H.R. 2812 would require the Securities and Exchange Commission (SEC) to study and report to the Congress within 360 days on the cost for small- and medium-sized companies to undertake initial public offerings.
Using information from the SEC about the cost of similar reports, CBO estimates that implementing H.R. 2812 would cost $2 million over the 2023-2024 period. CBO expects that the SEC would need five employees, at an average annual cost of $300,000 per employee, to complete the study and report to the Congress. However, because the SEC is authorized to collect fees each year to offset its annual appropriation, CBO expects that the net effect on discretionary spending over the 2023-2028 period would be negligible, assuming appropriation actions consistent with that authority.
If the SEC increases fees to offset the costs associated with implementing the bill, H.R. 2812 would increase the cost of an existing mandate on private entities required to pay those assessments. CBO estimates that the incremental cost of the mandate would be small and would fall well below the annual threshold for private-sector mandates established in the Unfunded Mandates Reform Act (UMRA, $198 million in 2023, adjusted annually for inflation).
H.R. 2812 contains no intergovernmental mandates as defined in UMRA.