MONDAY, JANUARY 29, 2007

SENATE MINIMUM WAGE DEBATE CONTINUES

This past week, the Senate continued debate on H.R. 2, a bill that would increase the federal minimum wage by $2.10. On Thursday, Senate Democrats were successful in defending off most Republican attacks on the bill but were forced to compromise on their own purposed amendments. 

One such amendment is the tax package drafted by Finance Chairman Max Baucus (D-MT).  Senate Majority Leader Harry Reid (D-NV) has agreed to the substitute amendment that would add an $8.3 billion package business tax breaks to accompany the wage raise. 

Additional amendments that are pending include one to allow private-sector workers to choose compensatory time instead of overtime pay for extra hours worked; and another to streamline the wage rate for temporary foreign agriculture workers.

Senate Majority Leader Harry Reid (D-NV.) filed a cloture on Friday. A vote on the motion to limit debate could occur on Tuesday, January 30, with a vote on final passage later in the week.

Democrats stress that the bill H.R. 2 remains on a clear path to passage early next week.

Nevada, along with twenty-eight states and the District of Columbia have a minimum wage higher then the federal mandated level.

SENATE ADOPTS AMENDMENT PROHIBITING EMPLOYERS WHO HIRE ILLEGAL ALIENS FROM RECEIVING GOVERNMENT CONTRACTS

The Senate on Friday approved a proposal by Senator Jeff Sessions (R-AL) that would prevent companies that hire illegal aliens from receiving government contracts. Sessions’ amendment was attached to the federal minimum wage bill H.R. 2 which intends to increase the federal minimum wage by $2.10 and is expected to pass the week of January 29.

Sessions’ amendment was approved with a vote of 94 – 0.  It would bar employers from receiving federal contracts or grants for up to ten years if they have hired illegal aliens or undocumented foreign workers. Companies with illegal aliens on their payroll not already holding federal contracts would be prohibited from obtaining future contracts for seven years.

Under Sessions’ amendment companies that use the government-provided automated electronic verification system, called the Basic Pilot Program, to verify the legal status of their employees would be protected from the ban on federal contracts. The Basic Pilot Program is already used by over 10,000 employers to verify work authorization when hiring new employees. Additionally, all federal agencies and members of Congress are required to use the program under current law.

The government could waive the ban if the waiver were necessary for national defense or security purposes, according to Sessions’ amendment.

ENSIGN AMENDMENT TO EXPAND HEALTH SAVINGS ACCOUNTS BLOCKED

Democrats this week were successful in blocking a Health Savings Account amendment purposed by Senator Ensign (R-NV).  If it had passed, the amendment would have expanded the ability of individuals and families who purchase high-deductible health plans to use their Health Savings Accounts to pay for health insurance premiums.  The amendment lost by a razor thin margin 47-48. 

Currently, Health Savings Accounts set aside savings tax-free for healthcare costs and work in conjunction with a high-deductible health insurance plans.

HOUSE TO BEGIN CONSIDERATION OF FY07 CONTINUING RESOLUTION

House leaders intend to bring the FY07 continuing funding resolution (CR) to the floor this Wednesday, with Senate Leaders hoping to consider the measure during the week of February 5th. 

While most leaders agree that brokering a final funding agreement for the CR is achievable, it is far from a "clean CR" - meaning that the bill will not simply continue funding, but will make various changes to certain programs as necessary.  

In an example of intense lobbying to support various programs, 72 Senators last week signed a letter to Senate Majority Leader Reid and Senate Minority Leader McConnell urging them to allow the stalled highway funding increases to go forward under the CR. 
 

BILL TO ADDRESS METH LAB CLEANUP REINTRODUCED IN 110TH CONGRESS 

Representative Bart Gordon (D-TN) reintroduced a bill from the last Congress to address the clean-up of meth labs, which would require EPA to help state and local governments by establishing voluntary guidelines for the clean-up of methamphetamine labs. 

The measure would authorize $2.5 million per year in FY 07 and FY 08 for the EPA and the National Institute of Standards and Technology to provide the guidelines.  The bill would also call for the EPA to conduct a study on the residual effects of exposure to meth labs on emergency first responders, and on former meth lab residents.

The bill is scheduled to be marked up in a hearing on January 31 before the House Science and Technology Committee.  During the last Congress, the House passed a similar meth lab clean-up bill in December 2005.  The Senate amended and passed the measure a year later, but there was not enough time for the House to consider and vote on the bill a second time.    

THE WEEK AHEAD: The House has scheduled a three-day work week.  The chamber will consider non-controversial bills on the suspension calendar, and then will take-up the long-term continuing funding resolution for the remaining FY07 appropriations bills.  The House will not be in session on Thursday or Friday due to the annual Democratic Members retreat.

The Senate will continue its debate on the minimum wage bill (HR 2), and will also consider a non-binding resolution on the President’s plan to send additional troops to Iraq.

The SENATE continues its debate of minimum wage hike legislation (H.R. 2). Later in the week, the chamber is scheduled to consider non-binding resolutions opposing the escalation of troop levels in Iraq.

The Senate hopes to complete its consideration of a substitute amendment to a bill (H.R. 2) raising the federal minimum wage from $5.15 per hour to $7.25 per hour in just over two years.  The package includes $8.3 billion in small business tax incentives that are offset over ten years. Senate Majority Leader Harry Reid (D-NV) filed a cloture motion on Friday, January 26. A vote on the motion to limit debate on the substitute amendment is scheduled for Tuesday, January 30. If cloture is invoked, a vote on final passage will occur shortly thereafter.

The HOUSE convenes meets today to consider five measures under suspension; tomorrow, it will consider an additional five measures under suspension.

On Wednesday, January 31, the chamber is scheduled to consider a long-term continuing resolution (CR) on Wednesday, January 31. The measure will likely be granted a closed rule allowing no amendments. The $463.5 billion CR encompasses the nine unfinished fiscal year (FY) 2007 appropriations bills (Homeland Security and Defense were completed) and will last through the end of the fiscal year (September 30). It generally would fund agencies and programs at prior-year enacted budget levels. However, since the CR operates under the higher FY 2007 budget caps, some increases in certain areas could be provided, such as transportation, law enforcement, military construction, veterans, education, and health. The current CR expires on Thursday, February 15.

HEARINGS TO NOTE

WILDFIRES: The Senate Energy and Natural Resources Committee will hold a hearing on the status of wildfire suppression activities.  The hearing is slated for January 30 at 10:00 a.m. in 366 Dirksen.

TRANSPORTATION:  The Senate Energy and Natural Resources Committee has scheduled a Tuesday, January 30, hearing at 2:30 p.m. in 366 Dirksen Senate Office Building on transportation sector fuel efficiency.

HEALTH:  The Senate Special Aging Committee has scheduled a Wednesday, January 31, hearing at 10:30 a.m. in 562 Dirksen Senate Office Building on the Medicare Part D prescription drug benefit.

CHILDREN'S HEALTH: The Senate Finance Committee has scheduled a Thursday, February 1, hearing at 10:00 a.m. in 215 Dirksen Senate Office Building on the State Children’s Health Insurance Program.  

VETERANS: The Senate Small Business and Entrepreneurship has scheduled a Wednesday, January 31, hearing at 10:00 a.m. in 428-A Russell Senate Office Building on federal small business assistance programs for veterans and reservists.
 

GOVERNOR GIBBONS PROPOSES BUSINESS TAX CUT DURING INAUGURAL STATE OF THE STATE ADDRESS

Governor Jim Gibbons in his inaugural speech that he delivered in front of the state Legislature on January 22 proposed a $7 billion state budget for fiscal years 2008-2009.  In his proposed budget, Gibbons described his intentions to cut the modified business tax from 0.65 percent to 0.62 percent a 4.6 percent decrease.

Gibbons plan, if approved by the Legislature, would result in $28 million in tax relief for approximately 55,700 Nevada based business.  Additionally, he proposed to eliminate the $1,750-per branch excise tax for Nevada banks.

Passage for Gibbons budget as he proposed it is uncertain by the Legislature.  Democrats hold the majority in the Assembly, 27-15, while Republicans control the state Senate 11-10.

STATE OF THE UNION ADDRESS HIGHLIGHTS ENERGY AND HEALTH

President Bush delivered his sixth State of the Union address Tuesday evening, offering proposals for reducing gasoline consumption, expanding health insurance coverage, as well as plans for the war in Iraq.  He made mention of the need to balance the budget within five years, overhaul entitlement programs (Medicare, Medicaid, Social Security), and to cut the number and cost of legislative earmarks in half. The President also renewed his call for Congress to pass an immigration bill with a guest-worker program.

On energy, the President proposed reducing gasoline consumption by 20 percent over 10 years.  The goal would be achieved by requiring that 35 billion gallons of renewable and alternative fuels be used by 2017.  (The current requirement is 7.5 billion gallons by 2012.)  He renewed his request for Congress to give him the authority to improve fuel efficiency standards for passenger cars, and   called for more domestic fossil fuel development, and plans to double the size of the nation’s Strategic Petroleum Reserve.

 

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