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Stock Buybacks: Background and Reform Proposals [February 27, 2019]
From the Document: "In 2018, U.S. corporations announced plans to buyback a record $1.08 trillion of their own stock--a trend that has attracted scrutiny and generated a number of legislative proposals designed to curb the practice's prevalence. This Legal Sidebar provides a general overview of the regulatory framework surrounding stock buybacks and these recent reform proposals. The Sidebar (1) reviews the debate over the social value of stock buybacks, (2) discusses the regulatory regime surrounding buybacks, and (3) examines a number of proposals to reform this framework that have been proposed in legislation, popular commentary, and the academic literature."
Library of Congress. Congressional Research Service
Sykes, Jay B.
2019-02-27
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Access to Broadband Networks: Net Neutrality [Updated March 11, 2019]
From the Document: "The move to place restrictions on the owners of the networks that comprise and provide access to the internet, to ensure equal access and nondiscriminatory treatment, is referred to as 'net neutrality.' While there is no single accepted definition of net neutrality most agree that any such definition should include the general principles that owners of the networks that comprise and provide access to the internet should not control how consumers lawfully use that network; and should not be able to discriminate against content provider access to that network. Determining the appropriate framework to ensure an open internet is central to the debate over broadband access, and is an issue that the Federal Communications Commission (FCC) has been grappling with for decades. Some policymakers contend that more proscriptive regulations, such as those contained in the FCC's 2015 Open Internet Order (2015 Order), are necessary to protect the marketplace from potential abuses which could threaten the net neutrality concept. Others contend that existing laws and the current, less restrictive approach, contained in the FCC's 2017 Restoring Internet Freedom Order (2017 Order), provide a more suitable framework. There is also a growing consensus that Congress should amend the 1934 Communications Act, as amended, (Communications Act) to address the debate."
Library of Congress. Congressional Research Service
Gilroy, Angele A.
2019-03-11
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World Trade Organization [Updated March 7, 2019]
From the Document: "The World Trade Organization (WTO) was established on January 1, 1995, following the ratification of the Uruguay Round Agreements and today includes 164 members. It succeeded the General Agreement on Tariffs and Trade (GATT), which was created in 1947 as part of the post-WWII effort to build a stable, open international economic framework. The WTO has three basic functions: (1) administers existing agreements; (2) serves as a negotiating forum for new trade liberalization; and (3) provides a mechanism to settle trade disputes among the parties. The multiple WTO Agreements: cover trade in goods, services and agriculture; remove tariff and nontariff barriers; and establish rules on government practices that directly relate to trade--for example, trade remedies, technical barriers to trade, customs valuation, intellectual property rights, and government procurement. The Agreements are based on the principles of nondiscrimination among countries, national treatment, and transparency of trade rules and regulations. Some exceptions, however, such as preferential treatment for developing countries and regional and bilateral free trade agreements, are allowed."
Library of Congress. Congressional Research Service
Fergusson, Ian F.; Fefer, Rachel F.
2019-03-07
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Wells Fargo-- A Timeline of Recent Consumer Protection and Corporate Governance Scandals [March 8, 2019]
From the Document: "This In Focus provides a brief overview of federal regulation of Wells Fargo and a timeline of key events involving the company since the scandal's disclosure. It then discusses a few relevant policy issues, including consumer protection and corporate governance, and highlights recent instances of congressional oversight of the bank."
Library of Congress. Congressional Research Service
Cooper, Cheryl R.; Gnanarajah, Raj
2019-03-08
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Activities-Based Regulation and Systemic Risk [Updated March 11, 2019]
From the Document: "Past financial crises have shown that systemic risk can emanate from financial firms or activities. It can be caused by the failure of a large firm (hence, the moniker 'too big to fail') or it can be caused by correlated losses among many small market participants. Although historical financial crises have centered on banks, nonbank financial firms were also a source of instability in the 2007-2009 crisis. [...] As discussed in this Insight, all four of the nonbanks that were designated by FSOC [Financial Stability Oversight Council] have since been dedesignated, and the size threshold for enhanced regulation of banks was recently increased. In March 2019, FSOC issued proposed guidance stating it would give precedence to an 'activities-based' systemic risk regulation--regulating particular financial activities or practices to prevent them from causing financial instability--over an institution-based regulation for nonbanks. The two approaches, however, need not be mutually exclusive. International insurance regulation has also moved away from a focus on institution-based regulation and toward activities-based regulation recently.'"
Library of Congress. Congressional Research Service
Webel, Baird; Labonte, Marc
2019-03-11
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2018 Farm Bill Primer: What is the Farm Bill? [March 8, 2019]
From the Document: "The farm bill is an omnibus, multiyear law that governs an array of agricultural and food programs. It provides an opportunity for policymakers to comprehensively and periodically address agricultural and food issues. In addition to developing and enacting farm legislation, Congress is involved in overseeing its implementation. [...] Some farm bill programs would expire without reauthorization, such as the nutrition assistance programs and the commodity programs. Without reauthorization, certain basic farm commodities would revert to long-abandoned--and potentially costly--supply-control and price regimes under permanent law dating back to the 1940s. Many discretionary programs would not have statutory authority to receive appropriations. Other programs have permanent authority and do not need reauthorization (e.g., crop insurance) but might be included in a farm bill to make policy changes or achieve budgetary goals."
Library of Congress. Congressional Research Service
Johnson, Renée; Monke, Jim
2019-03-08
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Firearm Background Checks: Current Federal Framework and the House-Passed Proposals in the 116th Congress [Updated March 1, 2019]
From the Document: "Federal law requires a background check for many, but not all, firearms transfers. The Brady Handgun Violence Prevention Act (Brady Act), Pub. L. No. 103-159, 107 Stat. 1536, established the federal framework for firearms background checks. Under the Act, the Federal Bureau of Investigation (FBI) established the National Instant Criminal Background Check System (NICS), which queries various government records that could reveal a prospective transferee is ineligible to receive a firearm. Since the Brady Act became law in 1993 and NICS went live in 1998, the framework governing the background check system has remained largely unchanged. Amendments to the Brady Act generally have addressed getting more records entered into the system by state and federal entities."
Library of Congress. Congressional Research Service
Peck, Sarah Herman
2019-03-01
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Iran: Efforts to Preserve Economic Benefits of the Nuclear Deal [Updated February 26, 2019]
"On May 8, 2018, President Trump announced that the United States would cease implementing U.S. commitments under the 2015 multilateral Joint Comprehensive Plan of Action (JCPOA) with Iran. On November 5, 2018, at the end of a 'wind down period,' all pre-JCPOA U.S. sanctions on foreign firms that conduct transactions in all of Iran's core economic sectors, including energy, banking, shipping, and manufacturing, went back into effect. These include sanctions on 'petroleum-related transactions' and transactions by foreign banks with Iran's Central Bank. In addition, foreign firms that transact business with entities designated by the United States for sanctions could face virtual exclusion from the U.S. economy."
Library of Congress. Congressional Research Service
Cimino-Isaacs, Cathleen D.; Katzman, Kenneth; Mix, Derek E.
2019-02-26
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Gulf of Guinea: Recent Trends in Piracy and Armed Robbery [February 26, 2019]
"Armed attacks against ships in the oil-rich Gulf of Guinea surged in 2018, making these waters off West and Central Africa the world's most dangerous for piracy and armed robbery. The escalation confirms the Gulf of Guinea's status as the main locus for maritime insecurity in Africa, which had long been associated with the Horn of Africa, particularly Somalia. Rising piracy and armed robbery in the Gulf of Guinea likely reflects the region's growing prominence in global maritime trade, as well as capacity and coordination gaps among many of the region's navies."
Library of Congress. Congressional Research Service
Husted, Tomas F.
2019-02-26
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International Illegal Logging: Background and Issues [February 26, 2019]
"Illegal logging is a pervasive problem throughout the world and generally is defined as the harvest, transport, purchase, or sale of timber in violation of national laws. Illegal logging can lead to degraded forest ecosystems and loss of biodiversity, impede economic development, challenge local governance, and contribute to crime and corruption. In regions with large tropical forests, such as the Amazon and areas in Central Africa and Southeast Asia, illegal logging is estimated to account for 50%-90% of all forestry activities, according to the International Criminal Police Organization (INTERPOL)."
Library of Congress. Congressional Research Service
Sheikh, Pervaze A.; Bermejo, Lucas F.; Procita, Kezee
2019-02-26
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Federal Records: Types and Treatments [February 26, 2019]
"The Federal Records Act (FRA; 44 U.S.C. Chapters 21, 29, 31, and 33), enacted in 1950 and amended since, governs the collection, retention, and preservation of federal agency records. Congress deemed federal records worthy of preservation for the information they provide on the transaction of public business and also because they document the 'organization, functions, policies, decisions, procedures, and essential transactions' of the government (44 U.S.C. §3301). The FRA also governs how federal records are to be destroyed or provided to the National Archives and Records Administration (NARA) for 'permanent' archiving within the National Archives of the United States."
Library of Congress. Congressional Research Service
Stuessy, Meghan M.
2019-02-26
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Venezuela Oil Sector Sanctions: Market and Trade Impacts [Updated February 11, 2019]
"On January 28, 2019, the Trump Administration imposed sanctions on Venezuela's state-owned oil company, Petroleos de Venezuela, S.A. (PdVSA), adding to existing Venezuela sanctions. The Department of the Treasury determined that persons (e.g., individuals and companies) operating in Venezuela's oil sector are subject to sanctions in order to apply economic pressure on the government of Nicolas Maduro and facilitate a transition to democracy. Subsequently, Treasury's Office of Foreign Assets Control (OFAC) added PdVSA--including all entities in which PdVSA has a 50% or more ownership position--to its Specifically Designated Nationals (SDN) list."
Library of Congress. Congressional Research Service
Brown, Phillip (Specialist in Energy Policy)
2019-02-11
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Low Interest Rates, Part 1: Economic and Fiscal Implications [Updated February 25, 2019]
From the Document: "When describing interest rate trends, each debt instrument is different. The interest rate on every debt instrument is determined by market supply and demand for that instrument, and each instrument has different characteristics, including issuer, maturity length, and liquidity. Analysts often focus on two specific interest rates to gauge overall interest rate trends--the yield on Treasuries (marketable federal debt instruments) and the federal funds rate (the overnight interbank lending rate)."
Library of Congress. Congressional Research Service
Labonte, Marc
2019-02-25
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Low Interest Rates, Part 2: Implications for the Federal Reserve [February 25, 2019]
From the Document: "Interest rates have been unusually low by historical standards since the 2007-2009 financial crisis. This Insight discusses the implications for monetary policy, and it frames this discussion in terms of the neutral interest rate. It is the sequel to a previous Insight, 'Low Interest Rates, Part 1'."
Library of Congress. Congressional Research Service
Labonte, Marc
2019-02-25
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Management of the Colorado River: Water Allocations, Drought, and the Federal Role [March 1, 2019]
From the Document: "The Colorado River Basin covers more than 246,000 square miles in seven U.S. states (Wyoming, Colorado, Utah, New Mexico, Arizona, Nevada, and California) and Mexico. Pursuant to federal law, the Bureau of Reclamation (part of the Department of the Interior) manages much of the basin's water supplies. Colorado River water is used primarily for agricultural irrigation and municipal and industrial (M&I) uses, but it also is important for power production, fish and wildlife, and recreational uses. In recent years, consumptive uses of Colorado River water have exceeded natural flows. This causes an imbalance in the basin's available supplies and competing demands. A drought in the basin dating to 2000 has raised the prospect of water delivery curtailments and decreased hydropower production, among other things. In the future, observers expect that increasing demand for supplies, coupled with the effects of climate change, will further increase the strain on the basin's limited water supplies."
Library of Congress. Congressional Research Service
Stern, Charles V.; Sheikh, Pervaze A.
2019-03-01
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India, Pakistan, and the Pulwama Crisis [Updated February 26, 2019]
"On February 14, 2019, an explosives-laden SUV rammed into a convoy carrying paramilitary police in India's Jammu and Kashmir (J&K) state. At least 40 personnel were killed in the explosion. The suicide attacker was a member of Jaish-e-Mohammad (JeM), a Pakistan-based terrorist group that claimed responsibility for the bombing. The attack took place in Pulwama in the heart of the Kashmir Valley, site of a 30-year-old separatist conflict that pits the Indian government against Kashmiri militants who seek independence for India's only Muslim-majority state or its merger with neighboring Pakistan. Islamabad claims the disputed territory and is widely believed to have provided arms, training, and safe haven to militants over the decades. On February 26, Indian jets reportedly bombed a JeM facility inside Pakistan. The crisis has renewed fears of war between South Asia's two nuclear-armed powers."
Library of Congress. Congressional Research Service
Kronstadt, K. Alan
2019-02-26
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Pipeline Security: Homeland Security Issues in the 116th Congress [March 1, 2019]
"Ongoing threats against the nation's natural gas, oil, and refined product pipelines have heightened concerns about the security risks to these pipelines, their linkage to the electric power sector, and federal programs to protect them. In a December 2018 study, the Government Accountability Office (GAO) stated that, since the terrorist attacks of September 11, 2001, 'new threats to the nation's pipeline systems have evolved to include sabotage by environmental activists and cyber attack or intrusion by nations.' In a 2018 'Federal Register' notice, the Transportation Security Administration stated that it expects pipeline companies will report approximately 32 'security incidents' annually--both physical and cyber. The Pipeline and LNG [Liquefied Natural Gas] Facility Cybersecurity Preparedness Act (H.R. 370, S. 300) would require the Secretary of Energy to enhance coordination among government agencies and the energy sector in pipeline security; coordinate incident response and recovery; support the development of pipeline cybersecurity applications, technologies, demonstration projects, and training curricula; and provide technical tools for pipeline security."
Library of Congress. Congressional Research Service
Parfomak, Paul W.
2019-03-01
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Debt Limit Since 2011 [Updated March 5, 2019]
From the Document: "The Constitution grants Congress the power to borrow money on the credit of the United States-- one part of its power of the purse--and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in the past decade, in part because of the accumulation of federal debt in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years."
Library of Congress. Congressional Research Service
Austin, D. Andrew
2019-03-05
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First Step Act of 2018: An Overview [March 4, 2019]
From the Document: "On December 21, 2018, President Trump signed into law the First Step Act of 2018 (P.L. 115-391). The act was the culmination of several years of congressional debate about what Congress might do to reduce the size of the federal prison population while also creating mechanisms to maintain public safety. [...] This report provides an overview of the provisions of the First Step Act. The act has three major components: (1) correctional reform via the establishment of a risk and needs assessment system at BOP [Bureau of Prisons], (2) sentencing reform that involved changes to penalties for some federal offenses, and (3) the reauthorization of the Second Chance Act of 2007 (P.L. 110-199). The act also contains a series of other criminal justice-related provisions that include, for example, changes to the way good time credits are calculated for federal prisoners, prohibiting the use of restraints on pregnant inmates, expanding the market for products made by the Federal Prison Industries, and requiring BOP to aid prisoners with obtaining identification before they are released."
Library of Congress. Congressional Research Service
James, Nathan
2019-03-04
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Funding for EPA Water Infrastructure: A Fact Sheet [Updated March 6, 2019]
For the Department: "Federal funding to assist communities with capital projects to meet the water-related goals and requirements of federal laws has been provided through programs in the Clean Water Act (CWA) and the Safe Drinking Water Act. This report provides a table showing budget requests and appropriations for the Environmental Protection Agency's (EPA's) water infrastructure assistance programs under these two laws since 1973. The Water Pollution Control Act of 1948 (P.L. 80-845) established a grant program to assist localities with planning and design work and authorized loans for treatment plant construction. In subsequent amendments, federal assistance increased and a construction grant program replaced the loan program. In the Federal Water Pollution Control Act Amendments of 1972 (P.L. 92-500, popularly known as the Clean Water Act), Congress established the first national standards for sewage treatment and significantly increased federal funding to help communities meet the law's standards."
Library of Congress. Congressional Research Service
Ramseur, Jonathan L.; Tiemann, Mary
2019-03-06
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February 2019 Trump-Kim Hanoi Summit [March 6, 2019]
From the Document: "On February 27 and 28, President Donald Trump and North Korean leader Kim Jong-un met in Hanoi to discuss North Korea's nuclear and missile programs, as well as the establishment of a new relationship between the two countries. The two leaders had held one prior summit, in Singapore, in June 2018. The Hanoi summit ended earlier than scheduled, with the cancelation of both a lunch and a ceremony to sign a joint statement. President Trump and U.S. officials said that the two leaders parted amicably, and that they expected dialogue would resume at a later date. An article in North Korea's state-run media also presented the summit in a positive light and mentioned that the two leaders agreed to 'continue productive dialogues.' South Korean President Moon Jae-in offered to help the United States and North Korea narrow their differences. The United States and North Korea (Democratic People's Republic of Korea, DPRK) each attributed the summit's breakdown to their inability to resolve differences over the scope and sequencing of concessions, specifically DPRK denuclearization measures in exchange for sanctions relief."
Library of Congress. Congressional Research Service
Manyin, Mark E.; Chanlett-Avery, Emma; Nikitin, Mary Beth Dunham . . .
2019-03-06
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Foreign Affairs Overseas Contingency Operations (OCO) Funding: Background and Current Status [Updated March 4, 2019]
From the Document: "The 116th Congress may debate Overseas Contingency Operations (OCO) funding levels in the context of the FY2020 foreign affairs and defense budgets. A key feature of OCO funds is their effective exemption, like emergency funds, from the discretionary spending limits established by the Budget Control Act of 2011 (BCA, P.L. 112-25). Some Members have suggested that this exemption provides agencies with additional budget cushioning and flexibility, allowing defense and nondefense funding to exceed the spending caps."
Library of Congress. Congressional Research Service
Epstein, Susan B.; Morgenstern, Emily M.
2019-03-04
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DHS Unity of Effort: Homeland Security Issues in the 116th Congress [March 8, 2019]
From the Document: "An unresolved debate dating from the origin of the Department of Homeland Security (DHS) is the extent of department management involvement in the functioning of departmental components. Some policy experts supported a strong management function, which would replace the leadership of the components, while others supported a limited management function that allowed DHS components to function freely in their areas of expertise, much as they had before. Once the department was established in 2003, it became clear that a small management cadre could not provide adequate coordination of policy or oversight of the department. The benefits of coordinated action by a large organization, including setting operational and budgetary priorities, were being lost due to the lack of a capable management cadre with the capacity to manage the department's diverse missions. As its components continued to perform their missions, the department undertook efforts to establish a unified identity and way of doing business. The term 'One DHS' was used to describe these initiatives under Tom Ridge, the first Secretary of DHS, and the efforts continued through secretaries Michael Chertoff and Janet Napolitano."
Library of Congress. Congressional Research Service
Painter, William L.
2019-03-08
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EU Finalizes FDI Screening Framework [March 5, 2019]
From the Document: "On February 14, 2019, the European Parliament approved a regulation (an EU law) that establishes a cooperation mechanism for screening foreign direct investment (FDI) in EU members that focuses on foreign investment in 'critical technologies.' This action follows those of other jurisdictions, including the United States through enactment of the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) that enhanced the role of the Committee on Foreign Investment in the United States (CFIUS), to increase scrutiny of FDI as a component of national security. The legislation was approved by the EU members on March 5, 2019; this will be followed by an 18-month implementation period."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2019-03-05
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Foreign Agents Registration Act: An Overview [Updated March 7, 2019]
For the Document: "In 1938, the Foreign Agents Registration Act (22 U.S.C. §§611-621; FARA) was enacted to require individuals doing political or advocacy work on behalf of foreign entities in the United States to register with the Department of Justice and to disclose their relationship, activities, receipts, and disbursements in support of their activities. The FARA does not prohibit any specific activities; rather it seeks to require registration and disclosure of them. According to the most recently available data, more than 400 active FARA registrants represent more than 600 foreign principals."
Library of Congress. Congressional Research Service
Straus, Jacob R.
2019-03-07
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U.S. Trade Deficit: An Overview [Updated March 8, 2019]
From the Document: "The trade deficit is the numerical difference between a country's exports and imports of goods and services. The United States has experienced annual trade deficits during most of the post-WWII [World War II] period. Some observers argue that the trade deficit costs U.S. jobs, is unsustainable, or reflects unfair trade practices by foreign competitors. Most economists contend this mischaracterizes the nature of the trade deficit and the role of trade in the economy. In general, most economists conclude the trade deficit stems largely from U.S. macroeconomic policies and an imbalance between saving and investment in the economy. Economists also conclude that trade creates both economic benefits and costs, but that the long-run net effect on the economy as a whole is positive. At the same time, some workers and firms may experience a disproportionate share of short-term adjustment costs. On March 31, 2017, President Trump issued an Executive Order directing key agencies to prepare a written report within 90 days (not yet published) on significant trade deficits with U.S. trading partners, including a focus on: unfair trade practices; and the impact of the trade deficit on U.S. production, employment, wages, and national security."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2019-03-08
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Textile and Apparel Sectors Disagree on Certain Provisions of the Proposed U.S.-Mexico-Canada (USMCA) Agreement [March 5, 2019]
From the Document: "The U.S.-Mexico-Canada Agreement (USMCA) is the proposed replacement of the North American Free Trade Agreement (NAFTA), which entered into force in 1994 and gradually eliminated tariffs and quotas on regionally made textile and apparel products. The proposed agreement would make several changes in rules affecting textiles and apparel among the three countries. U.S. textile manufacturers and the apparel and retail industries have expressed overall support for the USMCA. Still, certain provisions have been controversial, and textile producers and the apparel sector hold divergent views. If Congress considers the USMCA, its textile and apparel provisions may draw particular scrutiny."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2019-03-05
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Watersense® Program: Congressional Authorization [March 8, 2019]
From the Document: "WaterSense is a voluntary labeling program created by the U.S. Environmental Protection Agency (EPA) to encourage the development and use of water-efficient products and services. Through WaterSense, EPA develops water efficiency specifications for products, certain services, and homes; licenses third-party certification bodies; and maintains a registry of WaterSense-labeled products and certified services."
Library of Congress. Congressional Research Service
Humphreys, Elena H.
2019-03-08
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Constitutional Authority Statements and the Powers of Congress: An Overview
[Updated March 11, 2019]
From the Document: "On January 5, 2011, the House of Representatives adopted an amendment to House Rule XII to require that Members of the House state the constitutional basis for Congress's power to enact the proposed legislation when introducing a bill or joint resolution.1 (The amendment does not pertain to concurrent or simple resolutions.)The Constitutional Authority Statement (CAS) rule, found at House Rule XII, clause 7(c), was subsequently adopted in the 113th, 114th, 115th, and 116th Congresses. As the CAS rule begins its ninth year, the requirement continues to be a topic of congressional debate and inquiry, as Members of the House contemplate how to comply with the rule prior to every submission of a bill or joint resolution. This report aims to aid in understanding the CAS requirement. It begins by providing a broad overview of (1) Congress's powers under the Constitution and (2) Congress's role in interpreting this document. The report then specifically addresses House Rule XII, clause 7(c), discussing its key requirements and limits, the legal effect of a CAS, and the debate over the rule's value."
Library of Congress. Congressional Research Service
Nolan, Andrew
2019-03-11
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Corporate Expatriation, Inversions, and Mergers: Tax Issues [Updated March 12, 2019]
From the Document: "The U.S. corporate income tax is based on worldwide economic activity. If all of a corporation's economic activity is in the United States, then tax administration and compliance is relatively straightforward. Many corporations, however, operate in several jurisdictions, which creates complications for tax administration and compliance. Further, corporations may actively choose where and how to organize to reduce their U.S. and worldwide tax liabilities. Some of these strategies have been referred to as expatriation, inversions, and mergers. This report begins with a brief discussion of relevant portions of the U.S. corporate income tax system before examining how inversions were commonly structured. The report then looks at how Congress and the Department of the Treasury have reduced the benefits of inversions. The report concludes with an examination of remaining methods for inverting and policy options available to prevent or limit these inversions."
Library of Congress. Congressional Research Service
Marples, Donald J.; Gravelle, Jane
2019-03-12