Mr. Chairman, I yield myself as much time as I might consume. Mr. Chairman, I rise today in strong support of H.R. 4413, the Customer Protection and End User Relief Act. This is a bipartisan bill to reauthorize the Commodity Futures…
Mr. Chairman, I yield myself as much time as I might consume.
Mr. Chairman, I rise today in strong support of H.R. 4413, the Customer Protection and End User Relief Act.
This is a bipartisan bill to reauthorize the Commodity Futures Trading Commission that I introduced along with my colleagues, Ranking Member Collin Peterson and chairman and ranking member of the Subcommittee on General Farm Commodities and Risk Management, Mike Conaway and David Scott.
This bill is years in the making, and I want to thank my colleagues on both sides of the aisle for all of the hard work that they have put in to get us to this point.
Throughout this process, the committee, as well as the Subcommittee on General Farm Commodities and Risk Management, held numerous hearings, heard from a variety of stakeholders with a wide variety of perspectives.
We heard from end users representing farmers, ranchers, manufacturers, energy firms, and utilities. We heard testimony from every CFTC Commissioner and even foreign regulators. We also heard from exchanges, futures customers, and numerous other market participants.
Ultimately, we developed legislation to reauthorize and reform the CFTC in a way that would not only improve operations at the agency, but also protect customers from another market failure, as we saw with MF Global or PFGBEST.
Our efforts will also increase certainty in the marketplace and provide a more balanced approach to regulations impacting job creators.
I am proud to say this overwhelmingly bipartisan bill passed unanimously out of the Agriculture Committee by a voice vote.
First of all, H.R. 4413 will better protect farmers and ranchers who use the futures markets to manage their risk by cementing several new and existing protections into law.
These protections are designed to restore confidence in the marketplace following the failure of MF Global and PFGBEST, where customers, who thought their money was safely segregated, suffered severe financial loss due to the illegal use of their funds.
Such protections include requiring firms to calculate and report customer account balances electronically to regulators, requiring firms who become undercapitalized to immediately notify regulators, and imposing strict reporting and permission requirements before the movement of a customer's funds from one account to another.
Now, as for the reforms of the Commission, H.R. 4413 reauthorizes the appropriations to the agency through 2018. Furthermore, the bill strives to enhance the efficiency of the Commission operations and ensure all Commissioners' voices are heard in the regular order of a well-reasoned rulemaking process.
For example, H.R. 4413 closely follows an executive order issued by President Obama to improve the quality of cost-benefit analysis performed by the Commission prior to promulgating rules; requires division directors to serve at the pleasure of the entire Commission, rather than solely at the whim of the chairman; and clarifies the judicial review process of agency rules.
The Commission reform title also calls for the development of a much- needed strategic technology plan to enhance market surveillance and the interpretation of collected data.
Importantly, H.R. 4413 also provides much-needed relief to end users. Those are the market participants who account for only 10 percent of the swaps market and had nothing to do with the 2008 financial crisis, yet represent 94 percent of U.S. job creators, including farmers, ranchers, manufacturers, energy firms, and utilities.
Due to the consideration of the Dodd-Frank Act, Congress clearly intended to exempt end users from some of the most costly new regulations. However, the CFTC has narrowly interpreted the law, resulting in burdensome and often arbitrary compliance requirements which have negatively impacted end users by making it more difficult and costly to manage the risks associated with their businesses.
To address these concerns, H.R. 4413 includes provisions which relieve business owners from arbitrary and costly record-keeping requirements, allow businesses to continue successful fuel-hedging strategies, and prevent the physical delivery of commodities from being unnecessarily regulated as swaps.
H.R. 4413 provides help to America's job creators by including five carefully crafted measures designed to enhance market certainty, which have previously passed the House of Representatives Agriculture Committee and the United States House of Representatives, with overwhelming bipartisan support, three of which received over 400 votes in favor.
In closing, the Customer Protection and End User Relief Act is a wide-ranging, bipartisan CFTC reauthorization bill that provides a blueprint for the newly elected Chairman and Commissioners to use in making numerous improvements at the Commission, better protects futures customers, and reduces burdens on America's job creators. I urge each of my colleagues to join me in supporting this bipartisan legislation.
I reserve the balance of my time.
House of Representatives,
Committee on Agriculture,
Washington, DC, May 21, 2014.
Hon. Bob Goodlatte,
Chairman, Committee on the Judiciary, House of
Representatives, Rayburn House Office Building,
Washington, DC.
Dear Mr. Chairman: Thank you for your letter regarding H.R.
4413, the Customer Protection and End User Relief Act. As you
noted, there are provisions of the bill that fall within the
Rule X jurisdiction of the Committee on the Judiciary.
I appreciate your willingness to forgo action on H.R. 4413,
and I agree that your decision should not prejudice the
Committee on the Judiciary with respect to the appointment of
conferees or its jurisdictional prerogatives on this or
similar legislation.
I will also include a copy of our exchange of letters in
the Congressional Record during floor debate.
Thank you for your courtesy in this matter and I look
forward to continued cooperation between our respective
committees.
Sincerely,
Frank D. Lucas,
Chairman.
Mr. Chairman, I yield 4 minutes to the gentleman from the great State of Texas (Mr. Hensarling), the chairman of the Financial Services Committee.
Mr. Chairman, I wish to yield 2 minutes to the gentleman from North Carolina, Congressman Hudson, who has crafted a key component of this major reform bill.
Mr. Chairman, I wish to yield 2 minutes to the gentleman from Georgia (Mr. Austin Scott), an outstanding Member who also has worked a key portion of this bill, and his legislation reflects it.
Mr. Chairman, I yield 4 minutes to the gentleman from Texas (Mr. Conaway), who not only has a key component of this bill, but in his role as chairman of the Subcommittee on General Farm Commodities and Risk Management carried the lion's share of the subcommittee hearing work and the day-to-day efforts that came to be known as H.R. 4413.
Mr. Chairman, I yield 3 minutes to the gentleman from California (Mr. LaMalfa) whose good work as a freestanding bill passed unanimously in this body.
Mr. Chairman, I yield 2 minutes to the gentleman from Illinois (Mr. Rodney Davis), who has a major component in this overall legislation.
Mr. Chairman, might I inquire how much time remains for both sides?
Mr. Chairman, I would note to my colleague, I have no additional speakers and would reserve the balance of my time to close.
Mr. Chairman, I yield myself what time I might consume.
Mr. Chairman, I would like to remind all of my colleagues that once again the House Agriculture Committee, in the tradition of the House Agriculture Committee, has worked very diligently to address issues that are of great impact on rural America and on our national economy. In that tradition of bipartisanship--call it nonpartisanship if you want--Mr. Peterson and I, Mr. Conaway, Mr. Scott have worked in full committee and subcommittee together to craft what is a reasonable, logical set of proposals to address some real issues out there.
Any of you who have observed this process know that the committee is not timid in trying to do the right thing; and we have a track record of however long it takes, however hard it is, to do the right thing.
Now, some will say this piece of legislation may or may not have an impact on the decisionmaking process in some other body. I would just note to you, we have identified, through all of the hearings and all the testimony and all the input from within government and without government, that there are some things that need to be done. With this piece of legislation, we will encourage progress on those issues.
I urge all of my colleagues, vote for H.R. 4413. Move the process along; help us get ultimately to a product that will address these problems. This is a rather substantial impact on the national economy. If we don't do the things that we are proposing in the Agriculture Committee that we do, harm will be done, job creation will be impacted,
every consumer and every working person will feel the effects negatively. So pass the bill. Pass the bill.
With that, Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I claim the time in opposition to the gentleman's amendment.
Mr. Chairman, I yield myself such time as I might consume.
Although it is my understanding that the substance of the gentleman from Oregon's amendment would be broadly addressed within the existing language of section 107, I certainly see no problem with ensuring that his concerns are addressed more specifically. Therefore, I will suggest to my colleague from Oregon, let's accept your amendment.
With that, Mr. Chairman, I yield back the balance of my time.
Mr. Chair, I claim the time in opposition to the amendment.
Mr. Chair, in a time of economic uncertainty, tight fiscal budgets, I advise against the use of valuable Commission time and resources on a study with some ambiguous terms and no clear practical use.
H.R. 4413 already includes carefully crafted requirements for studies on the pertinent issues of agency funding and on the effects of high- frequency trading. So I respectfully urge my colleagues to join me in opposing this amendment.
With that, I reserve the balance of my time.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I rise in opposition to the amendment.
Mr. Chairman, this amendment sponsored by the gentlewoman from Washington and her cosponsors, the gentlemen from New York and California--all valued Members of the House Agriculture Committee-- builds on the enhancements of the cost-benefit analysis required in this bill by preserving the court's ability to review the Commission rules or orders.
I congratulate the sponsors of this amendment. Once again, the House Ag Committee proves that working in a bipartisan manner is possible and productive. This is the type of cooperation I think our friends back home would want to see and demand.
With that, I urge its adoption, and I yield back the balance of my time.
Mr. Chairman, I claim the time in opposition to the amendment.
Mr. Chairman, I yield myself such time as I may consume.
In crafting the Consumer Protection and End User Relief Act, I worked closely with Ranking Member Peterson to ensure that judicial review of CFTC rules would be on the same footing as a review of security laws from the SEC, the Securities and Exchange Commission.
The current disparity between security laws and the Commodity Exchange Act has resulted in confusion in the past, as aggrieved parties were unsure of where to go to seek review of CFTC rules.
Quite simply, I urge my colleagues to vote against what I fear is a regressive amendment.
With that, I reserve the balance of my time.
Mr. Chairman, I yield myself whatever time I might consume.
Once again, I respectfully ask my colleagues to vote against what I am concerned is a regressive amendment.
With that, I yield back the balance of my time.
Mr. Chairman, I thank the gentleman from New Jersey.
I would simply note: let's cut to the point here. The CFTC, when finalizing the rules for registered investment companies, deferred almost entirely to the SEC to regulate them, so this amendment is in line with what the CFTC has already done.
I urge my colleagues to support the commonsense amendment. Let's just do what is reflected here, and I thank the gentleman for his input.
Mr. Chairman, I move that the Committee do now rise.