House Passes Bill Easing Banking Regulations

On Thursday, March 19, the House passed the Financial Services Regulatory Relief Act of 2003 (H.R. 1375) by a vote of 392-25. The legislation makes it easier for banks to open branches across states lines, expands business leading authority for savings associations, and allows credit unions to increase their services.

The House adopted a manager's amendment (by voice vote) containing compromise language that allows only companies with 85 percent or more of their business in financial services to use an industrial loan company (ILC) to branch into other states. Originally, the House Financial Services Committee approved a bill that would have permitted ILCs to branch across states lines. Wal-Mart Store, Inc. has been working to set up an ILC, and the committee-passed version of the legislation would have allowed the retailer to create a nationwide bank. A more restrictive amendment on ILC's offered by Rep. Jim Leach (R-Iowa) was rejected.

Hearing Held on Medicaid Intergovernmental Transfers

The House Energy and Commerce Subcommittee on Health, held a hearing on Thursday, March 18 on the issue of Medicaid intergovernmental transfers (IGTs). Officials from the General Accounting Office (GAO) and the U.S. Department of Health and Human Services Office of the Inspector General (IG) recommended Congress take additional steps to curb states' use of IGTs.

Kathryn Allen from GAO recommended that Congress prohibit Medicaid payments that exceed "actual costs" for any government owned facility. George Reeb from the IG recommended that states be required to keep all additional Medicaid funds raised through IGTs at the provider level, and that annual audits be conducted of each state to ensure compliance.

A representative from the National Association of Children's Hospitals testified, and explained that eliminating or drastically reducing the use of IGTs would cause hospitals across the country to shut down due to lack of funds. The National Governors Association did not testify, but submitted a statement for the record. Congressional reaction was mixed, with most members opposed to allowing Medicaid funds to be used for non-health purposes, but wary of reducing the federal commitment to health care for vulnerable populations.

Follow the link for more information on the hearing: http://energycommerce.house.gov/108/Hearings/03182004hearing1232/hearing.htm

House Transportation Reauthorization Bill

Chairman Don Young, of the House Transportation and Infrastructure has tentatively agreed to support the $275 billion ceiling for the House's six-year transportation reauthorization bill. But, that support is conditioned upon a promise that he will have a chance to increase funding levels in the bill later on, perhaps as early as next year. The scenario includes the House passing the $275 billion, six-year reauthorization measure and conferencing that with the Senate's $318 billion bill (we assume that this means the House conferees must insist that the Senate recede to the House's funding number). Chairman Young would then have the Leadership's blessing to reopen the bill in 2005-2006 when he might have a better chance of winning support for more funding or a gasoline tax increase. It appears that the Transportation and Infrastructure Committee could begin subcommittee mark-up of the bill on March 24. House Leaders hope to move the bill to the floor just prior to the Easter recess scheduled for April 5-16 as the current extension expires on April 30. Meanwhile, Senate Finance Committee Chairman Charles Grassley signaled that he would be willing to accept Young's re-opener provision.

Nuclear Cleanup, Weapons Dominate House Budget Hearing

National Nuclear Administration Administrator Linton Brooks used a congressional budget hearing on Thursday, March 18 to urge lawmakers to support the agency's efforts to select a site for a new facility to manufacture plutonium pits, which would replace aging trigger mechanisms in bombs stored in the nation's nuclear stockpile.

The Energy Department had hoped by April to announce where it would build the $4 billion plant to manufacture pits - the core of warheads that are compressed in order to initiate a nuclear chain reaction. But on January 28, Brooks halted that process until the agency could consult with the congressional committees of jurisdiction -- the House and Senate Appropriations committees and the House and Senate Armed Services committees.

NNSA published a draft environmental impact statement last June that evaluated five potential sites for the so called Modern Pit Facility: Los Alamos and Carlsbad, New Mexico; the Nevada Test Site; the Pantex plant in Amarillo, Texas; and the Savannah River Site in Aiken, South Carolina.

The Bush administration's FY 2005 budget for the project requests $336.5 million, up 13 percent from FY 2004 but Brooks said the agency is still not in a position to recommend a site. That is because House Energy and Water Appropriations Subcommittee Chairman David Hobsen (R-Ohio), Senator Diane Feinstein (D-Calif) and other key congressional appropriators have mounted serious opposition in recent years.

The administration requested $23 million in the total FY 2004 appropriation to complete a conceptual design of the facility, but Congress provided just $11 million, charging that committing to a plant design and site would be "premature" until the makeup of the future weapons stockpile is more clearly defined. Lawmakers have said Congress must review a Defense Department report on revised nuclear stockpile plans before turning to questions surrounding the new facility.

*source: Environment & Energy Daily

Rural Tourism Grants Deadline Nears

A deadline is approaching to apply for matching grants under the Nevada Commission on Tourism's $1.5 million annual program to promote tourism in rural communities, Lt. Governor Lorraine Hunt announced on Thursday, March 18. The Rural Grants Program helps promote activities that attract visitors to rural communities. The funding goes to nonprofit organizations such as chambers of commerce, convention and visitor bureaus, local governments, tribal organizations, Nevada's tourism "territories" and special events. Each grant must be matched equally in cash or in-kind contributions such as labor and materials, and only communities with populations under 100,000 are eligible.

Applications can be mailed to NCOT, 401 North Carson Street, Carson City, NV 89701 or filed online at www.travelnevada.com/downloads and must be postmarked or received at NCOT by 5 PM March 26. The grants will be awarded July 1.

NCOT Executive Director Bruce Bommarito said rural grants deliver greater value than their dollar amounts because they help stimulate tourism business across most of the state, which is rural. NCOT awards about 300 grants annually that range from about $1,000 to $10,000 each.

Follow this link to NCOT's press release: http://www.travelnevada.com/news_releases.asp

This Week in Congress

The Senate returns from its one-week recess and will resume floor consideration of legislation (S. 1637) to repeal U.S. export tax laws that were found to violate World Trade Organization rules. Senate Majority Leader Bill Frist may decide to file a cloture motion if a time agreement cannot be reached today. Democrats are expected to offer numerous amendments, including one by Senator Tom Harkin (D-Iowa) that would reverse a U.S. Department of Labor ruling on overtime pay.

The House will take-up its FY 2005 budget resolution, which freezes domestic spending at FY 2004 levels and provides $401.7 billion for defense, matching the President's request. It also contains $138 billion in a tax cut reconciliation bill, with instructions to authorizing committees to find $13.2 billion in mandatory savings over five years. It remains unclear whether a budget enforcement bill (H.R. 3973), which includes a five-year cap for discretionary spending and renews pay-as-you-go (PAYGO) budget rules for mandatory spending but not tax cuts, will also see House floor action this week.

Key Committee Meetings

Appropriations:

*Senate Homeland Security Subcommittee has scheduled a Tuesday, March 23, hearing on funding for the Transportation Security Administration, at 10:00 a.m. in 124 Dirksen Senate Office Building.

*House Labor/Health and Human Services (HHS)/Education Subcommittee has scheduled a hearing on Tuesday, March 23, at 10:00 a.m. in 2358 Rayburn House Office Building on funding for education programs. An additional hearing is scheduled for Wednesday, March 24, at 2:00 p.m. with Secretary of Education Rod Paige.

*House Homeland Security Subcommittee will hold a hearing on emergency preparedness and response funding on Wednesday, March 24, at 10:00 a.m. in 2360 Rayburn House Office Building.

*House Transportation and Treasury Subcommittee will hold a Wednesday, March 24, hearing with OMB Director Josh Bolton, followed by a Thursday, March 25, hearing on highway safety programs (both at 10:00 a.m. in 2358 Rayburn House Office Building).

*Senate Labor/HHS/Education Subcommittee will hold a Thursday, March 25, hearing at 9:30 a.m. in 192 Dirksen Senate Office Building with HHS Secretary Tommy Thompson scheduled to testify.

*Senate Interior Subcommittee has scheduled a hearing on Thursday, March 25, at 9:30 a.m. in 124 Dirksen Senate Office Building with U.S. Secretary of Interior Gale Norton scheduled to testify.

*Senate VA/HUD/Independent Agencies Subcommittee has scheduled a Thursday, March 25, hearing at 10:00 a.m. in 628 Dirksen on funding for the U.S. Environmental Protection Agency (EPA) with EPA Administrator Mike Leavitt scheduled to testify.

*Senate Agriculture Subcommittee will hold a hearing on Thursday, March 25, at 1:30 p.m. in 192 Dirksen Senate Office Building with U.S. Secretary of Agriculture Ann Veneman scheduled to testify.

Energy and Environment. The Senate Environment and Public Works Committee has scheduled a Wednesday, March 24, hearing on U.S. natural gas supplies and the environment (10:00 a.m., 406 Dirksen Senate Office Building). On Thursday, March 25, the Senate Energy and Natural Resources Subcommittee on Water and Power will hold a hearing on rural/small community water supply systems (S. 1085).

Indian Gaming. The Senate Indian Affairs Committee has scheduled a Wednesday, March 24, hearing at 9:30 a.m. in 562 Dirksen Senate Office Building on Indian Gaming Regulatory Act amendments (S. 1529).

Internet. The Senate Commerce, Science, and Transportation Subcommittee on Communications has scheduled a Tuesday, March 23, hearing at 2:30 p.m. in 253 Russell Senate Office Building on Internet "Spyware" programs.

Invasive Species. The House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation and Subcommittee on Water Resources and Environment has scheduled a Thursday, March 25, joint hearing on reauthorization of the Invasive Species Act (10:00 a.m., 2167 Rayburn House Office Building).

Transportation:

*The Senate Commerce, Science, and Transportation Committee has scheduled a Tuesday, March 23, hearing at 10:00 AM in 253 Russell Senate Office Building on passenger and freight rail security.

*The House Transportation and Infrastructure Committee has scheduled a Wednesday, March 24 markup at 11:00 AM in 2167 Rayburn House Office Building on transportation reauthorization legislation.

*The Senate Banking, Housing, and Urban Affairs Committee will hold a Thursday, March 25, hearing at 2:00 PM in 538 Dirksen Senate Office Building on FY 2005 budget for the Federal Transit Administration.