[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2373 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 2373

To improve the consideration by the Securities and Exchange Commission 
        of the costs and benefits of its regulations and orders.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 26, 2012

  Mr. Vitter introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 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, 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;
                    ``(C) ensure that any regulation or order is 
                accessible, consistent, written in plain language, and 
                easy to understand; and
                    ``(D) 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, 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.''.
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