House Education and the Workforce Committee Markup on H .R. 4293 and H.R. 4294
House Education and the Workforce Committee
“Committee Markup”
Tuesday, February 2, 2016
Key Topics & Takeaways
- Final Votes: Both bills passed the Committee 22-14 and will be reported to the House.
- Collaboration: Chairman Kline expressed his desire for a collaborative effort between the DOL and Congress in creating the proposed fiduciary rule, but said that the DOL drafted the latest version “behind closed doors.”
- Democratic Opposition: Democratic members voiced their opposition to the bills and voted on party lines.
- Transparency: Rep. Polis stated that that the public deserves the opportunity to view the final rule prior to the DOL releasing it, and said he will be sending a letter to the DOL requesting to see the revised changes.
Bills Considered
- H.R. 4293, “Affordable Retirement Advice Protection Act”
- H.R. 4294, “Strengthening Access to Valuable Education and Retirement Support Act of 2015”
Opening Statements
In his opening statement, Chairman John Kline (R-Minn.) expressed his desire for a collaborative effort between the Department of Labor (DOL) and Congress in creating the proposed fiduciary rule, but said that the DOL drafted the latest version “behind closed doors.” Americans saving for retirement will lose access to their advisors, he continued, and the bill will make it more difficult for small businesses to provide plans to their employees. Kline noted that the legislation being marked up was created due to bipartisan concerns over the DOL’s proposed rule, and that they are similar in that the require an advisor to serve in their clients’ best interests.
In his opening statement, Ranking Member Bobby Scott (D-Va.) stated his support for the DOL’s fiduciary rule, adding that he “trusts [DOL] will modify the rule” after receiving public comments. He continued that the two bills include a “constitutionally suspect process” and allows advisors to continue to recommend bad products to their clients, as well as provide a loophole for advisors to avoid a fiduciary obligation through a disclaimer.
H.R. 4293, “Affordable Retirement Advice Protection Act”
Rep. Phil Roe (R-Tenn.) presented an amendment in the nature of a substitute, which would amend the Employee Retirement Income Security Act (ERISA) to ensure investors receive retirement advice in their best interests and prohibits the DOL from amending any rules under ERISA prior to the enactment of the bill.
Democrat Opposition
Scott asked to postpone markup indefinitely so the Committee could reserve judgment until after the DOL releases the final rule.
Rep. Ruben Hinojosa (D-Texas) agreed, adding that the legislation would weaken the “inadequate protections” investors have and said it lacks widespread support.
Rep. Jared Polis (D-Colo.) stated that the markup was “premature,” but noted that the public deserves the opportunity to view the final rule prior to the DOL releasing it, and said he will be sending a letter to the DOL requesting to see the revised changes.
Amendment from Rep. Bonamici
Rep. Suzanne Bonamici (D-Ore.) offered an amendment that would require the director of the Congressional Budget Office (CBO) to certify that provisions in the bill will put clients’ best interests first before the legislation is enacted. Hinojosa voiced his support for the amendment.
Roe stated that it would be “impossible” for the CBO to accomplish such a task and asked if she would “subject the DOL to the same scrutiny?”
The amendment was rejected by voice vote.
Final Vote
H.R. 4293 was adopted by the Committee in a party line 22-14 vote.
H.R. 4294, “Strengthening Access to Valuable Education and Retirement Support Act of 2015”
Rep. Buddy Carter (R-Ga.) presented an amendment in the nature of a substitute, which would amend the Internal Revenue Code (IRC) to ensure retirement advisors look out for their client’s best interest and prohibits the DOL from amending any rules under ERISA before the enactment of the bill.
Scott said that “these legislative vetoes are unconstitutional.”
Final Vote
H.R. 4294 was adopted by the Committee in a party line 22-14 vote.
For more information on this event, please click here.
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House Education and the Workforce Committee
“Committee Markup”
Tuesday, February 2, 2016
Key Topics & Takeaways
- Final Votes: Both bills passed the Committee 22-14 and will be reported to the House.
- Collaboration: Chairman Kline expressed his desire for a collaborative effort between the DOL and Congress in creating the proposed fiduciary rule, but said that the DOL drafted the latest version “behind closed doors.”
- Democratic Opposition: Democratic members voiced their opposition to the bills and voted on party lines.
- Transparency: Rep. Polis stated that that the public deserves the opportunity to view the final rule prior to the DOL releasing it, and said he will be sending a letter to the DOL requesting to see the revised changes.
Bills Considered
- H.R. 4293, “Affordable Retirement Advice Protection Act”
- H.R. 4294, “Strengthening Access to Valuable Education and Retirement Support Act of 2015”
Opening Statements
In his opening statement, Chairman John Kline (R-Minn.) expressed his desire for a collaborative effort between the Department of Labor (DOL) and Congress in creating the proposed fiduciary rule, but said that the DOL drafted the latest version “behind closed doors.” Americans saving for retirement will lose access to their advisors, he continued, and the bill will make it more difficult for small businesses to provide plans to their employees. Kline noted that the legislation being marked up was created due to bipartisan concerns over the DOL’s proposed rule, and that they are similar in that the require an advisor to serve in their clients’ best interests.
In his opening statement, Ranking Member Bobby Scott (D-Va.) stated his support for the DOL’s fiduciary rule, adding that he “trusts [DOL] will modify the rule” after receiving public comments. He continued that the two bills include a “constitutionally suspect process” and allows advisors to continue to recommend bad products to their clients, as well as provide a loophole for advisors to avoid a fiduciary obligation through a disclaimer.
H.R. 4293, “Affordable Retirement Advice Protection Act”
Rep. Phil Roe (R-Tenn.) presented an amendment in the nature of a substitute, which would amend the Employee Retirement Income Security Act (ERISA) to ensure investors receive retirement advice in their best interests and prohibits the DOL from amending any rules under ERISA prior to the enactment of the bill.
Democrat Opposition
Scott asked to postpone markup indefinitely so the Committee could reserve judgment until after the DOL releases the final rule.
Rep. Ruben Hinojosa (D-Texas) agreed, adding that the legislation would weaken the “inadequate protections” investors have and said it lacks widespread support.
Rep. Jared Polis (D-Colo.) stated that the markup was “premature,” but noted that the public deserves the opportunity to view the final rule prior to the DOL releasing it, and said he will be sending a letter to the DOL requesting to see the revised changes.
Amendment from Rep. Bonamici
Rep. Suzanne Bonamici (D-Ore.) offered an amendment that would require the director of the Congressional Budget Office (CBO) to certify that provisions in the bill will put clients’ best interests first before the legislation is enacted. Hinojosa voiced his support for the amendment.
Roe stated that it would be “impossible” for the CBO to accomplish such a task and asked if she would “subject the DOL to the same scrutiny?”
The amendment was rejected by voice vote.
Final Vote
H.R. 4293 was adopted by the Committee in a party line 22-14 vote.
H.R. 4294, “Strengthening Access to Valuable Education and Retirement Support Act of 2015”
Rep. Buddy Carter (R-Ga.) presented an amendment in the nature of a substitute, which would amend the Internal Revenue Code (IRC) to ensure retirement advisors look out for their client’s best interest and prohibits the DOL from amending any rules under ERISA before the enactment of the bill.
Scott said that “these legislative vetoes are unconstitutional.”
Final Vote
H.R. 4294 was adopted by the Committee in a party line 22-14 vote.
For more information on this event, please click here.