H.R. 2792 would require the Securities and Exchange Commission (SEC) to study its current definition of “small entity” under the Regulatory Flexibility Act (RFA) and revise its rules based on the results of the study. Under current law, agencies subject to the RFA need to determine if their rules have a significant economic impact on small entities, including businesses, nonprofit organizations, and governmental jurisdictions. If so, agencies must consider alternatives that minimize that impact.
Using information about the cost of similar provisions, CBO estimates that implementing the bill would cost $2 million over the 2023-2028 period. CBO expects that the SEC would need about five employees, at an average annual cost of $300,000 per employee, to carry out the study and amend rules. 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. 2792 would increase the cost of an existing mandate on private entities required to pay those assessments. CBO estimates that the incremental cost of that mandate would be small and fall below the annual threshold established in the Unfunded Mandates Reform Act (UMRA) for private-sector mandates ($198 million in 2023, adjusted annually for inflation).
H.R. 2792 contains no intergovernmental mandates as defined in UMRA.