[House Report 113-253]
[From the U.S. Government Publishing Office]


113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    113-253

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PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 992) TO AMEND PROVISIONS 
   IN SECTION 716 OF THE DODD-FRANK WALL STREET REFORM AND CONSUMER 
 PROTECTION ACT RELATING TO FEDERAL ASSISTANCE FOR SWAPS ENTITIES, AND 
   PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2374) TO AMEND THE 
   SECURITIES EXCHANGE ACT OF 1934 TO PROVIDE PROTECTIONS FOR RETAIL 
                   CUSTOMERS, AND FOR OTHER PURPOSES

                                _______
                                

  October 28, 2013.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

              Mr. Sessions, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 391]


    The Committee on Rules, having had under consideration 
House Resolution 391, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 992, the 
Swaps Regulatory Improvement Act, under a closed rule. The 
resolution provides one hour of debate equally divided among 
and controlled by the chairs and ranking minority members of 
the Committee on Agriculture and the Committee on Financial 
Services. The resolution waives all points of order against 
consideration of the bill and provides that it shall be 
considered as read. The resolution waives all points of order 
against provisions in the bill. The resolution provides one 
motion to recommit.
    Section 2 of the resolution provides for consideration of 
H.R. 2374, the Retail Investor Protection Act, under a 
structured rule. The resolution provides one hour of debate 
equally divided and controlled by the chair and ranking 
minority member of the Committee on Financial Services. The 
resolution waives all points of order against consideration of 
the bill. The resolution provides that an amendment in the 
nature of a substitute consisting of the text of Rules 
Committee Print 113-23 shall be considered as adopted, and the 
bill, as amended, shall be considered as read. The resolution 
waives all points of order against provisions in the bill, as 
amended. The resolution makes in order only the further 
amendment printed in this report, if offered by Representative 
George Miller of California or his designee, which shall be 
considered as read, shall be separately debatable for 20 
minutes equally divided and controlled by the proponent and an 
opponent, shall not be subject to amendment, and shall not be 
subject to a demand for division of the question. The 
resolution waives all points of order against the amendment 
printed in this report. The resolution provides one motion to 
recommit with or without instructions.
    Section 3 of the resolution provides that a motion to 
proceed with regard to a joint resolution of disapproval 
specified in section 1002 of the Continuing Appropriations Act, 
2014, may be offered even if the joint resolution has not been 
reported or discharged, shall be in order only on the 
legislative day of October 29, 2013 or the legislative day of 
October 30, 2013, and shall be debatable for one hour equally 
divided and controlled by the proponent and an opponent.
    Section 4 of the resolution provides that on any 
legislative day during the period from October 31, 2013, 
through November 11, 2013: the Journal of the proceedings of 
the previous day shall be considered as approved; and the Chair 
may at any time declare the House adjourned to meet at a date 
and time to be announced by the Chair in declaring the 
adjournment.
    Section 5 of the resolution provides that the Speaker may 
appoint Members to perform the duties of the Chair for the 
duration of the period addressed by section 4 of the 
resolution.

                         EXPLANATION OF WAIVERS

    Although the resolution waives all points of order against 
consideration of H.R. 992, the Committee is not aware of any 
points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
provisions in H.R. 992, the Committee is not aware of any 
points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
consideration of H.R. 2374, the Committee is not aware of any 
points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
provisions in H.R. 2374, as amended, the Committee is not aware 
of any points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
the amendment to H.R. 2374 printed in this report, the 
Committee is not aware of any points of order. The waiver is 
prophylactic in nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 88

    Motion by Ms. Slaughter to report open rules for H.R. 992 
and H.R. 2374. Defeated: 4-8

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                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Ms. Slaughter.....................          Yea
Mr. Bishop of Utah..............................          Nay   Mr. McGovern......................          Yea
Mr. Cole........................................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Woodall.....................................          Nay   Mr. Polis.........................          Yea
Mr. Nugent......................................          Nay
Mr. Webster.....................................          Nay
Ms. Ros-Lehtinen................................  ............
Mr. Burgess.....................................          Nay
Mr. Sessions, Chairman..........................          Nay
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          SUMMARY OF THE AMENDMENT TO H.R. 2374 MADE IN ORDER

    Miller, George (CA), Conyers (MI): Authorizes the 
Department of Labor to issue a fiduciary duty rule that 
protects access to investment education and advice and assures 
the availability of reasonable compensation to financial 
service providers. Requires a study of the effect of current 
investment industry practices on the standard of care provided 
to investors by persons providing investment advice, including 
the effect on low-income investors. (20 minutes)

              TEXT OF AMENDMENT TO H.R. 2374 MADE IN ORDER

 An Amendment To Be Offered by Representative Miller of California or 
                 His Designee, Debatable for 20 Minutes

  Page 1, line 5, strike ``After'' and insert ``(a) In 
General.--Except as provided in subsection (b), after''.

  Page 1, after line 14, insert the following:

  (b) Exception.--
          (1) In general.--The Secretary of Labor may issue a 
        rule that--
                  (A) establishes standards of care to improve 
                investment advice provided to participants and 
                beneficiaries under the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1001 et 
                seq.);
                  (B) requires that personalized investment 
                advice is provided in a fiduciary capacity that 
                is in the best interests of such participants 
                and beneficiaries;
                  (C) requires that, before receiving 
                investment advice, the compensation of 
                investment advisors and financial service 
                providers is clearly disclosed to such 
                participants and beneficiaries; and
                  (D) satisfies the requirements of paragraph 
                (3).
          (2) Process.--The Secretary of Labor may issue a rule 
        pursuant to paragraph (1)--
                  (A) after coordination and consultation with 
                the Securities and Exchange Commission; and
                  (B) after considering surveys and data on 
                investment education and investment advice.
          (3) Participant investment education; appraisals.--
        The rule issued pursuant to paragraph (1) shall provide 
        standards of conduct for--
                  (A) participant investment education;
                  (B) access to reliable investment education 
                and investment advice to traditionally 
                underserved communities;
                  (C) reasonable compensation for investment 
                advisors and financial service providers; and
                  (D) fair market value appraisals of stock 
                held by employee stock ownership plans to 
                employers, participants, and beneficiaries 
                under the Employee Retirement Income Security 
                Act of 1974 (29 U.S.C. 1001 et seq.).

  At the end of the bill, insert the following:

SEC. 4. REPORTS ON THE IMPACT OF PRACTICES OF PERSONS WHO PROVIDE 
                    INVESTMENT ADVICE.

  (a) In General.--Not later than 90 days after the date of 
enactment of this Act, the Secretary of Labor shall report to 
Congress on how certain practices of persons who provide 
investment advice affect the standard of care exercised in 
relation to investors.
  (b) Report Requirements.--Such report shall--
          (1) describe how the structure of compensation for 
        persons who provide investment advice affects the 
        standard of care exercised by such persons, including--
                  (A) practices involving fees paid from 
                investment vehicles to such persons; and
                  (B) other forms of compensation paid to such 
                persons that are not dependent upon the 
                investor's return;
          (2) compare the standards of care exercised by 
        persons who provide investment advice to low-income and 
        middle-class investors with the standards of care 
        exercised by persons who provide investment advice to 
        high-income investors, and the effect such standards of 
        care have on the investment vehicles selected by 
        investors; and
          (3) evaluate the extent to which the standard of care 
        used by persons who provide investment advice affects 
        the adequacy of investment returns to provide for 
        retirement for investors.

                                  
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