H.R. 4655 would prohibit the Securities and Exchange Commission (SEC) from requiring public companies to include shareholder proposals in annual reports to shareholders. The SEC currently regulates when shareholder proposals must be included in such reports.
Using information about the cost of similar proposals, CBO estimates that it would cost the SEC less than $500,000 to amend the current rules. 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 2024-2028 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. 4655 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 established in the Unfunded Mandates Reform Act (UMRA) for private-sector mandates ($198 million in 2023, adjusted annually for inflation).
