ALEXANDRIA, VA -- Things change in a week. The House Republicans are gathered for a weekend strategy session and say that they will emerge unified on a lobbying and ethics reform strategy. Rumor has it that after initial grandstanding by opportunistic politicians seeking to be "holier than thou," the reality of the lobby reform proposals have set in and both parties are quietly shying away from some of the more drastic measures. New House Majority Leader John Boehner has gone further by stating that the current rules are working, as evidenced by the indictments of several lobbyists and members of Congress. 

Nevertheless, the Senate marches on. This week there were several hearings on lobbying and campaign finance reform. Of note was a Senate Indian Affairs Committee hearing on the "Tribal Campaign Loophole" that allows tribes to use corporate gambling profits to contribute virtually unlimited funds to politicians. A current member of the Federal Election Commission (FEC) commented after the hearing:

This is a matter of fundamental fairness and equity. However, if Congress decides that there is no corruption justifying applying the same restrictions to Indian tribes that everyone else has to live with, perhaps Congress should also question why others have those restrictions. Only Congress can correct this statutory glitch--the FEC does not have the ability to change the statutory provisions that created this loophole. Congress could have fixed this in 2002 when it passed the McCain-Feingold campaign reform law that amended FECA but chose not to--will it finally remedy this problem now?

Exposure on this issue that NACS championed four years ago is growing, and there are now several proposals to close the loophole.

We received word yesterday that the House Energy and Commerce Committee Subcommittee on Commerce, Trade, and Consumer Protection will be holding a hearing on Wednesday, Feb. 15. This hearing, "The Law and Economics of Interchange Fees," is the result of testimony (PDF) given last year by NACS 2004-2005 Board Chairman Bill Douglass before the full House Energy Committee looking into gasoline price spikes. 

Although details of the hearing are still being put together, it appears that there will be four witnesses including NACS CEO Hank Armour. The first congressional battle over interchange fees is about to be fought. Look for full coverage of the hearing next Thursday in NACS Daily.

Have a great weekend

Lyle Beckwith
Sr. Vice President, Government Relations