Appropriations Process in Full Swing as House and Senate Mark Up Bills

By Capital Thinking on Posted in Budget and Appropriations

Legislative Activity

Appropriations Process in Full Swing as House and Senate Mark Up Bills

Both the House and Senate Appropriations Committees will hold subcommittee and full committee appropriations bill markups and release 302(b) suballocations this week, even without an approved budget resolution in either chamber.

The budget process has stalled in both the House and Senate, and it seems unlikely that either chamber will get back on track. In March, the House Budget Committee approved a budget resolution that adopts the $1.07 trillion discretionary spending limit agreed to in last year’s budget deal. However, the budget resolution is currently stalled due to opposition from members of the House Freedom Caucus, who prefer the lower $1.04 trillion sequester-level spending limit. Failing to pass a budget means Republicans will not be able to use the budget reconciliation process to push policy priorities through the Senate with a simple majority vote. The budget reconciliation process is not subject to the 60-vote threshold in the Senate, but is only available if a budget resolution is adopted.

Even without a budget resolution, the House and Senate Appropriations Committees are pushing the appropriations process forward by holding markups this week. Both chambers are expected to adopt 302(b) suballocation numbers for each appropriations bill this week that are likely to follow the $1.07 trillion topline discretionary funding level.

This week, the Senate Appropriations Committee will hold subcommittee and full committee markups of the Military Construction and Veterans Affairs and the Energy and Water Development appropriations bills. On Thursday, the Committee will also release the 302(b) suballocations that will determine topline numbers for each appropriations bill. Energy and Water Development Subcommittee Chairman Lamar Alexander (R-TN) said his subcommittee will avoid contentious policy riders during the markup, and suggested those provisions should be offered on the Senate floor instead.

On, Wednesday, the House Appropriations Committee is expected to adopt 302(b) suballocations and will hold a full committee markup of the Military Construction and Veterans Affairs appropriations bill, which was marked up by the subcommittee on March 23, and subcommittee markups of the Energy and Water Development and Agriculture appropriations bills.

This Week’s Hearings:

  • Tuesday, April 12: The Senate Appropriations Committee State, Foreign Operations, and Related Programs Subcommittee will hold a hearing on causes and consequences of violent extremism and the role of foreign assistance.
  • Wednesday, April 13: The Senate Appropriations Committee Military Construction, Veterans Affairs, and Related Agencies Subcommittee will hold a markup of the Military Construction and Veterans Affairs Appropriations Act for FY 2017.
  • Wednesday, April 13: The Senate Appropriations Committee Energy and Water Development Subcommittee will hold a markup of the Energy and Water Development Appropriations Act for FY 2017.
  • Wednesday, April 13: The Senate Budget Committee will hold a hearing titled “Fixing the Broken Budget Process: Outcome Budgeting to Maximize Taxpayer Value.”
  • Wednesday, April 13: The House Appropriations Committee will hold a markup of the Military Construction and Veterans Affairs Appropriations Act for FY 2017.
  • Wednesday, April 13: The House Appropriations Committee Energy and Water Development, and Related Agencies Subcommittee will hold a markup of the Energy and Water Development Appropriations Act for FY 2017.
  • Wednesday, April 13: The House Appropriations Committee Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Subcommittee will hold a markup of the Agriculture Appropriations Act for FY 2017.
  • Thursday, April 14: The Senate Appropriations Committee will hold a markup of the Energy and Water Development Appropriations Act and the Military Construction and Veterans Affairs Appropriations Act for FY 2017.
  • Thursday, April 14: The House Appropriations Committee Defense Subcommittee will hold a closed oversight hearing of the United States Pacific Command.

Senate Appropriations Committee FY 2017 Budget Hearings

  • Tuesday, April 12: The Senate Appropriations Committee Financial Services and General Government Subcommittee will hold a hearing on the FY 2017 budget request and funding justification for the Securities and Exchange Commission and Commodity Futures Trading Commission.
  • Wednesday, April 13: The Senate Appropriations Committee Defense Subcommittee will hold a hearing on the FY 2017 budget request and funding justification for the Missile Defense Agency.

Senate Energy Bill Still To Clear Hurdles Before Floor Action; Renewables in FAA Reauthorization; Methane on the March

By Squire Patton Boggs on Posted in Energy, Environment and Natural Resources

Legislative Action

Senate Energy Policy Modernization Act

As a result of continued opposition to the Flint water funding package and an off-shore oil revenue amendment, the Senate continues to remain in a holding pattern on floor action for S. 2012, the Energy Policy Modernization Act of 2016. 

Renewables in FAA Reauthorization

The Senate prepares for a possible vote on the FAA Reauthorization bill next week, which likely will include amendments to extend tax credits to support biomass, geothermal energy, and carbon capture. 

This Week’s Hearings: 

  • On Tuesday, April 12, the Senate Environment and Public Works Committee, Subcommittee on Waste, Superfund, and Oversight Management, will hold a hearing titled “American Small Businesses’ Perspectives on Environmental Protection Agency Regulatory Actions.” The Subcommittee will hear testimony from the Oklahoma Farm Bureau Federation, among others.
  • On Wednesday, April 13, the Senate Environment and Public Works Committee will hold a hearing titled “Examining the Role of Environmental Policies on Access to Energy and Economic Opportunity.” The hearing will examine the impact of the Obama Administration’s climate policies.
  • On Wednesday, April 13, the House Committee on Agriculture will hold a hearing titled “Energy and the Rural Economy: The Impacts of Oil and Gas Production.”
  • On Wednesday, April 13, the House Energy and Commerce Committee will hold a hearing titled “Flint Water Crisis: Impacts and Lessons Learned.” The Committee will hear testimony from the Deputy Assistant Administrator of the Office of Water at the U.S. Environmental Protection Agency and the Assistant Secretary for Preparedness and Response at the U.S. Department of Health and Human Services, as well as others. During the hearing, the Committee aims to assess the ongoing drinking water crisis in Flint, Michigan, seek additional information concerning drinking water infrastructure issues, and examine public health implications caused by the crisis.
  • On Wednesday, April 13, the House Natural Resources Committee, Subcommittee on Water, Power, and Oceans, will hold a hearing titled “Empowering States and Western Water Users Through Regulatory and Administrative Reforms.”
  • On Thursday, April 14, the Senate Energy and Natural Resources Committee, Subcommittee on Public Lands, Forests, and Mining, will hold an oversight hearing to receive testimony on the Bureau of Land Management’s proposed rule, entitled “Waste Prevention, Production Subject to Royalties, and Resources Conservation.”
  • On Thursday, April 14, the House Energy and Commerce Committee, Subcommittee on Energy and Power, will hold a hearing to discuss the Ozone Standards Implementation Act of 2016 (H.R. 4775). The bill addresses implementation issues for states under the EPA’s National Ambient Air Quality Standards Program.

Regulatory Action

Methane Regulations

As we last reported, the EPA had announced its intention to begin drafting proposed rules to limit methane leaks from oil and gas drilling sites. The EPA continues to work on this rule, with Administrator Gina McCarthy stating last week that the agency needs an accurate reporting of methane emissions from entities in order to move forward with the rule. She emphasized that “The [EPA’s] information request is really a requirement for oil and gas companies to do specific testing that will allow us to understand the emissions better.” Administrator McCarthy also suggested the proposed rule may capture new sources of methane emissions, noting that “…we think there’s more information that indicates that there are some sources that we may not have yet addressed.”

House Lawmakers to Vote on Dodd-Frank, Other Financial Services Bills; Puerto Rico Remains Key Priority

By Squire Patton Boggs on Posted in Financial Services

Legislative Activity

House Lawmakers to Mark-Up, Vote Various Financial Services Bills

This week, on Wednesday, April 13, the House Financial Services Committee is set to mark-up various bills that would significantly alter the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), including legislation that would repeal the government’s orderly liquidation authority, as well as place the Consumer Financial Protection Bureau (CFPB) under the Congressional appropriations process. The following day, on Thursday, April 14, the full House is expected to take up and vote on two financial services bills: (1) H.R. 3791, which would require the Federal Reserve Board to revise the Small Bank Holding Company Policy Statement on the Assessment of Financial and Managerial Factors to raise its consolidated asset threshold from $1 billion to $5 billion; and (2) H.R. 3340, which would place both the Financial Stability Oversight Council (FSOC) and the Office of Financial Research (OFR) under the Congressional appropriations process.

Natural Resources Committee to Move Forward with Puerto Rico Fix

On Wednesday, April 13, the House Natural Resources Committee is expected to hold a hearing on a discussion draft of the “Puerto Rico Oversight, Management, and Economic Stability Act,” followed by a markup of the bill on Thursday, April 14.  Among other features, the discussion draft would create an Oversight Board that would “have the tools to comprehensively resolve Puerto Rico’s debt crisis,” including the mandate to “work with the Governor and the Legislative Assembly in the preparation of fiscal plans and budgets,” with the ultimate authority “to enact such a fiscal plan and budget if the Governor and Legislative Assembly fail to do so.” While there is generally broad consensus that lawmakers must take swift action to address the Commonwealth’s imminent fiscal crisis, there are still differences that must be resolved, as Democratic Committee members would like to see more provisions included addressing issues like Medicaid and the Earned Income Tax Credit (EITC), while certain Republicans are concerned about the breadth of the restructuring provisions.  Given that Puerto Rico has another bond payment due on May 1 – one that it is expected to be unable to make – lawmakers will need to come together quickly if they have any hope of finalizing a solution before month’s end.

Senate Banking Committee Delays Vote on Nominees

Last week, following bipartisan opposition during a planned nomination vote, Senate Banking Committee Chairman Richard Shelby (R-AL) postponed votes on several pending Obama Administration nominees. As of today, a vote on the nominees – which includes two Securities and Exchange Commission (SEC) Commissioners, as well as officials to the Treasury Department, the United States Mint, and the Federal Deposit Insurance Corporation’s Office of the Inspector General – has yet to be rescheduled.

This Week’s Hearings:

  • Tuesday, April 12: The Senate Appropriations Committee Subcommittee on Financial Services and General Government will hold a hearing titled “Hearing to Review the FY17 Budget Request for the SEC & CFTC.”
  • Wednesday, April 13: The House Financial Services Committee will mark-up the following legislation:
    • H.R. 1486, the “Taking Account of Bureaucrats’ Spending Act of 2015”;
    • An Amendment in the Nature of a Substitute to H.R. 1486; and
    • H.R. ____, To repeal title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and for other purposes
  • Wednesday, April 13: The House Natural Resources Committee will hold a hearing titled “Puerto Rico Oversight, Management, and Economic Stability Act.”
  • Thursday, April 14: The House Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises will hold a hearing titled “JOBS Act at Four: Examining Its Impact and Proposals to Further Enhance Capital Formation.”
  • Thursday, April 14: The Senate Banking, Housing, and Urban Affairs Subcommittee on Securities, Insurance, and Investment and Subcommittee on Economic Policy will hold a joint hearing titled “Examining Current Trends and Changes in the Fixed-Income Markets.”
  • Thursday, April 14: The House Natural Resources Committee will mark-up the “Puerto Rico Oversight, Management, and Economic Stability Act.”

Regulatory Activity

SEC to Hold Open Meeting, Meeting of Investor Advisory Committee

On Wednesday, April 13, the SEC will hold a meeting discuss: (1) modernizing certain business and financial disclosure requirements in Regulation S-K; and (2) business conduct standards for security-based swap dealers and major security-based swap participants.

Additionally, on Thursday, April 14, the SEC will hold a meeting of its Investor Advisory Committee to: (1) discuss a recommendation of the Investor as Purchaser subcommittee regarding mutual fund cost disclosure; (2) receive an update from the Commission’s Office of Compliance Inspections and Examinations; (3) receive subcommittee reports; (4) discuss cybersecurity and related investor protection concerns; and (5) receive reflections from the first full term of Investor Advisory Committee membership.

Zika Virus Priority Review Voucher Slated for House Floor Consideration; House Energy and Commerce Committee to Hold Hearing on the Flint Water Crisis; FTC Issues Guidelines for Health App Developers; Request for Information Regarding the Medicare Access and CHIP Reauthorization Act of 2015

By Capital Thinking on Posted in Healthcare

Legislative Activity

Zika Virus Priority Review Voucher Slated for House Floor Consideration

House Majority Leader Kevin McCarthy (R-CA) announced that S. 2512, Adding Zika Virus to the FDA Priority Review Voucher Program Act, will be considered on the floor on Monday, April 11. This bill, introduced by Al Franken (D-MN) in the Senate, amends the Federal Food, Drug, and Cosmetic Act to add Zika virus to the list of tropical diseases under the priority review voucher program, which awards a voucher to the sponsor of a new drug or biological product that is approved to prevent or treat a tropical disease. This bill was approved by the Senate on March 17, 2016.

House Energy and Commerce Committee to Hold Hearing on the Flint Water Crisis

On Wednesday, April 14, the House Committee on Energy and Commerce Subcommittee on Environment and the Economy and Subcommittee on Health will hold a hearing titled “Flint Water Crisis: Impacts and Lessons Learned.” The hearing will be an opportunity for the Committee to assess the drinking water crisis in Flint, Michigan and better understand the problems with the drinking water infrastructure and possible public health implications.  The hearing builds upon previous action taken by the House of Representatives to support the people of Flint. In February, the House of Representatives passed H.R. 4470, the Safe Drinking Water Act Improved Compliance Awareness Act, sponsored by Rep. Dan Kildee (D-MI) and Energy and Commerce Committee Chairman Fred Upton (R-MI). H.R. 4470 would ensure that a community is immediately notified of excessive lead levels in drinking water by setting forth how and when states, the Environmental Protection Agency (EPA), and public utilities communicate their findings. The bill has yet to pass the Senate.

This Week’s Hearings:

  • Wednesday, April 13: The Senate Committee on Homeland Security and Governmental Affairs will hold a hearing titled “America’s Insatiable Demand for Drugs.”
  • Wednesday, April 13: The House Committee on Energy and Commerce Subcommittee on Environment and the Economy and Subcommittee on Health will hold a hearing titled “Flint Water Crisis: Impacts and Lessons Learned.”
  • Wednesday, April 13: The House Committee on Oversight and Government Reform will hold a hearing titled “Waste and Inefficiency in the Federal Government: GAO’s 2016 Duplication Report.”
  • Wednesday, April 13: The House Committee on Veterans’ Affairs Subcommittee on Disability Assistance and Memorial Affairs will hold a hearing on ten bills. The bills being discussed include R. 3936, the Veterans Engagement Team (VET) Act; H.R. 4087, the Fair Treatment for Families of Veterans Act; H.R. 4757, To expand the eligibility of headstones, markers, and medallions furnished by the Secretary of Veterans Affairs for deceased individuals who were awarded the Medal of Honor and are buried in private cemeteries;  H.R. 4758, To amend title 38, United States Code, to authorize the award of the Presidential memorial Certificate to certain deceased members of the reserve components of the Armed Forces and certain deceased members of the Reserve Officers’ Training Corps; H.R. 4759, To amend title 38, United States Code, to authorize the Secretary of Veterans Affairs to pay costs relating to transportation of certain deceased veterans to veterans cemeteries owned by a state or tribal organization; H.R. 4782, the Veterans’ Compensation Cost-of-Living Adjustment Act of 2016; H.R. 3715, the Final Farewell Act of 2015; H.R. ___, the Medal of Honor Legacy Act; H.R.___, the Love Lives On Act of 2016; Legislation to amend title 38, United States Code, to improve the consideration of evidence by Board of Veterans’ Appeals; Legislation to amend title 38, United States Code, to pay special compensation to certain veterans with the loss or loss of use of creative organs.
  • Wednesday, April 13: The House Committee on Energy and Commerce Subcommittee on Communications and Technology will hold a hearing on seven communications bills. The bills being considered include H.R. 4111, the Rural Health Care Connectivity Act of 2015; H.R. 4167, the Kari’s Law Act of 2015; H.R. 4884, the Controlling Unchecked Reckless Ballooning (CURB) Lifeline Act of 2016; H.R. 3998, the Securing Access to Networks in Disasters (SANDY) Act; H.R. 2031, the Anti-Swatting Act of 2015; and H.R. 4889, the Kelsey Smith Act.
  • Wednesday, April 13: The Senate Committee on Indian Affairs will hold a hearing on S. 2205, the Tribal healing to Wellness Courts Act of 2015; S. 2421, To provide for the conveyance of certain property to the Tanana Tribal Council located in Tanana, Alaska, and to the Bristol Bay Area Health Corporation located in Dillingham, Alaska; S. 2564, the Dine College Act of 2016; S. 2643, the Pueblo de Cochiti Self-Governance Act; and S. 2717, the Dam Repairs and Improvements for Tribes (DRIFT) Act of 2016.
  • Wednesday, April 13: The House Committee on Ways and Means will hold a hearing titled “Tax Treatment of Health Care.”
  • Thursday, April 14: The House Committee on Veterans’ Affairs Subcommittee on Health and Subcommittee on Oversight and Investigations will hold a hearing titled “Evaluating VA IT: Scheduling Modernization Choice Consolidation.”
  • Thursday, April 14: The Senate Committee on Energy and Natural Resources will hold a hearing titled “Oversight on Options for Addressing the Continuing Lack of Reliable Emergency Medical Transportation for the Isolated Community of King Cove, Alaska.”
  • Thursday, April 14: The Senate Committee on Homeland Security and Governmental Affairs will hold a hearing titled “The Federal Perspective on the State of Our Nation’s Biodefense.”
  • Thursday, April 14: The House Committee on Education and the Workforce Subcommittee on Health, Employment, Labor, and Pensions will hold a hearing titled “Innovations in Health Care: Exploring Free-Market Solutions for a Healthy Workforce.”
  • Thursday, April 14: The House Committee on Oversight and Government Reform Subcommittee on National Security will hold a hearing titled “Connecting Veterans with PTSD with Service Dogs.”
  • Friday, April 15: The House Committee on Energy and Commerce Subcommittee on Oversight and Investigations will hold a hearing titled “Unlawful Reinsurance Payments: CMS Diverting $3.5 Billion from Taxpayers to Pay Insurance Companies.”
  • Friday, April 15: The Senate Committee on Homeland Security and Governmental Affairs will hold a field hearing titled “Border Security and America’s Heroin Epidemic: The Impact of the Trafficking and Abuse of Heroin and Prescription Opioids in Wisconsin.”

Regulatory Activity

FTC Issues Guidelines for Health App Developers

On Tuesday, April 5, the Federal Trade Commission (FTC) issued an online tool for app developers that clarifies the specific laws and regulations that apply to their software.  The FTC guidance was developed in coordination with the Food and Drug Administration (FDA), the Office of the National Coordinator for Health Information Technology (ONC), and the Office for Civil Rights (OCR) at the U.S. Department of Health and Human Services (HHS). The guidance asks app developers questions about the apps’ functionality and data collection capability and uses the answers to provide them necessary information from the Health Insurance Portability and Accountability Act (HIPAA) as well as FDA and FTC laws and rules.

Request for Information Regarding the Medicare Access and CHIP Reauthorization Act of 2015

On Thursday, April 5, The Office of the National Coordinator for Health Information Technology (ONC) released a Request for Information (RFI) for the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). MACRA detailed a national objective to achieve widespread exchange of health information through interoperable certified electronic health record (EHR) technology nationwide by December 31, 2018. ONC issued a RFI to solicit input on the following topics: (1) measurement population and key components of interoperability that should be measured; (2) current data sources and potential metrics that address section 106(b)(1) of MACRA; and (3) other data sources ONC should consider with respect to section 106(b)(1) of MACRA or interoperability measurement more broadly. Written or electronic comments must be received no later than 5 p.m. on Friday, June 3, 2016.

Senate Judiciary Committee Confirms Hearing on EB-5 Target Employment Areas; Brussels Attacks Prompt Security Reassessments in US, Could Increase Summer Travel Delays

By Clark Ervin and Ludmilla Kasulke on Posted in Uncategorized

Legislative Activity

Senate Judiciary Committee Confirms Hearing on EB-5 Target Employment Areas

The Senate Judiciary Committee will hold its second hearing of the year examining the EB-5 Regional Center Program.  This program is designed to bolster the U.S. economy by incentivizing investment from foreigners in exchange for legal permanent residence.  The FY 2016 omnibus appropriations measure passed by Congress at the end of 2015 extended the EB-5 Regional Center Program for the remainder of the Fiscal Year.  The Wednesday hearing will include two separate panels.  First, Committee members will hear from Congressmen Bob Goodlatte (R-VA) and John Conyers, Jr., (D-MI), Chairman and Ranking Member, respectively, of the House Judiciary Committee.  The second panel will include four private sector witnesses:  Daniel Healy, Chief Executive Officer, Cavitas Capital Group; Timothy Whipple, Former General Counsel, Iowa Economic Development Authority; Peter Joseph, Invest In The USA; and Gary Friedland, New York University Stern School Of Business.

Lawmakers are currently debating whether to overhaul the program in light of what some argue is a need to better protect against potential abuse, refocus investment in areas that need it most, and increase the minimum levels of funds required to participate in the program.  Projects slated for Targeted Employment Areas require a lower investment amount, $500,000, as compared to $1 million elsewhere.  These rural or high unemployment areas must meet specific criteria to qualify, but, given the lower threshold, can serve as attractive candidates for foreign investment.  During a February 2 hearing, Senate Judiciary Committee Chairman Charles Grassley (R-IA) expressed his concern that the EB-5 Program lacks sufficient oversight and suffers from corruption and serious weaknesses, potentially implicating national security.  Chairman Grassley believes the program must be reformed before it can be reauthorized beyond September 30, an issue that will certainly be debated by lawmakers over the months to come.

This Week’s Hearings:

  • Tuesday, April 12: The Senate Homeland Security and Governmental Affairs Subcommittee on Federal Spending Oversight and Emergency Management will hold a hearing titled “FEMA: Assessing Progress, Performance, and Preparedness.”
  • Wednesday, April 13: The Senate Judiciary Committee will hold a hearing titled “The Distortion of EB-5 Targeted Employment Areas: Time to End the Abuse.”
  • Thursday, April 14: The Senate Homeland Security and Governmental Affairs Committee will hold a hearing titled “The Federal Perspective on the State of Our Nation’s Biodefense.”
  • Thursday, April 14: The Senate Judiciary Committee will hold a meeting to consider legislation and nominations.
  • Tuesday, April 19: The House Homeland Security Subcommittee on Border and Maritime Security will hold a hearing titled “Keeping Pace with Trade, Travel, and Security: How Does CBP Prioritize and Improve Staffing and Infrastructure.”

Executive Branch Activity

Brussels Attacks Prompt Security Reassessments in US, Could Increase Summer Travel Delays

Americans can expect longer security lines going into the summer holiday season following the recent Brussels attacks.  Vice Admiral Peter Neffenger, Administrator of the Transportation Security Administration (TSA), confirmed that U.S. security officials are reassessing current procedures and indicated summer travelers could see an increased security presence in airports and an uptick in random searches.  In remarks to reporters on Friday, Neffenger explained that his agency would be increasing bomb-sniffing dogs, random bag checks, and security patrols (including of public areas).  He warned travelers to arrive at airports early to allow extra time for security lines.  Neffenger was arriving on a flight to Brussels and taxiing to the gate when the bombs went off at the departures area of the airport.

The Federal Aviation Administration reauthorization bill currently under debate in the Senate includes provisions aimed at tightening airport security.  The chamber passed amendments increasing airport worker vetting, expanding TSA “viper” teams that conduct searches of suspicious individuals, and doubling the number of TSA bomb-sniffing dogs.

Washington Hosts the Annual World Bank/IMF Spring Meeting, While the Obama Administration Examines the Global Steel Crisis; Congress Will Hold Hearings Focused on ISIL and the U.N. Peacekeeping Forces

By Squire Patton Boggs on Posted in Defense & Homeland Security, US Executive Branch

The Obama Administration will focus this week on the global steel crisis, holding a public hearing on the topic.  Washington will also host the annual World Bank/International Monetary Fund (IMF) Spring Meeting.

Both chambers of Congress will be in session this week.  A House subcommittee will consider a Miscellaneous Tariff Bill (MTB) reform measure on Thursday.  There will be separate Senate and House hearings this week focused on ending sexual abuse in United Nations Peacekeeping Forces and on countering the spread of ISIL/ISIS.

World Bank/IMF Spring Meeting

Delegations from multiple countries will be in Washington to attend the annual Spring Meeting, discussing economic development issues.

Global Steel Crisis

The Office of the U.S. Trade Representative (USTR) and the Commerce Department will hold a joint hearing on 12 April that will focus on global steel overcapacity, just ahead of the OECD steel committee meeting next week on the same topic.

TPP Developments – Trying to Build Support

The Obama Administration is responding to the increased anti-trade rhetoric emanating from the U.S. presidential campaigns by having U.S. officials discuss the advantages of the Trans-Pacific Partnership (TPP) deal around the country.

TTIP Developments – New York Round Ahead

U.S. Trade Representative Michael Froman travels to London this week for Transatlantic Trade and Investment Partnership (TTIP) discussions with EU Trade Commissioner Cecilia Malmström ahead of the next round of TTIP negotiations in New York City the week of 25 April.

House MTB Hearing This Week

House Ways and Means Trade Subcommittee Chair Dave Reichert (R-Washington) announced last week that the subcommittee will hold hearing this Thursday on reform legislation to revise the process for selecting tariff waivers for inclusion in the MTB package.  Senate Finance Committee Chair Orrin Hatch (R-Utah) said last week that he supports House Ways and Means Committee Chair Kevin Brady’s (R-Texas) MTB reform proposal.

Panama Papers Controversy

Last Monday, the International Consortium of Investigative Journalist (ICIJ) released summaries of its analysis of a massive leak of papers from a law firm – known as the Panama Papers – that is causing shockwaves, with powerful political and business leaders facing questions about their ties to shell companies and tax havens.

Congressional Hearings This Week:

  • On Tuesday, 12 April, the Senate Foreign Relations Committee is scheduled to hold a hearing titled, “The Spread of ISIS and Transnational Terrorism.”
  • On Tuesday, 12 April, the Senate Appropriations Subcommittee on State-Foreign Operations is scheduled to hold a hearing to examine the causes and consequences of violent extremism and the role of foreign assistance.
  • On Wednesday, 13 April, the Senate Judiciary Committee is scheduled to hold a hearing titled, “The Distortion of EB-5 Targeted Employment Areas: Time to End the Abuse.”
  • On Wednesday, 13 April, the Senate Appropriations Subcommittee on Department of Defense is scheduled to hold a hearing titled, “Hearings to examine proposed budget estimates and justification for fiscal year 2017 for the Missile Defense Agency.”
  • On Wednesday, 13 April, the House Foreign Affairs Subcommittee on the Middle East and North Africa is scheduled to hold a hearing titled, “Assessing President Obama’s Middle East and North Africa FY 2017 Budget Request.”
  • On Wednesday, 13 April, the House Foreign Affairs Subcommittee on Global Human Rights and International Organizations is scheduled to hold a hearing titled, “Peacekeepers: Allegations of Abuse and Absence of Accountability at the United Nations.”
  • On Wednesday, 13 April, the Senate Foreign Relations Committee is scheduled to hold a hearing titled, “Do No Harm: Ending Sexual Abuse in United Nations Peacekeeping.”
  • On Wednesday, 13 April, the House Foreign Affairs Subcommittee on Asia and the Pacific is scheduled to hold a hearing titled, “Countering Extremism and the Threat of ISIS in Southeast Asia.”
  • On Wednesday, 13 April, the Senate Armed Services Subcommittee on Seapower is scheduled to hold a hearing titled, “Marine Corps Ground Modernization.”
  • On Wednesday, 13 April, the Senate Armed Services Subcommittee on Strategic Forces is scheduled to hold a hearing titled, “Ballistic Missile Defense Policies and Programs.”
  • On Wednesday, 13 April, the House Armed Services Subcommittee on Seapower and Projection Forces is scheduled to hold a hearing titled, “Building the Fleet We Need: A Look at Navy Force Structure.”
  • On Thursday, 14 April, the House Appropriations Subcommittee on Defense is scheduled to hold a closed hearing titled, “Oversight Hearing – United States Pacific Command.”
  • On Thursday, 14 April, the House Ways and Means Subcommittee on Trade is scheduled to hold a Trade Organizational Meeting.
  • On Thursday, 14 April, the House Armed Services Subcommittee on Strategic Forces is scheduled to hold a hearing titled, “The Missile Defeat Posture and Strategy of the United States—The FY17 President’s Budget Request.”
  • On Friday, 15 April, the House Armed Services Subcommittee on Oversight and Investigations is scheduled to hold a hearing titled, “Evaluating DOD Investments: Case Studies in Afghanistan Initiatives and U.S. Weapons Sustainment.”

Looking Ahead

Washington is expected to focus on the following upcoming events:

  • 15-17 April: The World Bank/IMF Spring Meeting in Washington
  • Week of 25 April: TTIP negotiations in New York City
  • 25-29 April: President Obama attends the Hannover Messe in Germany
  • [TBA] May: President Obama travels to Vietnam and Laos
  • 13 May: President Obama hosts the U.S.-Nordic Leaders Summit
  • 18 May: Due date for release of the USITC report on the TPP deal
  • 8-9 July: NATO Summit in Warsaw, Poland

Tax-Writers to Examine Tax Reform Proposals, May Move on Tax Extenders

By Squire Patton Boggs on Posted in Tax

Legislative Activity

House Tax-Writers Continue Moving Forward with Work on Tax Reform

This week, on Wednesday, April 13, the House Ways and Means Subcommittee on Tax Policy will hold a hearing to continue the Committee’s efforts to examine “fundamental tax reform proposals.” In March, Ways and Means Committee members examined legislative proposals related to cash-flow and consumption-based approaches to taxation.

This week’s hearing come as both Tax Policy Subcommittee Chairman Charles Boustany (R-LA) and full Committee Chairman Kevin Brady (R-TX) continue their work on international tax reform. At the same time, Senate Finance Committee Chairman Orrin Hatch (R-UT) is working to refine his “corporate integration” proposal, which appears to be delayed beyond original estimates (which took into account the initial delay for scoring and structuring of the bill). Note that both of these efforts come as Representative Bob Goodlatte’s (R-VA) legislation, H.R. 27, the Tax Code Termination Act – which would abolish the Internal Revenue Code by December 31, 2019, and require Congress to approve a new federal tax system by July of that same year – is gaining traction (the bill presently has 129 co-sponsors). Despite increased pressure for reform, however, it is unlikely that any tax reform efforts will be finalized prior to 2017.

FAA Reauthorization May Provide Vehicle for Tax Extenders

With the Senate expected to move forward with its Federal Aviation Administration (FAA) reauthorization bill this week, the final holdup appears to be the bill’s tax title, which may well be a vehicle for tax extenders. In particular, Senate Finance Committee Ranking Member Ron Wyden (D-OR), among others, is pressing for the inclusion of provisions that would extend several energy tax credits (geothermal, fuel cells, small wind and other renewable technologies) not fully addressed in last year’s omnibus spending bill. Though the tax title has not yet been made public, its inclusion likely opens the door – much to the chagrin of Chairman Brady, who had hoped to save the extenders debate for next year – for additional jockeying to include other tax extenders, which were not made permanent in last year’s package. While it is too soon to know what the ultimate outcome will be, the FAA’s current authorization is set to expire in mid-July, leaving only three months for lawmakers to resolve any remaining differences between the competing approaches.

This Week’s Hearings:

  • Tuesday, April 12: The Senate Finance Committee will hold a hearing titled “Cybersecurity and Protecting Taxpayer Information.”
  • Wednesday, April 13: The House Ways and Means Subcommittee on Tax Policy will hold a hearing titled “Fundamental Tax Reform Proposals.”
  • Wednesday, April 13: The House Small Business Subcommittee on Economic Growth, Tax and Capital Access will hold a hearing titled “Keep It Simple: Small Business Tax Simplification and Reform, Main Street Speaks.”
  • Wednesday, April 13: The House Small Business Committee will hold a hearing titled “Keep It Simple: Small Business Tax Simplification and Reform, the Commissioner Responds.”
  • Thursday, April 14: The House Ways and Means Subcommittee on Trade will hold a hearing titled “The Miscellaneous Tariff Bill: Helping U.S. Manufacturers through Tax Cuts.”
  • Thursday, April 14: The House Ways and Means Committee will hold a hearing titled “Tax Treatment of Health Care.”
  • Thursday, April 14: The House Science, Space, and Technology Subcommittee on Research and Technology will hold a hearing titled “Can the IRS Protect Taxpayers’ Personal Information?”
  • Thursday, April 14: The House Small Business Committee will hold a hearing titled “Regulation: The Hidden Small Business Tax.”

Regulatory Activity

Treasury Moves Forward with Anti-Inversion Regulations

On Monday, April 4, the Department of the Treasury released its highly-anticipated next round of regulations targeting corporate inversion transactions, which include proposed “earnings stripping” regulations that are not limited solely to inverted companies. The regulation package also includes regulations implementing the prior inversion guidance outlined in Notice 2015-79 and Notice 2014-52, as well as new provisions that were not part of those Notices.

Despite the issuance of these new regulations, Treasury Secretary Jack Lew again acknowledged that the regulations alone are not enough to fully stop corporate inversions and urged Congress to take legislative action on the matter. There remains a clear divide between Congressional Democrats and Republicans on the next course of action, however, as Democrats remain staunchly committed to taking further action to curb corporate inversions, while Republicans are focused on using overall tax reform as the way to address the inversion issue.

IRS to Hold Committee Meetings

This week, the Internal Revenue Service (IRS) will hold two meetings to address improving customer service at the agency. Specifically, on Wednesday, April 13, the IRS will hold a meeting of its Taxpayer Advocacy Panel Taxpayer Assistance Center Improvements Project Committee, followed by a meeting of its Taxpayer Advocacy Panel Tax Forms and Publications Project Committee on Thursday, April 14.

House Communications Subcommittee to Examine Seven Communications Bills

By Squire Patton Boggs on Posted in Technology and Communications

Legislative Activity

House Subcommittee to Examine Seven Communications Bills

The Subcommittee on Communications and Technology (Communications Subcommittee) of the House Committee on Energy and Commerce (House Commerce Committee) will hold a legislative hearing on April 13 during which it will review seven communications-related bills. The following legislation will be considered during the hearing:

  • H.R.2031, the Anti-Swatting Act of 2015: a bill authored by Rep. Eliot Engel (D-NY) and previously discussed here that would enhance penalties for “swatting” which occurs when individuals use false or misleading caller identification information to trigger a response by law enforcement.
  • H.R.3998, the Securing Access to Networks in Disasters Act (SANDy Act): legislation authored by House Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ) and introduced in response to Hurricane Sandy that would require mobile service providers to ensure that consumers have access to networks during disasters and also require the Federal Communications Commission (FCC) and the Government Accountability Office (GAO) to examine the resiliency of networks during such disasters.
  • H.R.4190, the Spectrum Challenge Prize of 2015: a bill authored by Rep. Doris Matsui (D-CA) that proposes to create a prize competition through the National Telecommunications & Information Administration (NTIA) that could award up to $5 million to participants who develop innovative and cost-effective solutions to maximize spectrum efficiency.
  • H.R.4111, the Rural Healthcare Connectivity Act of 2015: a bill authored by Rep. Leonard Lance (R-NJ) that would allow skilled nursing facilities to apply for support from the Universal Service Fund’s Rural Health Care Program (RHCP).
  • H.R.4167, Kari’s Law Act of 2015: legislation authored by Rep. Louie Gohmert (R-TX) and previously discussed here that would require multi-line telephone systems, such as those found in hotels, to maintain default configurations to allow users to directly initiate a 911 call without dialing any additional digits, codes, or prefixes.
  • H.R.4884, the Controlling the Unchecked and Reckless Ballooning of Lifeline (CURB) Act of 2016: a bill authored by Rep. Austin Scott (R-GA) that would reform the FCC’s Lifeline program by capping the fund at $1.5 billion, prohibiting the use of the subsidy for devices, and phasing out the subsidy for voice only mobile service. This bill was introduced shortly before the FCC’s adoption of a new Lifeline modernization order at its March 31, 2016 Open Meeting.
  • H.R.4889, the Kelsey Smith Act of 2016: legislation authored by Rep. Kevin Yoder (R-KS) that would require telecommunications carriers to share call location information with law enforcement in emergency situations.

Communications Subcommittee Chairman Greg Walden (R-OR) stated in a press release that consideration of these seven bills “will advance [the Subcommittee’s] efforts on . . . public safety and a more accountable FCC.” Witnesses have not yet been announced. The hearing will be webcast and available here.

This Week’s Hearings:

  • Wednesday, April 13: The Communications Subcommittee of the House Commerce Committee will hold a hearing titled “Legislative Hearing on Seven Communications Bills.”

Regulatory Activity

FCC Announces Tentative Agenda for April 28 Open Meeting

The FCC has announced that the following items are tentatively on the agenda for the FCC’s April 28 Open Meeting:

  • Transition from TTY to Real-Time Text Technology: The FCC will consider a Notice of Proposed Rulemaking that “seeks comment on proposals to support real-time text communications over Internet Protocol communications networks, to improve the accessibility of these networks for consumers who are deaf, hard of hearing, deaf-blind, and speech disabled.”
  • Business Data Services (Special Access Services): The FCC will consider a “Tariff Investigation Order and a Further Notice of Proposed Rulemaking proposing a new regulatory framework for the provision of business data services.”

FCC Chairman Tom Wheeler posted to the FCC Blog on April 8 discussing these items. The FCC’s Open Meeting is scheduled to commence on April 28 at 10:30 AM in the Commission Meeting Room of the FCC’s headquarters at 445 12th Street SW, Washington, D.C.

FCC Modernizes Lifeline Program to Make Broadband More Accessible for Low-Income Americans

On March 31, the FCC voted to modernize the Lifeline program to allow low-income consumers to use the $9.25 per month household subsidy to help with the cost of Internet access. Since 1985, Lifeline—one of several programs administered under the Universal Service Fund—has been used to subsidize telephone service for low income Americans, but as the Commission recently found, 43% of the country’s poorest households cannot afford to purchase broadband service. In an effort to “help close this digital divide,” and building on the reforms most recently adopted in 2012, the recent Order will “support stand-alone broadband service as well as bundled voice and data service packages,” according to a News Release. To help prevent the fraud, waste, and abuse that has previously plagued the Lifeline program, and to “remove the burden of eligibility screening,” the new rules establish an “independent National Eligibility Verifier to confirm subscriber eligibility.” The Order has yet to be released, but according to the News Release, among other things the Order “allows Lifeline support for stand-alone mobile or fixed broadband Internet access service, as well as bundles including fixed or mobile voice and broadband; “[p]hases in mobile broadband requirement over five years;” “and “[s]ets [a] budget of $2.25 billion, indexed to inflation, sufficient to allow for increased participation generated by support for broadband service.” 

FCC Releases Proposed Privacy Protections for Broadband Customers

On April 1, the FCC released a Notice of Proposed Rulemaking (NPRM) seeking comment on a proposal to apply “the traditional privacy requirements of the Communications Act to the most significant communications technology of today: broadband Internet access service.” Specifically, in the NPRM, the FCC proposes a regulatory framework for the data security and privacy practices of Internet Service Providers (ISPs), stating that broadband consumers “must be able to protect their privacy” and that “ISPs are the most important and extensive conduits of consumer information.”

FCC Issues $51 Million Fine to Total Call Mobile for Allegedly Enrolling Duplicate, Ineligible Customers in Lifeline Program

On April 7, the FCC released a Notice of Apparent Liability for Forfeiture and Order (NAL & O) alleging that between 2013 and 2016, Total Call Mobile, Inc. (TCM) “received millions of dollars in improper reimbursements form the Universal Service Fund . . . for duplicate and ineligible customers” in the Lifeline program. Lifeline is a government subsidy program that provides discounted phone service to low-income consumers. According to an FCC News Release, TCM requested and received an estimated $9.7 million in “improper payments” despite “repeated and explicit warnings from its own employees . . . that company sales agents were engaged in widespread enrollment fraud.” The FCC’s investigation found that TCM enrolled duplicate Lifeline consumers by enrolling a consumer more than once while “making slight changes to the consumer’s identifying information” in subsequent enrollments.” The investigation also found that TCM enrolled ineligible customers, “typically through the use of Supplemental Nutrition Assistance Program” cards, which “on their face do not bear any identifying participant information.” The FCC proposes a forfeiture of $51 million for TCM in the NAL & O.

FCC Seeks Comment on Ways to Facilitate Earthquake-Related Emergency Alerts

On April 8, the FCC issued a Public Notice seeking comment on “all regulatory and statutory changes that would be necessary to ensure that earthquake-related emergency alerts using the Integrated Public Alert and Warning System [(IPAWS)] and other associated alerting systems can be delivered to and received by the public in fewer than 3 seconds.” The FCC is required to submit a report to Congress on this issue by September 18 under the Consolidated Appropriations Act of 2016, according to the Public Notice. IPAWS is “the nation’s federal alert and warning system,” and it “receives alerts from state, local, and territorial alerting agencies and aggregates them for dissemination over the Wireless Emergency Alert (WEA) system and the Emergency Alert System (EAS),” according to the Public Notice. In particular, the FCC is seeking comment on “technical aspects of IPAWS and its associated alerting systems,” including “an analysis of signals, cell phone protocols, geographic targeting, and limitations on message length and content, as well as similar parameters associated with the dissemination of alerts by non-wireless providers.”

Senate to Continue Consideration of FAA Reauthorization Act

By Capital Thinking on Posted in Uncategorized

Legislative Activity

Senate to Continue Consideration of FAA Reauthorization Act

On Monday, the Senate will resume floor consideration of the Federal Aviation Administration (FAA) Reauthorization Act of 2016. Over 100 amendments to the bill have been filed, but it is unclear how many will be offered on the floor this week. Additionally, Senate Leadership and the Finance Committee Chairman and Ranking Member are working on a revenue title that will likely include extensions to several renewable energy tax credits, which could impact the bill’s prospects in the House. Aimed at avoiding a year-end tax extenders debate, the original extension bill introduced by House Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) would have extended aviation-related revenue provisions into FY 2017.

The Senate FAA reauthorization bill avoids the contentious air traffic control (ATC) reforms included in the House’s Aviation Innovation Reform and Reauthorization (AIRR) Act. The Senate bill would also only reauthorize FAA programs through September 2017, while the AIRR Act would reauthorize those programs through September 2022. Both bills include numerous provisions to hasten the integration of unmanned aircraft systems (drones), reform the certification process, and enhance aviation safety.

The current short-term extension authorizes FAA programs through July 15, 2016, providing Congress just over three months to reach an agreement on a long-term bill. Due to the shortened legislative schedule and presidential election-year politics, it is unlikely Congress would be able to pass a long-term bill this term if they have not done so by July 15.

Last Thursday, the Senate approved two security-related amendments and another package of five amendments. The Senate also voted down an amendment directing FAA to regulate airplane seat sizes, offered by Senator Chuck Schumer (D-NY).

Last week, the Senate approved the following amendments:

  • Thune-Nelson #3512 – strengthens airport worker vetting, expands the Transportation Security Administration’s (TSA) PreCheck program, doubles the number of TSA special security teams that include bomb-sniffing dogs, and permits TSA to donate unused equipment to overseas airports that operate flights to the United States.
  • Heinrich #3482 – expands the number of Visible Intermodal Prevention and Response (VIPR) teams to enhance the security presences in pre-screening airport areas and other transportation facilities, increases preparedness for active shooter incidents, and makes homeland security grant funding for states available for use in non-secure areas of airports and surface transportation facilities.
  • Casey-Toomey #3458 – requires installation of secondary cockpit barriers on all aircraft manufactured for delivery to a U.S. passenger carrier.
  • Heller #3495 – makes FAA unmanned aircraft systems (UAS) occupations subject to veterans preferences.
  • Tester #3505 – requires a GAO study of the universal deployment of advanced imagine technologies.
  • Collins #3508 – requires FAA to identify the process by which it analyzes the safety hazards associated with elimination of the contract weather observer program, and to prohibit FAA from discontinuing the program before October 1, 2017.
  • Wyden #3499 – requires FAA to review heads-up guidance system displays.

This Week’s Hearings:      

  • Wednesday, April 13: The House Oversight and Government Reform Committee Transportation and Public Assets Subcommittee will hold a hearing titled “Examining the Safety and Service of D.C. Metro.”
  • Wednesday, April 13: The House Transportation and Infrastructure Committee Highways and Transit Subcommittee will hold a roundtable policy discussion on the implementation of Title V of the Fixing America’s Surface Transportation (FAST) Act.
  • Wednesday, April 13: The Senate Appropriations Committee Military Construction, Veterans Affairs, and Related Agencies Subcommittee will hold a markup of the Military Construction and Veterans Affairs Appropriations Act for FY 2017.
  • Wednesday, April 13: The Senate Appropriations Committee Energy and Water Development Subcommittee will hold a markup of the Energy and Water Development Appropriations Act for FY 2017.
  • Wednesday, April 13: The House Appropriations Committee will hold a markup of the Military Construction and Veterans Affairs Appropriations Act for FY 2017.
  • Wednesday, April 13: The House Appropriations Committee Energy and Water Development, and Related Agencies Subcommittee will hold a markup of the Energy and Water Development Appropriations Act for FY 2017.
  • Wednesday, April 13: The House Appropriations Committee Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Subcommittee will hold a markup of the Agriculture Appropriations Act for FY 2017.
  • Thursday, April 14: The House Energy and Commerce Committee Commerce, Manufacturing, and Trade Subcommittee will hold a hearing titled “Oversight of the National Highway Traffic Safety Administration.”
  • Thursday, April 14: The Senate Appropriations Committee will hold a markup of the Energy and Water Development Appropriations Act and the Military Construction and Veterans Affairs Appropriations Act for FY 2017.
  • Thursday, April 14: The Senate Energy and Natural Resources Committee will hold a hearing on oversight of options for addressing the continuing lack of reliable emergency transportation for the isolated community of King Cove, Alaska.

Senate Takes Up Trade Secrets Bill; House Not in Session

By Squire Patton Boggs on Posted in Uncategorized

Senate Legislative Activity

The Senate will convene on Monday, April 4, at 3:00pm. Following any Leader remarks, the Senate will be in a period of morning business until 5:00pm, with Senators permitted to speak up to 10 minutes each. At 5:00pm, the Senate will proceed to the consideration of Calendar #355, S.1890, Defend Trade Secrets Act, with 30 minutes of debate equally divided. Upon the use or yielding back of time, the Committee-reported substitute amendment will be agreed to and the Senate will vote on passage of the bill, as amended.

House Legislative Activity

The House is not in session this week, but is scheduled to return on Tuesday, April 12.

Senate to Consider Nomination for Education Secretary; House Takes Up Energy and Commerce Bills

By Squire Patton Boggs on Posted in Uncategorized

Senate Legislative Activity

The Senate will convene on Monday, March 14, at 3:00pm. Following any Leader remarks, the Senate will be in a period of morning business until 4:00pm, with Senators permitted to speak up to 10 minutes each. At 4:00pm, the Senate will enter into Executive Session to consider the nomination of Executive Calendar #476, John B. King, of New York, to be Secretary of Education. There will be 90 minutes of debate, with time to be equally divided. At 5:30pm, the Senate will hold a roll call vote on Mr. King’s nomination.

House Legislative Activity

On Monday, March 14, the House will meet at 12:00pm for morning hour and at 2:00pm for legislative business, with votes postponed until 6:30pm. The following legislation will be considered under suspension of the rules:

  1. H.R. 2984 – Fair RATES Act;
  2. H.R. 1268 – Energy Efficient Government Technology Act, as amended;
  3. H.R. 4427 – To amend section 203 of the Federal Power Act, as amended;
  4. H.R. 2080 – To reinstate and extend the deadline for commencement of construction of a hydroelectric project involving Clark Canyon Dam;
  5. H.R. 2081 – To extend the deadline for commencement of construction of a hydroelectric project involving the Gibson Dam;
  6. H.R. 3447 – To extend the deadline for commencement of construction of a hydroelectric project, as amended;
  7. H.R. 4416 – To extend the deadline for commencement of construction of a hydroelectric project;
  8. H.R. 4434 – To extend the deadline for commencement of construction of a hydroelectric project;
  9. H.R. 4411 – To extend the deadline for commencement of construction of a hydroelectric project;
  10. H.R. 4412 – To extend the deadline for commencement of construction of a hydroelectric project;
  11. H. Con. Res. 121 – Expressing the sense of the Congress condemning the gross violations of international law amounting to war crimes and crimes against humanity by the Government of Syria, its allies, and other parties to the conflict in Syria, and asking the President to direct his Ambassador at the United Nations to promote the establishment of a war crimes tribunal where these crimes could be addressed, as amended;
  12. H. Con. Res. 75 – Expressing the sense of Congress that the atrocities perpetrated by ISIL against religious and ethnic minorities in Iraq and Syria include war crimes, crimes against humanity, and genocide, as amended;
  13. S. 2426 – To direct the Secretary of State to develop a strategy to obtain observer status for Taiwan in the International Criminal Police Organization, and for other purposes; and
  14. H.R. 4721 – To amend title 49, United States Code, to extend authorizations for the airport improvement program, to amend the Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, and for other purposes

On Tuesday, March 15, the House will meet at 10:00am for morning hour and at 12:00pm for legislative business. The House will consider H.R. 3797 – SENSE Act.

On Wednesday, March 16, the House will meet at 10:00am for morning hour and at 12:00pm for legislative business. On Thursday, March 17, the House will meet at 9:00am for legislative business, with last votes expected by 3:00pm. The House will consider:

  1. H.R. 4596 – Small Business Broadband Deployment Act; and
  2. H. Res. ____ – Authorizing the Speaker to appear as amicus curiae on behalf of the House of Representatives in the matter of United States, et al. v. Texas, et al.

On Friday, March 18, no votes are expected in the House.

Budget Resolution Markup Possible This Week

By Capital Thinking on Posted in Budget and Appropriations

Legislative Activity

Budget Resolution Markup Possible This Week

House Budget Committee Chairman Tom Price (R-GA) has kept the Budget Committee’s schedule open this week in the hopes of marking up an FY 2017 budget resolution. While the markup has not yet been scheduled, it would likely take place on Tuesday or Wednesday.

Chairman Price and House Republican Leadership have been working on a budget plan that will gain acceptance from the more conservative members of the Republican conference, including by promising votes on $30 billion of spending cuts to offset the increased spending for FY 2017 agreed to in the bipartisan budget deal last year. House Speaker Paul Ryan (R-WI) has argued that adhering to the $1.07 trillion discretionary spending limit from the budget deal would provide Republicans the opportunity to advance conservative policies through the appropriations process. If Republicans reduce the topline number, Senate Democrats will likely prevent appropriations bills from even reaching the Senate floor.

Chairman Price has said he will find $30 billion in cuts to entitlement spending over two years in order to offset the spending increase, though many members of the House Freedom Caucus (HFC) have voiced opposition to this plan, arguing that the promised spending cuts are unlikely to be enacted. However, Republican Leadership and Committee Chairmen have moved forward with identifying spending cuts with the hope they can convince their more conservative colleagues to pass a budget resolution.

House Ways and Means Chairman Kevin Brady (R-TX) recently proposed legislation that would reduce spending by $16.5 billion over two years and $98 billion over 10 years. The three bills would (1) require a social security number in order to receive the refundable portion of the Child Tax Credit, (2) recover improper Obamacare subsidy payments, and (3) repeal a social services block grant program.

House Energy and Commerce Chairman Fred Upton (R-MI) also announced plans to act on Representative Joe Pitts (R-PA) proposed legislation that would save $25 billion over 10 years by eliminating the Prevention and Public Health Fund established by the Affordable Care Act, reduce Medicaid reimbursements for prisoners, and reduce the federal match to the Children’s Health Insurance Fund.

It is unclear whether the planned cuts to entitlement spending will garner enough support from House Republicans to pass a budget resolution at the higher spending levels.

This Week’s Hearings:

  • Thursday, March 17: The House Appropriations Committee Defense Subcommittee will hold a closed oversight hearing on the U.S. Central Command.
  • Thursday, March 17: The House Appropriations Committee Interior, Environment, and Related Agencies Subcommittee will hold a public and outside witness hearing on American Indian and Alaska Native issues (Part One).
  • Thursday, March 17: The House Appropriations Committee Interior, Environment, and Related Agencies Subcommittee will hold a public and outside witness hearing on American Indian and Alaska Native issues (Part Two).
  • Friday, March 18: The House Appropriations Committee Interior, Environment, and Related Agencies Subcommittee will hold a public and outside witness hearing on American Indian and Alaska Native issues (Part Three).
  • Friday, March 18: The House Appropriations Committee Interior, Environment, and Related Agencies Subcommittee will hold a public and outside witness hearing on American Indian and Alaska Native issues (Part Four).

Senate Appropriations Committee FY 2017 Budget Hearings

  • Tuesday, March 15: The Senate Appropriations Committee State, Foreign operations, and Related Programs Subcommittee will hold a hearing on the FY 2017 budget request and funding justification for the U.S. Agency for International Development.
  • Tuesday, March 15: The Senate Appropriations Committee Legislative Branch Subcommittee will hold a hearing on the FY 2017 budget request and funding justification for the Library of Congress and the Architect of the Capitol.
  • Wednesday, March 16: The Senate Appropriations Committee Defense Subcommittee will hold a hearing on the FY 2017 budget request and funding justification for the National Guard and Reserve.
  • Wednesday, March 16: The Senate Appropriations Committee Energy and Water Development Subcommittee will hold a hearing on the FY 2017 budget request and funding justification for the Energy Department’s National Nuclear Security Administration.
  • Wednesday, March 16: The Senate Appropriations Committee Transportation, Housing and Urban Development, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget request and funding justification for the Transportation Department.
  • Thursday, March 17: The Senate Appropriations Committee Labor, Health and Human Services, Education, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget request and funding justification for the Labor Department.

House Appropriations Committee FY 2017 Budget Hearings

  • Monday, March 14: The House Appropriations Committee Financial Services and General Government Subcommittee will hold a hearing on the FY 2017 budget for the Office of Personnel Management.
  • Tuesday, March 15: The House Appropriations Committee Defense Subcommittee will hold a Member’s Day hearing on the FY 2017 budget for the Department of Defense.
  • Tuesday, March 15: The House Appropriations Committee Interior, Environment, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the U.S. Fish and Wildlife Service.
  • Tuesday, March 15: The House Appropriations Committee Labor, Health and Human Services, Education, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the Labor Department.
  • Tuesday, March 15: The House Appropriations Committee Homeland Security Subcommittee will hold a hearing on the FY 2017 budget for the U.S. Secret Service.
  • Tuesday, March 15: The House Appropriations Committee Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the Agriculture Department rural development programs.
  • Tuesday, March 15: The House Appropriations Committee Commerce, Justice, Science, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the National Aeronautics and Space Administration.
  • Tuesday, March 15: The House Appropriations Committee State, Foreign Operations, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the Treasury Department’s international programs.
  • Tuesday, March 15: The House Appropriations Committee Energy and Water Development, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the Energy Department’s environmental management programs.
  • Tuesday, March 15: The House Appropriations Committee Financial Services and General Government Subcommittee will hold a hearing on the FY 2017 budget for the Federal Communications Commission.
  • Tuesday, March 15: The House Appropriations Committee Transportation, Housing and Urban Development, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the Transportation Department and Housing and Urban Development’s Office of Inspector General.
  • Wednesday, March 16: The House Appropriations Committee Interior, Environment, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the National Park Service.
  • Wednesday, March 16: The House Appropriations Committee Financial Services and General Government Subcommittee will hold a hearing on the FY 2017 budget for the Treasury Department.
  • Wednesday, March 16: The House Appropriations Committee Homeland Security Subcommittee will hold a hearing on the FY 2017 budget for the Federal Emergency Management Agency.
  • Wednesday, March 16: The House Appropriations Committee Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the Agriculture Department research, education, and economics programs.
  • Wednesday, March 16: The House Appropriations Committee Labor, Health and Human Services, Education, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the National Institutes of Health.
  • Wednesday, March 16: The House Appropriations Committee Commerce, Justice, Science, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the National Science Foundation.
  • Wednesday, March 16: The House Appropriations Committee Interior, Environment, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the Bureau of Indian Education Schools.
  • Wednesday, March 16: The House Appropriations Committee State, Foreign Operations, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the U.S. Agency for International Development.
  • Thursday, March 17: The House Appropriations Committee Homeland Security Subcommittee will hold a hearing on the FY 2017 budget for U.S. Immigration and Customs Enforcement.
  • Thursday, March 17: The House Appropriations Committee Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Subcommittee will hold a hearing on the FY 2017 budget for the Agriculture Department’s Farm and Foreign Agriculture Service.

Floor Action for Senate Energy Bill? House to Consider Flint Crisis; Dept. of Energy Begins to Reshape U.S. Electricity Grid

By Squire Patton Boggs on Posted in Energy, Environment and Natural Resources

Legislative Activity

Senate leadership continues to work to encourage their colleagues to lift holds they have placed that have prevented further floor consideration of S. 2012, the Energy Policy Modernization Act of 2016 and the Flint water funding package. While progress reportedly has been made to address Senator Mike Lee’s (R-UT) hold concerning spending for the Flint water crisis, the latest hold has been placed by Senator Bill Nelson (D-FL) in connection with an amendment concerning offshore oil and gas drilling and revenue. There has been some discussion about the possibility of bringing the energy bill and Flint package to the floor regardless of Senator Nelson’s hold, but that could cause the process to take much longer since it could require a cloture vote and more valuable floor time. With the Senate having passed the opioid bill last week, there is room on the floor this week to take up the energy bill/Flint package if the holds can be resolved. 

This Week’s Hearings:

  • On Tuesday, March 15, the House Committee on Oversight and Government Reform will hold a hearing titled “Examining Federal Administration of the Safe Drinking Water Act in Flint, Michigan, Part 2.” Witnesses to will testify include: Susan Hedman, Former Region 5 Administrator, Environmental Protection Agency (EPA); Darnell Earley, Former Emergency Manager, City of Flint, MI; Dayne Walling, Former Mayor, City of Flint, MI among others. In addition, on Thursday, March 17, the House Committee on Oversight and Government Reform will hold a hearing titled “Examining Federal Administration of the Safe Drinking Water Act in Flint, Michigan, Part 3.” EPA Administrator, Gina McCarthy, and Governor Rick Snyder of Michigan are expected to testify.
  • On Tuesday, March 15, the Senate Committee on Energy and Natural Resources will hold a hearing titled “Mitigating Impacts on Natural Resources from Development and Encouraging Related Private Investment.” The Committee will examine the President’s recent memorandum on mitigation and possible effects on domestic energy production.
  • On Tuesday, March 15, the House Committee on Appropriations, Subcommittee on Interior, Environment, and Related Agencies, will hold a hearing to examine the United States Fish and Wildlife Service’s FY 2017 Budget Request. The Director of the United States Fish and Wildlife Service, Dan Ashe, will testify.
  • On Tuesday, March 15, the House Committee on Appropriations, Subcommittee on Energy and Water Development, will hold a budget hearing for the Department of Energy’s Office of Environmental Management. The Assistant Secretary for Environmental Management, Dr. Monica Regalbuto, will testify.
  • On Wednesday, March 16, the Senate Committee on Appropriations, Subcommittee on Energy and Water Development, will hold a hearing to examine the National Nuclear Security Administration’s FY 2017 Budget Request.
  • On Wednesday, March 16, the Senate Committee on Environment and Public Works will hold a hearing on WRDA titled “The 2016 Water Resources Development Act – Policies and Projects.”
  • On Wednesday, March 16, the House Committee on Oversight and Government Reform, Subcommittee on Interior, will hold a hearing to examine the Renewable Fuel Standard. 

Regulatory Activity

Electricity Grid Modernization

The Department of Energy (DOE) has announced the second installment of its Quadrennial Energy Review (QER 1.2). The QER 1.2 will focus primarily on the U.S. electricity grid with regard to integrating renewables, financing, markets and valuation, resilience and North American integration, among other grid modernization issues. The effort is to reshape the electricity system from generation to end use through 2040. DOE will hold public meetings around the country beginning March 31. The Department is expected to conclude its information collection early this summer in order to make its recommendations. Interested companies thus will have an opportunity to help shape the department’s ultimate findings. 

Methane Regulations

Last week, EPA announced its intention to begin drafting proposed rules to limit methane leaks from existing oil and gas drilling sites. (This is in addition to  a former EPA proposal to limit methane emissions from future drilling). EPA Administrator Gina McCarthy stated that “the EPA will begin tackling the issue immediately” by asking oil and gas companies to provide the EPA with information on methane emissions and reduction strategies. McCarthy noted that companies will be required to report certain data about methane output as early as next month.

Comprehensive Mitigation Policy Update

The Fish and Wildlife Service (USFWS) has announced a proposal to revise a comprehensive mitigation policy that has been in place since 1981. The policy allows the USFWS authority to require mitigation for impacted natural resources. In this umbrella approach, USFWS is seeking “recommendations on mitigating the adverse impacts of land and water developments on fish, wildlife, plants, and their habitats.” The agency notes that the drive for the update is based upon “changes in conservation challenges and practices since 1981, including accelerating loss of habitats, effects of climate change, and advances in conservation science.” Comments are due May 9.

Congress to Receive CFPB Semi-Annual Report; SEC, Other Nominees See Movement As Financial Services Regulators Make Final Push

By Squire Patton Boggs on Posted in Financial Services

Legislative Activity

Financial Services Committee Sets Its Sights on the CFPB

This week, on Wednesday, March 16, the House Financial Services Committee will hold a hearing for Consumer Financial Protection Bureau (CFPB) Director Richard Cordray to provide his Semi-Annual Report to Congress.  Among a myriad of topics likely to be raised during the hearing, much discussion will likely center on: (1) the CFPB’s attempt to regulate automobile dealers – including the methodology the Bureau used in developing its regulatory framework; (2) the Bureau’s forthcoming rulemaking on short-term, small dollar credit products; and (3) continued allegations of mismanagement and discrimination within the Bureau. Relatedly, the day prior to Director Cordray’s report, the Committee is set to hold a deposition to question CFPB Assistant Director Patrice Ficklin as part of a Republican investigation into whether the agency distributed money from its settlement Ally Financial without verifying that such distributions were made to the actual people who were discriminated against.

This Week’s Hearings:

  • Tuesday, March 15: The Senate Banking Committee will meet to consider the following nominations:
    • Mr. Matthew Rhett Jeppson to be Director of the United States Mint;
    • Ms. Lisa M. Fairfax to be a Member of the Securities and Exchange Commission; and
    • Ms. Hester Maria Peirce to be a Member of the Securities and Exchange Commission
  • Wednesday, March 16: The House Financial Services Committee will hold a hearing to examine the organization, management, and actions of the CFPB and to receive testimony from Director Richard Cordray on the Bureau’s most recent Semi-Annual Report to Congress.
  • Wednesday, March 16: The House Financial Services Subcommittee on Oversight and Investigations will hold a hearing titled “The FDIC’s Targeting of Refund Anticipation Loans.”

Regulatory Activity

Szubin Approved as SEC Nominees Get a Hearing; Obama and Financial Regulators Meet to Discuss Final Regulatory Push

With Senate Banking Committee Richard Shelby’s (R-AL) primary behind him, it appears likely that the Committee will now move forward with at least some of the numerous financial services nominations pending before it. In particular, last week the Committee voted 14-8 to approve Mr. Adam J. Szubin, of the District of Columbia, to be Under Secretary for Terrorism and Financial Crimes, U. S. Department of the Treasury. His nomination will now be considered for confirmation by the full Senate.

Moreover, this week, the Senate Banking Committee has scheduled a nomination hearing to consider the nominations of two nominees to the Securities and Exchange Commission (SEC): George Washington University professor Lisa Fairfax and Mercatus Center senior research fellow Hester Peirce, who were nominated by President Obama in October 2015. Notably, the SEC currently only has three commissioners.  In addition to these nominees, other pending financial services nominations include two nominees to the Commodity Futures Trading Commission (CFTC): Brian Quintenz, founder and managing principal of Saeculum Capital Management LLC; and Chris Brummer, a professor at Georgetown University Law School.

As Congress moves forward with its consideration of these financial services regulators, President Obama last week met with current industry regulators to discuss remaining obstructions to financial reform and a need for a final push as his presidency begins to draw to a close. In particular, in speaking with regulators, President Obama suggested that more work remains to be done on shadow banking, executive compensation, and cybersecurity.

SEC, FDIC to Hold Meetings

On Monday, March 14, the SEC will meet to discuss whether to approve the 2016 budget of the Public Company Accounting Oversight Board (PCAOB) and the related annual accounting support fee for the Board under Section 109 of the Sarbanes-Oxley Act of 2002.

Additionally, on Tuesday, March 15, the Federal Deposit Insurance Corporation (FDIC) will meet to discuss: (1) an update of projected deposit insurance fund losses, income, and reserve ratios for the restoration plan; and (2) the final rule on implementing the Dodd-Frank requirement to increase the reserve ratio form 1.15 percent to 1.35 percent.

House Energy and Commerce Committee to Hold Concussion Roundtable; Senate HELP Committee to Mark Up Substance Abuse and Mental Health Bills; CMS Releases Proposed Rule on Part B Drug Payment Model

By Squire Patton Boggs on Posted in Healthcare

Legislative Activity

House Energy and Commerce Committee to Hold Concussion Roundtable

Last December, House Committee on Energy and Commerce Chairman Fred Upton (R-MI) announced that the committee would commence a broad review of concussions and their implications. His initiative officially begins this week, with a roundtable titled “Broad Review of Concussions: Initial Roundtable.” The committee has stated that the goal of the roundtable is “to advance the conversation beyond the attention-grabbing headlines to make a real difference for individuals across the country by bringing together experts on head trauma including the public health, military, athletic, and research communities.” Participants in the roundtable discussion will include representatives from the federal government, academia, the National Collegiate Athletic Association, and the National Football League.

Senate HELP Committee to Mark Up Substance Abuse and Mental Health Bills

Following the Senate’s overwhelming passage of S. 524, the Comprehensive Addiction and Recovery Act, last week, the Senate Committee on Health, Education, Labor, and Pensions (HELP) is set to mark up five bills that focus on behavioral health on Wednesday. The committee has announced that it will consider the following legislation: S. ____, Mental Health Reform Act of 2016; S. 1455, The Recovery Enhancement for Addiction Treatment (TREAT) Act; S. 2256, Co-Prescribing Saves Lives Act of 2015; S. 480, National All Schedules Prescription Electronic Reporting; and S. ____, Plan of Safe Care Improvement Act. The bills are expected to be part of a wide-ranging behavioral health package from Chairman Lamar Alexander (R-TN) and Ranking Member Patty Murray (D-WA).

This Week’s Hearings:

  • Monday, March 14: The House Committee on Energy and Commerce Subcommittee on Oversight and Investigations will hold a roundtable titled “Broad Review of Concussions: Initial Roundtable.”
  • Monday, March 14: The House Committee on Energy and Commerce will hold a markup of H.R. 2666, No Rate Regulation of Broadband Internet Access Act, and H.R. 4725, Common Sense Savings Act of 2016.
  • Tuesday, March 15: The House Committee on Education and the Workforce will hold a hearing titled “Examining the Policies and Priorities of the U.S. Department of Health and Human Services.”
  • Tuesday, March 15: The House Committee on the Judiciary will hold a hearing titled “Executive Overreach Task Force of 2016 Hearing on Executive Overreach in Domestic Affairs Part I – Health Care and Immigration.”
  • Tuesday, March 15: The House Committee on Oversight and Government Reform will hold a hearing titled “Examining Federal Administration of the Safe Drinking Water Act in Flint, Michigan, Part II.”
  • Tuesday, March 15: The House Committee on Veterans Affairs Subcommittee on Oversight and Investigations and Subcommittee on Disability Assistance and Memorial Affairs (DAMA) will hold a joint hearing titled “Twenty Five Years After the Persian Gulf War: An Assessment of VA’s Disability Claim Process with Respect to Gulf War Illness.”
  • Tuesday, March 15: The Senate Committee on the Judiciary will hold a hearing titled “Late-Term Abortion: Protecting Babies Born Alive and Capable of Feeling Pain.”
  • Tuesday, March 15: The Senate Committee on Veterans’ Affairs will hold a hearing on pending legislation: S. 2646, Veterans Choice Improvement Act of 2016; S. 2633, Improving Veterans Access to Care in the Community Act; S. 2473, Express Appeals Act of 2016; and discussion draft of title 38, United States Code, appointment, compensation, performance management, and accountability system for senior executive leaders in the Department of Veterans Affairs.
  • Wednesday, March 16: The House Committee on Ways and Means Subcommittee on Health will hold a hearing titled “Preserving and Strengthening Medicare.”
  • Wednesday, March 16: The House Committee on Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies will hold a hearing titled “National Institute of Health Budget.”
  • Wednesday, March 16: The Senate Committee on Health, Education, Labor, and Pensions (HELP) will hold a markup, as described above.
  • Wednesday, March 16: The House Committee on Veterans’ Affairs Subcommittee on Economic Opportunity and Subcommittee on Health will hold a joint hearing titled “Legislative Hearing on draft legislation to improve the authority of the Secretary of Veterans Affairs to hire and retain physicians and other employees of the Department of Veterans Affairs.”
  • Thursday, March 17: The House Committee on Oversight and Government Reform will hold a hearing titled “Examining Federal Administration of the Safe Drinking Water Act in Flint, Michigan, Part III.”
  • Thursday, March 17: The House Committee on Energy and Commerce will hold a hearing titled “Medicare Access and CHIP Reauthorization Act of 2015: Examining Implementation of Medicare Payment Reforms.”
  • Thursday, March 17: The Senate Committee on Finance will hold a hearing titled “HealthCare.gov: A Review of Operations and Enrollment.”
  • Thursday, March 17: The Senate Special Committee on Aging will hold a hearing titled “Senate Special Committee on Aging to hold the second hearing in a series on sudden price spikes in decades-old Rx drugs.”

Regulatory Activity

CMS Releases Proposed Rule on Part B Drug Payment Model

On Tuesday, March 8, the Centers for Medicare & Medicaid Services (CMS) released a proposed rule titled “Medicare Program; Part B Drug Payment Model.” The proposed rule addresses the implementation of a new Medicare payment model through CMS’ Center for Medicare and Medicaid Innovation. The two-phase model would test alternative Part B drug payment designs. The two phases would include: (1) changing the 6 percent add-on Average Sales Price (ASP) to 2.5 percent plus a flat fee, and (2) implementing value-based purchasing tools.

The proposed rule is open for a 60-day comment period; CMS will be accepting comments through May 9, 2016.

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