Washington Watch
June 2008
Court Delays Enforcement of Oklahoma Immigration Law
A U.S. District Court judge postponed enforcement of employer related portions of an Oklahoma immigration law because it is “substantially likely” that the provisions of the law unconstitutionally interfere with federal regulation of the employment of unauthorized workers. Joining as co-plaintiffs are the State Chamber of Oklahoma, Greater Oklahoma City Chamber, Tulsa Metro Chamber, Oklahoma Restaurant Association and Oklahoma Hotel and Lodging Association. A final judgment in Chamber of Commerce of the United States et al. v. Henry is still pending.
“We applaud the court’s decision to delay enforcing these portions of Oklahoma’s immigration law. Through harsh civil penalties, the Oklahoma law unfairly shifts the burden of immigration enforcement from government onto the backs of businesses,” said Robin Conrad, executive vice president of the National Chamber Litigation Center (NCLC), which represents the U.S. Chamber in the litigation. “Piecemeal state legislation is not the answer to our nation’s immigration problems.”
The Oklahoma law requires employers doing business with the state to use the “Basic Pilot
Program” (also known as “E-Verify”), the federal government’s voluntary and error-riddled experimental program for electronically verifying work eligibility. The court’s decision to issue a preliminary injunction was based on its finding that it is “substantially likely” that the state law unconstitutionally imposes civil sanctions on employers who fail to comply. The Oklahoma law’s sanctions include increased tax rates, the loss of contracts, and exposure to litigation if an employer “should have known” that an employee was unauthorized to work.
“Conflicting state and local immigration laws are overwhelming American businesses,” Conrad said. “Last year alone, over 240 employer-related immigration bills were introduced by at least 45 states. It’s time for Congress to enact comprehensive immigration reform.”
Click here to view the preliminary injunction order.
Lieberman Warner Climate Security Act Fails to Receive Votes
On Friday, June 6, the Senate voted on the Boxer substitute amendment to S. 3036, the Lieberman Warner Climate Security Act of 2007 (formerly S. 2191). In a 48-36 vote, the Senate did not produce the 60 votes needed to advance this legislation.
Business and industry groups, including the Arkansas State Chamber/AIA, voiced opposition to the Lieberman Warner bill because of the harmful economic impact it would have both nationally and in Arkansas on energy costs, economic growth and employment.
Now that the Senate has completed debate, House Minority Leader John Boehner (R-OH) has asked Speaker Nancy Pelosi to take up the House version of climate change legislation, introduced by Rep. Ed Markey (D-MA). Although floor time to consider this measure has not yet been scheduled, the House committees of jurisdiction are expected to continue to hold hearings and issue white papers on climate-related legislation.
While no further action is likely in the Senate this year, another bill is expected to be addressed early in the next Congress.
Farm Bill Update
The farm bill hit an unexpected snag when news of an enrolling error overshadowed the veto override. An error in processing omitted the trade title from the bill that the President vetoed and House subsequently voted on. This means the President vetoed a different bill than the one originally passed by the House and Senate. Despite this glitch, the Senate decided to vote to override the veto of the incomplete bill. With this vote complete, 14 of the 15 titles of the farm bill (all except Title III) became law when Congress voted to override the Presidential veto on H.R. 2419 the week of May 19 (316-108 in the House and 82-13 in the Senate).
The parliamentarian ruled the process would have to begin anew. In order to correct the previous enrolling error, the House voted again May 22 on the complete conference report with a new bill number (H.R. 6124), and it passed on suspension with a vote of 306-110. Despite the new bill number, this bill is identical to H.R. 2419. The Senate took action after returning from the Memorial Day recess, passing the bill 77-15 on June 5. President Bush is expected to veto the bill in short order. The House and Senate then will both have to override the veto of the complete bill to end the process.
Saudi Arabia Calls for Meeting With Oil Consumers
The New York Times on June 10 reported that "Saudi Arabia, the world's biggest oil exporter, wanted to convene an energy summit of producers and consumers to focus on 'how to objectively deal' with high prices." The Saudi Arabian government said, "The increase in prices isn't justified in terms of market fundamentals." The announcement is seen as a continuation of "increasingly mixed signals in recent months [by Saudi Arabia], even as the run-up in oil prices has reached levels that would have seemed unimaginable just a few months ago." Previously, "the Saudi monarch signaled that the kingdom would slow down oil expansion to preserve its hydrocarbon resources for future generations."
USA Today added that Saudi Arabian Information and Culture Minister Iyad Madani said the country has told "all oil companies it deals with, as well as countries that consume oil that (the kingdom) is ready to provide them with any additional oil they need." In light of a possible meeting, however, "Jim Ritterbusch, president of the U.S.-based energy consultancy Ritterbusch and Associates, cautioned that such meetings have taken place in the past and the announcement could be an effort to calm the market without taking concrete measures."
The Wall Street Journal noted that officials in the Organization of Petroleum Exporting Countries (OPEC) "have latched on to reports pointing to a fall in crude-oil demand as sharply higher energy and commodity prices and cooling housing markets take their toll on consumers world-wide." OPEC believes "the slumping global economy will push demand lower this year," and therefore is not inclined to boost output.
Reuters recalled that in April, oil producers and consumers met, but "failed to produce any concrete measures to tame high oil prices that have since surged as much as $20 a barrel." Currently, "Saudi Arabia is the only member of [OPEC] with spare capacity, of about two million barrels per day, to boost output quickly and significantly."
U.S. Treasury Secretary Henry Paulson "welcomed [the] call by oil-rich Saudi Arabia for talks with energy-hungry consumer nations," according to the AFP. Paulson "also expressed confidence in the long-term performance of the U.S. economy and said he was looking forward to meetings with Chinese officials next week." In regard to the oil meeting, Paulson said, "It's got to be constructive. So I welcome it. I think that the solutions to the big problem are longer-term solutions in terms of investing in supply and alternative sources of energy."
Labor Legislation Remains a Priority on Senate Agenda
Senate Majority Leader Harry Reid (D-NV) announced last week that bills topping organized labor's wish list will see Senate floor action in coming weeks. The bills topping Reid's agenda face unlikely odds of being passed, a fact that suggests the move is an effort to put key minority Senators on the record in light of November's upcoming elections. Included in the bills Reid plans to consider: legislation to expand collective bargaining rights for public safety employees; an unemployment insurance extension and moratorium on seven proposed Medicaid regulations; strengthened penalties for workplace safety violations; an expansion of family and medical leave; and the defeat of pending trade agreements. Senator Edward Kennedy (D-MA), chairman of the Health, Education, Labor and Pensions Committee, also intends to seek another floor vote on legislation intended to bolster the right of workers to sue employers for wage discrimination before the November elections.
House Subcommittee Discusses Nation's Highway Infrastructure
Members of the House Transportation and Infrastructure Subcommittee on Highways and Transit met on June 5 to hear testimony regarding the investment levels and federal policies necessary to maintain the nation's existing highway infrastructure. This hearing is part of the subcommittee's recent effort to prepare for the reauthorization of federal surface transportation programs under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) which is set to expire in September 2009. During the hearing, state departments of transportation, public transit agencies and other public offices responsible for maintaining transportation infrastructure will discuss needed investments and strategies in meeting those needs.
Senate Committee Examines Rising Health-Care Costs
In the second in a series of hearings on America 's rising health-care costs, the Senate Finance Committee last week listened to testimony on Health IT, quality of care and medical liability law reform. The series of committee hearings is aimed at gearing up legislators for a "major health system overhaul" effort to come next year. Committee Chairman Max Baucus (D-MT) said that through these various hearings and in witness testimony, he hopes to be able to achieve what previous Congresses and presidents have failed to do—finding affordable, high-quality health care for all Americans.
Senators Block Vote on Bill to Tax Windfall Oil-Profits
On the front page of its June 11 Business section, the Washington Post reported that, on Tuesday, Senate Republicans "blocked a proposal to tax the windfall profits of the nation's biggest oil companies and eliminate some of the firms' tax breaks, rejecting Democratic claims that the measure would help assuage consumer anger over $4-a-gallon gasoline." In a "largely partisan" vote, the "Senate fell nine votes short of the 60 required to proceed to debate on the Democrat-sponsored energy measure, which would have erased $17 billion in tax breaks for oil companies over 10 years and created a levy on 'unreasonable' profits collected by the five largest U.S. oil companies. Only six Republicans voted to move ahead."
The Wall Street Journal noted that the "escalating public confrontation over where to fix blame for oil's run-up" between Congress and the oil industry may end well for the oil industry, by possibly leading to "an easing of restrictions on domestic drilling." Many "industry lobbyists hope exploration will prove newly palatable to Democrats who are under pressure from voters as well as lobbyists from airline, trucking and manufacturing industries."
USA Today /AP added that, in defense of the bill, Sen. Byron Dorgan (D-ND) "said Americans want Congress to do something about oil company profits and the 'orgy of speculation' on oil markets." Republicans, however, "argued that little was to be gained by imposing new taxes on the five U.S. oil giants: ExxonMobil, Chevron, Shell Oil, BP America and ConocoPhillips." Although "these companies may be huge, they don't set world oil prices and raising their taxes would discourage domestic oil production, the Republicans said of the Democrats' plan."
Along with the oil-tax measure, the Senate voted on "a proposal to amend the Internal Revenue Code by providing 'incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief, and for other purposes,'" according to the New York Times. "The vote to take up that legislation was 50-44 or 10 'yes' votes fewer than necessary."
While "Senate Republicans say the solution to America's energy crisis must include more investment in domestic sources of energy," the Christian Science Monitor reported, "some GOP moderates worry that members of their party are looking like obstructionists on issues at the top of voters' concerns."
The Houston Chronicle pointed out that the "vote came as the U.S. Energy Information Administration predicted gasoline prices, which topped $4 a gallon nationwide this week, would peak at $4.15 a gallon in August and average $3.78 for all of 2008."
