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Senators Target ‘Retirement Advice Gag Rule’

A group of Republican senators has introduced a resolution to stop the Department of Labor’s (DOL) new conflict-of-interest rule.

The resolution (S.J. Res. 33), which Sen. Johnny Isakson (R-Ga.) introduced April 18, has 37 co-sponsors, including Sens. Lamar Alexander (R-Tenn.) and Mike Enzi (R-Wyo.). According to a press release from Isakson’s office, the disapproval was filed under the Congressional Review Act (CRA) to reject the administration’s new so-called “Retirement Advice Gag Rule.” The resolution has been referred to the Senate Health, Education, Labor and Pensions Committee.

If approved (and, as noted below, that’s by no means an easy lift), the resolution of disapproval would allow Congress to stop the DOL 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 if the president vetoes a disapproval resolution.

The CRA provides that the House and Senate vote on a joint resolution of disapproval to stop a federal agency from implementing a rule or regulation or issuing a substantially similar regulation without congressional authorization; it has the full force of law. Only a simple majority is needed to pass a resolution of disapproval, and it cannot be filibustered or amended, if Congress takes the action within the 60-day window. The president must sign the resolution of disapproval, 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 DOL 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 DOL’s “persuader” rule.