Bill Details
HR.1606 - 119th Congress
Status
Latest action
2025-02-26 - Referred to the Committee on the Judiciary, and in addition to the Committees on Small Business, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced Date
2025-02-26
Policy Area
Finance and Financial Sector
Committees
View committees (3)
Cosponsors
6
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would require certain federal agencies, especially the Consumer Financial Protection Bureau, to do a more detailed check of how new rules affect small businesses and other small entities. In plain terms, it aims to make agencies explain more clearly when a rule could raise costs for small companies, and to show why they did or did not choose a less burdensome option. The goal is to give small businesses more protection during the rulemaking process and make agencies more accountable when they write regulations that may affect credit, compliance costs, or business operations.
- It adds a new requirement for agencies to consider the effect of proposed rules on small entities as part of their regulatory flexibility review.
- When an agency does not choose a smaller-business-friendly alternative, it must give a detailed explanation using factual, policy, and legal reasons.
- For final rule reviews, a covered agency must describe steps taken to reduce added credit costs for small businesses.
- If no significant alternative for small entities was adopted, the agency must explain why the size and resources of small businesses should not affect the rule.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1606 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1606
To impose additional requirements for covered agencies in regulatory
flexibility analysis.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 26, 2025
Mr. Fitzgerald (for himself and Mr. Fallon) introduced the following
bill; which was referred to the Committee on the Judiciary, and in
addition to the Committees on Small Business, and Financial Services,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
A BILL
To impose additional requirements for covered agencies in regulatory
flexibility analysis.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Making the CFPB Accountable to Small
Businesses Act of 2025''.
SEC. 2. RULEMAKING UNDER DODD-FRANK WALL STREET REFORM AND CONSUMER
PROTECTION ACT.
Section 1022(b)(2)(A) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5512(b)(2)(A)) is amended--
(1) in clause (i), by striking ``and'' at the end;
(2) in clause (ii), by striking the semicolon at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(iii) the impact of proposed rules on
small entities, in accordance with section 609
of title 5, United States Code;''.
SEC. 3. INITIAL REGULATORY FLEXIBILITY ANALYSIS.
Section 603(d)(1) of title 5, United States Code, is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(D) where the covered agency does not adopt any
alternatives described in paragraphs (1) through (4) of
subsection (c), a detailed justification of the covered
agency's determination that the relative size and
resources of small entities should have no bearing on
the rule, supported by factual, policy and legal
reasons.''.
SEC. 4. FINAL REGULATORY FLEXIBILITY ANALYSIS.
Section 604(a) of title 5, United States Code, is amended in the
second paragraph (6) to read as follows:
``(7) for a covered agency, as defined in section
609(d)(2), a description of the steps the agency has taken to
minimize any additional cost of credit for small entities and,
where no significant alternatives for small entities was
adopted, a detailed justification of the covered agency's
determination that the relative size and resources of small
entities should have no bearing on the rule, supported by
factual, policy and legal reasons.''.
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