H.R. 5143 would require the Department of the Treasury and the Federal Reserve to provide additional reports and testimony to the Congress on international negotiations regarding regulatory standards in the insurance industry. Before agreeing to or adopting such standards, the bill would require that the Treasury and the Federal Reserve publish any proposed final standard, allow for public comment, and report to the Congress on the impact of those standards on U.S. consumers, markets, and state laws. The bill also would require the Federal Reserve to promulgate a rule on domestic capital standards before agreeing to any international standard related to capital standards for insurance firms. Finally, H.R. 5143 would require the Government Accountability Office (GAO) to review those reports on insurance regulations.
Based on information provided by the Federal Reserve, CBO estimates that enacting H.R. 5143 would increase costs to the Federal Reserve System for conducting the required analysis and for preparing reports and testimony. Those increased costs would reduce revenues paid to the Treasury by the Federal Reserve by $7 million over the 2017-2026 period; therefore pay-as-you-go procedures apply. Enacting the bill would not affect direct spending.
In addition, based on information from the Treasury and the cost of similar activities, CBO estimates that implementing H.R. 5143 would cost $1 million in 2017 and less than $500,000 in subsequent years for the GAO report and the reporting requirements related to international standards. Such spending would be subject to the availability of appropriated amounts.
CBO estimates that enacting H.R. 5143 would not increase net direct spending or on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2027.
H.R. 5143 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.
