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February 4, 2005


In this Issue


HELP Committee Launches Ambitious Health Agenda


Energy and Commerce Plans Hearing on Malpractice



Talk Continues on House Appropriations Subcommittee Changes


Analyst Reports Changes in Loans, Payments Likely in Bush FY06 Budget


Senate Bankruptcy Overhaul to Include Permanent Farmer Protections


Harkin, Kerry Drop Small Biz, Farm Emergency Bill, But Energy Legislation Expected to be on Slow Track in the Senate


BSE Update:


New Bills

 

HELP Committee Launches Ambitious Health Agenda

The Senate Committee on Health, Education, Labor, and Pensions (HELP) intends to embark on an ambitious, short-turnaround agenda on health-related issues. This will begin next week (February 10) with a Health Subcommittee hearing entitled “Biodefense: Next Steps,” at which testimony will be taken regarding programs and activities to expand what already was accomplished (or is being attempted) under so-called “Bioshield I.” S. 3, legislation introduced by Senator Judd Gregg (R-NH) (Protecting America in the War on Terror Act) is expected to be discussed at this hearing. The bill includes provisions designed to expand the development of countermeasure products, enhance public health preparedness, provide liability protections to those who develop new products, and create incentives for private sector involvement in the development of countermeasures. While S. 3 is not considered to be the “final version” of a Bioshield II, it is providing a springboard and baseline for action.

The Committee also has indicated that it plans to hold several hearings in early March on drug safety. Committee chair Mike Enzi (R-WY) has staked out his jurisdiction in this area and indicated his desire to work in a bipartisan manner to determine whether and what problems need to be resolved and whether and what legislation is needed.


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Energy and Commerce Plans Hearing on Malpractice

The House Energy and Commerce Health Subcommittee plans to hold a hearing in the next week on medical malpractice, including discussion of specific legislative proposals and a reiteration of concerns that a malpractice insurance crisis is jeopardizing access to quality health care. One of the contentious issues in extant medical malpractice legislation are so-called “FDA defense” provisions that offer some liability protection to manufacturers of FDA-approved products, provided the manufacturers have followed FDA requirements and the products meet FDA standards. The provisions have been characterized by their opponents as “give aways” to big companies at the sacrifice of the rights of consumers.

Medical malpractice reform has been one of the Administration’s top priorities for several years, and it is likely that action could occur this year on some legislation to limit non-compensatory damages, punitive damages, and attorneys’ fees. In addition, many in Congress support provisions that protect products that follow FDA’s rules.


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Talk Continues on House Appropriations Subcommittee Changes

Talk continues of House Appropriations Chair Jerry Lewis’s (R-CA) proposed changes to the panel, including the elimination of the VA-HUD subcommittee, which has jurisdiction over NASA and the National Science Foundation (NSF).

Under Lewis' plan, NASA and NSF would be funded as part of the Energy & Water spending bill. House Majority Leader Tom DeLay, an early proponent of eliminating VA-HUD, in part because of his support for increased NASA funds, explained publicly his reasoning for the first time Tuesday.

"I think especially VA-HUD is a committee that has shown it creates a lot of confusion and a lot of competition that is I think unnecessary," DeLay told reporters. "I know NASA will fare better if it's in Energy and Water where they are going to consolidate all the science functions, and that's where that debate needs to be held."

The Senate remains critical of the proposed changes. Senate Minority Leader and senior appropriator Harry Reid has said that the reorganization attempt is an excuse to place some agencies on the back burner.

The House changes are likely to go through, even without agreement from the Senate.

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Analyst Reports Changes in Loans, Payments Likely in Bush FY06 Budget

One DC economics firm reports this week President Bush will likely propose as part of his FY2006 budget “substantial” budget cuts as well as changes in existing Farm Bill programs, including lowering crop loan rates and countercyclical payments, all part of a plan to save $15 billion.

The loan rate/countercyclical payment plan would be achieved by capping the amount of commodities qualifying for loan rate protection, extending the milk income contract program at a lower price and imposing payment limitations by screwing down eligibility, Informa Economics reported.

While Bush endorsed the reauthorization of the milk income program during the campaign, moving it to a lower level – coupled with the other payment changes – sets up a confrontation between the White House and a number of powerful farm state legislators who have joined most producer groups in calling for a hands-off attitude on the 2002 Farm Bill until its programs expire in 2007. Sen. Thad Cochran (R-MS), former chair of the Senate Agriculture Committee and now chair of the Senate Appropriations Committee, reiterated that stance this week in a speech to the National Cotton Council.

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Senate Bankruptcy Overhaul to Include Permanent Farmer Protections

Sen. Charles Grassley (R-IA), chair of the Senate Finance Committee, this week introduced legislation to overhaul the nation’s bankruptcy laws, including making permanent so-called “Chapter 12” protections for family farmers. Grassley has shepherded extensions of the Chapter 12 protections during the last couple of congresses.

The bill, which must be handled by the Senate Judiciary Committee, is similar to bankruptcy reform legislation which passed the House last year but was hung up in the Senate over Democrat-sponsored language on abortion rights. Judiciary panel chair Sen. Arlen Specter (R-PA) said hearings on the bill may occur as early as February 10, with a markup set for later this month.

The bill will require debtors with the wherewithal to pay debts to design and enter a repayment plan rather than having debts automatically cancelled under Chapter 7 of the federal code. Credit card companies would be required to inform customers of the risks of making only minimum payments on credit card debt and would be prohibited from using deceptive advertising of low initial credit card interest rates. The bill also provides for heavier penalties for “predatory” collection practices.

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Harkin, Kerry Drop Small Biz, Farm Emergency Energy Bill, But Energy Legislation Expected to be on a Slow Track in the Senate

Sens. Tom Harkin (D-IA) and John Kerry (D-MA) introduced legislation this week to help farmers and small business cope with “unstable and spiking” energy costs, but Senate leadership said it won’t hold any hearings on comprehensive energy legislation before April, meaning the Harkin/Kerry legislation won’t move any time soon.

The Harkin/Kerry bill, known as the “Small Business & Farm Energy Emergency Relief Act,” would give farmers and other small businesses low interest loans from the Small Business Administration (SBA) and through USDA’s emergency loan program if they can prove they’ve been harmed by high energy costs.

But while Harkin and Kerry touted the immediate need for their legislation, it doesn’t appear the Senate will take up the energy issue in any serious fashion until after its spring break, with a stated goal of wrapping it up before they leave for their August recess.

The House is talking about repassing its conference report from last Congress. However, while some ranking Senators are calling for piece-meal action on energy items, sources within the Senate Energy & Natural Resources Committee predict major shifts in policy from last year, leading to a comprehensive bipartisan package by the summer. Policy changes may include no liability protection for MTBE producers, and action to lower natural gas prices by increasing domestic production and imports of liquefied natural gas.

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BSE Update:

Senate Ag Hearing on Canadian Cattle Trade Hears Calls for Pullback on USDA Rulemaking

Secretary of Agriculture Mike Johanns hit the ground running this week as he appeared at his first Senate Agriculture Committee hearing since confirmation, taking heavy criticism for his department’s rulemaking on reopening the Canadian border to live animal trade.

While acknowledging some parts of the rule may be reviewed and might be rewritten, Johanns emphasized the need to reopen the border to reinvigorate trade and U.S. industry returns. He also reported two U.S. government reports on the Canadian BSE situation – a feed ban audit and an epidemiological report – will be in hand by mid-February and the end of March, respectively.

Several Senators from both sides of the aisle, but mainly representing border states with heavy cow-calf cattle operations, said the USDA rulemaking was inadequate to either protect U.S. producers from Canadian competition or the U.S. herd from BSE contamination.

One issue upon which several committee members focused was a portion of the USDA rule allowing only animals less than 30 months of age to enter the U.S., while permitting meat from older animals to be sold here. Sen. Mark Dayton (D-MN) and freshman Sen. Ken Salazar (D-CO) said this dichotomy allows U.S. meat companies with facilities in Canada to simply slaughter north of the border and move product into the U.S., while idling U.S. facilities and workers.

Sens. Conrad Burns (R-MT) and Craig Thomas (R-WY) introduced legislation February 2 to prohibit import of cattle over 30 months of age until USDA formally determines the Canadian industry fully complies with international standards for BSE control and reports back to both House and Senate Agriculture Committees. Burns said earlier this week he would take the opportunity of having President Bush in his state for public sessions on Social Security reform to lobby the President on keeping the Canadian border closed. R-CALF, a conservative cattle producers group strongly opposed to reopening the border, is headquartered in Billings, MT.

Dayton called “ignorant and offensive” USDA predictions that its current rulemaking would have only “moderate” impact on the U.S. meat industry. In January statements, USDA fueled this concern by estimating there are two million Canadian cattle which could enter the U.S. during 2005; however, this week the National Cattlemen’s Beef Assn. (NCBA) said no more than 900,000 Canadian cattle would be shipped during 2005. This number could move lower if USDA identification requirements prove too tough for Canadian sellers, and if the U.S. dollar continues to weaken, NCBA said.

Other Senators said the rulemaking ignored international standards for meeting so-called “minimal risk” criteria. Sen. Tom Harkin (D-IA) questioned Johanns about USDA’s criteria in deciding Canada met international standards for a minimal risk nation, renewing his call for a pullback of the rulemaking.

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Canada Sets Up Regs to Allow More U.S. Cattle, Beef Entry

As the Senate Agriculture Committee debated the wisdom of allowing Canadian animals and beef into the U.S., the Canadian government January 31 quietly announced new “science-based” import rules allowing expanded access to Canada for U.S. cattle and beef products.

Citing the same World Organization for Animal Health standards as the U.S. is using, the Canadian Food Inspection Agency (CFIA) said it will permit the import of live animals born in 1998 or later, beef from animals of any age from which specified risk materials (SRM) have been removed, and various other products. “Certain animal feeds” which pose risks, CFIA said, will remain prohibited. The CFIA list of allowable/prohibited materials can be found here.

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Johanns Tells Senate Panel Ball's in Japan's Court on Beef Trade

The U.S. has done as much as it can do, provided as much technical information as is available, and the next step in reopening beef trade with Japan is up to the Japanese government, Secretary of Agriculture Mike Johanns told the Senate Agriculture Committee February 2.

“It’s time for the Japanese to make the decision. There’s nothing more we can possibly provide,” Johanns said.

Johanns has met with Japan’s ambassador to the U.S. and asked for a date certain on trade resumption. He also made it clear that a change in command at USDA does not mean the Japanese can walk away from last October’s agreement to resume trade.

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Mexico Says Beef Trade Bans No Longer Needed

Mexico’s ban on U.S. and Canadian beef and cattle imports are no longer needed because adequate measures taken to protect the public and the cattle herd by its North American neighbors are in place, Mexico’s top animal health official said this week. Javier Trujillo, the head of animal health at the federal Agriculture Ministry, said once the U.S. opens its border, there are neither “legal or technical reasons” for continuing the ban. He said, however, that it’s Mexican human health authorities who will make the decision on the import limits.

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New Bills

A number of new bills have been introduced. Click here to send a request for a copy of the text or more information about the bill.

S.226
The "Improved Vaccine Supply Act," introduced by Sens. Mike DeWine (R-OH) and Hillary Clinton (D-NY) would require any manufacturer of a vaccine to give a one-year notice of discontinuance. In addition, the Secretary of HHS, acting through the CDC, would be required to develop a plan for the purchase, storage, and rotation of a supply of vaccines sufficient to provide routinely recommended vaccinations for a six-month period for children and adults.

S.239
Sen. Olympia Snowe (R-ME) offered a bill entitled the "Medicare Enhancement for Needed Drugs (MEND) Act" which would authorize the Secretary of Health and Human Services to negotiate prices for prescription drugs on behalf of Medicare beneficiaries.

S.256
Sen. Charles Grassley (R-IA) introduced legislation to overhaul the nation’s bankruptcy laws, including making permanent so-called “Chapter 12” protections for family farmers.

S.269
Sens. Tom Harkin (D-IA) and John Kerry (D-MA) introduced the “Small Business & Farm Energy Emergency Relief Act” which would give farmers and other small businesses low interest loans from the Small Business Administration and through USDA’s emergency loan program if they can prove they’ve been harmed by high energy costs.

S.273
A bill introduced by Sen. Norm Coleman (D-MN) would extend the Milk Income Loss Compensation (MILC) law which is currently set to expire September 30, 2005.

S.294
Sen. Conrad Burns (R-MT) offered a measure that would strengthen the restrictions on the importation from bovine spongiform encephalopathy minimal-risk regions of meat, meat byproducts, and meat food products from bovines

H.R.503
Rep. John Sweeney (R-NY) offered a measure that would amend the Horse Protection Act to prohibit the shipping, transporting, moving, delivering, receiving, possessing, purchasing, selling, or donation of horses and other equines to be slaughtered for human consumption.

H.R.521
A bill introduced by Rep. Don Sherwood (R-PA) would impose tariff-rate quotas on certain casein and milk protein concentrates.

H.R.554
Rep. Ric Keller (R-FL) offered a measure to prohibit civil lawsuits against restaurants, supermarkets, and grocery manufactures for claims of injury relating to a person's weight gain, obesity, or any health condition associated with weight gain or obesity.

H.R.563
Rep. Stephen Lynch (D-MA) introduced a bill to provide for negotiation and disclosure of lowest possible prices for Medicare prescription drugs. In addition, the bill would provide Medicare beneficiaries waivers to import prescription drugs from Canada.

H.R.578
A bill introduced by Rep. Ron Paul (R-TX) would provide seniors a tax credit equal to 80 percent of their prescription drug costs, as well as permit the importation and sale of prescription drugs through Internet sites.

H.R.586
Rep. George Radanovich (R-CA) offered a measure to preserve the use and access of pack and saddle stock animals on public lands, including wilderness areas, national monuments, and other specifically designated areas where there is a historical tradition of such use.

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