Legislation aimed at boosting the flow of credit to small businesses finally cleared a procedural hurdle in the Senate today.

By a 61-37 vote the Senate voted to move forward with the Small Business Jobs Act, which would provide community banks with up to $30 billion for use in making small business loans, and expand Small Business Administration loan programs. The bill also includes a variety of targeted tax cuts for small businesses.

Today’s vote clears the way for Senate passage of the legislation, after months of falling short of the 60 votes needed to move forward. It will then have to be reconciled with a House bill that differs in several areas before being sent to President Barack Obama for his signature.

“Hopefully we can finish this very quickly,” said Senate Majority Leader Harry Reid. “It’s an important piece of legislation. It’s the most significant thing we’ve done since the stimulus bill was passed to create jobs.”

Some business groups welcomed the bill, contending it will get credit flowing again to small businesses. But for many businesses, a side issue was more important. They wanted the Senate to adopt an amendment to the Small Business Jobs Act that would repeal a paperwork burden created by health care reform.

In order to raise $17 billion to help pay for the cost of the legislation, the health care reform bill requires businesses, beginning in 2012, to file 1099 reports with the Internal Revenue Service any time they spend more than $600 a year with another business for goods and services. The theory is that third-party reporting of payments made to businesses will make the recipients less likely to hide this income from the IRS.

The 1099 requirement now applies only to payments to unincorporated service providers. Expanding this to all types of purchases will dramatically expand the number of 1099 forms that small businesses will have to file, business groups contend.

The U.S. Chamber of Commerce, the National Federation of Independent Business and other powerful business groups supported an amendment that would repeal this provision. This amendment, however, got only 46 votes today, far short of the 60 votes needed.

A Democratic alternative would exempt businesses with 25 or fewer employees from the requirement and increase the reporting threshold for other businesses to $5,000 on purchases of goods. This amendment, however, got only 56 votes, also short of the 60 votes needed.

The failure of both amendments means this paperwork burden remains in place, and will continue to be a hot-button issue for small businesses through this year’s congressional elections and into the next Congress.

Each amendment posed problems. To pay for full repeal of the 1099 reporting requirement, the amendment sponsored by Senator Mike Johanns, Republican of Nebraska, made more individuals exempt from health care reform’s mandate to purchase insurance coverage. This would reduce the amount of money the federal government would spend subsidizing coverage for these individuals. Johanns’ amendment also would delay funding for wellness and prevention programs until 2018.

Democrats contended Johanns’ amendment would gut health care reform. About 2 million people would opt out of insurance coverage if the individual mandate was eased, which would raise insurance premiums for everyone else, they contended.

“The whole idea was to get more people into the system,” said Senator Bill Nelson, Democrat of Florida.

Republicans, meanwhile, contended the Democratic 1099 reporting amendment, which was sponsored by Nelson, wouldn’t solve the paperwork problem. Some businesses would avoid hiring more than 25 workers, in order to stay exempt from the 1099 requirement, they contended. Nelson’s amendment also would make the 1099 requirement even more complex for businesses with more than 25 workers, because they would have to track purchases of goods and services separately.

Business groups also opposed Nelson’s method of paying for his 1099 reporting reforms: an $8 billion tax increase on domestic energy producers. This would mean higher energy prices for energy users, they contended.

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VA News for Thursday, September 16, 2010

1.      Shinseki Urged To Put VA Records Archives In Dayton, Ohio. The Dayton (OH) Daily News (9/16, Torry) reports, "In a meeting Wednesday on Capitol Hill," US Sen. Sherrod Brown (D-OH) "once again urged Veterans Affairs Administration Eric Shinseki to place the collection of the department's records in Dayton. Although Brown said he was encouraged by his talk with Shinseki," the lawmaker also "said the administration has not yet decided which city will receive the archives." After saying Brown's "appeal is part of a concerted effort by Ohio public officials to have the archives housed in two buildings" at the VA hospital campus in Dayton, the Daily News notes that in July, Brown, US Rep. Mike Turner (R-OH), and US Sen. George V. Voinovich (R-OH) "sent a letter to Shinseki asserting that 'Dayton would provide an exceptional home for the project,'" a point also stressed to Shinseki in a separate letter to him from Ohio Gov. Ted Strickland.

2.      Illinois VA To Host Benefits Resource Fair For Veterans. The Carmi (IL) Times (9/16, Cleveland) says the Illinois Department of Veterans Affairs (IDVA) "will host Helping Our Hometown Heroes, a benefits resource fair for veterans, from 2-6 p.m. Monday, Sept. 20, at the American Legion/VFW Hall, 311 S. Main St., Benton." The Marion VA Medical Center is one of more than "two dozen federal, state and local agencies and organizations...scheduled to attend" the event.

3.      Panel Of Vets, Experts To Focus On Contaminated Water At Camp Lejeune. In continuing coverage, the Jacksonville (NC) Daily News (9/16, Hodge) notes that Jim Watters, who has terminal kidney cancer, along with a "letter from the Department of Veterans Affairs" that "grants him 100-percent disability and lists the cause of his illness as exposure to contaminated water" from Camp Lejeune, will "appear before the US House Science and Technology Committee" on Thursday. Watters is "part of a panel of veterans and experts" who will be "discussing the decades since the Marine Corps discovered high concentrations of degreasing chemicals and dry cleaner solvents in the drinking water of several Camp Lejeune neighborhoods in 1981 and 1982." The chair of the "oversight panel of the Science and Technology Committee," is US Rep. Brad Miller (D-NC), who "told The Daily News he was hoping for answers from the Marine Corps about its actions in addressing the contamination."
     Legislation Would Require VA To Help Camp Lejeune Vets. The South Bend (IN) Tribune (9/15, Allen, 67K) said South Bend resident John Sullivan is "one of thousands of former Marines who claim their health problems are caused by contaminated well water at Camp Lejeune in North Carolina." The Janey Ensminger Act, which is "pending in Congress," would "require the US Department of Veterans Affairs to provide health care to veterans and their family members who have health problems resulting from well water at the base." The Tribune said US Rep. Joe Donnelly (D-IN) signed on this week as co-sponsor of the bill.

4.      Committee Passes Six Vets-Related Bills.  CQ (9/16, Dumain) notes that on Wednesday, the House Veterans Affairs Committee "gave voice vote approval to six bills that would expand training and benefit programs for veterans and their families." While "ranking member Steve Buyer, R-Ind., repeatedly praised the bipartisan cooperation among the committee's members," he "expressed some reservations with a bill (HR 5993)...that would require the Servicemembers' Group Life Insurance program to provide financial counseling and increased disclosure of information to the beneficiaries of deceased service members." The Marine Corps Times (9/16, Maze, 32K) says it is "unclear" whether HR 5993 or any of the other bills approved Wednesday, several of which would impact Veterans Affairs, "will become law."

5.      White House Cancels Financial Management System Upgrades At SBA, VA.  NextGov (9/16, Sternstein) reports, "White House officials announced on Wednesday they have canceled upgrades to financial management systems at the Small Business Administration and the Veterans Affairs Department as part of a strategy to save about $1 billion a year." NextGov adds, "The White House will save $113 million by terminating SBA's loan management and accounting system and $423 million by shelving VA's project, officials said."

6.      Obama Encourages Eligible Soldiers, Vets To Apply For Special Retroactive Pay. The "Checkpoint Washington" blog for the Washington Post (9/16, Ukman, 605K) notes, "Two weeks ago, The Washington Post reported that the military was struggling to convince US troops that many of them were eligible for back pay because they had remained on duty beyond their original discharge date." Now, the "Pentagon and the Department of Veterans Affairs are calling in major...support" from President Obama, who in a "new Web video" is "encouraging active duty troops and veterans who were subject to the military's 'stop loss' policy to apply for the special retroactive pay to which they are entitled."

7.      Court Transfer May Allow Vet To Avoid Prison Term. The Buffalo News (9/15, Herbeck, 174K) said Britten M. Walker, an "Iraq and Afghanistan combat vet" who had been facing a possible Federal "prison term after his arrest for allegedly making a series of bizarre...bomb" and death threats, including one against a VA counselor, now "has a chance at a much brighter future." Walker's case was "recently transferred from Buffalo's federal court...to the Erie County Veterans Treatment Court at Buffalo's City Court." After noting that if Walker "stays out of trouble and successfully completes counseling and treatment programs mandated by Veterans Court," he "won't spend any time in prison," the News added, "According to Hayes and court officials, Walker's case is the first federal criminal case in the nation ever to be transferred to a veterans court." UPI (9/15) published a similar story.

8.      Army: Bodies Found In Wrong Graves At Arlington Cemetery. In continuing coverage, ABC World News (9/15, story 5, 0:25, Sawyer, 8.2M) aired a story "about the ongoing investigation into...mismarked graves at Arlington National Cemetery." On Wednesday, the US Army "acknowledged that three people were buried in the wrong graves" at the facility.
     Exhumation Confirms Afghanistan Vet Was Buried In Correct Plot. The Washington Post (9/16, Davenport, 605K), which says Army spokesman Gary Tallman revised the number of people buried in wrong graves from three to two, reports, "The remains of Marine Corps Pvt. Heath Warner, who was 19 when he was killed in Iraq four years ago, were positively identified Wednesday after his coffin was exhumed from the grounds of Arlington National Cemetery." Warner's exhumation was demanded by his father following the release of an Army report that "found widespread record-keeping problems" at Arlington. The report led veterans organizations to call for supervision of Arlington to be transferred from the Army to the Department of Veterans Affairs, whose cemeteries have all "been converted to digitized record-keeping," unlike at Arlington, which "still relies on paper records." The WTTG-TV Washington, DC (9/15, Barnard) website also noted the Army's comments on Wednesday about bodies buried in the wrong Arlington graves.
     The emotional turmoil Heath Warner's family has experienced since learning about the problems at Arlington was the focus of coverage by USA Today (9/16, Dorrell, 1.83M). The paper does point out, however, that the Army has "replaced the...management" at Arlington. The "new team is working on correcting...discrepancies and implementing an automated record-keeping system."

9.      Medal Of Honor Experience "Bittersweet" For Afghanistan Vet. The CBS Evening News (9/15, story 7, 2:55, Couric, 6.1M) notes that on Wednesday, US Army Staff Sergeant Salvatore Giunta, the "first living person to be awarded the Medal of Honor since" the Vietnam War, "told reporters he's just an average soldier." After noting that while he was "wounded and under enemy fire in Afghanistan," Giunta "pulled a fellow soldier to safety and rescued a second who had been carried away by insurgents, though that soldier later died," CBS added, "Giunta said the award is bittersweet." CBS showed Giunta saying he is "not going to have" the opportunity to "share this moment" with some people who are "no longer with us." MSNBC Live (9/15, 2:08 p.m. ET, 1.39M) aired a similar report on Giunta's comments, which are also noted by the Washington Post (9/16, Hedgpeth, 605K).

10.    Navajo Code Talker Buried. The AP (9/15) noted that on Wednesday, Allen Dale June, one of the "original Navajo Code Talkers," was to be "buried in his hometown of Kaibeto on the Navajo Nation." June, who "died Sept. 8 at a veterans hospital" in Prescott, Arizona, "was one of the 29 original Navajo Code Talkers who confounded the Japanese during World War II by transmitting messages in their native language. With June's death, only two of the 29 still are living."

11.    Time Capsule Placed At Monument In Togus National Cemetery. On its website, WABI-TV Bangor, ME (9/15) said a time capsule put together in Augusta, Maine, by the Department of Veterans Affairs has been "placed in the 'Soldiers and Sailors Monument' in the West Cemetery of Togus National Cemetery." After noting that the monument was recently "restored and workers discovered a time capsule from 1889," WABI added, "The new time capsule contains a variety" of things, "including newspapers, VA-related items and pictures of what was found from the 1889 capsule. The 'Soldiers and Sailors Monument' is one of 49 memorials in the US that has been repaired with money from the federal stimulus plan."
     The Waterville (ME) Morning Sentinel (9/16, Crosby, 20K) notes that the new time capsule was placed at the Soldiers and Sailors Monument on Wednesday. This story was also covered in reports aired by WMTW-TV Portland, ME (9/15, 11:25 p.m. ET), WVII-TV Bangor, ME (9/15, 11:17 p.m. ET), and WPFO-TV Portland, ME (9/15, 10:42 p.m. ET).

12.    Joliet, Illinois To Get VA "Mega-Clinic." The Chicago Tribune (9/16, Hood, Owen, 488K) says Silver Cross Hospital in Joliet, Illinois, "will be converted into a multi-purpose veteran's center and rehabilitation clinic beginning in 2012." After noting that US Rep. Debbie Halvorson (D-IL) "said the new veterans 'mega-clinic' will include expanded mental health facilities, women's services, rehabilitation, an employment center among other offerings," the Tribune pointed out that Maureen Dyman, a spokeswoman for Hines Veterans Hospital, "said the announcement is exciting because...VA has been looking for a way to expand services in Joliet for some time."
     The Chicago Sun-Times (9/16, Pallasch, 256K) notes that when Halvorson announced the clinic plans on Wednesday, she stated, "Today is a huge day for veterans and their families because they have waited a long time for these services." The Sun-Times adds, "Will County has 45,000 veterans health care recipients, and veterans in the surrounding counties will also be able to avail themselves of the facility, which will probably open in February of 2012 when Silver Cross moves out to its new complex in New Lenox, Halvorson said."
     Coverage of this story also appears in the Kankakee (IL) Daily Journal (9/16, Themer) and the Joliet (IL) Herald News (9/16, Okon, 34K), which points out that VA is still "in the process of acquiring a section of Silver Cross Hospital." The AP (9/16), meanwhile, says the "vice president for Silver Cross" is "optimistic the deal will go through" with VA.

13.    New VA Clinic Taking Patients. The KXMB-TV Bismarck, ND (9/15) website notes that this week, a new Veterans Affairs clinic in Dickinson will begin serving patients. The clinic's "grand opening...will be October 12th."

14.    Colorado-Based Joint Venture To Do Pre-Construction Work On VA Hospital. The AP (9/16) says the US Department of Veterans Affairs Department "has chosen a Colorado-based joint venture to do $1.3 million in pre-construction work on a new veterans hospital planned for suburban Denver." Last week, VA "said...the work will be done by a partnership of Turner Construction Co. and Kiewit Corp."

15.    VA Involved With Stand Down Events In Oregon, California. The Umpqua (OR) Post (9/16, Newman) reports, "Free goods and services" will be "offered to vets Sept. 17-19 at Roseburg VA Healthcare," during the Southern Oregon Stand Down 2010. The Post adds, "From Friday through Sunday evening, every veteran who shows up will be treated, 'no questions asked,' to a safe place to sleep, hot meals every day, haircuts, eye exams, chiropractic exams, employment counseling, substance abuse counseling, free clothing and boots, personal-care kits and more, according to Linda Mooney, communications director" for the event.
     The Long Beach (CA) Gazette (9/15, Van Dyke) noted, "Veterans in need of a helping hand are invited to visit the Long Beach Veteran Stand Down this Saturday, organizers say." There "will be many organizations offering help and information for veterans, including both the US and California Department of Veterans Affairs."
     The Davenport, Iowa, based Quad-City Times (9/16, Allemeier, 53K), meanwhile, says, "Assistance ranging from blankets to lawyers will be made available to what is expected to be a growing number of homeless veterans who will take advantage of this week's Stand Down 2010," to be held on Thursday and Friday in Rock Island, Illinois. According to the Times, VA "estimates that 107,000 veterans are homeless on any given night in the United States."

16.    Former POWs, MIAs To Be Honored By VA Hospitals In Arizona, Pennsylvania. The Tucson-based Arizona Daily Star (9/16, 116K) reports, "A 'missing man' formation of military jets will swoop over the city Friday to honor prisoners of war and troops missing in action." That "flyover is part of events being held by Tucson's veterans hospital in honor of National POW/MIA Recognition Day."
     The Harrisburg (PA) Patriot-News (9/15, Miller) noted that on Friday, a "ceremony recognizing the sacrifices made by ex-prisoners of war and those still missing in action will be held" at the Lebanon Veterans Affairs Medical Center. The program, "held annually on National POW/MIA Recognition Day, will be in the building 24 gym at 11 a.m."

17.    Lutz VAMC To Host Online Social Media Ethics Conference. The Saginaw (MI) News (9/15, Knake, 32K) noted that the Lutz Veterans Affairs Medical Center is set to host an "ethics conference focused on challenges with online social media. The Try-City Health Care Ethics collaboration on Professional Boundaries and Social Networking" will be held "from 6 p.m. to 9 p.m. Thursday and from 8 a.m. to 10 a.m. Friday at Ott Auditorium at Saginaw Valley State University, 7400 Bay in Kochville Township."
     Hospital Will Also Receive Visit From Pro Hockey Players. According to the Saginaw (MI) News (9/15, Joyce, 32K), Saginaw County veterans "will receive a special visit from some professional hockey heroes this week." On Thursday, "Detroit Red Wings forwards Todd Bertuzzi, Darren Helm, goaltender Jimmy Howard and new Red Wings center Mike Modano will speak with military veterans at the Aleda E. Lutz VA Medical Center from 11:30 a.m. to 1 p.m." at "1500 Weiss in Saginaw. The event is closed to the public."

18.    VA Employee A Contestant On "The Apprentice." The San Jose (CA) Mercury News (9/15, Barney) reported, "Donald Trump returns this week with a recession-themed edition of 'The Apprentice,'" featuring 24-year-old Poppy Carlig, a resident of Richmond, California. Since "shooting 'The Apprentice,'" Carlig has "taken a temporary job" at the Veterans Affairs hospital "in Palo Alto, where she conducts muscle stem-cell research."

19.    City To Host Regional Vets' Events. According to the Charleston (SC) Post And Courier (9/15, MacDougall), veterans "and their families from all over the Southeast are expected to celebrate Veterans Day in North Charleston this year. The US Department of Veterans Affairs has selected the city as a regional host site for this year's Veterans Day observances, said Cindy Dambaugh" of Charleston's Parks and Recreation Department.

20.    A Tail Of Freedom. In a story noting that 62-year-old blind veteran Jeff Redford recently received a guide dog, the Tampa (FL) Tribune (9/15, Kindle) pointed out that doctors "at the James A. Haley Veterans' Hospital in Tampa said his condition was caused by Agent Orange, a defoliant sprayed" during the Vietnam war. The Tribune quotes Redford, who said the "government doesn't recognize it, so I'm not entitled to a disability."

21.    Great Lakes National Cemetery To Hold Special Memorial. The WJRT-TV Flint, MI (9/15, Brown) website said that on Saturday, prisoners of war (POWs) "like Robert Smith, who was captured and shot down during World War II," and the missing in action will be honored in a "first of its kind ceremony being held at the Great Lakes National Cemetery."

22.    Regulator Says Banks Slow To Buy Back Bad Loans. According to the AP (9/15, Zibel), the Federal Housing Finance Agency is "criticizing banks for failing to take back bad mortgages sold to giant mortgage buyers Fannie Mae and Freddie Mac," who, along with the Federal Housing Administration and the Department of Veterans Affairs have backed approximately 90 percent of loans made in the first half of the year, according to a trade publication called Inside Mortgage Finance.

23.    Veterans Program: Fired Man Wants U Of I Job Back. The AP (9/16, Mercer).

24.    War Widow Receives Soldier's Medals.  McClatchy (9/16, Doyle).

25.    Headline: In Their Honor: 80 WWII Vets Take West Georgia

Honor Flight. The Columbus (GA) Ledger-Enquirer (9/16, Kendrick-Holmes, Riquelmy, 37K).

26.    Marion Man Wins Medal Of Honor. The Carmi (IL) Times (9/16, Cleveland).

27.    Civil War Vet To Be Interred At Veterans Cemetery. The Moberly (MO) Monitor-Index (9/16, Herrold, 5K).