Bill Text: NJ AR151 | 2010-2011 | Regular Session | Introduced
Bill Title: Memorializes Congress and Commodity Futures Trading Commission to take action to effectively regulate energy derivatives and prevent distortion of oil prices.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Passed) 2011-05-10 - Filed with Secretary of State [AR151 Detail]
Download: New_Jersey-2010-AR151-Introduced.html
Sponsored by:
Assemblyman ALBERT COUTINHO
District 29 (Essex and Union)
SYNOPSIS
Memorializes Congress and Commodity Futures Trading Commission to take action to effectively regulate energy derivatives and prevent distortion of oil prices.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution memorializing Congress and the federal Commodity Futures Trade Commission to take certain actions to more effectively regulate energy derivatives and combat distorted oil prices caused by investor speculation.
Whereas, In order to travel, engage in commerce, and meet their general energy needs, the residents of New Jersey and the American public at large depend on a reliable and affordable supply of oil; and
Whereas, In just three months, the cost of oil has dramatically risen from $85 per barrel in February 2011 to $110 per barrel in April 2011, causing a sharp rise in gasoline prices across the nation; and
Whereas, The increased cost of fuel impedes economic recovery by stifling the operations of industry, frustrating the flow of commerce, and worsening the day-to-day financial burdens of American families who are already strained under the pressures of economic downturn; and
Whereas, Current oil prices are artificially high as the result of rampant, unchecked speculation in energy futures markets; and
Whereas, Investor-only speculators have undermined the ability of true end-users to employ the legitimate use of oil futures and other such derivatives as a means of managing risk; and
Whereas, On July 21, 2010, President Barack Obama signed into law the "Dodd-Frank Wall Street Reform and Consumer Protection Act," which contains various measures aimed at reducing the ill effects of commodity speculation, including a call for aggregate position limits on speculative oil traders; and
Whereas, The Commodity Futures Trading Commission (CFTC) is the federal agency charged with ensuring that futures markets remain free of fraud, manipulation, abusive practices, and systemic risks related to various commodity derivatives; and
Whereas, The CFTC has proposed federal regulations regarding position limits and other such measures aimed at limiting the negative effects of speculation in oil futures markets, and these regulations now await final adoption by the Commissioners of the CFTC; and
Whereas, The President's fiscal year 2012 budget calls for $308 million in funding for the CFTC in order to allow for continued fulfillment of its mission and further implementation of the "Dodd-Frank Wall Street Reform and Consumer Protection Act"; and
Whereas, Legislation now pending before Congress as H.R.1573 threatens to delay much needed reform in the derivatives marketplace; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. The Congress of the United States is respectfully memorialized to appropriate $308 million to the Commodity Futures Trading Commission (CFTC) in accordance with the President's fiscal year 2012 budget request, and further memorialized to oppose H.R.1573, which, if passed, would delay much needed reform in the derivatives marketplace.
2. The Commissioners of the Commodity Futures Trade Commision are respectfully memorialized to vote in favor of final adoption of the CFTC's proposed regulations regarding position limits and other such measures aimed at limiting the negative effects of speculation in oil futures markets.
3. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested by the Clerk thereof, shall be transmitted to the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, every member of Congress elected from this State, and each Commissioner of the federal Commodity Futures Trade Commission.
STATEMENT
This resolution would memorialize the federal government to take action to regulate oil futures and other such derivatives so as to combat artificially high prices of oil that result from unrestrained investor speculation. To this end, this resolution would specifically memorialize Congress to adhere to the President's fiscal year 2012 budget request by appropriating $308 million to the federal agency charged with regulating oil futures markets, the Commodity Futures Trade Commission (CFTC). In addition, this resolution would memorialize Congress to oppose passage of H.R.1573, which would otherwise delay much needed reforms in the derivatives marketplace. Finally, this resolution would urge the Commissioners of the CFTC to vote in favor of final adoption of certain proposed CFTC regulations that call for position limits and other such measures aimed at limiting the negative effects of speculation in oil futures markets.
