,i  #aahth ,,congress  #b;d ,session    
,h4 ,r4 #hbci  ,,in ,,the ,,house ,,of  
,,representatives  ,may #b1 #bjbd ,mrs4 
,wagner 7for herself1 ,mr4 ,garbarino1  
,mr4 ,nunn of ,iowa1 ,mr4 ,meuser1 ,mr4 
,huizenga1 and ,mr4 ,emmer7 introduced  
the following bill2 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 regulations and orders of   
the ,commission4  #a4 ,short title ,this
 ,act may be cited as the ,,sec         
,regulatory ,accountability ,act4  #b4  
,consideration by the ,securities and   
,exchange ,commission of the costs and  
benefits of regulations and certain     
other agency actions of the ,commission 
,section #bc of the ,securities         
,exchange ,act of #aicd 7#ae ,u4,s4,c4  
#ghw7 is amended by adding at the end   
the following3  7e7 ,consideration of   
costs and benefits  7#a7 ,considerations
 before proposing a regulation ,before  

proposing a regulation1 the ,commission 
shall-- 7,a7 clearly identify the nature
 and source of the problem that the     
regulation is designed to address1 as   
well as assess the significance of that 
problem1 to enable assessment of whether
 any new regulation is warranted2 and   
7,b7 ensure that the regulation would be
 within the ,commission's jurisdiction  
and that the ,commission has sufficient 
experience and expertise to regulate the
 subject matter covered by the          
regulation4  7#b7 ,requirements for     
issuing a proposed or final regulation  
7,a7 ,in general ,in issuing a proposed 
or final regulation1 the ,commission    
shall--  7i7 clearly identify the market
 participants who will be impacted by   
the regulation2  7ii7 utilize the ,chief
 ,economist of the ,commission to assess
 the costs and benefits1 both           
qualitative and quantitative1 of the    
regulation1 both on the regulation's own
 and cumulatively with other existing   
and proposed regulations2  7iii7 only   

issue the regulation if the ,commission 
makes a reasoned determination that the 
benefits of the regulation justify the  
costs of the regulation2  7iv7 identify 
and assess available alternatives to the
 regulation that were considered1       
including modification of an existing   
regulation2  7v7 ensure that the        
regulation is accessible1 consistent1   
written in plain language1 and easy to  
understand2 and  7vi7 ensure that the   
length of the public comment period is  
commensurate with the complexity of the 
regulation and the expected public      
interest in the rulemaking4  7,b7       
,inclusion of information in a proposed 
or final regulation ,in issuing a       
proposed or final regulation1 the       
,commission shall include in the        
regulation-- 7i7 the results of the     
identifications and assessments required
 under clauses 7i7 and 7ii7 of          
subparagraph 7,a7 with respect to the   
regulation2  7ii7 an explanation of why 
the regulation meets the regulatory     

objectives of the ,commission more      
effectively than other available        
alternatives1 including modification of 
an existing regulation2  7iii7 a        
description of how the ,commission      
intends the regulation to interact with 
existing regulations and proposed       
regulations2 and  7iv7 a justification  
of the length of the public comment     
period for the regulation4  7#c7        
,considerations and actions  7,a7       
,required actions ,in deciding whether  
and how to regulate1 the ,commission    
shall assess the costs and benefits of  
available regulatory alternatives1      
including the alternative of not        
regulating1 and choose the approach that
 maximizes net benefits4 ,specifically1 
the ,commission shall--  7i7 consistent 
with the requirements of section #c7;f7 
7#ae ,u4,s4,c4 #gh;c7f771 section #b7;b7
 of the ,securities ,act of #aicc 7#ae  
,u4,s4,c4 #gg;b7b771 section #bjb7;c7 of
 the ,investment ,advisers ,act of #aidj
 7#ae ,u4,s4,c4 #hj;b-#b7;c771 and      

section #b7;c7 of the ,investment       
,company ,act of #aidj 7#ae ,u4,s4,c4   
#hj;a-#b7;c771 consider whether a       
rulemaking 7both on the regulation's own
 and cumulatively with other existing   
and proposed regulations71 in addition  
to being in the interest of protecting  
investors1 will promote efficiency1     
competition1 and capital formation2     
7ii7 evaluate whether1 consistent with  
obtaining regulatory objectives1 a      
regulation 7both on the regulation's own
 and cumulatively with other existing   
and proposed regulations7 is tailored to
 impose the least burden on society1    
including market participants1          
individuals1 businesses of differing    
sizes1 and other entities 7including    
,state and local governmental entities71
 taking into account1 to the extent     
practicable1 the cumulative costs of    
regulations2 and  7iii7 evaluate whether
 a regulation is inconsistent1          
incompatible1 or duplicative of other   
,federal regulations4  7,b7 ,additional 

considerations ,in addition1 in making a
 reasoned determination under paragraph 
7#b77;,a77iii7 of the costs and benefits
 of a regulation1 the ,commission shall1
 to the extent that each is relevant to 
the particular regulation1 take into    
consideration the impact of the         
regulation on--  7i7 investor choice2   
7ii7 market liquidity in the securities 
markets2  7iii7 small businesses2  7iv7 
competition in the marketplace2  7v7    
investor access2 and  7vi7 the ,united  
,states economic competitiveness4  7#d7 
,post-adoption impact assessment  7,a7  
,in general ,whenever the ,commission   
issues a final regulation that is a     
major rule 7as defined under section    
#hjd of title #e1 ,united ,states       
,code71 it shall state1 in the          
regulation1 the following3 7i7 ,the     
purposes and intended consequences of   
the regulation4  7ii7 ,appropriate      
post-implementation quantitative and    
qualitative metrics to measure the      
economic impact of the regulation and to

 measure the extent to which the        
regulation has accomplished the stated  
purposes4  7iii7 ,the assessment plan   
that will be used1 consistent with the  
requirements of subparagraph 7,b7 and   
under the supervision of the ,chief     
,economist1 to assess whether the       
regulation has achieved the stated      
purposes4  7iv7 ,any unintended or      
negative consequences that the          
,commission foresees may result from the
 regulation4  7,b7 ,requirements of     
assessment plan and report  7i7         
,requirements of plan ,for each         
regulation described under subparagraph 
7,a71 the ,chief ,economist shall       
establish an assessment plan1 which     
shall--  7,i7 consider the costs1       
benefits1 and intended and unintended   
consequences of the regulation2  7,,ii7 
specify the data to be collected1 the   
methods for collection and analysis of  
the data1 and a date for completion of  
the assessment2 and  7,,iii7 include an 
analysis of any jobs added or lost as a 

result of the regulation1               
differentiating between public and      
private sector jobs4  7ii7 ,timing of   
assessment plan report ,a report on each
 completed assessment plan described    
under clause 7i7 shall be submitted by  
the ,chief ,economist to the ,commission
 not later than the end of the #d-year  
period beginning on the date the        
applicable regulation is issued1 unless 
the ,commission1 at the request of the  
,chief ,economist1 publishes at least   
#ij days before the end of such period a
 notice in the ,federal ,register       
extending the date and providing        
specific reasons why an extension is    
necessary4  7iii7 ,public comment ,not  
later than #g days after the ,commission
 receives an assessment plan report     
under clause 7ii71 the ,commission shall
 publish the report in the ,federal     
,register for public comment4  7#e7     
,regulation defined ,in this subsection1
 the term regulation--  7,a7 means an   
agency statement of general             

applicability and future effect that is 
designed to implement1 interpret1 or    
prescribe law or policy or to describe  
the procedure or practice requirements  
of an agency1 including rules1 orders of
 general applicability1 interpretive    
releases1 and other statements of       
general applicability that the agency   
intends to have the force and effect of 
law2 and  7,b7 does not include--  7i7 a
 regulation issued in accordance with   
the formal rulemaking provisions of     
section #eef or #eeg of title #e1       
,united ,states ,code2  7ii7 a          
regulation that is limited to agency    
organization1 management1 or personnel  
matters2  7iii7 a regulation promulgated
 pursuant to statutory authority that   
expressly prohibits compliance with this
 provision2 and  7iv7 a regulation that 
is certified by the agency to be an     
emergency action1 if such certification 
is published in the ,federal ,register4 
4  #c4 ,sense of ,congress relating to  
other regulatory entities ,it is the    

sense of the ,congress that the ,public 
,company ,accounting ,oversight ,board  
should also follow the requirements of  
section #bc7;e7 of the ,securities      
,exchange ,act of #aicd1 as added by    
section #b4  #d4 ,accountability        
provision relating to other regulatory  
entities ,a rule adopted by the         
,municipal ,securities ,rulemaking      
,board or any national securities       
association registered under section    
#ae;,a of the ,securities ,exchange ,act
 of #aicd 7#ae ,u4,s4,c4 #gho-#c7 shall 
not take effect unless the ,securities  
and ,exchange ,commission determines    
that1 in adopting such rule1 the ,board 
or association has complied with the    
requirements of section #bc7;e7 of the  
,securities ,exchange ,act of #aicd1 as 
added by section #b1 in the same manner 
as is required by the ,commission under 
such section #bc7;e74