Kollar-Kotelly called NAM's fear of declining membership "only speculation," and said the section of the Honest Leadership and Open Government Act was "narrowly tailored to serve compelling government interests, and is neither vague on its face nor as applied to the NAM." The ruling also stated that the law seeks necessary information only on who pays for lobbying efforts, and it was written to "avoid capturing mere dues-paying members of established organizations." Numerous public interest groups, such as the Campaign Legal Center and Democracy 21, filed briefs supporting the defendants. "The National Association of Manufacturers' attempt to gut disclosure provisions of [the bill] was a blatant attempt to keep the public in the dark regarding those who spend huge amounts of money to influence policy anonymously," said CLC Executive Director J. Gerald Hebert. -- by Andy Leonatti
BUDGET
Coburn Persists In Challenging Colleagues Over Spending
Despite the overwhelming defeat of his lands bill amendments last week, Sen. Tom Coburn, R-Okla., remains committed to his long-term strategy of placing holds on bills and forcing votes, he said. "I'm going to continue to hold things that I want to amend," Coburn said of his strategy for the rest of the year. "I don't expect to win a lot, but I do expect the American people to be more informed." By forcing senators to record votes on measures he considers wasteful and opposed by much of the public, Coburn said he is doing his part to help shift the public discourse to topics that will serve conservatives down the line. He knows it may not happen during this election cycle -- Republicans must defend 23 seats in the Senate, the Democrats just 12 -- but he thinks his strategy will pay off two or three cycles down the line. "The present attitude's going to change," he said. Coburn's interference on the lands legislation, a package that included scores of land preservation bills, dates back to last year, in large part due to his insistence for a vote on an amendment that would allow individuals to carry guns in national parks. Although he said he was confident the Democratic presidential candidates will avoid the controversial measure, Coburn said he has been assured of a vote on it in the coming months. "I promise you, you're going to see it this year," Coburn said. His approach irks some colleagues, including Senate Energy and Natural Resources ranking member Pete Domenici. "I wholeheartedly disagree with his approach to these bills and to what the senator is doing in the Committee on Energy and Natural Resources in producing these bills for a vote," Domenici said. "I think the senator is wrong." But Coburn remains steadfast in his beliefs. "Parochialism's killing us," he said. "We're putting our states ahead of the country, instead of our country ahead of the state." -- by Ben Schneider
HILL BRIEFS o Campaign Finance.
Robert Lenhard, a Democratic nominee for the FEC, has withdrawn his name from consideration, Senate Majority Leader Reid said in a letter to the White House. Reid said a search for a replacement for Lenhard could take several months, delaying attempts to end a lengthy Senate stalemate and fill four of the six seats on the panel. "The unwillingness on the part of the Administration and Senate Republicans over these many months to work with me to resolve this problem has now made resolution more difficult," Reid wrote.
o Finance.
The National Association of Insurance and Financial Advisors is backing legislation that would allow insurance carriers to choose whether they will continue to be regulated by states or opt for supervision by a new federal agency. The group's board of trustees decided Friday to endorse the measure, which has bitterly divided the insurance industry. Large carriers and much of the life insurance industry wants the option, contending it would promote better competition and price structures as well as reduce paperwork. Mutual insurance carriers, state regulators, and independent agents oppose it, arguing premiums would likely rise for those carriers not under state price controls and that consumer protection would be minimal. President Jeffrey Taggart noted in a letter that there were internal divisions, and that its support is based on several conditions that will be finalized at a later date. House Financial Services Chairman Barney Frank has said that it may make more sense to allow life insurers the option for a federal charter because its products are more national in scope compared to auto and homeowner policies.
o Labor.
Taking aim at executive salaries, the AFL-CIO today unveiled a Web site that lists the amounts that CEOs for about 3,000 companies are paid, along with its estimates of other compensation. "Overall, pay went down since last year, but when compared to an average American worker, it's hard to feel bad for them [CEOs]," said AFL-CIO Secretary-Treasurer Richard Trumka. According to the Web site, www.paywatch.org, chief executives at 400 of those companies averaged $14.2 million each in total compensation in 2007. With the recent focus on the mortgage crisis, the organization has devoted an entire section of the site to mortgage industry executives. "The boards rewarded CEOs for generating revenue with irresponsible lending," said Daniel Pedrotty, AFL-CIO's director of office investments.
o People.
Sen. David Vitter, R-La., will not have to testify about his ties to a Washington escort service, a defense attorney said today, the Associated Press reported. Vitter has been on notice for more than a week that he could have to appear during the racketeering and money laundering trial of Deborah Palfrey. Palfrey's attorney, Preston Burton, said he would rest his case today without calling Vitter or any other witnesses.
POLITICAL ROUNDUP National.
The Democratic Congressional Campaign Committee reports raising $20 million in the first quarter of 2008, half of it in the last month. That boosts the party's cash on hand to $44.3 million -- about twice as much as it had in the bank last year at this time. Also since this time last year, the DCCC tripled its grassroots fundraising and doubled the number of grassroots supporters, according to a statement. And just as the National Republican Congressional Committee announced at the end of March that it paid off all of its debt, the DCCC erased its smaller debt of $762,000 since its last report on March 20. The NRCC intends to release its latest figures toward the end of the week.
National.
The Democratic National Committee filed suit today in the U.S. District Court in the District of Columbia seeking a judge to order an investigation into whether the presidential campaign of Sen. John McCain, R-Ariz., violated election laws by withdrawing from public financing. Since the FEC lacks a quorum, the DNC says the agency has not been able to begin an investigation into the complaint the DNC filed against McCain in February. McCain had been entitled to federal funds for the primary campaign. He decided to give up that money so he could avoid strict spending limits between now and the GOP's national convention.
Kentucky.
The members of the League of Conservation Voters last week added Senate Minority Leader McConnell to its 2008 "Dirty Dozen" list. "Our members know that Mitch McConnell has voted against our health and safety since he came to Washington. They know that he stands as an impassable roadblock in the way of a clean energy future for this country," said LCV President Gene Karpinski. The "Dirty Dozen" program targets current and former members of Congress over what the LCV describes as anti-environmental votes. McConnell joins Sen. James Inhofe, R-Okla., Rep. Joseph Knollenberg, R-Mich., and former Rep. Bob Schaffer, R-Colo., who is running for a Senate seat, on the 2008 list. The Democratic field vying to take on McConnell includes businessmen Bruce Lunsford and Greg Fischer.
THE FINAL WORD "Does it bother me that I'm not loved? If I wanted love, I'd buy a puppy. This is politics." -- State Sen. Joseph Pennacchio, a conservative seeking the GOP U.S. Senate nomination in New Jersey -- quoted by the Associated Press today shrugging off the infatuation of his party's leadership with a succession of other candidates.
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