H. Res. 697: H.R. 3269 - Corporate and Financial Institution Compensation Fairness Act of 2009

COMMITTEE ACTION: REPORTED BY A VOICE VOTE on Thursday,  July 30, 2009.
FLOOR ACTION: ADOPTED BY A VOICE VOTE on Friday, July 31, 2009.

MANAGERS: McGovern/Sessions

111th Congress 
1st Session

H.RES 697

[Report No. 111-237]

 

H.R. 3269, the Corporate and Financial Institution Compensation Fairness Act of 2009

1.     Structured rule.

2.     Provides one hour of debate in the House equally divided and controlled by the chair and ranking minority member of the Committee on Financial Services.

3.     Waives all points of order against consideration of the bill except clauses 9 or 10 of rule XXI.

4.     Provides that the committee amendment in the nature of a substitute recommended by the Committee on Financial Services, now printed in the bill, shall be considered as adopted.

5.     Provides that the bill, as amended, shall be considered as read. 

6.     Waives all points of order against provisions of the bill, as amended.  This waiver does not affect the point of order available under clause 9 of rule XXI (regarding earmark disclosure).

7.     Makes in order the amendment printed in the report of the Committee on Rules if offered by Rep. Frank or his designee, which shall be considered as read, shall be separately debatable for 10 minutes equally divided and controlled by the proponent and an opponent, and shall not be subject to a demand for division of the question.

8.     Makes in order the amendment in the nature of a substitute printed in the report of the Committee on Rules, if offered by Representative Garrett of New Jersey or his designee, which shall be separately debatable for 30 minutes equally divided and controlled by the proponent and an opponent.

9.     Waives all points of order against the amendments printed in the report except for clauses 9 or 10 of rule XXI.

10. Provides one motion to recommit with or without instructions.

11. Provides that during consideration of an amendment printed in the report of the Committee on Rules accompanying this resolution, the Chair may postpone the question of adoption as though under clause 8 of rule XX.

12. Provides that in the engrossment of the bill, the Clerk is authorized to make technical and conforming changes to amendatory instructions.

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RESOLUTION

            Resolved, That upon the adoption of this resolution it shall be in order to consider in the House the bill (H.R. 3269) to amend the Securities Exchange Act of 1934 to provide shareholders with an advisory vote on executive compensation and to prevent perverse incentives in the compensation practices of financial institutions.  The first reading of the bill shall be dispensed with.  All points of order against consideration of the bill are waived except those arising under clause 9 or 10 of rule XXI.  The amendment in the nature of a substitute recommended by the Committee on Financial Services now printed in the bill shall be considered as adopted.  The bill, as amended, shall be considered as read.  All points of order against provisions of the bill, as amended, are waived.  The previous question shall be considered as ordered on the bill, as amended, to final passage without intervening motion except: (1) one hour of debate equally divided and controlled by the chairman and ranking minority member of the Committee on the Financial Services; (2) the amendment printed in the report of the Committee on Rules accompanying this resolution, if offered by Representative Frank of Massachusetts or his designee, which shall be considered as read, shall be separately debatable for 10 minutes equally divided and controlled by the proponent and an opponent, and shall not be subject to a demand for division of the question; (3) the amendment in the nature of a substitute printed in the report of the Committee on Rules, if offered by Representative Garrett of New Jersey or his designee, which shall be considered as read, and shall be separately debatable for 30 minutes equally divided and controlled by the proponent and an opponent; and (4) one motion to recommit with or without instructions.

            Sec. 2. All points of order against amendments printed in the report of the Committee on Rules accompanying this resolution are waived except those arising under clause 9 or 10 of rule XXI.

            Sec. 3.  During consideration of an amendment printed in the report of the Committee on Rules accompanying this resolution, the Chair may postpone the question of adoption as though under clause 8 of rule XX.

            Sec. 4.  In the engrossment of H.R. 3269, the Clerk is authorized to make technical and conforming changes to amendatory instructions

SUMMARY OF AMENDMENTS PROPOSED
TO BE MADE IN ORDER

1. Frank (MA) (#6)would strike language prohibiting clawbacks of executive compensation approved by shareholders and insert language prohibiting rules of financial regulators from requiring recovery of incentive-based pay under arrangements in effect on the date of enactment. (10 minutes) 

2. Garrett (NJ) (#1) Amendment in the nature of a substitute – would replace annual shareholder “say on pay” vote with a triennial vote on compensation for public companies, allow shareholders to opt out of “say on pay” provision, allow state law to preempt the bill regarding independent compensation committees, and strike Section 4 of the bill.  (30 minutes)