OMB Legislative Report -- June 9, 1998

from: Kate P.
to: WEINSTEIN D, LEVIN P, HOLSTEIN E, HOGAN L, MCKIERNAN K, RUDMAN M, OLIVER A, BENDICK G, ABRAMSON K, Alan B., Alicia K., Allan E., Alphonse Maldon, Andrew M., Anita, Anna M., Annette E., Barbara, Barry, Barry J. Toiv, Barry T., Brian A. Barreto, Bruce K. Sasser, Bruce N. Reed, Bruce W. McConnell, Carol, chandler g. spaulding, Charles, Charles E. Kieffer, Charles R. Marr, Constance J. Bowers, Daniel N. Mendelson, Dario J., David A., David E., David H., David J., Dianne M., Donald R. Arbuckle, Douglas B., Edward Brigham, Edward M., E. Holly, Elena Kagan, Elisa, Ellen J., Ellen J. Balis, Eric R., Eugene M., Francis S. Redburn, Gary C., Gary L. Bennethum, Gina C., Harry G. Meyers, Ingrid M. Schroeder, Jack A. Smalligan, Jacob J. Lew, Jake, James A. Brown, james b. kazel, James C. Murr, James J. Jukes, janelle e. erickson, Jane T., janet e. irwin, Janet L. Graves, Janet R. Forsgren, Janie L., Jeffrey A. Farkas, Jennifer, Jessica L., Jill M. Blickstein, John, John A., Jonathan, Jonathan H., Joshua, Judy, Julie E., Justine F. Rodriguez, Kate P., Kathleen, Kenneth L. Schwartz, Kevin S., Larry R. Matlack, Laura S. Marcus, Lawrence J., Linda, Lisa B., Lisa M., Louisa, Mark A., Martha, Maryanne B., Mary Jo, Mathew C. Blum, Melinda D. Haskins, Melissa N., Michael, Michael L. Goad, Mickey, Minarik, M. Jill Gibbons, Nancy E., Patricia E., Paul J. Weinstein, Paul J. Weinstein Jr., Peter A., Peter D., Peter Jacoby, Philip A., Philip R., Phillip, Rhodia D., Richard A., Richard J., Richard P. Emery, Robert, Robert D., Robert E., Robert G., Robert J., Robert M., Robert S., Robin J., Rodney G., Roger S., Ronald E., Ronald K., Ronald L., Ronald M., Rosemary, Ruby, Russell W. Horwitz, Sally, Sandra, Sean E., Shelley N. Fidler, Stephen G., Steven, Steven D. Aitken, Steven L., Susanne D., Suzanne, Sylvia M. Mathews, Theodore, T. J., Toni S. Hustead, Victoria, Wayne Upshaw, Wendy A., Wendy R., Wesley P.
      TO:               ACTING DIRECTOR JACK LEW
                    ACTING DEP: DIRECTOR FOR MANAGEMENT
                    ED DESEVE
                    EXECUTIVE ASSOCIATE DIRECTOR JOSH GOTBAUM

  FROM:   OMB LEGISLATIVE AFFAIRS



DATE:      JUNE 9, 1998

SUBJECT:           LEGISLATIVE REPORT

Lott on tax cuts: Last month Lott secured the votes of Ashcroft and four
other Senate conservatives to pass the Domenici budget resolution, by
promising to move toward the House tax cut number.   Yesterday Lott said
that could mean a conference agreement O&in the range of $60 to $70
billionOS although some of the conservatives are claiming he committed to
accepting the House level without change.   (The Senate-passed resolution
suggests $30b of gross tax cuts, but has no net tax cuts; the House has
net tax cuts of $100 billion.)

Tax Conferences:    Conferees are reportedly close to agreement on H;R.
2646, a bill to expand tax-favored education savings accounts to cover
primary and. secondary school expenses.    The IRS Reform conference is
continuing; Members will have a public meeting of the conferees tomorrow
at 4pm; staff expect the IRS conference to be wrapped up by the July 4
recess.

Tobacco: Senate failed to invoke cloture today 42-56 -- 18 votes short of
the required 60. The vote was party line except for Ford and Robb who
voted against cloture.   (Inouye and Specter didn't vote.)   A second
cloture vote will occur on Wednesday, and a third on Thursday.   Daschle
is pursuing a strategy of attempting to keep the Senate on tobacco through
cloture votes and opposing any attempts to move to other legislation.

TEA-21 Corrections:   Rockefeller is continuing to object to consideration
of the highway corrections bill unless he is permitted to offer an
amendment reversing the VA/Tobacco provisions.  LottO,s response has been
that he will insert the corrections in another bill O&where (he) canO,t
touch it.OS   This probably means a conference report, since conference
reports cannot be amended. A likely candidate would be the IRS Reform
conference report due to its broad support and virtual certainty of
passage before the recess.

CONGRESS -- TODAY (6/9):
SENATE:
Continued consideration of S. 1415 - Tobacco legislation and took the
following action:
o Failed (42-56) to invoke cloture on the substitute amendment.
o Adopted (52-46) Coverdell/Craig amendment on drug-free neighborhoods.-
o Rejected (45-53) the Daschle amendment to change the funding of drug
programs from tobacco revenues to general revenues.
HOUSE:
Adopted (392-22) the Senate-passed version of H.R. 2709 - Iran Missile
Proliferation Sanctions Act of 1997, to clear the measure for the
president.
[SAP sent, 6/5: Senior advisers veto recommendation]

Suspended the rules and took the following action:
o Adopted (415-0) H.Res. 417 - Regarding the Importance of Fathers in the
Raising and Development of their Children       [No SAP]
o Adopted (415-0) H.Res. 447 - Expressing the Sense of the House of
Representatives Regarding Financial Management by Federal Agencies       [No SAP]
o Adopted (voice) H.R. 352Q - Boundary Adjustments to Lake Chelan National
Recreation Area and Wenatchee National Forest in the State of Washington
         [No SAP: . Support]
o Adopted (415-2) H.R. 1635 - National Underground Railroad Network to


 Freedom Act of 1998
          [No SAP: Support]
 o Adopted (voice) H.R. 3662 - U.S. Holocaust Assets Commission Act of 1998
          [No SAP]
 o Adopted (voice) H.Res. 404 - Regarding the Relations between the People
 of the U.S. and the people of the Philippines
          [No SAP]
 o Adopted (411-0) H.Con.Res. 270 - Acknowledging the Positive Role of
 Taiwan in the Current Asian Financial Crisis and Affirming the Support of
 the American People for Peace and Stability on the Taiwan Strait and
 Security for TaiwanD,s Democracy
          [No SAP]

 CONGRESS -- TOMORROW (6/10)
 SENATE
 After the joint meeting to be addressed by the President of South Korea,
 the Senate will convene at 11am to resume consideration of S. 1415 -
 Tobacco legislation and immediately proceed to the 2nd cloture vote on the
 bill. Currently, marriage tax penalty relief amendments are pending.

 HOUSE
 Convene at 9am and recess immediately for a joint meeting to receive the
 President of South Korea.

 H.R. 3150 - Bankruptcy Reform ,Act of 1998 (Subject to a rule)
          [SAP under development]

 H.R. 2888 - Sales Incentive Compensation Act (Subject to a rule)
          [SAP sent, 6/9: Oppose]

 CONGRESS -- THIS WEEK
 SENATE
 Thursday, June 11 & Friday, June 12:
 Continue consideration of S. 1415 - Tobacco legislation. (Pending the
 outcome of WednesdayD,s cloture vote, a third cloture vote could take
 place on Thursday.)

 Continue consideration of S. 2060 - DoD Authorization (possible)
         [SAP sent, 5/14: Cites concerns]

 Consider DoD Appropriations, FY 1999 (possible)
         [SAP under development]

 Consider S. 1882 - Higher Education Amendments of 1998   (possible Friday)
         [SAP under development]

 HOUSE
 Thursday, June 11:
 Convene at lOam for legislative business.

 H.R. 3494 - Child Protection and Sexual Predator Punishment Act of 1998
 (Subject to a rule)
          [SAP under development: Support]

 continue consideration of H.R. 2183 - Bipartisan Campaign Integrity Act of
 1997
         [POTUS letter sent, 5/20: POTUS supports Shays/June/Meehan
                 substitute]

 Friday, June 12


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