Floor Statements

Madam Speaker, I rise to recognize Assistant Chief Lenn Grant of the Barrington Fire Department. I would like to thank Assistant Chief Grant for his 37 years of service to the Barrington community and congratulate him on his recent retirement. Assistant Chief Grant has made a valuable contribution to his community, and to the district I represent.

During the course of Assistant Chief Grant's career, the Barrington Fire Department has grown along with the needs of the community, evolving from a small on-call team to a modernized full-time squad with advanced emergency capabilities. Assistant Chief Grant's rise from a part-time firefighter to assistant chief reflects the dedication and professionalism that have earned him the respect of his colleagues and community. Throughout Assistant Chief Grant's time with the department, he has continually reached beyond the call of duty, serving on numerous public safety committees and developing innovative training programs for fellow firefighters.

Madam Speaker, the Village of Barrington will greatly miss Assistant Chief Grant's hard work and initiative within the fire department, but I know he will continue to apply the same talents and values to the benefit of the Barrington community for years to come. I thank Assistant Chief Grant for his service and wish him continued success in the future.

Thank you and I yield back the balance of my time.

Madam Speaker, as the principal author of the compromise provision regarding the preemption of State consumer financial laws under the National Bank Act and the Home Owners Loan Act that was included in the manager's amendment on page 139 to 150, I wanted to take this opportunity to explain to my colleagues my intention in drafting the language.

The compromise language made improvements in several areas to allow national banks and Federal savings associations, which are institutions that operate under a national charter to comply with a uniform national standard where appropriate. I would like to further explain four components of the compromise specifically for the House. Those components include (1) limiting the scope of new preemption procedures to State consumer financial laws, so as not to affect preemption for other State laws; (2) the ability for categories of State consumer financial law to be preempted; (3) modifications of the preemption standard to more accurately reflect the Supreme Court Case of Barnett Bank v. Nelson, which established the preemption standard currently applied to national banks and Federal savings associations; and (4) the degree of deference afforded to the Office of the Comptroller of the Currency and Office of Thrift Supervision by the courts.

First, under the compromise, the changes to preemption procedures under the National Bank Act for national banks and the Home Owners Loan Act for Federal savings associations are exclusively limited to State consumer financial laws. During the drafting of the compromise, I removed a sentence, previously suggested by the Committee that said national banks are to generally comply with State law. I removed this sentence because I wanted to make clear that the changes in the Act do not alter the preemption standards and precedents that apply to those State laws which are not State consumer financial laws. Narrowing the scope to just State consumer financial law is consistent with the initial scope of Subtitle D of H.R. 3126, The Consumer Financial Protection Act, when it was introduced in July 2009.

Second, the compromise language included language that allows for categories of State consumer financial law to be preempted. This means that if the Comptroller of the Currency (the regulator of national banks) or the Director of the Office of Thrift Supervision (the regulator of Federal savings associations) determines a State consumer financial law in a particular state should be preempted because it ``prevents, significantly interferes with, or materially impairs'' the abilities of a national bank or Federal savings association, then that specific determination can be applied to other States' consumer financial laws with equivalent terms. For example, if one state seeks to require additional disclosure requirements for credit cards that the Comptroller of the Currency determines ``prevents, significantly interferes with, or materially impairs'' the ability of a national bank to engage in the business of banking, that determination can be applied to another state's credit card disclosure laws if those laws have equivalent terms.

Third, a critical portion of the compromise was drafting a preemption standard that embodied existing precedent. The preemption standard that was reported out of the Financial Services Committee stated that a State law could be preempted if it ``prevents or significantly interferes with'' the ability of a national bank (or a Federal savings association) to engage in the business of banking. ``Prevents or significantly interferes with'' has been often mentioned as the shorthand citation of the preemption standard established by the Supreme Court in 1996 in Barnett Bank v. Nelson. However, as I and many others have noted, the Supreme Court ruling was not limited to those two terms as the only circumstance in which preemption of State laws is appropriate. In fact, they expanded on those words by saying that a State law should be preempted not only when it ``prevents or significantly interferes with,'' but also ``stands as an obstacle to the accomplishment of the purposes,'' ``encroach(es) on,'' ``destroy(s) or hamper(s),'' or ``impair(s).''

Since the Barnett case describes a number of situations in which State law is preempted, in addition to the ``prevents or significantly interferes with'' standard, I was concerned that limiting the underlying text to the shorthand expression of ``prevents or significantly interferes with'' could be construed as narrowing the Constitutional standard. I therefore added the words ``materially impairs,'' so that there would be no question that the preemption standard is the same as the standard described in Barnett, and that State consumer financial law may be preempted if it violates any of the well established Constitutional benchmarks for preemption. I chose the word ``materially'' because if the impairment is not material--meaning it would only have a negligible effect on the bank--it should not be subject to preemption under current law.

When making preemption determinations on State consumer financial laws, the Comptroller of the Currency for national banks, Director of the Office of Thrift Supervision for Federal savings associations, or the Court must find that Federal law applicable to national banks and Federal savings associations, including regulations and similar issuances, deals with the subject or activity that the State consumer financial law is seeking to regulate. A good example is the detailed disclosure requirements set by Federal law and Federal regulators, developed after substantial consumer testing, that apply to certain types of consumer financial products.

Finally, the compromise language is intended to clarify that when a court is reviewing an OCC determination concerning the proper interpretation of the National Bank Act or other Federal law that the OCC is charged with administering, the court is to apply the traditional deference accorded to an agency, often referred to as ``Chevron'' deference. The same clarification applies when a court is reviewing an OTS determination regarding the proper interpretation of the Home Owners Loan Act or other Federal law that the OTS administers. Further, while the underlying legislation directed the courts to apply a different type of deference to OCC or OTS preemption determinations, the compromise amendment makes clear that the Chevron deference standard applies to all OCC and OTS interpretations of Federal law, the National Bank Act, and the Home Owners Loan Act, including those made in the context of a preemption determination.

Madam Speaker, I thank you for the opportunity to further explain the preemption compromise I drafted in the manager's amendment.

I yield back the balance of my time.

Madam Speaker, I rise to recognize the Village of Wonder Lake, a town in my district celebrating a milestone anniversary this year. This community has made a unique contribution to the district I represent, and to the State of Illinois.

The Village of Wonder Lake is celebrating its 35 year anniversary. Located in McHenry County, Wonder Lake takes its name from the largest private man-made lake in the state of Illinois. In the 1850s, the area of was served by the Harsh School, a one room log building serving about a dozen farmhouses. It was not until 1974 that Wonder Lake was incorporated as residents of the Sunrise Ridge community came together to form a village.

Madam Speaker, the Village of Wonder Lake is unique in its history and adds greatly to the vibrant community of the Eighth District of Illinois. I thank all the past leaders of the Village of Wonder Lake for their dedication to public service; their community would not have reached this milestone without their hard work and commitment. I congratulate Wonder Lake for reaching their 35th anniversary and I wish them continued success in the future.

Madam Speaker, I rise to recognize Mundelein, a town in my district celebrating a milestone anniversary this year. This community has made a unique contribution to the district I represent, and to the State of Illinois.

Mundelein is celebrating its 100th anniversary. As early as 1650, the Potawatomi Indians were trading with French fur traders in the area now known as Mundelein. Nearly two centuries later, a group of English immigrants came to the area and named their new community ``Mechanics Grove''. In 1921, Cardinal George Mundelein of Chicago bought property

in the village to construct St. Mary's of the Lake Seminary. The village changed its name again in 1924 in recognition of Cardinal Mundelein's success with the new seminary. Today, Mundelein has grown to a residential community of over 30,000 residents.

Madam Speaker, the village of Mundelein is unique in its history and adds to the vibrant community of the Eighth District of Illinois. I thank all the past leaders of village of Mundelein for their dedication to public service; their community would not have reached this milestone without their hard work and commitment. I congratulate Mundelein for reaching their 100th anniversary and I wish them continued success in the future.

Madam Speaker, I rise to recognize the Village of Hoffman Estates, a town in my district that is celebrating a milestone anniversary this year. This community has made a unique contribution to the district I represent, and to the State of Illinois.

The Village of Hoffman Estates is celebrating its 50th anniversary. Located in Cook County, Hoffman Estates was established in 1954 when a local farmer sold his 160 acre farm to Sam and Jack Hoffman, owners of the Father and Son Construction Company. The Hoffmans built a development and in 1959, the residents of the subdivision voted to incorporate as the village of Hoffman Estates. In the following decades, Hoffman Estates continued to annex surrounding areas and developments. Business also came to Hoffman Estates including the Sears, Roebuck and Company in 1992.

Madam Speaker, the Village of Hoffman Estates is unique in its history and adds greatly to the vibrant community of the Eighth District of Illinois. I thank all the past leaders of the Village of Hoffman Estates for their dedication to public service; their community would not have reached this milestone without their hard work and commitment. I congratulate Hoffman Estates for reaching their 50th anniversary and I wish them continued success in the future.

Madam Speaker, I rise to recognize the village of Beach Park, a town in my district celebrating a milestone anniversary this year. Each of these communities has made a unique contribution to district I represent, and to the State of Illinois.

The village of Beach Park is celebrating its 20-year anniversary. Located on Lake Michigan, Beach Park was a stop on the Chicago- Milwaukee Electric Railroad named ``Beach Depot'' in the early 1900s. In 1928, F.H. Bartlett Co. of Chicago purchased land near the rail station and sold parcels of land to city residents looking to escape to the country. In 1949, the community adopted the name of Beach Park and put a school district and fire department in place. But it was not until 1989 that the village of Beach Park was incorporated.

Madam Speaker, the village of Beach Park is unique in its history and adds to the vibrant

community of the Eighth District of Illinois. I thank all the past leaders of the village of Beach Park for their dedication to public service; their community would not have reached this milestone without their hard work and commitment. I congratulate Beach Park reaching their 20th anniversary and I wish them continued success in the future.

Madam Speaker, I rise to recognize the Village of Fox River Grove, a town in my district that is celebrating a milestone anniversary this year. This community has made a unique contribution to the district I represent, and to the State of Illinois.

The Village of Fox River Grove is celebrating its 90th anniversary. Located along the

Fox River in both Lake and McHenry Counties, Fox River Grove was the winter home of the Ojibwa Indians until the 1860s. In 1869, Frank Opatrny purchased 80 acres along the Fox River. In 1905, the Norge Ski Club purchased land in Fox River Grove and erected a ski jump and in the 1950s the site was host to America's first international ski- jumping contest. Today, the Norge Ski Club is the oldest, continuously open ski club in the United States. Since incorporation in 1919, Fox River Grove has grown from a ski destination to a year-round residential community.

Madam Speaker, the Village of Fox River Grove is unique in its history and adds to the vibrant community of the Eighth District of Illinois. I thank all the past leaders of the Village of Fox River Grove for their dedication to public service; their community would not have reached this milestone without their hard work and commitment. I congratulate Fox River Grove for reaching their 90th anniversary and I wish them continued success in the future.

Madam Speaker, I rise to recognize the Village of Lake Barrington, a town in my district celebrating a milestone anniversary this year. This community has made a unique contribution to the district I represent, and to the State of Illinois.

The Village of Lake Barrington is celebrating its 50-year anniversary. Believed to be first populated by the Potowanami Indians, recent discovery of burial grounds suggest an established Native American presence in the Lake Barrington area. Lake Barrington remained rural and minimally populated until the 20th century when Chicago businessmen began turning the farms into estates. Incorporated in 1959, local residents voted Jorgen Hubschman as the first village president. Lake Barrington has grown over the past 50 years from a community of just 200 residents to a village of 5,000. Recently, the Village of Lake Barrington established a Tree Preservation Code and is currently recognized by the Arbor Day Foundation as a ``Tree City U.S.A'' community. Though the village has grown, Lake Barrington has sought to preserve its scenic charm that continues to make the village an attractive place to live.

Madam Speaker, the Village of Lake Barrington is unique in its history and adds greatly to the vibrant community of the Eighth District of Illinois. I thank all the past leaders of the Village of Lake Barrington for their dedication to public service; their community would not have reached this milestone without their hard work and commitment. I congratulate Lake Barrington for reaching their 50th anniversary and I wish them continued success in the future.

Madam Speaker, I rise to recognize the Village of North Barrington, a town in my district celebrating a milestone anniversary this year. This community has made a unique contribution to the district I represent, and to the State of Illinois.

The Village of North Barrington is celebrating its 50-year anniversary. Located 35 miles northwest of Chicago, North Barrington's first settlers arrived in the 1830s. In 1854, the Chicago & Northwestern Railroad built its first station in the Village of Barrington, just south of the community. The first homes in North Barrington include Kimberly House, built in 1857, which was visited on several occasions by President Theodore Roosevelt, cousin of the Kimberly's daughter-in-law. North Barrington continued to develop and in 1959 area residents voted to incorporate as the Village of North Barrington.

Madam Speaker, the Village of North Barrington is unique in its history and adds greatly to the vibrant community of the Eighth District of Illinois. I thank all the past leaders of the Village of North Barrington for their dedication to public service; their community would not have reached this milestone without their hard work and commitment. I congratulate North Barrington for reaching their 50th anniversary and I wish them continued success in the future.

Madam Speaker, I rise to recognize Old Mill Creek, a town in my district that is celebrating a milestone anniversary this year. This community has made a unique contribution to district I represent, and to the State of Illinois.

The town of Old Mill Creek is celebrating its 50-year anniversary. Located five miles south of the Wisconsin border, Old Mill Creek was first settled by Scottish immigrants as a small agricultural community in the 1830s. One immigrant, Jacob Miller, built a sawmill along the Des Plaines River naming it Millburn, ``burn'' being the Scottish word for creek. The village of Old Mill Creek was incorporated in 1959. Old Mill Creek remains a rural community with a population of 251.

Madam Speaker, Old Mill Creek is unique in its history and adds greatly to the vibrant community of the Eighth District of Illinois. I thank all the past leaders of the town of Old Mill Creek for their dedication to public service; their community would not have reached this milestone without their hard work and commitment. I congratulate Old Mill Creek for reaching their 50th anniversary and I wish them continued success in the future.

Madam Speaker, I rise to recognize Round Lake, a village in my district celebrating a milestone anniversary this year. This community has made a unique contribution to district I represent, and to the State of Illinois.

The Village of Round Lake is celebrating its 100th anniversary. In the 1890s, when officials of the Chicago, Milwaukee, & St. Paul Railroad announced an extension of the Milwaukee-Chicago line, landowners near Hainesville, IL knew a railroad station would increase property values. One such resident, Amarias White, offered the railroad free land in exchange for a station. White succeeded and Round Lake, named after the nearby lake, became the area station. In 1909, the village incorporated with White as the first village president. Through the beginning of the 20th Century, Round Lake's population remained predominately agricultural and the lake acted as a summer retreat for Chicago residents. Today, Round Lake continues to develop as a suburban community.

Madam Speaker, the Village of Round Lake is unique in its history and adds to the vibrant community of the Eighth District of Illinois. I thank all the past leaders of the Village of Round Lake for their dedication to public service; their community would not have reached this milestone without their hard work and commitment. I congratulate Round Lake for reaching their 100th anniversary and I wish them continued success in the future.

Madam Speaker, I rise to recognize the Village of South Barrington, a town in my district celebrating a milestone anniversary this year. This community has made a unique contribution to the district I represent, and to the State of Illinois.

The Village of South Barrington is celebrating its 50-year anniversary. Into the late 1950s, the area was still largely agricultural. In 1959, a group of property owners saw the need for a local government and came together to form a village. Following incorporation, South Barrington continued to build and develop. A parcel of land was donated to the Audubon Society of Chicago by Alex Stillman in 1976, creating the 80-acre Stillman Nature Center.

Madam Speaker, the Village of South Barrington is unique in its history and adds greatly to the vibrant community of the Eighth District of Illinois. I thank all the past leaders of the Village of South Barrington for their dedication to public service; their community would not have reached this milestone without their hard work and commitment. I congratulate South Barrington for reaching their 50th anniversary and I wish them continued success in the future.

Madam Speaker, I rise to recognize the Village of Third Lake, a town in my district celebrating a milestone anniversary this year. This community has made a unique contribution to the district I represent, and to the State of Illinois.

The Village of Third Lake is celebrating its 50-year anniversary. The area of Third Lake first saw growth with the development of Sunshine Subdivision in the late 1920s. In 1959, residents of the subdivision incorporated to control the pollution of the lake. Development emerged once again in the 1980s and continues today as Third Lake has grown into a suburban community. Uniquely, Third Lake is also home to the North American headquarters for the Free Serbian Orthodox Church.

Madam Speaker, the Village of Third Lake is unique in its history and adds greatly to the vibrant community of the Eighth District of Illinois. I thank all the past leaders of the Village of Third Lake for their dedication to public service; their community would not have reached this milestone without their hard work and commitment. I congratulate Third Lake for reaching their 50th anniversary and I wish them continued success in the future.

Madam Speaker, I rise to recognize Waukegan, a city in my district that is celebrating a milestone anniversary this year. This community has made a unique contribution to the district I represent, and to the State of Illinois.

The City of Waukegan is celebrating its 150 year anniversary. Located 36 miles north of Chicago, Waukegan was first established in 1725 as a trading post known as Little Fort. In 1849, residents approved the name of Waukegan, the Potawatomi equivalent of Little Fort and incorporated in 1859. Waukegan continued to grow through the 19th century as a center of industry--Waukegan harbor was one of the busiest on the Great Lakes and several major railroads traveled through the city. These railroads became indispensable to the larger industries which appeared in Waukegan in the later part of the century. Today, Waukegan is largely a residential community, though has continued its tradition of industry with companies such as Abbott Laboratories, Baxter International, and National Gypsum.

Madam Speaker, this city is unique in its history and adds to the vibrant community of the Eighth District of Illinois. I thank all the past leaders of the City of Waukegan for their dedication to public service; their community would not have reached this milestone without their hard work and commitment. I congratulate Waukegan for reaching their 150th anniversary and I wish them continued success in the future.

Madam Chair, I rise in opposition to the amendment and in support of the underlying bill.

While I am opposed to the gentleman from Idaho's amendment, I want to commend him on his leadership on comprehensive financial regulatory reform. We have worked closely on many issues in committee, and I appreciate the expertise he brings to these complicated issues before us.

Reforming our financial system is vitally important to creating a functional, sustainable financial system that American families and businesses can count on. We must not fail to enact adequate safeguards so that the mistakes of the past do not reoccur. Topping our to-do list should be the enactment of strong consumer financial protections that will keep our constituents safe as they rehabilitate their trust in our ability to effectively monitor America's financial health.

In order to accomplish this goal, we need an independent agency whose sole purpose is to protect and empower consumers to make informed financial decisions. The new CFPA, or Consumer Financial Protection Agency, would go a long way towards that end, restoring vital protections that were absent and duly needed during the buildup to America's recent financial fallout.

Since CFPA was introduced in July, the committee has made significant improvements to this bill. One of the initial concerns we heard was that companies who do not engage in consumer financial business would be regulated by the CFPA. We fixed that. Merchants, retailers, doctors, Realtors, and others--some suggested the butcher, the baker, the candlestick maker--let's be clear, they're exempt from CFPA as was intended and as they should be.

We address concerns we heard from banks and credit unions. Small and mid-size banks and credit unions under $10 billion in assets will not be subject to direct CFPA examination. Instead, there is a requirement now for coordination with the CFPA and the prudential regulator for those who are subject to direct CFPA examination.

After the manager's agreement reached this week, the ability of national banks and Federal savings associations to operate under a uniform national standard of rules, where appropriate, is preserved. But functional regulators failed to prioritize consumer protections and protect our constituents.

The CFPA will create a centralized and independent framework, reducing inefficiencies and bureaucracy across multiple agencies. They will have the expertise, resources, and mission to update consumer financial protection laws and protect our constituents from abusive and unfair financial products and services. Mr. Minnick's amendment takes a different approach. What our consumers need is best- in-class protections for investors, and Americans deserve no less.

I urge my colleagues to oppose this amendment and support this historic underlying legislation and the CFPA it creates.