Bills
| 3.23.22

Should Congress Have More Power to Approve (or Reject) Major Regulations? (H.R. 427)

Do you support or oppose this bill?

What is H.R. 427?

(Updated July 19, 2017)

This bill would require Congress to approve all new major regulations by enacting a joint resolution of approval within 70 legislative or session days after the federal agency proposing the rule submits its final report to Congress. If a Congressional resolution of approval is not enacted within that period, the major rule would be considered ‘not approved’ and would not take effect. 


What's a major rule? Current law defines it as anything that has resulted in, or is likely to result in: 
  • "An annual effect on the economy of $100 million or more; 
  • A major increase in costs or prices for consumers, individual industries, federal, state, or local government agencies, or geographic regions; or 
  • Significant adverse effects on competition, employment, investment, productivity, or innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets."

A major rule could take effect for one 90-calendar day period without the approval of Congress if the President determines it is necessary:

  • Because of an imminent threat to public health or safety or another type of emergency,
  • For the enforcement of criminal law, 
  • For national security, 
  • Or to implement an international trade agreement.

Federal agencies would be kept from allowing any major rule to take effect without congressional review. Courts would also have the authority to review whether an agency has finished all the necessary requirements under this Act before a major rule can take effect.

Argument in favor

Federal agencies have issued costly regulations without oversight from Congress or much engagement from the general public. This would allow both to reassert their voice in the regulatory process.

Argument opposed

The regulations that would have to be approved or rejected by Congress under this bill would be the most significant impact on the environment, the economy, and public health.

Impact

People and businesses that would be affected by the implementation of a major rule, agencies proposing a major rule, and Congress.

Cost of H.R. 427

The CBO analyzed this legislation and could not determine the budgetary effects of making all major regulatory rules subject to Congressional approval in the future. It does anticipate that a lack of subsequent legislative action that affects those rules there could be significant effects on both direct spending and revenues.

Additional Info

In-Depth: According to the bill’s sponsor, Rep. Todd Young (R-IN), the agencies of the executive branch finalized 3,541 new rules and regulations in 2014 — 200 of which were considered major — which puts the total economic impact of regulatory compliance at more than $1.8 trillion.

The American Action Forum researched the impact this bill could have, finding that over $27 billion in regulatory costs and 11.5 million hours of paperwork could be saved each year.

The Coalition for Sensible Safeguards opposes this bill, calling it a: 

“back-door way to gut enforcement of existing legislation and future safeguards that big-money interests do not want.”

In its analysis of the bill's impact, the Cato Institute concluded: 

“Nothing in the REINS Act would hinder a sympathetic Congress from approving new regulations. In all likelihood, however, the REINS Act’s congressional approval process would prevent the implementation of particularly unpopular or controversial regulatory initiatives.”

The House approved the REINS Act in August 2013 on a 232-183 vote, but it failed to receive a vote in the Senate.


Media:

Summary by Eric Revell
(Photo Credit: Dvortygirl)