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LEGISLATION COMMITTEE

Meeting Date:	07/11/2022
Subject: Federal Legislation of Interest
Submitted For:	LEGISLATION COMMITTEE
Department:	County Administrator
Referral No.:	2022-09
Referral Name:
Presenter:	Paul Schlesinger, Thorn Run Partners	Contact:	L. DeLaney, 925-655-2057

Information

Referral History:

The Legislation Committee regularly receives reports on federal legislation and provides direction to staff and the County's federal advocates.

Referral Update:

— DEMOCRATS MOVE ON RECONCILIATION WITH UPDATED DRUG PRICING BILL. Senate Democrats are taking a big step forward on reviving the budget reconciliation process with the goal of circumventing GOP opposition and passing elements of President Joe Biden's economic agenda. Earlier this morning, Majority Leader Chuck Schumer (D-NY) and Finance Committee Chair Ron Wyden (D-OR) released an updated version of the Democratic drug pricing legislation, and will submit it to the Senate Parliamentarian for a "Byrd bath" review to ensure the bill complies with the chamber's budgetary rules. A full list of the changes to the prescription drug pricing title can be viewed here.

Context. According to reports from Capitol Hill, Leader Schumer and Sen. Joe Manchin (D-WV) — a key holdout of the original "Build Back Better" legislation — are still negotiating policies that could be included within the new reconciliation bill. These include an extension of the Affordable Care Act (ACA) premium subsidies, a host of clean energy and climate provisions, as well as tax reform, among others. Before a clear path forward emerges, Democratic leadership will also need to win over the support of moderate Sen. Kyrsten Sinema (D-AZ) — who has opposed some of the previously-introduced tax policies — as well as lawmakers from the Progressive Caucus who have pushed for a more ambitious social spending package.

Additionally...The new reconciliation push from Democrats has implications for bipartisan legislative items for the balance of the 117th Congress. In a tweet last week, Senate Minority Leader Mitch McConnell (R-KY) issued a warning that "there will be no bipartisan USICA" if Democrats move forward on reconciliation. As such, other bills that will need support on both sides of the aisle to pass — including insulin pricing legislation, reauthorization of several user fee agreements at the Food and Drug Administration (FDA), and fiscal year (FY) 2023 appropriations — could be stalled.

What's next? Discussions on reviving the reconciliation process will hit a critical make-or-break stretch this month as floor time for the rest of the year dwindles. Should an agreement that has the support of all 50 Democrats be reached, Majority Leader Chuck Schumer (D-NY) will look to pass the filibuster-proof budget package prior to the end of the summer. The House would then need to clear this legislation before the current reconciliation instructions expire on October 1, 2022. Meanwhile, Senate Democrats are currently short of the 50 votes they need to advance their reconciliation bill on the floor, as Sen. Pat Leahy (D-VT) is out of commission while he recovers from a broken hip.

THE LATEST ON BUDGET RECONCILIATION. Senate Democrats are moving forward on reviving the budget reconciliation process with the goal of circumventing GOP opposition and passing elements of President Joe Biden's economic agenda.

Democratic leadership is reportedly close to releasing an updated version of the tax title that would include hikes on high-income earners to shore up the solvency of Medicare. Additional policies related to tax, the Affordable Care Act (ACA), climate, and clean energy are expected to be unveiled in the coming days and weeks ahead.
On July 6, Majority Leader Chuck Schumer (D-NY) and Finance Committee Chair Ron Wyden (D-OR) submitted an updated version of the Democratic drug pricing legislation to the Senate Parliamentarian for a "Byrd bath" review to ensure the bill complies with the chamber's budgetary rules.
Discussions on reviving the reconciliation process will hit a critical make-or-break stretch asthe remainder of the 117th Congress winds down. The filibuster-proof legislation must clear both chambers before the current reconciliation instructions expire on October 1, 2022.

— HOUSE FINANCIAL SERVICES COMMITTEE ANNOUNCES JULY HEARING SCHEDULE. House Financial Services Committee (HFSC) Chair Maxine Waters (D-CA) announced the committee's hearing schedule for the month of July.

In addition to a markup on July 27, the committee will hold hearings on: (1) reforms to the Community Reinvestment Act (CRA); (2) oversight of the Securities and Exchange Commission's (SEC) Division of Enforcement; (3) the impact of mass shootings on local economies and economic growth; and (4) oversight of the Federal Housing Finance Agency (FHFA).

Attachment A: Thorn Run memo "Summary of FY 2023 House Appropriations Legislation for Local Governments and Public Entities."

Recommendation(s)/Next Step(s):

ACCEPT the report on federal legislation and provide direction and/or input, as needed.

Attachments
Attachment A: Summary of House Appropriations