[Congressional Record Volume 150, Number 56 (Wednesday, April 28, 2004)]
[Extensions of Remarks]
[Page E692]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 IN SUPPORT OF THE GUTIERREZ-PAUL BILL

                                 ______
                                 

                             HON. RON PAUL

                                of texas

                    in the house of representatives

                       Wednesday, April 28, 2004

  Mr. PAUL. Mr. Speaker, I am pleased to cosponsor the legislation 
offered by Mr. Gutierrez using the Congressional Review Act to 
disapprove the Office of the Comptroller of the Currency's (OCC) 
preemption regulation because I strongly oppose any attempt to expand 
the OCC's regulatory functions beyond the power Congress originally 
granted the OCC. The OCC was never meant to serve as a national 
consumer protection agency. Its limited, intended role has been 
underscored by Federal court rulings that State law remains applicable 
to national banks in the absence of explicit Federal preemption.
  Expanding the jurisdiction of OCC necessarily infringes on the 
ability of State lawmakers to determine their own consumer protection 
standards. One-size-fits-all policies crafted in Washington cannot 
serve the 50 diverse States well. Different States and markets have 
different needs that are better understood by State and local 
legislators. Congressional conservatives, in particular, should not 
endorse an expansion of the Federal regulatory power at the expense of 
States' rights. The Tenth Amendment is clear: regulatory powers not 
specifically granted to Congress remain with the States. Congress 
should stop usurping State authority and leave consumer protection laws 
to those with far more experience and expertise.
  This new OCC authority will have far-reaching and unintended 
consequences. State law governing mortgage brokers, sub-prime lenders, 
check cashing centers, leasing companies, and even car dealers could be 
preempted under the new proposal. This proposal may also give national 
banks and their subsidiaries a competitive advantage over small 
mortgage companies. OCC undoubtedly will need to hire new staff. Yet 
the OCC still may be unable to handle the flood of new 
responsibilities. Unless Congress resists any expansion of OCC, it 
risks creating another huge, unaccountable, bureaucratic agency. 
Therefore, I respectfully urge all my colleagues to support Mr. 
Gutierriez's legislation disapproving the OCC's preemption regulation.

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