Capital Thinking ~ April 22, 2013

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Capital Thinking ~ April 22, 2013

  1. 1. Patton Boggs Capital Thinking Weekly Update | April 22, 20131 of 18April 22, 2013
  2. 2. Patton Boggs Capital Thinking Weekly Update | April 22, 20132 of 18Capital Thinking: Contents(Press ctrl + left click to follow link to section)General Legislative .......................................................................................................3Agriculture and Food....................................................................................................3Budget and Appropriations..........................................................................................4Cybersecurity................................................................................................................5Defense..........................................................................................................................6Energy ...........................................................................................................................7Environment..................................................................................................................9Financial Services.......................................................................................................10Health Care..................................................................................................................12Homeland Security......................................................................................................14International ................................................................................................................16
  3. 3. Patton Boggs Capital Thinking Weekly Update | April 22, 20133 of 18General LegislativeTomorrow, Tuesday, April 23, the House will meet at 12:00 pm for morning hour and 2:00 pm forlegislative business. Votes will be postponed until 6:30 pm. Legislation Considered UnderSuspension of the Rules will include: (1) H.R. 1067 - To make revisions in title 36, United StatesCode, as necessary to keep the title current and make technical corrections and improvements;and (2) H.R. 1068 - To enact title 54, United States Code, "National Park Service and RelatedPrograms", as positive law. On Wednesday, April 24, the House will meet at 10:00 am for morninghour and 12:00 pm for legislative business. Legislation Considered Under Suspension of theRules will include: (1) H.R. 360 - To award posthumously a Congressional Gold Medal to AddieMae Collins, Denise McNair, Carole Robertson, and Cynthia Wesley, in recognition of the 50thcommemoration of the bombing of the Sixteenth Street Baptist Church where the 4 little Blackgirls lost their lives, which served as a catalyst for the Civil Rights Movement, as amended ; and(2) H.R. 1071 - To specify the size of the precious metal blanks that will be used in the productionof the National Baseball Hall of Fame commemorative coins. H.R. 1549 - Helping Sick AmericansNow Act, Rules Committee Print, may also be considered. On Thursday, April 25, the House willmeet at 10:00 am for morning hour and 12:00 pm for legislative business. On Friday, April 26, theHouse will meet at 9:00 am for legislative business, and last votes are expected no later than 3:00pm. Legislation under consideration will include H.R. 527 - Responsible Helium Administrationand Stewardship Act, Rules Committee Print (Subject to a Rule).The Senate will convene today, April 22, at 2:00 pm and being a period of morning business.Thereafter, the Senate will resume consideration of a motion to proceed to S. 743, the MarketplaceFairness Act.Agriculture and FoodLEGISLATIVE ACTIVITY Farm Bill Timeline. The House Agriculture Committee has scheduled its markup of the Farm Bill forWednesday, May 15. Immigration Reform. Last Wednesday, the Senate Gang of Eight released its 844-pagecomprehensive immigration bill. The bill would create a new farmworker visa program that wouldprovide green cards in five years for those workers who have already spent two years in the U.S.agricultural industry. This would mean a faster path to citizenship for farmworkers. The bill hasalready faced some resistance from Senators Jeff Sessions (R-AL) and David Vitter (R-LA), whodenounced the bill in a news conference and said that they would not rule out a filibuster on it.
  4. 4. Patton Boggs Capital Thinking Weekly Update | April 22, 20134 of 18House Judiciary Committee Chairman Bob Goodlatte (R-VA) has signaled that he intends to modifythe legislation to strengthen provisions on border security, and to change the guest worker program tobetter meet farmers’ needs. This Week’s Hearings:o Wednesday, April 24: The House Agriculture Subcommittee on Horticulture, Research,Biotechnology and Foreign Agriculture will hold a hearing on the “2013 Farm Bill: HorticulturePriorities.”o Wednesday, April 24: The House Appropriations Subcommittee on Agriculture, RuralDevelopment, and FDA will hold its hearing on “2014 Appropriations: Agriculture, Rural,FDA.”o We expect the Senate Judiciary Committee to mark up the Senate’s comprehensiveimmigration bill in May. Senator Charles Schumer (D-NY) has said Majority Leader HarryReid (D-NV) would bring the legislation to the floor in June.Contact InformationFor additional insights about likely policy developments, please feel free to contact the authors of thissection: Dana Weekes at 202-457-6307 or dweekes@pattonboggs.com, and Karen Kudelko at 202-457-5132 or kkudelko@pattonboggs.com.Budget and Appropriations Congressional FY 2014 Appropriations Activity. Senate and House AppropriationsSubcommittees will continue to hold FY 2014 budget hearings on their agencies of jurisdiction thisweek. The Senate Appropriations Committee hearing schedule can be found at:www.appropriations.senate.gov. The House Appropriations Committee hearing schedule can befound at: www.appropriations.house.gov. Office of Management and Budget Director Nomination. Following Senate Budget Committee andHomeland Security and Governmental Affairs Committee approvals last week, the Senate is poised tovote on – and likely approve – the nomination of Sylvia Matthews Burwell as Director of the WhiteHouse Office of Management and Budget (OMB) as early as this week. Ms. Burwell served as deputydirector of OMB under President Bill Clinton and most recently served as president of the WalmartFoundation.Contact InformationFor additional insights about likely policy developments, please feel free to contact the author of thissection: Pam Welsh, at 202-457-6493 or pwelsh@pattonboggs.com.
  5. 5. Patton Boggs Capital Thinking Weekly Update | April 22, 20135 of 18CybersecurityLEGISLATIVE BRANCH ACTIVITY House Cybersecurity Action. Last week, the House passed four pieces of legislation related tocybersecurity. Three non-controversial bills were easily passed on a widely bipartisan basis, includingthe Cybersecurity Enhancement Act (H.R. 756); the Advancing America’s Networking and InformationTechnology Research and Development Act (H.R. 967); and the Federal Information SecurityAmendments Act (H.R. 1163).The final bill was the Cyber Intelligence Sharing and Protection Act (CISPA/H.R. 624) which has beenvery controversial as evidenced by the veto threat that the White House issued for the second year ina row. The White House Statement of Administration Policy (SAP) stated that the President’sadvisors would recommend that he veto the bill if it were to reach his desk. Several amendmentswere adopted on the floor in order to address the White House’s concerns over privacy and civilliberties but these changes are likely not enough to persuade the President to support the bill. As inthe last Congress, the Senate said it will not take up the CISPA bill but Senate Intelligence Committeeleaders have indicated that the Committee will be drafting its own information sharing bill in thecoming weeks. This Week’s Hearings:o Thursday, April 25: The House Homeland Security Committee is also currently working todraft a cybersecurity bill this Congress. In order to inform its efforts, the Subcommittee onCybersecurity, Infrastructure Protection, and Security Technologies will hold a hearing todiscuss issues related to the cybersecurity of critical infrastructure. The hearing is titled“Striking the Right Balance: Protecting our Nation’s Critical Infrastructure from Cyber Attackand Ensuring Privacy and Civil Liberties.” The Subcommittee has not yet named thewitnesses that will testify at the hearing.EXECUTIVE BRANCH ACTIVITY Department of Commerce Notice of Inquiry. As the National Institute of Standards andTechnology develops its Cybersecurity Framework for critical infrastructure as part of the President’sExecutive Order, the Department of Commerce is seeking industry comments on how best toincentivize companies to participate in this voluntary cybersecurity program. Comments are due onMonday, April 29.Contact InformationFor additional insights about likely policy developments, please feel free to contact the authors of thissection: Norma Krayem, 202-457-5206 or nkrayem@pattonboggs.com; or Amy Davenport, at 202-457-6528 or adavenport@pattonboggs.com.
  6. 6. Patton Boggs Capital Thinking Weekly Update | April 22, 20136 of 18DefenseEXECUTIVE AND LEGISLATIVE BRANCH ACTIVITY North Korea. Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey departed Washington lastweekend for his planned trip to China. He included a stop in South Korea last Sunday. The mainfocus of Gen. Dempsey’s discussions in Beijing and Seoul will be North Korea. Pentagon Budget. In testimony before Congress last week, Pentagon officials indicated theDepartment of Defense is reassessing and shifting its acquisitions approach. Chairman of the JointChiefs of Staff Gen. Dempsey testified before the House Defense Appropriations Subcommittee,telling Rep. Jo Bonner (R-AL): “You’re going to see some pretty dramatic changes based on the earlyindicators, of things that are not multi-role will be very difficult to invest in.” Currently, the Pentagon isin the process of reviewing and establishing new priorities and standards for future weaponsacquisitions investments. According to Secretary of Defense Chuck Hagel who testified before theSenate Armed Services Committee, the investment and force structure review being conducted byDeputy Defense Secretary Ash Carter and Gen. Dempsey is expected to be completed by May 31.Keeping the sequester-level cuts in mind, Secretary Hagel said, “I directed a strategic choices andmanagement review in order to assess the potential impact of further reductions.” This Week’s Hearings:o Tuesday, April 23: The Senate Armed Services Committee will hold a hearing on the“Department of the Army and the Fiscal Year (FY) 2014 National Defense AuthorizationBudget Request.”o Tuesday, April 23: The Senate Armed Services Subcommittee on Emerging Threats andCapabilities will hold a hearing on “Proliferation Prevention Programs at the Department ofEnergy and at the Department of Defense in review of the Defense Authorization Request forFY 2014 and the Futures Years Defense Program.” Note: Following the open session to thepublic, there will be a closed session.o Tuesday, April 23: The House Armed Services Subcommittee will hold a hearing on “PostIraq and Afghanistan: Current and Future Roles for UAS and the FY 2014 National DefenseAuthorization Budget Request.”o Wednesday, April 24: The Senate Armed Services Subcommittee on Personnel will hold ahearing on “Active, Guard, Reserve, and Civilian Personnel Programs and the FY 2014National Defense Authorization Budget Request.”o Wednesday, April 24: The Senate Armed Services Subcommittee on Readiness andManagement Support will hold a hearing on “Military Construction, Environmental, and BaseClosure Programs in review of the Defense Authorization Request for FY 2014 and theFutures Years Defense Program.”
  7. 7. Patton Boggs Capital Thinking Weekly Update | April 22, 20137 of 18o Wednesday, April 24: The Senate Armed Services Subcommittee on Strategic Forces willhold a hearing on “Military Space Programs and Views on DoD Usage of the ElectromagneticSpectrum and the FY 2014 National Defense Authorization Budget Request FY 2014National Defense Authorization Budget Request.”o Wednesday, April 24: The Senate Armed Services Subcommittee on Airland will hold ahearing on “Tactical Aircraft Programs and the FY 2014 National Defense AuthorizationBudget Request.”o Wednesday, April 24: The House Armed Services Subcommittee on Seapower andProjection Forces will hold an oversight hearing of “U.S. Naval and U.S. Air Force AcquisitionPrograms in the FY 2014 National Defense Authorization Budget Request.”o Wednesday, April 24: The House Armed Services Subcommittee on Readiness will hold ahearing on “The Readiness Posture of the U.S. Air Force.”o Wednesday, April 24: The House Armed Services Subcommittee on Military Personnel willhold a “Status of Implementation of the Requirements of the VOW Act and theRecommendations of the Presidential Veteran Employment Initiative Task Force for the DODTransition Assistance Program.”o Thursday, April 25: The Senate Armed Services Committee will hold a hearing on the“Department of the Navy and the FY 2014 National Defense Authorization Budget Request.”o Thursday, April 25: The House Armed Services Committee will hold a hearing on the“Department of the Army and the FY 2014 National Defense Authorization Budget Request.”Contact InformationFor additional insights about likely policy developments, please feel free to contact the authors of thissection: Stacy Swanson, at 202-457-5627 or sswanson@pattonboggs.com; and Mary Beth Bosco, at202-457-6420 or mbbosco@pattonboggs.com.EnergyLEGISLATIVE ACTIVITY Energy Secretary. The Senate Energy and Natural Resources Committee favorably reported thenomination of Dr. Ernest Moniz to be the next Secretary of Energy to the full Senate. He is expectedto be confirmed. This Week’s Hearings:o Tuesday, April 23: The Senate Energy and Natural Resources Committee will hold alegislative hearing to consider pending energy efficiency and hydropower bills.
  8. 8. Patton Boggs Capital Thinking Weekly Update | April 22, 20138 of 18o Wednesday, April 24: The House Natural Resources Committee will markup H.R. 3, toexpedite approval of the Keystone XL pipeline.o Thursday, April 25: The Senate Energy and Natural Resources Committee will explore theeffects of drought on energy and water management practices.o Thursday, April 25: A Subcommittee of the House Natural Resources Committee will hold anoversight hearing on the U.S.-Mexico Transboundary Hydrocarbon Agreement (H.R. 1613).o Thursday, April 25: A House Foreign Affairs Subcommittee will hold a hearing on theeconomic and geopolitical opportunities from natural gas exports.REGULATORY ACTIVITY Nuclear. The Nuclear Regulatory Commission’s Advisory Committee on Reactor Safeguardsmeeting has been moved from April 24 to April 23. PCAST. The President’s Council of Advisors on Science and Technology will next meet at theDepartment of Energy’s Office of Science on May 3 to provide information on research initiatives inneuroscience and technology’s impact on productivity and employment. CTAC. The Chemical Transportation Advisory Committee will next meet May 7-9 in Arlington,Virginia to discuss marine transportation of hazardous materials – including recommended safetystandards for the design of vessels carrying natural gas. Coal. The National Coal Council will next meet May 16-17 in Washington, DC. Pipelines. The Pipeline and Hazardous Materials Safety Administration has revised the maximumand minimum civil penalty amounts for known violations of federal hazardous material transportationrules. Distribution Transformers. DOE has adopted more stringent energy conservation standards fordistribution transformers. The final rule becomes effective on June 17; compliance is required byJanuary 1, 2016.Contact InformationFor additional insights about likely policy developments, please feel free to contact the author of thissection: Tanya DeRivi, at 202-457-6504 or tderivi@pattonboggs.com.
  9. 9. Patton Boggs Capital Thinking Weekly Update | April 22, 20139 of 18EnvironmentLEGISLATIVE ACTIVITY This Week’s Hearings:o Tuesday, April 23: The Senate Committee on Commerce, Science and Transportation,Subcommittee on Oceans, Atmosphere, Fisheries and Coast Guard, will hold a hearing toreview the Presidents Fiscal Year 2014 budget requests for the National Oceanic andAtmospheric Administration and the U.S. Coast Guardo Tuesday, April 23: The Senate Committee on Energy and Natural Resources will hold ahearing to examine bills concerning hydropower: S.306 would authorize all Bureau ofReclamation conduit facilities for hydropower development under Federal Reclamation law,and S.545, would promote hydropower projects and include a study on the improvement ofhydropower.o Wednesday, April 24: The Senate Committee on Appropriations, Subcommittee onDepartment of the Interior, Environment and Related Agencies, will hold a hearing to examineproposed budget estimates for fiscal year 2014 for the U.S. Environmental Protection Agency(EPA).o Thursday, April 25: The Senate Committee on Energy and Natural Resources will hold ahearing to examine drought and the effect on energy and water management decisions.o Thursday, April 25: The House Committee on Natural Resources, Subcommittee on Energyand Mineral Resources, will hold an oversight hearing entitled, “U.S.-Mexico TransboundaryHydrocarbon Agreement and Steps Needed for Implementation.” The Subcommittee will alsohold a legislative hearing on H.R. 1613, which would amend the Outer Continental ShelfLands Act to provide federal management and oversight of transboundary hydrocarbonreservoirs.o Thursday, April 25: The House Committee on Natural Resources, Subcommittee on Waterand Power, will hold an oversight hearing on water rights in conjunction with job creation.REGULATORY ACTIVITY Greenhouse Gas Emissions Report. EPA has published its 18th annual report of overall U.S.greenhouse gas (GHG) emissions showing a 1.6 percent decrease in 2011 from the previous year,and a 6.9 percent drop in GHG below 2005 levels. Titled, The Inventory of U.S. Greenhouse GasEmissions and Sinks: 1990-2011 the report is the latest that the United States has submitted to theUnited Nations Framework Convention on Climate Change since it was ratified by the United Statesin 1992. The report tracks total annual U.S. emissions and removals (sinks) by source and economicsector to provide an accounting of total greenhouse gas emissions for all man-made sources in the
  10. 10. Patton Boggs Capital Thinking Weekly Update | April 22, 201310 of 18United States. The report addresses trends in GHG across the following areas: energy, industrialprocesses, solvents, agriculture, land use and waste. The report also takes into consideration“sinks”, which account for carbon dioxide emissions removed from the atmosphere through theuptake of carbon by forests, vegetation, soils and other natural processes. An executive summary ofthe report can be accessed at: http://www.epa.gov/climatechange/Downloads/ghgemissions/US-GHG-Inventory-2013-ES.pdf The full report can be accessed at:http://www.epa.gov/climatechange/Downloads/ghgemissions/US-GHG-Inventory-2013-Main-Text.pdf National Forest System Land Management Planning. The U.S. Department of Agriculture hasannounced that the National Advisory Committee for Implementation of the National Forest SystemLand Management Planning Rule will meet in Fort Collins, Colorado on May 7-9. The purpose of thecommittee is to provide advice and recommendations on the implementation of the National ForestSystem Land Management Rule, and the meeting is open to the public. The following business willbe conducted: (1) Initial deliberations on formulating advice for the Secretary on the Proposed LandManagement Planning Directives, (2) discuss findings from committee working groups, and (3)administrative tasks. Related matters are welcome, and must be provided in advance by filing writtenstatements with the committee staff before the meeting. Comments can be sent via email toChalonda Jasper at cjasper@fs.fed.us. The meeting will be held on May 7–9, 2013, from 8:30 a.m. to6:00 p.m. on Tuesday, 8:30 a.m. to 5:30 p.m. on Wednesday, and 8:30 a.m. to 1:30 p.m. onThursday, Mountain Time. The meeting will be held at the Hilton Fort Collins, 425 West ProspectRoad, Fort Collins, Colorado 80526.Contact InformationFor additional insights about likely policy developments, please feel free to contact the author of thissection: Sarah Vilms, at 202-457-5248 or svilms@pattonboggs.com.Financial ServicesLEGISLATIVE ACTIVITY Senate Minority Leader McConnell Questions Legitimacy of CFPB Actions. Senate MinorityLeader Mitch McConnell (R-KY) stated that a recent court decision that found President Obama’srecess appointments to the National Labor Relations Board to be unconstitutional also raisesquestions about the legitimacy of regulatory actions taken by the CFPB, which has been led byrecess-appointed Richard Cordray. Chairman of the House Financial Services Committee JebHensarling (R-TX) indicated he plans to offer legislation that would change the structure of the CFPBfrom director-led to a multi-person committee.
  11. 11. Patton Boggs Capital Thinking Weekly Update | April 22, 201311 of 18 This Week’s Hearings:o Tuesday, April 23: The Senate Banking Committee will hold a hearing on the ConsumerFinancial Protection Bureau’s Semi-Annual Report. CFPB Acting Director Richard Cordraywill deliver the report and answer questions from the Committee.o Wednesday, April 24: The House Financial Services Committee will hold a hearing titled,“Building a Sustainable Housing Finance System: Examining Regulatory Impediments toPrivate Investment Capital.”o Wednesday, April 24: The House Financial Services Subcommittee on Monetary Policy andTrade will hold a hearing titled, “Evaluating U.S. Contributions to the International MonetaryFund.”o Thursday, April 25: The House Appropriations Subcommittee on Financial Services andGeneral Government will hold a hearing to review the Treasury Department’s budget.Treasury Secretary Jack Lew will testify at the hearing.REGULATORY ACTIVITY Chairman White’s Former Debevoise & Plimpton Colleague to be New SEC Enforcement Chief.Media reports indicate that newly installed Securities and Exchange Commission Chairman Mary JoeWhite will soon appoint Andrew J. Ceresney, her former colleague at Debevoise & Plimpton LLP, tobe the Commission’s Director of Enforcement. Treasury Official Says Dodd-Frank Marked the End of “Too Big To Fail.” In a speech onThursday, April 18, Treasury Undersecretary for Domestic Finance Mary Miller stated that the Dodd-Frank Act put a definitive end to “too big to fail” institutions and that taxpayers would no longer beheld responsible for bailouts for financial firms. Miller’s comments follow those made by FederalReserve Governor Jeremy Stein on Wednesday, who stated that it would still be some time beforethe issue of “too big to fail” was solved. FSOC Expected to Make First Nonbank SIFI Designations Before Year End. Treasury officialshave indicated that the Financial Stability Oversight Council is in the final stages of evaluating aninitial set of nonbank financial companies to determine which companies will be designated assystemically important financial institutions, and subject to oversight by the Federal Reserve Boardand enhanced prudential standards including capital and liquidity requirements.Contact InformationFor additional insights about likely policy developments, please feel free to contact the author of thissection: Caroline Cauley at 202-457-6625 or ccauley@pattonboggs.com.
  12. 12. Patton Boggs Capital Thinking Weekly Update | April 22, 201312 of 18Health CareLEGISLATIVE ACTIVITY HHS Basic Health Plan Program Timeline Released. Sen. Maria Cantwell released a timeline fromHHS that shows that the Federal Basic Health Plan will begin enrollment in October 2014 andoperations in January 2015. It shows that proposed regulations are expected in September 2013 andfinal rules are planned for release in 2014. This Week’s Hearings:o Tuesday, April 23: The Senate Committee on Health, Education, Labor and PensionsSubcommittee on Primary Health and Aging has scheduled a hearing on “Successful PrimaryCare Programs: Creating the Workforce We Need.” Panelists include Rebecca Spitzgo ,HRSA Associate Administrator, George S. Rust, MD, MPH , Professor of Family Medicine atthe Morehouse School of Medicine and Co-Director of the National Center for Primary Care,Atlanta, GA, Dan Hawkins , Senior Vice President, Public Policy and Research at theNational Association of Community Health Centers, Paul R. G. Cunningham, MD, FACS ,Dean and Senior Associate Vice Chancellor for Medical Affairs at the Brody School ofMedicine, East Carolina University, Greenville, NC, Deborah Wachtel, NP, MPH, MS ,President of the Vermont Nurse Practitioner Association and Vermont State representativefor the American Association of Nurse Practitioners, Essex, VT , and Bruce Koeppen, MD,PhD , Founding Dean of the Frank H. Netter MD, School of Medicine at QuinnipiacUniversity, Hamden, CT.o Wednesday, April 24: The House Committee on Veterans’ Affairs will hold a hearing on“Examining the Implications of the Affordable Care Act on VA Healthcare.”o Wednesday, April 24: The Senate Committee on Homeland Security and GovernmentalAffairs Subcommittee on Financial and Contracting Oversight will hold a hearing on“Oversight and Business Practices of Durable Medical Equipment Companies.”o Wednesday, April 24: The Senate Committee on Appropriations Labor, Health and HumanServices, and Education Subcommittee has scheduled a hearing on the Administration’sFiscal Year 2014 Budget Request for the Department of Health and Human Services. HHSSecretary Kathleen Sebelius will testify.o Thursday, April 25: The House Committee on Energy and Commerce Subcommittee onHealth has scheduled a hearing on “Securing our Nation’s Prescription Drug Supply Chain.”o Thursday, April 25: The House Committee on Oversight and Government ReformSubcommittee on Energy Policy, Health Care, and Entitlements has scheduled a hearing on“Examining the Lack of Transparency and Consumer Driven Market Forces in U.S.Healthcare.”
  13. 13. Patton Boggs Capital Thinking Weekly Update | April 22, 201313 of 18o Thursday, April 25: The House Committee on Appropriations will hold a budget hearing onthe Administration’s FY 2014 Department of Health and Human Services (HHS) budgetproposal. The Honorable Kathleen Sebelius, HHS Secretary, will testify.o Friday, April 26: The House Committee on Appropriations has also scheduled a budgethearing on the Food and Drug Administration (FDA) proposal. Witnesses include Dr.Margaret Hamburg, FDA Commissioner, James Tyler, FDA Chief Financial Officer, andNorris Cochran, FDA Deputy Assistant Secretary.REGULATORY ACTIVITY CMCS Oral Health Initiative Information Bulletin. The Center for Medicaid & CHIP Services(CMCS) released the attached informational bulletin for more information about setting baselines andgoals under the CMS Oral Health Initiative and other dental updates. CMCS named two goals for itsOral Health Initiative, both of which the agency aspires to achieve at a national level as well as inindividual states: increase by ten percentage points, from FY 2011, the percentage of children ages1-20 enrolled in Medicaid for at least 90 continuous days that received a preventive dental service(the target date for this goal is FY 2015); and increase by ten percentage points the percentage ofchildren ages 6-9 enrolled in Medicaid for at least 90 continuous days that received a sealant on apermanent molar. CMS has not set a target date for this goal as of yet. CMCS has invited stateMedicaid agencies to develop Oral Health Action Plans as a roadmap to achieving these goals.OTHER HEALTH NEWS OMB Reg Review. The following regulations are currently under review at the Office of Managementand Budget (OMB): State Long-Term Care Ombudsman Program Proposed Rule, ProspectivePayment System and Consolidated Billing for Skilled Nursing Facilities-Update for FY 2014 (CMS-1446-P) Proposed Rule, FY 2014 Hospice Rate Update (CMS-1449-P) Proposed Rule, Requirementsfor the Medicare Incentive Reward Program and Provider Enrollment (CMS-6045-P) Proposed Rule,Changes to the Hospital Inpatient and Long-Term Care Prospective Payment System for FY 2014(CMS-1599-P) Proposed Rule, Proposed Revisions To Implement Portions of Title XI of the MedicarePrescription Drug, Improvement, and Modernization Act of 2003 and Other Changes Proposed Rule,Infant Formula: Current Good Manufacturing Practices; Quality Control Procedures; NotificationRequirements; Records and Reports; and Quality Factors Final Rule, 340B Orphan Drug ExclusionFinal Rule, Add Vascularized Composite Allografts to the Definition of Organs Covered by the RuleGoverning the Operation of the Organ Procurement and Transplantation Network (OPTN) Final Rule,HIPAA Privacy Rule and the National Instant Criminal Background Check System (NICS) Prerule,and Revision to Prohibition on FFP for "Data Mining" by Medicaid Fraud Control Units Final Rule. GAO Report on OSHA Response to Challenges in State-Run Programs. The GovernmentAccountability Office (GAO) released a report examining (1) what challenges states face inadministering their safety and health programs; and (2) how the Occupational Health and SafetyAdministration (OSHA) responds to state-run programs with performance issues. GAO found thatalthough OSHA has taken steps to improve issues among state-run programs, the agency needs amechanism that allows the agency to intervene more quickly when a state is struggling with
  14. 14. Patton Boggs Capital Thinking Weekly Update | April 22, 201314 of 18performance issues. GAO recommends that Congress consider giving OSHA a mechanism toexpedite assistance to states experiencing challenges. In addition, OSHA should take a number ofactions, including facilitating access to training; establishing time frames for resuming enforcement ifstates do not address challenges in a timely manner; and documenting lessons from its pastexperiences in resuming federal enforcement of state-run programs. In response, OSHA agreed withthe recommendations and said it will explore ways to implement them. BPC Health Care Cost Containment Report. The Bipartisan Policy Center (BPC) released a reportentitled “A Bipartisan Rx for Patient-Centered Care and System-Wide Cost Containment.” The reportidentifies promising health care policy recommendations that will both contain cost growth andenhance value throughout the health care system. BPC’s recommendations span four broadcategories: (1) Improve and Enhance Medicare to Incent Quality and Care Coordination; (2) ReformTax Policy and Clarify Consolidation Rules to Encourage Greater Efficiency and Competition; (3)Prioritize Quality, Prevention, and Wellness; and (4) Incent and Empower States to Improve Care andConstrain Costs Through Delivery, Payment, Workforce, and Liability Reform. IOM Meeting. Institute of Medicine’s Board on Population Health and Public Health Practice willmeet on Monday April 22, 2013 on “Achieving Health Equity via the Affordable Care Act: Promises,Provisions and Making Reform a Reality for Diverse Patients. ” This workshop will look at thefollowing issues: expansion of coverage, patient centered medical home, public/private partnerships,safety net challenges, and consumer engagement.Contact InformationFor additional insights about likely policy developments, please feel free to contact the author of thissection: Eugenia Edwards, at 202-457-5622 or eedwards@pattonboggs.com.Homeland Security Boston Terrorist Attack: The Federal Bureau of Investigation and Boston Police Department areworking with the Department of Homeland Security (DHS) and other federal agencies to investigatethe vicious bombing of the Boston Marathon last week. DHS Secretary Janet Napolitano has directedher agency to provide “whatever assistance” necessary to the investigation. DHS had issued amemo in 2004 on bombs fashioned from pressure cookers, such as those used in the attack.President Obama signed an emergency declaration for Massachusetts and traveled to Boston lastweek. Washington, D.C. remains on increased security alerts as officials intercepted poisonous ricin-laced letters intended for Senator Roger Wicker (R-MS) and President Obama. Budget and Appropriations: Secretary Napolitano and DHS officials continue to disagree withCongressional homeland security leaders over the impact of sequestration on the agency’s budgetand activities. For example, although the Transportation Security Administration has been able toavoid furloughs, the agency has predicted that a hiring freeze could result in losing more than 1,000
  15. 15. Patton Boggs Capital Thinking Weekly Update | April 22, 201315 of 18workers by Memorial Day. However, the House Homeland Security and Governmental AffairsCommittee debated whether the President’s FY 2014 Budget Request for DHS is sufficient in light ofthe Boston Marathon bombing. DHS Secretary Napolitano defendant her agency’s support of stateand local intelligence fusion centers. She also pledged that security grants in port cities such asBoston would get serious consideration. Border Security: The bipartisan “Gang of Eight” Senators introduced their comprehensiveimmigration reform package (S. 744) last week. To gain Republican support, it appropriates funds forextensive improvements in border security over the next decade and requires certain benchmarks bemet before undocumented immigrants can seek permanent residence or citizenship. The bill createsa Southern Border Security Strategy to achieve effective control of the border, utilizing surveillanceand detection capabilities, additional border patrol agents, and unmanned and fixed-wing aircraft.With the exception of DREAM Act youth and agriculture workers, no undocumented immigrant mayachieve provisional legal status until the DHS Secretary notifies Congress that the strategy has beenimplemented and completed, among other triggers. If a 90 percent effective apprehension rate ofillegal border crossings is not achieved within five years, the bill would create a Border Commission ofborder security experts, members of Congress, and the four border state governors to establish andmeet border security standards. National Bio and Agro-Defense Facility: President Obama requested $714 million in FY 2014 forthe National Bio and Agro-Defense Facility (NBAF), which would replace an aging DHS lab locatedon an island off the coast of New York by 2020. Last week, House appropriators noted that themoney dedicated to the NBAF would necessitate cuts elsewhere. Senate Homeland Security andGovernment Affairs Committee Chairman Thomas Carper (D-DE) urged Congress to appropriatefunds gradually for the multi-year construction project, rather than provide full funding in the first yearat the expense of Coast Guard, Federal Emergency Management Agency, and Immigration andCustoms Enforcement budgets. This Week’s Hearings:o Monday, April 22: The Senate Judiciary Committee will hold a hearing on “ComprehensiveImmigration Reform Legislation.”o Tuesday, April 23: The Senate Appropriations Committee, Subcommittee on HomelandSecurity, will hold a hearing on “2014 Appropriations: Homeland Security.” DHS SecretaryNapolitano will testify.o Thursday, April 25: The House Homeland Security Committee, Subcommittee onCounterterrorism and Intelligence, will hold a rescheduled hearing on “CounterterrorismEfforts to Combat a Chemical, Biological, Radiological, and Nuclear (CBRN) Attack on theHomeland.” Two panels of witnesses from the New York City Police Department, DHS, andacademia will testify.
  16. 16. Patton Boggs Capital Thinking Weekly Update | April 22, 201316 of 18Contact InformationFor additional insights about likely policy developments, please feel free to contact the authors of thissection: Alexis Early, at 202-457-5105 or aearly@pattonboggs.com; and Norma Krayem, at 202-457-5206 or nkrayem@pattonboggs.com.InternationalEXECUTIVE AND LEGISLATIVE BRANCH ACTIVITY Boston Marathon Bombing. Last Monday, two bombs exploded near the end of the annual BostonMarathon, killing three – two U.S. citizens and one Chinese national – and injuring more than 170bystanders. U.S. federal law enforcement resources responded to the incident, with President Obamaclassifying the bombing as a terrorist attack. The President flew to Boston last Thursday to attend anon-denominational memorial service for those killed and injured. At the service, President Obamahad a warning for the perpetrators of the attack: “Yes, we will find you. And, yes, you will face justice.”Early last Friday morning, after a shootout with police, Tamerlan Tsarnaev (26-year old), one of thetwo identified bombing suspects, was killed. A massive manhunt ended Friday night for his brother,19-year old Dzhokhar Tsarnaev, who was taken into police custody. That same day, PresidentObama spoke with Russian President Vladimir Putin and thanked him for unspecified cooperation inthe investigation into the Boston bombings. Shortly after the arrest, President Obama addressed thenation. He thanked local, state and federal law enforcement for their collective efforts. The Presidentalso acknowledged many questions remain and said the Government will continue to press foranswers. North Korea. Coming on the heels of Secretary of State John Kerry’s recent visit to Beijing, China’sSpecial Envoy to North Korea, Wu Dawei, will visit Washington next week to meet with hiscounterpart, U.S. Special Envoy to North Korea Glyn Davies, to discuss North Korea. Since SecretaryKerry’s visit to Beijing, where the Secretary opened the door to possibly resuming a dialogue withNorth Korea, North Korea has insisted that in order for talks to resume, economic sanctions againstNorth Korea need to end and the United States needs to end joint military exercises with SouthKorea. Analysts generally have acknowledged the hostile rhetoric from North Korea appears to havelessened. On Saturday, however, North Korea said it will not give up its nuclear weapons, rejecting aU.S. condition for talks, and instead shifted two more missile launchers to its east coast. In testimonybefore Congress last week, Secretary Kerry affirmed the United States will not reward North Korea forreturning to the Six-Party Talks. He also shared that China remains concerned about the provocativeactions of North Korea. According to the media, South Korean Foreign Minister Yun Byung-se willmeet in Beijing next week with the Chinese Foreign Minister Wany Yi to discuss North Korea.Meanwhile, U.S. Chairman of the Joint Chiefs of Staff, Army Gen. Michael Dempsey departedWashington last weekend for Beijing, with a stop in Seoul, South Korea. The Chairman’s agenda isexpected to focus on North Korea, among other topics.
  17. 17. Patton Boggs Capital Thinking Weekly Update | April 22, 201317 of 18 Syria. This past weekend, Secretary Kerry travelled to Istanbul, Turkey, and joined the Friends ofSyria meeting. The Secretary announced the United States will double its non-lethal assistance to theSyrian Opposition. E.U. diplomats last week indicated the European Union may ease its oil embargoon Syria in order to allow the sale of crude from territory held by the Syrian opposition. A formaldecision is expected Monday after the E.U. Foreign Ministers meeting in Luxembourg. Meanwhile,Syria continues to deny access to a U.N. forensics team after allegations by the British and Frenchgovernments that the Syrian government has used chemical weapons in the civil war. PresidentObama has previously said any use of chemical weapons by the Assad regime would be a “gamechanger;” but he has not said how the United States would respond. State Department. Last week, Secretary Kerry testified before the Senate Foreign Relations andHouse Foreign Affairs Committees, as well as the Senate and House Appropriations State-ForeignOperations Subcommittees regarding the requested $47.8 billion FY 2014 Budget for the StateDepartment. Before the House Foreign Affairs Committee, the Secretary shared his belief that “thewindow for a two-state solution is shutting” with respect to a potential Palestinian state. He furtherwarned that $3.1 billion earmarked for military aid to Israel could be cut if the mandatorysequestration reductions go into effect. Secretary Kerry also fielded a number of questions on theSeptember 11, 2012, terrorist attack on the U.S. Consulate in Benghazi; and he faced questions onNorth Korea and Syria. In testimony before the Senate Foreign Relations Committee, the Secretaryrequested the Senators pressing for tougher Iran Sanctions to be patient, citing uncertainty in Iranwith the upcoming June 14 presidential election.Last Friday, the State Department issued its 2012 Country Reports on Human Rights Practices(Report). The Report highlights the following themes during 2012: (1) shrinking space for civil societyactivism around the world; (2) ongoing struggle in the Middle East for democratic change; (3)emerging democracy and space for civil society in Burma; (4) threats to freedom of expression; and(5) the continued marginalization of vulnerable groups, such as lesbian, gay, bisexual, andtransgender (LGBT) persons. Venezuela. Nicolás Maduro, Hugo Chavez’s heir apparent and acting Venezuelan President, won theApril 14 presidential election by less than two percentage points against his challenger, HenriqueCapriles. While the White House congratulated the Venezuelan people for peacefully participating inthe election, it noted “the acceptance by both candidates for an audit of the ballots.” Secretary Kerryin testimony before Congress last week said about the recent election: “Obviously, if there are hugeirregularities, we are going to have serious questions about the viability of that government.” LastFriday, Nicolás Maduro was sworn-in as the next President of Venezuela. Trade. While the United States has announced its support for Japan to join the Trans-PacificPartnership (TPP) negotiations, there has not been across the board acceptance by the other TPPmember countries. On Wednesday, the Senate Finance Committee will hold a hearing on TPPopportunities and challenges.
  18. 18. Patton Boggs Capital Thinking Weekly Update | April 22, 201318 of 18 This Week’s Hearings:o Tuesday, April 23: The House Foreign Affairs Subcommittee on Global Health will hold ahearing on Meeting the Challenge of Drug-Resistant Diseases in Developing Countries. Dr.Tom Frieden, Director of the Centers for Disease Control and Prevention, is scheduled totestify.o Wednesday, April 24: The Senate Foreign Relations Committee will hold a hearing onInternational Development Priorities in the Fiscal Year (FY) 2014 Budget. U.S. Agency forInternational Development Administrator Rajiv Shah is scheduled to testify.o Wednesday, April 24: The Senate Finance Committee will hold a hearing on The Trans-Pacific Partnership: Opportunities and Challenges. The Administration is not scheduled totestify.o Wednesday, April 24: The House Foreign Affairs Committee will hold a hearing on ExportControl Reform: The Agenda Ahead. Testifying from the Administration will be: PrincipalDeputy Assistant Secretary of State for Political-Military Affairs Thomas Kelly; AssistantSecretary of Commerce for Export Administration Kevin Wolf; and Principal Deputy AssistantSecretary of Defense for Policy Kathleen Hicks.o Wednesday, April 24: The House Foreign Affairs Subcommittee on Europe will hold a hearingon Kosovo and Serbia: A Pathway to Peace. Testifying from the Administration will be Mr.Jonathan Moore, Director of the State Department’s Office of South Central European Affairs.o Thursday, April 25: The Senate Foreign Relations Subcommittee on East Asian and PacificAffairs will hold a hearing on the Rebalance to Asia II: Security and Defense: Cooperationand Challenges. Testifying from the Administration will be Acting Assistant Secretary of Statefor East Asian and Pacific Affairs Joseph Yun and Assistant Secretary of Defense for Asianand Pacific Affairs Mark Lippert.Contact InformationFor additional insights about likely policy developments, please feel free to contact the author of thissection: Stacy Swanson, at 202-457-5627 or sswanson@pattonboggs.com.

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