Senate Banking Committee member Richard Shelby (R-Ala.) introduced a bill that would require financial regulators to justify proposed rules.
The legislation would mandate, among other things, that regulators do a detailed analysis of a rule’s benefits and costs, including its effect on economic growth and net job creation. Under the bill, regulators would be barred from promulgating a rule if the analysis showed that the regulation’s costs outweighed its benefits.
“Businesses across the country are dealing with an avalanche of regulations from Dodd-Frank,” Shelby said in a press release. “The bottom-line principle of the [legislation] is unambiguous: If a regulation’s costs outweigh its benefits, it should be thrown out.” Shelby introduced the same bill in September 2011.
In related news, Shelby also introduced legislation that would correct “numerous drafting errors” in the Dodd-Frank Act. The bill “focuses purely on technical corrections of nonsubstantive inaccuracies and omissions in the statute,” according to the press release.
Read Shelby’s press release.