WASHINGTON – U.S. Sen. Jim Inhofe (R-Okla.), today issued a statement on Senate passage of H. J. Res 41, a Congressional Review Act (CRA) Resolution of Disapproval against the U.S. Securities and Exchange Commission’s (SEC) rule on resource extraction issuers under Section 1504 of the Dodd-Frank Act. The CRA was introduced by Inhofe in the Senate and Rep. Bill Huizenga (R-Mich.) in the House. The resolution passed the Senate by a vote of 52-47.
“Overturning this SEC rule is another important step to ending the Obama Administration’s war on fossil fuels,” Inhofe said. “Once President Trump signs this CRA Resolution American oil and gas companies will no longer be at a disadvantage relative to their international competitors. By repealing this harmful rule U.S. companies will save millions of dollars annually and won’t have to choose whether to comply with U.S. laws or foreign laws. I am proud to have introduced this important resolution and glad my colleagues in the Senate have joined me voting in favor of it.”
- On July 27, 2016, the SEC finalized its rule relating to the disclosure of payments by resource extraction issuers (81 Fed Reg. 49360).
- This rule puts publicly traded companies listed in the United States at a competitive disadvantage relative to their private and international counterparts by requiring them to disclose confidential business information relating to the negotiation of business contracts.
- The SEC was instructed to develop this rule by Section 1504 of the Dodd-Frank Act. It finalized the first version of this rule in August 2012, but it was vacated by federal district court in July 2013 because the SEC’s rule made “two substantial errors,” including “[misreading Section 1504] to mandate public disclosures of the reports,” and failing to provide an exemption to companies that are legally prohibited from making them.
- Despite this judicial rebuke, the SEC finalized a second rule under the authorities of Dodd-Frank’s Section 1504 without making substantial modifications.
- Under the CRA, Congress is empowered to review new federal regulations issued by government agencies. With the passage of a joint resolution and the signature of the President, Congress can permanently repeal a regulation