Tuesday, May 28, 2024

Kennedy introduces bill to protect taxpayers from CFPB bureaucracy

by BIZ Magazine

WASHINGTON – Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, introduced the Transparency in CFPB Cost-Benefit Analysis Act to ensure that the Consumer Financial Protection Bureau (CFPB) does not does not establish regulations that would foist unreasonable costs or harms onto taxpayers, financial entities or consumers.

The legislation would amend the Dodd–Frank Wall Street Reform and Consumer Protection Act to require a thorough cost-benefit analysis for all rules proposed by the CFPB. That would stop many misguided bureaucratic rules that could hurt hardworking Americans in their tracks.

“Now more than ever, the Consumer Financial Protection Bureau must make sure that it doesn’t hamstring a struggling economy with burdensome regulations. The CFPB needs to put taxpayers before Washington bureaucrats, and this bill would help ensure that,” said Kennedy.

The bill would require the CFPB to:

  • Conduct a qualitative and quantitative assessment of all direct and indirect costs and benefits of the proposed regulation. This includes compliance costs; effects on economic activity, efficiency, competition and capital formation; regulatory and administrative costs; and costs imposed on state, local and tribal entities.
  • Identify alternatives to the proposed regulation and compare the benefits and costs of those alternatives.
  • Consult with the Small Business Administration’s Office of Advocacy if a proposed rule would increase costs on small businesses.
  • Assess the regulatory burden that the proposed regulation would impose on regulated entities.
  • Provide a probability distribution of potential cost and benefit outcomes.
  • Ensure the proposed rule is not duplicative, inconsistent or incompatible with an existing rule.
  • Disclose the source material for any assumptions and identify any studies or data the rulemaking used.

The U.S. Chamber of Commerce, Independent Community Bankers Association, Consumer Bankers Association and the Credit Union National Association support this legislation.

Full bill text is available here

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