By Brandon Moseley
Alabama Political Reporter
On Wednesday, U.S. Senator Richard Shelby (R) from Alabama introduced two legislative proposals aimed at clarifying and streamlining the implementation of the 2010 Dodd-Frank financial regulation law.
According to Shelby’s office the first bill corrects numerous drafting errors in the Dodd-Frank financial regulation law. The legislation focuses on technical corrections of non-substantive inaccuracies and omissions in the statute. Sen. Shelby said, “Dodd-Frank supporters have resisted any changes for over two years. Certainly we can agree to correct purely technical errors.”
Sen. Shelby’s second bill is titled the Financial Regulatory Responsibility Act of 2013. According to Shelby’s written statement it holds financial regulators accountable for rigorous, consistent economic analysis on every new rule they propose. If passed it would require that regulators provide clear justification for the rules to determine the economic impact of any proposed new rules. The federal regulations would also have to including estimates of the new rule’s effect on growth and net job creation.
Senator Shelby said, “Businesses across the country are dealing with an avalanche of regulations from Dodd-Frank. The bottom-line principle of the Financial Regulatory Responsibility Act is unambiguous: If a regulation’s costs outweigh its benefits, it should be thrown out.”
Co-sponsor Senator Saxby Chambliss (D) from Georgia said, “I remain concerned about the harsh regulatory environment the Dodd-Frank bill created. The Dodd-Frank financial regulation law dramatically expands the government’s involvement in private business operations, limits the choices available to consumers, imposes new taxes and fees on the American people, and impedes our economic recovery at a time when we can least afford it. This bill will provide the relief the private sector needs from these costly, burdensome regulations.”
If passed the bill would also improve the transparency and accountability of the regulatory process and reduces the burdens of existing regulations. The legislation would prohibit a regulation from going into affect if it’s costs outweigh its benefits.
The Financial Regulatory Responsibility Act of 2013 is also cosponsored by Banking Committee Ranking Member Mike Crapo (R) from Idaho and Senators Mike Johanns (R) from Nebraska. The bill is supported by the U.S. Chamber of Commerce.
Senator Shelby was a fierce opponent of Dodd-Frank. Republicans vowed to repeal the massive regulatory expansion that President Obama made a priority in the second year of his first term. Republicans had hoped to repeal the controversial law; but the people re-elected President Obama and voted to allow Democrats to control the Senate.
Senator Richard Shelby is a senior member of the Senate Committee on Banking, Housing, and Urban Affairs. Senator Shelby was first elected to the U.S. Senate in 1986. Prior to that Shelby served in the U.S. House of Representatives and the Alabama Senate.