House Report 113-60 - 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

[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

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

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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
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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
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Rules Committee record vote No. 33

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

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
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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
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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.