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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.
-=-=-=-=-=-=-=-




-=-=-=-=-=-=-=-

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