Congressional session nears end with movement on security bills

Friday, November 15th 2002, 12:00 am

By: News On 6

WASHINGTON (AP) _ Struggling to end a frustrating year with some accomplishments, Congress moved on long-delayed terrorism insurance and passed port security legislation. But a measure to tighten bankruptcy law, in the works for years, stumbled over an abortion-related dispute.

The House, determined to make this the final day of its 107th Congress, worked well into the morning Friday, also approving a bill authorizing intelligence agency spending that includes creation of an independent commission to investigate the failure to anticipate the Sept. 11 attacks.

A compromise on the makeup of the commission was reached Thursday between White House officials and the two main Senate advocates of the commission, Sens. John McCain, R-Ariz., and Joseph Lieberman, D-Conn.

The Senate returns Friday to act on terrorism insurance and President Bush's top legislative priority, establishing a new Homeland Security Department. The House approved the legislation on Wednesday after the White House agreed to some concessions to Democrats concerned over the labor rights of the 170,000 employees of the new agency. The Senate is expected to pass the measure before it adjourns next week.

Left unresolved as the lame duck session of the 107th Congress nears an end are such issues as prescription drug benefits for the elderly, retirement fund protections and the rights of patients in managed care programs.

Congress also completed only two _ both dealing with defense _ of the 13 spending bills it must pass to fund federal programs for fiscal year 2003, which began on Oct. 1. To avoid a government shutdown, the House voted to keep spending at fiscal year 2002 levels through Jan. 11, after the beginning of the 108th Congress.

With Republicans recapturing control of the Senate in the midterm elections, Bush is expected to have a Congress more amenable to his spending priorities when lawmakers return in January.

House Democrats, revamping their leadership for the next Congress, on Thursday chose Rep. Nancy Pelosi, D-Calif., as their party leader, succeeding Dick Gephardt, who stepped down from the post after eight years. Pelosi is the first woman ever to head a political party in Congress.

In its biggest achievement of the day, the House passed a measure under which the government would cover up to $90 billion annually in insurance claims from terrorist attacks.

Bush has pushed for the legislation since shortly after the Sept. 11 attacks, saying that higher insurance premiums or the reluctance of insurance companies to provide terrorist protections could seriously hurt the economy by discouraging new construction projects.

But the bill bogged down for a year in a dispute erupting over Republican attempts to put limits on punitive damage awards, which many Republicans consider a benefit to trial lawyers who generally support Democrats.

The breakthrough came this week when Bush persuaded House GOP leaders to accept a bill with no limits on punitive damages.

The bankruptcy bill, pushed for years by banks and credit card companies, appeared dead despite a post-midnight move to revive the measure hours after it had faltered. Republican conservatives rebelled against the bill on the first vote, claiming it could be used to curtail abortion protests by banning protesters from using bankruptcy to avoid paying court fines for blocking clinics if they knowingly violated the law.

GOP leaders, including retiring Majority Leader Dick Armey, R-Texas, begged the conservatives to get behind the legislation and fight abortion battles at another time. They later brought the bill back to the floor without the abortion language and it passed easily, 244-116. But Democrats said it was a charade because the Senate would never accept the bill without the abortion provisions.

In other action Thursday and Friday morning:

_The House and Senate passed and sent to the president legislation requiring the nation's 361 ports to develop security plans. It also gives the Coast Guard broad new authority to board ships to prevent hijackings and to bar vessels sailing from foreign ports that don't meet security standards.

_The House waived automatic cuts in Medicare and other entitlement programs legally required if tax cuts or entitlement spending increases result in growth of the federal deficit.

_The House passed legislation that extends the 1996 welfare law through March 31 and fixes problems with a Medicare payment formula that decides how much doctors get paid. It also extends unemployment benefits for victims of the recession. The Senate approved a different version providing a longer unemployment benefit extension and it was unclear if a compromise could be reached.

_The Senate confirmed 17 district court federal judges and Judge John Rogers of Kentucky for a seat on the 6th Circuit U.S. Court of Appeals.

_The Senate passed a bill authorizing $2.3 billion in foreign aid to Afghanistan over the next four years plus another $1 billion to expand peacekeeping forces there. House action is still needed.