A group of Republican senators has introduced a resolution to stop the Labor Department’s new conflict-of-interest rule.
The resolution (S.J. Res. 33), sponsored by Sen. Johnny Isakson (R-Ga.), Lamar Alexander (R-Tenn.) and Mike Enzi (R-Wyo.), was introduced April 18. According to a press release, the disapproval was filed under the Congressional Review Act to reject the administration’s new so-called “Retirement Advice Gag Rule.”
If approved (and, as noted below, that’s by no means an easy lift), the resolution of disapproval would allow Congress to stop the Department of Labor from implementing the fiduciary regulation, which the senators say will deny retirement advice to low- and middle-income savers.
What’s Next?
The Office of Management and Budget has determined that the conflict-of-interest restrictions (RIN 1210-AB32) qualify as a “major rule” because they are likely to have an annual impact on the economy of $100 million or more. The CRA automatically delays major rules for 60 days, and extends the timeout period another 30 legislative days in the event that the president vetoes a disapproval resolution.
Under the Congressional Review Act, the House and Senate vote on a joint resolution of disapproval to stop, with the full force of law, a federal agency from implementing a rule or regulation or issuing a substantially similar regulation without congressional authorization. A resolution of disapproval only needs a simple majority to pass and cannot be filibustered or amended, if acted upon during a 60-day window. The resolution of disapproval must also be signed by the president or Congress can overturn a veto with a two-thirds vote in both the Senate and the House.
In the current Congress, and with the president firmly behind the Labor Department on the fiduciary regulation, the resolution wouldn’t seem to have much chance.
The disapproval resolution comes three days after House Republicans introduced a CRA challenge to the Labor Department's “persuader” rule.
