H.R.2331 - Transparency in CFPB Cost-Benefit Analysis Act (119th Congress)
Summary
H.R.2331, the "Transparency in CFPB Cost-Benefit Analysis Act," aims to enhance the rulemaking requirements for the Bureau of Consumer Financial Protection (CFPB). The bill mandates that the CFPB include more detailed analyses in its proposed rulemakings, specifically regarding the need for the regulation, its potential duplication with existing rules, and a comprehensive assessment of costs and benefits. It also requires the CFPB to consider alternatives and consult with the Small Business Administration to minimize the impact on small businesses.
Expected Effects
If enacted, H.R.2331 would likely lead to more rigorous and transparent cost-benefit analyses by the CFPB before implementing new regulations. This could result in fewer regulations being enacted or regulations being modified to reduce their economic impact. The bill could also increase the time and resources required for the CFPB to issue new rules.
Potential Benefits
- Increased transparency in CFPB rulemaking.
- More thorough consideration of the costs and benefits of proposed regulations.
- Reduced regulatory burden on businesses, especially small businesses.
- Greater accountability of the CFPB.
- Potentially more efficient and effective consumer financial protection regulations.
Potential Disadvantages
- Increased complexity and delays in the CFPB rulemaking process.
- Potential for the CFPB to be overly cautious in implementing new regulations, hindering consumer protection efforts.
- Increased administrative burden on the CFPB.
- Possible challenges in accurately quantifying all costs and benefits.
- Could be used to weaken consumer protection regulations.
Constitutional Alignment
The bill appears to align with the principles of limited government and accountability, which are arguably implicit in the Constitution. By requiring more thorough cost-benefit analyses, the bill seeks to ensure that regulations are justified and do not unduly burden individuals or businesses. This aligns with the general welfare clause of the Preamble. However, the Constitution does not explicitly address the specific requirements for regulatory agencies like the CFPB.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).