Legislative & Regulatory Update

​Republican defections and high drama in Congress as Mayorkas impeachment fails; input sought on regulatory reduction efforts; and FCCU & illegal texts. 

by John Alexander, Director of Legislative & Regulatory Affairs

Mayorkas Impeachment Fails
In a remarkable turn of events, a Republican-led initiative to impeach Homeland Security Secretary Alejandro Mayorkas came to an abrupt halt on Tuesday. The motion was narrowly defeated with a vote tally of 214-216. In an unexpected twist, three Republicans crossed party lines to vote against the measure alongside all present Democrats. A fourth Republican also voted no, albeit for procedural reasons, adding to the drama of the session.
The atmosphere in the chamber was charged, and as the vote momentarily balanced on a knife-edge at 215-215, another Republican lawmaker defected, sealing the fate of the impeachment resolution. The announcement of the vote's failure by Speaker Mike Johnson was met with jubilant cheers from the Democratic side, underscoring the high stakes and tense emotions surrounding the event.

Adding to the day's theatrics, Democratic Rep. Al Green made a dramatic entrance into the chamber, wheelchair-bound and donning hospital scrubs, directly from the hospital where he was recuperating from surgery. Green's return was a strategic move by Democratic leaders, aimed at ensuring their numbers were solid to thwart the impeachment bid. His decisive vote played a critical role in the outcome, highlighting the lengths to which parties are willing to go to secure a win in such tightly contested matters.

The failed impeachment vote was not the only setback for Speaker Johnson that day, as he also saw a separate resolution he supported, aimed at providing aid to Israel, fall short of the necessary votes for passage. This series of defeats underscores the volatile nature of the current political climate, and the challenges leaders face in navigating through it.

The attempt to impeach Mayorkas, a figure who has been at the center of Republican criticism over immigration policies and border security, was driven by accusations of his alleged "willful and systemic refusal to comply with the law" and "breach of public trust." However, a spokesperson for the Department of Homeland Security (DHS) denounced the impeachment as baseless, emphasizing the need for bipartisan cooperation rather than political theatrics.

The White House also condemned the impeachment efforts, labeling them as baseless and a distraction from real issues requiring bipartisan solutions. The strong defense mounted by Mayorkas and his allies, who deem the allegations as unfounded and the impeachment effort as unconstitutional and politically motivated, highlights the deep divisions and the politicization of policy issues.

As Republicans grappled with internal dissent and strategic missteps, the debate over the impeachment resolution showcased the complex interplay of politics, personal convictions, and the constitutional duties of lawmakers. Despite the resolution's failure, the motion to reconsider its vote signals the potential for further political skirmishing, reflecting the ongoing tensions and the charged atmosphere within the halls of Congress.

This episode not only underscores the contentious nature of current political debates but also serves as a reminder of the intricacies and unpredictability of legislative processes. As the dust settles, the focus returns to the broader issues at hand, including immigration policy and border security, with both sides calling for meaningful action beyond partisan confrontations.

Federal Bank Regulatory Agencies Seek Input on Regulatory Reduction Efforts
The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency have jointly announced an initiative to engage in a comprehensive review of regulatory requirements under their purview, with the aim of identifying and eliminating outdated, unnecessary, or unduly burdensome regulations for financial institutions, including credit unions. This initiative is part of a statutory requirement under the Economic Growth and Regulatory Paperwork Reduction Act of 1996, which mandates a decennial review process by the Federal Financial Institutions Examination Council and the federal bank regulatory agencies.

Key Notes:

• Objective: The primary goal is to streamline regulatory frameworks to ease the operational burden on financial institutions while maintaining the safety, soundness, and consumer protection standards that underpin the financial system.
• Process: The review process is structured around 12 distinct categories of regulations. The agencies are currently soliciting comments on the first set of categories, which include Applications and Reporting, Powers and Activities, and International Operations. Stakeholders are invited to provide feedback on how current regulations in these categories affect their operations and to suggest specific areas where regulatory requirements could be modified or repealed.
• Participation: Comments from the public are welcomed for 90 days following the announcement’s publication in the Federal Register. This open comment period presents a strategic opportunity for credit unions in the Dakota region to voice their concerns and suggestions regarding regulatory burdens that impact their daily operations and strategic objectives.
• Future Steps: Over the next two years, the agencies will extend the request for comments to the remaining regulatory categories. Additionally, the agencies plan to conduct outreach meetings, offering a direct forum for stakeholders to engage with regulatory officials. Details of these meetings will be announced, providing further opportunities for input.

 
TCPA One-to-One Consent Rule Effective January 2025
In a significant move to curb the rampant spread of unwanted and illegal text messages, the Federal Communications Commission (FCC) has enacted a new rule requiring mobile wireless providers to block texts from specific numbers identified by the Commission as sources of illegal texts. This rule, detailed in the FCC's latest Second Report and Order, is set to bring substantial changes to the way mobile service providers and consumers handle text messaging, effectively from March 26, 2024.

Under this new mandate, once the FCC notifies a wireless provider about illegal texts originating from a particular number, the provider must promptly block all messages from that number and confirm the action to the Commission's Enforcement Bureau. This move aims to significantly reduce the volume of spam and scam texts, which not only annoy consumers but also pose serious risks of fraud.

The FCC's decision also extends the protections of the National Do-Not-Call (DNC) Registry to include text messages, thereby requiring explicit consumer consent before sending marketing texts to wireless numbers listed on the DNC. This is a critical step in aligning text message marketing practices with those already established for phone calls, ensuring consumers have a clear and straightforward way to avoid unwanted solicitations.

In an effort to tackle the issue of email-to-text spam, a prevalent method for sending unsolicited messages, the FCC is encouraging providers to switch to an opt-in model for such services. This approach is expected to drastically cut down on the number of fraudulent texts, as it requires consumer consent before activating the service.

Addressing the misuse of consumer consent on comparison shopping websites, the FCC has tightened the rules around obtaining consent for robocalls and robotexts. Now, consent must be obtained from consumers one seller at a time, closing the "lead generator loophole" that previously allowed sellers to blanket consumers with unwanted communications based on dubious consent mechanisms.

The FCC has granted a limited waiver allowing providers to access the Reassigned Numbers Database (RND) to check if a number ordered to be blocked has been disconnected. This is designed to prevent accidental blocking of texts to new subscribers of previously problematic numbers, ensuring that lawful communications are not inadvertently stifled.

The FCC's actions, detailed in document FCC 23-107, not only demonstrate a commitment to protecting consumers from the nuisance and potential harm of illegal texts but also set a new standard for the responsibility of mobile providers in monitoring and controlling the content passing through their networks. With the implementation dates set for various aspects of this rule throughout 2024 and 2025, the industry and consumers alike are poised for a notable shift in the landscape of digital communications.

As always, feel free to contact John Alexander with any advocacy or regulatory concerns.