CFTC Cost-Benefit Analysis Improvement Act

I 116TH CONGRESS 1ST SESSION H. R. 4909 To expand the scope of the matters required to be evaluated by the Com- modity Futures Trading Commission in considering the costs and benefits of its proposed regulations and orders, and for other purposes. IN THE HOUSE OF REPRESENTATIVES OCTOBER 29, 2019 Mr. JOHNSON of South Dakota introduced the following bill; which was referred to the Committee on Agriculture A BILL To expand the scope of the matters required to be evaluated by the Commodity Futures Trading Commission in con- sidering the costs and benefits of its proposed regulations and orders, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘CFTC Cost-Benefit 4 Analysis Improvement Act’’. 5 VerDate Sep 11 2014 15:52 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4909.IH H4909 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4909 IH SEC. 2. CONSIDERATION BY THE COMMODITY FUTURES 1 TRADING COMMISSION OF THE COSTS AND 2 BENEFITS OF ITS REGULATIONS AND OR- 3 DERS. 4 (a) IN GENERAL.—Section 2(a) of the Commodity 5 Exchange Act (7 U.S.C. 2(a)) is amended by adding at 6 the end the following: 7 ‘‘(16) OFFICE OF THE CHIEF ECONOMIST.— 8 ‘‘(A) ESTABLISHMENT.—There is estab- 9 lished in the Commission the Office of the Chief 10 Economist. 11 ‘‘(B) HEAD.—The Office of the Chief 12 Economist shall be headed by the Chief Econo- 13 mist. 14 ‘‘(C) FUNCTIONS.—The Chief Economist 15 shall serve as economic advisor and perform 16 such other functions and duties as the Chair- 17 man may prescribe. 18 ‘‘(D) PROFESSIONAL STAFF.—The Com- 19 mission shall appoint such other economists as 20 may be necessary to assist the Chief Economist 21 in performing economic analysis, regulatory 22 cost-benefit analysis, or research.’’. 23 (b) CONSIDERATION OF COSTS AND BENEFITS.— 24 Section 15(a) of such Act (7 U.S.C. 19(a)) is amended— 25 VerDate Sep 11 2014 15:52 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4909.IH H4909 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 4909 IH (1) by striking paragraphs (1) and (2) and in- 1 serting the following: 2 ‘‘(1) IN GENERAL.—Before promulgating a reg- 3 ulation under this Act or issuing an order (except as 4 provided in paragraph (3)), the Commission, 5 through the Office of the Chief Economist, shall as- 6 sess and publish in the regulation or order the costs 7 and benefits, both qualitative and quantitative, of 8 the proposed regulation or order, and the proposed 9 regulation or order shall state its statutory justifica- 10 tion. 11 ‘‘(2) CONSIDERATIONS.—In making a reasoned 12 determination of the costs and the benefits, the 13 Commission shall evaluate— 14 ‘‘(A) considerations of protection of market 15 participants and the public; 16 ‘‘(B) considerations of the efficiency, com- 17 petitiveness, and financial integrity of futures 18 and swaps markets; 19 ‘‘(C) considerations of the impact on mar- 20 ket liquidity in the futures and swaps markets; 21 ‘‘(D) considerations of price discovery; 22 ‘‘(E) considerations of sound risk manage- 23 ment practices; 24 VerDate Sep 11 2014 15:52 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4909.IH H4909 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 4909 IH ‘‘(F) available alternatives to direct regula- 1 tion; 2 ‘‘(G) the degree and nature of the risks 3 posed by various activities within the scope of 4 its jurisdiction; 5 ‘‘(H) the costs of complying with the pro- 6 posed regulation or order by all regulated enti- 7 ties, including a methodology for quantifying 8 the costs (recognizing that some costs are dif- 9 ficult to quantify); 10 ‘‘(I) whether the proposed regulation or 11 order is inconsistent, incompatible, or duplica- 12 tive of other Federal regulations or orders; 13 ‘‘(J) the cost to the Commission of imple- 14 menting the proposed regulation or order by the 15 Commission staff, including a methodology for 16 quantifying the costs; 17 ‘‘(K) whether, in choosing among alter- 18 native regulatory approaches, those approaches 19 maximize net benefits (including potential eco- 20 nomic and other benefits, distributive impacts, 21 and equity); and 22 ‘‘(L) other public interest considerations.’’; 23 and 24 (2) by adding at the end the following: 25 VerDate Sep 11 2014 15:52 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4909.IH H4909 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 4909 IH ‘‘(4) JUDICIAL REVIEW.—Notwithstanding sec- 1 tion 24(d), a court shall affirm a Commission as- 2 sessment of costs and benefits under this subsection, 3 unless the court finds the assessment to be an abuse 4 of discretion.’’. 5 Æ VerDate Sep 11 2014 15:52 Nov 02, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H4909.IH H4909 pamtmann on DSKBC07HB2PROD with BILLS