Overnight Regulation: Republicans move to block financial adviser rule

Welcome to Overnight Regulation, your daily rundown of news from the federal agencies, Capitol Hill and beyond. It’s Tuesday evening here in Washington.

Here’s the latest.

 

THE BIG STORY

The GOP is mounting a challenge to the Obama administration’s financial adviser rule.

Senate and House Republicans are turning to the Congressional Review Act to rollback the Labor Department’s so-called fiduciary rule, which requires investment advisers to disclose more information to ensure they are acting in the best interests of retirees.

{mosads}The Labor Department says the fiduciary rule will protect retirees from bad investment advice, but Republicans argue the rule will raise costs and make advice unaffordable for low-income Americans.

“Retirement planning is going to be available only to the rich under the Labor Department’s so-called ‘fiduciary’ rule, because many financial advisors won’t risk the new legal liability except for clients with big accounts,” said Senate Labor Chairman Lamar Alexander (R-Tenn.), who is leading efforts to roll back the rule.

The Congressional Review Act allows lawmakers to collectively reject the fiduciary rule, but Republicans may not have enough support to overcome a presidential veto.

Rep. Phil Roe (R-Tenn.) introduced a motion of disapproval Tuesday seeking to overturn the fiduciary rule. The measure was co-sponsored by Reps. Charles Boustany (R-La.) and Ann Wagner (R-Mo.), but it is likely to attracted the support of many more Republicans in the coming weeks. http://bit.ly/1StcVbI

The House Education and Workforce Committee will markup the disapproval measure on Thursday as Republicans look to speed it through Congress.

“Too many families are struggling to save for retirement,” Roe said in a statement. “That’s why it’s crucial Americans have access to the retirement advice they need to make the best decisions for the future.”

Dozens of Senate Republicans — led by Lamar Alexander (Tenn.), Johnny Isakson (Ga.), and Mike Enzi (Wyo.) — filed their own disapproval measure Monday. http://bit.ly/1QkSDth

Congress has 60 days from when the fiduciary rule was finalized on April 8 to overturn it with a simple majority vote in both the House and Senate.

But President Obama will likely veto the disapproval measure, and Republicans do not have the two-thirds majority they need to overcome that veto.

 

TOMORROW’S REGS TODAY

The Obama administration will publish 193 new regulations, proposed rules, notices and other administrative actions in Wednesday’s edition of the Federal Register.

–The Federal Trade Commission (FTC) will propose new rules under the Hobby Protection Act, which prevents manufacturers from passing off reproductions of antiques as originals, according to the agency. The FTC is looking to update the rule.

The public has until July 1 to comment. http://bit.ly/1rfVrny

–The Federal Communications Commission (FCC) will propose new privacy rules for Internet providers.

The privacy rules would protect the sensitive information of customers who use broadband Internet.

The public has until May 27 to comment. http://bit.ly/1YFqAuS

–The Fish and Wildlife Service (FWS) will issue new protections for certain flowers.

The FWS will issue a new recovery plan for the Vine Hill Clarkia, which is a flower endemic to California that was originally listed as an endangered species in 1997. 

The recovery plan establishes objectives that must be reached before the flower is delisted. http://bit.ly/23XeT67

 

ON TAP FOR WEDNESDAY

The House Energy and Commerce Select Investigative Panel of the Committee on Energy and Commerce will hold a hearing to discuss the pricing of fetal tissue. http://1.usa.gov/1Nbi2Lx

The House Small Business Committee will hold a hearing to discuss how cyber attacks threaten small businesses and the federal government. http://1.usa.gov/1qD2aqO

The Senate Homeland Security and Governmental Affairs Committee will hold a hearing to examine the administrative state and federal rulemaking. http://1.usa.gov/26dOtPI

The Senate Environment and Public Works Committee will hold a hearing to examine new approaches and innovative technologies to improve the water supply. http://1.usa.gov/1XzPBHz

  

NEWS RIGHT NOW 

House committee votes to change approval process for e-cigs http://bit.ly/1NkHSwB

Gun bill would help public challenge FBI background checks http://bit.ly/1S9cmli

Supreme Court split on allowing states to sue each other http://bit.ly/1NA454w

FDA launches campaign against smokeless tobacco http://bit.ly/1Sry2rX

Federal appeals court sides with transgender teen, says bathroom case can go forward – The Washington Post http://wapo.st/1XHkIB3

Veterans still can face long waits for care – if they get it at all – The Washington Post http://wapo.st/1SWPTEC

FBI defends the use of hackers at hearing with Apple – The New York Times http://nyti.ms/1WDYG3O

 

BY THE NUMBERS 

60: Number of days lawmakers have to overturn a rule from the Obama administration under the Congressional Review Act.

 

QUOTE OF THE DAY 

“How much longer will this inaction continue while our children are addicted to products newly invented and aimed directly at them?” Sen. Jeff Merkley (D-Ore.) asked on the Senate floor, denouncing FDA’s delay in releasing its final rule to regulate electronic cigarettes. 

 

We’ll work to stay on top of these and other stories throughout the week, so check The Hill’s Regulation page (http://digital-staging.thehill.com/regulation) early and often for the latest. And send any comments, complaints or regulatory news tips our way, tdevaney@digital-staging.thehill.com or lwheeler@digital-staging.thehill.com. And follow us at @timdevaney and @wheelerlydia.

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