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CNN Live At Daybreak

Shooting Spree in Ohio Nightclub; Potential Impact of Passage of Intelligence Reform Bill

Aired December 09, 2004 - 05:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Straight ahead, Damageplan was the band and deadly damage is what happened when a gunman opens fire inside of a nightclub in Ohio.
Plus, Congress signed off on it. Now it's the president's turn. The intelligence reform bill -- a smart answer or a senseless law?

And President Bush as one of the wise men and a former Spice Girl as the Virgin Mary? This exhibit is causing quite a scene. Do you think this is inappropriate? A lot of people do.

It is Thursday, December 9.

You are watching DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello.

Thank you for joining us.

Now in the news, five people are dead following a shooting at a Columbus, Ohio nightclub at a heavy metal concert. Witnesses say a man jumped onstage and shot at the band before shooting into the crowd.

The search continues this morning for six people lost in a Coast Guard rescue helicopter crash off the coast of Alaska. Four people were plucked from the water by another chopper. The six still missing are crew members from a freighter that ran aground in that area.

Closing arguments scheduled for today in the penalty phase of the Scott Peterson trial. Peterson faces either life in prison without parole or the death penalty for the murders of his wife and unborn child.

In the Philippines, survivors are still being found 10 days after storm spawned mudslides crushed several buildings east of Manila. More than 800 people were killed during those severe storms.

To the forecast center now and Rob -- good morning.

ROB MARCIANO, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Let's get right back to that Ohio nightclub shooting in which five people, including the shooter, are dead.

We get the story from Patrick Bell of CNN affiliate WBNS in Columbus.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: I'm numb, man. I don't know. I come to -- I mean these guys have been my heroes, heroes for years, you know? And so I don't know. I'm just, I still can't believe it happened.

PATRICK BELL, WBNS CORRESPONDENT (voice-over): It all began just after 10:00 at the Alrosa Villa, a well known Columbus nightclub. A man rushes the stage and begins firing a semi-automatic handgun. He shoots at least one band member. Then, according to witnesses, fires on the crowd.

UNIDENTIFIED MALE: Well, he was just shooting, just shooting. BELL (on camera): Into the crowd?

UNIDENTIFIED MALE: He was kind of staying behind some speakers... BELL: Yes?

UNIDENTIFIED MALE: ... a big stack of speakers and he was just like bang, just shooting. BELL: In the crowd?

UNIDENTIFIED MALE: Oh, yes, yes.

UNIDENTIFIED MALE: He put bullets into the clip and then put the clip back in the gun. Yes. It was amazing. I couldn't believe it. Everybody was scared because everybody who tried to help got shot. BELL (voice-over): Moments after the band's guitarist was shot several times, one fan in the front row, despite the obvious danger, jumped onstage, tried his best to save a life.

UNIDENTIFIED MALE: That's just blood from the guy I was giving CPR to. BELL (on camera): "Dimebag?"

UNIDENTIFIED MALE: Right. I tried to stop and save his life, do anything that anybody else would do. There was a little gurgle in his voice when we were, and his box, when we were giving him CPR. BELL: Where was he hit, do you know?

UNIDENTIFIED MALE: I couldn't see. I couldn't see where he was hit.

UNIDENTIFIED MALE: The guy that I was helping, he was shot like two times here, once in the armpit. That was three that I could see, because I ripped his shirt open, you know? But that -- I know he was shot at least three times. BELL (voice-over): Witnesses say just seconds later, a police officer arrived and with one shotgun blast put an end to the rampage.

Patrick Bell, 10-TV, Eyewitness News.

(END VIDEO TAPE) COSTELLO: And one witness says that security didn't search people entering the nightclub and that there were no metal detectors in use.

We're going to have much more on this story in the minutes to come on DAYBREAK.

This incident in Ohio did remind us of another nightclub disaster. It was one year ago today that indictments were handed down in the Station Nightclub fire in Rhode Island. Remember that? The club's two owners were indicted on 200 charges of involuntary manslaughter. Ten people died in this fire. The manager of the band Great White, which was playing at the club, was also charged. So far, no one has gone to trial.

The Senate has overwhelmingly passed the intelligence reform bill. The House passed it on Tuesday. Now it heads to the president's desk to become law. But are the reforms destined to fail?

CNN national security correspondent David Ensor takes a look for you.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: The conference report is adopted.

DAVID ENSOR, CNN CORRESPONDENT (voice-over): The intelligence reform bill promises major change, creating what could be a powerful new director of national intelligence. But experts say it raises more questions than it answers.

DAVID KAY, FORMER CIA OFFICIAL: The real issue is what is his relationship with all the 15 intelligence agencies? Who actually works for him? Where is the national intelligence council going to be? Who's going to brief the president every day? And what's the basis for that?

These are things that actually have to be worked out.

ENSOR: As it stands now, one man, Porter Goss, wears two hats. He is the CIA director and he's also the director of Central Intelligence, nominally in charge of all 14 other U.S. intelligence agencies, as well as the national counter-terrorism center, which began operations Monday.

Under the bill, a director of national intelligence replaces the DCI and is put over the top of a separate CIA director, the counter- terrorism center and the 14 other intelligence agencies. But the most important change has to do with these two key agencies -- the National Security Agency, the big ear of the U.S. government, the eavesdroppers; and the National Geospatial Intelligence Agency, the big I of the U.S. government, that analyzes imagery from spy satellites.

Right now, though the intelligence director has nominal authority, the Pentagon largely controls the budgets and personnel of these two crucial spy agencies. Under the bill, a new intelligence director gains considerably more control, potentially shifting the balance of power in Washington.

FLYNT LEVERETT, SABAN CENTER: It's not the culmination, it's the beginning, and it gives a hopefully entrepreneurial first director of national intelligence some tools that he might use to try and achieve real reform.

ENSOR: In the bill, Congress failed to reform itself, to address the overlapping web of more than 20 committees overseeing parts of U.S. intelligence.

KAY: There's nothing in this bill that addresses the fiefdoms on the Hill, and that is going to be an issue that Congress has got to return to.

ENSOR (on camera): You think they punted on it?

KAY: I think they avoid -- punt?!? At least you have contact when you punt. I think they've ran away from it.

ENSOR: Senior U.S. intelligence officials say the key will be who the president picks for intelligence chief. He or she must have credibility, communications skills, a lot of discretion, a thick skin and the absolute trust of the man in the White House, a pretty tall order.

David Ensor, CNN, Washington.

(END VIDEO TAPE)

COSTELLO: The Senate passed that bill 89-2. The two no votes came from Republican James Inhofe of Oklahoma and Democrat Robert Byrd of West Virginia. Members from both parties say they're happy, though, to have the issue finally resolved.

(BEGIN VIDEO CLIP)

REP. PETE HOEKSTRA (R), MICHIGAN: We recognize that this is a complex puzzle that we are putting together to fight and to win the war on terrorism. This is one more important piece in putting that entire puzzle together, and I think we are delighted that this piece is com -- that this piece is now ready to go to the president.

(END VIDEO CLIP)

COSTELLO: Oh, I guess we won't hear from Joe Lieberman.

One of the provisions of the new intelligence bill allows for uniform national stands for drivers licenses. But the bill doesn't tackle individual state laws governing licenses for illegal immigrants.

CNN's Maria Hinojosa spoke with some people who have a vested interest in the outcome of that debate.

(BEGIN VIDEO TAPE)

MARIA HINOJOSA, CNN CORRESPONDENT (voice-over): Like a lot of mothers, Fidirina Peraz (ph) drives her daughter to school to keep her safe.

FIDIRINA PERAZ: I bring my daughter every day because I hear in the news a lot of drugs.

HINOJOSA: But 14-year-old Nancy, who wants to be a doctor, has a new worry. Her mother is an illegal immigrant and New York is about to take away the driver's license she got using a fake Social Security number.

NANCY PERAZ: It's just hard because the thought of having to leave here if they lose their job or anything, I don't want to.

HINOJOSA: Nancy and her sisters were born here, U.S. citizens. They're afraid that if their mother gets stopped driving without a license, their parents will be deported to Mexico, which they left 20 years ago.

MARIA PERAZ, DAUGHTER OF ILLEGAL IMMIGRATION: I know that if they get deported to Mexico, we're never going to come back, because they don't have their papers yet and we can come back, of course, because we were born here and we're -- but I don't want to leave my parents to that, because that's going to make me like so sad.

HINOJOSA: Fidirina says she uses her license to chaffer disabled people and to get to her job as a domestic, not to commit acts of terrorism like the 9/11 hijackers. They legally entered the United States and then obtained 63 drivers licenses around the country.

"We are decent people," Fidirina says, "tranquil. We would never think of wanting to hurt anyone."

But Brian Decell, who lost his son-in-law on September 11, says without immigration reform, terrorists can use a driver's license to board planes, rent cars and open bank accounts.

BRIAN DECELL, SON-IN-LAW DIED ON 9/11: Somebody who is undocumented, it's a person that you don't know who they are gets a driver's license, that gives them the keys to the city. That was the terrorists' favorite tool.

HINOJOSA: In New York State alone, an estimated half million people have legal drivers licenses but are suspected of having entered this country illegally. This taxi driver is one of them.

UNIDENTIFIED FEMALE: I'm driving very stressed. I can't concentrate any more because I'm very worried.

HINOJOSA: They drive trucks and taxis, care for children and clean homes. I asked some of them how the U.S. can protect its borders if it provides them with a valid I.D. even when they entered this country illegally. "This country definitely has to control its borders because it's dangerous to not know who's coming in," this man told me. "But by giving us an I.D. or license, then they would have a lot more control over who we are and what we do."

ROSALIND KENNEDY LEWIS, ILLEGAL IMMIGRATION EMPLOYER: How are you?

HINOJOSA: Rosalind Kennedy Lewis employs Fidirina to care for her family home. She says she can't afford a legal worker.

KENNEDY LEWIS: I understand that they're illegal, but they should take into consideration how they've lived their life, what they've accomplished with their life and what their children are like. And it should be done on a case by case basis. Those people that are motivated do belong here. That's what America is about.

HINOJOSA: Losing their licenses means these workers will fade completely into the underground economy. "We're not terrorists," this man said to me. "Many people say we'll use these licenses to do harm and we aren't going to use them to do that. We're using them to work." Then he said, "In the same way a lot of people from here died in those towers on September 11, many immigrants died in those towers, as well."

Maria Hinojosa, CNN, Newburgh, New York.

(END VIDEO TAPE)

COSTELLO: In other news across America this morning, investigators in Maryland believe more than one person is responsible for the fires set in a housing development on Monday morning. A total of 19 fires were deliberately set using incendiary devices. Police also increased their reward to $82,000 for any information leading to a conviction in this case.

A South African woman who snuck into the United States from Mexico will be deported. The arrest of the 48-year-old heightened fears that terrorists could easily slip across the U.S.-Mexico border. She was stopped at a Texas airport while trying to board a flight to New York. Security agents noticed she had several pages ripped out of her passport.

Mike Tyson is in trouble with the law again. He has to answer a misdemeanor criminal damage charge. The boxer was arrested for allegedly jumping on the hood of a car last month outside of a Scottsdale, Arizona nightclub. He was released, but must appear in court in the next 10 days. Tyson had been in training for a return to the ring in March.

Basketball star Carmelo Anthony appears in an underground DVD aimed at a reputed drug kingpin who turned in state's evidence. The DVD is called "Stop Snitching" and is being sold on the streets in Baltimore. Anthony, who is from Baltimore, appears in one scene.

Can Martha trump the Donald's ratings? We'll see just as soon as she gets out of prison. The new reality at 42 minutes past.

The winter months, a Norman Rockwell holiday -- why, then, is this time of year so hard on your heart? It's the health hazard you may not realize. That's at 50 minutes past.

And Madame Toussaint's displays -- a little holiday spirit, but don't look for peace on Earth. At 19 after, we'll show you what all the fuss is about.

But first, here's a look at what else is making news this Thursday morning.

(BEGIN VIDEO TAPE)

ELIZABETH FENNER, ASSISTANT MANAGING EDITOR, "FORTUNE": "Fortune" picked Ryobi's laser level because it is the first laser level you can measure for level as opposed to using a pencil or a chalk line. It has a suction cup that sticks it to the wall so that you don't have to have two people working together. This laser level is definitely for the average consumer.

The Veneerware plates are an example of a basic form, the plate. But it's done in a 100 percent organic Bambu. Bambu is a renewable resource. If you put it in a landfill, it'll biodegrade very quickly.

So it's just nice to see designers using sustainable materials in a new way.

"Fortune" loved these Tupperware flat out containers. Tupperware takes up a lot of space in your cabinet, but these are like accordions. You can collapse the sides of it down so that you can fit everything perfectly into that space and you don't have wasted space in your refrigerator. It's really a great innovation. It's sort of like why didn't we think of that?

(END VIDEO TAPE)

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

COSTELLO: Your news, money, weather and sports.

It's 5:18 Eastern.

Here's what's all new this morning.

Five people are dead following a shooting at a Columbus, Ohio nightclub. Witnesses say the incident started when a gunman jumped onstage during a rock concert and shot at members of the band Damageplan.

Scott Peterson may learn his fate as early as today. The jury is expected to begin deliberations after closing arguments today in the penalty phase of the trial. Peterson faces either life in prison without parole or the death penalty.

In money news, United Airlines Flight 869 takes off this afternoon to become the first U.S. commercial flight to Vietnam since the end of the war. The daily flight is part of United's plan to expand its service throughout Asia.

In culture, best-selling rap superstar Jay-Z is moving up the corporate ladder. He's been tapped to run Vivendi Universal's Def Jam record label. Jay-Z will have control over the hip-hop label's stable of artists and the marketing of new albums.

In sports, Lance Armstrong is waiting to decide whether to try for number seven. The six time Tour de France champion says he won't announce his plans for this year's Tour until at least May. The race begins in July -- Rob.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Nativity scenes are everywhere this time of year. But here is one that has sparked some harsh criticism. It's the Nativity scene at Madam Toussaint's Wax Museum in London. Get this. It features soccer star David Beckham and his wife Victoria, a former Spice Girl, as Joseph and Mary. President Bush, British Prime Minister Tony Blair and Prince Phillip are the three wise men.

The Vatican is not happy. It's quoted as saying that: "If this isn't blasphemous, then it's in very poor taste." But the Museum is not budging. A spokeswoman says the celebrity Nativity won't be coming down before Christmas.

Oh, my. That brings us to our E-mail Question of the Day. It is, is this celebrity Nativity scene disrespectful or is it all in good fun? Should the Museum take the display down, for goodness sake? Send us your comments to daybreak@cnn.com. That's daybreak@cnn.com.

Just ahead on DAYBREAK, the reality is prison cannot stop Martha Stewart from making a deal. But will you watch?

You are watching DAYBREAK for a Thursday.

(COMMERCIAL BREAK)

COSTELLO: Time for our DAYBREAK "Eye-Openers."

Salvation Army Santas in Phoenix, Arizona are taking plastic this year. Bell ringers are carrying card readers that will allow willing donors to use debit or credit cards to give to charity. A similar system was in place in Pittsburgh a few years ago and it was a raging success.

Pack your moon boots, because you could be heading for outer space. The Senate passed a bill that lets the FAA issue permits to private companies that want to take passengers into space. The private spacecraft, Space Ship One, successfully made it into space three times earlier this year. The bill will also allow the government to regulate the commercial space industry.

One of a string of SpongeBob thefts has been solved. Several states have reported that inflatable giant SpongeBobs, like the one you saw on top of that Burger King, have been stolen from the restaurant rooftops. But in Norwich, Connecticut, the rubber SpongeBob actually melted into the building's heating ducts. And the cleanup crew never told anyone that they ended up throwing it in the trash. So one mystery solved.

Oh, my. Time now to look beyond the sound bite. And this morning we've got Comedy Central star Jon Stewart tackling the gay marriage issue. He was on CNN's "Larry King Live" last night.

Here's what he had to say.

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

JOHN STEWART, COMEDY CENTRAL'S "THE DAILY SHOW": If the problems in morality in this country are literally down to if dudes marry, then we've won. Isn't it? I mean dudes marrying isn't even in the top Ten Commandments.

LARRY KING, HOST: It isn't, that's right.

STEWART: No. Adultery is a top tenner. But that doesn't seem to be, you know, an issue. It's very, it's interesting that these kinds of divergence, you know, the culture wars, I think, are -- there's something real there, but we don't ever actually deal with that. We deal with the sort of -- whether or not the Ten Commandments can be posted in a school. I mean if you think the Ten Commandments being posted in a school is going to change behavior of children, then you think "employees must wash hands" is keeping the piss out of your Happy Meals. It's not

(END VIDEO CLIP)

COSTELLO: Stewart also has a thing or two to say about John Kerry and his failed bid for the presidency.

Here's that for you.

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

STEWART: There is a strange thing in our electoral process where candidates, when they run for office, decide they have to be regular dudes, they have to be us. There's this sort of general I'm just like you. I'm a regular Joe. Really? Do you watch 10 hours of TV a day? Because I would think you'd want to work. I don't understand why they don't come out and say I'm better than you, that's why I should be president. Because if you're just like me, then why am I voting for you? I should be president.

KING: Excellent point.

STEWART: But you know what I'm saying? They all run to this it's this weird sense of I'm going to put on that red and black checked jacket and I'm going to go down to a factory and have a cup of coffee and a donut with a dude and show him that I'm an idiot. You know, why don't -- I don't understand. And I think that was -- there was an attempt on his part to dumb himself down in a way that was disingenuous, it seemed.

But other than that, he did get five million more votes than Al Gore got. So I think he just got beat at a certain level. George Bush just beat him.

(END VIDEO CLIP)

COSTELLO: Interesting.

Here's what's all new in the next half hour of DAYBREAK.

Which car will get you the most money when it's time to trade it in? We're going to tell you.

And a little later, a report on Iraq that may surprise you. Combat fatality rates are at their lowest levels ever. We'll tell you why.

From New York, this is DAYBREAK for a Thursday.

(COMMERCIAL BREAK)

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Aired December 9, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Straight ahead, Damageplan was the band and deadly damage is what happened when a gunman opens fire inside of a nightclub in Ohio.
Plus, Congress signed off on it. Now it's the president's turn. The intelligence reform bill -- a smart answer or a senseless law?

And President Bush as one of the wise men and a former Spice Girl as the Virgin Mary? This exhibit is causing quite a scene. Do you think this is inappropriate? A lot of people do.

It is Thursday, December 9.

You are watching DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello.

Thank you for joining us.

Now in the news, five people are dead following a shooting at a Columbus, Ohio nightclub at a heavy metal concert. Witnesses say a man jumped onstage and shot at the band before shooting into the crowd.

The search continues this morning for six people lost in a Coast Guard rescue helicopter crash off the coast of Alaska. Four people were plucked from the water by another chopper. The six still missing are crew members from a freighter that ran aground in that area.

Closing arguments scheduled for today in the penalty phase of the Scott Peterson trial. Peterson faces either life in prison without parole or the death penalty for the murders of his wife and unborn child.

In the Philippines, survivors are still being found 10 days after storm spawned mudslides crushed several buildings east of Manila. More than 800 people were killed during those severe storms.

To the forecast center now and Rob -- good morning.

ROB MARCIANO, CNN METEOROLOGIST: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Let's get right back to that Ohio nightclub shooting in which five people, including the shooter, are dead.

We get the story from Patrick Bell of CNN affiliate WBNS in Columbus.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: I'm numb, man. I don't know. I come to -- I mean these guys have been my heroes, heroes for years, you know? And so I don't know. I'm just, I still can't believe it happened.

PATRICK BELL, WBNS CORRESPONDENT (voice-over): It all began just after 10:00 at the Alrosa Villa, a well known Columbus nightclub. A man rushes the stage and begins firing a semi-automatic handgun. He shoots at least one band member. Then, according to witnesses, fires on the crowd.

UNIDENTIFIED MALE: Well, he was just shooting, just shooting. BELL (on camera): Into the crowd?

UNIDENTIFIED MALE: He was kind of staying behind some speakers... BELL: Yes?

UNIDENTIFIED MALE: ... a big stack of speakers and he was just like bang, just shooting. BELL: In the crowd?

UNIDENTIFIED MALE: Oh, yes, yes.

UNIDENTIFIED MALE: He put bullets into the clip and then put the clip back in the gun. Yes. It was amazing. I couldn't believe it. Everybody was scared because everybody who tried to help got shot. BELL (voice-over): Moments after the band's guitarist was shot several times, one fan in the front row, despite the obvious danger, jumped onstage, tried his best to save a life.

UNIDENTIFIED MALE: That's just blood from the guy I was giving CPR to. BELL (on camera): "Dimebag?"

UNIDENTIFIED MALE: Right. I tried to stop and save his life, do anything that anybody else would do. There was a little gurgle in his voice when we were, and his box, when we were giving him CPR. BELL: Where was he hit, do you know?

UNIDENTIFIED MALE: I couldn't see. I couldn't see where he was hit.

UNIDENTIFIED MALE: The guy that I was helping, he was shot like two times here, once in the armpit. That was three that I could see, because I ripped his shirt open, you know? But that -- I know he was shot at least three times. BELL (voice-over): Witnesses say just seconds later, a police officer arrived and with one shotgun blast put an end to the rampage.

Patrick Bell, 10-TV, Eyewitness News.

(END VIDEO TAPE) COSTELLO: And one witness says that security didn't search people entering the nightclub and that there were no metal detectors in use.

We're going to have much more on this story in the minutes to come on DAYBREAK.

This incident in Ohio did remind us of another nightclub disaster. It was one year ago today that indictments were handed down in the Station Nightclub fire in Rhode Island. Remember that? The club's two owners were indicted on 200 charges of involuntary manslaughter. Ten people died in this fire. The manager of the band Great White, which was playing at the club, was also charged. So far, no one has gone to trial.

The Senate has overwhelmingly passed the intelligence reform bill. The House passed it on Tuesday. Now it heads to the president's desk to become law. But are the reforms destined to fail?

CNN national security correspondent David Ensor takes a look for you.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: The conference report is adopted.

DAVID ENSOR, CNN CORRESPONDENT (voice-over): The intelligence reform bill promises major change, creating what could be a powerful new director of national intelligence. But experts say it raises more questions than it answers.

DAVID KAY, FORMER CIA OFFICIAL: The real issue is what is his relationship with all the 15 intelligence agencies? Who actually works for him? Where is the national intelligence council going to be? Who's going to brief the president every day? And what's the basis for that?

These are things that actually have to be worked out.

ENSOR: As it stands now, one man, Porter Goss, wears two hats. He is the CIA director and he's also the director of Central Intelligence, nominally in charge of all 14 other U.S. intelligence agencies, as well as the national counter-terrorism center, which began operations Monday.

Under the bill, a director of national intelligence replaces the DCI and is put over the top of a separate CIA director, the counter- terrorism center and the 14 other intelligence agencies. But the most important change has to do with these two key agencies -- the National Security Agency, the big ear of the U.S. government, the eavesdroppers; and the National Geospatial Intelligence Agency, the big I of the U.S. government, that analyzes imagery from spy satellites.

Right now, though the intelligence director has nominal authority, the Pentagon largely controls the budgets and personnel of these two crucial spy agencies. Under the bill, a new intelligence director gains considerably more control, potentially shifting the balance of power in Washington.

FLYNT LEVERETT, SABAN CENTER: It's not the culmination, it's the beginning, and it gives a hopefully entrepreneurial first director of national intelligence some tools that he might use to try and achieve real reform.

ENSOR: In the bill, Congress failed to reform itself, to address the overlapping web of more than 20 committees overseeing parts of U.S. intelligence.

KAY: There's nothing in this bill that addresses the fiefdoms on the Hill, and that is going to be an issue that Congress has got to return to.

ENSOR (on camera): You think they punted on it?

KAY: I think they avoid -- punt?!? At least you have contact when you punt. I think they've ran away from it.

ENSOR: Senior U.S. intelligence officials say the key will be who the president picks for intelligence chief. He or she must have credibility, communications skills, a lot of discretion, a thick skin and the absolute trust of the man in the White House, a pretty tall order.

David Ensor, CNN, Washington.

(END VIDEO TAPE)

COSTELLO: The Senate passed that bill 89-2. The two no votes came from Republican James Inhofe of Oklahoma and Democrat Robert Byrd of West Virginia. Members from both parties say they're happy, though, to have the issue finally resolved.

(BEGIN VIDEO CLIP)

REP. PETE HOEKSTRA (R), MICHIGAN: We recognize that this is a complex puzzle that we are putting together to fight and to win the war on terrorism. This is one more important piece in putting that entire puzzle together, and I think we are delighted that this piece is com -- that this piece is now ready to go to the president.

(END VIDEO CLIP)

COSTELLO: Oh, I guess we won't hear from Joe Lieberman.

One of the provisions of the new intelligence bill allows for uniform national stands for drivers licenses. But the bill doesn't tackle individual state laws governing licenses for illegal immigrants.

CNN's Maria Hinojosa spoke with some people who have a vested interest in the outcome of that debate.

(BEGIN VIDEO TAPE)

MARIA HINOJOSA, CNN CORRESPONDENT (voice-over): Like a lot of mothers, Fidirina Peraz (ph) drives her daughter to school to keep her safe.

FIDIRINA PERAZ: I bring my daughter every day because I hear in the news a lot of drugs.

HINOJOSA: But 14-year-old Nancy, who wants to be a doctor, has a new worry. Her mother is an illegal immigrant and New York is about to take away the driver's license she got using a fake Social Security number.

NANCY PERAZ: It's just hard because the thought of having to leave here if they lose their job or anything, I don't want to.

HINOJOSA: Nancy and her sisters were born here, U.S. citizens. They're afraid that if their mother gets stopped driving without a license, their parents will be deported to Mexico, which they left 20 years ago.

MARIA PERAZ, DAUGHTER OF ILLEGAL IMMIGRATION: I know that if they get deported to Mexico, we're never going to come back, because they don't have their papers yet and we can come back, of course, because we were born here and we're -- but I don't want to leave my parents to that, because that's going to make me like so sad.

HINOJOSA: Fidirina says she uses her license to chaffer disabled people and to get to her job as a domestic, not to commit acts of terrorism like the 9/11 hijackers. They legally entered the United States and then obtained 63 drivers licenses around the country.

"We are decent people," Fidirina says, "tranquil. We would never think of wanting to hurt anyone."

But Brian Decell, who lost his son-in-law on September 11, says without immigration reform, terrorists can use a driver's license to board planes, rent cars and open bank accounts.

BRIAN DECELL, SON-IN-LAW DIED ON 9/11: Somebody who is undocumented, it's a person that you don't know who they are gets a driver's license, that gives them the keys to the city. That was the terrorists' favorite tool.

HINOJOSA: In New York State alone, an estimated half million people have legal drivers licenses but are suspected of having entered this country illegally. This taxi driver is one of them.

UNIDENTIFIED FEMALE: I'm driving very stressed. I can't concentrate any more because I'm very worried.

HINOJOSA: They drive trucks and taxis, care for children and clean homes. I asked some of them how the U.S. can protect its borders if it provides them with a valid I.D. even when they entered this country illegally. "This country definitely has to control its borders because it's dangerous to not know who's coming in," this man told me. "But by giving us an I.D. or license, then they would have a lot more control over who we are and what we do."

ROSALIND KENNEDY LEWIS, ILLEGAL IMMIGRATION EMPLOYER: How are you?

HINOJOSA: Rosalind Kennedy Lewis employs Fidirina to care for her family home. She says she can't afford a legal worker.

KENNEDY LEWIS: I understand that they're illegal, but they should take into consideration how they've lived their life, what they've accomplished with their life and what their children are like. And it should be done on a case by case basis. Those people that are motivated do belong here. That's what America is about.

HINOJOSA: Losing their licenses means these workers will fade completely into the underground economy. "We're not terrorists," this man said to me. "Many people say we'll use these licenses to do harm and we aren't going to use them to do that. We're using them to work." Then he said, "In the same way a lot of people from here died in those towers on September 11, many immigrants died in those towers, as well."

Maria Hinojosa, CNN, Newburgh, New York.

(END VIDEO TAPE)

COSTELLO: In other news across America this morning, investigators in Maryland believe more than one person is responsible for the fires set in a housing development on Monday morning. A total of 19 fires were deliberately set using incendiary devices. Police also increased their reward to $82,000 for any information leading to a conviction in this case.

A South African woman who snuck into the United States from Mexico will be deported. The arrest of the 48-year-old heightened fears that terrorists could easily slip across the U.S.-Mexico border. She was stopped at a Texas airport while trying to board a flight to New York. Security agents noticed she had several pages ripped out of her passport.

Mike Tyson is in trouble with the law again. He has to answer a misdemeanor criminal damage charge. The boxer was arrested for allegedly jumping on the hood of a car last month outside of a Scottsdale, Arizona nightclub. He was released, but must appear in court in the next 10 days. Tyson had been in training for a return to the ring in March.

Basketball star Carmelo Anthony appears in an underground DVD aimed at a reputed drug kingpin who turned in state's evidence. The DVD is called "Stop Snitching" and is being sold on the streets in Baltimore. Anthony, who is from Baltimore, appears in one scene.

Can Martha trump the Donald's ratings? We'll see just as soon as she gets out of prison. The new reality at 42 minutes past.

The winter months, a Norman Rockwell holiday -- why, then, is this time of year so hard on your heart? It's the health hazard you may not realize. That's at 50 minutes past.

And Madame Toussaint's displays -- a little holiday spirit, but don't look for peace on Earth. At 19 after, we'll show you what all the fuss is about.

But first, here's a look at what else is making news this Thursday morning.

(BEGIN VIDEO TAPE)

ELIZABETH FENNER, ASSISTANT MANAGING EDITOR, "FORTUNE": "Fortune" picked Ryobi's laser level because it is the first laser level you can measure for level as opposed to using a pencil or a chalk line. It has a suction cup that sticks it to the wall so that you don't have to have two people working together. This laser level is definitely for the average consumer.

The Veneerware plates are an example of a basic form, the plate. But it's done in a 100 percent organic Bambu. Bambu is a renewable resource. If you put it in a landfill, it'll biodegrade very quickly.

So it's just nice to see designers using sustainable materials in a new way.

"Fortune" loved these Tupperware flat out containers. Tupperware takes up a lot of space in your cabinet, but these are like accordions. You can collapse the sides of it down so that you can fit everything perfectly into that space and you don't have wasted space in your refrigerator. It's really a great innovation. It's sort of like why didn't we think of that?

(END VIDEO TAPE)

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(STOCK MARKET REPORT)

COSTELLO: Your news, money, weather and sports.

It's 5:18 Eastern.

Here's what's all new this morning.

Five people are dead following a shooting at a Columbus, Ohio nightclub. Witnesses say the incident started when a gunman jumped onstage during a rock concert and shot at members of the band Damageplan.

Scott Peterson may learn his fate as early as today. The jury is expected to begin deliberations after closing arguments today in the penalty phase of the trial. Peterson faces either life in prison without parole or the death penalty.

In money news, United Airlines Flight 869 takes off this afternoon to become the first U.S. commercial flight to Vietnam since the end of the war. The daily flight is part of United's plan to expand its service throughout Asia.

In culture, best-selling rap superstar Jay-Z is moving up the corporate ladder. He's been tapped to run Vivendi Universal's Def Jam record label. Jay-Z will have control over the hip-hop label's stable of artists and the marketing of new albums.

In sports, Lance Armstrong is waiting to decide whether to try for number seven. The six time Tour de France champion says he won't announce his plans for this year's Tour until at least May. The race begins in July -- Rob.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

Nativity scenes are everywhere this time of year. But here is one that has sparked some harsh criticism. It's the Nativity scene at Madam Toussaint's Wax Museum in London. Get this. It features soccer star David Beckham and his wife Victoria, a former Spice Girl, as Joseph and Mary. President Bush, British Prime Minister Tony Blair and Prince Phillip are the three wise men.

The Vatican is not happy. It's quoted as saying that: "If this isn't blasphemous, then it's in very poor taste." But the Museum is not budging. A spokeswoman says the celebrity Nativity won't be coming down before Christmas.

Oh, my. That brings us to our E-mail Question of the Day. It is, is this celebrity Nativity scene disrespectful or is it all in good fun? Should the Museum take the display down, for goodness sake? Send us your comments to daybreak@cnn.com. That's daybreak@cnn.com.

Just ahead on DAYBREAK, the reality is prison cannot stop Martha Stewart from making a deal. But will you watch?

You are watching DAYBREAK for a Thursday.

(COMMERCIAL BREAK)

COSTELLO: Time for our DAYBREAK "Eye-Openers."

Salvation Army Santas in Phoenix, Arizona are taking plastic this year. Bell ringers are carrying card readers that will allow willing donors to use debit or credit cards to give to charity. A similar system was in place in Pittsburgh a few years ago and it was a raging success.

Pack your moon boots, because you could be heading for outer space. The Senate passed a bill that lets the FAA issue permits to private companies that want to take passengers into space. The private spacecraft, Space Ship One, successfully made it into space three times earlier this year. The bill will also allow the government to regulate the commercial space industry.

One of a string of SpongeBob thefts has been solved. Several states have reported that inflatable giant SpongeBobs, like the one you saw on top of that Burger King, have been stolen from the restaurant rooftops. But in Norwich, Connecticut, the rubber SpongeBob actually melted into the building's heating ducts. And the cleanup crew never told anyone that they ended up throwing it in the trash. So one mystery solved.

Oh, my. Time now to look beyond the sound bite. And this morning we've got Comedy Central star Jon Stewart tackling the gay marriage issue. He was on CNN's "Larry King Live" last night.

Here's what he had to say.

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

JOHN STEWART, COMEDY CENTRAL'S "THE DAILY SHOW": If the problems in morality in this country are literally down to if dudes marry, then we've won. Isn't it? I mean dudes marrying isn't even in the top Ten Commandments.

LARRY KING, HOST: It isn't, that's right.

STEWART: No. Adultery is a top tenner. But that doesn't seem to be, you know, an issue. It's very, it's interesting that these kinds of divergence, you know, the culture wars, I think, are -- there's something real there, but we don't ever actually deal with that. We deal with the sort of -- whether or not the Ten Commandments can be posted in a school. I mean if you think the Ten Commandments being posted in a school is going to change behavior of children, then you think "employees must wash hands" is keeping the piss out of your Happy Meals. It's not

(END VIDEO CLIP)

COSTELLO: Stewart also has a thing or two to say about John Kerry and his failed bid for the presidency.

Here's that for you.

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

STEWART: There is a strange thing in our electoral process where candidates, when they run for office, decide they have to be regular dudes, they have to be us. There's this sort of general I'm just like you. I'm a regular Joe. Really? Do you watch 10 hours of TV a day? Because I would think you'd want to work. I don't understand why they don't come out and say I'm better than you, that's why I should be president. Because if you're just like me, then why am I voting for you? I should be president.

KING: Excellent point.

STEWART: But you know what I'm saying? They all run to this it's this weird sense of I'm going to put on that red and black checked jacket and I'm going to go down to a factory and have a cup of coffee and a donut with a dude and show him that I'm an idiot. You know, why don't -- I don't understand. And I think that was -- there was an attempt on his part to dumb himself down in a way that was disingenuous, it seemed.

But other than that, he did get five million more votes than Al Gore got. So I think he just got beat at a certain level. George Bush just beat him.

(END VIDEO CLIP)

COSTELLO: Interesting.

Here's what's all new in the next half hour of DAYBREAK.

Which car will get you the most money when it's time to trade it in? We're going to tell you.

And a little later, a report on Iraq that may surprise you. Combat fatality rates are at their lowest levels ever. We'll tell you why.

From New York, this is DAYBREAK for a Thursday.

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