[House Report 113-60]
[From the U.S. Government Publishing Office]


113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     113-60

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  PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 1062) TO IMPROVE THE 
 CONSIDERATION BY THE SECURITIES AND EXCHANGE COMMISSION OF THE COSTS 
               AND BENEFITS OF ITS REGULATIONS AND ORDERS

                                _______
                                

May 15, 2013.--Referred to the House Calendar and ordered to be printed

                                _______
                                

              Mr. Sessions, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 216]

    The Committee on Rules, having had under consideration 
House Resolution 216, by a record vote of 8 to 2, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 1062, the 
SEC Regulatory Accountability Act, under a structured rule. The 
resolution provides one hour of general debate equally divided 
and controlled by the chair and ranking minority member of the 
Committee on Financial Services. The resolution waives all 
points of order against consideration of the bill. The 
resolution makes in order as original text for purpose of 
amendment an amendment in the nature of a substitute consisting 
of the text of Rules Committee Print 113-10 and provides that 
it shall be considered as read. The resolution waives all 
points of order against the amendment in the nature of a 
substitute. The resolution makes in order only those further 
amendments printed in this report. Each such amendment may be 
offered only in the order printed in this report, may be 
offered only by a Member designated in this report, shall be 
considered as read, shall be debatable for the time specified 
in this report equally divided and controlled by the proponent 
and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question in the 
House or in the Committee of the Whole. The resolution waives 
all points of order against the amendments printed in this 
report. The resolution provides one motion to recommit with or 
without instructions.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill includes a waiver of section 3(j)(2) of H. Res. 5 
(113th Congress). While the Committee on Financial Services 
statement in its report does not include the required specific 
references to reports from the Government Accountability Office 
to Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance, the 
Committee has determined that the bill does not establish or 
reauthorize a duplicative federal program consistent with the 
intent of the standing order.
    Although the resolution waives all points of order against 
the amendment in the nature of a substitute made in order as 
original text, the Committee is not aware of any points of 
order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
the amendments printed in this report, the Committee is not 
aware of any points of order. The waiver is prophylactic in 
nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 32

    Motion by Ms. Slaughter to make in order and provide the 
appropriate waivers for amendment #4, offered by Rep. Slaughter 
(NY), which delays implementation of the bill until the 
enactment of a law that requires the political intelligence 
industry to comply with the Lobbying Disclosure Act 
registration requirements and the Ethics in Government Act 
``revolving door'' restrictions. Defeated: 2-8.

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                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Ms. Slaughter.....................          Yea
Mr. Bishop of Utah..............................          Nay   Mr. McGovern......................
Mr. Cole........................................          Nay   Mr. Hastings of Florida...........
Mr. Woodall.....................................          Nay   Mr. Polis.........................          Yea
Mr. Nugent......................................          Nay
Mr. Webster.....................................          Nay
Ms. Ros-Lehtinen................................
Mr. Burgess.....................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 33

    Motion by Ms. Slaughter to strike all waivers of points of 
order in the rule. Defeated: 2-8.

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                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Ms. Slaughter.....................          Yea
Mr. Bishop of Utah..............................          Nay   Mr. McGovern......................
Mr. Cole........................................          Nay   Mr. Hastings of Florida...........
Mr. Woodall.....................................          Nay   Mr. Polis.........................          Yea
Mr. Nugent......................................          Nay
Mr. Webster.....................................          Nay
Ms. Ros-Lehtinen................................
Mr. Burgess.....................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 34

    Motion by Ms. Foxx to report the rule. Adopted: 8-2.

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                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Yea   Ms. Slaughter.....................          Nay
Mr. Bishop of Utah..............................          Yea   Mr. McGovern......................
Mr. Cole........................................          Yea   Mr. Hastings of Florida...........
Mr. Woodall.....................................          Yea   Mr. Polis.........................          Nay
Mr. Nugent......................................          Yea
Mr. Webster.....................................          Yea
Ms. Ros-Lehtinen................................
Mr. Burgess.....................................          Yea
Mr. Sessions, Chairman..........................          Yea
----------------------------------------------------------------------------------------------------------------

                SUMMARY OF THE AMENDMENTS MADE IN ORDER

    1. Sessions (TX): Mandates that assessment plans required 
under this Act include analysis of any jobs added or lost as a 
result of the regulation, differentiating between public and 
private sector jobs. (10 minutes)
    2. Hurt (VA): Expresses the sense of Congress that rules 
adopted by the Public Company Accounting Oversight Board 
(PCAOB) comply with the same standards required of the SEC. 
Requires the SEC to ensure that any rules adopted by the 
Municipal Securities Rulemaking Board (MSRB), and other 
national securities associations comply with the standards set 
forth in the bill. (10 minutes)
    3. Maloney, Carolyn B. (NY): Strikes all after the enacting 
clause and inserts findings and a sense of Congress that the 
SEC is required to conduct economic analysis as part of its 
rulemaking. (10 minutes)

                    TEXT OF AMENDMENTS MADE IN ORDER

 1. An Amendment To Be Offered by Representative Sessions of Texas or 
                 His Designee, Debatable for 10 Minutes

  Page 6, line 25, add at the end the following: ``The 
assessment plan shall include an analysis of any jobs added or 
lost as a result of the regulation, differentiating between 
public and private sector jobs.''.
                              ----------                              


2. An Amendment To Be Offered by Representative Hurt of Virginia or His 
                   Designee, Debatable for 10 Minutes

  Page 10, beginning on line 7, strike ``other regulatory 
entities, including''.
  Page 10, beginning on line 8, strike ``, the Municipal 
Securities Rulemaking Board, and any national securities 
association registered under section 15A of the Securities 
Exchange Act of 1934 (15 U.S.C. 78o-3)''.
  Page 10, after line 13, insert the following:

SEC. 4. ACCOUNTABILITY PROVISION RELATING TO OTHER REGULATORY ENTITIES.

  A rule adopted by the Municipal Securities Rulemaking Board 
or any national securities association registered under section 
15A of the Securities Exchange Act of 1934 (15 U.S.C. 78o-3) 
shall not take effect unless the Securities and Exchange 
Commission determines that, in adopting such rule, the Board or 
association has complied with the requirements of section 23(e) 
of such Act, as added by section 2, in the same manner as is 
required by the Commission under such section 23(e).
                              ----------                              


 3. An Amendment To Be Offered by Representative Carolyn B. Maloney of 
           New York or Her Designee, Debatable for 10 Minutes

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SENSE OF CONGRESS RELATING TO EXISTING REQUIREMENTS FOR 
                    ECONOMIC ANALYSES.

  (a) Findings.--Congress finds the following:
          (1) As with other agencies, current law requires the 
        Securities and Exchange Commission to conduct economic 
        analyses pursuant to the Paperwork Reduction Act, the 
        Congressional Review Act and the Regulatory Flexibility 
        Act.
          (2) In addition to the analyses required of all 
        regulatory agencies, the Securities and Exchange 
        Commission is also required to perform additional 
        economic analyses pursuant to section 3(f) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78c(f)), 
        section 2(b) of the Securities Act of 1933 (15 U.S.C. 
        77b(b)), section 202(c) of the Investment Advisers Act 
        of 1940 (15 U.S.C. 80b-2(c)), and section 2(c) of the 
        Investment Company Act of 1940 (15 U.S.C. 80a-2(c)), 
        which provide that, where the Commission is engaged in 
        rulemaking and is required to consider whether the rule 
        is necessary or appropriate in the public interest, the 
        Commission must also consider whether the rule will 
        promote efficiency, competition, and capital formation.
          (3) In the July 22, 2011 decision in Business 
        Roundtable v. SEC (647 F.3d 1144), the United States 
        Court of Appeals for the D.C. Circuit vacated the 
        Commission's recently adopted proxy access rule, which 
        would have provided a company shareholder or group of 
        shareholders meeting certain minimum ownership 
        thresholds and other requirements the ability to 
        include in the company's proxy materials the 
        shareholder(s)' nominee(s) for the company's board of 
        directors. The court found that, because the Commission 
        had not adequately addressed the likely economic 
        consequences of the rule, its adoption of the rule was 
        arbitrary and capricious.
          (4) In March of 2012, the Securities and Exchange 
        Commission revised and clarified its guidance on cost 
        benefit analysis. In December of 2012 the Government 
        Accountability Office issued a review of agencies' 
        analysis and coordination of rules. The GAO found, 
        ``SEC's guidance defines the basic elements of good 
        regulatory economic analysis in a manner that closely 
        parallels the elements listed in Circular A-4: (1) a 
        statement of the need for the proposed action; (2) the 
        definition of a baseline against which to measure the 
        likely economic consequences of the proposed 
        regulation; (3) the identification of alternative 
        regulatory approaches; and (4) an evaluation of the 
        benefits and costs--both quantitative and qualitative--
        of the proposed action and the main alternatives.''.
  (b) Sense of Congress.--It is the sense of Congress that the 
Securities and Exchange Commission is required pursuant to law 
to conduct economic analyses as part of its rulemakings. 
Further, the D.C. Circuit Court's recent decision in the 
Business Roundtable case makes clear that the economic analyses 
the Commission undertakes in connection with its rules are 
subject to meaningful judicial scrutiny.

                                  
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