Yesterday, Senators Cory Booker, Richard Durbin, Sherrod Brown, Christopher Coons, Patrick Leahy and Elizabeth Warren sent a letter to Acting SEC Chair Michael Piwowar to “express our deep concern about your recent instruction to halt enforcement of key parts of the conflict minerals rule.”
The group accused the Acting Chair of side-stepping required rule-making processes:
Any steps to repeal or modify the requirements of the law require action by Congress. Any attempt to modify the rule requires a transparent, formal review and opportunity to comment by all stakeholders. An irregular, ad hoc process inviting comments on an Acting Chairman’s statement is no substitute for this process. As Acting Chairman you do not have the authority to halt enforcement.
In addition, the letter attacked the scope of the suspension compared to the more limited scope of the final NAM v. SEC decision on the First Amendment issue:
While your statement effectively suspends enforcement of all due diligence requirements under Section 1502, the court’s decision invalidated only one specific, severable component of the Conflict Minerals Rule. The inquiry and due diligence measures on source and chain of custody are separate and distinct, and they must each be enforced, In fact, when the National Association of Manufacturers requested a stay of the law, the court explicitly denied the request to affirm that the rest of the rule’s requirements were not severable from the requirement found to be unconstitutional.
In conclusion, the group asked the Acting Chair to “immediately to rescind your directive, and allow full enforcement of the conflict minerals law and rule.”
One interesting aspect of the letter is that two of the six signing Senators participated in the April 5, 2017 hearing on the conflict minerals rule held by the Senate Foreign Relations Committee’s Subcommittee on Africa and Global Health Policy. During the hearing, Senator Booker also read a statement from Senator Durbin into the record as well.