National Journal's CongressDaily
Issue date:  November 27, 2001
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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
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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
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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
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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
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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
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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.
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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.
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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.
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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."
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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.
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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.
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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.
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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.
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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.
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