H.R. 2331 — Transparency in CFPB Cost-Benefit Analysis Act

This section establishes additional rulemaking requirements for the Consumer Financial Protection Bureau (CFPB)—which administers, enforces, and implements federal consumer financial laws—by directing that each notice of proposed rulemaking include (1) a statement of the need for the regulation and why the private market, states, localities, or tribes cannot address it; (2) an examination of whether the regulation is duplicative, inconsistent, or incompatible with other federal regulations, with justifications and burden-reduction plans if applicable; (3) a quantitative and qualitative assessment of anticipated direct and indirect costs and benefits, including compliance costs for regulated entities and small businesses, economic effects, capital formation, and costs to state, local, and tribal entities; (4) identification and cost-benefit analysis of reasonable alternatives; (5) consultation with the Small Business Administration's Office of Advocacy if small business costs would increase, to minimize effects; (6) justifications if quantified net benefits do not exceed those of alternatives or if quantified benefits do not exceed costs; (7) an assessment of burden distribution, including disproportionate effects on consumers or small businesses; and (8) when feasible, a probability distribution of outcomes using statistical techniques. It further requires discussion of underlying assumptions and descriptions of studies or data used, including peer-review status.