Publications :  The Watcher :  OMB Watcher Vol. 8: 2007 :  February 21, 2007 Vol. 8, No. 4 : 

In This Issue

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Congress Holds Hearings on Bush's Changes to Regulatory Process (02/21/2007)
Congress held back-to-back hearings Feb. 13 on President George W. Bush's Executive Order that amended the federal regulatory process. The first hearing primarily addressed the content of the amendments and the Good Guidance Practices Bulletin, both issued Jan. 18. The second hearing focused more on the legal and institutional challenges Bush's amendments raise.

FDA Drug Approval Process under Scrutiny (02/21/2007)
The U.S. Food and Drug Administration (FDA) is facing renewed criticism over the process by which it approves drugs for market. Recent reports indicate many drugs are approved before they are proven safe, and problems with the agency's structure and processes prevent it from fulfilling its mission. Subsequently, Congress has started using its oversight powers to scrutinize the agency, and the clamor for FDA reform is growing louder.

Grassroots Lobbying Survey Results Demonstrate Strong Support for Disclosure (02/21/2007)
In early February, OMB Watch conducted a week-long Internet survey on federal grassroots lobbying disclosure that asked respondents to express their support or opposition to a variety of disclosure principles. Over 1,100 people responded to the survey, and the results were clear: strong support exists for federal grassroots lobbying disclosure.

Court Upholds Islamic American Relief Agency Asset Freeze (02/21/2007)
On Feb.13, the U.S. Court of Appeals for the District of Columbia upheld a lower court decision that allowed the Treasury Department's Office of Foreign Assets Control (OFAC) to freeze the assets of the Missouri-based Islamic American Relief Agency. The court said the asset seizure was lawful because the court found the organization is an affiliate of a Sudanese group that was designated as a terrorist organization in 2004, making this the first case to allow such designation based solely on an alleged branch relationship. There was no finding that the U.S. group used funds to support terrorist activities, and no criminal charges have been filed.

Bills to Regulate Independent 527s Reintroduced (02/21/2007)
Sponsors of the Bipartisan Campaign Reform Act (BCRA) have reintroduced legislation they pushed in 2005 and 2006 to subject independent section 527 political organizations to the same contribution limits and regulation as federal campaigns and political parties, with identical bills in the House (H.R.420) and Senate (S.463).

Congress Finally Finishes FY 07 Appropriations (02/21/2007)
It took four extra months and a new Congress, but on Feb. 14, lawmakers finished the FY 2007 appropriations cycle when the Senate passed H.J.Res. 20.

Squabbling Over Tax Cuts Continues to Delay Minimum Wage Increase (02/21/2007)
On Feb. 16, by a vote of 360-45, the U.S. House of Representatives passed H.R. 976, a ten-year, $1.3 billion package of offset tax cuts designed to accompany a $2.10 per hour increase in the minimum wage. On Feb. 1, the Senate adopted S. 2 — including its own set of offset tax cuts totaling $8.3 billion over ten years. The two tax packages differ markedly in size and content, and S. 2 includes the minimum wage hike while H.R. 976 comprises only the tax provisions, which could complicate the procedural road ahead.

Congress Seeks to End IRS Privatization Program (02/21/2007)
Legislation has been introduced in the House and Senate that would halt an Internal Revenue Service (IRS) program that outsources certain tax collection responsibilities to private companies. The costly and dangerous program has been soundly criticized by Congress, the IRS National Taxpayer Advocate, and outside consumer groups since it began last fall.

Congress, White House Going in Opposite Directions on TRI (02/21/2007)
On Feb. 14, Sen. Frank R. Lautenberg (D-NJ) and Reps. Frank Pallone (D-NJ) and Hilda Solis (D-CA) announced companion bills to restore the Toxics Release Inventory (TRI) and undo the U.S. Environmental Protection Agency's (EPA) recently finalized reporting rollbacks. At the same time, President George W. Bush issued an executive order which may exempt all federal facilities from reporting requirements, resulting in another severe attack on the TRI program.

FOIA Reform Kicks Off in the House (02/21/2007)
The House Subcommittee on Information, Census and National Archives of the Government Oversight and Reform Committee held a hearing on the Freedom of Information Act (FOIA) Feb. 14. The hearing served as an update on the implementation of Executive Order 13392, which requires agencies to develop and implement FOIA improvement plans, and as an opportunity to air the virtues and vices of FOIA and possible legislative solutions to improve public access to information.

Congress Takes a Hard Look at Irresponsible Contractors (02/21/2007)
On Feb. 15, Sen. Byron Dorgan (D-ND) introduced the Honest Leadership and Accountability in Contracting Act, which is aimed at curbing abuse in government procurement and increasing competition and transparency. Concerns about federal contracts have been rising over the last few years as inquiries into contracts for Iraq reconstruction and Hurricane Katrina response have uncovered serious deficiencies or more questions.

DHS Receives Mixed Opinions on Proposed Chemical Security Rule (02/21/2007)
The Department of Homeland Security (DHS) received 89 comments, dominated by industry, in response to the proposed interim rule on chemical plant security. The rule establishes the first-ever federal chemical security program. Chemical companies and industry associations generally expressed strong support for the rule, whereas most public interest groups and government officials expressed great concern.

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