SEC Regulatory Accountability Act - (Sec. 2) Amends the Securities Exchange Act of 1934 to direct the Securities and Exchange Commission (SEC), before issuing a regulation, to: (1) identify and evaluate the significance of the problem that the proposed regulation is designed to address in order to assess whether any new regulation is warranted; (2) use the SEC Chief Economist to assess the costs and benefits of the intended regulation and adopt it only upon a reasoned determination that its benefits justify the costs; (3) identify and assess available alternatives that were considered; and (4) ensure that any regulation is accessible, consistent, written in plain language, and easy to understand.
Requires the SEC to: (1) consider whether the rulemaking will promote efficiency, competition, and capital formation; (2) consider the impact of the regulation upon investor choice, market liquidity and small business; (3) explain in its final rule the nature of comments received concerning the proposed rule or rule change; and (4) respond to those comments, explaining any changes made in response, and the reasons that it did not incorporate industry group concerns regarding potential costs or benefits.
Directs the SEC to: (1) review its regulations and orders periodically to determine if they are outmoded, ineffective, insufficient, or excessively burdensome; and (2) modify, streamline, expand, or repeal them.
Requires the SEC, whenever it adopts or amends a major rule, to state in its adopting release: (1) the purposes and intended consequences of the regulation, (2) the post-implementation quantitative and qualitative metrics to measure the economic impact of the regulation and the extent to which it has accomplished the stated purposes, (3) the assessment plan that will be used under the supervision of the Chief Economist to assess whether the regulation has achieved those purposes, and (4) any foreseeable unintended or negative consequences.
Requires the assessment plan to: (1) consider the costs, benefits, and intended and unintended consequences of the regulation; and (2) specify the data to be collected, the methods for its collection and analysis, and an assessment completion date.
Waives notice and comment requirements for the data collection if the SEC has published its assessment plan for notice and comment at least 30 days before adoption of a final regulation or amendment.
(Sec. 3) Requires the SEC to report to specified congressional committees a plan to subject to the requirements of this Act the Public Company Accounting Oversight Board, the Municipal Securities Rulemaking Board, and any registered national securities association.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2308 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 2308
To improve the consideration by the Securities and Exchange Commission
of the costs and benefits of its regulations and orders.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 23, 2011
Mr. Garrett (for himself, Mr. Bachus, Mr. Hensarling, Mr. Neugebauer,
Mr. Jones, Mr. McHenry, Mr. Conaway, Mr. King of New York, Mr.
Campbell, Mr. Schweikert, Mr. Stivers, Mr. Dold, Mr. Manzullo, Mr.
Hurt, Mr. Canseco, and Mr. Yoder) introduced the following bill; which
was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To improve the consideration by the Securities and Exchange Commission
of the costs and benefits of its regulations and orders.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``SEC Regulatory Accountability Act''.
SEC. 2. CONSIDERATION BY THE SECURITIES AND EXCHANGE COMMISSION OF THE
COSTS AND BENEFITS OF ITS REGULATIONS AND ORDERS.
Section 23 of the Securities Exchange Act of 1934 (15 U.S.C. 78w)
is amended by adding at the end the following:
``(e) Consideration of Costs and Benefits.--
``(1) In general.--Before promulgating a regulation under
the securities laws, as defined in section 3(a), or issuing any
order pursuant to such laws, the Commission shall--
``(A) clearly identify the nature of the problem
that the proposed regulation is designed to address, as
well as assess the significance of that problem, to
enable assessment of whether any new regulation is
warranted;
``(B) utilize the Office of the Chief Economist to
assess the costs and benefits, both qualitative and
quantitative, of the intended regulation or order and
propose or adopt a regulation or order only on a
reasoned determination that the benefits of the
intended regulation or order justify the costs of the
intended regulation or order; and
``(C) ensure that any regulation or order is
accessible, consistent, written in plain language, and
easy to understand and shall measure, and seek to
improve, the actual results of regulatory requirements.
``(2) Considerations.--In deciding whether and how to
regulate, the Commission shall assess the costs and benefits of
available regulatory alternatives, including the alternative of
not regulating. In addition, the Commission may also take the
following actions in making a reasoned determination of the
costs and benefits of a potential regulation--
``(A) assess the best ways of protecting market
participants and the public;
``(B) take into consideration investor choice;
``(C) consider the impact on capital formation;
``(D) evaluate the effect on the efficiency,
competitiveness, and financial integrity of securities
markets;
``(E) consider the impact on market liquidity in
the securities markets;
``(F) take into consideration price discovery;
``(G) evaluate sound risk management practices;
``(H) evaluate the degree and nature of the risks
posed by various activities within the scope of its
jurisdiction;
``(I) determine whether, consistent with obtaining
regulatory objectives, the regulation is tailored to
impose the least burden on society, including market
participants, individuals, businesses of differing
sizes, and other entities (including State and local
governmental entities), taking into account, to the
extent practicable, the cumulative costs of
regulations;
``(J) determine whether the regulation is
inconsistent, incompatible, or duplicative of other
Federal regulations; and
``(K) determine whether, in choosing among
alternative regulatory approaches, those approaches
maximize net benefits.
``(3) Review of existing regulations.--The Commission shall
periodically review its regulations and orders in effect before
the date of enactment of this subsection to determine whether
any such regulations or orders are outmoded, ineffective,
insufficient, or excessively burdensome, and shall modify,
streamline, expand, or repeal them in accordance with such
review.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Capital Markets and Government Sponsored Enterprises.
Committee Hearings Held.
Subcommittee Consideration and Mark-up Session Held.
Forwarded by Subcommittee to Full Committee (Amended) by the Yeas and Nays: 19 - 15 .
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by the Yeas and Nays: 30 - 26.
Reported (Amended) by the Committee on Financial Services. H. Rept. 112-453.
Reported (Amended) by the Committee on Financial Services. H. Rept. 112-453.
Placed on the Union Calendar, Calendar No. 317.
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