H.R. 2990 - Credit Rating Agency Duopoly Relief Act of 2006

COMMITTEE ACTION:   REPORTED BY A VOICE VOTE, on Monday July 10, 2006. 
FLOOR ACTION: ADOPTED BY THE YEAS AND NAYS 308-113 AFTER AGREEING TO THE PREVIOUS QUESTION BY THE YEAS AND NAYS 223-197, on Wednesday July 12, 2006.

MANAGERS: CAPITO/MATSUI

109th Congress
2nd Session

H.RES. 906

[Report No. 109- 550]

 

 

H.R. 2990 - CREDIT RATING AGENCY DUOPOLY RELIEF ACT OF 2006

1. Structured rule.

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

3. Waives all points of order against consideration of the bill.

4. Provides that the amendment in the nature of a substitute recommended by the Committee on Financial Services now printed in the bill shall be considered as an original bill for the purpose of amendment and shall be considered as read.

5. Makes in order only those amendments printed in the Rules Committee report accompanying the resolution.

6. Provides that the amendments printed in the report may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for the time specified in the report 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 in the House or in the Committee of the Whole.

7. Waives all points of order against the amendments printed in the report.

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

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RESOLUTION

Resolved, That at any time after the adoption of this resolution the Speaker may, pursuant to clause 2(b) of rule XVIII, declare the House resolved into the Committee of the Whole House on the state of the Union for consideration of the bill (H.R. 2990) to improve ratings quality by fostering competition, transparency, and accountability in the credit rating agency industry. The first reading of the bill shall be dispensed with. All points of order against consideration of the bill are waived. General debate shall be confined to the bill and shall not exceed one hour equally divided and controlled by the chairman and ranking minority member of the Committee on Financial Services. After general debate the bill shall be considered for amendment under the five-minute rule. It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute recommended by the Committee on Financial Services now printed in the bill. The committee amendment in the nature of a substitute shall be considered as read. Notwithstanding clause 11 of rule XVIII, no amendment to the committee amendment in the nature of a substitute shall be in order except those printed in the report of the Committee on Rules accompanying this resolution. Each such amendment may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for the time specified in the report 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 in the House or in the Committee of the Whole. All points of order against such amendments are waived. At the conclusion of consideration of the bill for amendment the Committee shall rise and report the bill to the House with such amendments as may have been adopted. Any Member may demand a separate vote in the House on any amendment adopted in the Committee of the Whole to the bill or to the committee amendment in the nature of a substitute. The previous question shall be considered as ordered on the bill and amendments thereto to final passage without intervening motion except one motion to recommit with or without instructions.

 

 

SUMMARY OF AMENDMENTS TO BE MADE IN ORDER
(summaries derived from information provided by sponsors)

 

1. Oxley (OH)
Manager’s Amendment. Clarifies that there is no private right of action for rating agencies registered as “Nationally Recognized Statistical Rating Organizations” or “NRSROs” under the Securities Exchange Act of 1934. Allots to the Securities and Exchange Commission (SEC) an additional six months for a total of one year to review and, if necessary, revise its regulations that use the term “NRSRO.” Makes a number of technical amendments clarifying definitions, findings, and disclosure requirements. (10 minutes)

2. Kanjorski (PA):
Amendment in the Nature of a Substitute. Establishes a globally consistent, market-based approach to rating agency oversight and protects investors by maintaining quality as a factor in identifying Nationally Recognized Statistical Rating Organizations (NRSRO). Requires the SEC to complete its definitional rulemaking on what constitutes an NRSRO within 60 days of enactment and establish public guidelines about the process used to identify new NRSROs within 180 days of enactment. Encourages participating parties to expedite and complete their ongoing discussions over the Voluntary Framework, consistent with the European Commission’s adoption of the International Organization of Securities Commissions self-regulatory model, to improve market discipline and enhance rating quality. Would require annual hearings for five years on rating agencies before the House Financial Services Committee to explore the effectiveness of the prior two reforms and determine the need for further action.(20 minutes)

 

 

TEXT OF THE AMENDMENTS
(summaries derived from information provided by sponsors)

1. Oxley (OH) #2

2. Kanjorski (PA) #1