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<title> - REINING IN THE ADMINISTRATIVE STATE: RECLAIMING CONGRESS'S LEGISLATIVE POWER</title> |
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[House Hearing, 118 Congress] |
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[From the U.S. Government Publishing Office] |
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REINING IN THE ADMINISTRATIVE STATE: |
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RECLAIMING CONGRESS'S LEGISLATIVE POWER |
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HEARING |
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BEFORE THE |
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SUBCOMMITTEE ON THE ADMINISTRATIVE STATE, |
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REGULATORY REFORM, AND ANTITRUST |
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OF THE |
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COMMITTEE ON THE JUDICIARY |
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U.S. HOUSE OF REPRESENTATIVES |
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ONE HUNDRED EIGHTEENTH CONGRESS |
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FIRST SESSION |
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FRIDAY, MARCH 10, 2023 |
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Serial No. 118-9 |
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Printed for the use of the Committee on the Judiciary |
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[GRAPHIC NOT AVAILABLE IN TIFF FORMAT] |
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Available via: http://judiciary.house.gov |
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__________ |
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U.S. GOVERNMENT PUBLISHING OFFICE |
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51-502 WASHINGTON : 2023 |
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COMMITTEE ON THE JUDICIARY |
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JIM JORDAN, Ohio, Chair |
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DARRELL ISSA, California JERROLD NADLER, New York, Ranking |
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KEN BUCK, Colorado Member |
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MATT GAETZ, Florida ZOE LOFGREN, California |
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MIKE JOHNSON, Louisiana SHEILA JACKSON LEE, Texas |
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ANDY BIGGS, Arizona STEVE COHEN, Tennessee |
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TOM McCLINTOCK, California HENRY C. ``HANK'' JOHNSON, Jr., |
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TOM TIFFANY, Wisconsin Georgia |
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THOMAS MASSIE, Kentucky ADAM SCHIFF, California |
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CHIP ROY, Texas DAVID N. CICILLINE, Rhode Island |
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DAN BISHOP, North Carolina ERIC SWALWELL, California |
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VICTORIA SPARTZ, Indiana TED LIEU, California |
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SCOTT FITZGERALD, Wisconsin PRAMILA JAYAPAL, Washington |
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CLIFF BENTZ, Oregon J. LUIS CORREA, California |
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BEN CLINE, Virginia MARY GAY SCANLON, Pennsylvania |
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LANCE GOODEN, Texas JOE NEGUSE, Colorado |
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JEFF VAN DREW, New Jersey LUCY McBATH, Georgia |
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TROY NEHLS, Texas MADELEINE DEAN, Pennsylvania |
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BARRY MOORE, Alabama VERONICA ESCOBAR, Texas |
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KEVIN KILEY, California DEBORAH ROSS, North Carolina |
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HARRIET HAGEMAN, Wyoming CORI BUSH, Missouri |
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NATHANIEL MORAN, Texas GLENN IVEY, Maryland |
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LAUREL LEE, Florida |
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WESLEY HUNT, Texas |
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RUSSELL FRY, South Carolina |
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SUBCOMMITTEE ON THE ADMINISTRATIVE STATE, |
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REGULATORY REFORM, AND ANTITRUST |
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THOMAS MASSIE, Kentucky, Chair |
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DARRELL ISSA, California DAVID N. CICILLINE, Rhode Island, |
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KEN BUCK, Colorado Ranking Member |
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MATT GAETZ, Florida HENRY C. ``HANK'' JOHNSON, Jr., |
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MIKE JOHNSON, Louisiana Georgia |
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DAN BISHOP, North Carolina ERIC SWALWELL, California |
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VICTORIA SPARTZ, Indiana TED LIEU, California |
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SCOTT FITZGERALD, Wisconsin PRAMILA JAYAPAL, Washington |
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CLIFF BENTZ, Oregon J. LUIS CORREA, California |
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BEN CLINE, Virginia MARY GAY SCANLON, Pennsylvania |
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LANCE GOODEN, Texas JOE NEGUSE, Colorado |
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JEFF VAN DREW, New Jersey LUCY McBATH, Georgia |
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HARRIET HAGEMAN, Wyoming ZOE LOFGREN, California |
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NATHANIEL MORAN, Texas STEVE COHEN, Tennessee |
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GLENN IVEY, Maryland |
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CHRISTOPHER HIXON, Majority Staff Director |
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AMY RUTKIN, Minority Staff Director & Chief of Staff |
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C O N T E N T S |
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Thursday, March 9, 2023 |
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Page |
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OPENING STATEMENTS |
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The Honorable Thomas Massie, Chair of the Subcommittee on the |
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Administrative State, Regulatory Reform, and Antitrust from the |
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State of Kentucky.............................................. 1 |
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The Honorable David N. Cicilline, Ranking Member of the |
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Subcommittee on the Administrative State, Regulatory Reform, |
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and Antitrust from the State of Rhode Island................... 3 |
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The Honorable Jerrold Nadler, Ranking Member of the Committee on |
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the Judiciary from the State of New York....................... 4 |
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WITNESSES |
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Allyson Ho, Partner, Gibson, Dunn, & Crutcher, LLP |
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Oral Testimony................................................. 7 |
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Prepared Testimony............................................. 9 |
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Jonathan Wolfson, Chief Legal Officer and Policy Director, Cicero |
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Institute |
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Oral Testimony................................................. 12 |
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Prepared Testimony............................................. 14 |
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Ryan Cleckner, Co-founder, Gun University, LLC |
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Oral Testimony................................................. 21 |
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Prepared Testimony............................................. 22 |
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Emily Hammond, Vice Provost for Faculty Affairs, George |
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Washington University Law School |
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Oral Testimony................................................. 25 |
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Prepared Testimony............................................. 27 |
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LETTERS, STATEMENTS, ETC. SUBMITTED FOR THE HEARING |
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All materials submitted for the record by the Subcommittee on the |
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Administrative State, Regulatory Reform, and Antitrust are |
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listed below................................................... 58 |
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Materials submitted by David N. Cicilline, Ranking Member of the |
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Subcommittee on the Administrative State, Regulatory Reform, |
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and Antitrust from the State of Rhode Island, for the record |
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Statement from United Steel, Paper and Forestry, Rubber, |
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Manufacturing, Energy, AlliedIndustrial and Service |
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Workers International Union (USW) |
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Statement from Elizabeth Skerry, Regulatory Policy Associate, |
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Public Citizen |
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An article entitled, ``Buttigieg calls on Trump to back |
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reversing deregulation in wake of train derailment,'' The |
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Hill |
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A letter from the Center for Progressive Reform, colaborated |
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with various institutions, March 10, 2023 |
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A letter from The Coalition for Sensible Safeguards (CSS), |
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February 27, 2023 |
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Materials submitted by the Honorable Pramila Jayapal, a Member of |
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the Subcommittee on the Administrative State, Regulatory |
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Reform, and Antitrust from the State of Washington, for the |
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record |
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A letter support for the Stop Corporate Capture Act from the |
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Coalition for Sensible Safeguards (CSS), March 10, 2023 |
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An article entitled, ``Big oil and gas kept a dirty secret |
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for decades. Now they may pay the price,'' The Guardian |
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A letter from All Aboard Ohio, April 18, 2020, on Norfolk |
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Southern's influence on safety regulations |
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An article entitled, ``Presence and influence in lobbying: |
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Evidence from Dodd-Frank,'' Cambridge University Press |
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REINING IN THE ADMINISTRATIVE |
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STATE: RECLAIMING CONGRESS'S LEGISLATIVE POWER |
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Friday, March 10, 2023 |
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House of Representatives |
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Subcommittee on the Administrative State, |
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Regulatory Reform, and Antitrust |
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Committee on the Judiciary |
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Washington, DC |
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The Subcommittee met, pursuant to notice, at 9:04 a.m., in |
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Room 2141, Rayburn House Office Building, Hon. Thomas Massie |
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[Chair of the Subcommittee] presiding. |
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Present: Representatives Massie, Issa, Buck, Johnson of |
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Louisiana, Bishop, Fitzgerald, Bentz, Cline, Hageman, Moran, |
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Cicilline, Nadler, Johnson of Georgia, Jayapal, Correa, |
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Scanlon, Lofgren, and Ivey. |
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Mr. Massie. The Subcommittee will come to order. |
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Without objection, the Chair is authorized to declare a |
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recess at any time. I anticipate we're going to have to take a |
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break for votes at some point in this hearing. |
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We welcome everyone to the first hearing of the |
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Subcommittee on the Administrative State, Regulatory Reform, |
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and Antitrust. |
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The Chair now recognizes himself for an opening statement. |
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In some ways, the importance of today's hearing goes back |
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to the founding era. Even before America declared its |
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independence, John Adams emphasized that a Republic is a |
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government of laws, not of men. This hearing is about who makes |
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the laws in our country. It's also about how Congress should |
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reclaim its legislative power from the Administrative State. |
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This is an important discussion. |
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By way of background, the U.S. Constitution separates the |
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powers of government between the States and the Federal |
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Government. It further separates the powers among the three |
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branches of the Federal Government. |
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Importantly, Article I of the U.S. Constitution vests the |
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Federal legislative power in Congress. In other words, the |
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words of Chief Justice John Marshall: ``Powers are separated |
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with the intent that the legislature makes the law.'' |
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In the modern day, we have seen a troubling consolidation |
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of powers in the Executive Branch. That is, in part, because of |
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how many regulations, binding rules that affect the American |
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people are coming from the Executive Branch. Indeed, in recent |
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years, the Administrative State has issued regulations carrying |
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the force of law more than 20 times as frequently as America's |
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elected Representatives have passed laws through the process |
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the Constitution requires. |
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When Chair Jordan invited me to Chair this Subcommittee, I |
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asked him what the topics were, what would be our jurisdiction, |
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and he said, ``that Administrative Law would be our |
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jurisdiction.'' I said, ``well, you've just given us |
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jurisdiction over about 95 percent of the Federal Government,'' |
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and I'd be happy to Chair that Committee. |
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What this means is that so much of the law is |
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Administrative Law, unelected bureaucrats in the branch tasked |
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with executing the laws are, instead, making many of those laws |
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that bind the American people. |
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The modern Administrative State's violation of these |
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fundamental principles is significant. In our country, |
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lawmakers should be politically accountable to the electorate. |
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As Professor Philip Hamburger wrote in his book, The |
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Administrative Threat, quote: |
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These are core civil liberty issues. Binding agency rules deny |
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Americans their right under Article I to be subject to only |
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Federal legislation as enacted by an elected Congress, and such |
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rules thereby dilute the constitutional right to vote. |
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Today, Americans must routinely follow rules that come from |
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a source other than Congress. In recent years, Federal agencies |
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have more and more frequently imposed their will on the |
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American people. |
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To name just a few examples, OSHA's vaccine mandate, the |
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national eviction moratorium, the FTC's proposed noncompete |
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rule, and ATF's recent rule on stabilizing pistol braces, not |
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to mention Waters of the United States, which, incidentally, is |
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like a ping pong match, every time we get another |
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administration. |
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When we went from the Bush Administration to the Obama |
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Administration, we got a new Waters of the U.S. law, a new |
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interpretation of the Clean Water Act. Then when we went from |
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Obama to Trump, we got a new interpretation of the Clean Water |
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Act. Now, we've gone again to Biden's rules. |
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Each of these examples shows the Administrative State, not |
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Congress, attempting to or actually imposing binding rules on |
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the American people. Consider the ATF's pistol brace rule. It |
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requires gun owners to use stabilizing braces, not bump stocks, |
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Mr. Ranking Member, to register their braced pistols, modify |
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their weapons, or risk potential felony charges. |
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In the words of James Madison, the accumulation of all |
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powers. Legislative, Executive, and Judiciary, in the same |
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hands may justly be pronounced the very definition of tyranny. |
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That quotation by James Madison implicates an Administrative |
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State that makes law. |
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Today's hearing is about exploring the need for Congress to |
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reclaim its legislative authority and to discuss potential |
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legislative responses. Some legislation, like the REINS Act and |
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the Separation of Powers Restoration Act, are steps in the |
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right direction. Ultimately, Congress needs to reestablish |
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itself, not government agencies, as the main driver of Federal |
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policy. |
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I'll end with this final point: Although some conflate this |
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hearing's focus with deregulatory efforts, that need not be the |
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case. We're not arguing that there don't need to be any |
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regulations. Put simply, we can and should have a discussion |
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today about where law should come from. |
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As set forth by our Constitution, binding rules should come |
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from politically accountable elected representatives, not from |
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the Administrative State. Reasonable minds may differ about |
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certain policies, but we in this body should all be on the same |
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page about who should be making our laws, and that is Congress. |
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Before I recognize the Ranking Member, I want to thank him |
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for his service in Congress and tell him that we're going to |
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miss him. I hear that he's leaving this session early, and I |
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hope it's not because I am the Chair of this Committee. |
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Now, I recognize the gentleman from Rhode Island, Mr. |
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Cicilline, for his opening statement. |
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Mr. Cicilline. Thank you, Mr. Chair. I congratulate you on |
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Chairing this Committee and for our first hearing and can |
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assure you that your ascending to this Chairship did not |
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contribute to my decision to leave early. |
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Mr. Chair, it's just over a month now that the Southern |
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train derailed in East Palestine, Ohio, setting off a cascade |
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of events that have put countless lives at risk. Crews are |
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still cleaning up the highly toxic chemicals that were released |
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into the water, ground, and air. We will not know the full |
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effects of this environmental and safety disaster for decades. |
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This Subcommittee is charged with overseeing regulatory |
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reform, which is clearly much needed. Yet, today, instead of |
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using our first hearing to discuss what and how we must ensure |
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that the government is acting to not only help those in need |
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right now, but also to implement new safety and environmental |
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regulations that would prevent a disaster like this from ever |
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happening again, we're talking about, and I quote, ``reclaiming |
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Congress' legislative power.'' I, frankly, didn't know that |
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this is a power that had been lost. |
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At the center of today's hearing is, of course, the |
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Regulations from the Executive in Need of Scrutiny Act of 2023, |
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or the REINS Act, which would not, in fact, make rulemaking |
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more efficient or responsive to public concerns but instead, |
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would hinder the most basic functions of our government to keep |
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people safe. |
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By requiring that both the House and Senate pass and the |
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President sign a joint resolution of approval before any major |
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rule issued by an agency can take effect, we are effectively |
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negating the authority we have already given these agencies. |
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Let me make it plain. Congress already has the power to |
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oversee agency rulemaking, and agencies can only exercise |
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authority that we grant them. What the REINS Act would do, in |
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short, is prevent agencies from keeping dangerous products off |
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the shelves and toxic chemicals from polluting our land, air, |
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and water. |
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This is nothing more than a congressional power grab that |
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will lead to even more deregulation that puts people at risk |
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and will pave the way for reckless and powerful corporations to |
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put their profits ahead of the health and well-being of the |
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American people. |
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The REINS Act would prevent the Consumer Product Safety |
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Commission from updating safety standards for infant walkers, |
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like they did in late 2022, responding to alarming news that |
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these products had become a leading cause of death and injury |
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for small children. |
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The REINS Act would prevent rules from the Food and Drug |
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Administration, like their August 2020 rule to move to more |
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quickly identify and remove potentially contaminated food from |
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the market, resulting in fewer deaths and illnesses. |
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Finally, rules like the FDA's hearing aid regulation that |
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will lower cost for millions of Americans and allow people to |
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get hearing aids over-the-counter would be blocked under the |
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REINS Act. |
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Deregulation led to last month's derailment in East |
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Palestine and Norfolk Southern's recent derailment in |
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Springfield, Ohio. Further deregulation will lead to even more |
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tragedies in the future. |
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For years, at the behest of companies and special |
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interests, the Federal Railroad Administration has engaged in |
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deregulatory efforts despite workers' calls for necessary |
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stronger safety measures. We cannot place companies' greed over |
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public and worker safety and the cleanliness of our air, water, |
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and land. |
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Railroad workers have a saying, that their safety |
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regulations are written in blood, because it is only after |
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disasters, up to and including the loss of life, that pro- |
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safety changes are made. This is absolutely unacceptable. |
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Agencies are charged by the authority Congress grants to |
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enforce our laws. They do that, in part, by issuing those |
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rules. To that end, I hope my colleagues on both sides of the |
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aisle will join me in supporting legislation that would make |
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industry and our government more accountable by ensuring that |
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all agency-issued rules are based on rigorous studies and free |
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from bias, like the Stop Corporate Capture Act introduced by |
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Representative Jayapal. |
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At a time when residents across three States are grappling |
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with the highly toxic fallout of a culture of deregulation and |
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lax safety standards of the Trump Administration, we need to be |
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focusing on how to make rulemaking more effective and |
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efficient, not gunking up the wheels. |
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I thank you, Mr. Chair. With that, I yield back. |
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Mr. Massie. Thank you, Mr. Cicilline. |
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I now recognize the Ranking Member of the Full Committee |
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for his opening statement, if he has one. |
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Mr. Nadler. Thank you, Mr. Chair. |
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Mr. Chair, at a time when the Nation is reeling from |
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multiple train derailments in Ohio alone as well as |
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increasingly harsh storms due to climate change and an outbreak |
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of Avian Flu that has led to the deaths of tens of millions of |
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chickens in our food supply and experts tell us could |
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conceivably jump into other species, including humans, and |
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could conceivably cause another pandemic, I find it telling |
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that we are using the first meeting of this Subcommittee not to |
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discuss how we can better serve the needs of all Americans, |
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but, rather, how we can remove public health and safety |
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safeguards for the sake of higher company profits. |
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How do Republicans plan to advance their extreme agenda |
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protecting profits over people? By trotting out the same old |
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tired anti-health and safety legislation they have tried year |
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after year whenever they control the House. We are only three |
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months into the new majority, and I guess they are already out |
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of fresh ideas. |
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One of the bills we are examining today, the Regulations |
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from the Executive in Need of Scrutiny Act of 2023, or the |
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REINS Act, has been considered in every Congress in which |
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Republicans have held the majority since 2012. |
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The REINS Act would grind the gears of rulemaking to a halt |
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by requiring all major rules to be affirmatively approved by |
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both Chambers of Congress. A regulation would be blocked from |
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being implemented if even one House declines to pass an |
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approval resolution. The goal of this legislation, quite |
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simply, is to stop the regulatory process in its tracks, |
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regardless of its impact on public health and safety. |
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The bill purports to give Congress control of the |
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rulemaking process, but Congress already has this power and |
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exercises it in a number of ways. First, Congress can delegate |
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authority to agencies with specificity, thus limiting the scope |
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of the agency's authority. Second, it can impose restrictions |
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on rulemaking through appropriations. Third, it can influence |
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rulemaking through oversight activities. |
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If all these measures are insufficient, we also have the |
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blunt tool of the Congressional Review Act, which allows |
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Congress not only to overturn a rule, but also to bar the |
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agency from ever passing a substantially similar rule. |
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The REINS Act is not only redundant, but it also creates |
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insurmountable procedural hurdles that would stall the approval |
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of rules of major impact, rules that would be highly beneficial |
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to the public's health and safety. |
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It's important to remember why we have regulations in the |
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first place. Congress sets broad policies, but we delegate |
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authority to executive agencies because we do not have the |
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expertise to craft technical regulations ourselves. |
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Who here knows how many parts per billion of arsenic should |
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be allowed in our drinking water? Is 10 the proper amount? |
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Should it be five or 15? None of us here knows the answer. The |
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dedicated professionals at our Federal agencies, many of whom |
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have decades of experience and vast technical expertise, |
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undertake a careful process to protect our health and safety. |
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This process ensures--this process I should say includes |
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numerous procedural safeguards, including public notice and |
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comment. |
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Regulations ensure that our air is safe to breathe, our |
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water is safe to drink, our food is safe to eat, and the life- |
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saving medications we depend on are safe and effective. It |
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means that the cars we drive and the planes we fly have proper |
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safety mechanisms, and that banks and credit card companies |
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cannot take advantage of unsophisticated borrowers. |
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When we do not properly regulate, sometimes it means that |
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trains carrying dangerous chemicals can derail in our |
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communities, putting thousands of people at risk. |
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I feel much better about leaving regulatory decisions to |
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the careful study of agency experts rather than to Members of |
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Congress who want to substitute their judgment, subject to the |
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whims of politics. |
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Republicans also want to eliminate the Chevron doctrine, |
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which calls for courts to give deference to an agency's |
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reasonable interpretation of its statutory authority. So, if |
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it's not Members of Congress regulating our health and safety, |
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I guess it would be Federal judges. |
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Republicans have spent decades waging an all-out assault on |
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the regulatory process, trying to add hurdle after hurdle on |
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the ability of agencies to issue regulations that protect |
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public health and safety, regulations whose benefits |
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consistently outweigh their costs, often by many multiples. |
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If we want to improve the regulatory process, we would |
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consider legislation such as the Stop Corporate Capture Act, |
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which would bring more transparency and accountability to the |
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rulemaking process. Instead, the Subcommittee has chosen to |
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make their first order of business the dismantling and |
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destruction of the regulatory process, regardless of the impact |
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on public health and safety. This gives us a good idea of the |
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priorities we should expect to see out of this new extreme |
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majority. I hope they will reconsider this dangerous agenda. |
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I yield back the balance of my time. |
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Mr. Massie. Thank you, Ranking Member Nadler. |
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Without objection, all other opening statements will be |
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included in the record. We will now introduce today's |
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witnesses. |
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Allyson Ho is a partner and a Co-chair of the Appellate and |
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Constitutional Law Practice Group at Gibson, Dunn & Crutcher. |
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She has argued cases before the Supreme Court, States' Supreme |
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Courts, and various State and Federal Appellate Courts. She |
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previously served as Special Assistant to President George W. |
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Bush, counselor to Attorney General John Ashcroft, and she |
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clerked for justice Sandra Day O'Connor. |
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Jonathan Wolfson is the Chief Legal Officer and Policy |
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Director at the Cicero Institute. His research at Cicero |
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focuses on healthcare, regulatory reform, and employment |
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policies. He previously led the Policy Office at the U.S. |
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Department of Labor. |
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Ryan Cleckner is the Co-founder of Gun University LLC, and |
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a former Army Ranger. He is an attorney and previously served |
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as Vice President of Compliance at the Remington Outdoor |
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Company and is a Manager of Government Relations at the |
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National Shooting Sports Foundation. |
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Emily Hammond is the Vice Provost for Faculty Affairs and |
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the Glen Earl Weston Research Professor at the George |
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Washington University Law School. Professor Hammond's research |
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focuses on energy law, environmental law, and administrative |
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law. |
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We welcome our witnesses and thank them for appearing |
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today. We will begin by swearing you in. Would you please rise |
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and raise your right hand. |
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Do you swear or affirm, under penalty of perjury, that the |
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testimony you are about to give is true and correct, to the |
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best of your knowledge, information, and belief, so help you |
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God? |
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The record will reflect that the witnesses have answered in |
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the affirmative. Thank you. Please be seated. |
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Please know that your written testimony will be entered |
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into the record in its entirety. Accordingly, we ask that you |
|
summarize your testimony in fivw minutes. |
|
The microphone in front of you has a clock and a series of |
|
lights. When the light turns yellow, try to begin to conclude |
|
your remarks. When the light turns red, your time is expired. |
|
Ms. Ho, you have the distinguished honor of going first. |
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STATEMENT OF ALLYSON N. HO |
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|
|
Ms. Ho. Thank you. Chair Massie, Ranking Member Cicilline, |
|
thank you for inviting me here today to testify about reining |
|
in the Administrative State. |
|
I am heartened to see this issue being debated in Congress. |
|
Our system of checks and balances can only work when Congress |
|
is active in its engagement with the other branches, including |
|
the Executive Branch. That's particularly important when we're |
|
talking about the modern Administrative State, where the |
|
Executive Branch regularly runs the risk of encroaching on the |
|
authority of the Legislative Branch. |
|
So, regardless of what actions this Congress chooses to |
|
take in response to the rise of the Administrative State, I |
|
think this hearing alone serves an important function in |
|
Congress fulfilling its responsibilities under the |
|
Constitution. |
|
In my remarks today, I want to discuss one specific issue |
|
that has coincided with, and likely accelerated the rise of the |
|
Administrative State: Doctrines that force courts to defer to |
|
administrative agencies. |
|
The most well-known of these doctrines is Chevron |
|
deference, which originates from a 1984 Supreme Court decision, |
|
Chevron U.S.A. v. Natural Resources Defense Council. That case |
|
holds that when a court is reviewing an agency's interpretation |
|
of a statute that it administers, the court should defer to the |
|
agency's interpretation if the statute is ambiguous and the |
|
agency's interpretation is reasonable. |
|
There are other types of judicial deference as well. For |
|
example, Auer deference holds that courts should give |
|
controlling weight to an agency's interpretation of its own |
|
regulation unless the interpretation is plainly erroneous or |
|
inconsistent with the regulation. |
|
There are several significant flaws with judicial deference |
|
to agency interpretations, and I'd like to highlight just a few |
|
of them. |
|
First, it flies in the face of the bedrock principle |
|
underlying the rule of law. A law means what it says. A statute |
|
or a regulation has a correct interpretation, and it is that |
|
correct interpretation which should govern our actions. |
|
Deference to an agency's interpretation turns that |
|
fundamental principle on its head. Courts no longer care |
|
whether the agency has the correct interpretation, just whether |
|
the interpretation is reasonable. Suddenly, this reasonable |
|
interpretation, which may or may not be correct, becomes the |
|
law. |
|
To enforce an agency's interpretation of the law, even |
|
though it is not the best interpretation, is inconsistent with |
|
the Judicial Branch's constitutional duty to say what the law |
|
is, contrary to Congress' directive in the Administrative |
|
Procedure Act, and harmful to confidence in our legal system. |
|
Second, deference doctrines have become a tool for agencies |
|
to expand their power and influence, often at the expense of |
|
individual rights and freedoms. One of the biggest problems |
|
with deference is that it allows agencies to effectively write |
|
their own laws. |
|
Because courts are required to defer to an agency's |
|
interpretation of a statute if its reasonable, agencies have an |
|
incredible amount of discretion to interpret laws in a way that |
|
gives them more power and authority. This can result in |
|
regulations that are far more burdensome and restrictive than |
|
anything Congress intended when it passed the underlying law. |
|
Third, these deference doctrines undermine very |
|
fundamentally the separation of powers that is so critical to |
|
our system of government. When agencies are given broad |
|
authority to essentially write the laws, write regulations that |
|
have the force of law, they are stepping into the role that |
|
Congress has, not the Executive. |
|
Moreover, even though agencies are technically within the |
|
Executive Branch, the rise of the Civil Service and the vast |
|
expansion of the Federal bureaucracy has effectively made them |
|
a fourth branch of government, with the power to make laws and |
|
enforce them with little effective political oversight. |
|
Elected officials are supposed to be held accountable to |
|
the people who elected them, but the Administrative State is |
|
often staffed by unelected bureaucrats who are difficult to |
|
hold accountable, even by the Executive. This can make it hard |
|
for the public to have a say in the laws and the regulations |
|
that affect their lives. The more you believe in democracy, the |
|
more you should be concerned about the rise of the |
|
Administrative State. |
|
So, what can be done? There are many solutions, but part of |
|
the growth of the Administrative State comes from congressional |
|
neglect. When Congress passes laws that are open-ended, when |
|
Congress doesn't react to civil agencies that are acting |
|
outside the bounds of their authority, all that empowers |
|
agencies to continue expanding their influence. |
|
So, to end where I began, I'm grateful for the Committee's |
|
invitation to testify today. I hope I can answer any questions |
|
you have and help in any way I can in your efforts to rein in |
|
the Administrative State. Thank you. |
|
[The prepared statement of Ms. Ho follows:] |
|
|
|
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT] |
|
|
|
Mr. Massie. Thank you, Ms. Ho. |
|
Mr. Wolfson, you may begin. |
|
|
|
STATEMENT OF JONATHAN WOLFSON |
|
|
|
Mr. Wolfson. Chair Massie, Ranking Member Cicilline, |
|
Members of the Subcommittee, good morning and thank you for |
|
having me today. It's an honor to testify on Congress' role in |
|
creating law and oversight when Executive Branch agencies start |
|
to write laws instead of simply working to enforce the law that |
|
is already written. |
|
My name is Jonathan Wolfson. I'm the Chief Legal Officer |
|
and Policy Director at the Cicero Institute, which is a |
|
nonprofit think tank focused on identifying, developing, and |
|
advancing entrepreneurial solutions to society's toughest |
|
public policy problems. |
|
Previously, I had the honor of serving as the head of the |
|
Office of the Assistant Secretary for Policy at the U.S. |
|
Department of Labor, as well as the Regulatory Reform Officer |
|
at that Department. |
|
Today's hearing centers on ways that Congress can bring |
|
additional accountability to Federal rulemaking, whether by |
|
limiting the power of the Executive Branch to act absent |
|
congressional authorization or requiring legislative approval |
|
of regulations. |
|
Today, I will focus on four key points: First, the |
|
legislature should create laws, and the Executive Branch should |
|
encourage compliance and enforce those laws; second, the |
|
Legislative Branch is more accountable than the Administrative |
|
State; third, agencies have expertise in regulatory process, |
|
not necessarily on making legislative decisions; and fourth, |
|
the REINS Act appears to be a valuable step toward restoring |
|
Congress' and agencies' appropriate roles. |
|
Before we dive in further, I'd like to clarify that while |
|
collo- |
|
quially regulation often means government restrictions, |
|
regulations are actually agency rules that purport to |
|
effectuate statutes. This is important, because too often |
|
discussions of deregulation devolve into caricatures, where |
|
proponents of deregulation are asked to defend whether they |
|
care about clean air, safe food, or fair banking practices. |
|
Congress can pass laws to protect air, food, or finances |
|
through statute without subsequent agency-driven lawmaking. |
|
So, let's talk about why agencies are not supposed to make |
|
new laws. Basic Schoolhouse Rock civics lessons teach us that |
|
Congress makes laws, and the President executes and enforces |
|
those laws, but Members of this Subcommittee know that this |
|
isn't really the reality. Unfortunately, the Executive Branch |
|
and independent Federal agencies regularly make new laws and |
|
fill intentional or unintentional gaps left by Congress. At |
|
times, regulatory agencies even act to make new laws without |
|
any congressional authority at all. |
|
Now, Congress does bear some responsibility for this |
|
phenomenon. New laws are often vague. Sometimes this is out of |
|
neglect, sometimes it's out of convenience for the legislature, |
|
and sometimes it's out of apparent necessity. Often, this |
|
leaves vague and big questions for the regulated community. |
|
Regardless of the cause, I would argue that this is not the |
|
ideal that we should be aiming toward. As Ms. Ho just |
|
mentioned, this is not the ideal that the Constitution sets up |
|
for us. |
|
Second, Congress is accountable and agencies are not. |
|
Another key reason that agencies ought not legislate is |
|
that voters may hold legislators accountable for their action. |
|
Accountability is especially important where there are |
|
tradeoffs between different constituents and competing |
|
interests. |
|
When a secretary supports a particular policy, the agency |
|
staff do as well. That policy is likely to prevail. Traditional |
|
deference principles mean reasonable regulations, stand even in |
|
the face of strong objection. Given the substantial burden and |
|
the limited ability of Congress to hold agencies accountable, |
|
Congress ought to write the laws. |
|
Third, unique agency expertise often lies in regulatory |
|
process. Some proponents of the Administrative State contend |
|
that Congress lacks expertise on a range of issues that face |
|
our Nation and agencies have the depth of knowledge and |
|
experience necessary to write the laws. They argue that |
|
Congress could codify public sentiment and leave the regulatory |
|
details to the agency experts. |
|
While regulators do bring specialized knowledge and years |
|
of experience in government to the table, it does not follow |
|
that this experience makes them better at making the rules than |
|
a Member of Congress would be if given the opportunity. |
|
Even assuming that the typical Federal official writing |
|
regulations is a neutral, unbiased subject matter expert who |
|
leaves his or her own preferences aside, do they possess the |
|
right kind of expertise? Unfortunately, many agency staff have |
|
narrow expertise, often in creating and enforcing regulations |
|
rather than on important tradeoffs that occur in the real |
|
world. |
|
Even when they have field-level expertise, their relative |
|
comparative advantage compared to academic or industry is |
|
knowledge and experience in how the government works, how to |
|
get something published in the Federal Register. So, they |
|
revert to regulation, even if regulation is not the best path |
|
forward, because regulators regulate. This knowledge of the |
|
rules also helps them impose new regulations via guidance, |
|
which doesn't have to go through all the Administrative |
|
Procedure Act hurdles. To limit this overreach, I was honored |
|
to sign the Department of Labor's Regulatory Openness through |
|
Good Guidance rulemaking. |
|
Fourth, Congress can use the REINS Act to rein in |
|
regulatory excess. The REINS Act is a good proposal to restrict |
|
legislative activity by agencies and restore the proper |
|
relationship between the Legislative and Executive Branches. |
|
The REINS Act is the next in a series of laws to limit |
|
regulatory autonomy and require a particular regulatory process |
|
to ensure the constitutionally required balance of power. |
|
Thank you again for the opportunity to testify and share my |
|
perspective. I look forward to answering any questions you all |
|
may have. |
|
[The prepared statement of Mr. Wolfson follows:] |
|
|
|
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT] |
|
|
|
Mr. Massie. Thank you, Mr. Wolfson. |
|
Mr. Cleckner, you may go now. |
|
|
|
STATEMENT OF RYAN M. CLECKNER |
|
|
|
Mr. Cleckner. Good morning, Chair Massie, Ranking Member |
|
Cicilline, and Members of the Subcommittee. |
|
I am Ryan Cleckner. I am a former special operations |
|
sniper, and I'm a firearms attorney that specializes in Federal |
|
firearms law and ATF compliance, among many other projects in |
|
the firearms industry. |
|
I am concerned with Federal administrative agency overreach |
|
with respect to rulemaking. I believe that power in the |
|
government should be limited, and it should only be in the |
|
hands of those accountable to the people, and decisions and |
|
debates on matters in legislation should be open and |
|
transparent to the public. |
|
Allowing nonelected and nonrepresentative government |
|
bureaucrats in Federal agencies to exercise power that should |
|
be limited to Congress and to do so behind closed doors without |
|
accountability nor transparency, is destructive to America, its |
|
citizens, and Congress. I implore you to not let these Federal |
|
agencies under the Executive Branch continue to steal power |
|
that has been entrusted to you by us. |
|
A recent example of agency overreach where laws are being |
|
changed by unelected bureaucrats with decisions being made |
|
behind these closed doors is ATF's latest rule 2021R-O8F, its |
|
Factoring Criteria for Firearms with attached Stabilizing |
|
Braces. It was published in the Federal Register on January |
|
31st of this year. |
|
This latest rule that the ATF has made, it redefines laws |
|
that have been passed by Congress, and it criminalizes the |
|
possession of firearms with certain accessories that the ATF |
|
itself had previously specifically approved. This rule by fiat |
|
effectively gives the ATF the power to determine who is a felon |
|
by the stroke of a bureaucrat's pen. |
|
This is not an appropriate enforcement of law. It is |
|
tyranny. It's unfair for the ATF to expect the average citizen |
|
to not only be aware of these changes, especially since the ATF |
|
itself has waffled back and forth over the years on pistol |
|
braces alone, but expects citizens to make these determinations |
|
about these objects themselves without clear direction about |
|
what the ATF considers to be legal. However, even with clear |
|
instructions, these changes to legal definitions within law are |
|
not appropriate for the ATF to make. |
|
If Congress doesn't rein in Federal agencies and these |
|
agencies are permitted to continue to change laws and provide |
|
this conflicting guidance to citizens, I believe that chaos |
|
ensues. |
|
Thank you for the opportunity to speak here today, and I'm |
|
willing to answer any questions you may have. |
|
[The prepared statement of Mr. Cleckner follows:] |
|
|
|
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT] |
|
|
|
Mr. Massie. Thank you, Mr. Cleckner. |
|
Mr. Massie. Professor Hammond, you may begin. |
|
|
|
STATEMENT OF EMILY HAMMOND |
|
|
|
Ms. Hammond. Thank you, Chair Massie, Ranking Member |
|
Cicilline, and distinguished Members of the Subcommittee, for |
|
the opportunity to testify today. |
|
I'm a professor of law at the George Washington University |
|
Law School, where I do, indeed, specialize in administrative |
|
energy and environmental law. I have previously served in |
|
Federal agencies, both as legal counsel and in my previous |
|
career as an engineer, where I coauthored several scientific |
|
publications. |
|
I am deeply concerned about the REINS Act. It's |
|
impractical. It's harmful to the people of this country. It |
|
eviscerates two cores of government legitimacy, participation |
|
and reasonableness, and it is likely unconstitutional. |
|
Congress has long recognized that among the branches of |
|
government, agencies within the Executive Branch are best |
|
positioned to leverage specialized expertise to tackle the most |
|
challenging issues that we face as a society. |
|
Whether protecting the functioning of our markets, keeping |
|
workers safe, or protecting the air we breathe, these |
|
challenges are incredibly complex and difficult to address |
|
solely in the legislative arena. So, in its wisdom, Congress |
|
establishes the statutory basis for action, but tasks the |
|
Executive Branch with the duty to bring that legislative vision |
|
to life. |
|
Congress has put a number of guardrails in place. For |
|
rulemaking, these include the participation, deliberation, and |
|
reason-giving requirements that stem from the Administrative |
|
Procedure Act. |
|
Notably, these features of rulemaking are fundamental to |
|
the democratic decisionmaking. They guard against |
|
arbitrariness, and they promote oversight through transparency. |
|
In particular, that reason-giving requirement ensures that |
|
Congress and the public can both understand the basis for the |
|
decision and see whether the agency has maintained fidelity to |
|
statute. |
|
Now, there is always room for improvement in agency |
|
decisionmaking, and Representative Jayapal's Stop Corporate |
|
Capture Act, for example, offers several upgrades. These are |
|
aimed at empowering the public, ending corporate manipulation, |
|
attending to social equity, and minimizing the dysfunction that |
|
OIRA review can engender. |
|
By contrast, the REINS Act would replace scientific |
|
informed participatory government decisionmaking with an |
|
utterly impractical system. Congress is neither designed nor |
|
staffed to deeply evaluate every single agency's major rules, |
|
especially within such short timeframes. |
|
The suggestion that the REINS Act is meant to promote |
|
legislative transparency is baffling. It permits only one or |
|
two hours of debate on the joint resolutions and otherwise sets |
|
such tight timeframes that it is difficult to understand how |
|
legislators could give careful review to each regulation. |
|
This scenario promotes opacity and heightens the risk that |
|
votes will be based on naked political preferences that would |
|
not be permissible in the agencies themselves. |
|
Right now, America needs more protections, not fewer. We |
|
know from the East Palestine disaster what an antiregulatory |
|
culture can do, and we have seen these lessons across our |
|
history. We know as well that weak regulatory protections mean |
|
fewer people make it home to their families after work. More |
|
people die too soon, and we hasten and intensify climate |
|
disasters. This is not idle speculation. It's backed up by the |
|
cost-benefit analyses that the REINS Act asks for, but that are |
|
already available for review by Congress and the public. |
|
Finally, the REINS Act is concerning because it blurs |
|
separation of powers beyond what the Constitution can bear. On |
|
one hand, if the joint resolution process is a legislative act, |
|
it must meet constitutional requirements for doing so. On the |
|
alternative, it would violate separation of powers for Congress |
|
to exercise the executive function of finalizing regulations. |
|
To conclude, the unconstitutional REINS Act would fail to |
|
achieve what it promises and would, instead, harm our economy, |
|
our safety, our health, and our environment. |
|
Thank you again for the opportunity to testify today, and I |
|
look forward to your questions. |
|
[The prepared statement of Ms. Hammond follows:] |
|
|
|
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT] |
|
|
|
Mr. Massie. Thank you, Professor Hammond. |
|
We'll now proceed under the five-minute rule with |
|
questions. I recognize the gentleman from California, the Chair |
|
of the IP Subcommittee, Mr. Issa, for five minutes. |
|
Mr. Issa. Thank you, Mr. Chair. |
|
It's always interesting to be told something is |
|
unconstitutional in this body by a professor who just doesn't |
|
like how Congress might rule. |
|
So, I'm going to start with Mr. Cleckner, since you fought |
|
to defend our country and her right to be wrong. |
|
Let me ask you a question: Do you think for a moment that a |
|
body that regulates one way and then regulates another way is |
|
consistently meeting the congressional mandate that they |
|
interpret but not make laws? |
|
Mr. Cleckner. Of course, it would depend on the situation, |
|
but the way it's happening now, no. |
|
Mr. Issa. Right. In your case, they fully executed, knowing |
|
what the devices did, regulations and categories. Now, they're |
|
changing them, based on a political, Oh, these are too |
|
dangerous, these are this, these are that. Whatever their |
|
reason is, they're making a political decision to make a change |
|
that is not supported by a change in the hardware or the change |
|
in the statute. Is that correct? |
|
Mr. Cleckner. I believe so. I do not think this is a |
|
regulation that is promulgating current law. They are |
|
specifically in the ruling calling out what the current law is |
|
and then saying, we are redefining that to be this instead. |
|
They're actually changing the language of the law in the |
|
definitions. |
|
Mr. Issa. Mr. Wolfson, you looked a little uneasy as the |
|
last witness spoke. The unconstitutional claim that we just |
|
heard, is it correct--and I'll ask both the other witnesses. Is |
|
it correct that we could strip every single statute by a rule, |
|
by simply the House and the Senate voting to do so, and |
|
eliminate all statutes since the beginning of time and start |
|
over if we chose to, and that would be constitutional? |
|
Mr. Wolfson. My understanding of the Constitution is that |
|
yes, if Congress passed a law to strip all current statutes, |
|
that they would be allowed to do that. |
|
Mr. Issa. So, unless it is within the 27 amendments and the |
|
original Constitution, which we cannot strip by congressional |
|
fiat, everything else, by a two-thirds majority over the |
|
objection of a President, can be eliminated to zero. Is that |
|
correct? |
|
Mr. Wolfson. That's my understanding. |
|
Mr. Issa. OK. So, any administrate--so any failure in the |
|
REINS Act to meet some sort of a constitutional test as written |
|
would simply be that we probably didn't write the REINS Act |
|
quite specific enough to assert the powers that Congress |
|
clearly has. Is that correct? |
|
Mr. Wolfson. I would assume that would be the argument. It |
|
would be that the language of the REINS Act, as currently |
|
drafted, may have some sort of constitutional defect. |
|
The concept of the legislature being able to say, we're |
|
going to create a rule that says all the regulations have to |
|
come back to Congress, considering Congress theoretically gave |
|
the agency the authorization to write them, that would be-- |
|
Mr. Issa. Right. So, now in the case of the Federal Trade |
|
Commission, which you opined on, clearly they are now asserting |
|
areas that they never asserted for their first decades of |
|
existence. Is that correct? |
|
Mr. Wolfson. That is correct. There are certain regulations |
|
that are being proposed by the Federal Trade Commission, |
|
specifically the noncompete clause regulation, which it does |
|
not appear that the FTC was ever given authority to do that |
|
sort of regulation, regardless of whether that is good or bad |
|
policy. |
|
Mr. Issa. Right. So, Ms. Ho, I don't want to leave you out |
|
of this. The Chevron deference that ultimately creates the |
|
ability for if you challenge in court the assumption that |
|
somehow the Congress has simply had ambiguity, do you see--in |
|
the ATF, or in the FTC, do you see ambiguity in the original |
|
law that would cause decades after one precedent was set to be |
|
changed simply by a change in who happens to occupy the |
|
Chairship and, of course, the White House? |
|
Ms. Ho. Thank you for that question. I wouldn't presume to |
|
comment on the details of any specific legislation, but I would |
|
go back-- |
|
Mr. Issa. Well, Chevron isn't legislation. Chevron is a |
|
Supreme Court decision that essentially says the court is going |
|
to assume that these agencies act in good faith and that it's |
|
simply ambiguity in the law. |
|
Do you believe there is ambiguity in either of these two |
|
decisions, or are you unwilling to comment on them? |
|
Ms. Ho. I'm not in a position to comment on either of them, |
|
but I do underscore the significant flaw in the Chevron |
|
approach, which essentially takes away this body's ability to |
|
make law, and also the judiciary's constitutional |
|
responsibility to say what that law is. |
|
Mr. Issa. So, in my remaining few seconds, for all the |
|
witnesses, including Ms. Hammond, is it fair to say that |
|
instead of working on the REINS Act, perhaps we should be |
|
working on explicitly eliminating Chevron and putting the |
|
deference back to you must return to Congress if there's |
|
ambiguity? Any comments? |
|
Mr. Massie. The gentleman's time is expired, but I'll allow |
|
one witness to respond to that. Mr. Wolfson. |
|
Mr. Wolfson. I guess I'll take it. I think that eliminating |
|
Chevron deference or curtailing it significantly would be an |
|
action that Congress could take, which would have an even |
|
bigger effect than something like the REINS Act. Because the |
|
REINS Act, it was only prospective, whereas the--eliminating |
|
Chevron deference affects all regulation that are currently on |
|
the books. |
|
Mr. Issa. Thank you, Mr. Chair. I yield back. |
|
Mr. Massie. The gentleman yields back. |
|
The Chair now recognizes the gentleman from Rhode Island, |
|
Ranking Member Mr. Cicilline, for five minutes. |
|
Mr. Cicilline. Thank you, Mr. Chair. |
|
I want to quickly dispense with one thing, Mr. Wolfson. You |
|
said in your testimony here just now, and in your written |
|
testimony, that agency expertise is really expertise in the |
|
regulatory process, not on the complicated tradeoffs between |
|
competing priorities. |
|
You're not suggesting, I hope, that the thousands of |
|
scientists who work at the FDA or the thousands of engineers |
|
and products experts that work at the Consumer Product Safety |
|
Division are only experts in the regulatory process and not the |
|
underlying science or engineering that they were trained to do, |
|
are you? |
|
Mr. Wolfson. Thank you for the question. No, I'm not |
|
suggesting that they-- |
|
Mr. Cicilline. OK. Thank you. So, reclaiming my--so my |
|
point is regulators have expertise, not just in the |
|
understanding of the regulatory process, but they're hired in |
|
these agencies of the Federal Government because they bring |
|
with them life-saving training and science and expertise that |
|
we don't have as Members of Congress. |
|
So, the notion of like all they know about is the |
|
regulatory process, which is what you say here, that's |
|
exaggerated. It's actually the underlying substance of their |
|
expertise that is saving the lives of the American people. So, |
|
I just wanted to make sure that you weren't making a claim to |
|
the contrary. |
|
Professor Hammond, what I want to ask you about is, would |
|
the response to environmental calamities, like the one that was |
|
caused by Norfolk Southern train derailment East Palestine, be |
|
better or worse off if the EPA were subjected to the REINS Act |
|
that is being offered by my colleagues on the other side of the |
|
aisle? |
|
Ms. Hammond. Thank you for that question. Very much worse |
|
off. Agencies need those regulations to then carry out their |
|
work, whether that's investigatory work or enforcement work. |
|
Plus, one of the things I want to emphasize is that |
|
regulations protect people in the first place. They help keep |
|
disasters like East Palestine from happening. So, we can back |
|
it up a minute and just think about let's prevent harms instead |
|
of waiting for disasters. |
|
Mr. Cicilline. Would requiring Congress rather than |
|
agencies that are equipped with both expertise and |
|
professionals who do this work, a body of Congress, those of us |
|
that are elected members, who are not scientists or experts on |
|
public health or environmental protection, worker protection, |
|
safety provisions, would it endanger the lives of the American |
|
people if we were to second-guess agency decisionmaking that |
|
is, in fact, intended to keep Americans safe? |
|
How much longer would it take for these regulations which, |
|
in fact, are saving people's lives to go into effect, if they |
|
would ever go into effect, if the REINS Act became law? |
|
Ms. Hammond. I think the concern is that they would never |
|
go into effect, and we'd be left with huge gaps in protection |
|
across every field of our economy. So, although we might |
|
envision a system where Congress tried to legislate every |
|
regulatory detail, as you mentioned, there's a matter of |
|
comparative institutional expertise here. |
|
Agencies really have the expertise to bring that kind of |
|
scientific informed judgment to those regulatory protections. |
|
Mr. Cicilline. Let me just end with a very specific |
|
example. During the Trump Administration, the Federal Railroad |
|
Administration withdrew an Obama-era Notice of Proposed |
|
Rulemaking mandating two qualified crew members on most freight |
|
locomotives. Workers have strongly supported a crew size |
|
mandate like this one, as they believe it's integral to rail |
|
safety. Although the Biden Administration has reproposed this |
|
rule, railroads have staunchly opposed this safeguard. |
|
Under the REINS Act, railroads would have even more leeway |
|
to influence rules like this one, through lobbying Members to |
|
use an unconstitutional one-Chamber veto of such a rule. |
|
So, my question is, would the REINS Act provide more |
|
protection for workers and people who use the rails and |
|
sometimes less protection for hazardous materials that they |
|
transport or less? In other words, would worker safety be |
|
impacted in any positive way or a negative way if the REINS Act |
|
were in place? |
|
Ms. Hammond. Certainly, in a negative way. We should be |
|
listening to those workers. |
|
Mr. Cicilline. With respect to the notion that the |
|
regulatory process is difficult to follow and doesn't have the |
|
voices of the American people embedded in that process, would |
|
you respond to that argument, Professor? |
|
Ms. Hammond. Sure. Under the Administrative Procedure Act, |
|
all agencies are required to have a period of notice and |
|
comment. Anyone, any person can offer comments. Although there |
|
is room to bring even more voices to that process, agencies are |
|
required to respond to the significant comments that are raised |
|
and incorporate that understanding into their final rules. |
|
So, there's very much a sense of participation and |
|
democratic accountability embedded in the process. |
|
Mr. Cicilline. Thank you, Professor. |
|
I yield back, Mr. Chair. |
|
Mr. Massie. The Ranking Member yields back. |
|
Then I'll recognize the gentleman from Colorado, Mr. Buck, |
|
for five minutes. |
|
Mr. Buck. I thank the Chair. |
|
Ms. Ho, I want to direct these questions to you, and I |
|
guess my comments also. We have a situation in Congress where |
|
we have a large number of programs that are unauthorized. The |
|
programs were originally set up with a sunset provision, |
|
typically five years. |
|
The five years has expired, and I want to just--there are |
|
actually 1,200 programs that have now expired, and Congress |
|
refuses to do its job and review those programs. |
|
When Congress pretended that it cared about spending, it |
|
set up a two-step process. The first step was to authorize a |
|
program, and the second step was to appropriate to the |
|
authorized program. |
|
The rules of Congress for the last 50 years have included a |
|
provision that requires Congress not to appropriate to an |
|
unauthorized program. What's so interesting about that is |
|
Congress waives its own rules for each appropriations bill so |
|
that it can bypass the responsibility of actually appropriating |
|
only to authorized programs. |
|
The purpose of this, obviously, is that Congress, as |
|
responsible to the American people, should be reviewing these |
|
programs, determining if these programs need to be expanded, |
|
contracted, amended in some way so that they are more |
|
responsible. |
|
My question has to do with the interaction or interplay of |
|
the Chevron doctrine with the concept of Congress' |
|
responsibility in overseeing these particular programs. |
|
Ms. Ho. Yes, thank you for that thoughtful question. |
|
I agree that the scenario that you lay out highlights I |
|
think one of the critical aspects. Why I think it's so |
|
important that we're here today having this discussion is as |
|
important and salutary for Congress to exert its lawful |
|
authority under the system that our Founders designed, and that |
|
when Congress doesn't, we shouldn't be surprised to see other |
|
branches sort of exploiting that lack of action. |
|
So, I think your question really highlights the important |
|
role that Congress has to play in ensuring that our system of |
|
separation of powers that the Founders bequeathed to us remains |
|
vibrant and effective in safeguarding individual rights and |
|
liberties. |
|
Thank you for that question. |
|
Mr. Buck. I have to say I think you are far too kind. You |
|
understand that you are testifying in Congress, and you are a |
|
gentlelady from the great State of Texas. I respect all those |
|
things, but the reality is Congress has failed to do its job. |
|
Part of the problem and the reason for these administrative |
|
agencies overstepping their bounds and the one that gets under |
|
my skin--and I'm sure my good friend from Wyoming, Ms. Hageman, |
|
would agree with me on this--is the WOTUS rule. It comes up |
|
every time the Democrats get into the White House, the Waters |
|
of the U.S. |
|
Everytime my district actually touches, borders the State |
|
of Wyoming, and we share water. If the Democrats get to |
|
regulate ditch water in my district and every puddle in my |
|
district, we're going to have problems. So, the idea that these |
|
agencies can expand their authority is, really, they are |
|
filling a vacuum that Congress has created. |
|
My point--and I'm hoping to get your comment on this. My |
|
point is that without Congress' neglect, without Congress' |
|
failure to act, we wouldn't be dealing with the REINS Act right |
|
now, because we would actually be doing our job every day of |
|
overseeing the functions in the Executive Branch. |
|
Ms. Ho. Yes, Your Honor. I think the Founders well |
|
understood and anticipated the very dysfunction you describe, |
|
which is it creates real problems in our system of separation |
|
of powers when one branch does not exert its lawful authority, |
|
does not do its job. |
|
So, for this branch, as you highlight, this branch's role |
|
in our constitutional form of government is to make law. So, |
|
when Congress does not--when Congress passes, say, vague laws |
|
or when Congress does not act at all, it upsets the system of |
|
checks and balances. |
|
Mr. Buck. I yield back. Thank you. |
|
Mr. Massie. The gentleman yields back. |
|
The Chair now recognizes the Ranking Member of the Full |
|
Committee, Mr. Nadler, for five minutes. |
|
Mr. Nadler. Thank you, Mr. Chair. |
|
Mr. Buck's discussion of the fact that Congress can't find |
|
the time to reauthorize all the programs leads me to wonder how |
|
Congress would ever find the time to go over thousands and |
|
thousands of detailed regulations. |
|
My understanding is that under the REINS Act, many |
|
industries would be expected to self-govern. |
|
Professor Hammond, do you think the railroad industry will |
|
do this effectively, putting health and safety above profits? |
|
Ms. Hammond. No. There's a long and well-documented history |
|
of a concerted effort by the entire industry to resist any |
|
safety requirements. The REINS Act only makes it more difficult |
|
to actually put those protections into place. |
|
Mr. Nadler. In addition to the dangerous REINS Act, which |
|
we've discussed, Members of the Subcommittee also support the |
|
Separation of Powers Restoration Act, which would eliminate |
|
Chevron deference, that is, deferring to expert agencies on |
|
their interpretation of statute so long as it's not |
|
unreasonable. |
|
Professor Hammond, do you think public health and safety |
|
would be improved or hindered if agencies lacked this deference |
|
and had constantly to go to court over their authorizing |
|
statute? |
|
Ms. Hammond. It would be much more difficult to protect the |
|
public. |
|
I would like to just point out that I'm hearing the words |
|
``Chevron deference,'' but the Chevron doctrine itself has a |
|
key component that this discussion so far has overlooked, which |
|
is the first step. If the statute is clear, the analysis stops. |
|
There is no deference to the agency, because the clear language |
|
of the statute controls. |
|
It's only if there's ambiguity that as a matter of |
|
comparative institutional competence as between the courts and |
|
the agencies that a court should not be substituting its own |
|
policy preference for the way the agency exerted its expertise |
|
and did so with political accountability. |
|
So, the Chevron doctrine itself has quite a bit more nuance |
|
and does recognize the expertise of agencies, but certainly has |
|
guardrails in place for congressional oversight. |
|
Mr. Nadler. Thank you. I assume that if an agency abused |
|
its authority under the Chevron doctrine, that's subject to |
|
challenge in court? |
|
Ms. Hammond. Certainly. |
|
Mr. Nadler. Thank you. |
|
Supporters of the REINS Act argue that this bill would help |
|
tame inflation, despite the fact that the bill could, in fact, |
|
result in blocking any major rule contemplated by our expert |
|
agencies, even if they're designed to address inflation. |
|
Professor Hammond, how do you think the REINS Act, if |
|
passed, would affect the economy and inflation? |
|
Ms. Hammond. Well, we know--are we OK there? All right. |
|
We know that regulatory protections actually help the |
|
economy. I collected several examples in my written testimony, |
|
but just to give you one, EPA's proposed soot rule that was |
|
proposed earlier this year would save 270,000 lost workdays. It |
|
would also provide $43 billion in net health benefits. That's |
|
good for the economy. |
|
If the REINS Act would cutoff all these protections at the |
|
knees, we'd see a lot of detrimental economic impact. |
|
Mr. Nadler. Thank you. The National Transportation Safety |
|
Board recently launched an investigation into Norfolk Southern |
|
following the derailment in East Palestine. The investigation |
|
is rare, because it will consider Norfolk Southern as a whole |
|
rather than the East Palestine incident in particular. |
|
Professor Hammond, do you think Norfolk Southern is the |
|
only railroad company that needs more regulatory oversight, and |
|
do you think that regulatory oversight would be improved under |
|
the REINS Act? |
|
Ms. Hammond. No. Indeed, as I said previously, this is an |
|
entire industrywide effort. I should mention that self- |
|
regulation tends to be a euphemism for putting profits over |
|
health, safety, and the environment. We've seen that not just |
|
in the railroad industry, but, for example, in the extractive |
|
energy industries. |
|
The REINS Act, once again, would only undercut the |
|
protections that we need. |
|
Mr. Nadler. Do you think this applies basically to every |
|
area in the economy? |
|
Ms. Hammond. Everyone that I've seen, including even the |
|
markets. |
|
Mr. Nadler. Thank you very much. |
|
Mr. Chair, I yield back. |
|
Mr. Massie. The gentleman yields back. |
|
We're going to--I'm going to allow one more of our Members |
|
to take five minutes, and then we will vote. So, if people want |
|
to go ahead and vote right now, we're going to recess |
|
immediately after Mr. Cline. |
|
I now recognize Mr. Cline for five minutes. |
|
Mr. Cline. Thank you, Mr. Chair. |
|
I want to thank the witnesses for being here. |
|
I'm concerned by something that Professor Hammond said, |
|
that there's already a certain degree of accountability in the |
|
rulemaking process when, according to a recent study of the |
|
Department of Health and Human Services' rulemaking practices |
|
from 2001-2017 revealed that 1,860 FDA final rules, 98 percent |
|
of their total, had been issued illegally, and that other |
|
agencies had similar problems, in violation of Buckley v. |
|
Valeo, where the Supreme Court held that rulemaking is a |
|
significant government power that may be exercised only by |
|
officers appointed in accordance with the Constitution's |
|
appointment clause. |
|
So, what we have are unappointed, unelected bureaucrats |
|
issuing rules against the law, against the Constitution, and |
|
against courts' rulings. |
|
That's why I've introduced legislation called the Ensuring |
|
Accountability in Agency Rulemaking Act. It's a bipartisan |
|
bill. It says that all rules, except in limited circumstances, |
|
have to be signed and issued by an individual appointed by the |
|
President and confirmed by the Senate. It's common sense, it's |
|
compliant with the Supreme Court precedent, and it would ensure |
|
the accountability that the professor claims exist, but really |
|
does not at this point. |
|
We have a situation where the Biden Administration have-- |
|
the regulatory burden totals greatly exceed those of its |
|
immediate two predecessors. The 517 rules have been issued, |
|
costing $318 billion in total and requiring more than 218 |
|
million hours of paperwork, not by bureaucrats but by American |
|
taxpayers and businesses, to comply with these regulations. |
|
So, as the AAF put it in their research, the overarching |
|
conclusions drawn from this data are hardly surprising. The |
|
Obama and Biden Administrations imposed regulatory burdens in |
|
the hundreds of billions of dollars, while the Trump |
|
Administration was nominally deregulatory. |
|
So, in addition to cosponsoring the REINS Act, we need to |
|
take action legislatively to regain the rulemaking power of the |
|
Congress. |
|
I would go to ask Ms. Ho, let's go to another agency. The |
|
FTC, under Chair Lina Khan, recently announced a proposed rule |
|
that would purport to prohibit noncompete agreements |
|
nationally. This comes on the heels of California weakening or |
|
eliminating the enforceability of noncompete agreements, which |
|
China has capitalized on and is another method in their arsenal |
|
to steal U.S. intellectual property, specifically trade |
|
secrets. |
|
Do you believe that the proposed rule exceeds the FTC's |
|
statutory authority? |
|
Ms. Ho. Thank you for the question. |
|
Without commenting on particular rules, I will underscore |
|
that one thing your question highlights is that one way that we |
|
know, or we can tell or suspect that an agency is exceeding its |
|
authority, is when it acts in an area that it has not typically |
|
acted in before. That's one of the aspects of the major |
|
questions doctrine that has been I think a topic of interest |
|
lately. |
|
So, I think one clue, perhaps, that an agency may be acting |
|
outside of its authority is when it is acting in an area that |
|
it has not acted in and also an area where, in our system of |
|
federalism, States have typically acted. |
|
Mr. Cline. What's your position on the constitutionality of |
|
rules issued by nonconfirmed individuals, essentially violating |
|
Buckley v. Valeo? |
|
Ms. Ho. I think that's an excellent question. I think I |
|
would need to know sort of more facts and circumstances to |
|
opine definitively, but I do think, again, your question |
|
highlights issues of accountability, accountability to voters. |
|
Mr. Cline. Mr. Cleckner, I believe you spoke to Ms. Khan |
|
and the FTC a little bit earlier. Did you? OK. Can you speak to |
|
that? |
|
All right. Mr. Wolfson. |
|
Mr. Wolfson. I think that for the FTC to step into an area |
|
that they have never previously found authority in the FTC |
|
statute to then say, we now have the authority to bar |
|
particular behaviors, again, regardless of whether that is a |
|
good or bad law--there are a lot of States, red and blue, that |
|
are addressing noncompete clauses. |
|
So, regardless of whether or not that is a good thing, it's |
|
kind of like if Health and Human Services said, ``We're going |
|
to regulate minimum wage requirements.'' It's not their |
|
bailiwick and having them do it creates all sorts of problems. |
|
Regardless of the level of expertise of the people inside |
|
the agencies, it doesn't ever seem to be the case that the |
|
people who are at FTC would be the ones in the best position to |
|
evaluate those kinds of questions. |
|
Mr. Cline. Thank you. |
|
I yield back, Mr. Chair. |
|
Mr. Massie. I thank the gentleman for his questions. |
|
We're going to take a short recess to vote. This is a |
|
special circumstance where there's only one vote, so Members |
|
can go vote and come back quickly. |
|
So, the recess I anticipate will probably be about 15 or 20 |
|
minutes, and we'll convene as soon as the Ranking Member and |
|
myself return, or his designee, and somebody to ask questions. |
|
So, I encourage the witnesses to take a break, a short |
|
break. Thank you. |
|
The Subcommittee now stands in recess. |
|
[Recess.] |
|
Mr. Massie. The Committee is now back in order, and we'll |
|
start where we left off with Mr. Johnson from Georgia. I now |
|
recognize him for five minutes. |
|
Mr. Johnson of Georgia. Thank you, Mr. Chair. |
|
Republicans favor low taxes on the wealthy and less |
|
government. So, low taxes, less government has been their |
|
campaign mantra since Ronald Reagan. To accomplish less |
|
government, just about every Republican, including those on |
|
this dais, have signed on to the Grover Norquist ``No New Tax'' |
|
pledge. In a 2001 radio interview, Grover Norquist revealed his |
|
true intention. He said, famously, it's not--``I'm not in favor |
|
of abolishing the government; I just want to shrink it down to |
|
the size where we can drown it in the bathtub,'' end quote. |
|
When Republicans are not cutting taxes, they are cutting |
|
the ability of Federal agencies to protect the public health, |
|
safety, and the ability to enjoy freedom and prosperity. The |
|
REINS Act, which if passed, would prevent agency rulemaking |
|
from protecting the American public from corporate greed that |
|
jeopardizes the health and safety of the American people is a |
|
move toward strangling the Federal Government. In short, what |
|
the REINS Act does is put profits over people. |
|
Now, Ms. Ho, you, like the rest of the America, observe the |
|
congressional dysfunction in its inability to elect a Speaker. |
|
It took 15 rounds over a five-day period. You witness that had |
|
spectacle, did you not? |
|
Ms. Ho. Yes, sir. |
|
Mr. Johnson of Georgia. The REINS Act would act as a |
|
chokehold on Federal agencies' ability to promulgate rules that |
|
protect the health, safety, and welfare of the American people |
|
like those in East Palestine, Ohio. Isn't that correct? |
|
Ms. Ho. Yes, that's my understanding, your honor. |
|
Mr. Johnson of Georgia. Now, there is some people in |
|
America who trust the Federal Government to make sure that our |
|
water is safe, our air is safe to breathe. We rely on the |
|
regulatory system to improve our lives every day, whether |
|
that's by protecting working families from getting ripped off |
|
by banks or by ensuring that we have fewer car-related deaths. |
|
In recent years, we've seen the devastation that comes from |
|
deregulation. Look no further than the disaster in East |
|
Palestine or the water crisis in east--in Flint, Michigan. |
|
Congress can pass laws with broad outlines, but we need |
|
agencies to translate those laws into actionable policy. Using |
|
input from scientists, stakeholders, and the public, these |
|
issues are complicated, and we need experts working on them, |
|
not Members of Congress who get caught up in congressional |
|
gridlock and can't even elect a Speaker. |
|
So, Professor Hammond, we're still discovering the fallout |
|
from the Norfolk Southern derailment in East Palestine, but we |
|
understand that residents are already affected by toxic |
|
chemicals that were released into the surrounding air, water, |
|
and land. Professor Hammond, will the ability of the Federal |
|
Government to create stronger environmental safeguards be |
|
helped or hurt by the passage of the REINS Act? |
|
Ms. Hammond. Thank you for that question. I believe it will |
|
be severely hurt. We need those environmental safeguards. |
|
Mr. Johnson of Georgia. Why is that? Why will the REINS Act |
|
hurt? |
|
Ms. Hammond. It's because all the effort that the agencies |
|
have brought to bear, as you mentioned, with scientific and |
|
technical expertise, on actually evaluating how toxins do |
|
impact people's health and the environment, and then actually |
|
putting restrictions in place to prevent people's exposure to |
|
those, all that kind of effort, which of course is also |
|
informed by a participatory rulemaking process, all that would |
|
be simply extinguished were the REINS Act to be in effect. |
|
Mr. Johnson of Georgia. So, you said in your testimony that |
|
we should really be looking at the dysfunction in the courts, |
|
which you say is straining separation of powers and disrupting |
|
agencies and carrying out the mandates that Congress has given |
|
them to protect the people of this country. Can you elaborate |
|
on that? |
|
Ms. Ho. Yes. I was referring to the major questions |
|
doctrine, which picked up some traction in the recent West |
|
Virginia v. EPA decision. The problem with that doctrine is, as |
|
I quoted in there, it's a real power grab by the Supreme Court |
|
to be able to substitute its own policy preferences for that of |
|
either of the accountable branches. |
|
Mr. Johnson of Georgia. That's from a right-wing extremist |
|
Supreme Court? |
|
Ms. Hammond. Indeed. |
|
Mr. Johnson of Georgia. I yield back. |
|
Mr. Massie. The gentleman yields back. |
|
I now recognize Mr. Bentz from Oregon for five minutes. |
|
Mr. Bentz. Thank you, Mr. Chair, and congratulations on |
|
your Chairship, and thank you for selecting this most |
|
interesting topic for today. |
|
Back in the small State of Oregon, for eight years, I was |
|
the Water and Resource Commission, the last two years of which |
|
I was Chair, and I had many opportunities to review |
|
Administrative Rules because we wrote the rules for everything |
|
having to do with water in that State. |
|
I just have to comment on that because of the remarks made |
|
earlier about how, if you simply go through the rulemaking |
|
process, the rule will hue to the statute, because I guarantee |
|
you, that's not necessarily what happens. It's a totally |
|
political activity, and it's amazing how much damage can be |
|
done by the agency as it writes rules. I know because I rewrote |
|
them personally myself many times and then was overruled |
|
because of the number of votes I didn't have on the Commission. |
|
So, let's just say, I don't view the APA as a device |
|
through which you can place rules and suddenly have them hue to |
|
the statute. It isn't. The question I would have, I want to go |
|
back to this West Virginia v. EPA discussion. The way I |
|
understood it is that case says, quote, ``more than merely |
|
plausible, textual basis for the agency action.'' |
|
So, Ms. Ho, can you tell us, has the problem been solved |
|
that we're talking about here today by virtue of that Supreme |
|
Court opinion? The problem being overreach by agencies. I |
|
should first--my assumption is that there is overreach. I've |
|
observed it myself. In your opinion, first, is there overreach; |
|
and second, has it been resolved by virtue of West Virginia v. |
|
EPA? |
|
Ms. Ho. Thank you for that question. I think the way that I |
|
would put it is I think West Virginia v. EPA is a step toward |
|
restoring the proper checks and balances and separation of |
|
powers but certainly isn't and doesn't purport to be a complete |
|
solution to the problem that this Committee is discussing |
|
today. |
|
Mr. Bentz. It also would appear, the more--if we wanted |
|
less regulations, we would have less laws. We would have fewer |
|
laws to write regulations regarding. There seems to be a |
|
massive disconnect between my friends on the other side of the |
|
aisle and reality. They seem to be saying that we want to do |
|
away with all statutes and all rules, but that's not the case, |
|
is it? What we're trying to do is get it right. What would your |
|
definition of ``right'' be here when it comes to what these |
|
agencies should be doing? |
|
Ms. Ho. Well, I think your question highlights--and to get |
|
back to bringing up West Virginia v. EPA, I think what the |
|
court said there is a very--it created a rule that has a long |
|
tradition in this body. There are lots of other clear statement |
|
rules. It's just saying if we see an agency acting acting in an |
|
area that it hasn't before in highly politically or socially |
|
charged circumstances, we want to make sure that Congress has |
|
clearly authorized that agency to act in that way. |
|
So, we're going to look for a clear statement, just like |
|
courts do in sovereign immunity, looks to make sure that |
|
Congress has waived sovereign immunity, or in the area of |
|
retroactivity, because our tradition is not to have retroactive |
|
laws. Courts want to make sure that Congress has done so |
|
clearly. |
|
So, I think West Virginia's rule is just one in a series, |
|
in a tradition of rules where the courts have said, ``Look, |
|
this is within Congress' authority, and if Congress wants to |
|
give that authority to an agency, we want to make very sure |
|
that it has done so clearly.'' |
|
Mr. Bentz. Thank you for that. |
|
Mr. Wolfson, there has been some assertion that this |
|
attempt to reign in agencies is unconstitutional, and that |
|
somehow Congress, by stepping into this space of Administrative |
|
Rule, is stomping on executive privilege or the executive |
|
space. What's your thought? |
|
Mr. Wolfson. So, my understanding has always been that the |
|
legislature's job is to issue the laws, and the regulatory |
|
agencies are not really supposed to be writing laws, but |
|
they're supposed to be enforcing those laws as Congress wrote |
|
them. |
|
So, if Congress were to decide that they wanted to pass a |
|
law that's super vague, then there become challenges for |
|
implementation and that's where the regulatory State has |
|
stepped in, but that's not how the Framers designed our |
|
Constitution. That's shouldn't be the goal. That is kind of |
|
where we are. |
|
The fact that we have resulted in a spot where regulations |
|
have to be written by regulatory agencies, regardless of how |
|
much expertise those people have, they don't have more |
|
expertise than the professors at some universities who are |
|
talking about these topics who you could bring in and speak to |
|
as Members of Congress to write really clear laws that talk |
|
about the problems that might be faced. |
|
Mr. Bentz. Thank you. |
|
With that, Mr. Chair, I yield back. |
|
Mr. Massie. The gentleman yields back. |
|
I now recognize Mr. Ivey from-- |
|
Mr. Cicilline. Unanimous consent? |
|
Mr. Massie. I'm sorry? Oh, I recognize the Ranking Member |
|
for a unanimous consent request. |
|
Mr. Cicilline. Thank you, Mr. Chair. I ask unanimous |
|
consent to introduce into the record a statement from the |
|
United Steel Workers; written testimony of Elizabeth Skerry |
|
from the Regulatory Policy Associate at Public Citizen; a |
|
letter from the Center for Progressive Reform; a letter from |
|
the Coalition for Sensible Safeguards, an alliance of over 150 |
|
labor, scientific, research, good government, faith, community, |
|
health, environmental, and public interest groups; and an |
|
article from The Hill entitled, ``Buttigieg Calls on Trump to |
|
Back Reversing Deregulation in Wake of Train Derailment.'' |
|
Mr. Massie. Although these may be unanimous consent |
|
requests in need of scrutiny, I hear no objection, and so |
|
ordered. |
|
Mr. Massie. Who would the Ranking Member prefer I--OK. |
|
I now recognize Ms. Jayapal for five minutes from |
|
Washington. |
|
Ms. Jayapal. Thank you, Mr. Chair. |
|
On February 3rd, 50 freight train cars carrying hazardous |
|
material derailed, as we know, in a fiery crash on the borders |
|
of East Palestine, Ohio, sending toxic chemicals into the |
|
surrounding air, soil, and creeks. This incident, in my mind, |
|
highlighted the influence of corporate lobbying on railway |
|
safety. I have a bill that you've heard about, called the Stop |
|
Corporate Capture Act, that would lessen corporate influence in |
|
the rulemaking process and clear a path for increased public |
|
participation. |
|
Listening to these comments today, I think the problem is |
|
not that regulatory agencies don't have the expertise or should |
|
not have a role in regulation; it's that the leg branch and the |
|
rulemaking branch both are too often controlled by special |
|
interests, by big corporate lobbying money. I've got a bill to |
|
address that larger issue as well on the legislative side. It's |
|
called the Anticorruption and Public Integrity Act, and it |
|
addresses the legislative side. |
|
So, Professor Hammond, I just want to dive into this a |
|
little bit and see if we can understand exactly what's happened |
|
here in the railway industry as an example. Powerful railway |
|
lobbyists have spent over $700 million in the past 25 years to |
|
cut costs, weaken safety regulations, and strengthen their |
|
bottom line. This is at the same time they've been making |
|
record profits, by the way. |
|
Just as an example, Norfolk Southern paid out $18 billion |
|
in stock buybacks and dividends, and at the same time, we've |
|
got this weakening of regulation. I wanted to talk about the |
|
Obama-era safety rail regulations as an example that arose from |
|
a 2008 southern California train wreck that killed 25 people |
|
and injured 135 others. |
|
Can you give us some insight into how frequently lobbyists |
|
successfully encourage the administration to scale back or |
|
delay implementation? |
|
Ms. Hammond. I don't have an exact number for you, but |
|
certainly, the evidence is extensive that this is a constant |
|
effort by the railroad industry in this particular example, and |
|
then, of course, by other industries with respect to agency |
|
rulemakings. |
|
Ms. Jayapal. Talk to me about the PTC, the automated |
|
braking technology and the PTC, which debuted in 1990. In fact, |
|
I think it was on the kind of most-wanted list of things to do |
|
back in 1990 when that technology emerged, but it took 30 years |
|
to actually implement. Can you give us some understanding of |
|
what happened in that process? |
|
Ms. Hammond. Just briefly, what I understand is that there |
|
was an initial support from the railroad industry, but once it |
|
became apparent that this would be actually a requirement, |
|
there was a decades-long effort to resist it. |
|
Ms. Jayapal. So, in 2014, Obama also proposed stricter |
|
rules for trains that transport petroleum and other hazardous |
|
materials. In 2015, he issued a requirement, a regulation that |
|
required trains carrying highly flammable liquids to be |
|
regulated. That met with opposition from whom? |
|
Ms. Hammond. The railroad industry. |
|
Ms. Jayapal. The railroad industry. In fact, Norfolk |
|
Southern, among others, said that requiring these brakes was, |
|
quote, ``not in the public interest.'' Do you know, Professor |
|
Hammond, what happened next in 2015 when the Republicans came |
|
in? |
|
Ms. Hammond. I believe that the rule did not go into |
|
effect. |
|
Ms. Jayapal. Correct. The Republicans introduced the FAST |
|
Act, and it simply proposed a cost-benefit analysis of these |
|
electronic braking systems that had been out there for more |
|
than 20 years, but had killed a lot of people, apparently we |
|
wanted to do a cost-benefit analysis. Then in 2018, the rule |
|
was repealed by the Trump Administration, and they issued a |
|
rule to remove the advance braking system. In fact, in the |
|
House, the new GOP Chair of the Transportation Committee was |
|
the Chamber's top recipient of industries--or is the top-- |
|
Chamber's top recipient of industry's campaign cash. |
|
Norfolk Southern's general counsel, do you know what his |
|
background was? |
|
Ms. Hammond. I don't. |
|
Ms. Jayapal. OK. Let me tell you. He was the person who |
|
pressed for safety waivers, and he is the former Executive |
|
Director of the National Transportation Safety Board. Tell us |
|
what the National Transportation Safety Board does. |
|
Ms. Hammond. It, indeed, regulates the safety. |
|
Ms. Jayapal. It regulates the safety of these trains. So, |
|
it's actually the current body that's investigating the |
|
company. |
|
So, I guess I want to take this in our last minutes to the |
|
Stop Corporate Capture Act and ask you, in my bill, we enhance |
|
the public's notice and comment influence through the Office of |
|
the Public Advocate. How would an increase in public |
|
participation improve the rulemaking process? |
|
Ms. Hammond. Well, it would bring more voices that could be |
|
counteracting this extensive, very expensive, consistent effort |
|
by industry to capture the process. |
|
Ms. Jayapal. Bring us the voices of the people on the |
|
ground that we are sworn to protect. |
|
Mr. Massie. The gentlelady's-- |
|
Ms. Jayapal. Thank you, madam. |
|
Mr. Chair. Also, Mr. Chair, may I ask unanimous consent to |
|
enter into the record a number of items? The first is a letter |
|
of support for the Stop Corporate Capture Act; the second is an |
|
oil and gas--an article on how oil and gas lobby buries the |
|
findings of negative impacts of fossil fuels; the third is a |
|
letter from All Board Ohio on Norfolk Southern's influence on |
|
safety regulations; and the fourth is a study on the presence |
|
and influence in lobbying on SEC rulemaking that shows that the |
|
influence of lobby groups outweighs public comments. |
|
Mr. Massie. Without objection. |
|
Ms. Jayapal. Thank you, Mr. Chair. I yield back. |
|
Mr. Massie. The gentlelady yields back. |
|
The gentleman from North Carolina is now recognized for |
|
five minutes. |
|
Mr. Bishop. So, Professor Hammond, I've listened with |
|
interest to the number of times that the East Palestine |
|
derailment has been invoked. Do I understand that this existing |
|
regime of rulemaking under the Administrative Procedure Act |
|
through the administration is susceptible to influence from |
|
special interests? |
|
Ms. Hammond. Yes. That's why I think that Representative |
|
Jayapal's approach is a good one. |
|
Mr. Bishop. So, the conclusion that she draws is it would |
|
be a bad idea to reinvigorate Congress' participation in the |
|
making of the necessary rules because there would be political |
|
influence in Congress. There's political influence in the |
|
rulemaking process under the APA. Isn't that right? |
|
Ms. Jayapal. Would the gentleman yield? Because you are |
|
speaking about me. |
|
Mr. Bishop. No, thank you. No, I won't. |
|
Ms. Jayapal. Well, you're implying things that I did not |
|
say. |
|
Mr. Bishop. No, I'm talking about your question. I'm |
|
talking about your question which stands for--I'm not arguing |
|
with you. It's my time. |
|
Ms. Jayapal. OK. Please don't say-- |
|
Mr. Bishop. It's my time. Would you respect the order of |
|
the Committee, please? |
|
Mr. Massie. The gentleman from North Carolina is |
|
recognized. It's his time. |
|
Ms. Jayapal. Mr. Chair-- |
|
Mr. Massie. He has not impugned the other Member or her |
|
motives. |
|
Mr. Bishop. Can I have time back on my--I've been |
|
interrupted about 30 seconds of time by disorder from the other |
|
side of the aisle, Mr. Chair. Could I have my time back? |
|
Mr. Massie. The gentleman will receive an additional 30 |
|
seconds. |
|
Ms. Jayapal. Mr. Chair, procedural question? |
|
Mr. Bishop. The Committee is not in order, Mr. Chair. |
|
Mr. Cicilline. Well, I raise a point of order, Mr. Chair. I |
|
would raise a point of order. Does a Member of a Committee have |
|
a right to correct-- |
|
Mr. Massie. What rule? |
|
Mr. Cicilline. I'm raising a point--I'm asking you to rule |
|
on a point of order. Does a Member of the Committee--or point |
|
of parliamentary inquiry. Does a Member of the Committee have |
|
the ability to correct a misstatement of a question that was |
|
posed by one Member? Because without the ability to correct |
|
that, a witness is then going to be invited to respond to |
|
something she didn't say, which seems sort of Alice in |
|
Wonderland-ish and maybe not a great practice. So, is she |
|
permitted to seek clarity that this be corrected before the |
|
witness answers? |
|
Mr. Massie. The Member may ask for the other Member to |
|
yield, but the Member is not required to yield. If a written |
|
statement wants to be submitted, we'll accept that. |
|
Mr. Cicilline. OK. Thank you. |
|
Mr. Massie. The gentleman from North Carolina is now |
|
recognized again, and he'll have an additional 30 seconds. |
|
Mr. Bishop. Thank you, Mr. Chair. |
|
So, I'm not sure how it stands to reason if allegedly, the |
|
administrative process has been susceptible to political |
|
influence that this would be a distinct or different set of |
|
circumstances if Congress instead were making the laws. Can you |
|
explain why that's--one--it would be present in one and not the |
|
other, given what you have talked about East Palestine and the |
|
Federal regulations on transportation? |
|
Ms. Hammond. Sir, I have not said that corporate influence |
|
is present in one and not the other, and I very much am of the |
|
mind that there can be improvement in both branches. One of the |
|
differences in the Administrative Branch is that at least we |
|
have more transparency, which becomes opaque were the REINS Act |
|
to go into effect. |
|
Mr. Bishop. Is it possible that the East Palestine |
|
derailment occurred because of enforcement--because of |
|
administrative incompetence? That is to say, let's say the |
|
administration--let's say the Mayor Pete is more interested in |
|
talking about whether highways are racist and diversity, |
|
equity, and inclusion then focusing on the nuts and bolts of |
|
transportation, so you see things like this crop up? Is that |
|
possible? |
|
Ms. Hammond. Sir, I'm not aware of facts that support that |
|
assertion. |
|
Mr. Bishop. I didn't ask if you were aware of--I asked if |
|
it's a possible reason contributing. In fact, do you have any |
|
evidence that it was caused by the lack of a particular |
|
regulation rather than the administrative distraction? |
|
Ms. Hammond. I do understand that one of the possible |
|
failures in that wreck, and I believe the investigation is |
|
still underway, is equipment that appears to be completely |
|
unregulated. |
|
Mr. Bishop. OK. So, it's possible. Either one seems |
|
possible to me. |
|
I pulled up quickly the Administrative Procedure Act has |
|
been enforced since 1946. The five volumes of regulations on |
|
transportation in part 49 of CFR totals 4,634 pages. If that's |
|
the case, I mean, that is the state of affairs. What I |
|
understand is they're arguing that East Palestine is an example |
|
of why we need to maintain that. How many pages of regulations |
|
would be necessary in the transportation part so that we |
|
wouldn't have things like East Palestine? |
|
Ms. Hammond. I can't give you a page number, but from |
|
having been involved in writing regulations, it just takes a |
|
little bit of work to set forth all those technical details |
|
that are important to clearly understand what is expected and |
|
to clearly present the protections that are necessary. |
|
Mr. Bishop. You testified--as I was going back and forth |
|
and listening on audio remotely, at some point you testified |
|
that if we had fewer regulations, it would do harm to the |
|
economy, right? |
|
Ms. Hammond. |
|
[Nonverbal response.] |
|
Mr. Bishop. Are you an economist? |
|
Ms. Hammond. I'm not an economist, but I read the cost- |
|
benefit analyses that agencies prepare for their OIA review, |
|
and in those you can see the extraordinary benefits to the |
|
economy of many protective regulations. |
|
Mr. Bishop. So, you haven't felt it an impediment to your |
|
forming that conclusion or that opinion based on reviewing the |
|
expertise of others? You haven't found it to be an impediment |
|
that you lack a specific expertise in the area, right? |
|
Ms. Hammond. It's written reasonably well so that most |
|
educated people can understand. |
|
Mr. Bishop. All of this expertise that exists in all these |
|
magnificent agencies can be drawn upon by Congress, by |
|
committees just like this, to be advised upon whether a |
|
particular rule ought to be made a law, isn't that true, in the |
|
same way you formed your conclusion from inputs by experts? |
|
Ms. Hammond. I'm not sure I understand the question, sir. |
|
Mr. Bishop. OK. Do you understand the question, Mr. |
|
Wolfson? Do you have a thought about it? |
|
Mr. Wolfson. I believe that this body or any other body of |
|
Congress would be able to call experts from across industry, |
|
from the academy, others who are experts who have worked on |
|
these areas for a long time, whether they are in the government |
|
or outside of the government, and could gain the expertise in |
|
the same way that the regulatory agencies attempt to do through |
|
the notice and comment process. |
|
Mr. Bishop. All right. My time is expired. Thanks. |
|
Mr. Massie. The gentleman yields back. |
|
The gentleman from California, Mr. Correa, is recognized |
|
for five minutes. |
|
Mr. Correa. Thank you, Mr. Chair. I just wanted it noted |
|
that I returned to the Committee. |
|
Mr. Massie. It's very much appreciated. |
|
Mr. Correa. Thank you, sir. |
|
Mr. Massie. My lobbying was successful. |
|
Mr. Correa. Yes, it was. |
|
Mr. Cicilline. Luis, do you want like a formal welcome from |
|
the Democratic side as well? |
|
Mr. Correa. I got it from them, Mr. Ranking Member. |
|
I just want to take my first 30 seconds and yield to my |
|
colleague, Ms. Jayapal. |
|
Ms. Jayapal. Thank you so much. I am very happy you're back |
|
on the Committee. |
|
I just wanted to correct the record because my colleague |
|
across the aisle was saying things I didn't say. What I have |
|
said consistently, and the legislation I have introduced |
|
consistently, is both to implement reforms so that the |
|
legislative process works for the people that we represent and |
|
not for big corporate interests, and to propose regulation that |
|
would help the regulatory side--or legislation that would help |
|
the regulatory side to do the same thing. |
|
Thank you, Mr. Correa, for yielding. |
|
Mr. Correa. Thank you very much. |
|
I just wanted to thank the witnesses today for your |
|
testimony. It reminds me of a law school constitutional class. |
|
Very interesting. |
|
Ms. Ho, I wanted to, if I can, ask you and discuss with you |
|
a little bit of the Chevron doctrine, which is essentially the |
|
deference doctrine. Did you say something about congressional |
|
neglect? Was that some of your words, or was that another |
|
witness that said something to the effect? |
|
Ms. Ho. I think one of the points that I made in my |
|
opening, Your Honor, is that when this body, when Congress does |
|
not act, when it does not exert its role as the maker of laws, |
|
it sort of leaves a vacuum where other branches, particularly |
|
the Executive, can step into that void. |
|
Mr. Correa. Thank you. I ask this because you've got what |
|
appears to be a conflict challenge here between the Executive |
|
and our body, rulemaking, and you have a third, which is |
|
roughly the third branch of our government, U.S. Supreme Court, |
|
that ruled in the Chevron doctrine. Today we have, as always, |
|
the Supreme Court changes, new members and new justices. So, is |
|
there a possibility that in the future, there may be a new |
|
decision on the Chevron doctrine that maybe affirm it or maybe |
|
not affirm it? |
|
Ms. Ho. You know, that's a great question. I know just |
|
enough about the Supreme Court to know never to try to predict |
|
what it will do. I do think it's interesting that in a decision |
|
recently by the court, Justice Kagan authored a decision called |
|
Kisor, which trimmed back our deference, which involves |
|
agencies--courts dealing with agencies' interpretations of |
|
their own regulations. |
|
The Chief Justice wrote separately in that case to say that |
|
because the court actually did not overrule Auer in that case, |
|
that decision should not be understood as closing down requests |
|
for the court to revisit the Chevron decision sometime in the |
|
future. |
|
Mr. Correa. I ask that because I have the highest respect |
|
for our Supreme Court, our third branch of government, and |
|
their decisionmaking. In thinking about--we're essentially |
|
talking about the REINS Act, trying to correct something that |
|
some of us view as a flawed decision, and that given the case, |
|
I think it's important to see where the Supreme Court may be |
|
going in the future. |
|
Thank you. |
|
Professor Hammond, I just wanted to ask you, do regulations |
|
supersede congressional authority? |
|
Ms. Hammond. No, they don't. |
|
Mr. Correa. If they do? |
|
Ms. Hammond. Then a court can strike it down, and, of |
|
course, Congress can also correct the agency. |
|
Mr. Correa. What is the Administrative Procedure Act? |
|
Ms. Hammond. It is the fundamental procedural statute that |
|
Congress passed, indeed in 1946, to ensure that agencies follow |
|
various procedural rules to ensure participatory and reasoned |
|
decisionmaking. |
|
Mr. Correa. ``Participatory'' meaning transparency-- |
|
Ms. Hammond. That's right. |
|
Mr. Correa. --input by the public, those that may be |
|
interested are not in the decisionmaking. All this though |
|
always being consistent with congressional authority, |
|
congressional essentially view--go ahead. Go ahead. |
|
Ms. Hammond. Yes, that's right. The Administrative |
|
Procedure Act also has provisions for judicial review, and it |
|
provides that one of the reasons a court can strike down what |
|
an agency has done is failure to attend to the statutory |
|
mandate. |
|
Mr. Correa. Thank you very much. |
|
Mr. Chair, I yield. |
|
Mr. Massie. The gentleman yields back. |
|
Mr. Fitzgerald from Wisconsin is now recognized for five |
|
minutes. |
|
Mr. Fitzpatrick. Mr. Chair, I'm going to yield some time to |
|
Mr. Bishop. |
|
Mr. Bishop. I thank the gentleman. I'm sorry, Mr. |
|
Fitzgerald, could you yield to me at the end of your time? |
|
Mr. Fitzpatrick. Very good. Very good. |
|
Both this Congress and last Congress, I introduced the |
|
Separation of Powers Restoration Act, or SOPRA, which would |
|
displace precedent established in Chevron, the case you're |
|
talking about, NRDC. As you know, in this case Supreme Court |
|
required judicial deference to government agency |
|
interpretations of ambiguous statutes. This bill, I believe, |
|
would tip the scale back in favor of listening to what Congress |
|
has to say in its statutes rather than how an agency interprets |
|
them. |
|
Ms. Ho, what's your interpretation of the Chevron |
|
precedent, and do you believe it's worthwhile for Congress to |
|
try to reclaim some of its power that for years has gone |
|
through the Executive Branch through agency interpretation of |
|
statutes and regulations? |
|
Ms. Ho. Thank you. Let me begin with the last part of your |
|
question. I certainly agree that it's critical in our system of |
|
checks and balances and separation of powers for Congress, for |
|
this body, to exert its lawful authority as the maker of laws |
|
in our land. |
|
As to Chevron and somewhat relatedly, I think, one thing |
|
that is interesting about that case is even though, as it has |
|
come to be sort of a decision involving administrative |
|
agencies, that decision nowhere cites the Administrative |
|
Procedure Act. So, I think a decision that sort of sets forth |
|
this notion of deference is entirely outside the bounds of what |
|
this court set out, what some have referred to as the |
|
constitution of the Administrative State, the Administrative |
|
Procedure Act. That decision nowhere cites or even engages with |
|
what this court set into law in the Administrative Procedure |
|
Act. |
|
Mr. Fitzpatrick. Very good. Thank you. |
|
Mr. Chair, I also just wanted to just spotlight an example |
|
of the politicization of--that's occurring at the Biden |
|
Administration's FTC right now, that you're well aware. Last |
|
week, it was reported that Fight Corporate Monopolies, a |
|
501(c)(4) arm of the American Economic Liberties Project, |
|
intended to air attack ads on prime-time TV against myself and |
|
you, the Chair of this Subcommittee, and other colleagues. In |
|
fact, this organization hired a mobile billboard truck to drive |
|
through my district due to my opposition to the FTC noncompete |
|
rule that we've been discussing today. |
|
Certain groups coming after Members of Congress with |
|
misleading information isn't particularly new. I was disturbed |
|
to learn that Ms. Sarah Miller, the executive director of the |
|
very group I just mentioned, as of Monday, is now working for |
|
Chair Khan as a senior adviser and is likely to work on the |
|
very issue she attacked us on just last week. So, you couldn't |
|
ask for a more current and better example of what's going on at |
|
the Biden Administration's FTC. |
|
With that, I would yield the balance of my time to Mr. |
|
Bishop. |
|
Mr. Bishop. I thank the gentleman for yielding. |
|
It does seem to me, pursuant to--or apropos of the |
|
conversation that happened in part on my time, if that |
|
process--the notion here is, well, we have to rely on the |
|
agencies to make rules because the agencies is where expertise |
|
is brought to bear, and that this will be somehow less |
|
susceptible to politics. |
|
I thank the gentlelady from Washington for raising it, the |
|
administrative process appears--in the creation of rules |
|
appears to be susceptible to influence from corporate |
|
lobbyists. Some say a few people have seen a corporate lobbyist |
|
or two around Capitol Hill. |
|
So, if you're talking about one or the other, then it seems |
|
to me a false choice that you're going to get rid of politics |
|
by leaving it in the administration. In fact, what you're going |
|
to do is you're going to effectively put lawmaking into the |
|
hands of executive officials higher up. |
|
Let me ask you, Mr. Cleckner, some years ago, there was |
|
Operation Choke Point. Are you familiar with that situation? |
|
Mr. Cleckner. I am, sir. Yes. |
|
Mr. Bishop. So, several agencies, the FDIC, Office of the |
|
Comptroller of the Currency, the DOJ came together at the same |
|
time to have a new regulation that would encourage banks to not |
|
do business with entity--with businesses that were in the |
|
manufacturing arms or something like that. Isn't that correct? |
|
Mr. Cleckner. That's correct. |
|
Mr. Bishop. There's no reason to believe that was a product |
|
of sudden expertise, is it? That was a political thing, yes? |
|
Mr. Cleckner. Completely political and done secretly for a |
|
couple of years, until it even came out that it was official. |
|
Mr. Bishop. So, if you wanted to place lawmaking in the |
|
hands of people who don't have broad popular support, would |
|
there be any better way to do it than do it through this |
|
Administrative Law system? |
|
Mr. Cleckner. You need it to be done by people who are |
|
accountable to the American public. |
|
Mr. Bishop. Professor Hammond, do you believe in the |
|
principle that government derives this legitimacy from the |
|
consent of the governed? |
|
Ms. Hammond. Yes. |
|
Mr. Massie. The witness may answer, and the gentleman's |
|
time is expired. |
|
Does the gentleman yield back? |
|
Mr. Bishop. Oh, I'm out. |
|
Mr. Fitzpatrick. I yield back. |
|
Mr. Massie. The gentleman yields back. |
|
I now recognize Ms. Scanlon from Pennsylvania for five |
|
minutes. |
|
Ms. Scanlon. Thank you, Mr. Chair. |
|
So, as I understand it, regulatory lawmaking whatever, it's |
|
not something we talk about usually over the dinner table, not |
|
something I get a lot of questions about in my town halls. As I |
|
understand it, this hearing has been called to address concerns |
|
about the proper balance between Congress and the Federal |
|
agencies on how we create rules and regulations with enough |
|
detail to implement and oversee the laws that Congress passes |
|
for the benefit, presumably, of the American people. |
|
Those rules have a huge impact on public health and safety; |
|
when we get in a plane it helps ensure the plane is not going |
|
to crash; that when we eat food it's safe and--or so is |
|
medications that we take; businesses can't scam us out of our |
|
hard-earned dollars; and employers have to provide safe |
|
workspaces. So, these are all the things that these regulations |
|
do. As I understand it, we have about 4,000-6,000 of these |
|
rules published every year. |
|
To hear what we're hearing in the rhetoric today, these |
|
Federal agencies are running roughshod over Congress and |
|
there's nothing Congress can do about it. That's not how it |
|
works. Basically, an agency convenes, as we've heard, experts |
|
and seeks public input and publishes rules. There's a whole |
|
process where people can have input, we can look at this; and |
|
before these regulations take effect, Congress has to be |
|
notified. |
|
With respect to major regulations, which is what this REINS |
|
Act seeks to address, and there's about 60-80 of them a year, |
|
it ebbs and flows a little bit, those regulations can't take |
|
effect for an additional 60 days after Congress is notified. |
|
So, Congress has this window in which to say, Nope, don't like |
|
that law, nope, we want to change it in some way, and, in fact, |
|
is trying to do that as we speak. |
|
So, if Congress isn't using that authority, it's not the |
|
Federal agency's fault; it's as people have variously described |
|
it today, it's a matter of congressional neglect, that there's |
|
a vacuum, that there's a lack of bandwidth and staffing. |
|
So, it appears to me a better use of resources that if we |
|
want to adjust some of the terms of the Act or provide more |
|
resources to Congress, so Congress can better exercise its |
|
oversight capability, that's where we should be pushing instead |
|
of trying to add additional workload to Congress requiring |
|
passage of more bills through the Senate. |
|
We do have bipartisan agreement that the Senate doesn't |
|
work fast enough as it is now. To require it to pass every |
|
major regulation that the Federal Government needs to put into |
|
effect for the health and safety of Americans would be a huge |
|
disservice. |
|
So, just turning to the practical impact of what we're |
|
talking about here. It's my understanding that the REINS Act |
|
could undo multiple major rules, including many that keep our |
|
kids safe. Professor Hammond, could you give us a couple |
|
examples of regs that protect our children, whether from |
|
consumer products or food or medication? |
|
Ms. Hammond. Yes. Indeed, the one that I mentioned earlier |
|
with respect to soot, kids, of course, are more vulnerable to |
|
air pollution and that's a proposed regulation, particularly |
|
for people--kids who have asthma, as well as others. So, I |
|
don't have a specific example in mind from some of the other |
|
agencies, but that's one that I think is a great one. |
|
Ms. Scanlon. Well, and that particularly resonates with me |
|
because the Philadelphia area has one of the highest rates of |
|
childhood asthma in the country. One in four kids in our region |
|
has environmentally induced childhood asthma. It's a huge, huge |
|
problem. So, obviously, I, for one, would like our best experts |
|
looking at these things and trying to figure out how we can |
|
best ensure the safety of our children. |
|
With that, I would ask unanimous consent to introduce a |
|
letter from the American Lung Association, Allergy and Asthma |
|
Network, National Association of Pediatric Nurse Practitioners, |
|
and a whole range of folks, expressing their strong opposition |
|
to the REINS Act because of its harmful impact on our |
|
communities. With that, I would yield back, after unanimous |
|
consent. |
|
Mr. Massie. Without objection. |
|
Ms. Scanlon. Thank you. |
|
Mr. Massie. The gentlelady yields back. |
|
The gentlelady from Wyoming, Ms. Hageman, is now recognized |
|
for five minutes. |
|
Ms. Hageman. Thank you, Chair Massie. |
|
Professor Hammond, do you know what the cost of the Federal |
|
regulatory burden is in this country on a yearly basis? |
|
Ms. Hammond. I don't have the number at this time. |
|
Ms. Hageman. Well, would it surprise you to know that it's |
|
over $2.1 trillion, and that's just the Federal regulations? |
|
Ms. Hammond. I wouldn't be surprised. To compare that to |
|
the benefits, you'd find that it's lower. |
|
Ms. Hageman. So, I want to go ahead and address some of the |
|
reasons as to why I'm here and why I actually ran for Congress. |
|
I've been a water, natural resource, and constitutional |
|
attorney for over 30 years, and one of the things that I've had |
|
to deal with on behalf of my clients is the overwhelming |
|
regulatory burden that they must navigate pretty much every |
|
single day of their lives. |
|
The Administrative Procedure Act provides only minimal |
|
protection from--against agency overreach, but it at least does |
|
require some form of a process which allows some participation |
|
by the American public. I recently had a case involving the |
|
USDA, the United States Department of Agriculture. A couple |
|
years ago, they posted on their website a two-page guidance |
|
document, and this guidance document required all our livestock |
|
producers to start using RFID ear tags and to register their |
|
ranches with the Federal Government. |
|
According to the USDA, this would've had a $2 billion cost |
|
on the livestock industry. It didn't go through a rulemaking |
|
process. It didn't go through notice and comment. They didn't |
|
invite the ranchers in to discuss whether it was even feasible |
|
in a 100,000-acre ranch out in Wyoming, as to whether they |
|
would be able to use this kind of technology. It was just |
|
simply issued from on high. |
|
I can assure you that this happens every day from these |
|
agencies. Guidance documents, answers to frequently asked |
|
questions, they have all different kinds of names that they |
|
use, but the reality is that they're used to circumvent the |
|
rulemaking process. Are you aware of that, Professor Hammond? |
|
Ms. Hammond. I'm familiar with guidance documents. |
|
Ms. Hageman. OK. So, the Trump Administration actually |
|
worked to address the issue of the agency abuse of guidance |
|
documents through Executive Orders 13891 and 13892. Notably, by |
|
the end of the Trump Administration, which all it did was |
|
require these agencies to post on their websites what guidance |
|
documents they had issued--the bump stock document, I believe, |
|
is a--the banning--the ATF's efforts to ban bump stocks, I |
|
believe, was through a guidance document, since the ATF did not |
|
have the authority to issue that as a regulation. By the end of |
|
the Trump Administration, several agencies had actually |
|
established an online portal, and there were over 70,000 |
|
guidance documents from just a few of those agencies. |
|
So, Mr. Wolfson, can you please explain for us how guidance |
|
documents obfuscate these already minimal protections under the |
|
APA, and further throw into peril the notion of self-governance |
|
and government accountability? |
|
Mr. Wolfson. Thank you, Congresswoman. |
|
Yes, the guidance document problem exists in part because |
|
the agencies know that's a loophole. So, you've got regulators |
|
who want to regulate. They may not want their expertise really |
|
is in understanding the process of how to get regulations done, |
|
and they know that they don't have to go through the |
|
Administrative Procedure Act if they have a guidance document. |
|
The kind of the quintessential example people point to is |
|
the Department of Education Dear Colleague letter toward the |
|
end of the Obama Administration. All of these things end up |
|
basically hinting that there may be regulatory enforcement by |
|
the agency if certain practices are not undertaken, and this |
|
changes people's behavior even if there's no legislative |
|
authority behind that guidance document. |
|
Ms. Hageman. So, what was interesting is Executive Orders |
|
13891 and 13892 were just really transparency requirements. |
|
Isn't that correct? |
|
Mr. Wolfson. That's absolutely right. When I was at the |
|
Labor Department, we had to review over 13,000 guidance |
|
documents, some of which only existed in paper form at the |
|
library at the Department of Labor. |
|
Ms. Hageman. OK. Are either of those Executive Orders still |
|
in place? |
|
Mr. Wolfson. Unfortunately, no. |
|
Ms. Hageman. Why is that? |
|
Mr. Wolfson. I don't know the inside workings, but it's |
|
unfortunate that I believe that, for example, the EPA no longer |
|
even has their guidance portal. So, people who want to find the |
|
guidance documents have to go back to the old method of kind of |
|
searching through the entire department of--EPA's website to |
|
find those. |
|
Ms. Hageman. Well, isn't it correct, Mr. Wolfson, that one |
|
of the very first things that President Biden did when he took |
|
office was that he nullified those two Executive Orders? |
|
Mr. Wolfson. That is correct. |
|
Ms. Hageman. So, this administration intentionally made it |
|
difficult for the American citizens to learn about the guidance |
|
documents that are enforced and affecting these agencies and |
|
intentionally is hiding the information that is so important |
|
for the regulated community. Isn't that fair? |
|
Mr. Wolfson. It certainly would be an assumption one could |
|
make from what has gone on. |
|
Ms. Hageman. All right. Thank you. I yield back. |
|
Mr. Massie. The gentlelady yields back. |
|
The gentleman from Texas, Mr. Moran, is recognized for five |
|
minutes. |
|
Mr. Moran. Thank you, Mr. Chair. |
|
I'm convinced that the preservation of liberty does not |
|
just happen through the substantive decisions that we make here |
|
in Congress; rather, and just as importantly, the preservation |
|
is a result of structural safeguards that our Constitution put |
|
in place almost 250 years ago. |
|
Important structural principles embedded in our |
|
Constitution and the history of this Nation, like separation of |
|
powers, checks and balances, federalism, they're critical to |
|
preserving life, liberty, and the pursuit of happiness. It's |
|
something I talk about often when I talk to my constituents to |
|
say, we cannot seek an end, and in the meantime, trample over |
|
the correct means. We must preserve those structural |
|
safeguards, and that's what we're talking about here today is |
|
separation of powers. |
|
Unfortunately, over the years, both Democrats and |
|
Republicans have eroded these structural protections in pursuit |
|
of some substantive end that fits with our, or their political |
|
agenda, and it's a problem with both parties. It's the American |
|
people who suffer as a result of that. |
|
Professor Hammond, I want to start with you. You mentioned |
|
that there is room to bring more voice to the rulemaking |
|
process. I think I wrote that quote down correctly. If |
|
agencies, though, during that rulemaking process run into |
|
overwhelming opposition to a rule, a proposed rule, are they |
|
bound to reform the rule to accommodate those comments, or can |
|
they simply proceed forward in the manner that they would like? |
|
Ms. Hammond. The requirement is that they respond to |
|
significant comments raised, and very frequently, agencies do |
|
adjust their final rules as compared to their proposed rules |
|
based on the comments that they receive. |
|
Mr. Moran. I know that's the answer, but the true answer to |
|
my question is they don't have to. They can simply ignore the |
|
comments from the public. They can simply move forward with the |
|
rule that they would like to put in place, and they do not have |
|
to respond, to react. They're not accountable to the people of |
|
this Nation. We, the elected officials, are accountable to the |
|
people in this Nation. We are entrusted with decisionmaking |
|
when it comes lawmaking. They are not. That is the point that I |
|
want to make with that question. |
|
To overturn a rule to put in place--that has been put in |
|
place, let's talk about that for a moment as well, because |
|
under the Congressional Review Act, which one of my colleagues |
|
mentioned, is the method by which we can do that. It's not just |
|
the House that can do that on its own, but instead we have to |
|
pass a resolution to disapprove the rule, then we have to send |
|
it to the Senate, they have to disapprove the rule, and then it |
|
goes to the President, and he must sign that joint resolution |
|
from Congress to undo that rule. Isn't that correct, Professor |
|
Hammond? |
|
Ms. Hammond. I believe the rule does not go into effect |
|
without that, so it indeed undoes the rule. |
|
Mr. Moran. Without that process happening, effectively, a |
|
veto that must require disapproval by the House and the Senate |
|
and then to the President who oversees and ostensibly is |
|
directing the very rulemaking that we're trying to overrule, we |
|
can't prevent it from going into place. Isn't that true? |
|
Ms. Hammond. Are you speaking about the REINS Act as |
|
proposed, or are you speaking about the Congressional Review |
|
Act? |
|
Mr. Moran. Congressional Review Act. |
|
Ms. Hammond. Yes, it is in place. |
|
Mr. Moran. Yes. The point I'm trying to make here is, |
|
effectively, we can't undo what an administrative agency is |
|
actually going to put in place unless we get through that whole |
|
process. It's nearly impossible because it turns on its head |
|
the lawmaking responsibility of Congress, because instead of us |
|
having some almost impossible veto power over an agency, we |
|
should be, in fact, be in the primary place to put those rules |
|
in place to begin with or to enact those laws. |
|
I want to go back to Ms. Ho. I have just a minute. If we |
|
work to eliminate the Chevron standard, I want you to speak |
|
more to what you believe should be the replacement standard |
|
there. |
|
Ms. Ho. Certainly, I think the replacement is the |
|
foundational principle of the judiciary, and that is, it is the |
|
province of the judiciary to say what the law is. So, I think |
|
that would be a return to the bedrock principle and the proper |
|
putting the judiciary as well in its proper sphere of operation |
|
in our system of separation of power and checks and balances. |
|
Mr. Moran. Thank you. |
|
It seems so simple, doesn't it, separation of powers. It's |
|
not a complex concept, but over time, again, I think both |
|
parties have eroded that, and unfortunately, we're having to |
|
deal with that today. |
|
Mr. Wolfson, noncompete clauses, just with 15 seconds, are |
|
an integral part, in my opinion, to protecting confidential and |
|
proprietary information for businesses generating innovation |
|
and investment. Do you agree with that? |
|
Mr. Wolfson. I think there are places where noncompete |
|
clauses make a lot of sense. There are probably other places |
|
that they don't make a lot of sense. For example, there's some |
|
examples of fast food restaurants that may require line workers |
|
to have a noncompete. I think that there is a great policy |
|
discussion that we should be having about this, but the place |
|
to have those kinds of policy discussions is in the halls of |
|
Congress, or more appropriately actually is in the halls of the |
|
individual legislators of the States who can evaluate in their |
|
particular States are noncompete clauses being used |
|
appropriately or not. |
|
Mr. Moran. I completely agree. I yield back. Thank you. |
|
Mr. Massie. The gentleman yields back. |
|
I now recognize myself for five minutes. We've had a great |
|
discussion today about the structure and nature of our republic |
|
and actually how far we've wandered afield from our original |
|
Founders' intent of having separation of powers. So much power |
|
has been concentrated within the Executive that actually the |
|
lobbyists have gone there now. I don't see many lobbyists here |
|
today very concerned about what we're doing. They're all over |
|
at the Executive Branch and at the administration. |
|
In fact, under the Obama White House, Google was |
|
coresident. They hired high-level Google people to run the |
|
patent board, to sit inside the White House. So, I reject this |
|
notion that somehow the Executive Branch is immune to lobbying. |
|
We've been at a very high level for the most part today, and |
|
that's what's made this a really good hearing. We've talked |
|
about the structure and nature of government. |
|
Mr. Cleckner, I want you to boil this down to the specific |
|
example of a recent rule on the pistol brace and what that |
|
means, how many people it's going to affect, are these civil |
|
infractions or criminal infractions? Can you tell us about the |
|
pistol brace rule when it goes into effect and what the |
|
consequences are of letting an agency write law. |
|
Mr. Cleckner. Thank you, Mr. Chair. |
|
I've heard plenty today about profits over people, and I |
|
think we're putting regulations over people. I don't think |
|
we're keeping people safe with more regulations. In fact, I |
|
think regulations and rules like the pistol brace one is |
|
actually making it more dangerous. |
|
On one hand, I love the maxim that every bit of gun control |
|
is a claim that gun control doesn't work because they want more |
|
gun laws. On the other hand, I see all these regulations are |
|
making felons out of otherwise law-abiding citizens. So, you |
|
asked how many; the Congressional Research Service estimates |
|
between 10-40 millions of these are out there. Most of these |
|
Americans do not know that this rule is happening, and even the |
|
Americans that do know the rule is happening cannot interpret |
|
it because the ATF is using vague, ambiguous language with |
|
weights similar to this, with a surface area suitable for that. |
|
The citizens cannot make these determinations on their own. |
|
We're talking about a piece of plastic that was previously |
|
approved by the ATF that people bought maybe even unknowingly, |
|
it might have come on the firearm already, and they're going to |
|
be made into felons. This is 18 U.S.C. law that ATF is trying |
|
to redefine and trying to rewrite. Serious crimes, confusing |
|
regulations, going back and forth, I don't see how that's |
|
helping anybody. |
|
Mr. Massie. When does this take effect? When was it |
|
announced? When does it take effect? Is the government |
|
undergoing an ad campaign on TV right now telling millions of |
|
people they're going to become felons in a few weeks? |
|
Mr. Cleckner. No, sir. It was technically published on the |
|
Federal Register, but they had 90 days-- |
|
Mr. Massie. Oh, I hit refresh on that page every day. |
|
Mr. Cleckner. Exactly right. This has changed. They |
|
approved these. Another thing we have with the guidance letters |
|
is they've been giving separate guidance to each manufacturer. |
|
They're not even giving consistent guidance to the industry on |
|
what they're allowed to do. So, it's conflicting information. |
|
That was 2012. A few years later, you couldn't shoulder them, a |
|
couple years later, you could. It changes so much, I don't know |
|
how someone is going to be able to keep up with what's going |
|
on. |
|
Mr. Massie. The people who are going to become felons by |
|
virtue of an agency making law because there's a different |
|
President who hates guns, they weren't they assuming and |
|
weren't the manufacturers assuming--why did they assume it was |
|
legal to do what they were doing until this rule went into |
|
effect? |
|
Mr. Cleckner. They were specifically told by the ATF that |
|
it was legal and that they could proceed. Matter of fact, most |
|
of these manufacturers have their version of the letter from |
|
the ATF on their website that said, these are legal. See, the |
|
ATF said it. Some of them even include a copy in the product in |
|
the boxes. |
|
So, all these Americans relied upon the ATF telling them it |
|
was good to go, and now they might not even know that it's not, |
|
and they're risking being a felon, which takes away their right |
|
to have any firearm once they're a felon. |
|
Mr. Massie. It seems like our Founders were really wise to |
|
put the legislative function in this Chamber and in the Senate, |
|
because we're up for reelection so frequently. Also, I have |
|
constituents--we haven't said today--nobody said today there |
|
should be no regulations. My constituents say, just don't |
|
change them on me. Let me know what the rules are. |
|
Our Founders said--the way they set it up required four |
|
concurrent majorities for a law to change. Think about how |
|
intelligent that is. The House had to agree, a House majority, |
|
a Senate majority had to agree, and a majority of the electoral |
|
college had to agree for a President to sign that bill, and |
|
then it had to pass the Supreme Court. |
|
How many majorities are required to approve of a bureaucrat |
|
changing a law or a rule? As Mr. Moran pointed out, they're not |
|
subject to anybody's approval, any voter's approval. Now, you |
|
might say the Supreme Court. OK, the Supreme Court has to |
|
approve the regulation. As Ms. Ho and Mr. Wolfson has pointed |
|
out, with Chevron deference even that majority doesn't have to |
|
agree because we'll just defer to the regulators on this. So, I |
|
think we need to get back to our Founders' intent and put the |
|
lawmaking authority back in this body. |
|
With that, seeing no other Members, that concludes today's |
|
hearing. We thank the witnesses for appearing before the |
|
Committee today. We know this takes a lot of time to fly here, |
|
to prepare for this, and to put yourself through this. So, we |
|
appreciate all of you very much for being here and helping us |
|
come to an answer, because the answer should come from |
|
Congress--it should--on who makes the laws. I hope we all |
|
agree, we should be making the law. |
|
Without objection, all Members will have five legislative |
|
days to submit additional questions for the witnesses or |
|
additional materials for the record, so you could end up with |
|
homework as well. |
|
Without objection, the hearing is adjourned. |
|
[Whereupon, at 11:19 a.m., the Subcommittee was adjourned.] |
|
|
|
All materials submitted for the record by Members of the |
|
Subcommittee on the Administrative State, Regulatory Reform, |
|
and Antitrust can be found at: https://docs.house.gov/ |
|
Committee/Calendar/ByEvent.aspx?EventID=115456. |
|
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