Transparency in CFPB Cost-Benefit Analysis Act
Bill: S.4522 | Sponsor: Sen. Kennedy, John (R-LA)
Policy area: Finance and Financial Sector

Summary:
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.

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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