[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1840 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1840

To improve consideration by the Commodity Futures Trading Commission of 
         the costs and benefits of its regulations and orders.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 2011

 Mr. Conaway (for himself, Mr. Quigley, Mr. McHenry, Mr. Boswell, and 
 Mr. Neugebauer) introduced the following bill; which was referred to 
                      the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
To improve consideration by the Commodity Futures Trading 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. CONSIDERATION BY THE COMMODITY FUTURES TRADING COMMISSION OF 
              THE COSTS AND BENEFITS OF ITS REGULATIONS AND ORDERS.

    Section 15(a) of the Commodity Exchange Act (7 U.S.C. 19(a)) is 
amended by striking paragraphs (1) and (2) and inserting the following:
            ``(1) In general.--Before promulgating a regulation under 
        this Act or issuing an order (except as provided in paragraph 
        (3)), the Commission, through the Office of the Chief 
        Economist, shall assess the costs and benefits, both 
        qualitative and quantitative, of the intended regulation and 
        propose or adopt a regulation only on a reasoned determination 
        that the benefits of the intended regulation justify the costs 
        of the intended regulation (recognizing that some benefits and 
        costs are difficult to quantify). It must measure, and seek to 
        improve, the actual results of regulatory requirements.
            ``(2) Considerations.--In making a reasoned determination 
        of the costs and the benefits, the Commission shall evaluate--
                    ``(A) considerations of protection of market 
                participants and the public;
                    ``(B) considerations of the efficiency, 
                competitiveness, and financial integrity of futures and 
                swaps markets;
                    ``(C) considerations of the impact on market 
                liquidity in the futures and swaps markets;
                    ``(D) considerations of price discovery;
                    ``(E) considerations of sound risk management 
                practices;
                    ``(F) available alternatives to direct regulation;
                    ``(G) the degree and nature of the risks posed by 
                various activities within the scope of its 
                jurisdiction;
                    ``(H) 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 small communities and governmental 
                entities), taking into account, to the extent 
                practicable, the cumulative costs of regulations;
                    ``(I) whether the regulation is inconsistent, 
                incompatible, or duplicative of other Federal 
                regulations;
                    ``(J) whether, in choosing among alternative 
                regulatory approaches, those approaches maximize net 
                benefits (including potential economic, environmental, 
                and other benefits, distributive impacts, and equity); 
                and
                    ``(K) other public interest considerations.''.
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