Title: CFTC Cost-Benefit Analysis Improvement Act
Policy area: Finance and Financial Sector

Summary:
CFTC Cost-Benefit Analysis Improvement Act
This bill generally revises the cost-benefit analysis requirements for the Commodity Futures Trading Commission (CFTC).
It establishes in the CFTC the Office of the Chief Economist. The office must perform the cost-benefit analyses of proposed CFTC regulations and orders. Additionally, such cost-benefit analyses must consider, among other things, the impact of market liquidity on relevant markets, available alternatives to direct regulation, and the cost of compliance for all regulated entities.
A court must affirm such cost-benefit analyses, unless it finds an abuse of discretion.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4909 Introduced in House (IH)]

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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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``CFTC Cost-Benefit Analysis 
Improvement Act''.

SEC. 2. CONSIDERATION BY THE COMMODITY FUTURES TRADING COMMISSION OF 
              THE COSTS AND BENEFITS OF ITS REGULATIONS AND ORDERS.

    (a) In General.--Section 2(a) of the Commodity Exchange Act (7 
U.S.C. 2(a)) is amended by adding at the end the following:
            ``(16) Office of the chief economist.--
                    ``(A) Establishment.--There is established in the 
                Commission the Office of the Chief Economist.
                    ``(B) Head.--The Office of the Chief Economist 
                shall be headed by the Chief Economist.
                    ``(C) Functions.--The Chief Economist shall serve 
                as economic advisor and perform such other functions 
                and duties as the Chairman may prescribe.
                    ``(D) Professional staff.--The Commission shall 
                appoint such other economists as may be necessary to 
                assist the Chief Economist in performing economic 
                analysis, regulatory cost-benefit analysis, or 
                research.''.
    (b) Consideration of Costs and Benefits.--Section 15(a) of such Act 
(7 U.S.C. 19(a)) is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) In general.--Before promulgating a regulation under 
        this Act or issuing an order (except as provided in paragraph 
        (3)), the Commission, through the Office of the Chief 
        Economist, shall assess and publish in the regulation or order 
        the costs and benefits, both qualitative and quantitative, of 
        the proposed regulation or order, and the proposed regulation 
        or order shall state its statutory justification.
            ``(2) Considerations.--In making a reasoned determination 
        of the costs and the benefits, the Commission shall evaluate--
                    ``(A) considerations of protection of market 
                participants and the public;
                    ``(B) considerations of the efficiency, 
                competitiveness, and financial integrity of futures and 
                swaps markets;
                    ``(C) considerations of the impact on market 
                liquidity in the futures and swaps markets;
                    ``(D) considerations of price discovery;
                    ``(E) considerations of sound risk management 
                practices;
                    ``(F) available alternatives to direct regulation;
                    ``(G) the degree and nature of the risks posed by 
                various activities within the scope of its 
                jurisdiction;
                    ``(H) the costs of complying with the proposed 
                regulation or order by all regulated entities, 
                including a methodology for quantifying the costs 
                (recognizing that some costs are difficult to 
                quantify);
                    ``(I) whether the proposed regulation or order is 
                inconsistent, incompatible, or duplicative of other 
                Federal regulations or orders;
                    ``(J) the cost to the Commission of implementing 
                the proposed regulation or order by the Commission 
                staff, including a methodology for quantifying the 
                costs;
                    ``(K) whether, in choosing among alternative 
                regulatory approaches, those approaches maximize net 
                benefits (including potential economic and other 
                benefits, distributive impacts, and equity); and
                    ``(L) other public interest considerations.''; and
            (2) by adding at the end the following:
            ``(4) Judicial review.--Notwithstanding section 24(d), a 
        court shall affirm a Commission assessment of costs and 
        benefits under this subsection, unless the court finds the 
        assessment to be an abuse of discretion.''.
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