Overview
Title
To amend chapter 8 of title 5, United States Code, to provide that major rules of the executive branch shall have no force or effect unless a joint resolution of approval is enacted into law.
ELI5 AI
The bill is like a new rulebook saying that if the government wants to make big new rules, they first have to ask for permission from Congress, kind of like asking your parents before doing something major.
Summary AI
S. 5082 is a bill introduced in the U.S. Senate aimed at increasing accountability and transparency in the federal regulatory process. It amends chapter 8 of title 5, United States Code, to require that major rules proposed by the executive branch do not take effect unless approved by Congress through a joint resolution. The bill outlines a detailed procedure for congressional review of both major and nonmajor rules, including timelines and responsibilities of federal agencies and the Government Accountability Office. It also includes definitions for terms like "major rule" and "guidance document" and provides for the publication and review of existing and new rules.
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AnalysisAI
Summary of the Bill
The bill under consideration seeks to amend Chapter 8 of Title 5 of the United States Code, introducing measures to ensure that major rules from the executive branch have no legal effect without a joint resolution of approval from Congress. Essentially, it proposes to enhance Congressional oversight over significant regulatory actions taken by federal agencies. The bill outlines various procedures for reviewing and approving or disapproving these rules, classifying them into "major" and "nonmajor" categories based on their economic impact and scope. The legislation also contains provisions regarding the publication of agency guidance documents and mandates periodic reviews and potential expiration of existing rules.
Significant Issues
One of the primary concerns highlighted with this bill is the potential for delays in implementing critical regulatory changes due to the requirement for congressional approval. This delay could affect how quickly government agencies address pressing public needs through regulation. Moreover, the exemption for monetary policy could lead to significant financial regulations proceeding without the same legislative oversight as other sectors, raising questions about accountability.
Judicial review limitations are another issue, where certain actions or omissions within this bill are not open to court challenges, which could weaken checks and balances within the government system. Additionally, the language used regarding what constitutes "significant guidance documents" is ambiguous, which may lead to arbitrary decision-making.
The bill's provision for the expiration of rules after ten years could also create legislative gridlock. The lack of clarity on how the budgetary effects will be calculated could lead to inconsistent interpretations and potential financial management issues.
Impact on the Public
For the general public, this bill represents an attempt to restore some legislative authority over regulatory matters, ensuring Congressional oversight over significant economic regulations. This could potentially lead to more carefully considered rules that align more closely with public interest. However, at the same time, the bill might result in slower regulation processes, affecting timely responses to public safety and welfare needs.
The expiration of rules and the necessity for reauthorization could create instability in long-term regulatory frameworks that the public relies on for consistent governance in areas such as environment, health, and safety.
Impact on Specific Stakeholders
Federal agencies would experience significant implications if this bill passes. Agencies might face administrative burdens and delays in implementing urgent rules, leading to inefficiencies. The judicial review exemptions might make it difficult for these agencies to challenge congressional decisions on rules, potentially affecting their operational autonomy.
Industries subject to federal regulations could experience both positive and negative effects. While industries might appreciate increased Congressional scrutiny, which could prevent burdensome regulations, they might also face uncertainty with potentially frequent changes in rules or delays. On the other hand, deregulatory actions could be expedited, which some industries might find advantageous.
Finally, Congress would likely see an increased workload as it grapples with approving a significant number of rules, potentially affecting its ability to focus on other legislative duties. The impact would likely depend on Congress's ability to manage this enhanced oversight responsibility without hindering the pace at which necessary rules are instituted.
Financial Assessment
The bill known as S. 5082, titled the “Regulations from the Executive in Need of Scrutiny Act of 2024,” does not explicitly mention direct spending or financial appropriations, which is consistent with its nature as a regulatory reform proposal. However, it does contain multiple references to financial impacts and budgetary implications arising from the implementation of major and significant regulatory actions.
Financial Thresholds and Budgetary Definitions
A repeated financial reference in the bill is the threshold of $100 million in annual economic impact, which defines a "major rule." This threshold is significant because it delineates which rules require a more stringent review process, potentially indicating rules with considerable economic implications. The impact of such rules can vary, potentially increasing costs for private sectors, affecting prices, or influencing public spending.
Budgetary Effects Evaluation
As described in Section 4, the bill amends the Balanced Budget and Emergency Deficit Control Act of 1985 by specifying that any rule subject to the congressional approval procedure impacting budget authority, outlays, or receipts is assumed to be effective unless not approved per section 802. This reference implies a concern that regulatory actions could affect national budget metrics, and the bill seeks to ensure such rules do not take effect unchecked, potentially safeguarding against unforeseen budgetary impacts.
Lack of Clarity on Budgetary Calculations
The bill raises the issue of potential inconsistencies and differing interpretations regarding how the budgetary effects of rules will be calculated. While Section 811 outlines a process for how agencies should estimate the costs of regulatory actions, the specifics are left to guidance from the Office of Management and Budget (OMB), which could lead to varied interpretations among agencies.
Exclusion of Financial Regulations from Review
Notably, Section 808 exempts rules related to monetary policy, which means significant financial regulations might not undergo the same rigorous review process. This exclusion is relevant given concerns about transparency and fiscal accountability in monetary policy decisions, as raised in the identified issues list.
Potential Economic Burden and Job Effects Assessment
The bill mentions that the review process for major rules will consider cost-benefit analyses, including assessments of job creation or loss in both the public and private sectors. The impact on employment costs and the economic burden of regulatory actions must be scrutinized, suggesting an intent to prioritize regulations with favorable economic outcomes.
Monitoring and Reporting Costs
Finally, the bill charges the Government Accountability Office (GAO) with studying the economic costs imposed by existing rules. It's noteworthy that the study lacks specific budget allocations, which could raise practical concerns about resource allocation and the ability to conduct a comprehensive analysis, as highlighted in the identified issues.
In summary, S. 5082 references significant financial implications largely revolving around the economic impacts of regulatory actions and their review. The focus is specially on ensuring that major regulatory changes considered potentially burdensome or costly receive adequate legislative scrutiny to prevent unmitigated fiscal impacts on the economy.
Issues
The requirement for congressional approval for major rules detailed in Section 3 and the associated Congressional review process in Sections 801, 802, and 803 could lead to significant delays in the implementation of vital regulatory changes, impacting both the operational efficiency of government agencies and the timely addressing of public needs.
The exemption for monetary policy in Section 808 raises concerns about transparency and accountability, as it could allow significant financial regulations to proceed without the same level of legislative oversight applied to other rules.
The provision in Section 805(a) that exempts determinations, findings, actions, or omissions under this chapter from judicial review could hinder checks and balances, enabling unchecked governmental power and limiting avenues for legal recourse.
The vague language used regarding 'significant guidance documents' in Section 804 and throughout the bill may lead to inconsistencies in classification and enforcement, creating confusion and potential for arbitrary decision-making.
The expiration of rules after ten years, as specified in Section 813, could result in unnecessary legislative gridlock, potentially disrupting necessary governance and pressing regulatory issues due to partisan disagreements.
The lack of clarity on how the budgetary effects of rules will be calculated or measured in Section 4 might lead to differing interpretations and inconsistencies, potentially impacting government financial management and oversight.
The section providing an exemption for deregulatory actions in Section 809 is concerning due to the lack of a clear definition for 'deregulatory action', which could lead to ambiguity and a potential gap in accountability for deregulatory activities.
The language in Section 812 regarding the publication and maintenance of guidance documents does not adequately address the handling of sensitive information, potentially leading to security and privacy concerns.
Section 811's broad definition of 'significant regulatory action' and its requirements for regulatory planning and deregulatory offsets could prevent timely implementation of necessary regulations, particularly in response to unforeseen needs.
The study required by Section 5 lacks specific budget or resources allocation, raising concerns about the practicality and potential financial implications of carrying out a comprehensive analysis of all existing rules.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the Act specifies that it will be known as the “Regulations from the Executive in Need of Scrutiny Act of 2024”.
2. Purpose Read Opens in new tab
Summary AI
The purpose of this Act is to make the Federal regulatory process more transparent and accountable by ensuring that Congress votes on laws, which will lead to better-crafted legislation and enhance the oversight responsibilities of the legislative branch. The Act emphasizes Congress's role in law-making as outlined in the U.S. Constitution and seeks to address past issues of overly broad delegation of power without sufficient oversight.
3. Congressional review of agency rulemaking Read Opens in new tab
Summary AI
The bill describes a process for Congress to review and approve or disapprove rules made by federal agencies. Major rules, which have significant economic impacts, require joint approval from both the House and Senate, while nonmajor rules follow a streamlined disapproval process. It outlines specific definitions, procedures, and timelines for these reviews and establishes conditions under which rules can be challenged or exempt from these processes.
Money References
- “(3) The term ‘major rule’— “(A) means any rule, including an interim final rule, that the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget finds has resulted in or is likely to result in— “(i) an annual effect on the economy of $100 million or more; “(ii) a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or “(iii) significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets; “(B) includes any significant guidance document; and “(C) does not include any rule promulgated under the Telecommunications Act of 1996 (Public Law 104–104; 110 Stat. 56) or the amendments made by that Act. “
- “(6) The term ‘significant guidance document’— “(A) means a guidance document disseminated to regulated entities or the general public that may reasonably be anticipated to— “(i) lead to an annual effect of $100,000,000 or more, or adversely affect in a material way the economy, a sector of the economy, productivity, competition, employment, the environment, public health or safety, or State, local, or Tribal governments or communities; “(ii) create a serious inconsistency, or otherwise interfere, with an action taken or planned by another agency; “(iii) materially alter the budgetary impact of any entitlement, grant, user fees, or loan programs, or the rights or obligations of recipients thereof; or “(iv) raise novel legal or policy issues arising out of legal mandates; and “(B) does not include any guidance document— “(i) on regulations issued in accordance with section 556 or 557 of this title; “(ii) that pertains to a military or foreign affairs function of the United States, other than procurement regulations and regulations involving the import or export of non-defense articles and services; “(iii) on regulations that are limited to the organization, management, or personnel matters of a Federal agency; or “(iv) belonging to a category of guidance documents exempted by the Administrator of the Office of Information and Regulatory Affairs.
- (8) The term ‘significant regulatory action’ means any regulatory action, other than monetary policy proposed or implemented by the Board of Governors of the Federal Reserve System or the Federal Open Market Committee, that is likely to— “(A) have an annual effect on the economy of $100,000,000 or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or Tribal governments or communities; “(B) create a serious inconsistency or otherwise interfere with an action taken or planned by another Federal agency; “(C) materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or “(D) raise a novel legal or policy issue.
801. Congressional review Read Opens in new tab
Summary AI
The section describes the process for congressional review of new federal agency rules, requiring the agency to submit a report to Congress and the Comptroller General before a rule can take effect. It outlines the steps for the approval of major rules, including providing reports and analyses, requiring that major rules can't take effect without congressional approval, and under specific conditions, allows the President to temporarily implement a rule critical for health, safety, criminal enforcement, national security, or international trade.
802. Congressional approval procedure for major rules Read Opens in new tab
Summary AI
The section outlines the process for Congress to approve major rules through joint resolutions. It describes how these resolutions should be introduced, debated, and voted on within specified time frames in both the House of Representatives and the Senate, ensuring expedited consideration without amendments.
803. Congressional disapproval procedure for nonmajor rules Read Opens in new tab
Summary AI
Congress has outlined a procedure in Section 803 for disapproving nonmajor rules using joint resolutions. These resolutions must be introduced within a specific timeframe, go through committees, and follow special rules in the Senate for debate and voting, including limits on amendments and debate time.
804. Definitions Read Opens in new tab
Summary AI
In this section, several important terms are defined: "Federal agency" refers to any agency as described in section 551(1); "guidance document" is a non-regulatory statement issued by a Federal agency to explain policy or interpretation on an issue; "major rule" includes those rules with significant economic impacts or consequences on various sectors, and specifically includes significant guidance documents while excluding certain telecommunications rules; "nonmajor rule" is any rule not classified as major; "rule" expands on section 551's definition, allowing for guidance documents, but excludes certain agency-specific or procedural rules; "significant guidance document" is a guidance document with substantial economic impacts or legal significance, exempting military functions and certain organizational documents; and "submission or publication date" for rules indicates when Congress receives required reports or when such rules are published in the Federal Register, depending on the rule's type.
Money References
- For purposes of this chapter: (1) The term “Federal agency” means any agency as that term is defined in section 551(1). (2) The term “guidance document” means a statement of general applicability and future effect, other than a regulatory action, issued by a Federal agency that sets forth— (A) a policy on a statutory, regulatory, or technical issue; or (B) an interpretation of a statutory or regulatory issue. (3) The term “major rule”— (A) means any rule, including an interim final rule, that the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget finds has resulted in or is likely to result in— (i) an annual effect on the economy of $100 million or more; (ii) a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or (iii) significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets; (B) includes any significant guidance document; and (C) does not include any rule promulgated under the Telecommunications Act of 1996 (Public Law 104–104; 110 Stat. 56) or the amendments made by that Act.
- (6) The term “significant guidance document”— (A) means a guidance document disseminated to regulated entities or the general public that may reasonably be anticipated to— (i) lead to an annual effect of $100,000,000 or more, or adversely affect in a material way the economy, a sector of the economy, productivity, competition, employment, the environment, public health or safety, or State, local, or Tribal governments or communities; (ii) create a serious inconsistency, or otherwise interfere, with an action taken or planned by another agency; (iii) materially alter the budgetary impact of any entitlement, grant, user fees, or loan programs, or the rights or obligations of recipients thereof; or (iv) raise novel legal or policy issues arising out of legal mandates; and (B) does not include any guidance document— (i) on regulations issued in accordance with section 556 or 557 of this title; (ii) that pertains to a military or foreign affairs function of the United States, other than procurement regulations and regulations involving the import or export of non-defense articles and services; (iii) on regulations that are limited to the organization, management, or personnel matters of a Federal agency; or (iv) belonging to a category of guidance documents exempted by the Administrator of the Office of Information and Regulatory Affairs. (7) The term “submission or publication date”, except as otherwise provided in this chapter, means— (A) in the case of a major rule, the date on which the Congress receives the report submitted under section 801(a)(1); and (B) in the case of a nonmajor rule, the later of— (i) the date on which the Congress receives the report submitted under section 801(a)(1); and (ii) the date on which the nonmajor rule is published in the Federal Register, if so published. ---
805. Judicial review Read Opens in new tab
Summary AI
According to SEC. 805 on judicial review, most decisions or actions made under this chapter cannot be reviewed by a court. However, the courts can check if a Federal agency has completed the necessary steps for a rule to become effective. Passing a joint resolution of approval by Congress doesn’t change the authority of a rule or affect any legal challenges to the rule's validity.
806. Affirmative defense Read Opens in new tab
Summary AI
An affirmative defense is available to a defendant in a Federal agency or U.S. court if a reasonable person could not have predicted that their actions were illegal due to unclear legal language.
807. Private right of action Read Opens in new tab
Summary AI
A person affected by a Federal agency's failure to follow the rules can sue in a U.S. district court for an order to stop the rule before it starts. Additionally, if someone can show they might be harmed by a rule, they can challenge the agency's decision if the rule is labeled as non-major and ask the court to either cancel the rule or declare it a major rule, requiring more stringent approval.
808. Exemption for monetary policy Read Opens in new tab
Summary AI
This section states that the rules in this chapter do not apply to matters related to monetary policy that are suggested or carried out by the Federal Reserve or the Federal Open Market Committee.
809. Exemption for deregulatory actions Read Opens in new tab
Summary AI
Sections 802 and 803 do not apply to rules labeled as deregulatory actions as noted in the Unified Agenda and Annual Regulatory Plan, following section 811.
810. Effective date of certain rules Read Opens in new tab
Summary AI
The section states that certain rules about activities like hunting, fishing, or camping, and some less significant rules that must be issued quickly, can go into effect when decided by the relevant Federal agency. This is even if usual notice and public procedure requirements are skipped for good reasons.
811. Regulatory planning and budget Read Opens in new tab
Summary AI
The section outlines the rules for regulatory planning and budgeting, defining key terms such as “costs,” “deregulatory action,” and “significant regulatory action.” It describes the responsibilities of the Director of the Office of Management and Budget in publishing regulatory agendas and creating a Federal Regulatory Budget, and specifies the conditions under which significant regulatory actions may be enforced, which include identifying corresponding deregulatory actions and adhering to a set regulatory cost limit.
Money References
- (7) The term “regulatory action” means— (A) any regulation; and (B) any other regulatory guidance, statement of policy, information collection request, form, or reporting, recordkeeping, or disclosure requirements that imposes a burden on the public or governs Federal agency operations. (8) The term “significant regulatory action” means any regulatory action, other than monetary policy proposed or implemented by the Board of Governors of the Federal Reserve System or the Federal Open Market Committee, that is likely to— (A) have an annual effect on the economy of $100,000,000 or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or Tribal governments or communities; (B) create a serious inconsistency or otherwise interfere with an action taken or planned by another Federal agency; (C) materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (D) raise a novel legal or policy issue. (9) The term “State” means each of the several States, the District of Columbia, and each territory or possession of the United States.
812. Publication of guidance documents on the internet Read Opens in new tab
Summary AI
Federal agencies must publish their guidance documents online in a single location chosen by the Director of the Office of Management and Budget, with hyperlinks provided on each agency's website. Guidance documents exempt from disclosure under the Freedom of Information Act are not required to be published, and rescinded documents must be maintained online with clear indication of their rescission status and any related court case details.
813. Expiration of rules Read Opens in new tab
Summary AI
Each major rule made by a Federal agency expires 10 years after a joint resolution's enactment unless extended by a new resolution. Before expiration, the agency must report to Congress and the Comptroller General, and the President can exempt one rule per Congress for up to 30 days if it meets specific criteria.
814. Review of rules in effect Read Opens in new tab
Summary AI
Each Federal agency must review at least 10% of their major rules annually for ten years to decide if they should continue, with Congress needing to approve these rules for them to remain in effect after ten years. If Congress does not approve a rule by then, it will no longer be valid.
4. Budgetary effects of rules subject to section 802 of title 5, United States Code Read Opens in new tab
Summary AI
The section amends a law to clarify that any rule that needs congressional approval under section 802 of title 5, which impacts the budget, will be assumed active unless Congress disapproves it.
5. Government Accountability Office study of rules Read Opens in new tab
Summary AI
The Comptroller General is tasked with conducting a study to find out how many federal rules and major rules are currently active and what their combined economic costs are. The findings of this study must be reported to Congress within one year of the law being enacted.
6. Definition of “rule” to include significant guidance Read Opens in new tab
Summary AI
The bill modifies Section 551(4) of title 5 in the United States Code to broaden the definition of a "rule" to also include "significant guidance," as defined in section 804.