Rep. Austin Scott, Chairman of the House Agriculture Committee's Subcommittee on Horticulture, Research, Biotechnology and Foreign Agriculture, held a public hearing to review the impact of enforcement activities by the U.S. Department of Labor (DOL) on specialty crop growers. Specifically, Subcommittee Members addressed growing concerns that DOL is using the "Hot Goods" provision under the Fair Labor Standards Act of 1938 (FLSA) in an arbitrary manner against producers of perishable agricultural commodities without regard for the inevitable destruction of the product and significant economic hardship inflicted on farmers and their employees.
Subcommittee Examines Legislation to Clarify Congressional Intent of Dodd-Frank Act Provisions
Tamara Hinton, 202.225.0184
WASHINGTON – Today, Rep. K. Michael Conaway, Chairman of the House Agriculture Committee's Subcommittee on General Farm Commodities and Risk Management, held a public hearing to consider three pieces of legislation designed to mitigate unintended consequences of certain provisions of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and clarify the reach of new regulatory requirements to swaps activities that occur outside the U.S.
H.R. 3283, the Swap Jurisdiction Certainty Act would limit the extraterritorial scope of Title VII by providing a clear definition of U.S. person and non-U.S. person, and limit the application of Dodd-Frank to those activities that occur in the U.S, as Congress intended.
H.R. 1838 would modify Section 716 of the Dodd-Frank Act to ensure that the requirement for banks to "push out" certain swaps activities to separate affiliates does not increase risk to the system or drive up the costs of risk management tools for farmers and ranchers.
H.R. 4235, the Swap Data Repository & Clearinghouse Indemnification Correction Act of 2012 removes the indemnification provisions from sections 728 and 763 of the Dodd-Frank Act, and makes certain that U.S. and foreign regulators can share swaps data to increase market transparency and monitor for systemic risk.
"Getting Dodd-Frank right is more important than getting it done quickly. Examining the rulemaking process for errors, unclear instructions, or unintended consequences, and then fixing those mistakes is an essential part of our job. Today we heard about the consequences of the broad, extraterritorial approach to implementing Dodd-Frank that regulators are contemplating. This legislation will make it clear that Congress never intended for the CFTC to police the entire global swaps market," said Chairman K. Michael Conaway (R-TX).
"The financial market was created in the heartland to improve the commodity market, and preserve the value of bulk commodities and seasonal goods in the face of unforeseeable risk such as drought and flooding. This reliance and the integrity of our markets are critical to our nation for jobs, a healthy economy, and affordable food," said Ranking Member Leonard L. Boswell (D-IA).
Written testimony provided by the witnesses is linked below.
Mr. Charles A. Vice, President and Chief Operating Officer, IntercontinentalExchange, Atlanta, Georgia
Mr. Paul Saltzman, President of the Association, EVP and General Counsel of the Payments Company, The Clearing House, New York, New York
Mr. Keith Bailey, Managing Director, Fixed Income, Currencies and Commodities, Barclays Capital, New York, New York
Mr. Michael Bodson, Chief Operating Officer, Depository Trust and Clearing Corporation, New York, New York