K. Conaway

Mr. CONAWAY

Mr. CONAWAY. Mr. Speaker, I rise today in support of the Veterans 2nd Amendment Protection Act, a bill that I have supported for the last several Congresses. The Second Amendment is a constitutional right for all of us, but it is especially sacred to the men and women who put their lives on the line to protect our Constitution and our way of life. Unfortunately, under current law, many of our servicemembers who use a fiduciary to help them navigate the increasingly complicated Department of Veterans Affairs are automatically labeled as mentally defective--which, in this politically correct era, is probably not the best way to phrase them-- which places them in the FBI's National Instant Criminal Background Check System. This label wrongly denies these veterans their constitutional right to bear arms. The determination for a label of this magnitude should rest with the courts, as this bill ensures, not with a bureaucrat, as the current practice dictates. Mr. Speaker, as our colleagues on the other side of the aisle said, they have listed some almost 40,000 people who have a clinical issue who deserve to have a conversation of the 174,000 that are on the list. What about the other 130,000? As the other side has also admitted, it overreaches and is beyond what we should be doing. Their gratuitous offer to negotiate to fix that, they know, of course, that the current practice of just labeling folks by a bureaucrat would remain in place throughout that negotiation process if it were to ever actually occur. All too often, government bureaucracies fail the very men and women who fought to protect this Nation; however, this bill is an easy fix to ensure that veterans aren't further hindered by Big Government bureaucracies. I urge my colleagues to support the legislation.

Mr. CONAWAY

Mr. CONAWAY. Mr. Speaker, I rise today to recognize Dr. Sudip Bose for his service to our country and our nation's veterans. On the afternoon of March 2, 2004, al-Qaeda insurgents launched coordinated attacks on innocent civilians who were observing the Muslim holiday, the Day of Ashura. These bombings killed over 178 and injured another 500 people. Dr. Bose, a Captain in the United States Army deployed in Baghdad at the time, was serving as the only emergency physician at the scene of the massacre. Captain Bose and his team of medics from the First Cavalry Division provided immediate medical attention to the injured while simultaneously under attack from the chaotic crowd. For his actions that day, Dr. Bose was awarded the Combat Medical Badge. Dr. Bose went on to serve one of the longest continuous combat tours by a military physician since World War II. During this tour, he saved countless lives, was selected as the physician to treat Saddam Hussein following his capture, and served as a shining example to his peers. For these efforts, Dr. Bose was awarded the Bronze Star and promoted to the rank of Major. After his time in the Army, Dr. Bose continued serving his country by establishing The Battle Continues, a nonprofit that advocates and mobilizes resources for military veterans. Through The Battle Continues, Dr. Bose has used his experiences and knowledge to educate the public on the medical struggles veterans face when coming home. In addition, this organization assists in connecting veterans with physicians that can best address their specific medical needs at no cost to the veteran. Looking ahead, Dr. Bose wants to continue to be a strong advocate for public health and veterans issues. Though March 2, 2004 was a tragic day, I am honored to recognize the anniversary of the actions of Dr. Bose and his team. I thank him for his service to our country.

Mr. CONAWAY

Mr. CONAWAY. Mr. Speaker, I rise today to recognize a constituent of mine who is here with us today. Chaplain Harvey H. Klee, a resident of Llano, Texas, joins us today as the national chaplain of the American Legion. We just heard Chaplain Klee give a beautiful invocation, calling for us all to be unified in our actions, with the best interest of the American people at heart. Chaplain Klee has dedicated himself to living by those words, serving our Nation and its people in many ways. Chaplain Klee served in the Navy during the Korean war and later worked as a missionary helping drug addicts and designing training programs for inmates at a prison in California. Later, he founded the Texas Chaplains Association, and has been appointed Texas Department Chaplain nine times, which is more times than any other chaplain in the history of the department. Chaplain Klee, thank you for joining us today and reminding us of the great power of our Lord, Jesus Christ.

Mr. CONAWAY

Mr. CONAWAY. Mr. Speaker, I rise today to recognize and thank a long- term member of my staff, Scott Graves, for his 12 years of service on Capitol Hill. Scott has worked in numerous capacities--starting as an agriculture legislative assistant and legislative director, then as my chief of staff and most recently as staff director at the House Committee on Agriculture. He is a well-respected and accomplished leader, and though he is moving on, I know he will continue to accomplish great things for American agriculture. Scott has been my right-hand man for many years, helping me navigate the complexities of the 2008 and 2014 farm bills, serving as an advisor when I chaired the House Committee on Ethics, and keeping the wheels running in both my personal office and the Agriculture Committee. Though much of his work was done behind the scenes, my colleagues and I knew we could rely on Scott to produce results. Beyond his many professional attributes, I will certainly miss his humor and wit. I am proud of him, I wish him, Haley, Bronte, and a unit to be named this summer the very best. I want to thank him for his loyalty and dedication to public service and I wish him Godspeed in the next chapter of his life

Mr. CONAWAY

Mr. CONAWAY. Mr. Speaker, I rise today to recognize and thank a long- time member of my staff, Scott Graves, for his 12 years of service on Capitol Hill. Scott has worked in numerous capacities, starting as an agriculture legislative assistant and then as a legislative director, then as my chief of staff, and, most recently, as staff director at the House Committee on Agriculture. He is a well-respected and accomplished leader; and though he is moving on, I know he will continue to accomplish great things for American agriculture. Scott has been my right-hand man for many years, helping me navigate the complexities of the 2008 and 2014 farm bills, serving as an adviser when I chaired the House Committee on Ethics, and keeping the wheels running in both my personal office and the Agriculture Committee. Although much of his work was done behind the scenes, my colleagues and I knew we could always count on Scott to get results. Beyond his many professional attributes, I will certainly miss his wit and humor. I am very proud of him, and I wish Scott, Haley, Bronte, and a unit to be named this summer the very best. I want to thank him for his loyalty and dedication to public service, and I wish him Godspeed in the next chapter of his life.

Mr. CONAWAY

Mr. CONAWAY. Mr. Speaker, I rise today on this piece of legislation before us that would provide a waiver for the appointment of Mr. Jim Mattis to serve as Secretary of Defense. I've listened to and respect much of the conversation here today from my colleagues on the other side of the aisle. However, much of it is repetitive from a process standpoint. Nothing I've heard so far says that the commander in chief will not be president of the United States, so the ultimate civilian leadership rests with the commander and chief. He then hires someone with the advice and consent of the Senate to be the Secretary of Defense. I don't know what's magic about the requirement to wait for seven years. I've heard nothing during this process conversation on the floor today that says anyone needs a seven year detox [detoxification] program to shed themselves of all the nasty vices you get while serving in the military. We've got a general officer sitting on the front row of the Armed Services Committee; we've got a colonel sitting on the second row of the Armed Services Committee to name just a few, and no one would remotely suggest that they are more loyal to the military than they are loyal to the constituents they represent back home. So, I ask, why is five years not an appropriate length of time for a detox program? Why is three years not appropriate? Clearly, no one is going to put a uniformed officer in the position of Secretary of Defense. So as we think about the appropriate amount of time for a nominee to Secretary of Defense to have been out of the military, I've not heard the psychology behind or scientific evidence to say seven years is somehow a magic length of time. Mr. Mattis has been out of the military for four years and I'm quite comfortable saying that he is going to be more respectful of the civilian as he approaches the job than his previous service as a military man. The conversation and debate has been high-minded and respectful and I appreciate that, but this is going to be a party-line vote. And unfortunately, you are going to send the next Secretary of Defense into his role to lead every man and woman in uniform with a split vote between the majority and minority. That does not send a very good message. I can assure you those young sergeants and E-4s and E-3s out there that are going to be asked to follow the instruction of the civilian leadership will be much more impressed if it was a unanimous vote for Mr. Mattis. So however you couch your language, I'm voting for Mr. Mattis to be Secretary of Defense today. My vote on this bill will be for Mr. Mattis to be Secretary of Defense. The process discussed now by my colleagues, I understand. You can make those arguments and you have done that very well--and I respect that. But, for me and my vote, it will be for Mr. Mattis to be Secretary of Defense.

Mr. CONAWAY

Mr. CONAWAY. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks and to include extraneous material on H.R. 238.

Mr. CONAWAY. Mr. Chairman, I would like to point out for the Record that the cost-benefit analysis rules in this bill are modeled after Executive Order 13563, which President Obama signed into the executive order status, and they are forward-looking. Nothing in our bill would require what might be a much-needed re-look at the Dodd-Frank rules done in the past. The cost-benefit analysis would require any future rulemaking to comply. I yield 3 minutes to the gentleman from California (Mr. LaMalfa), another valuable member of the Agriculture Committee.

Mr. CONAWAY. Mr. Chairman, I yield myself such time as I may consume. I rise in support of H.R. 238, the Commodity End-User Relief Act. The Commodity End-User Relief Act is a bipartisan bill to reauthorize the Commodity Futures Trading Commission, to make much-needed regulatory reforms, and, most importantly, to make statutory changes to protect end users and give them access to the tools they need to manage their risks. Over the past 4 years, the House Committee on Agriculture has held almost two dozen hearings that have examined the Commission and have investigated the impacts of the Dodd-Frank Act on derivatives markets. Our witnesses, many of whom were market participants who were struggling to comply with burdensome rules and ambiguous portions of the underlying statute, were consistent in their call for relief. To address their concerns, H.R. 238 makes reforms that fall into three broad categories: customer protections, Commission reforms, and end- user relief. Title I of the bill protects customers and the margin funds they deposit at their Futures Commission Merchants by codifying critical changes made during the collapse and bankruptcies of MF Global and Peregrine Financial Group. Title II makes meaningful reforms to the operations of the Commission to improve the agency's deliberative process. In doing so, it also requires the Commission to conduct more thorough and robust cost- benefit analysis to help get future rulemakings right the first time. While the CFTC is already required to consider costs and benefits of the rules it proposes, its work has been called into question by the CFTC's inspector general, who reported the Commission staff seemed to view the process as more of a legal one than an economic one. End users are the businesses that provide Americans with food, clothing, transportation, electricity, heat, and much more. Companies that produce, consume, and transport the commodities that make modern life possible use futures and swaps markets to reduce the uncertainty that their businesses face. Farmers hedge their crops in the spring so they know what they will get paid in the fall. Utilities hedge the price of energy so they can charge customers at a steady rate. Manufacturers hedge the cost of steel, energy, and other inputs to lock in prices as they work to fill orders. The fact is that no end user played any part in the financial crisis, and no end user currently poses a systemic risk to U.S. derivative markets. Yet, as the Agriculture Committee heard in countless hours of testimony, today it is more difficult and more expensive for them to manage their risks than it was for them 5 years ago. Some of these challenges are the result of ambiguities and oversights in the text of the Commodity Exchange Act, and some of them result from overzealous rulemakings by the Commission itself. Today's legislation fixes statutory problems, like section 304, which amends the definition of ``financial entity'' to ensure that some end users don't lose their clearing exemption simply because a hedging strategy makes up for losses in a physical transaction; or like section 315, which makes small changes to the swaps' core principles to align them with conventions in the swaps industry, rather than the futures industry, easing compliance burdens for these newly regulated entities. It also fixes problems that have grown out of the CFTC's own rulemakings. For example, section 308 sets aside a Commission rule that would automatically lower the transaction threshold triggering registration as a swap dealer. This costly, complex registration process was intended for large financial institutions, but because this registration threshold was set arbitrarily, it has swept up some commodity firms as well. If the limits fall by 60 percent next year, it could sweep up to 100 more firms into the reach of Dodd-Frank. H.R. 238 would fix the level at its current $8 billion unless the Commission proposes a new rule with evidence of a needed reduction. Similarly, section 313 exempts religious pension plans and university endowments from a new rule that requires them to register as commodity pool operators simply because they use standardized hedging products. What H.R. 238 does not do is roll back a single core tenet of title VII of Dodd-Frank. It does not change the execution, clearing, margining, capital, or reporting frameworks set up by that Act. In fact, not a single witness who appeared before the House Committee on Agriculture ever asked us to fundamentally upend these principles. These are concepts that have been part of the swaps markets long before the financial reform happened. The Committee, the Commission, and the industry will continue to grapple with the details of these core tenets, seeking to provide the right mix of flexibility and oversight. Before I close, I would like to thank members of the Agriculture Committee who sat through all these hearings and all the markups on this issue. Chairman Austin Scott and Ranking Member David Scott, two of my cosponsors on this legislation, have led most of the Committee's hearings on these issues, and they have done great work. Together, we have put forward a bipartisan bill that makes narrowly targeted changes to provide relief from regulatory burdens on American businesses. The Commodity End-User Relief Act offers meaningful improvements for market participants without undermining the basic goals of title VII of Dodd-Frank, and it does so by providing the right relief to the right people. I urge support of the Commodity End-User Relief Act with all its amendments, and I include for the Record letters of support from over 30 groups. House of Representatives, Committee on Financial Services, Washington, DC, January 4, 2017. Hon. K. Michael Conaway, Chairman, Committee on Agriculture, Washington, DC. Dear Chairman Conaway: I am writing concerning H.R. 238, the ``Customer Protection and End-User Relief Act.'' As a result of your having consulted with the Committee on Financial Services concerning provisions in the bill that fall within our Rule X jurisdiction, I agree to forgo action on the bill so that it may proceed expeditiously to the House Floor. The Committee on Financial Services takes this action with our mutual understanding that, by foregoing consideration of H.R. 238 at this time, we do not waive any jurisdiction over the subject matter contained in this or similar legislation, and that our Committee will be appropriately consulted and involved as this or similar legislation moves forward so that we may address any remaining issues that fall within our Rule X jurisdiction. Our Committee also reserves the right to seek appointment of an appropriate number of conferees to any House-Senate conference involving this or similar legislation, and requests your support for any such request. Finally, I would appreciate your response to this letter confirming this understanding with respect to H.R. 238 and would ask that a copy of our exchange of letters on this matter be placed in the Congressional Record during floor consideration thereof. Sincerely, Jeb Hensarling, Chairman.

Mr. CONAWAY. Mr. Chairman, I yield myself such time as I may consume. As I close, I want to remind us of the need to act today. But before I do, I also want to thank the ranking member. While we may vote differently on this bill, he and I generally work well together on a myriad of issues that face not only production agriculture, but rural America as well, and I thank him for his work, even though we may not vote exactly the same way today. Over the past 4 years, the Committee on Agriculture heard dozens of witnesses about the upheaval end users have been facing while trying to use derivative markets in the wake of the post-crisis financial reforms. While this Congress took affirmative steps in Dodd-Frank to protect end users from harm, today it is clear that there is still work to be done. have been facing while trying to use derivative markets in the wake of the post-crisis financial reforms. While this Congress took affirmative steps in Dodd-Frank to protect end users from harm, today it is clear that there is still work to be done. It isn't enough to simply raise these issues and hope that the CFTC will take care of them for us--for one, sometimes they cannot. There are numerous small oversights in the statute that have big implications for end users that we must correct in this legislation. Currently, the CEA defines some utility companies as financial entities, stripping them of their status as end users. The Commission can't fix this. The core principles for SEFs, which were added to the CEA by Dodd- Frank, were lifted almost word for word from the core principles for futures exchanges, even though swaps exchanges and futures exchanges operate completely differently and SEFs cannot perform many of the functions of a futures exchange. The Commission cannot fix this. Certainly, the Commission can and has tried to paper over these problems, issuing staff letters explaining how it will deal with incongruities in the law. But that isn't good enough. We know the problems. We should fix them, and fix them now. Sometimes, though, the problem isn't the statute. There are a number of end-user issues that we have heard testimony about which the CFTC will not fix, because the Commission simply disagrees with Congress about how to apply the law. We know these problems also. The Commission has promulgated a rule that reduces the transaction threshold to be considered a swap dealer from $8 billion to $3 billion, a 60 percent decline, while it is still studying the matter. We should require that the CFTC complete the study and have a public vote on that matter. The Commission has proposed a new method of granting bona fide hedge exemptions that is significantly narrower than the current method, upending longstanding hedging conventions for market participants. This proposal has the added disadvantage of being dramatically more labor intensive for the Commission. We should insist that historic hedging practices be protected. The Commission has issued a new rule on ownership, control, and reporting that it knows isn't working. They have delayed its implementation for over 3 years by continuing to parcel out temporary reprieves. We should insist the Commission amend the rule so that market participants know definitively what their compliance obligations are. The definition of swap does not exclude transactions that are wholly contained within a single company and not market facing. Regulators have used this leeway to require businesses and financial institutions to follow rules that are, quite frankly, inappropriate for risk management purposes and costly for the companies to use them. We should amend the statute, to make it clear that inter-affiliate transactions should not be regulated the same way as publicly transacted swaps. The challenges facing businesses who hedge their risks in derivatives markets are real. Today we have an opportunity to fix some of those problems. Every dollar that a business can save by better managing its risk is a dollar available to grow that business, pay higher wages, and lower costs to consumers or protect investors. Over the past week, over 30 organizations representing thousands of American businesses have voiced their support for the important reforms in the Commodity End-User Relief Act. Businesses from farm country to major manufacturers, to public utilities need every tool available to manage their businesses and reduce the uncertainties they face each day in today's global economy. I urge my colleagues to support the Commodity End-User Relief Act, protect these companies, and ensure that they have the tools they need to compete in a global economy. Mr. Chairman, I yield back the balance of my time.

Mr. CONAWAY. Mr. Chair, I reserve the balance of my time.

Mr. CONAWAY. Mr. Chairman, I yield 3 minutes to the gentleman from Arkansas (Mr. Crawford), who is the subcommittee chairman for the General Farm Commodities and Risk Management Subcommittee.

Mr. CONAWAY. Mr. Chairman, I yield 3 minutes to the gentleman from Illinois (Mr. Davis), who is the subcommittee chairman for the Subcommittee on Biotechnology, Horticulture, and Research.

Mr. CONAWAY. Mr. Chairman, I would like to point out for the Record that over the past two fiscal years, since 2013, the CFTC has received a 29 percent increase in funding. It has gone from $194 million to its current level of $250 million. I think you would be hard-pressed to find any other agency throughout this government that has gotten a 29 percent increase in its resources over that timeframe. I now yield 3 minutes to the gentlewoman from Missouri (Mrs. Hartzler), a valuable member of the Ag Committee.

Mr. CONAWAY. Mr. Chairman, I am proud to yield 3 minutes to the gentleman from Florida (Mr. Yoho), another valuable member of the Agriculture Committee.

Mr. CONAWAY. Mr. Chairman, may I inquire as to how much time is left on both sides.

Mr. CONAWAY. Mr. Chair, I yield 3 minutes to the gentleman from Georgia (Mr. Austin Scott), who is the chairman of the Subcommittee on Commodity Exchanges, Energy, and Credit.

Mr. CONAWAY. I have no further speakers.

Mr. CONAWAY. Mr. Chairman, may I inquire as to who has the right to close?

Mr. CONAWAY. Mr. Chair, I include in the Record the following letters of support for H.R. 238: January 11, 2017. Hon. Paul Ryan, Speaker, House of Representatives, Washington, DC. Hon. Nancy Pelosi, Democratic Leader, House of Representatives, Washington, DC. Dear Speaker Ryan and Leader Pelosi: FIA supports H.R. 238, the ``Commodity End User Relief Act''. Notably, this legislation reauthorizes the Commodity Futures Trading Commission (CFTC), which has been without statutory authorization for almost four years. In addition to reauthorizing the CFTC, Congress has historically taken the opportunity of reauthorization to periodically review and enhance the CFTC's authorities. This is essential in a regulatory environment where the marketplace is extremely dynamic. Given the constantly evolving structure to which these regulatory authorities apply, it is prudent for Congress to consider updating the statute in response to market changes. We commend the House Committee on Agriculture for efforts to build upon previous work and advance this legislation. H.R. 238 contains prudent internal risk controls to safeguard market data and improved customer protections sought by the market participants who rely on derivatives to manage their risks. These are examples of policy enhancements that have garnered tremendous favor in recent years as evidenced by the bi-partisan support they have received in previous Congressional sessions. As noted above, the constant evolution of the markets regulated by the CFTC has advanced even since the last time the House of Representatives passed similar legislation, which warrants the introduction of new statutory updates expected to be offered as floor amendments. In particular, FIA would like to lend our support to the bi-partisan Duffy/ Scott amendment protecting critical intellectual property that is key to the innovative culture in the United States. Additionally, we commend Congresswoman Hartzler for her amendment recognizing the need to improve the quality of information submitted for the Commission's surveillance and large trader reporting programs. We look forward to seeing this effort advance to the Senate where we expect to have continued dialogue on refinements. Sincerely, President and CEO.

Mr. CONAWAY. Mr. Chairman, I have an amendment at the desk.

Mr. CONAWAY. Mr. Chairman, this is a pretty straightforward amendment. It proposes certain technical corrections within the bills. This would have normally been handled by the Rules Committee without need for a particular amendment, but because, as I said yesterday, the language of H.R. 238 is the exact language out of last year's June 15 bill, except for things that we dropped and limiting the appropriations to $250 million. So, in the spirit of total transparency, I bring this amendment forward so the full body can work its will on this technical correction that would have normally been fixed by the Rules Committee.

Mr. CONAWAY. I yield to the gentleman from Minnesota.

Mr. CONAWAY. Mr. Chair, I yield back the balance of my time.

Mr. CONAWAY. Mr. Chairman, I have an amendment at the desk.