Today, Capital Markets Subcommittee Chairman Bill Huizenga (MI-02) spoke on the House floor in support of H.R. 78, the SEC Regulatory Accountability Act, which would improve and strengthen the SEC’s rule-making process by requiring a more rigorous economic analysis. H.R. 78 passed the House of Representatives by a vote of 243 to 184.
"In the simplest of terms, the SEC would have to determine the costs and benefits of proposed regulations as well as potential alternatives to determine the best direction forward. Basically, ensuring that the SEC is thoroughly assessing both the need for the regulation and adequately evaluating potential consequences – both intended and unintended."
"… Requiring economic analysis by federal regulators is not a partisan issue and in fact, both Presidents Clinton and Obama issued executive orders requiring regulators to ensure their rules were achieving the maximum net benefit. H.R. 78, the SEC Regulatory Accountability Act, would ensure consistent and effective application of the SEC’s economic analysis guidance by building on the bipartisan effort to strengthen economic analysis requirements as well as require retrospective review of existing regulations for independent agencies like the SEC."
"Specifically, the bill would enhance the SEC’s existing economic analysis requirements by requiring the Commission to first clearly identify the nature of the problem that would be addressed before issuing a new regulation, and to prohibit the SEC from issuing a rule when it cannot make “a reasoned determination that the benefits of the intended regulation justify the costs of the regulation.”
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