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May 21, 2012
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Conflict Minerals — AAFA Testifies at Congressional Hearing on New SEC Conflict Minerals Regulations

The House Financial Services Committee held a hearing May 10 to discuss the Cost and Consequences of Dodd-Frank Section 1502, the so-called "conflict minerals" regulations, on American companies as well as the conflict ridden Democratic Republic of Congo (DRC). AAFA Executive Vice President Steve Lamar, testified on behalf of the apparel and footwear industry to help document the unintended consequences of the law, and the need for the pending regulations to undergo serious changes before they can be issued. In his testimony, Mr. Lamar expressed strong support of the intent of the law, to stop the funding of violence and conflict in the DRC through conflict minerals. However, Mr. Lamar noted that the mere fact that AAFA was even testifying — keeping in mind that this law was intended to flush conflict minerals out of the supply chains of the electronics industries — underscored the overly broad application of this law. Among the other witnesses was Mr. Frank Vargo of the National Association of Manufacturers and Mr. Steve Pudles, Chairman of the Association of Connecting Electronics Industries. The hearing attempted to address the potentially harmful results of Sec. 1502. The more than one dozen members of Congress present at the hearing expressed widely varying degrees of support or disapproval for the provision. (Abigail Manz/Steve Lamar)More

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