Bill Details
HR.2331 - 119th Congress
Status
Latest action
2025-03-25 - Referred to the House Committee on Financial Services.
Introduced Date
2025-03-25
Policy Area
Finance and Financial Sector
Committees
View committees (1)
Cosponsors
View cosponsors (2)
6
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would require the Consumer Financial Protection Bureau to be much more open and detailed when it proposes new rules. Before a proposed rule can move forward, the Bureau would have to explain why the rule is needed, show why existing private or government action is not enough, and carefully compare the rule’s costs and benefits. It would also have to look at other possible ways to solve the problem, explain any extra burden on consumers, small businesses, or government agencies, and describe the data and studies used to support the rule. The goal is to make CFPB rulemaking more transparent and to better show how new regulations may affect the public and the economy.
- The Bureau would have to publish the full proposed rule and include a clear reason for why it is needed.
- It would have to study whether the proposal overlaps with, conflicts with, or repeats other federal rules, and explain why it should still be adopted if it does.
- The bill requires a full review of expected costs and benefits, including effects on small businesses, jobs, competition, economic growth, and costs to state, local, and tribal governments.
- If a proposed rule could raise costs for small businesses, the Bureau would need to consult the Small Business Administration’s advocacy office on ways to reduce those costs.
Official Summaries
Transparency in CFPB Cost-Benefit Analysis Act
This bill sets forth information required to be included in a rulemaking made by the Consumer Financial Protection Bureau (CFPB). Specifically, the CFPB must publish a justification of the proposed rulemaking; a quantitative and qualitative assessment of all anticipated direct and indirect costs and benefits; alternatives to the proposed rulemaking; impacts on small businesses; and any assumptions, data, or studies used in preparing this information.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2331 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2331
To enhance rulemaking requirements for the Bureau of Consumer Financial
Protection, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 25, 2025
Mr. Loudermilk (for himself and Mr. Barr) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To enhance rulemaking requirements for the Bureau of Consumer Financial
Protection, and for other purposes.
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 ``Transparency in CFPB Cost-Benefit
Analysis Act''.
SEC. 2. TRANSPARENCY IN COST-BENEFIT ANALYSIS.
Section 1022(b) of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5512(b)) is amended by adding at the end the following:
``(5) Additional rulemaking requirements.--
``(A) In general.--Each notice of proposed
rulemaking issued by the Bureau shall be published in
its entirety in the Federal Register and shall
include--
``(i) a statement of the need for the
proposed regulation;
``(ii) an examination of why the Bureau
must undertake the proposed regulation and why
the private market, State, local, or tribal
authorities cannot adequately address the
problem;
``(iii) an examination of whether the
proposed regulation is duplicative,
inconsistent, or incompatible with other
Federal regulations and orders;
``(iv) if the proposed regulation is found
to be duplicative, inconsistent, or
incompatible with other Federal regulations and
orders, a discussion of--
``(I) why the proposed regulation
is justified;
``(II) how the proposed regulation
can coexist with the existing
regulations; and
``(III) how the Bureau plans to
reduce the regulatory burden associated
with the duplicative, inconsistent, or
incompatible proposed regulation;
``(v) a quantitative and qualitative
assessment of all anticipated direct and
indirect costs and benefits of the proposed
regulation, including--
``(I) compliance costs for all
regulated entities, including small
businesses;
``(II) effects on economic
activity, efficiency, competition and
capital formation;
``(III) regulatory and
administrative costs of implementation;
and
``(IV) costs imposed on State,
local and tribal entities;
``(vi) an identification of reasonable
alternatives to the regulation, including
modification of an existing regulation;
``(vii) an analysis of the costs and
benefits, both quantitative and qualitative, of
any alternative identified pursuant to clause
(v);
``(viii) if the Bureau determines the
proposed regulation would increase costs for
small businesses, then the Bureau shall consult
the Office of Advocacy within the Small
Business Administration to determine ways to
minimize the effect of direct and indirect
costs imposed on small businesses by the
proposed regulation;
``(ix) if quantified net benefits of the
proposed action do not outweigh the quantified
net benefits of the alternatives, a
justification of the regulation;
``(x) if quantified benefits identified
pursuant to clause (iv) do not outweigh the
quantified costs of the regulation, a
justification of the regulation;
``(xi) an assessment of how the burden
imposed by the regulation will be distributed;
including whether consumers, or small
businesses will be disproportionately burdened;
and
``(xii) when feasible, and using
appropriate statistical techniques, a
probability distribution of the relevant
outcomes of the proposed regulation.
``(B) Assumptions and studies used.--With respect
to the information required to be included under
subparagraph (A), the Bureau will include--
``(i) a discussion of underlying
assumptions used as a basis for such
information; and
``(ii) a description of any studies or data
used in preparing such information, and whether
such studies were peer-reviewed.''.
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