WASHINGTON—U.S. Sen. Jim Inhofe (R-Okla.), today issued a statement following President Trump signing 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, into law.
“Trump’s signature on this important CRA resolution signals a welcome change in rolling back regulations that have burdened energy producers for too long,” Inhofe said. “I am proud to stand with the President today to roll back this onerous SEC regulation; doing so will put American companies back on an even playing field with foreign competitors.”
Inhofe introduced the Senate companion to H. J. Res 41, S. J. Res 9 on Jan. 30.
H. J. Res 41 passed the Senate on Feb. 3 by a vote of 52–47.
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 Aug. 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