JUDICIARY
Specter Hustling To Prevent Demise Of Asbestos Legislation
Asbestos legislation faces two crucial Senate tests in the next few days, including a vote as soon as today on a budget point of order that requires 60 votes to overcome. Judiciary Chairman Specter is trying to round up votes to keep the bill alive, as he touted a new CBO estimate that he said boosted his arguments about the cost of the proposed asbestos trust fund outlined in the bill. Many Republicans -- even those who oppose the bill -- are expected to vote to waive the budget point of order, and GOP leaders are aiming to secure at least 50 GOP votes, aides said. Sen. John Cornyn, R-Texas, said today he will vote to waive the budget point of order but will oppose a cloture vote slated for as early as Wednesday to limit debate on the bill. As many as 12 Democratic senators could break ranks with their leadership and vote to waive the point of order, Democratic and Republican aides said. Specter has been visiting with senators of both parties to prevent the bill from being scuttled by the procedural vote today. "It's not easy to get 60 votes ... it's a battle and we're fighting it out," Specter said. Specter said the new CBO figures confirm that no federal money would be used to run the asbestos trust fund, rebutting an argument by fiscal conservatives that resulted in the budget point of order against the bill. In a letter sent Monday night, CBO concluded the effect of the bill would be "budget neutral."Budget Chairman Gregg asked for a new estimate to determine if the bill would result in additional federal spending. But Cornyn said the CBO report "cuts both ways," noting that the report also states that the fund would require loans to pay all claims to asbestos victims. The fund could default on government loans, he said, effectively costing taxpayers. In what could pose a bigger challenge to the bill, Specter has filed a cloture petition on the bill itself, which would lead to a vote as early as Wednesday morning -- assuming the bill survives the first procedural vote. Cornyn said if the bill dies this week, he would introduce a narrower, stand-alone bill aimed at limiting the number of asbestos lawsuits by establishing a set of medical criteria that asbestos victims must meet to go to court. Cornyn unsuccessfully pushed an amendment to the Specter bill that would establish such a system. Majority Leader Frist, however, threw cold water on Cornyn's idea. "We already brought up medical criteria to the floor," he said. "It only got 27 votes." -- by Emily Heil, with Greta Wodele contributing
TAXES
Amid Partisan Shots, Senate Poised To Advance Tax Bill
The Senate finally appears ready to send the tax reconciliation bill to conference, with Majority Leader Frist likely to appoint conferees by the end of today. Senators sped through votes this morning on motions to instruct conferees that members of both parties used to position themselves politically for the conference battle. While as many as 16 motions to instruct were in order, Senate Democrats relented and agreed to drop half of theirs after five roll-call votes and the adoption of three motions by voice vote. Frist, off the Senate floor, blamed Democrats for delaying important legislative business. "It's a feeble attempt to object, delay and obstruct," Frist said, adding seven committee hearings with four Cabinet secretaries were canceled today because of the Democrats' insistence on roll-call votes on their motions to instruct conferees. Republican aides at presstime said the slate of conferees had not yet been settled, but Frist predicted they will be appointed by day's end. One Senate aide said the ratio will likely be 2-1, with Senate Finance Chairman Grassley and ranking member Max Baucus, D-Mont., a lock for two spots. The third conference spot would likely to go to either Sen. Orrin Hatch, R-Utah -- next in seniority on the Finance Committee after Grassley -- or Sen. Trent Lott, R-Miss. On motions to instruct, the Senate approved 53-47 a motion by Grassley instructing conferees to include both alternative minimum tax protections and the capital gains and dividend extension in a final conference report. Four Republicans voted against that motion -- Sens. Lincoln Chafee of Rhode Island, Olympia Snowe of Maine, George Voinovich of Ohio and John Warner of Virginia. Democratic Sens. Bill Nelson of Florida and Ben Nelson of Nebraska joined Republicans in voting for it. Baucus argued that enacting both tax cuts would be fiscally irresponsible. "Now, this motion says: 'You can have it all.' This motion says: 'There is no deficit problem.' This motion says: 'Don't worry, be happy,'" said Baucus. A competing motion from Sen. Edward Kennedy, D-Mass., urging conferees to reject the dividends and capital gains extension was defeated by the same 53-47 margin. Those votes suggest that GOP leaders may have enough votes to approve a conference report with the investment tax breaks included in a reconciliation-protected bill, but would fall far short if they cannot get around budget points of order Democrats have promised to raise on such a package. In comments to reporters, Grassley hinted at a possible compromise, saying that while he will push for the House-passed two-year extension of dividend and capital gains relief, "The question is, whether we get one or two years." A motion from Sen. Kay Bailey Hutchison, R-Texas, to make permanent the deduction for state sales tax passed 75-25, and a motion from Sen. Frank Lautenberg, D-N.J., urging conferees to ensure that the final package did not add to the deficit, failed 54-46. -- by Martin Vaughan, with Greta Wodele and Mark Wegner contributing
LOBBYING
Lott Opposes Total Travel Ban In Favor Of More Disclosure Senate Rules Chairman Lott said today he opposes an outright ban on privately funded congressional travel with exceptions for specific groups and instead favors a review process that would subject proposed travel to a "clear before and report afterward" approval process. Lott, who is planning a lobbying reform markup for the week of Feb. 27, said imposing a ban that carves out exceptions for groups could allow a member to attend an educational Aspen Institute event but prohibit that member from touring a home-state facility. As Congress works to respond to the Jack Abramoff lobbying scandal, which included a golf trip to Scotland, a travel ban has emerged as an element of many proposed lobbying reforms. However, sponsors of such proposals have acknowledged the merits of some privately funded travel and are looking at exempting educational or non-profit groups. In a preview of his markup, Lott also said he would use an earmark proposal he has sponsored with Sen. Dianne Feinstein, D-Calif., as the base but would be open to amendments. "There is a general feeling that our proposal is the right proposal" in committee, Lott said. "We're not going to ban all earmarks." The Lott-Feinstein proposal would allow a 60-vote point of order on proposals in any conference report that were not first included in the House-or Senate-passed version. An earmark proposal offered by Sen. John McCain, R-Ariz., would only target appropriations earmarks. McCain told reporters today the Senate could move on earmark reform as part of lobbying reform or separately. He said he could support extending earmark restrictions to authorization bills, as Lott and Feinstein propose, but his prime concern is restricting appropriations earmarks. "If you want to throw in earmarks elsewhere, that's fine with me. But that's not where the problem is," he said. McCain said he supports the presidential line-item veto -- as some senators have proposed as a curb on earmarks -- but said the Supreme Court's 1998 ruling against it makes that a long-term solution. Lott also rejected the idea of an outside commission to oversee and investigate lobbying abuses, which Sen. Barack Obama, D-Ill., has proposed. "We don't need more layers of bureaucracy and redundancy," Lott said. "We need to have what we have work." Lott said if the ethics process does not work, that is where changes are needed. Obama, who introduced a commission proposal last week, said separately today he planned to meet this week with Lott and Rules ranking member Christopher Dodd, D-Conn., to discuss the idea. "That's part of what I want to talk to Dodd and Lott about," Obama said. "I've got to get a sense of how open they are to a proposal like that." -- by Mark Wegner
TRADE
Portman Issues Sharp Warning Over China Trade Practices
Trade Representative Portman today slammed China's trade practices, saying Chinese rules violations imperil the Sino-U.S. trading relationship. But in unveiling a new "top-to-bottom review" of China's trade practices, Portman announced no specific new enforcement actions, instead brandishing threats of World Trade Organization cases in disputes over intellectual property rights and auto parts, and establishing a new China Enforcement Task Force to be headed by its own chief counsel. "Overall, our U.S.-China trade relationship today lacks equity, durability, and balance in the opportunities it provides," Portman said. "This disparity is due in part to China's failure to honor certain commitments, including its failure to enforce intellectual property rights, its protection and support for certain domestic industries, and its refusal to fulfill certain market opening commitments." Portman said his questioning of the "durability" of the relationship was in part based on the sharp political reaction China's practices were inciting in the United States and partly based on economic concerns stemming from the "imbalances" in the relationship. But Portman stopped well short of calling for the United States to back off from its relationship with China, saying that the United States instead must expand its access to the Chinese market. He said efforts afoot on Capitol Hill to revoke China's permanent normal trade relations status would be counterproductive and could spur the Chinese to retaliate by curling back U.S. rights in China. And he said that while a portion of the trade deficit with China was attributable to unfairness, much of it is due to macroeconomic factors -- such as the low U.S. and high Chinese savings rates and U.S. economic growth -- that are beyond the scope of trade issues. Portman said he hoped Congress would use the report as a guide for legislation -- which he acknowledged was likely -- saying that it gives lawmakers a sense of both the problems and the benefits of trade with China. Portman indicated that, in addition to the new China counsel at USTR, he will also appoint someone "on the ground" in China to address unfair Chinese trading practices. Portman also will seek to increase coordination with other U.S. trading partners on China trade issues that are also of concern to them, such as intellectual property rights. The European Union is cooperating with the United States on the auto parts issue, Portman said. Portman hinted the United States had set a deadline in the dispute, and said he hoped for a resolution before the next meeting of the U.S.-China Joint Commission on Commerce and Trade, which he announced will be April 11. A senior U.S. trade official said the United States is currently preparing a WTO case on the matter that could be filed if talks fail. The official also said a U.S. delegation will travel to China at the end of this month to try to elicit information about China's enforcement of its intellectual property laws. -- by Keith Koffler
ENVIRONMENT
Dems Ask Why Oil Companies Receiving Royalty Relief
Senate Democrats are calling for lawmakers to revisit how the federal government collects royalties from oil and gas companies that drill on federal property. Sens. Maria Cantwell, D-Wash., and Ron Wyden, D-Ore., both members of the Energy and Natural Resources Committee, sent a letter today to Energy and Natural Resources Chairman Domenici asking for hearings in part because of language in President Bush's FY07 Interior Department budget request that would allow companies to produce roughly $65 billion worth of oil and natural gas from federal lands over the next five years without paying royalties. These royalties, if collected, would amount to about $7 billion. The relief from federal royalty payments stems from rules initiated in 1996 when energy prices were significantly lower and there was an impetus to create incentives for production in the deep areas of the Gulf of Mexico. Cantwell, who is leading Democratic efforts on energy issues, and Wyden are drafting legislation aimed at modifying royalty relief rules. "Given oil and natural gas prices that are expected to hover near record levels for the foreseeable future, we question whether royalty relief for these companies is necessary or appropriate in the current fiscal environment," according to the Democrats' letter. Cantwell and Wyden say hearings will help clarify the Interior Department's justification for not collecting some royalties; the extent of the department's legal authority in setting royalty "price thresholds"; rules allowing oil companies to claim different profits when reporting to different federal agencies; and "whether the billions in federal revenues lost under the existing system would accrue any demonstrable benefits for American consumers -- or simply further pad the profit margins of large oil and gas companies." Sen. John Kerry, D-Mass., will offer a nonbinding Sense of the Senate resolution today asking lawmakers to look at possible changes in the federal royality relief and collection program. Domenici said it is too early for Congress to consider changing the federal oil and gas royalty relief program but "if money is owed, the money is going to be paid. I think the United States government should proceed and get this question answered." Domenici added, "We will put [the Interior Department] on notice today that we expect them to pursue this with diligence and keep us advised." Last month, 22 Senate Democrats, including Energy and Natural Resources ranking member Jeff Bingaman of New Mexico, requested GAO to investigate federal oil and natural gas royalty accounting and collections. GAO officials are meeting with aides Wednesday to fine tune nine specific questions Democrats posed to GAO, including whether the Interior Department has the resources to properly collect royalties, why national gas royalties have not kept up with prices and what specific changes are needed for royalty rules. -- by Darren Goode
POLITICS
Dems Reach For Star Power To Highlight Innovation Agenda
House Democrats today trumpeted movie-making legend George Lucas' endorsement of the party's innovation agenda. At a townhall-style event in the basement of the Capitol, Minority Leader Pelosi called Lucas a "major, magnificent disruptor" and held up his iconoclastic early career as a perfect example of American innovation, National Journal's Technology Daily reported. "Here is living proof that young people have always been at the forefront," Pelosi said. Lucas broke into the film industry as an outsider in the early 1970s and quickly rose to prominence through the monster box office successes of "American Graffiti" and the Star Wars series. He also started his own company, Industrial Light and Magic, to create and produce the revolutionary visual effects for his films. Lucas told the assembled group of college students that they were needed to fix the country's problems. "We tried but we screwed it up, and now it's up to you," Lucas said. "You are going to have to deal with it because it will be on your front door step." The Democratic leadership is promoting its innovation agenda that calls for increased math and science education and renewed investment in basic research and development. Education and the Workforce ranking member George Miller, D-Calif., criticized President Bush's competitiveness plan for cutting college loans and other education programs. "We're disappointed because you can't do this by robbing Peter to pay Paul," he said. Lucas said college -- at least at public universities -- should be gratis: "We need a free higher education system in this country." Majority Leader John Boehner, however, questioned the minority's plan for strengthening the country's innovation and competitiveness. He called the minority's agenda a rehash of more government spending and federal involvement in the economy. "Even Hollywood's best filmmakers can't make these 'innovation' proposals look like anything other than a recycled package of more government bureaucracy followed by higher taxes on working families." He called on Democrats to join the GOP in helping small businesses, streamlining federal bureaucracy and helping create jobs. -- by Randy Barrett
POLITICS
Fingerhut Pulls Out Of Gov. Race, Hackett Faults Leaders
Former Rep. Eric Fingerhut, D-Ohio, withdrew from the race for governor Monday, leaving Democratic Rep. Ted Strickland without major opposition in the primary, the Columbus Dispatch reported. Fingerhut said he could not muster the resources to mount a successful gubernatorial campaign. "I had set for myself some very specific benchmarks and I had not met them, and I didn't see any reasonable prospect of being able to turn that around," he said. On Jan. 31, Fingerhut showed $217,000 on hand, while Strickland reported a $2.1 million balance. Fingerhut acknowledged that Strickland's selection of 1998 Democratic gubernatorial nominee Lee Fisher of Cleveland as a running mate cut into his base of support. "I became convinced that I wasn't going to have the resources to run the kind of race I wanted to run, and I'm sure that was one of the factors," Fingerhut said. Republican Gov. Bob Taft is barred from seeking another term. Secretary of State Kenneth Blackwell and Attorney General Jim Petro are the leading candidates for the Republican nomination to succeed him. Meanwhile, Iraq War veteran Paul Hackett, who Monday ended his bid to oust Sen. Mike DeWine, R-Ohio, today blamed party leaders for pressuring him to leave the race. "I made this decision reluctantly, only after repeated requests by party leaders, as well as behind-the-scenes machinations, that were intended to hurt my campaign," he wrote on his campaign Web site. Many Democrats hoped he would seek a rematch against GOP Rep. Jean Schmidt, but he said he would not run for any other elective office. "This decision is final, and not subject to reconsideration. I told the voters from the beginning that I am not a career politician and never aspired to be -- that I was about leadership, service and commitment." Hackett's decision clears the Democratic field for Rep. Sherrod Brown, a former secretary of state. DeWine declined to comment today on Hackett's withdrawal. "What Democrats do in their own primary, I can't focus on," he said.
HILL BRIEFS o People.
The man shot by Vice President Cheney suffered a minor heart attack after birdshot moved into his heart, hospital officials said today, and he was moved back to the intensive care unit for further treatment, the Associated Press reported. Texas attorney Harry Whittington was recovering and will be monitored for seven days to make sure more bird shot does not move to other organs or other parts of his body, hospital officials said. "However, some of the birdshot appears to have moved and lodged into part of his heart in what we would say is a minor heart attack," said Peter Banko, administrator at Christus Spohn Hospital Corpus Christi-Memorial.
o Judiciary.
A federal judge ruled today that confessed al-Qaida conspirator Zacarias Moussaoui will not be in the courtroom for jury selection at his upcoming death-penalty trial, after Moussaoui again defied the judge at a pretrial hearing, the Associated Press reported. U.S. District Judge Leonie Brinkema said her main reason for holding today's hearing was to determine "how Mr. Moussaoui plans to behave ... whether you plan to remain quiet ... or whether you plan to make speeches." Moussaoui, who pleaded guilty last April to conspiring with al-Qaida to use aircraft to target U.S. buildings, then walked to the lectern and pulled out what appeared to be a handwritten speech. "You have been trying to organize my death for four years," Moussaoui told the judge. As Brinkema repeatedly tried to quiet him, Moussaoui complained that for four years she had denied him an opportunity to explain his objections to the defense lawyers. "Today is my day," he plunged on. "If I can't make sure that those people are not going to represent me I know that I am dead.'' Brinkema ruled that Moussaoui had forfeited his right to be present and will have to watch jury selection on closed circuit television from his cell at the courthouse.
o Politics.
Adam Taff, the 2002 Republican nominee in Kansas' 3rd District, was sentenced Monday to 15 months in prison for his part in a mortgage fraud involving a house partly bought with funds he illegally diverted from his campaign fund, the Kansas City Star reported. Taff bought a house from John Myers for $1.2 million by using campaign funds to secure a mortgage. Myers was sentenced to five months for his role in the scam, and both were fined $50,000. U.S. District Judge John Lungstrum said Taff had "debased the public's trust" and had been dishonest about the transaction from the beginning, even ignoring warnings from his campaign treasurer about personal use of campaign money. Taff's campaign manager resigned after discovering what had been done. Taff challenged Democratic Rep. Dennis Moore in the suburban Kansas City, Kan., district, losing to Moore 50-47 percent.
THE FINAL WORD "I think I've known Nancy her entire political life -- usually with her hand out at my front door." -- Filmmaker George Lucas, joking today about Minority Leader Pelosi and her prolific fundraising. Lucas joined Pelosi and House Democrats in the Capitol to promote the Democrats' "Innovation Agenda."
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