The House will meet on February 12 for morning hour at 12:00 pm and legislative business at 2:00 pm, recessing by 5:30 pm for a security sweep prior to the President's State of the Union address at approximately 8:35 pm. On February 13-14, the House will meet at 10:00 am for morning hour and 12:00 pm for legislative business, with last votes expected no later than 3:00 pm. The Senate will convene on February 11 at 2:00 pm to consider the Violence Against Women Act. Legislation to be considered in the House includes bills related to hydropower regulation, renewable energy promotion, and support for veteran emergency medical technicians.

1. February 11, 2013

2. General Legislative
Tomorrow, February 12, 2013, the House will meet at 12:00 pm for morning hour and 2:00 pm for
legislative business. The House will recess no later than 5:30 pm to allow a security sweep of the
House Chamber prior to the President’s State of the Union address. The House will meet again at
approximately 8:35 pm for the purpose of receiving, in a joint session with the Senate, the
President of the United States. No votes are expected. Legislation Considered Under Suspension
of the Rules will include: (1) H.R. 267 – Hydropower Regulatory Efficiency Act of 2013; (2) H.R. 316
– Collinsville Renewable Energy Promotion Act; and (3) H.R. 235 – Veteran Emergency Medical
Technician Support Act of 2013.
On Wednesday and Thursday, the House will meet at 10:00 am for morning hour and 12:00 pm for
legislative business. On Friday, the House will meet at 9:00 am for legislative business. Last
votes expected no later than 3:00 pm. Legislation under consideration will include: (1) H.R. 592 –
To amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to clarify that
houses of worship are eligible for certain disaster relief and emergency assistance on terms equal
to other eligible private nonprofit facilities, and for other purposes; and (2) H.R. 273 – To eliminate
the 2013 statutory pay adjustment for Federal employees (Subject to a Rule).
The Senate will convene today, February 11, 2013, at 2:00 pm to resume consideration of S. 47, the
Violence Against Women Act.
Agriculture & Food
LEGISLATIVE ACTIVITY
 Immigration Reform. Last week, the House Judiciary Committee held a hearing on immigration,
where Chairman Bob Goodlatte (R-VA) expressed the need to reform the H-2A visa program. He also
suggested a piecemeal approach to immigration reform, which could hamper efforts to pass a bill
through both chambers by summer. During the hearing, specific issues were raised that highlighted
the immigration reform agenda for some Members of Congress. Representative Zoe Lofgren (D-CA)
cautioned against expanding E-Verify, stating that U.S. agriculture would collapse if farms were
subject to the online system, but Republicans pushed back, questioning whether the sector would
truly fail without migrant farm labor. Additionally, Representative Louie Gohmert (R-TX) suggested
that farmers pay for their farmworkers’ health care, and Representative Steve King (R-IA) made the
point that businesses have become too reliant on illegal labor.
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3.  State of the Union. The President is expected to address immigration, and possibly his recent
meetings with United Farm Workers and Cargill, Inc., during his State of the Union address this
Tuesday, February 12.
 Upcoming Hearings. On Wednesday, February 13, the Senate Judiciary Committee will hold its
hearing on immigration reform, and Members including Senator Dianne Feinstein (D-CA) are likely to
raise questions related to farmworkers and other issues in the intersection between agriculture and
immigration. On Thursday, February 14, the Senate Agriculture, Nutrition and Forestry Committee will
hold its organizational meeting and a hearing on the “Impact of Weather Disasters on Agriculture.”
Contact Information
For additional insights about likely policy developments, please feel free to contact the authors of this
section: Dana Weekes at 202-457-6307 or dweekes@pattonboggs.com; and Karen Kudelko at 202-457-
5132 or kkudelko@pattonboggs.com.
Budget, Appropriations, and Sequestration
 President’s State of the Union Address. On Tuesday, February 12, the President will deliver his
fourth State of the Union Address in which he will outline his priorities for 2013. He will reiterate his
message to Congress last week, urging them to approve a balanced plan to avert the sequester
scheduled for March 1 and to resolve the FY 2013 appropriations process before the Continuing
Resolution expires on March 27.
 House Budget Action. Last week, the House approved the Require Presidential Leadership and No
Deficit (PLAN) Act (H.R. 444), which would require the President to propose an FY 2014 Budget that
balances the federal budget within 10 years or, alternatively, submit a supplemental proposal
designating when a balanced budget would be reached. An amendment requiring the supplemental
budget to include the estimated cost per taxpayer for each year of the deficit was also approved. The
bill is likely dead-on-arrival in the Senate.
House Budget Committee Chairman Paul Ryan (R-WI) also announced that efforts on an FY 2014
Budget Resolution are moving forward with adoption by the House anticipated by April 1.
SEQUESTRATION ACTIVITY
 Congressional Budget Office Economic Outlook. Last week, the Congressional Budget Office
(CBO) released its annual Budget and Economic Outlook for FY 2013 – FY 2023. The report
highlights that, under current law, the FY 2013 deficit will decline to $845 billion, the lowest since
2008. The report also warns that sequestration could result in 1 million jobs lost and cause another
recession. CBO Director Douglas Elmendorf testified on the report to the House Budget Committee
last week and is scheduled to appear before the Senate Budget Committee on Tuesday, February 12.
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4.  White house Outlines Sequester Impact. On Friday, February 8 the White House released a fact
sheet titled “Examples of How the Sequester Would Impact Middle Class Families, Jobs and
Economic Security,” which highlights the anticipated effect of sequestration on education, economic
growth, food safety, public health and security.
Also on Friday, the White House Office of Management and Budget (OMB) revised the estimated
percentage impact of the first year of sequestration on defense and nondefense programs (following
the fiscal cliff agreement – in which the first two months of sequestration were offset - OMB released
a fact sheet in which defense programs were estimated to face an eight percent reduction, while
nondefense programs were estimated to face only a five percent reduction). Now that 10 months of
sequestration cuts would be implemented in the remaining seven months of FY 2013, OMB estimates
that defense programs will be reduced by 13 percent and nondefense programs will be reduced by
nine percent for the remainder of FY 2013.
 Dueling Congressional Proposals. Democrats and Republicans are publicly expressing concern
over the impact of sequestration, but remain at odds over how to replace the across-the-board
spending cuts. A number of proposals are in development, but none are likely to gain sufficient
bipartisan support to reach enactment. To highlight a few:
o Senior Senate Democrats are crafting a short-term measure to replace the sequestration process
scheduled to begin on March 1, reportedly working toward a 50-50 split between targeted
spending reductions and tax revenue to replace the across-the-board spending cuts. The length
of the proposal remains in question – three months; seven months (through FY 2013); or 10
months (through calendar year 2013). They intend to introduce the bill this week, with floor
consideration possible the week of February 25.
o House and Senate Republicans will likely re-introduce a proposal to avert the FY 2013
sequestration through a 10 percent reduction in the federal workforce over the next 10 years
through attrition (federal agencies would only hire one new employee for every three departures)
and a Congressional pay freeze.
o House Republicans will likely move a bill that would replace sequestration with reductions to
entitlement spending (the House passed two similar measures in 2012).
 Congressional Hearings/Meetings. A number of Congressional Committee hearings and other
meetings are scheduled this week to analyze the federal budget and the impact of sequestration on
the economy, the Department of Defense and related industries, and federal services. These include:
o Monday, February 11 – National Press Club, Coalition for Health Funding press conference on
the impact of sequestration on defense, public health and higher education
o Tuesday, February 12 – Senate Budget Committee, hearing on the CBO’s Budget and Economic
Outlook
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5. o Tuesday, February 12 – National Press Club, “House Democratic and Republican Budget
Leaders Chris Van Hollen (D-MD) (Budget Committee Ranking Member) and Tom Price (R-GA)
(Budget Committee Vice Chairman) to Discuss Sequestration, Fiscal Cliff, Budget”
o Tuesday, February 12 – Senate Armed Services Committee, “Oversight: Impacts of
Sequestration and/or CR”
o Wednesday, February 13 – Senate Budget Committee, Hearing on the Impact of Budget
Decisions on Families and Communities
o Wednesday, February 13 – House Armed Services Committee, “Impacts of a Continuing
Resolution and Sequestration on Defense.”
o Wednesday, February 13 – House Budget Committee, “The Congressional Budget Office’s
Budget and Economic Outlook.”
o Thursday, February 14 – House Education and the Workforce Committee, Subcommittee on
Workforce Protections, “Sequestration: Examining Employers’ WARN Act Responsibilities”
o Thursday, February 14 –Senate Appropriations Committee hearing on the impact of
sequestration on federal departments and agencies
 Agency Preparation. Federal agencies are preparing plans for sequestration, including possible
furloughs for civilian employees. The general consensus, however, is that the agencies have
sufficient budgetary flexibility to forestall the impact of sequestration, including furloughs (which
require 30-day notice) for several weeks in the event the spending cuts are not addressed separately,
but are included in the resolution of the FY 2013 appropriations process which must occur by March
27. The cost of sequestration for the month of March is estimated at $12 billion. Agencies are likely to
first implement hiring delays and cut nonessential costs (i.e. travel, training) in order to achieve their
reductions. However, efforts to retain existing workforce may result in more significant reductions to
grants and other funding mechanisms.
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Pam Welsh at 202-457-6493 or pwelsh@pattonboggs.com.
Cybersecurity
LEGISLATIVE BRANCH ACTIVITY
 Recent Cyber Attacks. Last week, the Department of Energy, as well as a number of major media
organizations including The New York Times, The Wall Street Journal, and The Washington Post,
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6. reported incidents of high-profile cyber attacks – many of which have been linked to Chinese hackers.
The recent attacks have renewed the conversation surrounding the need for cybersecurity legislation
in Congress. Chairman of the Senate Homeland Security and Governmental Affairs Committee Tom
Carper (D-DE) and Chairman of the House Homeland Security Committee Michael McCaul (R-TX)
condemned the attacks and indicated that their respective committees will hold hearings on
cybersecurity-related issues in the coming weeks. The House Permanent Select Committee on
Intelligence has already scheduled a hearing titled “Advanced Cyber Threats Facing our Nation” for
Thursday, February 14, at 10 a.m.
 Cyber Intelligence Sharing and Protection Act (CISPA). On Wednesday, February 13, House
Intelligence Committee Chairman Mike Rogers (R-MI) and Ranking Member C.A. Dutch
Ruppersberger (D-MD) plan to reintroduce their cybersecurity information sharing legislation, the
Cyber Intelligence Sharing and Protection Act (CISPA). The bill is likely to be very similar to the
legislation that passed the House last April, which would have created an information sharing platform
between the intelligence community and the private sector to deter cyber threats to U.S. networks.
Given the White House veto threat issued on the CISPA bill last Congress, Rep. Ruppersberger has
been working with the Obama Administration to address its concerns over the lack of privacy
protections in the last iteration of the bill.
EXECUTIVE BRANCH ACTIVITY
 Executive Order. The Obama Administration is expected to release its cybersecurity Executive
Order (EO) after the President’s State of the Union address this week. Release of the EO will likely be
a starting point for cybersecurity legislation this Congress as many Members have stated that they
will wait to see what is in the EO before beginning work on a cybersecurity bill. It is widely
acknowledged that the EO will not replace the need for comprehensive cybersecurity legislation – a
fact that was reiterated by White House Senior Director for Cybersecurity Andy Ozment at a meeting
of the National Association for Regulatory Utility Commissioners last week.
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Amy Davenport at 202-457-6528 or adavenport@pattonboggs.com.
Education
LEGISLATIVE ACTIVITY
 Workforce Investment Act. The House Education and the Workforce Committee is expected to
move toward passage of a bill this month to reauthorize the Workforce Investment Act, which will
seek to overhaul the current federal job training programs. A bill that mirrors the Committee’s
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proposal in the 112 Congress is likely to resurface in the coming weeks and will look to consolidate
many of the overlapping job-training programs into a large block grant to states. Committee
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7. Democrats opposed the measure last Congress and are expected to do so again. In the Senate,
however, bipartisan negotiations are taking place, with Senators Patty Murray (D-WA) and Johnny
Isakson (R-GA) taking the lead. A new bill will likely be based from progress made in that chamber
last Congress, with the help of Senate Health, Education, Labor, and Pensions (HELP) Chairman
Tom Harkin (D-IA) and then-Ranking Member Michael Enzi (R-WY). Senators are looking to include
best practices from the Department of Labor and educational institutions across the country.
 Upcoming Hearings:
o Wednesday, February 13 – The House Committee on Science, Space, and Technology
Subcommittee on Research will hold a hearing on Wednesday, February 13, titled “Applications
for Information Technology Research & Development.” In the Senate, the Senate HELP
Committee will meet to organize, adopt rules, and make subcommittee assignments.
o Thursday, February 14 – The House Education and the Workforce’s Subcommittee on Early
Childhood, Elementary and Secondary Education will hold a hearing titled “Raising the Bar: How
Education Innovation Can Improve Student Achievement.” The Subcommittee on Workforce
Protections also will hold a hearing titled “WARN Act and the Sequester.” The House Ways and
Means Committee will hold a hearing titled “Review of Charitable Tax Deductions.”
Contact Information
For additional insights about likely policy developments, please feel free to contact the authors of this
section: Amy Budner Smith at 202-457-6154 or abudner@pattonboggs.com; and Dana Weekes at 202-
457-6307 or dweekes@pattonboggs.com.
Energy
LEGISLATIVE ACTIVITY
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 Energy Policy Priorities. Key lawmakers outlined their energy goals for the 113 Congress. Senate
Energy and Natural Resources Committee Chairman Ron Wyden (D-OR) intends to focus initially on
natural gas and current LNG exports policy, and then on how the country can produce more
renewable energy and use the energy produced more efficiently. Ranking Member Lisa Murkowski
(R-AK) has offered a comprehensive “energy blueprint” for discussion, which focuses on, among
other topics, producing more and consuming less. House Energy and Power Subcommittee
Chairman Ed Whitfield (R-KY) will continue to champion expanded domestic energy production to
“achieve North American energy independence.”
 Congressional Hearings. The Senate Energy and Natural Resources Committee plans to hold a
business meeting – which will include assigning members to subcommittees – and a separate
hearing regarding the “Opportunities and Challenges for Natural Gas” (including LNG exports) on
Tuesday, February 12.
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8. REGULATORY ACTIVITY
 Interior. President Obama has nominated REI chief executive Sally Jewel to be the next Interior
Secretary. She has both environmental and oil industry credentials. If confirmed by the Senate, Ms.
Jewell will be the second woman ever to lead the Interior Department and would break a streak of
politicians leading the agency dating back to President Reagan’s appointment of Donald Hodel in
1985.
 “48C” Tax Credits. The Departments of Energy and the Treasury are providing $150 million in
unused Advanced Energy Manufacturing Tax Credits for clean energy and energy efficiency
manufacturing projects.
 Smart Grid. On February 26, the Department of Energy will convene a meeting of its smart grid data
privacy multi-stakeholder process towards developing a Voluntary Code of Conduct for utility and
third parties providing consumer energy use services. The meeting will also be webcast.
 Biomass. The Biomass Research and Development Technical Advisory Committee will next meet at
the American Geophysical Union in Washington, DC on February 27-28.
 Offshore Wind. By public request, the Bureau of Ocean Energy Management has reopened the
comment period for the environmental documentation process and the call for nominations of
interests for commercial wind leasing offshore North Carolina. Nominations and/or comments must be
submitted by March 7.
 EAC. The Department of Energy’s Electricity Advisory Committee (EAC) will next meet March 6-7 to
discuss activities of the Energy Storage Technologies Subcommittee, the Smart Grid Subcommittee,
and the Transmission Subcommittee, as well as discussions of cyber security issues in the power
sector, resiliency, customer acceptance of Smart Grid technology issues, and Department of Energy’s
Utility of the Future Initiative.
 OCS Lease Sale 227. The Bureau of Ocean Energy Management will announce bids received for a
lease sale covering 38.6 million acres in the Central Gulf of Mexico on March 20 in New Orleans. All
sealed bids must be submitted by March 19.
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Tanya DeRivi at 202-457-6504 or tderivi@pattonboggs.com.
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9. Environment
LEGISLATIVE ACTIVITY
 Natural Gas. On Tuesday, February 12, the Senate Committee on Energy and Natural Resources
will hold a full committee hearing titled “Opportunities and Challenges for Natural Gas.” The purpose
of the hearing is to explore opportunities and challenges regarding America’s natural gas resources.
 Draught. On Thursday, February 14, the Senate Committee on Agriculture, Nutrition and Forestry will
hold a hearing titled “Drought, Fire and Freeze: The Economics of Disasters for America’s Agricultural
Producers.” The hearing is intended to examine the effects of weather disasters on American
agriculture. Witnesses will include Dr. Joe Glauber, Chief Economist, U. S. Department of Agriculture,
and Dr. Roger Pulwarty, Director of the National Integrated Drought Information System, National
Oceanic and Atmospheric Administration, as well as farmers and ranchers from across the country.
REGULATORY ACTIVITY
 Gulf Coast Ecosystem Restoration. The Gulf Coast Ecosystem Restoration Council (the Council)
has announced upcoming public engagement sessions in the Gulf States. The Council announced
the dates for public engagement sessions to provide early opportunities for initial input into the
Comprehensive Plan. Public engagement sessions will be held in Mississippi on February 19; in
Louisiana on February 19, 20 and 21; and in Florida on February 28. The Council, which was
established by the Resources and Ecosystem Sustainability, Tourism, Opportunities Revived
Economies of the Gulf Coast States Act of 2012 (RESTORE Act), is intended to help restore the
ecosystem and economy of the Gulf Coast region by developing and overseeing implementation of a
Comprehensive Plan, which the Council intends to complete by July 6.
 State and EPA Compliance Maps. On Tuesday, February 12, the U.S. Environmental Protection
Agency (EPA) will host a webinar demonstrating how to use state dashboards and comparative maps
that provide information about the performance of state and EPA compliance programs across the
country. The dashboards and maps include state level data from the last five years and provide
information including the number of completed inspections and enforcement actions taken by state.
The dashboards are located on EPA’s Enforcement and Compliance History Online (ECHO) website.
 2013 Renewable Fuel Standards. EPA has released a proposed rule on renewable and traditional
fuels for which comments are due by March 25. Entities potentially affected by this proposed rule are
those involved with the production, distribution and sale of transportation fuels, including gasoline and
diesel fuel and renewable fuels such as ethanol and biodiesel. EPA has proposed that the applicable
volumes of advanced biofuel and total renewable fuel would remain at the statutory levels for 2013.
EPA has also proposed annual percentage standards for cellulosic biofuel, biomass-based diesel,
advanced biofuel, and renewable fuels that would apply to all gasoline and diesel produced or
imported in year 2013.
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10.  Offshore Wind Power. The U.S. Department of Interior, Bureau of Ocean Energy Management
(BOEM), has reopened the comment period concerning the preparation of an Environmental
Assessment (EA) for Commercial Wind Leasing and Site Assessment Activities on the Outer
Continental Shelf (OCS) Offshore North Carolina. Comments are due by March 7.
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Sarah Vilms at 202-457-5248 or svilms@pattonboggs.com.
Financial Services
LEGISLATIVE ACTIVITY
 Senate Banking Subcommittee Chairmen Announced. Senate Banking Committee Chairman Tim
Johnson (D-SD) announced the Chairmen of the Subcommittees. Senator Jon Tester (D-MT) will
replace Senator Jack Reed (D-RI) on the Securities, Insurance, and Investment Subcommittee, and
Senator Jeff Merkley (D-OR) will fill Senator Tester’s former role as Chairman of the Economic Policy
Subcommittee. Senator Robert Menendez (D-NJ) will remain in the Housing, Transportation and
Community Development Subcommittee; Senator Sherrod Brown (D-OH) will continue to chair the
Financial Institutions and Consumer Protection Subcommittee; and Senator Mark Warner (D-VA) will
serve as Chairman of the National Security and International Trade and Finance Subcommittee.
 Nominee for Treasury Secretary to Appear before Congress. On Wednesday, February 13,
former White House Chief of Staff and nominee for Secretary of the Treasury Jack Lew will appear
before the Senate Finance Committee for his nomination hearing.
 HFSC to Hold Second FHA Hearing. On Wednesday, February 13, the House Financial Services
Committee will hold a hearing titled “Bailout, Bust, or Much Ado About Nothing?: A Look at the
Federal Housing Administration’s 2012 Actuarial Report.” FHA Commissioner Carol Galante is
expected to testify. This is the second FHA-related hearing, following last week’s hearing on the same
topic.
 Senators to Review Dodd-Frank Implementation. On Thursday, February 14, the Senate Banking
Committee will hold a hearing titled “Wall Street Reform: Oversight of Financial Stability and
Consumer and Investor Protections.” Witnesses will include: Mary Miller, Treasury Undersecretary for
Domestic Finance; Daniel Tarullo, Member, Federal Reserve Board of Governors; Martin Gruenberg,
Chairman, Federal Deposit Insurance Corporation (FDIC); Tom Curry, Comptroller, Office of the
Comptroller of the Currency (OCC); Richard Cordray, Director, Consumer Financial Protection
Bureau (CFPB); Elisse Walter, Chairman, Securities and Exchange Commission (SEC); and Gary
Gensler, Chairman, Commodity Futures Trading Commission (CFTC).
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11. REGULATORY ACTIVITY
 FDIC to Hold Open Meeting. On Tuesday, February 12, the FDIC will hold an open meeting to
discuss the proposed rulemaking related to the definition of “insured deposit.”
FINANCIAL SERVICES NEWS
 Royal Bank of Scotland Settles LIBOR Charges with U.S. Regulators. The Royal Bank of
Scotland plc and RBS Securities Japan Limited settled charges of manipulating the London Interbank
Offered Rate, or LIBOR, with U.S. regulators this week. RBS will pay the CFTC a $325 million civil
monetary penalty and improve certain internal controls. Similarly, RBS pled guilty to a Department of
Justice-initiated criminal charge of wire fraud and agreed to pay a $150 million penalty.
 Department of Justice Files Suit Against Credit Rating Agency S&P. Earlier this week, the
Department of Justice filed a civil suit against Standard & Poor’s credit rating agency and its parent
company McGraw-Hill Companies, Inc. The complaint alleges that S&P knowingly inflated the credit
ratings it assigned to residential mortgage-backed securities, or securitizations, and collateralized
debt obligations. The Department of Justice claims that S&P ignored conflicts of interest and ignored
credit ratings criteria for issuances between 2004 and 2007.
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Matthew Kulkin at 202-457-6056 or mkulkin@pattonboggs.com.
Health Care
LEGISLATIVE ACTIVITY
 House Republicans Estimate Burden of ACA. The House Republicans on the Ways and Means,
Energy and Commerce, and Education and Workforce Committees updated their estimate of the
regulatory burden of the Affordable Care Act (ACA). The attached analysis estimates that the ACA
will take businesses and families more than 127 million hours to comply with. An earlier estimate
released in September 2012 found that half of the compliance burden would hit small businesses.
 SGR Reform Bill. Reps. Allyson Schwartz (D-PA) and Joe Heck, D.O. (R-NV) introduced
the Medicare Physician Payment Innovation Act to ensure patient access to physicians while
promoting efficiency, quality and value in health care delivery. The bipartisan legislation permanently
repeals the Sustainable Growth Rate (SGR) formula and sets out a clear path toward comprehensive
reforms of Medicare payment and delivery systems. This week, the Congressional Budget Office
significantly lowered its estimate of the cost to permanently repeal the SGR from $245 billion to $138
billion.
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12.  Energy and Commerce and Ways and Means Outline SGR Reform. House Energy and
Commerce Committee Chairman Fred Upton (R-MI), Health Subcommittee Chairman Joe Pitts (R-
PA) and Vice-Chairman Michael Burgess (R-TX) joined Ways and Means Chairman Dave Camp (R-
MI) and Health Subcommittee Chairman Kevin Brady (R-TX) to outline efforts to repeal the SGR
formula and advance a permanent solution for the Medicare physician payment system. Following
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efforts and stakeholder meetings during the 112 Congress, the proposal would roll out in phases
including the repeal of the SGR and provide a period of predictable, statutorily-defined physician
payment rates, reform Medicare’s fee for service (FFS) physician payment system to reward
physicians who provide high quality care, and build upon the improvements made in the second
phase by also rewarding physicians who deliver efficient care.
 Medical Device Tax Repeal Bill. Representatives Paulsen (R-MN) and Kind (D-WI) re-introduced
legislation to repeal the medical device tax (H.R. 523). 20 House Democrats are original cosponsors
of the legislation. House Majority Leader Eric Cantor (R-CA) stated that repealing the medical device
tax is a way to start to roll back the increase in costs and barriers to access to care and innovation
that the ACA put into place. On the Senate side, Senators Orrin Hatch (R-UT) and Amy Klobuchar (D-
MN) re-introduced S. 232 to repeal the medical device tax.
 House VA Hearing. The House Committee on Veterans Affairs will hold a hearing on Wednesday,
February 13, titled “Honoring the Commitment: Overcoming Barriers to Quality Mental Health Care for
Veterans.”
 Senate HELP Mark. The Senate Committee on Health, Education, Labor and Pensions will meet in
Executive Session on Wednesday, February 13, to consider H.R. 307, the Pandemic and All-Hazards
Preparedness Reauthorization Act of 2013 and S. __, the Prematurity Research Expansion and
Education for Mothers Who Deliver Infants Early (PREEMIE) Act.
 House Energy and Commerce Hearings. The House Committee on Energy and Commerce
Subcommittee on Oversight and Investigations has scheduled a hearing on Wednesday, February
13, on “Influenza: Perspective on Current Season and Update on Preparedness.” The Subcommittee
on Health will also hold a hearing on Thursday, February 14, titled “SGR: Data, Measures and
Models; Building a Future Medicare Physician Payment System.”
 House Ways and Means Hearing. The House Committee on Ways and Means will hold a hearing
on Thursday, February 14, on Tax Reform and Charitable Contributions.
 Senate Finance Hearing. The Senate Committee on Finance will hold a hearing on Thursday,
February 14, on “Health Insurance Exchanges: Progress Report.” Witnesses include Gary Cohen,
Deputy Administrator and Director of CMS; Don Hughes, Advisor to the Governor of Arizona;
Christine Ferguson, Director of the Rhode Island Health Benefit Exchange; Bettina Riveros, Advisor
to the Governor and Chair of the Delaware Health Care Commission.
REGULATORY ACTIVITY
 AHRQ Health IT Update: Children's EHR Format. The Agency for Healthcare Research and Quality
(AHRQ) announced a new children’s electronic health record database that can help software
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13. developers create better Electronic Health Records (EHRs) for the care of children. The children’s
EHR format establishes a blueprint for EHRs to better meet the needs of health care providers and
pediatric patients by combining best practices in clinical care, information technology and insights
from experts in children’s health. Since few EHRs have been created with children’s needs in mind,
gaps in functionality, data elements and other areas tend to occur. The format guides EHR
developers in understanding the requirements for functionality, data standards, usability and
interoperability of an EHR system to more optimally support the provision of health care to children –
especially those enrolled in Medicaid or the Children’s Health Insurance Program (CHIP). The format
is readily accessible and adoptable by EHR developers for use during product development or
enhancement. In addition to providing guidance to developers, the format can provide guidance for
EHR system purchasers and policy makers. For example, policy makers and purchasers can use the
requirements when assessing functionality of EHRs.
OTHER HEALTH NEWS
 CBO Report. The Congressional Budget Office (CBO) posted its annual Budget and Economic
Outlook for fiscal years 2013 to 2023. If the current laws that govern federal taxes and spending do
not change, the budget deficit will shrink this year to $845 billion, or 5.3 percent of gross domestic
product (GDP), its smallest size since 2008. In CBO’s baseline projections, deficits continue to shrink
over the next few years, falling to 2.4 percent of GDP by 2015. Deficits are projected to increase later
in the coming decade, however, because of the pressures of an aging population, rising health care
costs, an expansion of federal subsidies for health insurance, and growing interest payments on
federal debt. As a result, federal debt held by the public is projected to remain historically high relative
to the size of the economy for the next decade. By 2023, if current laws remain in place, debt will
equal 77 percent of GDP and be on an upward path, CBO projects.
 After this year, economic growth will speed up, CBO projects, causing the unemployment rate to
decline and inflation and interest rates to eventually rise from their current low levels. Nevertheless,
the unemployment rate is expected to remain above 7.5 percent through next year; if that happens,
2014 will be the sixth consecutive year with unemployment exceeding 7.5 percent of the labor force—
the longest such period in the past 70 years.
 MACPAC Meeting. The Medicaid and Chip Payment and Access Commission (MACPAC) has
scheduled a public meeting on February 12-13. The agenda includes the following: sessions on
Medicaid and public health, an update on the Medicaid primary care Physician payment increase,
CMS initiatives to improve data for program operations and evaluation, an overview of partial-benefit
dual eligibles, a review of the draft March report, a review of new proposed Medicaid rule, a March
chapter review, a review of recommendations for March report for eligibility issues in Medicaid and
CHIP, and state Medicaid managed care enrollment policies.
 IOM Meeting. The Institute of Medicine’s (IOM) Board on Health Care Services will hold a workshop
st
on Monday, February 11, on “Implementing a National Cancer Clinical Trials System for the 21
Century.” The workshop will examine ongoing activities in the implementation of the
recommendations put forth in the IOM consensus report.
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14.  The Board on Global Health will release a report on Wednesday, February 13, titled “Countering the
Problem of Substandard and Falsified Drugs.”
 The IOM will also hold a forum on International Regulatory Harmonization Amid Globalization of
Biomedical Research and Medical Product Development on February 13-14. The workshop will
address needs for international harmonization of regulatory standards to support the development,
evaluation and surveillance of biomedical products, specifically identifying principles, potential
approaches and strategies to advance the development or evolution of more harmonized regulatory
standards.
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Eugenia Edwards at 202-457-5622 or eedwards@pattonboggs.com.
International, Defense, and Homeland Security
LEGISLATIVE ACTIVITY
 Middle East Developments. Following the White House’s announcement this past week that
President Obama will visit Israel, the Palestinian Authority, Jordan and possibly other Middle Eastern
destinations this spring on the first foreign trip of his second term, the Administration will gear up to
make progress on Israeli-Palestinian issues in the coming months. Secretary of State John Kerry has
pushed the Administration to make the Middle East Peace Process a priority once again, and the
announcement of the President’s trip suggests that the White House is heeding the new Secretary’s
advice. President Obama is likely to visit Israel in late March, after Israeli Prime Minister Benjamin
Netanyahu’s deadline to present his new government. The Prime Minister is almost certain to form a
more centrist coalition than his previous government, after moderates made gains in the Knesset in
the recent Israeli elections. Still, even if the next Israeli government is relatively more amenable to
negotiations with the Palestinians, the question remains whether Palestinian Authority President
Mahmoud Abbas credibly can simultaneously represent the interests of the Hamas-controlled Gaza
Strip and be willing to sign onto the Quartet’s principles for further negotiations. If President Abbas
somehow could straddle that line, then the onus would be on Prime Minister Netanyahu to agree that
concerted discussions should move forward.
 Defense Spending Developments. In advance of the sequestration and government shutdown
deadlines next month, defense industry leaders, such as BAE, are starting to embrace what they
deem a balanced approach of targeted spending cuts, including on defense, and revenue increases.
The industry’s new emphasis, articulated in a meeting with White House officials this past week,
could help provide cover to President Obama, Senate Armed Services Committee Chairman Carl
Levin (D-MI), and other Congressional Democrats, as they attempt to move a modest anti-
sequestration replacement package in the coming weeks. However, most Congressional Republicans
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15. appear increasingly willing to take their fiscal and electoral chances with sequestration, rather than
agree to Democratic demands for closing revenue loopholes and other revenue raisers.
 Senate Select Committee on Intelligence and Central Intelligence Agency (CIA) Developments.
Following Thursday’s contentious nomination hearing for John Brennan to be the next Director of the
CIA, it is not yet clear when the Committee will vote on the nomination. Given Brennan’s role as
perhaps the leading architect of the Administration’s drone program for the last four years as White
House Counterterrorism Adviser, Senator Ron Wyden (D-OR) and other circumspect Committee
members will request, and likely receive, ample time to examine the Administration’s memorandum
outlining the legal rationale for drone killings abroad of U.S. citizens who are considered enemy
combatants.
 Senate Armed Services Committee (SASC) Developments. Similarly, the timing of a SASC vote
on Secretary of Defense-designate Chuck Hagel’s nomination remains unclear. All 12 SASC
Republicans and 13 other Senate Republicans requested more information on former Senator
Hagel’s financial disclosures, after which Chairman Levin acceded to their request and delayed a
possible Committee confirmation vote this past Thursday.
 Senate Foreign Relations Committee (SFRC) Developments. The SFRC will vote on
Subcommittee jurisdictions and assignments on Wednesday, February 13. However, the SFRC’s
work is typically more centralized than the Subcommittee-oriented House Foreign Affairs Committee.
 House Foreign Affairs Committee (HFAC) and State Department Developments. HFAC will
examine the largely successful French-led intervention to combat Islamist rebels in northern Mali at a
hearing on Thursday. Assistant Secretary of State for African Affairs Johnnie Carson will describe and
defend the rather modest supporting role the United States has played in the effort.
 House Homeland Security Committee (HHSC) and Department of Homeland Security (DHS)
Developments. The HHSC will commerce its hearing schedule for the new Congress this coming
week. On Wednesday, February 13, new HHSC Chairman Michael McCaul (R-TX) will hold a broad-
based hearing examining new perspective on homeland security threats. On Friday, February 14,
Oversight Subcommittee Chairman Jeff Duncan (R-SC) will delve into DHS spending decisions, likely
touching on body scanner and radiation portal deployments, among other issues.
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Scott Thompson at 202-457-6110 or sthompson@pattonboggs.com.
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16. Tax
LEGISLATIVE ACTIVITY
 President, in Press Conference, Pushes Comprehensive Tax Reform. The President, on
Tuesday, February 5, pressed Congress to find a way to avert the March 1 sequestration
deadline that would bring automatic spending cuts to defense and domestic programs. President
Obama called for a short-term package of alternative spending cuts and tax reform that would
delay the sequester for some short time period. In addition, the President maintained that the
long-term package offered to Republicans in December, which included entitlement changes
such as chained-CPI, as well as revenue raising tax reform was still an option. Following the
President’s brief remarks, White House Press Secretary Jay Carney stated that tax reform which
raises $800 billion in revenue is achievable and highlighted certain areas of the Code, such as
the carried interest exception, oil and gas provisions, 28 percent deduction cap, and corporate jet
depreciation that would be ripe for reform.
 Tax Hearings Next Week. The following tax hearings are scheduled in the House Ways and
Means and Senate Finance Committees next week:
o Wednesday, February 13 – Senate Finance hearing to Consider the Nomination of Jacob
J. Lew, of New York, to be Secretary of the Treasury
o Friday, February 14 – House Ways and Means hearing on Tax Reform and Charitable
Contributions
o Friday, February 14 – Senate Finance hearing titled Health Insurance Exchanges:
Progress Report
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Joseph Urso at 202-457-5349 or jurso@pattonboggs.com.
TechComm
LEGISLATIVE ACTIVITY
 STELA. The House Energy and Commerce Subcommittee on Communications and Technology
will hold a hearing on Wednesday, February 13, titled “Satellite Video 101.” Every five years
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17. Congress considers legislation to reauthorize the statutory license that allows satellite carriers to
retransmit television programs that are embodied in distant broadcast transmissions, provided
that the satellite carrier pays royalties to the Copyright Office. The Satellite Television Extension
and Localism Act (STELA) is expected to expire on December 31, 2014, but the Subcommittee is
holding what is expected to be a series of hearings on its reauthorization. This hearing is likely to
provide a primer on the statute to new Subcommittee members who were not present for its last
reauthorization. Expected to testify are the Association of Public Television Stations, National
Association of Broadcasters, DISH Network and the Motion Picture Association of America.
 Senate Commerce Committee. Also on Wednesday, February 13, the Senate Committee on
Commerce, Science, and Transportation will hold an executive session to ratify Subcommittee
assignments and to approve the Rules and Budget Resolution for the Committee.
REGULATORY ACTIVITY
 FirstNet. The Board of the First Responder Network Authority (FirstNet) will hold a public
meeting on Tuesday, February 12, at the National Institute of Standards and Technology (NIST)
in Boulder, Colorado. Although FirstNet board members were appointed in August 2012, they
have only had two meetings. The meeting on Tuesday comes a week after the National
Telecommunications and Information Administration (NTIA) announced the availability of $121.5
million in grants to help states, regions, local governments, tribes and territories plan for a
nationwide public safety broadband network in the 700 MHz band that FirstNet will oversee.
NTIA said that grant funds will be available to 56 states and territories in two phases. Grants will
be available for phase 1, which will support planning, consultation, education and outreach; and
phase 2, which will be dedicated to the collection of information on infrastructure and equipment
that FirstNet could use as part of the nationwide network. Applications for grants are due March
19, and NTIA said it expects to award the grants by July 15.
Contact Information
For additional insights about likely policy developments, please feel free to contact the author of this
section: Jennifer Cetta at 202-457-6546 or jcetta@pattonboggs.com.
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