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Announcements--Tuesday Read committee simulation this

week for breakout Paper case—next week. Your TA

will email or otherwise assign you to a role (e.g. EPA) this week. You do not need to meet in your group until late next week.

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Announcements--Thursday Paper case—next week. Your TA

will email or otherwise assign you to a role (e.g. EPA) this week. You do not need to meet in your group until late next week.

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G302, Week 11:The Supply of Policy

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Ernst and Young

The Big Five accounting firms all do tax lobbying for clients

EY is a leader in this. In 2000 it bought a Washington lobbying firm

The current Asst. Secy. of the Treasury for Tax Policy used to be head of EY’s tax department

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What you will learn today

Where a company can best intervene to get a law passed or blocked

The importance of procedure and process in lawmaking

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What is the best time for a business to intervene in lawmaking?

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3 Branches—3 Chances Legislative: The US House and Senate write the law Executive: The President, Treasury Dept., EPA, and

so forth implement the law Judiciary: The courts decide disputes that arise

under the law

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The Path of a Bill...

Congressman Committee Subcommittee

HearingsCommitteeRules Committee

Senate Conference Committee

House & SenatePresident (veto)It’s a law!

Floor debate

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The House Ways and Means Committee’s Jurisdiction

Customs, collection districts, and ports of entry and delivery Reciprocal trade agreements Revenue measures generally Revenue measures relating to insular possessions Bonded debt of the United States, subject to the last sentence of clause 4(f) Deposit of public monies Transportation of dutiable goods Tax exempt foundations and charitable trusts National social security (except health care and facilities programs that are

supported from general revenues as opposed to payroll deductions and except work incentive programs)

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Rep. Hostettler’s Committees (2002)

Armed Services Committee Subcommittee on Military Installations and Facilities Subcommittee on Military Research and Development

Judiciary Committee Subcommittee on Courts, the Internet, and Intellectual Property Subcommittee on the Constitution

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Senator Lugar’s Committees (2002)

Agriculture, Nutrition, & Forestry Committee (ranking member)

Foreign Relations Committee Subcommittee on Central Asia and South Caucasus

Subcommittee on European Affairs

Subcommittee on Western Hemisphere, Peace Corps and Narcotics Affairs

Subcommittee on East Asian and Pacific Affairs

Select Committee on Intelligence

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The Filibuster: ___________________________In the Senate, it requires a 3/5 vote to end debate.

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Example: The “Patients’ Bill of Rights”

Should patients be allowed to sign away their right to sue for certain kinds of damages, in exchange for a lower price for health care?

“Protecting the right to sue” = _____________________________________________Taking away the right to promise not to sue

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What Happened 1998: Senators Lott and Nickles block legislation

from coming to Senate floor. 7/99: Senate passes bill with Nickles Amendment

by 53-47; no right to sue. 10/7/99: House passes Norwood-Dingell Bill by

272-151; has right to sue HMOs. 10/99 – 6/00: Bill is stalled in Conference

Committee chaired by Sen. Nickles. 6/00: Sen. Kennedy attaches Norwood-Dingell to

another Senate bill as a “rider”, a type of amendment. The bill loses by 1 vote.

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Example:The Pickering Nomination Charles Pickering was nominated by Republican

President Bush to be an appellate judge in 2001.

But judicial nominations need Senate approval... On a party line vote, the Judicial Committee

refused to report the nomination to the floor On the floor, Pickering would have won– he had

several Democrats who would have voted for him

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A: Tax breaks for buying American steelB: Tax credits for steel workersC: Depreciation tax breaks for steel companies

40 Typical voters ABC (A best, then B, C worst)40 Steel unions BCA20 Ernst and Young CAB

B vs. C : _____________________________Winner vs. A: ____________________________________________________________

PROCEDURE WITH THREE CHOICES

B wins, 80 to 20A wins, 60 to 40

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A: Tax breaks for buying American steelB: Tax credits for steel workersC: Depreciation tax breaks for steel companies

40 Typical voters ABC (A best, then B, C worst)40 Steel unions BCA20 Ernst and Young CAB

If the senators vote these preferences, then(a) First A wins, then A again. (b) First A wins, then C.(c) First B wins, then B again.(d) First B wins, then C.

First, vote on A vs. B. Second, vote on Winner vs. C.

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The Business Lesson: ___________________If you get to choose the order of votes, you get to choose the result of the votes

It matters who sets the agenda.

1. Did the sign-in sheet get around? 2. If you answered a question, bring up anotecard for me.

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Rulemaking and Litigation

The Clean Air Act (1970) directs the EPA to set air quality standards “requisite to protect the public health”.

State Public Utility Commissions are expected to set “just and reasonable” rates.

The FDA is required to establish the “safety and efficacy” of new drugs.

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The Courts The Chevron Doctrine:____________________________________________________________________________________

What is easiest to challenge are procedural mistakes by the regulator

Courts should defer to agency interpretations of statutes unless the agencies are grossly wrong.

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Agencies must ensure:

Broad representation Rights of participation A clear, predefined process A public record of the evidence presented

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The Rulemaking Process A proposed rule or change to an existing rule

is published in the Federal Register, which has upwards of 70,000 pages per year. Comments are invited.

The agency holds hearings to collect evidence.

The agency considers the evidence and publishes a final regulation in the Federal Register and the Code of Federal Regulations.

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Example: The U.S. Forest Service halted a timber sale to the Wetsel-Oviatt Lumber Company on the grounds that it would hurt spotted owls