39–008 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 113–476 

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 4413) TO REAUTHORIZE THE COMMODITY FUTURES TRADING COMMISSION, TO BETTER PROTECT FUTURES CUSTOMERS, TO PROVIDE END USERS WITH MARKET 

CERTAINTY, TO MAKE BASIC REFORMS TO ENSURE TRANSPARENCY 

AND ACCOUNTABILITY AT THE COMMISSION, TO HELP FARMERS, 

RANCHERS, AND END USERS MANAGE RISKS TO HELP KEEP CONSUMER 

COSTS LOW, AND FOR OTHER PURPOSES 

JUNE 18, 2014.—Referred to the House Calendar and ordered to be printed 

Mr. SESSIONS, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 629] 

The Committee on Rules, having had under consideration House 

Resolution 629, by a record vote of 8 to 2, report the same to the 

House with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 4413, the Customer Protection and End User Relief Act, under a structured rule. 

The resolution provides one hour of general debate equally divided 

and controlled by the chair and ranking minority member of the 

Committee on Agriculture. The resolution waives all points of order 

against consideration of the bill. The resolution makes in order as 

original text for purpose of amendment an amendment in the nature of a substitute consisting of the text of Rules Committee Print 

113–47 and provides that it shall be considered as read. The resolution waives all points of order against that amendment in the nature of a substitute. The resolution makes in order only those further amendments printed in this report. Each such amendment 

may be offered only in the order printed in this report, may be offered only by a Member designated in this report, shall be considered as read, shall be debatable for the time specified in this 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. The resolution waives all points of order 

against the amendments printed in this report. The resolution provides one motion to recommit with or without instructions. 


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EXPLANATION OF WAIVERS

Although the resolution waives all points of order against consideration of the bill, the Committee is not aware of any points of 

order. The waiver is prophylactic in nature. 

The waiver of all points of order against the amendment in the 

nature of a substitute to H.R. 4413 made in order as original text 

includes a waiver of clause 7 of rule XVI, requiring that no motion 

or proposition on a subject different from that under consideration 

shall be admitted under color of amendment. Provisions contained 

in Rules Committee Print 113–47 fall outside of the jurisdiction of 

the Committee on Agriculture. 

Although the resolution waives all points of order against the 

amendments printed in this report, the Committee is not aware of 

any points of order. The waiver is prophylactic in nature. 

COMMITTEE VOTES

The results of each record vote on an amendment or motion to 

report, together with the names of those voting for and against, are 

printed below: 

Rules Committee record vote No. 142 

Motion by Ms. Slaughter to divide the debate time equally between the Committees on Agriculture and Financial Services. Defeated: 2–8 

Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Nay Ms. Slaughter .................................................. Yea 

Mr. Bishop of Utah .......................................... Nay Mr. McGovern ................................................... ...................

Mr. Cole ............................................................ Nay Mr. Hastings of Florida ................................... Yea 

Mr. Woodall ...................................................... Nay Mr. Polis ........................................................... ...................

Mr. Nugent ....................................................... Nay 

Mr. Webster ...................................................... Nay 

Ms. Ros-Lehtinen ............................................. ...................

Mr. Burgess ...................................................... Nay 

Mr. Sessions, Chairman ................................... Nay 

Rules Committee record vote No. 143 

Motion by Mr. Hastings of Florida to report an open rule. Defeated: 2–8 

Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Nay Ms. Slaughter .................................................. Yea 

Mr. Bishop of Utah .......................................... Nay Mr. McGovern ................................................... ...................

Mr. Cole ............................................................ Nay Mr. Hastings of Florida ................................... Yea 

Mr. Woodall ...................................................... Nay Mr. Polis ........................................................... ...................

Mr. Nugent ....................................................... Nay 

Mr. Webster ...................................................... Nay 

Ms. Ros-Lehtinen ............................................. ...................

Mr. Burgess ...................................................... Nay 

Mr. Sessions, Chairman ................................... Nay 

Rules Committee record vote No. 144 

Motion by Ms. Foxx to report the rule. Adopted: 8–2 

Majority Members Vote Minority Members Vote 

Ms. Foxx ............................................................ Yea Ms. Slaughter .................................................. Nay 

Mr. Bishop of Utah .......................................... Yea Mr. McGovern ................................................... ...................


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Majority Members Vote Minority Members Vote 

Mr. Cole ............................................................ Yea Mr. Hastings of Florida ................................... Nay 

Mr. Woodall ...................................................... Yea Mr. Polis ........................................................... ...................

Mr. Nugent ....................................................... Yea 

Mr. Webster ...................................................... Yea 

Ms. Ros-Lehtinen ............................................. ...................

Mr. Burgess ...................................................... Yea 

Mr. Sessions, Chairman ................................... Yea 

SUMMARY OF THE AMENDMENTS MADE IN ORDER

1. DeFazio (OR): Adds one requirement to the study on high frequency trading: Whether such trading increases market volatility, 

including short term market swings such as the ‘‘flash crash.’’ (10 

minutes) 

2. Jackson Lee (TX): Requires a study on entities regulated by 

the Commodities Futures Trading Commission. (10 minutes) 

3. DelBene (WA), Gibson (NY), Vargas (CA): Ensures that the 

Commission’s assessment of costs and benefits regarding rules and 

orders will be affirmed by a court unless that assessment is found 

to be an abuse of discretion. (10 minutes) 

4. Waters (CA): Prohibits judicial review of any consideration by 

the CFTC of the costs and benefits of its rules and orders. (10 minutes) 

5. Moore, Gwen (WI): Strikes Section 203, and replaces with the 

SENSE OF CONGRESS that the Commodities Future Trading 

Commission is already required by law to consider costs and benefits when promulgating rules and issuing orders, and is held accountable to this requirement by courts. (10 minutes) 

6. Jackson Lee (TX): Preserves existing law by striking ‘‘United 

States Court of Appeals for the District of Columbia Circuit or the 

United States Court of Appeals for the circuit,’’ and replaces with 

‘‘United States District Court for the District of Columbia or the 

United States District Court for the district.’’ (10 minutes) 

7. Fincher (TN): Directs the Comptroller General of the United 

States to conduct a study of the efficiencies in leasing and rental 

costs at the Commodity Futures Trading Commission. (10 minutes) 

8. Garrett (NJ): Exempts Registered Investment Companies 

(RICs) that are currently registered with the Securities and Exchange Commission (SEC) under the Investment Company Act of 

1940 from duplicative registration requirements with the Commodity Futures Trading Commission (CFTC). The SEC will continue to have full regulatory oversight and enforcement authority 

over RICs. Does not remove the jurisdiction and regulatory authority that the CFTC has over all futures, options and swaps transactions that the RICs invest in on behalf of their customers who 

are pensioners, retirees, and savers. (10 minutes) 

TEXT OF AMENDMENTS MADE IN ORDER

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE DEFAZIO

OF OREGON OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 10, after line 12, insert the following: 

(5) Whether such trading increases market volatility, including short term market swings. 


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2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE JACKSON

LEE OF TEXAS OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 10, after line 12, insert the following: 

SEC. lll. REPORT ON ENTITIES REGULATED BY THE CFTC. 

Not later than 2 years after the date of the enactment of this 

Act, the Commodity Futures Trading Commission shall submit to 

the Committees on Agriculture, Financial Services, and the Judiciary of the House of Representatives and the Committees on Agriculture, Nutrition, and Forestry, Banking, Housing, and Urban Affairs, and the Judiciary of the Senate a report examining the number of entities regulated by the Commodity Futures Trading Commission, and with respect to those entities, their size, practice models, and assets under management, and those rendered defunct via 

bankruptcy or obsolescence. 

3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE DELBENE

OF WASHINGTON OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 11, strike lines 5 through 7 and insert the following: 

Section 15(a) of the Commodity Exchange Act (7 U.S.C. 19(a)) is 

amended— 

(1) by striking paragraphs (1) and (2) and inserting the following: 

Page 12, line 22, strike the last period and insert ‘‘; and’’. 

Page 12, after line 22, insert the following: 

(2) by adding at the end the following: 

‘‘(4) JUDICIAL REVIEW.—Notwithstanding section 24(d), a 

court shall affirm a Commission assessment of costs and benefits under this subsection, unless the court finds the assessment to be an abuse of discretion.’’. 

4. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WATERS OF

CALIFORNIA OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 11, strike lines 5 through 7 and insert the following: 

Section 15(a) of the Commodity Exchange Act (7 U.S.C. 19(a)) is 

amended— 

(1) by striking paragraphs (1) and (2) and inserting the following: 

Page 12, line 22, strike the last period and insert ‘‘; and’’. 

Page 12, after line 22, insert the following: 

(2) by adding at the end the following: 

‘‘(4) JUDICIAL REVIEW.—This subsection is intended only to 

improve the internal management of the Commission and any 

estimate, analysis, statement, description or report prepared 

under this subsection, and any compliance or noncompliance 

with the provisions of this subsection, and any determination 

concerning the applicability of the provisions of this subsection 

shall not be subject to judicial review. No provision of this subsection shall be construed to create any right or benefit, substantive or procedural, enforceable at law by a party against 

the United States, its agencies, its officers, or any person.’’. 


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5. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE MOORE OF

WISCONSIN OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 11, strike line 1 and all that follows through page 12, line 

22, and insert the following: 

SEC. lll. SENSE OF THE CONGRESS. 

It is the sense of the Congress that the Commodity Futures 

Trading Commission is required by law to consider the costs and 

benefits when promulgating rules and issuing orders, and is held 

accountable to this requirement by our courts. Current law requires the Commission to conduct economic analyses pursuant to 

the Paperwork Reduction Act, the Congressional Review Act, and 

the Regulatory Flexibility Act, as other agencies do. Unlike any 

other financial regulator, the Commission is also bound by the 

Commodity Exchange Act to consider the protection of market participants and the public; the efficiency, competitiveness, and financial integrity of futures markets; price discovery; sound risk management practices; and other public interest considerations. Notably, the Federal courts hold the Commission accountable and vacate rulemaking that does not meet statutory requirements, as 

demonstrated by the ruling by a United States district court on the 

Commission’s rule on commodity position limits. 

6. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE JACKSON

LEE OF TEXAS OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 19, beginning on line 15, strike ‘‘United States Court of Appeals for the District of Columbia Circuit or the United States 

Court of Appeals for the circuit’’ and insert ‘‘United States District 

Court for the District of Columbia or the United States District 

Court for the district’’. 

7. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE FINCHER

OF TENNESSEE OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 24, after line 21, insert the following: 

SEC. lll. GAO STUDY ON COMMISSION LEASES. 

(a) The Comptroller General of the United States shall, in consultation with the Commodity Futures Trading Commission Inspector General, conduct a study and publish a report regarding achieving efficiencies in leasing and rental costs at the Commodity Futures Trading Commission. 

(b) The report shall be published within 90 days after the date 

of the enactment of this Act regarding achieving efficiencies in leasing and rental costs of buildings occupied by the Commodity Futures Trading Commission, and shall include recommendations to 

the Chairman of the Commodity Futures Trading Commission and 

the congressional committees of jurisdiction regarding the following: 

(1) Average occupancy rates and leasing costs of buildings 

across the Federal Government compared to those currently in 

effect with respect to buildings and locations occupied by the 

Commodity Futures Trading Commission; 


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(2) Changes to leasing authority that could achieve efficiencies, including the revocation of independent leasing authority and transfer of authority to the Administrator of General Services; 

(3) The recommendations and responses contained in the report by the Commodity Futures Trading Commission Inspector 

General, dated June 4, 2014. 

(4) Other related recommendations that would achieve efficiencies in leasing and rental costs of buildings currently occupied by the Commodity Futures Trading Commission. 

(5) Is the Commodity Futures Trading Commission violating 

any laws, including the Anti-Deficiency Act, by entering into 

these leases, particularly those with more than 5-year terms, 

and if so, how they can avoid violating Federal law in the future. 

(c) The Chairman of the Commodity Futures Trading Commission shall report to the congressional committees of jurisdiction 

within 60 days after receipt of the report as to whether the Chairman accepts or rejects each of the recommendations of the Comptroller General, and an explanation for each decision. 

8. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE GARRETT

OF NEW JERSEY OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 55, after line 2, insert the following: 

SEC. lll. TREATMENT OF CERTAIN FUNDS. 

(a) AMENDMENT TO THE DEFINITION OF COMMODITY POOL OPER- ATOR.—Section 1a(11) of the Commodity Exchange Act (7 U.S.C. 

1a(11)) is amended by adding at the end the following: 

‘‘(C)(i) The term ‘commodity pool operator’ does not include a person who serves as an investment adviser to an 

investment company registered pursuant to section 8 of 

the Investment Company Act of 1940 or a subsidiary of 

such a company, if the investment company or subsidiary 

invests, reinvests, owns, holds, or trades in commodity interests limited to only financial commodity interests. 

‘‘(ii) For purposes of this subparagraph only, the term ‘financial commodity interest’ means a futures contract, an 

option on a futures contract, or a swap, involving a commodity that is not an exempt commodity or an agricultural 

commodity, including any index of financial commodity interests, whether cash settled or involving physical delivery. 

‘‘(iii) For purposes of this subparagraph only, the term 

‘commodity’ does not include a security issued by a real estate investment trust, business development company, or 

issuer of asset-backed securities, including any index of 

such securities.’’. 

(b) AMENDMENT TO THE DEFINITION OF COMMODITY TRADING ADVISOR.—Section 1a(12) of such Act (7 U.S.C. 1a(12)) is amended by 

adding at the end the following: 

‘‘(E) The term ‘commodity trading advisor’ does not include a person who serves as an investment adviser to an 

investment company registered pursuant to section 8 of 


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the Investment Company Act of 1940 or a subsidiary of 

such a company, if the commodity trading advice relates 

only to a financial commodity interest, as defined in paragraph (11)(C)(ii) of this section. For purposes of this subparagraph only, the term ‘commodity’ does not include a 

security issued by a real estate investment trust, business 

development company, or issuer of asset-backed securities, 

including any index of such securities.’’. 

Æ 


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