US Senate Advances 1071 Resolution
Posted: Oct 25 2023
The US Senate has passed S.J.Res.32, A Congressional Review Act (CRA) joint resolution providing for congressional disapproval of the Dodd Frank Section 1071 rule submitted by the Bureau of Consumer Financial Protection relating to Small Business Lending Under the Equal Credit Opportunity Act (Regulation B). The Congressional Review Act (CRA) is a tool that Congress may use to overturn rules issued by federal agencies.
If the US House passes the resolution and President Biden signs it, the Section 1071 rule will not go into effect. SJR 32 has 45 Republican Senate cosponsors including Senator Cramer and Senator Hoeven and passed with a bipartisan vote of 53-44 with four Democrats voting in favor of it. The US House will likely move the Resolution quickly once it makes its way to that Chamber.
The big hurdle for this to become law, is President Biden’s willingness to sign it. The President has not made any public statements on Section 1071, but we would expect him to veto the resolution. It will then be up to Congress to attempt to override his veto.