I 

116TH CONGRESS 

1ST SESSION H. R. 4909 

To expand the scope of the matters required to be evaluated by the Commodity 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 considering the costs and benefits of its proposed regulations 

and orders, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘CFTC Cost-Benefit 

5 Analysis Improvement Act’’. 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•HR 4909 IH

1 SEC. 2. CONSIDERATION BY THE COMMODITY FUTURES 

2 TRADING COMMISSION OF THE COSTS AND 

3 BENEFITS OF ITS REGULATIONS AND OR4 DERS. 

5 (a) IN GENERAL.—Section 2(a) of the Commodity 

6 Exchange Act (7 U.S.C. 2(a)) is amended by adding at 

7 the end the following: 

8 ‘‘(16) OFFICE OF THE CHIEF ECONOMIST.— 

9 ‘‘(A) ESTABLISHMENT.—There is estab10 lished in the Commission the Office of the Chief 

11 Economist. 

12 ‘‘(B) HEAD.—The Office of the Chief 

13 Economist shall be headed by the Chief Econo14 mist. 

15 ‘‘(C) FUNCTIONS.—The Chief Economist 

16 shall serve as economic advisor and perform 

17 such other functions and duties as the Chair18 man may prescribe. 

19 ‘‘(D) PROFESSIONAL STAFF.—The Com20 mission shall appoint such other economists as 

21 may be necessary to assist the Chief Economist 

22 in performing economic analysis, regulatory 

23 cost-benefit analysis, or research.’’. 

24 (b) CONSIDERATION OF COSTS AND BENEFITS.— 

25 Section 15(a) of such Act (7 U.S.C. 19(a)) is amended— 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•HR 4909 IH

1 (1) by striking paragraphs (1) and (2) and in2 serting the following: 

3 ‘‘(1) IN GENERAL.—Before promulgating a reg4 ulation under this Act or issuing an order (except as 

5 provided in paragraph (3)), the Commission, 

6 through the Office of the Chief Economist, shall as7 sess and publish in the regulation or order the costs 

8 and benefits, both qualitative and quantitative, of 

9 the proposed regulation or order, and the proposed 

10 regulation or order shall state its statutory justifica11 tion. 

12 ‘‘(2) CONSIDERATIONS.—In making a reasoned 

13 determination of the costs and the benefits, the 

14 Commission shall evaluate— 

15 ‘‘(A) considerations of protection of market 

16 participants and the public; 

17 ‘‘(B) considerations of the efficiency, com18 petitiveness, and financial integrity of futures 

19 and swaps markets; 

20 ‘‘(C) considerations of the impact on mar21 ket liquidity in the futures and swaps markets; 

22 ‘‘(D) considerations of price discovery; 

23 ‘‘(E) considerations of sound risk manage24 ment practices; 


pamtmann on DSKBC07HB2PROD with BILLS
4 

•HR 4909 IH

1 ‘‘(F) available alternatives to direct regula2 tion; 

3 ‘‘(G) the degree and nature of the risks 

4 posed by various activities within the scope of 

5 its jurisdiction; 

6 ‘‘(H) the costs of complying with the pro7 posed regulation or order by all regulated enti8 ties, including a methodology for quantifying 

9 the costs (recognizing that some costs are dif10 ficult to quantify); 

11 ‘‘(I) whether the proposed regulation or 

12 order is inconsistent, incompatible, or duplica13 tive of other Federal regulations or orders; 

14 ‘‘(J) the cost to the Commission of imple15 menting the proposed regulation or order by the 

16 Commission staff, including a methodology for 

17 quantifying the costs; 

18 ‘‘(K) whether, in choosing among alter19 native regulatory approaches, those approaches 

20 maximize net benefits (including potential eco21 nomic and other benefits, distributive impacts, 

22 and equity); and 

23 ‘‘(L) other public interest considerations.’’; 

24 and 

25 (2) by adding at the end the following: 


pamtmann on DSKBC07HB2PROD with BILLS
5 

•HR 4909 IH

1 ‘‘(4) JUDICIAL REVIEW.—Notwithstanding sec2 tion 24(d), a court shall affirm a Commission as3 sessment of costs and benefits under this subsection, 

4 unless the court finds the assessment to be an abuse 

5 of discretion.’’. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS