MESSAGE
DATE | 2001-12-18 |
FROM | Ruben Safir
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SUBJECT | Subject: [hangout] Lobby NOW - Congress Open For Business
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http://www.nytimes.com/2001/12/18/politics/18LOBB.html?pagewanted=print
December 18, 2001
Lobby Groups Find Congress in Giving Mood
By ROBERT PEAR
ASHINGTON, Dec. 17 - Congress is dispensing last-minute legislative favors before it adjourns for the year, and lobbyists for special interests have lined up with a long list of requests, some of which raise major questions about the proper role of government in a weak economy.
Flight schools, skydiving companies, manufacturers of small aircraft and operators of small airports are seeking a $7.5 billion package of grants and loans to compensate them for business lost since the terrorist attacks of Sept. 11. A House subcommittee approved the legislation, the General Aviation Reparations Act, last week.
Shipbuilders, having just won an increase in the federal subsidies that President Bush tried to abolish, are now asking Congress to defer income taxes they owe on payments for the building of Navy ships. Not every proposal will become law, but some have been enacted and others are well on their way.
Boeing, for example, has persuaded the Senate to approve a plan under which the Air Force would lease 100 new wide-body Boeing jets for use as refueling tankers, at a cost of $20 million a year for each plane - up to $20 billion over 10 years. House and Senate negotiators are expected to endorse the plan this week.
The Blue Cross and Blue Shield Association is lobbying Congress to limit the liability of health insurance companies that review and pay claims for the federal Medicare program. The House last week passed legislation that grants some but not all of the insurers' request, and they are pressing their case in the Senate.
Southern growers of catfish have persuaded Congress to restrict imports of similar fish from Vietnam.
A cellphone company, NextWave Telecom Inc., is urging Congress to authorize a cash payment of $5.8 billion to the company to help settle litigation over cellular licenses that it obtained in 1996 and 1997. NextWave, which filed for bankruptcy protection in 1998, and its investors have deployed a small army of lawyers and lobbyists to persuade Congress to ratify the deal. Haley Barbour, former chairman of the Republican National Committee, represents a large group of investors.
NextWave says Congress must act by Dec. 31 or the deal could fall apart. The Bush administration says the settlement is in the public interest because it would transfer the NextWave licenses to other mobile phone companies that could use them to improve wireless services. But Senators Ernest F. Hollings, the South Carolina Democrat who is chairman of the Committee on Commerce, Science and Transportation, and John McCain of Arizona, the senior Republican on the panel, denounced the proposal as special-interest legislation.
"This thing is an outrage," Mr. Hollings said. "They've put a gun to our heads and said, `Do it by Dec. 31.' " Mr. McCain said Congress was being asked to make "ransom payments" to benefit NextWave and its investors, executives and lobbyists. Several factors help explain the large number of proposals for aid. Congress is in session later than it has been in years and has become an inviting target for lobbyists. The economy was soft before Sept. 11, but the events of that day have galvanized industries into action.
The travel industry is one of many seeking federal aid in the aftermath of the Sept. 11 attacks. Representative John Shadegg, a conservative Republican from Arizona, is pushing the Travel America Now Act, which would allow a $500 tax credit for personal travel expenses. Representative Patsy T. Mink, a liberal Democrat from Hawaii, has introduced a bill that would allow people to take tax deductions for travel to destinations at least 500 miles from home.
"People are not traveling," Ms. Mink said. "Congress needs to give the public incentives to travel."
The reparations bill, approved last week by a House Energy and Commerce subcommittee, would provide $2.5 billion in grants and $5 billion in loan guarantees for "general aviation entities," including aircraft manufacturers, flight schools and skydiving companies.
Lobbyists for these companies cite a $15 billion aid package for airlines, signed by Mr. Bush on Sept. 22, as a precedent, and their message is being heard on Capitol Hill.
"Congress acted swiftly to provide the major airlines with needed relief to keep that industry going," said Representative John L. Mica, Republican of Florida, the author of the bill approved last week. "Now it should do the same for general aviation."
Edward Scott, director of government relations for the United States Parachute Association, said skydive operators suffered financial losses because they were grounded for more than a week in September. "They deserve eligibility for federal financial assistance," Mr. Scott said. Insurance lobbyists helped write the legislation that limits the liability of their employees, who review and pay Medicare claims filed by doctors and hospitals. The House Energy and Commerce Committee drafted the bill in September but made changes to address concerns of the Blue Cross and Blue Shield Association.
The legislation authorizes the government to reimburse insurance companies for damages, settlements and legal expenses incurred in lawsuits related to their work as Medicare contractors. The inspector general of the Department of Health and Human Services, Janet Rehnquist, objected to some of the language in the bill, saying it "would not fully protect the Medicare trust fund from misconduct" by contractors.
At least eight Medicare contractors have paid more than $275 million to the government to settle charges that they made improper payments, altered documents, hid files and backdated records.
The new Air Force program to lease aircraft from Boeing is included in the Defense Department appropriations bill. "In this bill," Mr. McCain said, "we find a sweet deal for the Boeing Company that I'm sure is the envy of corporate lobbyists."
But Senator Patty Murray, Democrat of Washington, where Boeing has major production plants, said the arrangement was entirely defensible. She said the deal would not only help Boeing, which has laid off thousands since Sept. 11, but also enable the Air Force to replace an aging fleet of KC-135 tanker aircraft, used heavily in the war in Afghanistan. The agriculture appropriations bill, signed by Mr. Bush on Nov. 28, severely restricts the import of Vietnamese fish that compete with American catfish. Lawmakers from Mississippi, Alabama, Arkansas and Louisiana say Vietnamese basa fish are being dumped on the market.
Senator Tim Hutchinson, Republican of Arkansas, said the Food and Drug Administration had improperly let basa fish be labeled and sold as catfish. "The American consumer is being purposefully confused, and our domestic farm-raised catfish industries are on the brink of bankruptcy due in large part to the massive exports from Vietnam," he said. Mr. McCain said the import restrictions had been slipped into the bill at the behest of "wealthy catfish growers" in the United States and were "a troubling example of the parochialism we have urged the Vietnamese government to abandon" in its trade policy. -- __________________________
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