This Week in Legislation

Week of September 12

·       This week, both the U.S. House and U.S. Senate are in session for legislative business. While neither chamber is expected to consider student financial aid-related legislation, the House will consider H.R. 5587, the Strengthening Career and Technical Education for the 21^st Century Act, which would allow states and school districts to use federal funds to improve career guidance and academic counseling programs that assist students in making informed academic and career and technical education decisions.

·        Today through Friday, all day, U.S. Secretary of Education John King, Jr., U.S. Under Secretary of Education Ted Mitchell, Deputy Under Secretary of Education Kim Hunter Reed, and other senior Department of Education officials launch the seventh and final back-to-school bus tour to celebrate progress in communities and states across the country. Discussion topics include: America’s College Promise, the College Scorecard, the Free Application for Federal Student Aid, and college access, affordability, and completion. This year’s “Opportunity Across America” tour will include stops in Washington, D.C.; Charlottesville, VA; Bristol, Knoxville, Chattanooga, and Memphis, TN; Harvest, AL; Little Rock, AR; Indianola, MS; and Monroe, Baton Rouge, and New Orleans, LA. For a detailed schedule of events and topics, visit the Department’s website.

·       Today through Wednesday, all day, Strategic Insight and PLANADVISER host the fourth annual 529 Conference titled, “College Financial Planning: Creating Growth Through Collaboration,” in Orlando, FL. Highlights of the conference include: a 529 Essentials Seminar, a special ABLE Deep-Dive Afternoon Summit, legislative and regulatory updates, insights from top broker/dealer gatekeepers, innovative marketing and employer strategies, omnibus pros and cons for business and operations, ranking and creating optimal fund lineups, and emerging technology in the retail channel. For details and to register, visit the 529 Conference website.

·       On Tuesday at 10:00 a.m., the House Financial Services Committee considers H.R. 5983, the Financial CHOICE Act of 2016. The comprehensive bill would:

o   Reestablish the Consumer Financial Protection Bureau (CFPB) as an independent agency outside of the Federal Reserve led by a bipartisan, five-member Consumer Financial Opportunity Commission. The Commission would have a dual mission of protecting consumers by enforcing the law and promoting market competition, be funded through the annual congressional appropriations process, and subject to an independent, Senate-confirmed Inspector General.

o   Provide defendants in administrative actions the right to remove cases to federal court, clarify that Dodd’s Frank three-year statute of limitations applies to such actions, repeal the requirement that reviewing courts defer to CFPB statutory interpretations where in conflict with other federal agencies, increase the threshold for bank supervision from $10 billion to $50 billion, create an advisory opinion process, and create a small business advisory board.

o   Repeal the CFPB’s authority to ban products or services it deems abusive, repeal the authority to prohibit arbitration clauses in financial services contracts, and repeal the authority for the federal government to assign credit ratings to private firms.

o   Require verification of the accuracy of the CFPB’s complaint data before posting complaints publicly on its database and require permission before collecting personally identifiable information on consumers.

o   Require the Federal Reserve’s Federal Open Market Committee (FOMC) to describe how its policy rate decisions compare to a well-known standard, require a rotation of the Fed’s 12 district bank presidents, require the Board of Governors’ Chair to testify before Congress on a quarterly basis, and provide for an annual audit of the Board of Governors and Federal Reserve Banks.

o   Require that all major financial regulations (those likely to result in 1) an annual economic impact of more than $100 million, 2) a major increase in prices for consumers or costs for businesses, or 3) significant adverse effects on competition, employment, investment, productivity, or innovation) receive affirmative congressional approval before becoming effective.

o   Repeal the Chevron doctrine requiring judicial deference to agency interpretations by altering the standard of judicial review in the Administrative Procedure Act as it relates to financial regulatory agencies.

o   End “Operation Choke Point” by placing conditions on agency customer account termination and requests and subpoenas.

o   Reauthorize the Securities and Exchange Commission for five years.

·       On Tuesday at 10:00 a.m., the House Ways and Means Subcommittee on Oversight holds a hearing entitled, “Back to School: A Review of Tax-Exempt College and University Endowments.” Members will hear from college and university representatives and other experts on how higher education tuition has increased rapidly and how some institutions are using their tax-exempt endowments to fulfill charitable purposes and reduce costs for students. Witnesses will be announced at a later date.

·       On Tuesday starting at 1:00 p.m., NCHER and Education Finance Council (EFC) host a fly-in to highlight the importance of tax-exempt financing. The event includes a Congressional staff briefing titled, “Why are Tax-Exempt Bonds Critical for Student Success?” Participants in the briefing include: Thomas Graf, Executive Director, Massachusetts Educational Financing Authority; Ben Litle, Executive Vice President and Chief Operating Officer, Brazos Higher Education Servicing Corporation; Jordan Ballard, Legislative Assistant, Rep. Bill Flores (R-TX); and (moderator) Dr. Debra Chromy, President, EFC.

 

·       On Wednesday at 10:00 a.m., the House Budget Committee holds a hearing entitled, “Growing Risks to the Budget and the Economy.” Witnesses include: Dr. Douglas Holtz-Eakin, President, American Action Forum, and John Cochrane, Senior Fellow, Hoover Institution.

·       On Wednesday at 2:30 p.m., the Senate Budget Committee holds a hearing titled, “Oversight of the Congressional Budget Office (CBO).” The hearing’s sole witness will be Dr. Keith Hall, Director, CBO.

·       On Thursday at 3:00 p.m., New America and Washington Monthly host a panel discussion titled, “The Most Innovative People in Higher Education.” Participants will share their ideas to find inventive ways of providing more students of modest means with quality degrees at affordable prices. Participants include: Charles Isbell, ‪Professor and Senior Associate Dean, Georgia Institute of Technology; Bridget Burns, Executive Director, University Innovation Alliance; Amy Laitinen, Director for Higher Education, Education Policy Program, New America; Jamie P. Merisotis, President and Chief Executive Officer, Lumina Foundation; and Paul Glastris, Editor-in-Chief, Washington Monthly. For details and to register, visit the New America website.

 

This information is shared by SASFAA's Legislative Affairs' Committee and NCHER.