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Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
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Congressional Research Service (CRS)

Rulemaking Requirements and Authorities in the Dodd-Frank Wall Street Reform and Consumer Protection Act

Curtis W. Copeland, Specialist in American National Government

November 3, 2010

http://www.opencrs.com/document/R41472/2010-11-03/download/1013/

[full-text, 92 pages]

Summary

The Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203, July 21, 2010)

contains more than 300 provisions that expressly indicate in the text that rulemaking is required

or permitted. However, it is unclear how many rules will ultimately be issued pursuant to the act

because, among other things, (1) most of the provisions appear to be discretionary (e.g., stating

that an agency “may” issue a rule); (2) individual provisions may result in multiple rules; (3)

some provisions appear to provide rulemaking authorities to agencies that they already possess;

and (4) rules may be issued to implement provisions that do not specifically require or permit

rulemaking.

Nearly 80% of the relevant provisions in the Dodd-Frank Act assign rulemaking responsibilities

or authorities to four agencies: the Securities and Exchange Commission (SEC), the Board of

Governors of the Federal Reserve System, the Commodity Futures Trading Commission (CFTC),

and the Consumer Financial Protection Bureau. Many of the mandatory provisions specify the

details of the rules to be issued, but many of the discretionary provisions allow the agencies to

issue such rules “as may be necessary.” Most of the rulemaking provisions in the act do not

indicate how the regulations should be developed, but some either require or prohibit notice-andcomment

procedures before the final rule is issued.

Fewer than 40% of the rulemaking provisions in the Dodd-Frank Act indicate when the required

or permitted rule should be issued or go into effect. Of the provisions with deadlines, four require

rules to be issued within 90 days of enactment (i.e., by October 19, 2010), and five other

provisions require rules within 180 days (i.e., by January 17, 2011). As of October 20, 2010, 10

final rules had been published in the Federal Register implementing the act, including six by the

SEC and two by the CFTC.

Many of the government-wide rulemaking requirements (e.g., the Administrative Procedure Act)

appear to apply to rulemaking under the Dodd-Frank Act, but the exceptions and exemptions to

those requirements also apply. Other rulemaking requirements and controls (e.g., Executive Order

12866) are not applicable to the independent regulatory agencies like the SEC and the CFTC,

who are responsible for issuing most of the rules under the act. Also, some of the rulemaking

agencies do not receive congressionally appropriated funds, and therefore may not be subject to

appropriations restrictions that Congress has used to control rulemaking.

Nevertheless, Congress has a number of oversight tools available to affect the nature of Dodd-

Frank Act rulemaking, including confirmation hearings for nominees to head the agencies,

oversight hearings, and letters to and meetings with agency representatives. Appropriations

restrictions can be used with regard to agencies who receive appropriated funds. Congressional

Review Act resolutions of disapproval can call attention to certain rules.

This report will not be updated.

Contents

Introduction ...............................................................................................................................1

This Report ...........................................................................................................................2

Methodology...................................................................................................................2

Number of Dodd-Frank Act Rules Is Unknowable.......................................................................4

Some Rulemaking Authorities May Have Existed Previously ................................................4

Non-rulemaking Provisions May Result in Rules...................................................................5

Various Agencies Are Required or Permitted to Issue Rules.........................................................6

Rulemaking Agency Discretion.............................................................................................8

Methods of Rulemaking ........................................................................................................9

Additional Comment Opportunities and Transparency................................................... 11

Most Rulemaking Provisions Have No Deadlines...................................................................... 11

How Rulemaking Deadlines Are Established.......................................................................12

Some Early Deadlines .........................................................................................................14

As Soon As Practicable .................................................................................................14

Within 90 Days .............................................................................................................15

Within 180 Days ...........................................................................................................15

Within Six Months ........................................................................................................16

An “Obligation of Speed” ...................................................................................................16

Ten Dodd-Frank Act Final Rules Have Been Published .......................................................17

Some Federal Rulemaking Requirements Are Not Applicable to Dodd-Frank Rules ..................18

Many Rulemaking Requirements, and Exceptions, Apply to Dodd-Frank Act Rules ............19

Administrative Procedure Act........................................................................................20

Regulatory Flexibility Act .............................................................................................20

Some Rulemaking Requirements and Controls Are Not Applicable to Certain

Agencies ..........................................................................................................................21

Executive Order 12866 .................................................................................................21

Paperwork Reduction Act..............................................................................................22

Unfunded Mandates Reform Act ...................................................................................22

Appropriations Restrictions...........................................................................................23

Congressional Oversight ...........................................................................................................24

Options ...............................................................................................................................25

Congressional Review Act ..................................................................................................26

Tables

Table 1. Provisions in the Dodd-Frank Act That Expressly Reference Rulemaking, by

Agency ...................................................................................................................................7

Table 2. Deadlines for Issuing Rules Pursuant to the Dodd-Frank Act ........................................12

Table A-1. Mandatory Rulemaking Provisions in the Dodd-Frank Act .......................................28

Table B-1. Discretionary Rulemaking Provisions in the Dodd-Frank Act ...................................59

Appendixes

Appendix A. Mandatory Rulemaking Provisions .......................................................................28

Appendix B. Discretionary Rulemaking Provisions ...................................................................59

Contacts

Author Contact Information ......................................................................................................88

________________________________________________________________________

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

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Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
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