(Updates with three laws passed) Feb 13 (Reuters) - Iraqi lawmakers achieved a breakthrough on Wednesday, passing the 2008 budget, an amnesty law that could lead to the release of thousands of prisoners and a provincial powers law defining Baghdad's relations with local authorities. Following is the status of key pieces of legislation. The United States regards many of the bills as vital to healing the country's deep sectarian divide. LAWS PASSED JUSTICE AND ACCOUNTABILITY - Parliament passed a bill in January allowing former members of Saddam Hussein's Baath party to regain their jobs in the government and military. The measure had been demanded by minority Sunni Arabs, who were dominant under Saddam. Many Baathists were sacked by U.S. occupation forces after Saddam was toppled in 2003. 2008 BUDGET - Bitter rows over sharing the $48 billion budget had delayed its passage for weeks. Minority Kurds wanted 17 percent of allocations, while some Shi'ite and Sunni Arab MPs said this was too much based on current population estimates. A compromise was reached whereby the allocation would remain 17 percent for this year and then reviewed pending a proper census. AMNESTY - This is seen as a key step towards reconciling disaffected Sunni Arabs with the Shi'ite-led government. It could lead to the release of thousands of mainly Sunni Arab prisoners held in Iraqi custody. U.S. forces and Iraqi authorities each hold more than 23,000 prisoners, mostly Sunni Arabs behind an insurgency against the U.S.-backed government. Iraqi officials have said people detained, on trial or convicted could be eligible to be freed. It would not apply to those convicted of major crimes such as murder. Sunni Arab MPs said inmates who had spent longer than six months in prison without being charged would be freed. So would prisoners who had been charged but not appeared before a judge for a year. They also said a clause bound the government to pressure the United States to transfer prisoners it holds to Iraqi authorities. PROVINCIAL POWERS - This law defines relations between Baghdad and local authorities and is seen by Iraqis as a key step before a date can be set for provincial elections. It outlines the power allocated to Iraq's 18 provinces and their governors, how provincial councils are elected and how governors take office. LAWS YET TO REACH PARLIAMENT OIL - Seen as the most important of all legislation sought by the United States, this measure would equitably share Iraq's vast oil wealth among its ethnic and sectarian groups and lay the legal foundation for foreign investment in the sector. While cabinet approved a draft a year ago, it remains bogged down because of disputes between the central government and the northern Kurdish region over control of reserves and the authority to sign contracts with foreign oil companies. PROVINCIAL ELECTIONS - Sunni Arabs are represented in parliament after taking part in national elections in December 2005, but they largely boycotted provincial polls in January 2005 and are under-represented in many areas where they are numerically dominant. Cabinet has yet to agree a law setting a date for new provincial elections, but the provincial powers law passed on Wednesday has a clause calling for polls to be held by Oct. 1. CONSTITUTIONAL REFORM - Parliament's constitutional reform committee failed last year to reach agreement on amending key provisions of the constitution and debate on the measure since appears to be have been shelved. (Writing by Tim Cocks, editing by Dean Yates and Dominic Evans)
Police hold back students protesting the Iraq war, in Berkeley, California February 12, 2008. The Berkeley City Council is expected to vote whether to revoke a letter it approved two weeks ...