Ken Buck

Mr. BUCK

Mr. BUCK. Madam Speaker, I rise today in support of the rule and the underlying legislation. The rule makes in order two bills reported favorably by the Committee on Financial Services. Both bills were the subject of multiple hearings before the Committee on Financial Services. Each bill was reported favorably by a bipartisan majority without amendment. The rule adopts the only two amendments that were offered to these bills. Madam Speaker, yesterday I had the privilege of being here on the floor debating three financial services bills, and I am back with two more today. Last night, the Senate took a significant step toward joining the House in producing a banking reform bill. The negative impacts of Dodd-Frank are enough to finally overcome even the Senate's inertia. Last year, the House Republicans passed our own plan to reform our banking system and regulate financial institutions in a smarter way. Ever since Dodd-Frank became law, our small town and community lenders have been hamstrung by regulations intended for large Wall Street banks. As is usually the case, Washington did not regulate in a manner that focused on bad actors or that differentiated between diverse financing institutions. Instead, Federal regulators stamped out one-size-fits-all regulations that have had negative impacts on our local community banks and credit unions. Under the House Republican plan, we correct this wrongheaded approach by forcing regulators to take into account the size and risk profiles of smaller institutions. The Financial CHOICE Act ensures the security of our financial institutions without creating a too-big-to-fail government support system and encouraging local banks and credit unions to invest in our communities. Over the past few months, we have put various components of the Financial CHOICE Act on the floor in order to demonstrate to the Senate that there is a bipartisan pathway forward on many of our proposals. We continue that effort today. The first bill that is made in order by this rule is H.R. 4061, the Financial Stability Oversight Council Improvement Act. This bill enhances transparency and procedural equity of the nonbank systemically important financial institution designation process. Under Dodd-Frank, systemically important financial institutions were intended to be large banks whose collapse would bring about enormous financial upheaval; however, in the hands of regulators, certain insurance companies and asset managers were designated as systemically important. This was not Congress' intent when allowing regulators to designate nonbanks as systemically important. The bill before us today will not roll back the ability of regulators to determine that a large nonbank financial institution is systemically important, but it will ensure the process for designating the nonbank as transparent. It also forces regulators to consider other possible regulatory fixes before designating a nonbank as systemically important. Well, this is all well and good. But what does this mean for Coloradans and other Americans? In 2014, the life insurer MetLife was designated as a systemically important financial institution by regulators. By 2016, MetLife had prevailed in court and had their designation overturned. What was revealed was how arbitrary and capricious the designation process seemed to be. Regulators never clarified what level of risk would be acceptable, nor did they clearly identify particular types of financial products or business activities that would result in too much risk. So life insurers and others were left wondering how to avoid the important designation. Being designated would not only increase compliance costs and consume resources that could not be invested into the business, it also would have forced the financial company to limit the options they made available to their customers. So we see the vicious cycle of overregulation play out again: less growth and fewer choices. Fortunately, in the case referenced above, the courts stepped in early and halted the process. However, we have the opportunity now to bring about reforms to the designation process that protect Americans from losing access to financial products that serve them well. When we talk about Washington picking winners and losers, look no further than Dodd-Frank and the systemically important financial institution designation. Let's put an end to these opaque regulatory decisions and allow light to shine on financial regulators. Madam Speaker, the second bill that this bill makes in order is H.R. 4293, the Stress Test Improvement Act. The Federal Reserve determines the ability of bank holding companies to withstand certain types of economic turmoil. These determinations have become known as stress tests. These stress tests have become notorious for their vague rules and the secrecy by which the regulators conduct the tests. Bank compliance officers are often stuck trying to figure on what exactly their bank is going to be examined. Banks not only do not know what they are going to be tested on, they often never know what they were tested on after the stress test is conducted. Frankly, technocrat regulators playing ``hide the ball'' from Americans that they are regulating seems like a system of government wholly unlike our own. A professor from Columbia University testified before the House Committee on Financial Service that: ``It is hard to believe that the stress tests' current structure could occur in a country like the United States, which prizes the rule of law and adherence to due process.'' Former Senator Phil Gramm testified before a Senate panel and said the following: ``What does the stress test test? Not only does no one know, but the regulators see that as a virtue. The Fed's vice chairman has stated that giving banks a clear road map for compliance might make it `easier to game the test.' But isn't the fact that compliance is easier when you know what the law says the whole point of the rule of law?'' The Stress Test Improvement Act inserts much-needed transparency into the testing process. It alters current regulations to make the internal, company-run test an annual exercise. It also streamlines the number of scenarios on which a bank may be tested, while ensuring that banks are still tested on whether they are able to withstand a seriously adverse scenario. Dodd-Frank was born out of an effort to prevent another collapse of our financial institutions like we experienced in 2008. Unfortunately, the broad brush stroke regulatory regime that it produced has had many unintended consequences. Hardest hit were our small community banks and credit unions. However, there were also unforeseen negative impacts on larger financial institutions as well. The bills made in order by this rule restructure portions of Dodd- Frank that have resulted in unreasonable regulation of our financial institutions. They preserve consumer protections while providing the certainty needed to reduce compliance costs and expand the ability of these organizations to provide the best and safest financial services to Americans. Madam Speaker, I urge my colleagues to pass this rule and the underlying legislation, and I reserve the balance of my time.

Mr. BUCK. Madam Speaker, by direction of the Committee on Rules, I call up House Resolution 780 and ask for its immediate consideration.

Mr. BUCK. Madam Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Florida (Mr. Hastings), pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only. General Leave

Mr. BUCK. Madam Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks.

Mr. BUCK. Madam Speaker, I yield 5 minutes to the gentleman from Florida (Mr. Ross), the sponsor of H.R. 4061.

Mr. BUCK. Madam Speaker, I reserve the balance of my time.

Mr. BUCK. Madam Speaker, I reserve the balance of my time.

Mr. BUCK. Madam Speaker, I yield myself the balance of my time. Madam Speaker, I want to thank my friend for his support of the STOP School Violence Act yesterday, along with 406 of our colleagues; that passed overwhelmingly. Madam Speaker, Dodd-Frank unleashed a torrent of regulation on our financial institutions. While it is understandable that people reacted strongly after the 2008 crisis, most of the Federal response heaped needless red tape onto our banks and credit unions. Much of this red tape has, at best, done nothing to improve the security of financial customers and, at worst, deprived Americans of crucial capital and financial products. It is important that we rein in the Federal Government and allow our financial institutions to invest their resources in our communities. These two bills today continue the regulatory reforms that the House has advanced since last year. Madam Speaker, I thank Chairman Hensarling and Chairman Sessions for bringing these bills to the floor today. I urge support of the rule and the underlying bills.

Mr. BUCK. Madam Speaker, I yield back the balance of my time, and I move the previous question on the resolution.

Mr. BUCK

Mr. BUCK. Mr. Speaker, I yield back the balance of my time, and I move the previous question on the resolution.

Mr. BUCK. Mr. Speaker, I yield 5 minutes to the gentleman from Colorado (Mr. Tipton), the sponsor of H.R. 1116 and H.R. 4545.

Mr. BUCK. Mr. Speaker, I have two other speakers. Neither of them are here at this point in time. I would be glad to listen to more of the things that the House should be doing, if Mr. Polis would like to engage in that discussion. But at this point, I reserve the balance of my time.

Mr. BUCK. Mr. Speaker, I yield 5 minutes to the gentleman from New Jersey (Mr. MacArthur), the sponsor of H.R. 4263.

Mr. BUCK. Mr. Speaker, I have one remaining speaker.

Mr. BUCK. Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 773 and ask for its immediate consideration.

Mr. BUCK. Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Colorado (Mr. Polis), pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only. General Leave

Mr. BUCK. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks.

Mr. BUCK. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in support of the rule and the underlying legislation. The rule makes in order three bills reported favorably by the Committee on Financial Services. All three bills were the subject of multiple hearings before the Committee on Financial Services. All three bills were reported favorably by a bipartisan majority without amendment. The rule ensures that each of these provisions are fully paid for and makes in order an amendment offered by the Democrat ranking member on the committee. Mr. Speaker, I have the privilege of working with Chairman Hensarling to bring many Financial Services Committee bills to the floor for debate. I will be here again tomorrow doing the same thing. I am always amazed at how bipartisan these votes are in the Financial Services Committee. Once again, we have before us today components of the Financial CHOICE Act. As I have already noted, each of these bills received bipartisan support in the committee. I anticipate that these bills will receive a bipartisan vote on the House floor as well. Mr. Speaker, it is encouraging to hear that the Senate is working hard toward their own bill overhauling Dodd-Frank. It is about time. The House has already done its work under the leadership of Chairman Hensarling. We passed the Financial CHOICE Act nearly a year ago. But I certainly understand that the Senate has its own ideas about financial reform. I would encourage the Senate to look at the roster of bills that we have passed unpacking the CHOICE Act, as they demonstrate a clear bipartisan roadmap to overhauling our financial regulatory reform effort. We continue to provide that roadmap today. The first bill made in order by this rule is sponsored by my good friend, the gentleman from Colorado, Mr. Tipton. H.R. 1116, the TAILOR Act, is commonsense legislation that I am pleased to cosponsor. One of the biggest complaints I hear as I travel the Fourth Congressional District of Colorado is how the Federal Government stamps out cookie-cutter regulations without a thought as to how much variation occurs in industries from State to State. For example, how do Washington regulators take into consideration the unique business model of AMG National Trust headquartered in Colorado? Do they know better than my good friend Earl Wright, who cofounded the bank in 1972, about the banking needs of his customers? Are they able to differentiate between AMG's needs and the needs of a bank in another State or on Wall Street? Typically, the answer is no. They do not model banking regulations to the particular differences from State to State. But even inside a State there is diversity within industries. The needs of AMG National Trust's customers vary from the needs of other community banks in my district; such as, the Bank of Burlington or Community State Bank, both of which are on the Eastern Plains. The TAILOR Act solves this problem. It requires regulatory actions to take into account each particular institution's business model and risk profile. Mr. Speaker, this change would be an innovative regulatory reform. It would ensure that overarching goals of accountability to investors and depositors are maintained while providing flexibility in the application of the regulations to each institution. Independent community banks and credit unions have been hit hard by Dodd-Frank's wrong-headed approach to financial services regulation. In 2016, former Federal Reserve Chair Janet Yellen said: `` . . . when it comes to bank regulation and supervision, one size does not fit all''-- and--``rules and supervisory approaches should be tailored to different types of institutions such as community banks.'' The TAILOR Act will do just that. It will reorient our regulatory structure and free up our community lending institutions to increase their investments in our communities, creating jobs and opportunities for Americans. This rule also makes in order H.R. 4263, the Regulation A+ Improvement Act. This regulation was the result of the JOBS Act passed by Congress in 2012. While Regulation A had been around for many years, it caused startups to enter into a cumbersome process for raising money from certain types of investors. The process is so inefficient that most startups avoided it altogether. Regulation A+ revamped the regulation and raised the amount of money that entrepreneurs could raise in their startup fundraising round. Crucially, it also changed the type of investor who could invest in a startup. Prior to the JOBS Act, essentially only accredited investors could participate in the first fundraising round. The problem is that, according to research done by Forbes magazine, accredited investors only made up 1 percent of the population, thereby excluding 99 percent of Americans. The JOBS Act changed the regulation to allow nonaccredited investors to participate in a startup's initial fundraising round. Expanding the pool of investors has proven to be a success, and the Regulation A+ Improvement Act continues reforming this area of investment regulation by further increasing the threshold investment amount. This bill will ensure greater access to capital for entrepreneurs seeking investors in their startup. Finally, this rule makes in order H.R. 4545, the Financial Institutions Examination Fairness and Reform Act. This bill establishes deadlines by which certain regulatory decisions must be made and provides for a more transparent appeals process. Under current law, financial institutions may appeal regulatory determinations to an intra-agency appellate process. The Financial Services Committee found during hearings that the appeals process was not as impartial as it was intended to be. This bill removes the appeals process from the original examining agency and creates an independent examination review director who is able to review regulatory determinations. To ensure timeliness of regulatory reviews, the bill requires the final reports from agencies are completed within 60 days. The combination of a better appeals process and deadline for agency action gives community financial institutions certainty as a regulator evaluates their practices. Certainty in the regulatory arena will ensure that lending institutions do not needlessly restrict capital investments due to the unpredictability of a regulatory agency's decisionmaking process. These three bills continue to advance smart financial regulatory reforms that the Committee on Financial Services has been known for under Chairman Hensarling. Washington's cookie-cutter approach to regulation hinders investments in Colorado and across the United States. Mr. Speaker, I support these measures, and I reserve the balance of my time.

Mr. BUCK. Mr. Speaker, I yield myself the balance of my time. It really is fairly simple. Washington's regulations tend to strangle economic growth. What usually starts as a do-good effort quickly devolves into a ``Washington knows best'' regulatory regime. Instead of recognizing the unique needs of businesses around this country, the Federal Government usually stamps out a cookie-cutter regulation that purports to be the solution to a problem but, in reality, almost always has unintended consequences that reduce the freedom of Americans and reduces economic activity in our communities. The bills before us today take a balanced approach to regulation, maintaining overarching safeguards while making commonsense reforms that free our community banks and credit unions to increase investment in our communities. I promised Coloradans that I would work to reduce the role of Federal Government in their lives. These three bills today do just that. I thank my fellow Coloradan, Mr. Tipton, for introducing two of these measures. I thank Chairman Hensarling for bringing these bills to the floor. I urge passage for the rule and the underlying rule.

Mr. BUCK

Mr. BUCK. Mr. Speaker, on behalf of the people of Colorado's 4th Congressional District I am delighted to recognize the commissioning of the USS Colorado (SSN-788.) Since the time of the Civil War, U.S. Navy vessels named after the magnificent state of Colorado have proudly served our great nation. The commissioning ceremony will be held on Saturday, March 17th, which will be a special day for Coloradans as the United States Navy officially welcomes the fourth U.S. Navy vessel to bear the Colorado name. We rest assured in the knowledge that the crew of the USS Colorado, part of the Virginia-class of attack submarines, is equipped with the most advanced capabilities and sophisticated technology needed to maintain the strength of the U.S. Navy and the security of America's shores. Coloradans are proud as USS Colorado and her crew joins forces in the endeavor to ensure security for all Americans. A relationship will be established between the USS Colorado and her remarkable service men and women. May that bond reach far beyond Saturday's ceremony and remain throughout the span of the USS Colorado's lifetime of service.

Mr. BUCK

Mr. BUCK. Mr. Speaker, I rise today to recognize the generosity of Virginia Kinch and her family in Longmont, Colorado. Last year during the holiday season, Virginia and her daughters were preparing to deliver Thanksgiving meals to the homeless. They were shocked to hear about a family living in a broken down school bus behind a truck stop, so they went to deliver food to them. They discovered that this struggling family had three young daughters--a 5 year old, a 14-month old, and a 4-week old. After providing the family with a hot meal, Virginia wanted to do more to help. Fortunately, the Kinch's had just completed renovations on a house in Greeley that they planned to rent out or sell. Instead, Virginia went above and beyond and decided to invite the struggling family to move into that home rent-free. The kindness and selflessness displayed by the Kinch family is truly remarkable. They fully embody the Christmas spirit of giving, and are an inspiration to us all. For that, I am pleased to honor and recognize their outstanding act of kindness.

Mr. BUCK

Mr. BUCK. Mr. Speaker, in honor of America's heroic veterans, the Honor Flight Network conducts two annual Honor Flight ceremonies to Washington, D.C. to give our nation's heroes a day to visit and reflect at their war memorials. On September 17, 2017, Honor Flight Northern Colorado held its 19th Honor Flight that gave many of our courageous veterans this extraordinary opportunity. I am pleased to recognize the September 17, 2017 Honor Flight honoring World War II, Korean War, and Vietnam War veterans of Northern Colorado. Mr. Speaker, those who participated in this flight are as follows: World War II: Carl Curtis, Eugene Doty, Ben Gutfelder, Fred Heinze, James Ingram, Elwood Johnsen, George Kunz, Stuart Mundt, Merwin Waterman. Korean War: John Anderson, Ralph Ashton, William Bohn, Gerald Briggs, Joseph Carney, Dale Doty, Ernest Garcia, Charles Gustafson, Fred Hagen, Richard Hornung, Phillip Kaspar, Dixon King, George Lanes, John Lark, Don Moritz, August Roemer, Melvin Salter, Paul Salvador, Arlen Sarian, Walter Slocum Jr., Arthur Smith, Willard Unrein, Robert Wallen, William Webster, Reginald Willcox. Vietnam War: Edward Aitken, Charles Ashbaugh, Harry Ashbaugh, Frank Atwood, Thomas Barker, Lanny Benninger, Eldredge Blain, William Bjorlin, Leslie Bums, Joel Champion, James Chopp, Willis Corcoran, William Damewood, Anson Derby, Clarence Dye, Clifford Echols, Roy Echols, David Fanning, Wesley Feeney Jr., Budd Finch Jr., Errol Ford, Michael Gail, Alonzo Garza, Dennis Gordon, Eldon Harrell, Larry Hartman, Allan Havens, John Hendrickson, Nicholas Herrera, Donald Hull, Raymond Johnson, John Kask, Paul Kommueller, Charles Klutsch, Joseph Long, Michael Long, Edward Longhini, Joseph Maes, Loren Maes, Gary Malara, David Mathis, Michael McClure, Jerry McDaniel, Mark McKinley, Oscar Metzgar, Steven Moskowitz, Allan Nelson, Robert Nelson, Russell Ness, Paul Nobles, Sven Nylander, Max Oesterle, Dale Olson, David Painter, Thomas Parker, Raymond Patch, Rudolf Peralez, Robert Perlenfien, John Perrine, Wayne Peterson, Louis Price, Jerry Purdy, Ernie Pyle, Ronald Ramirez, Richard Reininger, Frank Ross, Joe Roybal, John Ryan, Genaro Salazar, Raymond Sautter, Robert Schawo, Rudy Schenk, Larry Schwindt, Robert Shaeffer, Dan Shaffer, Roger Smith, Daniel Sorensen, Andrew Stephenson, Marjorie Stephenson, Walter Stolpa Jr., Dwight Strandberg, Barton Thompson, Norman Toman, Richard Tompkins, Samuel Trujillo, Terrence Urista, Myron Wagner, James Wetzler, Charles Winkleman. It is my distinct pleasure as the U.S. Representative of the 4th District of Colorado to recognize the honor, courage, and sacrifice of these heroes, along with all members of America's Armed Forces. I thank them for their dedication and service to this nation.

Mr. BUCK

Mr. BUCK. Mr. Speaker, I thank the gentleman from Iowa for the time today to talk about this important legislation. Mr. Speaker, I want to speak on behalf of the Political Appointee Burrowing Prevention Act. This important legislation addresses a problem affecting our Federal workforce. Our Federal civil service hiring process is supposed to be a competitive, merit-based system where the best and brightest individuals are considered based on their qualifications and ability to do their job, not because of their political connections. However, we have seen a concerning trend where excepted service employees, specifically political appointees, are converted into high-paying, lifelong civil service positions, bypassing the normal competitive hiring process. This process, also known as ``burrowing,'' defeats the purpose of having a nonpartisan, merit-based civil service. In fact, the Government Accountability Office reports that the Obama administration converted 78 political appointments into career positions, while the Bush administration allowed 135 political appointees to burrow into career positions. This trend raises significant concerns that individuals who were not chosen based solely on their merits may, at best, not be the most qualified candidate for the job, or, at worst, may not be willing to properly execute the law under a new administration. Political appointees are supposed to serve their appointing President's agenda for a temporary period of time. Part of their duty to the Nation is to know when it is time to step down from their position of power. Congress must act to ensure this principle is upheld and to protect the independence of our merit-based civil service. That is why I, along with my friend and colleague, Representative Ted Lieu, have offered an equitable solution to ensure this problem is stopped in its tracks. Our bill, the Political Appointee Burrowing Prevention Act, places a 2-year ban on political appointees being hired for any job in the civil service after they depart a political position. Additionally, the bill ensures that after the 2-year ban is completed, the head of the agency seeking to employ the individual must submit a written request to OPM detailing why hiring a former appointee is necessary to the agency's mission. Furthermore, OPM is instructed to deny the application unless the agency head can prove why it is necessary to hire this individual instead of an applicant from the merit-based hiring pool. This commonsense bill ensures that our Federal workforce is filled with career civil servants who are the most qualified, not the most politically connected. Mr. Speaker, I urge my colleagues to support this commonsense legislation that ensures our Federal workforce is being selected by merit, not by political patronage.

Mr. BUCK

Mr. BUCK. Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 747 and ask for its immediate consideration.

Mr. BUCK. Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Massachusetts (Mr. McGovern), pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only. General Leave