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1 Weekl ly Legislative Update Week of April 20, 2015 Congressional Outlook Week of April 20 The House and Senate are in session this week. The Senate will take up a long-stalled anti- human trafficking bill that would increase criminal penalties and create a Victim Fund. The billl has been filibustered by Senate Democrats because it contains a restriction on the use of the Victim Fund for abortions or for health benefits coverage that includes abortion. If they can broker a deal on this bill, the Senate may also then turnn to the nomination of Loretta Lynch for Attorney General, who has been waiting for more than 5 months to be confirmed. There may also be a vote on Trade Promotion Authority. The House will, among other items, debate two cybersecurity bills. Those two measuress would provide companies liability protection for sharing cyberthreat information with the government andd other companies. House and Senate conferees on the fiscal year 2016 budget resolution are scheduled to meet today. House Budget Committee Chairman Tom Price (R-GA) said he wants to complete the negotiations in the next two weeks. While GOP congressional leaders are racing to approve a budget blueprint for the coming year that abides by strict spending limits and fiscal discipline, some rank-and-file Republicans are expressing interest in a much bigger deal that would adjust those caps, sweep away the still-developing blueprint and ease the budgetary pressuree on the Pentagon - and, grudgingly, domestic programs iff necessary. Week in Review President Obama One Step Closer to Trade Promotion Authority Last Thursday, congressional leaders announced they had reached a deal to allow a vote on granting President Obama fast-track trade promotion authority. This deal will be good timing

2 for the April 28 state visit to DC by Japanese Prime Minister Shinzo Abe, as the 12-nation Trans-Pacific Partnershiptrade pact is one of the main reasons for his trip. The 11 other nations have been waiting to see if Congress grants the President fast-track authority, which would require Congress to have an up-down vote on the trade pact without being able to amend it. The U.S. and Japan are pushing hard on the trade pact (which does not include China) to counteract China's recent actions to mobilize regional ties, such as the creation of the Asian Infrastructure Investment Bank. House Passes Tax Measures; No Additional Movement Expected Last week, the House passed a bill to repeal the estate tax and a bill to let taxpayers deduct sales taxes paid to state and local governments, but it's unlikely either will go anywhere. The White House has said it will veto both of the bills because there is no offset, and Senate Finance Committee Chairman Orrin Hatch has declined to take up any of the tax bills passed so far this year in favor of maintaining a focus on comprehensive tax reform. The vote on the estate tax was mostly along party lines, with three Republicans voting against the measure - mainly because there is no offset to the bill that would reduce revenues by approximately $269 billion over the next 10 years. The "State and Local Sales Tax Deduction Fairness Act of 2015" is estimated to cost about $42.4 billion over the next 10 years. This bill is aimed at establishing parity for states that do not collect income taxes. Since 2004, there has been a temporary provision allowing for itemized deductions of state and local sales tax when determining taxable income; however, this deduction expired on January 1, Supporters say that allowing for an itemized deduction for state and local income taxes, but not for state and local sales taxes, creates a tax liability disparity for residents of states that impose a sales tax rather than an income tax. Those states are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Doc Fix and More Signed Into Law President Obama on Thursday signed into law H.R. 2, the Medicare Access and CHIP Reauthorization Act of 2015, the so-called "Doc Fix" bill, two days after it was approved by the Senate with a 92-8 vote. (The House passed the bill on March 26.) The measure adopted a new system to pay doctors that treat Medicare patients. It also extended funding for the Secure Rural Schools (SRS) program, the Children's Health Insurance Program (CHIP) and other health care programs. House Appropriations Markup Begins with Energy and Water Bill The House Appropriations Energy and Water Subcommittee passed a $35.4 billion FY 2016 funding bill last week, $1.2 billion higher than the FY 2015 Energy and Water appropriations level, but $633 million less than the President's budget request. This bill is scheduled to go before the full committee this Wednesday, April 22, along with the Military Construction and Veterans Affairs appropriations bill, which also passed last week at the subcommittee level. Despite the inclusion of several riders, including a provision that would prevent the U.S. Army Corps of Engineers (USACE) from using funds to implement the rule defining "Waters of the United States" (WOTUS) that is currently being finalized, the bill was passed by the Energy and Water Subcommittee unanimously. Read more...

3 Shuster Introduces Bill to Restart WOTUS Rulemaking House Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) has introduced the Regulatory Integrity Protection Act, which would require the EPA and USACE to withdraw and replace the WOTUS rule defining waters that are regulated under the Clean Water Act. In developing a replacement rule, the agencies would be subject to provisionss requiring additional reporting and extensivee consultationn with state and local governments and other stakeholders. The WOTUS rule is currently undergoing interagency review at the Office of Management and Budget, after which a final rule will be published. Read more... Congressional Schedule Monday, April 20 Senate-House Conference Full Committee meeting on the FY 2016 budget. Tuesday, April 21 Senate Banking, Housing and Urban Affairs Full Committee hearing on Surface Transportation Reauthorization: Building on the Successes of MAP-21 to Deliver Safe, Efficient and Effective Public Transportation Services and Projects." Senate Agriculture, Nutrition and Forestry Full Committee hearing on "Opportunities and Challenges for Agriculture Trade with Cuba." Senate Commerce Science and Transportation Committee Subcommittee on Communications, Technology, Innovation and the Internet hearing on "Advancing Telehealthh through Connectivity." Senate Judiciary Full Committee hearing on "Improving Accountability and Oversight of Juvenile Justice Grants." Senate Commerce, Science and Transportationn Committee Subcommittee on Aviation Operations, Safety and Security hearing on "FAAA Reauthorization: Certification and U.S. Aviation Manufacturing Competitiveness." Senate Appropriations Committee Subcommittee on Military Construction, Veterans Affairs and Related Agencies hearing on proposed budget estimates and justification for FY 2016 and FY 2017 for the Veterans Affairs Department House Rules Full Committee meeting to formulate a rule on H.R. 1560, the "Protecting Cyber Networks Act,," and H.R. 1731, thee "National Cybersecurity Protection Advancement Act of 2015." Wednesday, April 22 House Natural Resources Full Committee hearing on "Innovation in Safety Since the 2010 Macondo Incident." Senate Homeland Security and Governmenta al Affairs Full Committee hearing on "Securing the Border: Understanding Threats andd Strategies for the Northern Border." House Agriculture Committee Subcommittee onn General Farm Commodities and Risk Management hearing on reauthorization of the U..S. Grain Standards Act. House Ways and Means Committeee Subcommittee on Oversight hearing on the 2015 tax filing season and general operations at the IRS.

4 Senate Commerce, Science and Transportation Full Committee hearing on "Weathering the Storm: How can We Better Communicate Weather to Enhance Commerce and Safety?" Senate Appropriations Committee Subcommittee on Transportation, Housing and Urban Development, and Related Agencies hearing on the proposed budget estimates and justification for FY 2015 for the DOT. Senate Energy and Natural Resources Full Committee hearing on the reauthorization of and potential reforms to the Land and Water Conservation Fund. House Transportation and Infrastructure Committee Subcommittee on Water Resources and Environment hearing on "A Review of the President's FY 2016 budget request for the U.S. Army Corps of Engineers and the Tennessee Valley Authority." House Science, Space and Technology Full Committee markup of H.R. 1806, the "America COMPETES Reauthorization Act of 2015." Senate Appropriations Committee Subcommittee on Defense hearing on the proposed budget estimates and justification for FY 2016 for defense innovation and research. House Appropriations Full Committee markup of the FY 2016 Energy and Water Appropriations bill, the FY 2016 Military Construction and Veterans Affairs Appropriations bill, and a report on the sub-allocation of budget allocations for FY House Small Business Full Committee hearing on "Small Business, Big Threat: Protecting Small Businesses from Cyber Attacks." House Agriculture Committee Subcommittee on Livestock and Foreign Agriculture hearing on reauthorization of the Livestock Mandatory Reporting Act. Senate Appropriations Subcommittee on Homeland Security hearing on the proposed budget estimates and justification for FY 2016 for FEMA. Senate Appropriations Committee Subcommittee on Energy and Water Development hearing on "The U.S. Without Nuclear Power." Thursday, April 23 House Appropriations Committee Subcommittee on Homeland Security hearing on the budget for U.S. Customs and Border Protection. House Science, Space and Technology Full Committee hearing on "Hydraulic Fracturing: Banning Proven Technologies on Possibilities Instead of Probabilities." House Natural Resources Committee Subcommittee on Federal Lands hearing on "The Devastating Impacts of Wildland Fires and the Need to Better Manage our Overgrown, Fire-prone National Forests." House Judiciary Committee Subcommittee on Constitution and Civil Justice hearing on the "Victims' Rights Amendment." House Energy and Commerce Committee Subcommittee on Energy and Power hearing on "Title II: 21st Century Workforce," focusing on the energy and manufacturing workforce. Senate Commerce, Science and Transportation Committee Subcommittee on Aviation Operations, Safety and Security hearing on "FAA Reauthorization: Airport Issues and Infrastructure Financing." House Appropriations Committee Subcommittee on Homeland Security hearing on the budget for FEMA. Senate Appropriations Committee Subcommittee on Labor Health and Human Services, Education and Related Agencies hearing on the proposed budget estimates and justification for FY 206 for the Health and Human Services Department. Senate Banking, Housing and Urban Affairs Full Committee hearing on Surface Transportation Reauthorization: Building on the Successes of MAP-21 to Deliver Safe,

5 Efficient and Effective Public Transportation Services and Projects." Senate Appropriations Committee Subcommittee on Military Construction, Veterans Affairs and Related Agencies hearing on the proposed budget estimates and justification for FY 2016 for military construction and military family housing programs. Senate Judiciary Committee Subcommittee on Immigration and the National Interest hearing on "Eroding the Law and Diverting Taxpayer Resources: An Examination of the Administration's Central American Refugee/Parole Program."