[House Report 111-703]
[From the U.S. Government Publishing Office]
Union Calendar No. 426
111th Congress, 2d Session - - - - - - - - - - - House Report 111-703
REPORT ON ACTIVITIES
DURING THE 111TH CONGRESS
__________
R E P O R T
of the
COMMITTEE ON AGRICULTURE
U.S. HOUSE OF REPRESENTATIVES
January 3, 2011.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
COMMITTEE ON AGRICULTURE
COLLIN C. PETERSON, Minnesota, Chairman
TIM HOLDEN, Pennsylvania, FRANK D. LUCAS, Oklahoma, Ranking
Vice Chairman Minority Member
MIKE McINTYRE, North Carolina BOB GOODLATTE, Virginia
LEONARD L. BOSWELL, Iowa JERRY MORAN, Kansas
JOE BACA, California TIMOTHY V. JOHNSON, Illinois
DENNIS A. CARDOZA, California SAM GRAVES, Missouri
DAVID SCOTT, Georgia MIKE ROGERS, Alabama
JIM MARSHALL, Georgia STEVE KING, Iowa
STEPHANIE HERSETH SANDLIN, South RANDY NEUGEBAUER, Texas
Dakota K. MICHAEL CONAWAY, Texas
HENRY CUELLAR, Texas JEFF FORTENBERRY, Nebraska
JIM COSTA, California JEAN SCHMIDT, Ohio
BRAD ELLSWORTH, Indiana ADRIAN SMITH, Nebraska
TIMOTHY J. WALZ, Minnesota DAVID P. ROE, Tennessee
STEVE KAGEN, Wisconsin BLAINE LUETKEMEYER, Missouri
KURT SCHRADER, Oregon GLENN THOMPSON, Pennsylvania
DEBORAH L. HALVORSON, Illinois BILL CASSIDY, Louisiana
KATHLEEN A. DAHLKEMPER, CYNTHIA M. LUMMIS, Wyoming
Pennsylvania THOMAS J. ROONEY, Florida
BOBBY BRIGHT, Alabama
BETSY MARKEY, Colorado
FRANK KRATOVIL, Jr., Maryland
MARK H. SCHAUER, Michigan
LARRY KISSELL, North Carolina
JOHN A. BOCCIERI, Ohio
SCOTT MURPHY, New York
WILLIAM L. OWENS, New York
EARL POMEROY, North Dakota
TRAVIS W. CHILDERS, Mississippi
WALT MINNICK, Idaho
------
Professional Staff
Robert L. Larew, Chief of Staff
Andrew W. Baker, Chief Counsel
Liz Friedlander, Communications Director
Nicole Scott, Minority Staff Director
LETTER OF SUBMITTAL
----------
House of Representatives,
Committee on Agriculture,
Washington, D.C., January 3, 2011.
Hon. Lorraine C. Miller,
Clerk of the House of Representatives,
Washington, D.C.
Dear Ms. Miller: Pursuant to rule XI, clause 1(d), of the
Rules of the House of Representatives, I herewith submit to the
House a report of the activities of the Committee on
Agriculture during the 111th Congress.
With best wishes, I am
Sincerely,
Hon. Collin C. Peterson,
Chairman.
C O N T E N T S
----------
Page
I. Summary of Organization, Jurisdiction, and Oversight Plan of
the Committee on Agriculture................................... 1
A. Organization.............................................. 1
B. Committee Jurisdiction.................................... 3
C. Oversight Plan............................................ 7
II. Committee Activities During the 111th Congress............... 15
A. Main Legislative Activities............................... 15
B. Statistical Summary of Activities......................... 19
C. Digest of Bills Within the Jurisdiction of the Committee
on Which Action Has Been Taken............................. 19
1. Bills Enacted into Law................................ 19
2. Bills Acted on by the Committee Included in the Other
Laws Enacted........................................... 48
3. Bills Vetoed.......................................... 51
4. Bills Acted on by Both Houses But Not Enacted......... 52
5. Bills Acted on by the House But Not the Senate........ 53
6. Concurrent Resolution Approved........................ 72
7. Bills Reported to the House But Not Considered........ 72
8. Bills Ordered Reported But Not Reported............... 77
9. Bill Defeated in the House............................ 79
D. Oversight................................................. 79
1. Oversight Hearings.................................... 79
2. Legislative Hearings.................................. 94
E. Printed Hearings.......................................... 95
F. Meetings Not Printed...................................... 100
G. Committee Prints.......................................... 101
H. Watersheds................................................ 101
III. Appendix.................................................... 101
A. Executive Communications.................................. 101
B. Statutory and Special Reports............................. 160
Union Calendar No. 426
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-703
======================================================================
REPORT OF THE COMMITTEE ON AGRICULTURE ON ACTIVITIES DURING THE 111TH
CONGRESS
_______
January 3, 2011.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Peterson, from the Committee on Agriculture, submitted the
following
R E P O R T
In accordance with rule XI, clause 1(d), of the Rules of
the House of Representatives, the Committee on Agriculture
reports herewith on its activities during the 111th Congress.
I. Summary of Organization, Jurisdiction, and Oversight Plan of the
Committee on Agriculture
a. organization
The House of Representatives established the total
authorized membership of the Committee on Agriculture for the
111th Congress at 46, with a party division of 28 Democratics
and 18 Republicans. Among the Committee members were 15
Representatives who were serving their first terms (Schrader,
Halvorson, Dahlkemper, Massa, Bright, Markey, Kratovil,
Schauer, Kissell, Boccieri, Minnick, Roe, Luetkemeyer, Thompson
of Pennsylvania, and Cassidy).
SUBCOMMITTEE ASSIGNMENTS
(Ratio includes ex officio Members.)
(Collin C. Peterson, Chairman, and Frank D. Lucas, Ranking
Minority Member, were ex officio Members of all Subcommittees.)
The Committee organized on January 28, 2009, into six
Subcommittees, five of which were assigned jurisdiction over
major agricultural commodities and one that dealt with various
related agricultural operations. The six Subcommittees were
constituted as follows:
Subcommittee on Conservation, Credit, Energy, and Research
(Ratio 19-13)
TIM HOLDEN, Pennsylvania, Chairman
BOB GOODLATTE, Virginia, Ranking Minority MemberERSETH SANDLIN, South
JERRY MORAN, Kansas Dakota
SAM GRAVES, Missouri DEBORAH L. HALVORSON, Illinois
MIKE ROGERS, Alabama KATHLEEN A. DAHLKEMPER,
STEVE KING, Iowa Pennsylvania
RANDY NEUGEBAUER, Texas BETSY MARKEY, Colorado
JEAN SCHMIDT, Ohio MARK H. SCHAUER, Michigan
ADRIAN SMITH, Nebraska LARRY KISSELL, North Carolina
ROBERT E. LATTA, Ohio JOHN A. BOCCIERI, Ohio
BLAINE LUETKEMEYER, Missouri MIKE McINTYRE, North Carolina
GLENN THOMPSON, Pennsylvania JIM COSTA, California
BRAD ELLSWORTH, Indiana
TIMOTHY J. WALZ, Minnesota
ERIC J.J. MASSA, New York
BOBBY BRIGHT, Alabama
FRANK KRATOVIL, Jr., Maryland
WALT MINNICK, Idaho
EARL POMEROY, North Dakota
------
Jurisdiction: Soil, water, and resource conservation, small
watershed program, energy and biobased energy production, rural
electrification, agricultural credit, and agricultural
research, education and extension services.
------
Subcommittee on Department Operations, Oversight, Nutrition, and
Forestry (Ratio 7-5)
JOE BACA, California, Chairman
JEFF FORTENBERRY, Nebraska, Ranking Minority Member Texas
STEVE KING, Iowa STEVE KAGEN, Wisconsin
JEAN SCHMIDT, Ohio KURT SCHRADER, Oregon
------ KATHLEEN A. DAHLKEMPER,
Pennsylvania
TRAVIS W. CHILDERS, Mississippi
Jurisdiction: Agency oversight, review and analysis,
special investigations, food stamps, nutrition and consumer
programs, forestry in general, and forest reserves other than
those created from the public domain.
------
Subcommittee on General Farm Commodities and Risk Management
(Ratio 12-8)
LEONARD L. BOSWELL, Iowa, Chairman
JERRY MORAN, Kansas, Ranking Minority MemberSHALL, Georgia
TIMOTHY V. JOHNSON, Illinois BRAD ELLSWORTH, Indiana
SAM GRAVES, Missouri TIMOTHY J. WALZ, Minnesota
STEVE KING, Iowa KURT SCHRADER, Oregon
K. MICHAEL CONAWAY, Texas STEPHANIE HERSETH SANDLIN, South
ROBERT E. LATTA, Ohio Dakota
BLAINE LUETKEMEYER, Missouri BETSY MARKEY, Colorado
LARRY KISSELL, North Carolina
DEBORAH L. HALVORSON, Illinois
EARL POMEROY, North Dakota
TRAVIS W. CHILDERS, Mississippi
Jurisdiction: Program and markets related to cotton,
cottonseed, wheat, feed grains, soybeans, oilseeds, rice, dry
beans, peas, lentils, the Commodity Credit Corporation, risk
management including crop insurance and commodity exchanges.
------
Subcommittee on Horticulture and Organic Agriculture (Ratio 7-5)
DENNIS A. CARDOZA, California,
Chairman
JEAN SCHMIDT, Ohio, Ranking Minority Member.J. MASSA, New York
JERRY MORAN, Kansas JIM COSTA, California
TIMOTHY V. JOHNSON, Illinois KURT SCHRADER, Oregon
------ FRANK KRATOVIL, Jr., Maryland
------
Jurisdiction: Fruits and vegetables, honey and bees,
marketing and promotion orders, plant pesticides, quarantine,
adulteration of seeds, and insect pests, and organic
agriculture.
------
Subcommittee on Livestock, Dairy, and Poultry (Ratio 12-8)
DAVID SCOTT, Georgia, Chairman
RANDY NEUGEBAUER, Texas, Ranking Minority Memberalifornia
BOB GOODLATTE, Virginia STEVE KAGEN, Wisconsin
MIKE ROGERS, Alabama FRANK KRATOVIL, Jr., Maryland
STEVE KING, Iowa TIM HOLDEN, Pennsylvania
K. MICHAEL CONAWAY, Texas LEONARD L. BOSWELL, Iowa
ADRIAN SMITH, Nebraska JOE BACA, California
DAVID P. ROE, Tennessee DENNIS A. CARDOZA, California
BETSY MARKEY, Colorado
WALT MINNICK, Idaho
------
Jurisdiction: Livestock, dairy, poultry, meat, seafood and
seafood products, inspection, marketing, and promotion of such
commodities, aquaculture, animal welfare, and grazing.
------
Subcommittee on Rural Development, Biotechnology, Specialty Crops, and
Foreign Agriculture (Ratio 7-5)
MIKE McINTYRE, North Carolina,
Chairman
K. MICHAEL CONAWAY, Texas, Ranking Minority Member Alabama
DAVID P. ROE, Tennessee JIM MARSHALL, Georgia
GLENN THOMPSON, Pennsylvania HENRY CUELLAR, Texas
LARRY KISSELL, North Carolina
WALT MINNICK, Idaho
Jurisdiction: Peanuts, sugar, tobacco, marketing orders
relating to such commodities, rural development, farm security
and family farming matters, biotechnology, foreign agricultural
assistance, and trade promotion programs, generally.
b. committee jurisdiction
Under Rules adopted by the House of Representatives for the
111th Congress, the Committee on Agriculture's (hereinafter
also referred to as Committee) jurisdiction (See Rule X, clause
1 of the Rules of the House of Representatives) extended to--
(1) Adulteration of seeds, insect pests, and protection of
birds and animals in forest reserves.
(2) Agriculture generally.
(3) Agricultural and industrial chemistry.
(4) Agricultural colleges and experiment stations.
(5) Agricultural economics and research.
(6) Agricultural education extension services.
(7) Agricultural production and marketing and stabilization
of prices of agricultural products, and commodities
(not including distribution outside of the United
States).
(8) Animal industry and diseases of animals.
(9) Commodity exchanges.
(10) Crop insurance and soil conservation.
(11) Dairy industry.
(12) Entomology and plant quarantine.
(13) Extension of farm credit and farm security.
(14) Inspection of livestock, poultry, meat products, and
seafood and seafood products.
(15) Forestry in general, and forest reserves other than
those created from the public domain.
(16) Human nutrition and home economics.
(17) Plant industry, soils, and agricultural engineering.
(18) Rural electrification.
(19) Rural development.
(20) Water conservation related to activities of the
Department of Agriculture.
The revised edition of the Rules and Manual of the House of
Representatives for the 107th Congress (House Document No. 106-
320) provides the following concerning the Committee on
Agriculture:\1\
---------------------------------------------------------------------------
\1\References are to the volume and section of Hinds' (volumes I-V,
e.g., IV, 500) and Cannon's (volumes VI-VIII, e.g., VI, 400) Precedents
of the House of Representatives, and to the Congressional Record by
date and page (e.g., January 3, 1953, p. 500).
``This Committee was established in 1820 (IV, 4149).
In 1880 the subject of forestry was added to its
jurisdiction, and the Committee was conferred authority
to receive estimates of and to report appropriations
(IV, 4149). However, on July 1, 1920, authority to
report appropriations for the U.S. Department of
Agriculture was transferred to the Committee on
Appropriations (VII, 1860).
The basic form of the present jurisdictional
statement was made effective January 2, 1947, as a part
of the Legislative Reorganization Act of 1946 (60 Stat.
812). Subparagraph (7) was altered by the 93d Congress,
effective January 3, 1975, to include jurisdiction over
agricultural commodities (including the Commodity
Credit Corporation) while transferring jurisdiction
over foreign distribution and nondomestic production of
commodities to the Committee on International Relations
(H. Res. 988, 93d Cong., Oct. 8, 1974, p. 34470).
Nevertheless, the Committee has retained a limited
jurisdiction over measures to release CCC stocks for
such foreign distribution (Sept. 14, 1989, p. 20428).
Previously unstated jurisdictions over commodities
exchanges and rural development were codified effective
January 3, 1975.
The 104th Congress consolidated the Committee's
jurisdiction over inspection of livestock and meat
products to include inspection of poultry, seafood, and
seafood products, and added subparagraph (20) relating
to water conservation (sec. 202(a), H. Res. 6, Jan. 4,
1995, p. 464). Clerical and stylistic changes were
effected when the House recodified its rules in the
106th Congress (H. Res. 5. Jan. 6, 1999, p. 47).
The Committee has had jurisdiction of bills for
establishing and regulating the Department of
Agriculture (IV, 4150), for inspection of livestock and
meat products, regulation of animal industry, diseases
of animals (IV, 4154; VII, 1862), adulteration of
seeds, insect pests, protection of birds and animals in
forest reserves (IV, 4157; VII, 1870), the improvement
of the breed of horses, even with the cavalry service
in view (IV, 4158; VII, 1865), and in addition to the
Committee on Energy and Commerce, amending Horse
Protection Act to prevent the shipping, transporting,
moving, delivering, or receiving of horses to be
slaughtered for human consumption (July 13, 2006, p.
5270).
The Committee, having charge of the general subject
of forestry, has reported bills relating to timber, and
forest reserves other than those created from the
public domain (IV, 4160). The Committee on Natural
Resources, and not this Committee, has jurisdiction
over a bill to convey land that is part of a National
Forest created from the public domain (March 23, 2004,
p. 1344). It has also exercised jurisdiction of bills
relating to agricultural colleges and experiment
stations (IV, 4152), incorporation of agricultural
societies (IV, 4159), and establishment of a highway
commission (IV, 4153), to discourage fictitious and
gambling transactions in farm products (IV, 4161; VII,
1861), to regulate the transportation, sale and
handling of dogs and cats intended for use in research
and the licensing of animal research facilities (July
29, 1965, p. 18691); and to designate an agricultural
research center (May 14, 1995, p. 11070). The Committee
shares with the Committee on the Judiciary jurisdiction
over a bill comprehensively amending the Immigration
and Nationality Act and including food stamp
eligibility requirements for aliens (Sept. 19, 1995, p.
25533).
The House referred the President's message dealing
with the refinancing of farm-mortgage indebtedness to
the Committee, thus conferring jurisdiction (April 4,
1933, p. 1209).
The Committee has jurisdiction over a bill relating
solely to executive level position in the Department of
Agriculture (Mar. 2, 1976, p. 4958) and has
jurisdiction over bills to develop land and water
conservation programs on private and non-Federal lands
(June 7, 1976, p. 16768).''
Some of the specific areas in which the Committee on
Agriculture exercises its jurisdiction or that have been
created for the Committee by historical reference include:
(1) Public Law 480, Eighty-third Congress, the
restoration, expansion, and development of foreign
markets for United States agricultural products; and
the effect of the General Agreement on Tariffs and
Trade (and the North American Free Trade Agreement),
bilateral free trade agreements, the European
Community, and other regional economic agreements and
commodity marketing and pricing systems on United
States agriculture.
(2) All matters relating to the establishment and
development of an effective Foreign Agricultural
Service.
(3) Matters relating to rural development, including rural
telephone companies, farm credit banks, farm rural
housing loans, rural water supply, rural flood control
and water pollution control programs, and loans for
rural firehouses, community facilities, and businesses.
(4) Production and use of energy from agricultural and
forestry resources.
(5) Matters relating to the development, use, and
administration of the National Forests, including, but
not limited to, development of a sound program for
general public use of the National Forests consistent
with watershed protection and sustained-yield timber
management, study of the forest fire prevention and
control policies and activities of the Forest Service
and their relation to coordinated activities of other
Federal, state, and private agencies; Forest Service
land exchanges; and wilderness and similar use
designations applied to National Forest land.
(6) Price spreads of agricultural commodities between
producers and consumers.
(7) The formulation and development of improved programs
for agricultural commodities; matters relating to the
inspection, grading, and marketing of such commodities,
including seafood; and food safety generally.
(8) Matters relating to trading in futures contracts for
all commodities and similar instruments, including
commodity options and commodity leverage contracts.
(9) The administration and operation of agricultural
programs through state and county committees and the
administrative policies and procedures relating to the
selection, election, and operation of such committees.
(10) The administration and development of small watershed
programs under P.L. 566, Eighty-third Congress, as
amended, and the development of resource conservation
and development programs for rural areas.
(11) Programs of food assistance or distribution supported
in whole or in part by funds of the Department of
Agriculture, including but not limited to the food
stamp program and the commodity distribution program.
(12) Aquaculture programs of the Department of Agriculture.
(13) Sugar legislation, including import control programs
that stabilize domestic prices.
(14) All matters relating to pesticides, the Federal
Insecticide, Fungicide, and Rodenticide Act, as
amended, the Federal Environmental Pesticide Control
Act of 1972, the Federal Insecticide, Fungicide, and
Rodenticide Act Amendments of 1988, and the Food
Quality Protection Act of 1996, including, but not
limited to, the registration, marketing, and safe use
of pesticides, groundwater contamination, and the
coordination of the pesticide program under FIFRA with
food safety programs.
(15) Agricultural research programs, including, but not
limited to, the authorization of specific research
projects and agricultural biotechnology development
efforts.
(16) All matters relating to the Commodity Credit
Corporation Charter Act.
(17) Legislation relating to the control of the entry into
the United States of temporary, nonresident aliens for
employment in agricultural production.
(18) Legislation relating to the general operations and the
Organic Act of the Department of Agriculture, the
Commodity Credit Corporation, Federal Crop Insurance
Corporation, Farm Credit Administration, Farm Credit
System, Federal Agricultural Mortgage Corporation, and
Commodity Futures Trading Commission.
(19) Producer-funded research, promotion, and consumer and
industry information programs for agricultural
commodities.
(20) Legislation regarding reclamation water projects where
the pricing of water delivered by such projects is
affected by whether the water will be used in the
production of a crop for which an acreage reduction
program is in effect.
(21) Legislation regarding reclamation water projects for
which the Secretary of Agriculture is required to make
a determination regarding commodity availability prior
to the determination of the price to be charged for the
delivery of such project water.
(22) Legislation establishing the level of fees charged by
the Federal Government for the grazing of livestock on
Federal lands.
(23) Legislation governing the Federal regulation of
transactions involving swaps contracts, hybrid
financial instruments, and derivative securities and
financial products.
(24) Legislation regarding the Federal Reserve Board with
respect to its authority to regulate the establishment
of appropriate levels of margin on stock index futures
contracts.
The Committee also reviews and studies, on a continuing
basis, the current and prospective application, administration,
execution, and effectiveness of those laws, or parts of laws,
the subject matter of which is within the jurisdiction of the
Committee, and the organization and operation of the Federal
agencies and entities having responsibilities in or for the
administration and execution thereof. In addition, the
Committee, along with other standing Committees of the House,
has the function of reviewing and studying on a continuing
basis the effect or probable effect of tax and other fiscal and
monetary policies affecting subjects within their jurisdiction.
c. oversight plan
The Committee on Agriculture met on January 28, 2009 to
also fulfill the General Oversight Responsibility reporting
requirements of Rule X 2(d)(1) of the Rules of the House of
Representatives.
The following outline was prepared in consultation with the
Ranking Minority Member and approved by the Full Committee
which was forwarded to the Committee on Oversight and
Government Reform and the Committee on House Administration on
January 28, 2009:
Oversight Plan House Committee on Agriculture 111th Congress
The Committee expects to exercise appropriate oversight
activity with regard to the following issues:
2008 Farm Bill and Current Agricultural Conditions
Review the U.S. Department of Agriculture's (USDA)
implementation of the Food, Conservation, and Energy
Act of 2008 (FCEA) of 2008;
Review the current state of health of the U.S. farm
economy;
Review USDA's initial and subsequent implementation
of FCEA payment limit and adjusted gross income
provisions;
Review USDA's implementation of the Fair and
Equitable Tobacco Reform Act of 2004;
Review USDA's implementation of Improper Payments
Information Act of 2002;
Review the Farm Service Agency's (FSA) management
controls for Finality Rule and equitable relief
decisions;
Review the impact of weather conditions on crop
production;
Review USDA's activities regarding implementation of
the U.S. Warehouse Act;
Review of market situation, including impact of crop
reports and projections;
Review colony collapse disorder and other long term
threats to pollinator health on specialty crop
production;
Review USDA's implementation of the U.S. Grain
Standards Act; and
Review the increase in agribusiness consolidation.
Energy
Review USDA's effort to promote the utilization of
on-farm generated electricity;
Review activities funded by the Biomass Research and
Development Act (BRDA) and input from the external BRDA
Advisory Board;
Review availability of agriculture and forestry
feedstocks for renewable energy production;
Review current status of research on energy crops
and feedstocks;
Review the availability of biofuel pumps and
approved fuels;
Assess implementation of energy programs authorized
in FCEA;
Review current provisions in existing law that
support agriculture-based energy production and use;
Review implementation of the Biobased Products
Program;
Review of the roles of USDA and its agencies in
promoting the reliance on renewable energy sources;
Review the implementation of the Renewable Fuels
Standard (RFA); and
Review the current status of energy infrastructure
and the ability to get electricity to the electric
power grid.
Conservation and the Environment
Review the impact of regulatory activities carried
out pursuant to the Endangered Species Act (ESA), or
any proposed legislative changes to such Act, on
agricultural producers;
Review the impact of the Administration's regulatory
activity relative to methyl bromide on production of
agriculture in the U.S.;
Review of EPA's resource needs as they pertain to
the collection of pesticide user fees;
Review any proposed legislation to implement the
Stockholm Convention on Persistent Organic Pollutants,
the Protocol on Persistent Organic Pollutants to the
Convention on Long-Range Transboundary Air Pollution,
and the Rotterdam Convention on the Prior Informed
Consent Procedure for Certain Hazardous Chemicals and
Pesticides in International Trade, Review the
International Treaty on Plant Genetic Resources for
Food and Agriculture;
Review budget and program activities of the Natural
Resource Conservation Service (NRCS), including
staffing shortages;
Review NRCS Fiscal Year 2008 financial statement;
Review implementation of all of USDA's conservation
programs;
Review of EPA's rule on permit trading under the
Clean Water Act (CWA) and its potential benefits to
U.S. agriculture;
Review of potential impacts of EPA's Clean Air Act
(CAA) regulatory program on U.S. agriculture;
Review ongoing discussions and potential
consequences for American agriculture under the United
Nations Climate Change Conference, including the
upcoming conference in Copenhagen, Denmark;
Review EPA's implementation of the Food Quality
Protection Act (FQPA), FIFRA and Pesticide Registration
Improvement Renewal Act (PRIA II); Review the impact of
litigation and rulemaking concerning FIFRA, ESA, CAA,
CWA, the Comprehensive Environmental Response,
Compensation and Liability Act (CERCLA) and the
Emergency Planning and Community Right to Know Act
(EPCRA) and for impacts agricultural operations;
Review the EPA's regulatory actions in regard to
pesticide evaluations;
Review of EPA's regulation of Animal Feeding
Operations;
Review of the non-emergency haying and grazing
provisions of the Conservation Reserve Program (CRP);
Review of the operation of the Resource,
Conservation and Development Program;
Review of easement programs and Department of
Transportation and Department of Justice regulations;
and
Review of Total Maximum Daily Load strategies and
impacts on production agriculture.
Federal Crop Insurance and Risk Management
Review USDA's implementation of crop insurance
provisions of the FCEA;
Review the effectiveness of the Supplemental Revenue
Assistance Payments Program;
Review the role and effectiveness of the Federal
Crop Insurance Program;
Review USDA's and the Risk Management Agency's (RMA)
administration and oversight of the Federal Crop
Insurance Program;
Review the availability of crop insurance as a risk
management tool;
Review USDA's activities designed to find and reduce
crop insurance program waste, fraud, and abuse;
Review RMA's combination of revenue protection crop
insurance programs;
Review the operations of the Commodity Futures
Trading Commission (CFTC);
Review the growing consolidation and
internationalization of futures exchange trading;
Review market machinations for exchange traded
energy and agricultural future products;
Review Over-the-Counter (OTC) trading and its impact
on markets;
Review enforcement and oversight capabilities of the
CFTC both domestically and internationally; and
Review the role of the CFTC in light of potential
climate change legislation.
Agriculture Trade and International Food Aid
Review ongoing multilateral, regional, and bilateral
trade negotiations (including WTO accession agreements)
to assess their potential impact on U.S. agriculture;
Review implementation of existing trade agreements
and commitments and proposed new trade agreements and
commitments to determine:
(1) whether they are consistent with current U.S. law;
(2) whether they will promote economic development in
rural areas of the U.S.;
(3) their impact or potential impact on current
production of import sensitive agricultural
commodities, and on exports of U.S. agricultural
products; and
(4) their impact or potential impact on the overall
competitiveness of the U.S. agricultural sector,
including the production, processing and distribution
of agricultural products.
Monitor existing trade agreements to ensure trading
partners are meeting obligations and enforcing trade
commitments;
Review farm export programs to determine how well
they are promoting the interests of U.S. agriculture
and examine proposals to improve, modify or expand such
programs;
Assess U.S. food aid programs to determine their
impact or potential impact on the reduction of world
hunger. In particular, the Committee will examine the
potential impact of multilateral trade negotiations on
the effectiveness of U.S. food aid programs; and
Address sanitary and phytosanitary (SPS) barriers
and other technical barriers to U.S. agricultural
exports and examine USDA efforts to eliminate such
barriers.
Agricultural Research and Promotion
Review implementation of biosecurity protocols at
USDA Agricultural Research Service (ARS) laboratories;
Review USDA's implementation of research, education
and extension programs authorized in FCEA;
Review the administration of the ARS research
stations and worksites;
Review USDA's continuing ability to conduct foreign
animal disease research, training and diagnostic
programs at the National Bio and Agro-Defense Facility
following the transfer of the center to the Department
of Homeland Security;
Assess Federal efforts to facilitate research and
development of aquacultural enterprises, specifically
focusing on the activities of the Joint Committee on
Aquaculture;
Review implementation of USDA's regulation on
organic standards;
Review implementation of USDA collection of organic
production and market data;
Review implementation of National Institute of Food
and Agriculture (NIFA);
Review coordination between ARS, Economic Research
Service (ERS), NIFA and action agencies in USDA such as
NRCS and FSA in order to prevent duplicative research;
Review operation of the National Agricultural
Research, Extension, Education, and Economics Advisory
Board;
Review USDA's efforts to expand research and
development of pathogen reduction technologies;
Evaluate the current mix of research funding
mechanisms to ensure maximum benefits from these
investments to producers, processors and consumers;
Review administration of USDA's agricultural
marketing and promotion programs;
Review of coordination between USDA and DOE on
energy research programs;
Review of Congressional appropriation process and
implications on research funding under ARS, ERS, NASS
and NIFA;
Review of ARS, ERS, NASS and NIFA national program
priorities;
Oversight of research grant process to coordinate
and prevent overlapping research; and
Review the potential for research and technology
transfer to address the needs of both the biofuels and
livestock industries.
Biotechnology
Review current regulations and research regarding
animal and plant biotechnology;
Review the Food and Drug Administration's (FDA)
findings regarding cloned animal products and
regulation of genetically engineered animals;
Assess USDA's efforts to develop and promote
benefits of biotechnology for increasing agricultural
productivity and combating hunger globally; and
Review USDA's management and controls over incidents
involving unapproved release of biotechnology-derived
material.
U.S. Forest Service Administration
Review U.S. Forest Service (USFS) budget, with
special attention to land acquisition and easement
programs;
Continue to monitor the effectiveness and efficiency
of the Forest Service fire management program,
including the impact of hazardous fuels management,
forest health efforts and fire preparedness;
Review the impact of fire expenses on other USFS
program delivery; and
Assess the use of research funds to inform on a
long-term basis, sustainable forest practices.
Dairy
Review options to improve the efficiency and
effectiveness of dairy programs;
Review efficiency of Federal Market Order System;
Review implementation of the Milk Income Loss
Contract (MILC) Program; and
Review implementation of the Milk Regulatory Equity
Act.
Outreach and Civil Rights
Review implementation of Section 14012 of the FCEA;
Review the implementation of the Office of Advocacy
and Outreach;
Monitor USDA's outreach efforts to small and
minority farmers/ranchers;
Review of the operations of the office of the
Assistant Secretary for Civil Rights;
Review of the delivery of USDA services and outreach
efforts on Indian reservations and tribal lands;
Review current status of Agricultural Census and
efforts to reach undercounted farmers and ranchers; and
Review participation of minority farmers in FSA
County/Local Committees as well as outreach to increase
participation in County Committee elections.
USDA General Administration
Review confidentiality of information provided to
USDA by agricultural producers;
Review USDA's field office structure for the purpose
of delivering commodity, conservation, energy and rural
development programs; and
Review the administrative structure of USDA for
effectiveness and additional efficiencies.
Farm Credit, Rural Development, and the Rural Economy
Review Farm Credit Administration's (FCA) regulatory
program and activities regarding the Farm Credit System
(FCS) to assure the FCS' safety and soundness;
Review of Farmer Mac activities and programs;
Review of Beginning Farmer education efforts in FSA
loan programs and graduation efforts;
Review of FSA credit programs and participation;
Review of the Rural Electrification Act (REA);
Review of the farm economy and access to credit;
Review implementation of rural development policies
and authorities contained in FCEA and the Consolidated
Farm and Rural Development Act:
Oversight of the USDA's Rural Broadband Access
Loan and Loan Guarantee Program;
Oversight of new Rural Microentrepreneur
Assistance Program;
Oversight of the implementation of the USDA's
Telecommunications Programs; and
Review the status of the Rural Telephone Bank;
Assess state of rural water systems and
effectiveness of Federal funding to build and upgrade
those systems;
Assess rural infrastructure and business needs and
effectiveness of USDA programs targeted to those needs;
Review of agriculture lending practices;
Review of definition of ``rural'' under rural
development programs; and
Review of rural development loan programs and
default rates.
USDA Food and Nutrition Programs
Review food and nutrition programs including the
Supplemental Nutrition Assistance Program (SNAP), fruit
and vegetable initiatives, the Emergency Food
Assistance Program (TEFAP), the Food Distribution on
Indian Reservations (FDPIR) and other commodity
distribution programs;
Assess the level of success and participation by
states in SNAP and determine barriers to expanded SNAP
participation;
Review buying patterns of SNAP recipients and the
availability of healthy foods with an emphasis on
isolated rural and urban areas;
Review efforts by state SNAP administrators to
modernize and streamline their programs; and
Review the Community Food Project Program to ensure
cooperative grants are working.
Food Safety
Review USDA's administration of meat and poultry
inspection laws and the FDA's food inspection
activities to ensure the development of scientifically
sound systems for food safety assurance;
Review USDA's implementation of the new catfish
inspection program;
Review USDA's efforts to educate consumers regarding
safe food handling practices and streamline the
assessment and approval of food safety technologies;
Review implementation of new protocols for meat,
poultry, eggs, or seafood safety inspection; and
Review USDA's enforcement of the Humane Methods of
Slaughter Act and humane handling regulations.
Plant and Animal Health
Review enforcement of the Animal Welfare Act;
Assess Federal efforts to reduce threats to human,
animal, and plant health due to predatory and invasive
species; and
Assess the national animal identification program
system.
Livestock Marketing
Assess the effectiveness of the Grain Inspection,
Packers and Stockyards Administration (GIPSA) in
determining market manipulation in the livestock
industry;
Review structural changes in agribusiness and the
potential cost and benefits for agricultural producers;
and
Review the USDA's mandatory livestock price
reporting system.
Homeland and Agricultural Security
Oversight of USDA's preparedness against terrorist
threats to agriculture production; and
Review of agriculture inspection activities under
the Department of Homeland Security.
Miscellaneous
Review implementation of the Specialty Crop
Competitiveness Act;
Review of the impact of transportation
infrastructure issues on agriculture and forestry;
Review USDA's implementation and enforcement of the
country of origin labeling rule; and
Assess operation of the Fruit and Vegetable (FAV)
planting prohibition.
Consultation With Other Committees To Reduce Duplication
With Natural Resources Committee on forestry issues
and other public land issues;
With Science Committee on Research;
With Ways and Means and Education and Labor on
nutrition programs;
With Ways and Means on trade issues;
With Homeland Security on importation of animal and
plant material;
With Judiciary on immigrant agricultural labor;
With Energy and Commerce on food safety and biomass
energy programs both existing and new; and
With any other committee as appropriate.
II. Committee Activities During the 111th Congress
a. main legislative activities
The Committee on Agriculture reported or otherwise
considered a variety of bills in the 111th Congress covering
many of the diverse areas within its jurisdictional interests.
Some of the major activities of the Committee during the
111th Congress included the following:
An Ambitious Agenda for the House Agriculture Committee
The Agriculture Committee approached its business in
an open, transparent approach and maintained the strong
bipartisan tradition of the Committee.
During the 111th Congress, the House Agriculture
Committee held 75 Committee hearings and nine business
meetings.
The Committee heard testimony from Administration
officials on 66 occasions, including 50 appearances by
U.S. Department of Agriculture representatives, five
from the Commodities Futures Trading Commission, two
from the U.S. Food and Drug Administration, two from
the Department of Commerce, two from the Securities
Exchange Commission, one from the Department of
Homeland Security, one from the Department of the
Treasury, one from the Department of Energy and one
from the Environmental Protection Agency.
Additional testimony was offered by university
researchers, nonprofit organizations, consumer groups,
trade groups, and farmers and ranchers from across the
United States. Additional testimony was offered by
university researchers, nonprofit organizations,
consumer groups, trade groups, and farmers and ranchers
from across the United States.
Preparing to Write the 2012 Farm Bill
The House Agriculture Committee held 16 farm bill
hearings to prepare to write the 2012 Farm Bill.
Hearings have been held in Washington, D.C. and across
the country in nine different states.
The Agriculture Committee heard that in general, the
2008 Farm Bill is working well for most farmers and
ranchers, although many witnesses suggested that
efforts to simplify and expand access to farm bill
programs would be helpful.
While the current farm bill is popular, Chairman
Peterson cautioned that there will be no new money
available to write the 2012 Farm Bill, so we need to be
sure that we are spending the money we have in our
budget in the wisest and most effective way possible.
He asked farm bill stakeholders to take a look at the
current programs and to see if there are ways that we
can better use the funding available to provide a
safety net that will work for farmers and ranchers.
Advancing Financial Reform Legislation
The Agriculture Committee played a leading role in
the successful passage of H.R. 4173--The Wall Street
Reform & Consumer Protection Act, which was signed into
law on July 21, 2010.
The Agriculture Committee was very involved in
developing the financial reform legislation,
particularly provisions that address increased
volatility and speculation in the derivatives markets
and that strengthen oversight and increase transparency
in the markets for futures, options and over-the-
counter products and swaps.
The process of drafting the Agriculture Committee's
derivatives legislation included numerous opportunities
for Administration officials, stakeholders and
interested parties to provide input to the Committee on
the issue. The full Committee and the Subcommittee on
General Farm Commodities and Risk Management held six
hearings on the issue this year, including one joint
hearing with the House Financial Services Committee.
The Agriculture Committee approved two bipartisan,
reform-minded measures (H.R. 977 in February 2009 and
H.R. 3795 in October 2009) to address financial
derivatives. Both bills passed the Committee by voice
vote, and provisions from those bills were included in
the final financial reform law that was enacted.
The Committee's actions on financial markets reform
built on the efforts started during the 110th Congress
when the Committee held five oversight hearings to
review concerns related to commodity and energy markets
and derivatives trading. Those hearings were held both
before and after the 2008 credit and financial crisis,
in which derivatives played a contributing role in the
crisis.
Mandatory Price Report Act
On July 29, 2010 the Committee passed legislation
that would authorize the U.S. Department of Agriculture
(USDA) to produce national reports on marketing of
cattle, swine, lambs, and products of such livestock
including the price and volume of wholesale pork cuts
through Fiscal Year 2015. Current authority to produce
a similar report terminates September 30, 2010. The
bill also would require the Secretary of Agriculture to
establish an electronic reporting system for dairy
product information.
The Senate companion bill was signed into Public Law
September 27, 2010.
Expanding Agricultural Trade and Travel to Cuba
On June 30, 2010 the Committee passed historic
legislation that will greatly expand trade of U.S.
agriculture products and travel to Cuba.
H.R. 4645, the Travel Restriction Reform and Export
Enhancement Act, is a bipartisan bill introduced by
Chairman Peterson and cosponsored by 71 Members of
Congress. The bill passed the Committee by a vote of
25-20.
Approximately 140 groups have expressed strong
support for H.R. 4645, including the U.S. Chamber of
Commerce, National Farmers Union, American Farm Bureau
Federation, and Human Rights Watch. The House
Agriculture Committee also received a letter signed by
more than 70 pro-democracy Cuban leaders that strongly
encouraged passage of H.R. 4645.
Texas A&M University has released a study on the
potential impact of H.R. 4645 on U.S. agriculture and
found, ``If U.S. travel and financial restrictions are
removed, up to $365 million/year in additional U.S.
exports could result, requiring $1.1 billion in
business activity and 6,000 new jobs.'' The study also
included estimated impact on several U.S. states,
including Texas, Minnesota, North Carolina, Oklahoma,
Arkansas, California, Illinois, Louisiana, Missouri,
Nebraska, New York, Virginia, and Wisconsin. Study
information is available online at: http://
cnas.tamu.edu/.
Encouraging Energy Efficiency Projects in Rural Communities
On July 14, 2010 the Agriculture Committee passed
the Rural Energy Savings Program Act (H.R. 4785) to
encourage energy efficiency projects in rural
communities.
The bill passed the House of Representatives on
September 16, 2010 by a recorded vote 240 yeas to 172
nays.
The bill authorizes the U.S. Department of
Agriculture's (USDA) Rural Utilities Service to make
interest-free loans to eligible entities, including
rural electric cooperatives, which will subsequently
make loans to qualified consumers to implement energy
efficiency measures.
The program will provide funds to retrofit
residences and small businesses with structural
improvements and investments in cost-effective,
commercial off-the-shelf technologies to reduce energy
costs and consumption. Consumers will repay the loans
through their electricity bills at an interest rate
below three percent.
Climate Change Legislation
In March 2009, the Agriculture Committee created the
climate change questionnaire and distributed it to over
400 organizations to gather input on proposals to
reduce greenhouse gas emissions. For years, farmers,
ranchers, and forest landowners have been participating
in agricultural programs that result in carbon
reduction, and the goal of the questionnaire was to
identify ways that these practices could be recognized
and incorporated into climate change legislation. The
questionnaire was sent to a diverse group, including
commodity, conservation, forestry, research, energy,
business, and nonprofit interests and was also provided
to the public.
The bill passed the House of Representatives on June
26, 2009 by a recorded vote of 219 yeas to 212 nays.
The bill will allow farmers, ranchers and forestland
owners to fully participate in a market-based carbon
offset program, earning income for activities they
undertake to address global climate change.
Contributing to Food Safety Legislation
The Committee worked with the authors of H.R. 2749,
the Food Safety Enhancement Act to ensure that
livestock and grain producers are not subject to
unnecessary regulations and that producers selling
their products directly to consumers and other farmers
are protected from excessive fees and requirements.
Provisions negotiated by Chairman Peterson ensure that
the knowledge and expertise of USDA will be utilized
when drafting new food safety standards.
Monitoring the State of the Farm Economy
The Committee has held hearings to review the state
of the farm economy, credit conditions in rural
America, current conditions for rural entrepreneurship
and business development, economic conditions facing
the pork industry, and several hearings on economic
conditions in the dairy industry.
Ensuring that Rural Broadband Continues to Grow
The Committee has held two hearings in the 111th
Congress to review USDA's role in expanding broadband
deployment to rural areas. The American Recovery and
Reinvestment Act of 2009 provided $7.2 billion
primarily for broadband grant programs, with $2.5
billion of that amount going to broadband programs at
USDA's Rural Utilities Service. These grants, loans,
and grant/loan combinations awarded under the Recovery
Act are intended to support new broadband
infrastructure in underserved rural areas, fueling
short term job creation and the long term benefits that
access to high-speed telecommunications services can
provide. The Committee has examined USDA's Recovery Act
awards to ensure that areas with the greatest needs are
prioritized.
Exploring the Relationship between Nutrition and Health
Since 2010, the Committee has held four hearings to
explore the link between nutrition programs and health,
including the incidence of hunger and obesity in the
United States and innovative programs to promote
wellness. Witnesses at these hearings identified two
major factors that must be addressed when combating
obesity--nutrition education and access to healthy
foods.
Overseeing and Strengthening Conservation Programs
In the 111th Congress, the Committee has held five
hearings regarding conservation program use and
implementation in rural America.
On July 1, 2010 the Committee heard testimony from
Technical Assistance Providers and USDA on the status
of implementing current conservation programs.
b. statistical summary of activities
(1) Statistics on bills referred to the Committee on
Agriculture
Number of bills referred:
House bills................................................ 173
Senate bills............................................... 1
House joint resolutions.................................... 0
House concurrent resolutions............................... 4
Senate joint resolutions................................... 0
Senate concurrent resolutions.............................. 1
House resolutions.......................................... 19
------------
Total.................................................. 198
(2) Disposition of Bills Containing Items Under the
Jurisdiction of the Committee on Agriculture
Bills enacted into law..................................... 5
Bills acted on by the Committee included in other bills 3
that became law...........................................
Bills vetoed............................................... 0
Bills acted on by both Houses, but not enacted............. 4
Bills acted on by the House but not the Senate............. 20
Concurrent Resolutions approved............................ 0
Bills reported to the House but not considered............. 2
Bills ordered reported, but not reported................... 4
Bills defeated in the House................................ 0
(3) Statistics on hearings and markups:
----------------------------------------------------------------------------------------------------------------
Open business Washington
meetings hearings Field hearings Total
----------------------------------------------------------------------------------------------------------------
Full Committee.................................. 9 13 10 32
Subcommittees:
General Farm Commodities and Risk Management.. 0 11 0 11
Livestock, Dairy, and Poultry................. 0 8 0 8
Rural Development, Biotechnology, Specialty 0 8 0 8
Crops, and Foreign Agriculture...............
Conservation, Credit, Energy and Research..... 0 13 0 13
Department Operations, Oversight, Nutrition, 0 7 3 10
and Forestry.................................
Horticulture and Organic Agriculture.......... 0 3 0 3
---------------------------------------------------------------
Total....................................... 9 63 13 85
----------------------------------------------------------------------------------------------------------------
c. digest of bills within the jurisdiction of the committee on which
action has been taken
1. Bills Enacted into Law
Public Law 111-101 (H.R. 1713)
To name the South Central Agricultural Research Laboratory
of the Department of Agriculture in Lane, Oklahoma, and the
facility of the United States Postal Service located at 310
North Perry Street in Bennington, Oklahoma, in honor of former
Congressman Wesley ``Wes'' Watkins (approved November 30,
2009).
Designates: (1) the South Central Agricultural Research
Laboratory of the Department of Agriculture in Lane, Oklahoma,
as the ``Wes Watkins Agricultural Research Laboratory''; and
(2) the United States Postal Service facility located at 310
North Perry Street, Bennington, Oklahoma, as the ``Wes Watkins
Post Office.''
Legislative History: H.R. 1713 was introduced by
Representative Dan Boren on March 25, 2009. The bill was
referred to the Committee on Agriculture, in addition to the
Committee on House Oversight and Government Reform. On
September 16, 2009 the bill passed the House under suspension
of the rules by a voice vote. On November 4, 2009, the Senate
Homeland Security and Governmental Affairs Committee reported
the bill without amendment and without a written report. The
bill passed the Senate without amendment by Unanimous Consent
and was cleared for the White House on November 9, 2009. The
bill was presented to the President on November 20, 2009 and on
November 30, 2009 it was signed and became P.L. No. 111-101.
Public Law 111-203 (H.R. 4173)
A bill to promote the financial stability of the United
States by improving accountability and transparency in the
financial system, to end ``too big to fail'', to protect the
American taxpayer by ending bailouts, to protect consumers from
abusive financial services practices, and for other purposes
(approved July 21, 2010).
Consumer Protections with Authority and Independence:
Creates a new independent watchdog, housed at the Federal
Reserve, with the authority to ensure American consumers get
the clear, accurate information they need to shop for
mortgages, credit cards, and other financial products, and
protect them from hidden fees, abusive terms, and deceptive
practices.
Ends Too Big to Fail Bailouts: Ends the possibility that
taxpayers will be asked to write a check to bail out financial
firms that threaten the economy by: creating a safe way to
liquidate failed financial firms; imposing tough new capital
and leverage requirements that make it undesirable to get too
big; updating the Fed's authority to allow system-wide support
but no longer prop up individual firms; and establishing
rigorous standards and supervision to protect the economy and
American consumers, investors and businesses.
Advance Warning System: Creates a council to identify and
address systemic risks posed by large, complex companies,
products, and activities before they threaten the stability of
the economy.
Transparency & Accountability for Exotic Instruments:
Eliminates loopholes that allow risky and abusive practices to
go on unnoticed and unregulated--including loopholes for over-
the-counter derivatives, asset-backed securities, hedge funds,
mortgage brokers and payday lenders.
Executive Compensation and Corporate Governance: Provides
shareholders with a say on pay and corporate affairs with a
non-binding vote on executive compensation and golden
parachutes.
Protects Investors: Provides tough new rules for
transparency and accountability for credit rating agencies to
protect investors and businesses.
Enforces Regulations on the Books: Strengthens oversight
and empowers regulators to aggressively pursue financial fraud,
conflicts of interest and manipulation of the system that
benefits special interests at the expense of American families
and businesses.
The Consumer Financial Protection Bureau:
Independent Head: Led by an independent director
appointed by the President and confirmed by the Senate.
Independent Budget: Dedicated budget paid by the
Federal Reserve system.
Independent Rule Writing: Able to autonomously write
rules for consumer protections governing all financial
institutions--banks and non-banks--offering consumer
financial services or products.
Examination and Enforcement: Authority to examine
and enforce regulations for banks and credit unions
with assets of over $10 billion and all mortgage-
related businesses (lenders, servicers, mortgage
brokers, and foreclosure scam operators), payday
lenders, and student lenders as well as other non-bank
financial companies that are large, such as debt
collectors and consumer reporting agencies. Banks and
Credit Unions with assets of $10 billion or less will
be examined for consumer complaints by the appropriate
regulator.
Consumer Protections: Consolidates and strengthens
consumer protection responsibilities currently handled
by the Office of the Comptroller of the Currency,
Office of Thrift Supervision, Federal Deposit Insurance
Corporation, Federal Reserve, National Credit Union
Administration, the Department of Housing and Urban
Development, and Federal Trade Commission. Will also
oversee the enforcement of Federal laws intended to
ensure the fair, equitable and nondiscriminatory access
to credit for individuals and communities.
Able to Act Fast: With this Bureau on the lookout
for bad deals and schemes, consumers won't have to wait
for Congress to pass a law to be protected from bad
business practices.
Educates: Creates a new Office of Financial
Literacy.
Consumer Hotline: Creates a national consumer
complaint hotline so consumers will have, for the first
time, a single toll-free number to report problems with
financial products and services.
Accountability: Makes one office accountable for
consumer protections. With many agencies sharing
responsibility, it's hard to know who is responsible
for what, and easy for emerging problems that haven't
historically fallen under anyone's purview, to fall
through the cracks.
Works with Bank Regulators: Coordinates with other
regulators when examining banks to prevent undue
regulatory burden. Consults with regulators before a
proposal is issued and regulators could appeal
regulations they believe would put the safety and
soundness of the banking system or the stability of the
financial system at risk.
Clearly Defined Oversight: Protects small business
from unintentionally being regulated by the CFPB,
excluding businesses that meet certain standards.
The Financial Stability Oversight Council:
Expert Members: Made up of ten Federal financial
regulators and an independent member and five nonvoting
members, the Financial Stability Oversight Council will
be charged with identifying and responding to emerging
risks throughout the financial system. The Council will
be chaired by the Treasury Secretary and include the
Federal Reserve Board, SEC, CFTC, OCC, FDIC, FHFA,
NCUA, the new Consumer Financial Protection Bureau, and
an independent appointee with insurance expertise. The
five nonvoting members include OFR, FIO, and state
banking, insurance, and securities regulators.
Tough to Get Too Big: Makes recommendations to the
Federal Reserve for increasingly strict rules for
capital, leverage, liquidity, risk management and other
requirements as companies grow in size and complexity,
with significant requirements on companies that pose
risks to the financial system.
Regulates Nonbank Financial Companies: Authorized to
require, with a \2/3\ vote and vote of the chair, that
a nonbank financial company be regulated by the Federal
Reserve if the council believe there would be negative
effects on the financial system if the company failed
or its activities would pose a risk to the financial
stability of the U.S.
Break Up Large, Complex Companies: Able to approve,
with a \2/3\ vote and vote of the chair, a Federal
Reserve decision to require a large, complex company,
to divest some of its holdings if it poses a grave
threat to the financial stability of the United
States--but only as a last resort.
Technical Expertise: Creates a new Office of
Financial Research within Treasury to be staffed with a
highly sophisticated staff of economists, accountants,
lawyers, former supervisors, and other specialists to
support the council's work by collecting financial data
and conducting economic analysis.
Make Risks Transparent: Through the Office of
Financial Research and member agencies the council will
collect and analyze data to identify and monitor
emerging risks to the economy and make this information
public in periodic reports and testimony to Congress
every year.
No Evasion: Large bank holding companies that have
received TARP funds will not be able to avoid Federal
Reserve supervision by simply dropping their banks.
(the ``Hotel California'' provision)
Capital Standards: Establishes a floor for capital
that cannot be lower than the standards in effect today
and authorizes the Council to impose a 15:1 leverage
requirement at a company if necessary to mitigate a
grave threat to the financial system.
Limiting Large, Complex Financial Companies and Preventing
Future Bailouts No Taxpayer Funded Bailouts: Clearly states
taxpayers will not be on the hook to save a failing financial
company or to cover the cost of its liquidation.
Discourage Excessive Growth & Complexity: The
Financial Stability Oversight Council will monitor
systemic risk and make recommendations to the Federal
Reserve for increasingly strict rules for capital,
leverage, liquidity, risk management and other
requirements as companies grow in size and complexity,
with significant requirements on companies that pose
risks to the financial system.
Volcker Rule: Requires regulators implement
regulations for banks, their affiliates and holding
companies, to prohibit proprietary trading, investment
in and sponsorship of hedge funds and private equity
funds, and to limit relationships with hedge funds and
private equity funds. Nonbank financial institutions
supervised by the Fed also have restrictions on
proprietary trading and hedge fund and private equity
investments. The Council will study and make
recommendations on implementation to aid regulators.
Extends Regulation: The Council will have the
ability to require nonbank financial companies that
pose a risk to the financial stability of the United
States to submit to supervision by the Federal Reserve.
Payment, Clearing, and Settlement Regulation:
Provides a specific framework for promoting uniform
risk-management standards for systemically important
financial market utilities and systemically important
payment, clearing, and settlement activities conducted
by financial institutions.
Funeral Plans: Requires large, complex financial
companies to periodically submit plans for their rapid
and orderly shutdown should the company go under.
Companies will be hit with higher capital requirements
and restrictions on growth and activity, as well as
divestment, if they fail to submit acceptable plans.
Plans will help regulators understand the structure of
the companies they oversee and serve as a roadmap for
shutting them down if the company fails. Significant
costs for failing to produce a credible plan create
incentives for firms to rationalize structures or
operations that cannot be unwound easily.
Liquidation: Creates an orderly liquidation
mechanism for FDIC to unwind failing systemically
significant financial companies. Shareholders and
unsecured creditors bear losses and management and
culpable directors will be removed.
Liquidation Procedure: Requires that Treasury, FDIC
and the Federal Reserve all agree to put a company into
the orderly liquidation process to mitigate serious
adverse effects on financial stability, with an up
front judicial review.
Costs to Financial Firms, Not Taxpayers: Taxpayers
will bear no cost for liquidating large, interconnected
financial companies. FDIC can borrow only the amount of
funds to liquidate a company that it expects to be
repaid from the assets of the company being liquidated.
The government will be first in line for repayment.
Funds not repaid from the sale of the company's assets
will be repaid first through the claw back of any
payments to creditors that exceeded liquidation value
and then assessments on large financial companies, with
the riskiest paying more based on considerations
included in a risk matrix
Federal Reserve Emergency Lending: Significantly
alters the Federal Reserve's 13(3) emergency lending
authority to prohibit bailing out an individual
company. Secretary of the Treasury must approve any
lending program, and such programs must be broad based
and not aid a failing financial company. Collateral
must be sufficient to protect taxpayers from losses.
Bankruptcy: Most large financial companies that fail
are expected to be resolved through the bankruptcy
process.
Limits on Debt Guarantees: To prevent bank runs, the
FDIC can guarantee debt of solvent insured banks, but
only after meeting serious requirements: \2/3\ majority
of the Board and the FDIC Board must determine there is
a threat to financial stability; the Treasury Secretary
approves terms and conditions and sets a cap on overall
guarantee amounts; the President activates an expedited
process for Congressional approval.
Reforming Federal Reserve:
Federal Reserve Emergency Lending: Limits the
Federal Reserve's 13(3) emergency lending authority by
prohibiting emergency lending to an individual entity.
Secretary of the Treasury must approve any lending
program, programs must be broad based, and loans cannot
be made to insolvent firms. Collateral must be
sufficient to protect taxpayers from losses.
Audit of the Federal Reserve: GAO will conduct a
one-time audit of all Federal Reserve 13(3) emergency
lending that took place during the financial crisis.
Details on all lending will be published on the Federal
Reserve website by December 1, 2010. In the future GAO
will have on-going authority to audit 13(3), emergency
lending, and discount window lending, and open market
transactions.
Transparency--Disclosure: Requires the Federal
Reserve to disclose counterparties and information
about amounts, terms and conditions of 13(3) emergency
lending and discount window lending, and open market
transactions on an on-going basis, with specified time
delays.
Supervisory Accountability: Creates a Vice Chairman
for Supervision, a member of the Board of Governors of
the Federal Reserve designated by the President, who
will develop policy recommendations regarding
supervision and regulation for the Board, and will
report to Congress semi-annually on Board supervision
and regulation efforts.
Federal Reserve Bank Governance: GAO will conduct a
study of the current system for appointing Federal
Reserve Bank directors, to examine whether the current
system effectively represents the public, and whether
there are actual or potential conflicts of interest. It
will also examine the establishment and operation of
emergency lending facilities during the crisis and the
Federal Reserve banks involved therein. The GAO will
identify measures that would improve reserve bank
governance.
Election of Federal Reserve Bank Presidents:
Presidents of the Federal Reserve Banks will be elected
by class B directors--elected by district member banks
to represent the public--and class C directors--
appointed by the Board of Governors to represent the
public. Class A directors--elected by member banks to
represent member banks--will no longer vote for
presidents of the Federal Reserve Banks.
Limits on Debt Guarantees: To prevent bank runs, the
FDIC can guarantee debt of solvent insured banks, but
only after meeting serious requirements: \2/3\ majority
of the Federal Reserve Board and the FDIC board
determine there is a threat to financial stability; the
Treasury Secretary approves terms and conditions and
sets a cap on overall guarantee amounts; the President
initiates an expedited process for Congressional
approval.
Bringing Transparency and Accountability to the Derivatives
Market:
Closes Regulatory Gaps: Provides the SEC and CFTC
with authority to regulate over-the-counter derivatives
so that irresponsible practices and excessive risk-
taking can no longer escape regulatory oversight.
Central Clearing and Exchange Trading: Requires
central clearing and exchange trading for derivatives
that can be cleared and provides a role for both
regulators and clearing houses to determine which
contracts should be cleared.
Market Transparency: Requires data collection and
publication through clearing houses or swap
repositories to improve market transparency and provide
regulators important tools for monitoring and
responding to risks.
Financial safeguards: Adds safeguards to system by
ensuring dealers and major swap participants have
adequate financial resources to meet responsibilities.
Provides regulators the authority to impose capital and
margin requirements on swap dealers and major swap
participants, not end-users.
Higher standard of conduct: Establishes a code of
conduct for all registered swap dealers and major swap
participants when advising a swap entity. When acting
as counterparties to a pension fund, endowment fund, or
state or local government, dealers are to have a
reasonable basis to believe that the fund or
governmental entity has an independent representative
advising them.
Office of Minority and Women Inclusion:
At Federal banking and securities regulatory
agencies, the bill establishes an Office of Minority
and Women Inclusion that will, among other things,
address employment and contracting diversity matters.
The offices will coordinate technical assistance to
minority-owned and women-owned businesses and seek
diversity in the workforce of the regulators.
Mortgage Reform:
Require Lenders Ensure a Borrower's Ability to
Repay: Establishes a simple Federal standard for all
home loans: institutions must ensure that borrowers can
repay the loans they are sold.
Prohibit Unfair Lending Practices: Prohibits the
financial incentives for subprime loans that encourage
lenders to steer borrowers into more costly loans,
including the bonuses known as ``yield spread
premiums'' that lenders pay to brokers to inflate the
cost of loans. Prohibits pre-payment penalties that
trapped so many borrowers into unaffordable loans.
Establishes Penalties for Irresponsible Lending:
Lenders and mortgage brokers who don't comply with new
standards will be held accountable by consumers for as
high as 3 years of interest payments and damages plus
attorney's fees (if any). Protects borrowers against
foreclosure for violations of these standards.
Expands Consumer Protections for High-Cost
Mortgages: Expands the protections available under
Federal rules on high-cost loans--lowering the interest
rate and the points and fee triggers that define high
cost loans.
Requires Additional Disclosures for Consumers on
Mortgages: Lenders must disclose the maximum a consumer
could pay on a variable rate mortgage, with a warning
that payments will vary based on interest rate changes.
Housing Counseling: Establishes an Office of Housing
Counseling within HUD to boost homeownership and rental
housing counseling.
Raising Standards and Regulating Hedge Funds:
Fills Regulatory Gaps: Ends the ``shadow'' financial
system by requiring hedge funds and private equity
advisors to register with the SEC as investment
advisers and provide information about their trades and
portfolios necessary to assess systemic risk. This data
will be shared with the systemic risk regulator and the
SEC will report to Congress annually on how it uses
this data to protect investors and market integrity.
Greater State Supervision: Raises the assets
threshold for Federal regulation of investment advisers
from $30 million to $100 million, a move expected to
significantly increase the number of advisors under
state supervision. States have proven to be strong
regulators in this area and subjecting more entities to
state supervision will allow the SEC to focus its
resources on newly registered hedge funds.
New Requirements and Oversight of Credit Rating Agencies:
New Office, New Focus at SEC: Creates an Office of
Credit Ratings at the SEC with expertise and its own
compliance staff and the authority to fine agencies.
The SEC is required to examine Nationally Recognized
Statistical Ratings Organizations at least once a year
and make key findings public.
Disclosure: Requires Nationally Recognized
Statistical Ratings Organizations to disclose their
methodologies, their use of third parties for due
diligence efforts, and their ratings track record.
Independent Information: Requires agencies to
consider information in their ratings that comes to
their attention from a source other than the
organizations being rated if they find it credible.
Conflicts of Interest: Prohibits compliance officers
from working on ratings, methodologies, or sales;
installs a new requirement for NRSROs to conduct a 1
year look-back review when an NRSRO employee goes to
work for an obligor or underwriter of a security or
money market instrument subject to a rating by that
NRSRO; and mandates that a report to the SEC when
certain employees of the NRSRO go to work for an entity
that the NRSRO has rated in the previous twelve months.
Liability: Investors can bring private rights of
action against ratings agencies for a knowing or
reckless failure to conduct a reasonable investigation
of the facts or to obtain analysis from an independent
source. NRSROs will now be subject to ``expert
liability'' with the nullification of Rule 436(g) which
provides an exemption for credit ratings provided by
NRSROs from being considered a part of the registration
statement.
Right to Deregister: Gives the SEC the authority to
deregister an agency for providing bad ratings over
time.
Education: Requires ratings analysts to pass
qualifying exams and have continuing education.
Eliminates Many Statutory and Regulatory
Requirements to Use NRSRO Ratings: Reduces over-
reliance on ratings and encourages investors to conduct
their own analysis.
Independent Boards: Requires at least half the
members of NRSRO boards to be independent, with no
financial stake in credit ratings.
Ends Shopping for Ratings: The SEC shall create a
new mechanism to prevent issuers of asset backed-
securities from picking the agency they think will give
the highest rating, after conducting a study and after
submission of the report to Congress.
Gives Shareholders a Say on Pay and Creating Greater
Accountability:
Vote on Executive Pay and Golden Parachutes: Gives
shareholders a say on pay with the right to a non-
binding vote on executive pay and golden parachutes.
This gives shareholders a powerful opportunity to hold
accountable executives of the companies they own, and a
chance to disapprove where they see the kind of
misguided incentive schemes that threatened individual
companies and in turn the broader economy.
Nominating Directors: Gives the SEC authority to
grant shareholders proxy access to nominate directors.
Also requires directors to win by a majority vote in
uncontested elections. These requirements can help
shift management's focus from short-term profits to
long-term growth and stability.
Independent Compensation Committees: Standards for
listing on an exchange will require that compensation
committees include only independent directors and have
authority to hire compensation consultants in order to
strengthen their independence from the executives they
are rewarding or punishing.
No Compensation for Lies: Requires that public
companies set policies to take back executive
compensation if it was based on inaccurate financial
statements that don't comply with accounting standards.
SEC Review: Directs the SEC to clarify disclosures
relating to compensation, including requiring companies
to provide charts that compare their executive
compensation with stock performance over a 5 year
period.
Enhanced Compensation Oversight for Financial
Industry: Requires Federal financial regulators to
issue and enforce joint compensation rules specifically
applicable to financial institutions with a Federal
regulator.
Improvements to Bank and Thrift Regulations:
Volcker Rule: Implements a strengthened version of
the Volcker rule by not allowing a study of the issue
to undermine the prohibition on proprietary trading and
investing a banking entity's own money in hedge funds,
with a de minimis exception for funds where the
investors require some ``skin in the game'' by the
investment advisor--up to 3% of tier 1 capital in the
aggregate
Abolishes the Office of Thrift Supervision: Shuts
down this dysfunctional regulator and transfers
authorities mainly to the Office of the Comptroller of
the Currency, but preserves the thrift charter.
Stronger lending limits: Adds credit exposure from
derivative transactions to banks' lending limits.
Improves supervision of holding company
subsidiaries: Requires the Federal Reserve to examine
non-bank subsidiaries that are engaged in activities
that the subsidiary bank can do (e.g., mortgage
lending) on the same schedule and in the same manner as
bank exams, provides the primary Federal bank regulator
backup authority if that does not occur.
Intermediate Holding Companies: Allows use of
intermediate holding companies by commercial firms that
control grandfathered unitary thrift holding companies
to better regulate the financial activities, but not
the commercial activities.
Interest on business checking: Repeals the
prohibition on banks paying interest on demand
deposits.
Charter Conversions: Removes a regulatory arbitrage
opportunity by prohibiting a bank from converting its
charter (unless both the old regulator and new
regulator do not object) in order to get out from under
an enforcement action.
Establishes New Offices of Minority and Women
Inclusion at the Federal financial agencies.
Insurance:
Federal Insurance Office: Creates the first ever
office in the Federal Government focused on insurance.
The Office, as established in the Treasury, will gather
information about the insurance industry, including
access to affordable insurance products by minorities,
low- and moderate-income persons and underserved
communities. The Office will also monitor the insurance
industry for systemic risk purposes.