Publications :  The Watcher :  OMB Watcher Vol. 8: 2007 :  August 7, 2007 Vol. 8, No. 16 : 

In This Issue

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Congress Passes Sweeping Lobbying and Ethics Reforms (08/07/2007)
After a year-long debate and negotiations over enacting lobbying and ethics reforms, Congress finally passed the Honest Leadership and Open Government Act of 2007 (S. 1). While not an ideal set of reforms, the new law is the most significant lobbying and ethics reform in a decade and should make important strides in increasing accountability and transparency in Washington.

Senate Committees OK Nussle (08/07/2007)
On July 31 and Aug. 2, the Senate Homeland Security and Governmental Affairs and Budget Committees approved the nomination of former Rep. Jim Nussle (R-IA) to serve as Office of Management and Budget (OMB) Director, by votes of 16-0 and 22-1, respectively. Senate Majority Leader Harry Reid (D-NV) has scheduled a floor vote on the nomination for Sept. 4.

Congress Approves Fiscally Responsible Expansion of Children's Health Insurance (08/07/2007)
During the week of July 30, the House and Senate passed different versions of a reauthorization and expansion of the State Children's Health Insurance Program (SCHIP) that will expand health care coverage to millions of uninsured children across the country. The Senate version would extend coverage to about four million additional children, while the House version would add five million children and root out excess costs in the Medicare Advantage program, which privatizes health insurance but at a higher cost than traditional Medicare coverage. President Bush has threatened to veto both bills.

President's Warrantless Wiretapping Authority Vastly Expanded (08/07/2007)
Just before Congress broke for its August recess, members vastly expanded the Bush administration's authority to wiretap communications without warrants.

TRI Restoration Bill Passes Senate Committee (08/07/2007)
The Senate Environment and Public Works Committee voted 10-9 to approve the Toxic Right-to-Know Protection Act (S. 595) on July 31. The act would reverse a December 2006 U.S. Environmental Protection Agency rule change to the Toxics Release Inventory (TRI) that significantly reduced toxic release reporting requirements for polluting facilities.

Senate Passes FOIA Reform (08/07/2007)
On Aug. 3, the Senate passed the OPEN Government Act of 2007 (S. 849) by unanimous consent. The House passed similar legislation in March.

House Committee Holds Hearing on Abuse of Information (08/07/2007)
A July 31 House Natural Resources Committee hearing continued to investigate reports of science manipulation within the U.S. Department of the Interior. Much of the hearing focused on the 2002 Klamath salmon die-off and former U.S. Fish and Wildlife Service (FWS) Deputy Assistant Secretary Julie MacDonald's interference in Endangered Species Act (ESA) findings.

OIRA Issues New Standards for Disseminating Statistical Information (08/07/2007)
Citing various sources of authority, including the Information Quality Act, the Office of Information and Regulatory Affairs (OIRA) at the Office of Management and Budget published a new draft Statistical Policy Directive on Aug. 1, focusing on disclosure standards. OIRA uses Statistical Policy Directives to establish government-wide standards for statistical activities conducted by agencies.

Toy Recalls Bring Attention to Commission's Inadequacies (08/07/2007)
The Aug. 2 recall by Mattel, Inc. of 1.5 million toys that may contain excessive levels of lead paint once again calls into question the Consumer Product Safety Commission's (CPSC) voluntary approach to regulating industry. Mattel's recall follows the June recall of 1.5 million toys by the RC2 Corp. for the same lead-based paint danger.

OMB Manipulates Science in Cost-Benefit Analysis for Ozone Rule (08/07/2007)
The U.S. Environmental Protection Agency (EPA) has released a cost-benefit analysis for a proposed rule aiming to tighten the federal standard for human exposure to ground-level ozone, also known as smog. Before its release, the White House Office of Management and Budget (OMB) edited scientific language in the analysis in order to downplay the economic benefits of the proposed rule.

Size Matters: Nanotechnologies Present New Challenges (08/07/2007)
Three documents released since July 26, and a recent public hearing, highlighted the difficulties of promoting promising new nanotechnologies, protecting public health and safety, and safely disposing of waste products from their use and manufacturing. Nanotechnology involves manipulating matter the size of one-billionth of a meter or 100,000 times smaller than the width of a human hair. In 2005, more than $30 billion in nanotechnology products were sold globally, according to the Project on Emerging Nanotechnologies (PEN) at the Woodrow Wilson International Center for Scholars.

Senate Bill Bans States from Limiting Nonprofit Voter Registration Drives (08/07/2007)
On July 25, the Senate Rules Committee held a hearing on an election reform bill that includes a provision that would prevent states from placing undue restrictions on voter registration drives by nonprofits. During the last several years, there has been an increase in the number of voters registered through voter registration drives conducted by charities and other third parties, such as the League of Women Voters and ACORN. Discussion of the bill before the committee — the Ballot Integrity Act of 2007 (S. 1487) — largely focused, however, on provisions that mandate paper records for all electronic voting machines.

Panel Discussion Focuses on Need for Clear Rules for 501(c)(3) Groups at Election Time (08/07/2007)
On Aug. 3, OMB Watch sponsored a panel discussion to address the pros and cons of creating a bright line rule defining what is and is not prohibited partisan intervention in elections by charities and religious organizations. The panelists addressed problems created by the current "facts and circumstances" test, which allows the Internal Revenue Service (IRS) to apply its interpretation of the standard on a case by case basis. They also discussed action the nonprofit sector can take to propose and promote a bright line test.

House Hearing on Nonprofits Sees the Positive (08/07/2007)
The House Ways and Means Subcommittee on Oversight, led by Chairman John Lewis (D-GA), held a hearing July 24 on tax-exempt charitable organizations. Lewis praised charities and foundations, acknowledging they "make up the very fabric of our communities. They know the deepest human needs of our friends and neighbors and they know the solutions that work." Other members spoke positively about the work of nonprofits, referencing successful groups in their districts. The opening remarks of Rep. Bill Pascrell (D-NJ) challenged the Department of Treasury's assertion that charities are a "significant source of terrorist funding," observing that Treasury seems to be "painting the sector with a wide brush." Committee members focused on what could be done to promote charitable giving and increase volunteerism.

FBI Raids Two U.S. Muslim Charities on Eve of Holy Land Trial (08/07/2007)
On July 24, the Goodwill Charitable Organization (GCO) of Dearborn, MI, was added to the Department of Treasury's Specially Designated Nationals (SDN) list for alleged ties to Hezbollah. As a result, the group's assets have been frozen and U.S. citizens are barred from conducting any transactions with the organization. The office of Al-Mabarrat Charitable Organization was also searched and files removed, but the organization was not designated as a supporter of terrorism and continues to operate. The designation and raids occurred the same day as opening arguments in a high profile criminal trial involving a Muslim charity, the Holy Land Foundation. It appears the government relied on information from a former Treasury official whose credibility has been challenged in at least two instances.

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