Senate Bill Could Slow the Pace of New CFPB Rules
A bill introduced in the Senate last month that could slow the pace new regulations coming from the Consumer Financial Protection Bureau may be addressed during a Sept. 20 meeting of the Senate Committee on Homeland Security and Governmental Affairs.
S. 3468, introduced by Sens. Mark Warner (D-Va.), Rob Portman (R-Ohio) and Susan Collins (R-Maine) in August, would require independent agencies like the CFPB and NCUA to analyze the costs and benefits of new regulations and tailor new rules to minimize unnecessary burdens on the economy.
The bill adopts a key recommendation of the president’s Jobs Council, according to a release from Warner’s office.
“It is important to strike the right balance between protecting vital public safeguards and imposing costly regulations,” Warner said. “However, we all agree that basic cost-benefit principles should apply to all regulators. This bipartisan legislation will help to ensure that all agencies only advance major regulations with a firm understanding about their impact on the economy.”
Independent agencies have not been required to scrutinize the cost and effects of major new regulations as federal agencies have. The bill would fill that gap by authorizing the president to bring independent agencies into the same analysis and review process that governs other regulators.
“Independent agencies exercise vast power over major sectors our economy — from telecom, to agriculture, to financial services — but they are exempt from common-sense requirements including cost-benefit analysis of major regulations to ensure they do more good than harm,” Portman said.
“This bill would close the loophole for independent agencies by authorizing the president to bring them within the same regulatory review framework that applies to other agencies,” he said. “This is a bipartisan, consensus reform with broad support, and it will promote a more stable regulatory environment for economic growth and job creation"
According to government records sourced by Warner’s office, since 2008, 58 new major final rules have been issues by independent agencies but only one was based upon a complete cost-benefit analysis.