Capitol Insight

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The Legislative Action Network brings its members the latest news from Capitol Hill each week Congress is in session. Capitol Insight, L.A.N.'s Grassroots E-Newsletter, provides the best Capitol Hill insider news available. From L.A.N. Action and Call Alerts to the latest on fast-moving legislation, it's in Capitol Insight. Join the L.A.N. to begin receiving Capitol Insight - dealers and dealership employees are welcome as well.


March 12, 2010

NHTSA PONDERS NEED FOR 'BLACK BOX' IN CARS
lanlogo_8-2The House Energy and Commerce Committee's Subcommittee on Commerce, Trade, and Consumer Protection held a hearing entitled, "NHTSA Oversight: The Road Ahead," on Thursday, March 11 to examine the operations of the National Highway Traffic Safety Administration (NHTSA) and its handling of the recent Toyota recalls.

Following the hearing, NHTSA Administrator David Strickland said the agency was considering the need for requiring "black boxes" - or event data recorders (EDR) - in all vehicles sold in America. Such recorders would likely track actions that occur the seconds before and after a car crash. Since 2006, event data recorders have been encouraged for automakers, but not required, leaving the technology by which to record such information up to the manufacturer.

Various considerations are under review by NHTSA and certain Congressional committees that have jurisdiction over the agency. Future oversight for automakers could include, but would not necessarily be limited to, ruling that brake-override technology is mandatory; requiring the data from EDR's be easily accessible by regulators; and increasing funding for additional staff to augment NHTSA's investigative efforts. The evaluation at NHTSA has just begun and this issue will continue to take shape in the coming months.

A HOUSE DIVIDED OVER HEALTH CARE
Health care reform legislation is edging its way closer to enactment, winding its way through the Senate and House chambers. Earlier this week, House Majority Leader Steny Hoyer (D-Md.) said it is possible his chamber could vote on the health care bill as early as next week. President Barack Obama had set a deadline of March 18 for passage, but Democratic leadership was concerned an agreement could not be reached within that time frame. However, as President Obama announced the postponement of his scheduled travel to Asia, House Speaker Nancy Pelosi (D-Calif.) said today that she hopes to call a vote on health care by March 21.

There is no doubt the health care reform debate has been a lengthy, complicated one, and the Senate parliamentarian added to the perplexity by ruling that President Obama must sign the Senate health care bill into law before Congress can approve the changes the House wants to make to the legislation. Such changes will be considered under the Senate's reconciliation process where the rules prevent Republicans from filibustering the bill. But House Democrats worry that if the President signs the bill into law before their changes are made, then the Senate could indefinitely hold up their amendments.

Speaker Pelosi also mentioned the public insurance option will not be included in the package of changes to the Senate bill. "We had it, we wanted it...it's not in the reconciliation...because [the Senate doesn't] have the votes to have it in there," said Pelosi at her weekly press briefing.

CONGRESS SAYS GMAC HAS NO PLAN, DESPITE CASH INFUSION
The Congressional Oversight Panel, formed to oversee the Treasury Department's dissemination of TARP funds, said that despite the government's $17.2 billion cash infusion into GMAC, Inc., the company has no business plan in place. The panel, therefore, recommended the company break apart and move auto finance back to General Motors. In its review of the Treasury's handling of GMAC, the Congressional Oversight Panel said that it "is deeply concerned that Treasury has not required GMAC to lay out a clear path to viability or a strategy for fully repaying taxpayers." Following the company's bailout in 2008, General Motor's lending arm, GMAC, became a bank holding company.
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Registration Open:
AIADA's 4th Annual International Auto Industry Summit
This year's Auto Summit will be held in Washington, D.C. on Wednesday and Thursday, May 19 and 20, 2010. The location is the same as last year - the St. Regis Hotel. Registration is open so plan now to fly to Washington for these two riveting days of political players, industry panels, and dealer advocacy visits on Capitol Hill. Registration is already open. Sign up today!


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