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Eakinomics: Tracking
the Congressional Review Act in 2021
Recall that Congress has legislative tools to address concerns over
administration regulations. Specifically, the Congressional Review Act (CRA), passed in 1996, allows legislators
to introduce a resolution of disapproval, and receive expedited consideration
of the resolution, to rescind a regulation. If successfully passed, the rule
“may not be reissued in substantially the same form.” In practice, this would
end the life of the regulation permanently. The CRA sat in relative obscurity
until 2017, with the exception of overturning an ergonomics rule in 2001.
In 2017, however, the Trump Administration and Republican Congress put the
CRA on (relative) steroids, rescinding 16 rules. With the precedent, AAF’s
Daniel Bosch has undertaken to provide a CRA Tracker for this, the 117th,
Congress. To cut to the bottom line: “So far in the 117th
Congress, six resolutions of disapproval have been introduced but none has
yet been advanced through either chamber of Congress.”
Those six rules fall into two categories. Four are rules published in the
final 60 legislative days of the previous Congress; the CRA has a “look back”
provision that makes these fair game. Oil and Natural Gas Sector: Emission Standards for
New, Reconstructed, and Modified Sources Review would scale
back and eliminate some of the requirements of an Obama Administration rule
on methane emissions stemming from oil and natural gas production. National Banks and Federal Savings Associations as
Lenders defines when banks and savings associations are
considered “true lenders” when they work with third parties to facilitate
lending. Procedural Requirements and Resubmission Thresholds
Under Exchange Act Rule 14a-8 made changes to Securities and
Exchange Commission regulations governing what shareholder proposals must be
published in a company’s shareholder proxy statements. Hearings Held by Administrative Appeals Judges of
the Appeals Council clarifies when Social Security
Administration administrative appeals judges may hold hearings on individual
cases. (Bosch has more details.)
At least to my eye, none of these rules seems especially earthshaking, but
importance is very much in the eye of the beholder. That probably applies as
well to the next two rules currently under consideration, which the
Trump Administration finalized at the beginning of this Congress. The first
is the Equal Employment Opportunity Commission’s Update of Commission’s Conciliation Procedures that
updated the procedures for pre-litigation settlement of discrimination
charges filed under the Civil Rights Act, the Americans with Disabilities
Act, the Genetic Identification Nondiscrimination Act, and the Age
Discrimination in Employment Act.
The second is Health and Human Services’ (HHS) Securing Updated and Necessary Statutory
Evaluations Timely (SUNSET) rule, and is likely to be a
bigger deal. The rule garnered considerable attention because it required HHS
and its agencies to review most of their regulations within 10 years to see
if they should stay on the books. If the review did not occur over that time,
the regulation would sunset.
Sunsetting federal rules appears to be unappealing to the Democrats
controlling Congress. And the CRA is a powerful tool to keep HHS from doing
so again.
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