[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8339 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 8339
To make improvements to the securities laws, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 10, 2024
Mrs. Wagner introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To make improvements to the securities laws, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``SEC Reform and
Restructuring Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--SEC REGULATORY ACCOUNTABILITY
Sec. 101. Consideration by the Securities and Exchange Commission of
the costs and benefits of regulations and
certain other agency actions of the
Commission.
Sec. 102. Sense of Congress relating to other regulatory entities.
Sec. 103. Accountability provision relating to other regulatory
entities.
TITLE II--SEC TRANSPARENCY
Sec. 201. Semiannual testimony to Congress regarding activities of the
Securities and Exchange Commission.
TITLE III--SEC CYBERSECURITY
Sec. 301. GAO audit of information technology infrastructure and
handling of data.
TITLE IV--REVIEW THE EXPANSION OF GOVERNMENT
Sec. 401. Periodic review of final rules required.
Sec. 402. Consideration of cumulative effect of regulations required.
TITLE V--STREAMLINING PUBLIC COMPANY ACCOUNTING OVERSIGHT
Sec. 501. Transfer of Public Company Accounting Oversight Board to
Securities and Exchange Commission.
Sec. 502. Establishment; administrative provisions.
Sec. 503. Registration with the Office.
Sec. 504. Auditing, quality control, standards, and rules.
Sec. 505. Foreign public accounting firms.
Sec. 506. Funding.
Sec. 507. Definitions.
Sec. 508. Technical and conforming amendments.
Sec. 509. Rule of construction with respect to cooperative
arrangements.
Sec. 510. Regulations.
Sec. 511. Effective date.
TITLE VI--STUDY REGARDING MAJOR RULES ISSUED BY THE SECURITIES AND
EXCHANGE COMMISSION
Sec. 601. GAO study regarding major rules.
TITLE VII--MINIMUM PUBLIC COMMENT PERIOD
Sec. 701. Minimum public comment period.
TITLE I--SEC REGULATORY ACCOUNTABILITY
SEC. 101. CONSIDERATION BY THE SECURITIES AND EXCHANGE COMMISSION OF
THE COSTS AND BENEFITS OF REGULATIONS AND CERTAIN OTHER
AGENCY ACTIONS OF THE COMMISSION.
Section 23 of the Securities Exchange Act of 1934 (15 U.S.C. 78w)
is amended by adding at the end the following:
``(e) Consideration of Costs and Benefits.--
``(1) Considerations before proposing a regulation.--Before
proposing a regulation, the Commission shall--
``(A) clearly identify the nature and source of the
problem that the regulation is designed to address, as
well as assess the significance of that problem, to
enable assessment of whether any new regulation is
warranted; and
``(B) ensure that the regulation would be within
the Commission's jurisdiction and that the Commission
has sufficient experience and expertise to regulate the
subject matter covered by the regulation.
``(2) Requirements for issuing a proposed or final
regulation.--
``(A) In general.--In issuing a proposed or final
regulation, the Commission shall--
``(i) clearly identify the market
participants who will be impacted by the
regulation;
``(ii) utilize the Chief Economist of the
Commission to assess the costs and benefits,
both qualitative and quantitative, of the
regulation, both on the regulation's own and
cumulatively with other existing and proposed
regulations;
``(iii) only issue the regulation if the
Commission makes a reasoned determination that
the benefits of the regulation justify the
costs of the regulation;
``(iv) identify and assess available
alternatives to the regulation that were
considered, including modification of an
existing regulation;
``(v) ensure that the regulation is
accessible, consistent, written in plain
language, and easy to understand; and
``(vi) ensure that the length of the public
comment period is commensurate with the
complexity of the regulation and the expected
public interest in the rulemaking.
``(B) Inclusion of information in a proposed or
final regulation.--In issuing a proposed or final
regulation, the Commission shall include in the
regulation--
``(i) the results of the identifications
and assessments required under clauses (i) and
(ii) of subparagraph (A) with respect to the
regulation;
``(ii) an explanation of why the regulation
meets the regulatory objectives of the
Commission more effectively than other
available alternatives, including modification
of an existing regulation;
``(iii) a description of how the Commission
intends the regulation to interact with
existing regulations and proposed regulations;
and
``(iv) a justification of the length of the
public comment period for the regulation.
``(3) Considerations and actions.--
``(A) Required actions.--In deciding whether and
how to regulate, the Commission shall assess the costs
and benefits of available regulatory alternatives,
including the alternative of not regulating, and choose
the approach that maximizes net benefits. Specifically,
the Commission shall--
``(i) consistent with the requirements of
section 3(f) (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)), consider whether a
rulemaking (both on the regulation's own and
cumulatively with other existing and proposed
regulations), in addition to being in the
interest of protecting investors, will promote
efficiency, competition, and capital formation;
``(ii) evaluate whether, consistent with
obtaining regulatory objectives, a regulation
(both on the regulation's own and cumulatively
with other existing and proposed regulations)
is tailored to impose the least burden on
society, including market participants,
individuals, businesses of differing sizes, and
other entities (including State and local
governmental entities), taking into account, to
the extent practicable, the cumulative costs of
regulations; and
``(iii) evaluate whether a regulation is
inconsistent, incompatible, or duplicative of
other Federal regulations.
``(B) Additional considerations.--In addition, in
making a reasoned determination under paragraph
(2)(A)(iii) of the costs and benefits of a regulation,
the Commission shall, to the extent that each is
relevant to the particular regulation, take into
consideration the impact of the regulation on--
``(i) investor choice;
``(ii) market liquidity in the securities
markets;
``(iii) small businesses;
``(iv) competition in the marketplace;
``(v) investor access; and
``(vi) the United States' economic
competitiveness.
``(4) Post-adoption impact assessment.--
``(A) In general.--Whenever the Commission issues a
final regulation that is a `major rule' (as defined
under section 804 of title 5, United States Code), it
shall state, in the regulation, the following:
``(i) The purposes and intended
consequences of the regulation.
``(ii) Appropriate post-implementation
quantitative and qualitative metrics to measure
the economic impact of the regulation and to
measure the extent to which the regulation has
accomplished the stated purposes.
``(iii) The assessment plan that will be
used, consistent with the requirements of
subparagraph (B) and under the supervision of
the Chief Economist, to assess whether the
regulation has achieved the stated purposes.
``(iv) Any unintended or negative
consequences that the Commission foresees may
result from the regulation.
``(B) Requirements of assessment plan and report.--
``(i) Requirements of plan.--For each
regulation described under subparagraph (A),
the Chief Economist shall establish an
assessment plan, which shall--
``(I) consider the costs, benefits,
and intended and unintended
consequences of the regulation;
``(II) specify the data to be
collected, the methods for collection
and analysis of the data, and a date
for completion of the assessment; and
``(III) include an analysis of any
jobs added or lost as a result of the
regulation, differentiating between
public and private sector jobs.
``(ii) Timing of assessment plan report.--A
report on each completed assessment plan
described under clause (i) shall be submitted
by the Chief Economist to the Commission not
later than the end of the 4-year period
beginning on the date the applicable regulation
is issued, unless the Commission, at the
request of the Chief Economist, publishes at
least 90 days before the end of such period a
notice in the Federal Register extending the
date and providing specific reasons why an
extension is necessary.
``(iii) Public comment.--Not later than 7
days after the Commission receives an
assessment plan report under clause (ii), the
Commission shall publish the report in the
Federal Register for public comment.
``(5) Regulation defined.--In this subsection, the term
`regulation'--
``(A) means an agency statement of general
applicability and future effect that is designed to
implement, interpret, or prescribe law or policy or to
describe the procedure or practice requirements of an
agency, including rules, orders of general
applicability, interpretive releases, and other
statements of general applicability that the agency
intends to have the force and effect of law; and
``(B) does not include--
``(i) a regulation issued in accordance
with the formal rulemaking provisions of
section 556 or 557 of title 5, United States
Code;
``(ii) a regulation that is limited to
agency organization, management, or personnel
matters;
``(iii) a regulation promulgated pursuant
to statutory authority that expressly prohibits
compliance with this provision; and
``(iv) a regulation that is certified by
the agency to be an emergency action, if such
certification is published in the Federal
Register.''.
SEC. 102. SENSE OF CONGRESS RELATING TO OTHER REGULATORY ENTITIES.
It is the sense of the Congress that the Public Company Accounting
Oversight Board should also follow the requirements of section 23(e) of
the Securities Exchange Act of 1934.
SEC. 103. 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 the Securities Exchange Act of 1934,
in the same manner as is required by the Commission under such section
23(e).
TITLE II--SEC TRANSPARENCY
SEC. 201. SEMIANNUAL TESTIMONY TO CONGRESS REGARDING ACTIVITIES OF THE
SECURITIES AND EXCHANGE COMMISSION.
Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d) is
amended by adding at the end the following:
``(l) Semiannual Testimony to Congress.--The Chairman of the
Commission shall, not less than once every 6 months after the date of
the enactment of this subsection, testify before the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate on the activities of
the Commission. At least once annually, the Commissioners shall join
the Chairman with respect to testifying pursuant to the preceding
sentence.''.
TITLE III--SEC CYBERSECURITY
SEC. 301. GAO AUDIT OF INFORMATION TECHNOLOGY INFRASTRUCTURE AND
HANDLING OF DATA.
The Comptroller General of the United States shall, not later than
1 year after the date of the enactment of this Act--
(1) perform an independent audit of the information
technology (IT) infrastructure of the Securities and Exchange
Commission and the Commission's handling of data, including--
(A) a comparison of the Commission's IT spending to
other Federal financial regulators, including--
(i) the total amount spent on IT equipment
and services; and
(ii) the amount of IT spending in
proportion to each regulator's total spending;
(B) examining the quality and effectiveness of the
Commission's IT contracting;
(C) determining if the Commission's data and
cybersecurity systems and procedures are sufficient;
and
(D) examining any recent Commission IT or data
events, such as breaches or hacks, that may have
compromised the Commission's IT infrastructure or
exposed a vulnerability; and
(2) provide to the Commission, the Committee on Financial
Services of the House of Representatives, and the Committee on
Banking, Housing, and Urban Affairs of the Senate a report
containing--
(A) all findings and determinations made in
conducting the audit; and
(B) recommendations for steps that can be taken to
improve the Commission's IT infrastructure.
TITLE IV--REVIEW THE EXPANSION OF GOVERNMENT
SEC. 401. PERIODIC REVIEW OF FINAL RULES REQUIRED.
Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d),
as amended by section 201, is further amended by adding at the end the
following:
``(m) Periodic Review of Final Rules Required.--
``(1) In general.--With respect to a final rule issued by
the Commission, the Commission shall review such rule not later
than 5 years after the date on which such final rule is issued,
and every 5 years thereafter, to determine if any revision
(including a rescission) to the rule is necessary or
appropriate--
``(A) to facilitate capital formation;
``(B) to maintain fair and orderly markets; and
``(C) for the protection of investors.
``(2) Application.--With respect to a final rule issued by
the Commission before the date of enactment of this subsection,
the first review of such rule required under paragraph (1)
shall occur before the end of the 5-year period beginning on
the date of enactment of this subsection.
``(3) Reports required.--The Commission shall--
``(A) not later than 1 year after the date of the
enactment of this subsection, submit to Congress and
make publicly available a report that includes a plan
to carry out the review required under this subsection
with respect to the final rules described in paragraphs
(1) and (2); and
``(B) not later than 5 years after the date of the
enactment of this subsection and not less than once
every 5 years thereafter, submit to Congress and make
publicly available a report that identifies--
``(i) each final rule the Commission
reviewed under this subsection in the preceding
5-year period and an explanation of the
Commission's findings and actions taken or
planned to be taken; and
``(ii) each action or review the Commission
failed to carry out in the preceding 5-year
period under the plan required under
subparagraph (A) and an explanation for such
failure.''.
SEC. 402. CONSIDERATION OF CUMULATIVE EFFECT OF REGULATIONS REQUIRED.
(a) Rules Under the Securities Act of 1933.--Section 2(b) of the
Securities Act of 1933 (15 U.S.C. 77b(b)) is amended by inserting ``,
when considered individually or cumulatively with other rules or
regulations or other proposed rules or regulations,'' before ``will
promote''.
(b) Rules Under the Securities Exchange Act of 1934.--Section
23(a)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 78w) is
amended by inserting ``, when considered individually or cumulatively
with other rules or regulations or other proposed rules or
regulations,'' after ``which would''.
(c) Rules Under the Investment Company Act of 1940.--Section 2(c)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2) is amended by
inserting ``, when considered individually or cumulatively with other
rules or regulations or other proposed rules or regulations,'' before
``will promote''.
(d) Rules Under the Investment Advisers Act of 1940.--Section
202(c) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-2) is
amended by inserting ``, when considered individually or cumulatively
with other rules or regulations or other proposed rules or
regulations,'' before ``will promote''.
TITLE V--STREAMLINING PUBLIC COMPANY ACCOUNTING OVERSIGHT
SEC. 501. TRANSFER OF PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD TO
SECURITIES AND EXCHANGE COMMISSION.
(a) Global Amendments.--Except as otherwise provided under this
title, title I of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7211 et
seq.) is amended--
(1) in the title heading, by striking ``PUBLIC COMPANY
ACCOUNTING OVERSIGHT BOARD'' and inserting ``OFFICE OF PUBLIC
ACCOUNTING OVERSIGHT'';
(2) by striking ``Public Company Accounting Oversight
Board'' each place it appears and inserting ``Office of Public
Accounting Oversight'';
(3) by striking ``the Board'' each place it appears and
inserting ``the Office'';
(4) by striking ``The Board'' each place it appears and
inserting ``The Office''; and
(5) by striking ``the Board's'' each place it appears and
inserting ``the Office's''.
(b) Repeals.--Sections 104, 105, and 107 of the Sarbanes-Oxley Act
of 2002 (15 U.S.C. 7214; 15 U.S.C. 7215; 15 U.S.C. 7217) are repealed.
(c) References.--Beginning on the date that is 2 years after the
date of the enactment of this Act, any reference to the Public Company
Accounting Oversight Board in any law, regulation, map, document,
record, or other paper of the United States shall be deemed to be a
reference to the Office of Public Accounting Oversight of the Office of
the Chief Accountant of the Securities and Exchange Commission.
(d) Termination of Existing Board.--The Public Company Accounting
Oversight Board shall terminate on the date that is 2 years after the
date of the enactment of this Act.
SEC. 502. ESTABLISHMENT; ADMINISTRATIVE PROVISIONS.
(a) In General.--Section 101 of the Sarbanes-Oxley Act of 2002 (15
U.S.C. 7211) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Establishment of Office.--There is established in the Office
of the Chief Accountant of the Commission an Office of Public
Accounting Oversight, to oversee the audit of companies that are
subject to the securities laws, and related matters, in order to
protect the interests of investors and further the public interest in
the preparation of informative, accurate, and independent audit
reports.'';
(2) by amending subsection (b) to read as follows:
``(b) Director.--The Chief Accountant of the Office of the Chief
Accountant of the Commission shall serve as the Director of the Office
of Public Accounting Oversight.'';
(3) in subsection (c)--
(A) in the heading, by striking ``the Board'' and
inserting ``the Office'';
(B) by striking ``, subject to action by the
Commission under section 107, and once a determination
is made by the Commission under subsection (d) of this
section'';
(C) in paragraph (3), by striking ``section 104''
and inserting ``subsection (e)'';
(D) in paragraph (4), by striking ``section 105''
and inserting ``subsection (f)'';
(E) in paragraph (5)--
(i) by striking ``the Board (or the
Commission, by rule or order)'' and inserting
``the Commission''; and
(ii) by inserting ``and'' after the
semicolon;
(F) in paragraph (6)--
(i) by striking ``the rules of the Board''
and inserting ``the rules of the Commission'';
and
(ii) by striking ``; and'' and inserting a
period; and
(G) by striking paragraph (7);
(4) in subsection (d)--
(A) by striking ``The members of the Board'' and
inserting ``The Chief Accountant of the Office of the
Chief Accountant of the Commission'';
(B) by striking ``270 days after the date of
enactment of this Act'' and inserting ``1 year after
the date of the enactment of the Streamlining Public
Company Accounting Oversight Act''; and
(C) by striking the last sentence;
(5) by striking subsections (e), (f), and (g);
(6) by inserting after subsection (d) the following:
``(e) Inspections of Registered Public Accounting Firms.--The
Office shall conduct a continuing program of inspections to assess the
degree of compliance of each registered public accounting firm and
associated persons of that firm with this Act, the rules of the
Commission, or professional standards, in connection with its
performance of audits, issuance of audit reports, and related matters
involving issuers.
``(f) Investigations and Disciplinary Proceedings.--The Commission
shall establish, by rule, fair procedures for the investigation and
disciplining of registered public accounting firms and associated
persons of such firms.''; and
(7) by redesignating subsection (h) as subsection (g).
(b) Publication of Rules.--The Director of the Office of Public
Accounting Oversight shall, promptly after the creation of the Office,
cause to be published in the Federal Register all rules that are
transferred to the jurisdiction of the Office pursuant to section 2
upon the termination of the Public Company Accounting Oversight Board.
SEC. 503. REGISTRATION WITH THE OFFICE.
Section 102 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7212) is
amended--
(1) in the section heading by striking ``the board'' and
inserting ``the office'';
(2) in subsection (b)(2)(H), by striking ``the Board or
the''; and
(3) in subsection (c)(2), by striking ``for purposes of
sections 105(d) and 107(c)''.
SEC. 504. AUDITING, QUALITY CONTROL, STANDARDS, AND RULES.
Section 103 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7213) is
amended--
(1) in the heading, by striking ``and Independence
Standards'' and inserting ``Standards, and'';
(2) in subsection (a)(3)--
(A) in subparagraph (A)(i), by striking ``, subject
to the terms of section 107,'';
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B);
(3) in subsection (c) in the heading of paragraph (2), by
striking ``Board'' and inserting ``Office''; and
(4) in subsection (d), by striking ``101(h)'' and inserting
``101(g)''.
SEC. 505. FOREIGN PUBLIC ACCOUNTING FIRMS.
Section 106 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7216) is
amended--
(1) in the heading of subsection (a)(2), by striking
``Board'' and inserting ``Office''; and
(2) in subsection (c)--
(A) by striking ``and the Board, subject to the
approval of the Commission, may,''; and
(B) by striking ``(or Board)''.
SEC. 506. FUNDING.
Section 109 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7219) is
amended--
(1) by amending subsection (b) to read as follows:
``(b) Annual Budgets.--
``(1) Standard setting body.--The standard setting body
referred to in subsection (a) shall establish a budget for each
fiscal year, which shall be reviewed and approved according to
their respective internal procedures not less than 1 month
prior to the commencement of the fiscal year to which the
budget pertains.
``(2) The office.--The Commission shall establish the
budget for the Office for each fiscal year.'';
(2) in subsection (c)--
(A) by amending paragraph (1) to read as follows:
``(1) Recoverable budget expenses.--
``(A) Standard setting body.--The budget of the
standard setting body referred to in subsection (a) for
each fiscal year shall be payable from annual
accounting support fees, in accordance with subsections
(d) and (e). Accounting support fees and other receipts
of such standard-setting body shall not be considered
public monies of the United States.
``(B) The office.--The budget of the Office
(reduced by any registration or annual fees received
under section 102(f) for the year preceding the year
for which the budget is being computed) for each fiscal
year may be payable from annual accounting support
fees, in accordance with subsections (d) and (e).
Accounting support fees and other receipts of the
Office.'';
(B) in paragraph (2), by striking ``shall'' and
inserting ``may'';
(3) in subsection (d)--
(A) in the heading, by striking ``the Board'' and
inserting ``the Office'';
(B) in paragraph (1), by striking ``The Board shall
establish, with the approval of the Commission,'' and
inserting ``The Commission may establish'';
(C) in paragraph (2), by striking ``shall'' and
inserting ``may''; and
(D) by striking paragraph (3);
(4) in subsection (j)--
(A) by striking ``either the Board,''; and
(B) by striking ``, or both,''; and
(5) by striking subsection (k).
SEC. 507. DEFINITIONS.
Section 110 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7220) is
amended--
(1) by redesignating paragraphs (5) and (6) as paragraphs
(6) and (7); and
(2) by inserting after paragraph (4) the following:
``(5) Office.--The term `Office' means the Office of Public
Accounting Oversight of the Office of the Chief Accountant of
the Commission.''.
SEC. 508. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Definitions.--Section 2(a)(9)(C) of the Sarbanes-Oxley Act of
2002 (15 U.S.C. 7201) is amended by striking ``, 101(c), 105, and
107(c) and the rules of the Board and Commission issued thereunder''
and inserting ``and 101(c) and the rules of the Commission
thereunder''.
(b) Exemption Authority.--Section 201(b) of the Sarbanes-Oxley Act
of 2002 (15 U.S.C. 7231(b)) is amended--
(1) by striking ``The Board may'' and inserting ``The
Commission may''; and
(2) by striking ``in the same manner as for rules of the
Board under section 107''.
(c) Self-Regulatory Organization.--Section 603(y)(3) of the
Consumer Credit Protection Act (15 U.S.C. 1681a(y)(3)) is amended by
striking ``any entity established under title I of the Sarbanes-Oxley
Act of 2002,''.
(d) Clerical Amendment.--The table of contents in section 1(b) of
the Sarbanes-Oxley Act of 2002 is amended--
(1) in the item relating to section 102, by striking ``the
Board'' and inserting ``the Office'';
(2) in the item relating to section 103, by striking ``and
independence standards'' and inserting ``standards, and''; and
(3) by striking the items relating to sections 104, 105,
and 107.
SEC. 509. RULE OF CONSTRUCTION WITH RESPECT TO COOPERATIVE
ARRANGEMENTS.
Nothing in this title, or the amendments made by this title, shall
be construed to invalidate or otherwise affect a cooperative
arrangement between the Public Company Accounting Oversight Board and a
foreign auditor oversight authority (as defined in section 2(a) of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(a))) in effect on the date
that is 2 years after the date of the enactment of this Act.
SEC. 510. REGULATIONS.
The Securities and Exchange Commission may issue such regulations
as may be necessary to carry out this title.
SEC. 511. EFFECTIVE DATE.
The amendments made by this title shall take effect on the date
that is 2 years after the date of the enactment of this Act.
TITLE VI--STUDY REGARDING MAJOR RULES ISSUED BY THE SECURITIES AND
EXCHANGE COMMISSION
SEC. 601. GAO STUDY REGARDING MAJOR RULES.
Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d),
as amended by section 401, is further amended by adding at the end the
following:
``(n) GAO Study Regarding Major Rules.--
``(1) Study required.--
``(A) In general.--Subject to subparagraph (C), not
later than 1 year after the date of the enactment of
this subsection, and every 3 years thereafter, the
Comptroller General of the United States shall carry
out a study on each of the major rules issued by the
Commission since the last such review.
``(B) Elements.--The study required under
subparagraph (A) shall include, with respect to each
major rule described in such subparagraph--
``(i) a cost benefit analysis of such major
rule;
``(ii) a comparison between the cost
benefit analysis under clause (i) and the cost
benefit analysis for the same major rule
carried out by the Commission;
``(iii) a comparison between the projected
costs of the major rule and the actual costs of
the major rule; and
``(iv) an evaluation of whether each major
rule--
``(I) facilitates capital
formation;
``(II) promotes fair, efficient
markets; and
``(III) protects investors.
``(C) Special rule.--If a study required under
subparagraph (A) would apply to more than 10 major
rules, the Comptroller Genera shall review only the 10
major rules that are the most significant, as
determined by the Comptroller General.
``(2) Report.--Not later than 1 year after completing a
study under paragraph (1), the Comptroller General shall submit
to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a report that includes--
``(A) the results of such study; and
``(B) with respect to any major rule reviewed in
such study that has not yet been fully implemented by
the Commission, a statement that the Comptroller
General is unable to fully analyze the costs of the
major rule at the time the report is submitted.
``(3) Major rule defined.--In this subsection, the term
`major rule' has the meaning given the term in section 804 of
title 5, United States Code.''.
TITLE VII--MINIMUM PUBLIC COMMENT PERIOD
SEC. 701. MINIMUM PUBLIC COMMENT PERIOD.
Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 78d),
as amended by section 601, is further amended by adding at the end the
following:
``(o) Minimum Public Comment Period.--
``(1) In general.--With respect to a proposed rulemaking
for which a public comment period is required under section 553
of title 5, United States Code, the Commission shall provide a
public comment period of--
``(A) at least 60 days; or
``(B) if the Commission determines the proposed
rule addresses imminent investor harm, at least 30
days.
``(2) Calculation of periods.--For purposes of calculating
the number of days in a period under paragraph (1) with respect
to a proposed rulemaking--
``(A) a Federal holiday shall not be counted; and
``(B) the period shall begin on the date the
proposed rule is published in the Federal Register.''.
<all>