H.R. 7437: Fostering the Use of Technology to Uphold Regulatory Effectiveness in Supervision Act
Introduction
On November 2, 2024, the United States House of Representatives introduced H.R. 7437, a bill entitled the “Fostering the Use of Technology to Uphold Regulatory Effectiveness in Supervision Act.” This legislation aims to promote the use of technology in regulatory supervision to enhance efficiency, effectiveness, and transparency.
Key Provisions
1. Mandate for Technology Adoption:
The bill requires federal regulatory agencies to adopt and utilize technology in their supervisory processes. Agencies must develop plans for integrating technology into their operations, including:
- Identifying areas where technology can improve efficiency and effectiveness
- Establishing standards for technology use
- Providing training and support to staff
2. Creation of a Technology Advisory Committee:
The bill establishes a Technology Advisory Committee to provide guidance and expertise to regulatory agencies on technology implementation. The committee consists of industry experts, academics, and government officials.
3. Data Standards and Accessibility:
H.R. 7437 establishes data standards for information collected by regulatory agencies. It requires agencies to make this data accessible to the public in a user-friendly format, promoting transparency and accountability.
4. Innovation and Collaboration:
The bill encourages regulatory agencies to collaborate with technology companies and research institutions to develop innovative solutions. Agencies can establish pilot programs and conduct research to explore the potential of emerging technologies.
5. Risk-Based Supervision:
H.R. 7437 promotes the adoption of risk-based supervision using technology. Agencies can leverage data analytics and artificial intelligence to identify and prioritize entities posing higher risks, allowing for more efficient and targeted supervision.
6. Cost-Benefit Analysis:
The bill requires regulatory agencies to conduct cost-benefit analyses before implementing new technology solutions. Agencies must demonstrate that the benefits of technology adoption outweigh the costs.
7. Impact on Small Businesses:
H.R. 7437 includes provisions to mitigate the disproportionate impact of technology adoption on small businesses. It requires agencies to provide technical assistance and resources to help small businesses comply with enhanced technological requirements.
Benefits
Proponents of H.R. 7437 argue that it will:
- Improve regulatory efficiency and effectiveness
- Enhance transparency and accountability
- Promote innovation and collaboration
- Reduce the burden on small businesses
- Strengthen the regulatory ecosystem by leveraging technology
Current Status
H.R. 7437 is currently in the early stages of the legislative process. It has been referred to the House Committee on Financial Services for review. The committee will hold hearings and consider amendments before voting on the bill.
Conclusion
H.R. 7437 aims to revolutionize regulatory supervision by embracing technology. By mandating technology adoption, establishing data standards, and fostering innovation, the bill seeks to enhance the effectiveness, efficiency, and transparency of regulatory processes. The legislation is still in its early stages, but it has the potential to significantly reshape the way regulatory agencies operate in the 21st century.
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