Congressional Review Act
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The Application of the Congressional Review Act to Recent Trump Administration Rulemakings
The Application of the Congressional Review Act to Recent Trump Administration Rulemakings Last updated January 29, 2021 Congress can fast-track reversal of rulemakings from the Trump Administration under the Congressional Review Act. However, only certain rules are eligible for this process, and Congress has a narrow window to use it. Moreover, the Congressional Review Act includes a prohibition on the promulgation of rules that are substantially similar to those that are overturned through the Congressional Review Act process. Therefore, whether to deploy the Congressional Review Act in any individual case calls for careful consideration. History of the CRA The Congressional Review Act (CRA) was enacted in 1996 as a component of the Small Business Regulatory Enforcement Fairness Act. Under the CRA, agencies are required to submit to Congress and the Government Accountability Office (GAO) notice of a finalized rule. Once notified, Congress has the option of passing a joint resolution of disapproval (JROD) to overturn the rule. If the JROD passes both chambers of Congress and is signed into law by the President, the rule is immediately overturned and has no effect both proactively and retroactively. Importantly, the JROD need only pass by a simple majority in both chambers. Since its enactment, the CRA has been used by Congress to overturn 17 rules total: one in 2001 (107th Congress) and 16 in 2017 (115th Congress). In the 107th Congress (under Republican control and with President George W. Bush in office), the CRA was used to reverse a Clinton Administration rule issued by the Occupational Safety and Health Administration (OSHA) to implement ergonomic standards to reduce workplace injuries. -
Why Congress Should Repeal the Congressional Review Act
April 2020 Why Congress Should Repeal the Congressional Review Act By Kevin Chen, JD 2020 I. Introduction The Congressional Review Act (CRA) provides expedited congressional procedures for reviewing and repealing certain agency rules. Under the CRA, Congress may pass a joint resolution of disapproval by a simple majority in both Houses. If the President signs the resolution into law, the rule cannot take effect or continue in effect, and the agency may not reissue a rule that is “substantially the same” as the disapproved rule. A little-used statute during its first two decades of existence, the CRA has experienced both revival and transformation during the Trump Administration. The CRA’s usage exploded after January 2017, as the total number of joint resolutions signed under the CRA rose from one to seventeen within a little over a year. Further, Congress and President Trump have used the CRA in novel and previously unanticipated ways, expanding the CRA’s reach to years-old informal guidance documents. Given these developments, how should a Democratic Congress treat the CRA after President Trump leaves office? Congress originally passed the CRA through a bipartisan effort to increase congressional oversight of executive agencies, arguably promoting democratic values by in effect returning some rulemaking authority to elected officials. Ultimately, however, the CRA has emerged as a threat to sound administrative governance by expert agencies and should be repealed for five principal reasons. First, the CRA is a hazard to future regulation. The meaning of the phrase “substantially the same” remains ambiguous, as neither the CRA’s text nor its legislative history provides clear guidance on the matter, and the phrase has never been tested in court. -
Background on the Congressional Review
MEMORANDUM November 17, 2016 Subject: “Major” Obama Administration Rules Potentially Eligible to be Overturned under the Congressional Review Act in the 115th Congress From: Maeve P. Carey, Specialist in Government Organization and Management (7-7775) Christopher M. Davis, Analyst on Congress and the Legislative Process (7-0656) Casey Burgat, Research Assistant (7-7109) This memorandum was prepared to enable distribution to more than one congressional office. This memorandum lists “major” rules issued by federal agencies under the Obama Administration that are potentially subject to consideration under the procedures of the Congressional Review Act (CRA) in the 115th Congress. Background on the Congressional Review Act The CRA is a tool that Congress may use to overturn a rule issued by a federal agency, including, in some cases, rules issued in a previous session of Congress and by a previous President.1 The CRA requires agencies to report on their rulemaking activities to Congress and provides Congress with a special set of procedures under which to consider legislation to overturn those rules. The CRA, which was enacted in 1996, was largely intended to assert control over agency rulemaking by establishing a special set of expedited or “fast track” legislative procedures for this purpose, primarily in the Senate.2 Of the approximately 72,000 final rules that have been submitted to Congress since the legislation was enacted in 1996, the CRA has been used to disapprove one rule: the Occupational Safety and Health Administration’s November 2000 final rule on ergonomics, which was overturned using the CRA in March 2001.3 The primary reason the CRA has overturned one rule in the 20 years since its enactment is that under most circumstances, it is likely that a President would veto such a resolution in order to protect rules developed under his own administration, and it may also be difficult for Congress to muster the two- thirds vote in both houses needed to overturn the veto. -
Chapter 57 Veto of Bills
Chapter 57 Veto of Bills § 1. In General; Veto Messages § 2. House Action on Vetoed Bills § 3. — Consideration as Privileged § 4. — Motions in Order § 5. — Debate § 6. — Voting; Disposition of Bill § 7. Pocket Vetoes § 8. Line Item Veto Authority Research References U.S. Const. art. I § 7 4 Hinds §§ 3520–3552 7 Cannon §§ 1094–1115 Deschler Ch 24 §§ 17–23 Manual §§ 104, 107–109, 112–114, 1130(6B) § 1. In General; Veto Messages Generally The authority for the President to disapprove, or veto, a bill is spelled out in article I, section 7 of the Constitution. The same clause addresses the process by which the Congress can override a veto and enact a measure into law. The President has a 10-day period in which to approve or disapprove a bill. He can sign the bill into law or he can return it to the House of its origination with a veto message detailing why he chooses not to sign. If he fails to give his approval by affixing his signature during that period, the bill will become law automatically, without his signature. However, in very limited circumstances the President may, by withholding his signature, effect a ‘‘pocket veto.’’ If before the end of a 10-day signing period the Congress adjourns sine die and thereby prevents the return of the bill, the bill does not become law if the President has taken no action regarding it. At this stage, the bill can become a law only if the President signs it. Deschler Ch 24 § 17. For a discussion of pocket vetoes, see § 7, infra. -
Congressional Record—Senate S1649
March 10, 2020 CONGRESSIONAL RECORD — SENATE S1649 The PRESIDING OFFICER. Without I yield the floor. that misrepresentation. What this objection, it is so ordered. The PRESIDING OFFICER (Mr. meant is, if you went to a school that Mrs. MURRAY. Madam President, CRAMER). The Senator from Tennessee. had misled students, your loan could be later today the Senate will be taking Mr. ALEXANDER. Mr. President, if forgiven even if you had a job making up the borrower defense CRA vote and your car is a lemon, you don’t sue the $85,000 a year. likely voting on it tomorrow. Each and bank; you sue the dealer. A college can Under the Trump administration, every Senator will have a choice. They be a lemon, just like a car can be. A each student needs to file a claim, can side with working students, or college could promise a potential stu- prove that they were defrauded and they can side with predatory, for-profit dent a job and then tell them that 50 that they were financially harmed, and colleges. It should not be a hard choice, percent of their students scored per- then their loan would be forgiven by and that choice certainly should not be fectly on their SAT tests. The poten- the taxpayer. Remember, the bank is partisan. tial student might use that informa- the taxpayer. Students who were cheated and de- tion to take out student loans and en- Secretary DeVos’s borrower defense frauded by predatory, for-profit col- roll in a college. Then, if the informa- rule restores the original intent of the leges are often left with crushing debt tion turns out to be false, the student law that a borrower must be misled and no path forward. -
GAO to Toomey: CFPB Failed to Comply with Law on Indirect Auto Lending Regulatio
GAO to Toomey: CFPB Failed to Comply with Law on Indirect Auto Lending Regulatio... Page 1 of 2 GAO to Toomey: CFPB Failed to Comply with Law on Indirect Auto Lending Regulation December 5, 2017 Washington, D.C. - In a review requested by U.S. Senator Pat Toomey (R-Pa.), the Government Accountability Office (GAO) today confirmed that the Consumer Financial Protection Bureau (CFPB) violated the Congressional Review Act when it issued a ‘bulletin' regulating third-party auto lenders in 2013. In this instance, GAO found CFPB did not submit its ‘bulletin,' which was subsequently used to impose millions of dollars in fines on auto lenders, to Congress as required by the Congressional Review Act. Sen. Toomey's statement: "GAO's decision makes clear that the CFPB's back-door effort to regulate auto loans, which was based on a dubious legal justification, did not comply with the Congressional Review Act. GAO's decision is an important reminder that agencies have a responsibility to live up to their obligations under the law. When they don't, Congress should hold them accountable. I intend to do everything in my power to repeal this ill-conceived rule using the Congressional Review Act." Background While the Dodd-Frank Act of 2010, which created the CFPB, prohibited the Bureau from regulating auto dealerships, the CFPB issued a guidance document, or ‘bulletin,' in March 2013 that imposed restrictions on third-party lenders whose loans are made available to car buyers at a dealership. GAO's decision that the "Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act" bulletin is, in fact, a rule may now give Congress the option to overturn the bulletin via a simple majority vote of both chambers of Congress under the Congressional Review Act. -
The Congressional Review Act: Determining Which “Rules” Must Be Submitted to Congress
The Congressional Review Act: Determining Which “Rules” Must Be Submitted to Congress Updated March 6, 2019 Congressional Research Service https://crsreports.congress.gov R45248 The Congressional Review Act: Which “Rules” Must Be Submitted to Congress Summary The Congressional Review Act (CRA) allows Congress to review certain types of federal agency actions that fall under the statutory category of “rules.” The CRA requires that agencies report their rules to Congress and provides special procedures under which Congress can consider legislation to overturn those rules. A joint resolution of disapproval will become effective once both houses of Congress pass a joint resolution and it is signed by the President, or if Congress overrides the President’s veto. The CRA generally adopts a broad definition of the word “rule” from the Administrative Procedure Act (APA), defining a rule as “the whole or a part of an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of an agency.” The CRA, however, provides three exceptions to this broad definition: any rule of particular applicability, including a rule that approves or prescribes for the future rates, wages, prices, services, or allowances therefor, corporate or financial structures, reorganizations, mergers, or acquisitions thereof, or accounting practices or disclosures bearing on any of the foregoing; any rule relating to agency management or personnel; or any rule of agency organization, procedure, or practice that does not substantially affect the rights or obligations of non-agency parties. The class of rules the CRA covers is broader than the category of rules that are subject to the APA’s notice-and-comment requirements. -
The Congressional Veto: Preserving the Constitutional Framework
Indiana Law Journal Volume 52 Issue 2 Article 5 Winter 1977 The Congressional Veto: Preserving the Constitutional Framework Arthur S. Miller George Washington University George M. Knapp George Washington University Follow this and additional works at: https://www.repository.law.indiana.edu/ilj Part of the Constitutional Law Commons, Courts Commons, Legislation Commons, and the President/ Executive Department Commons Recommended Citation Miller, Arthur S. and Knapp, George M. (1977) "The Congressional Veto: Preserving the Constitutional Framework," Indiana Law Journal: Vol. 52 : Iss. 2 , Article 5. Available at: https://www.repository.law.indiana.edu/ilj/vol52/iss2/5 This Symposium is brought to you for free and open access by the Law School Journals at Digital Repository @ Maurer Law. It has been accepted for inclusion in Indiana Law Journal by an authorized editor of Digital Repository @ Maurer Law. For more information, please contact [email protected]. The Congressional Veto: Preserving the Constitutional Framework ARTHUR S. MILLER* & GEORGE M. KNAPP** The men who met in Philadelphia in the summer of 1787 were practical statesmen, experienced in politics, who viewed the principle of separation of powers as a vital check against tyranny. But they likewise saw that a hermetic sealing off of the three branches of government would preclude the establishment of a Nation capable of governing itself effectively., INTRODUCTION This article analyzes a recent important development in the division of powers between Congress and the Executive. It is more speculative than exhaustive. The aim is to provide a different perspective on a basic constitutional concept. It is assumed that the "practical statesmen" who wrote the Constitution must have sought to establish a system of government which encouraged interbranch cooperation and abhorred unnecessary conflict. -
() Office of the Comptroller of the Currency
() Office of the Comptroller of the Currency Washington, DC 20219 April 14, 2021 The Honorable Sherrod Brown. Chairman Committee on Banking, Housing, and Urban Affairs United States Senate Washington, D.C. 20510 The Honorable Pat Toomey. Ranking Member Committee on Banking. Housing, and Urban Affairs United States Senate Washington, D.C. 20510 Dear Chairman Brown and Ranking Member Toomey: On March 25, 2021, S.J. Res. 15 was introduced, providing for Congressional disapproval under the Congressional Review Act of the Office of the Comptroller of the Currency’s (0CC) final rule, entitled “National Banks and Federal Savings Associations as Lenders,” commonly referred to as the “True Lender” rule. As you and other members consider the resolution, I want you to be aware of the rule’s intended effect and the adverse impact of overturning the rule. On October 27, 2020, the 0CC issued its final true lender rule’ to provide legal and regulatory certainty to national banks’ and federal savings associations’ (banks) lending, including loans made in partnerships with third parties.2 The OCC’s rule specifies that a bank makes a loan and is considered to be the true lender of the loan if. as of the date of origination, it (1) is named as the lender in the loan agreement or (2) funds the loan. The rule clarifies that as the true lender of a loan, the bank relains the compliance obligations associated with making the loan, even if the loan is later sold, thus negating concerns regarding hanthul rent-a-charter arrangements, Our rulemaking prevents potential arrangements in which a bank receives a fee to “rent” its charter and unique legal status to a third party with the intent of evading state and local laws, while disclaiming any compliance responsibility for the loan. -
The 2020 Volcker Rule Amendments and the Congressional Review Act – Is Time on Our Side?
Alternative Investments Practice Client Alert The 2020 Volcker Rule Amendments and the Congressional Review Act – Is Time on Our Side? September 15, 2020 Contact Catherine Leef Martin, Partner Sean M. Solis, Partner Mitch Cooper, Associate +1 212.530.5189 +1 212.530.5898 +1 212.530.5533 [email protected] [email protected] [email protected] On October 1, 2020, significant changes to the covered fund provisions of the Volcker Rule (the “2020 Volcker Amendment”) are expected to go into effect. The changes, which add exclusions for several new categories of private funds (such as qualifying credit funds and venture capital funds) and ease requirements for certain existing exclusions (such as the loan securitization and foreign public fund exclusions), were issued in late June by the five federal agencies responsible for implementing the Volcker Rule (the “Agencies”). The 2020 Volcker Amendment was submitted by the Agencies to Congress during July and published in the Federal Register on July 31, 2020. These dates have significance, because they directly impact whether the amendment may be subject to reversal under the Congressional Review Act1 (the “CRA”), a 1996 statute that establishes a window in which Congress can reject new rules adopted by federal agencies. This Client Alert considers the time period during which the 2020 Volcker Amendment may be vulnerable to the CRA process and the potential consequences if the CRA is, in fact, invoked. CRA Basics After any federal agency rule or amendment is published, the CRA permits Congress to invalidate it by vote of a simple majority in both houses, subject to Presidential veto. -
The Legislative Veto: Is It Legislation?
Washington and Lee Law Review Volume 38 | Issue 1 Article 13 Winter 1-1-1981 The Legislative Veto: Is It Legislation? Follow this and additional works at: https://scholarlycommons.law.wlu.edu/wlulr Part of the Legislation Commons Recommended Citation The Legislative Veto: Is It Legislation?, 38 Wash. & Lee L. Rev. 172 (1981), https://scholarlycommons.law.wlu.edu/wlulr/vol38/iss1/13 This Note is brought to you for free and open access by the Washington and Lee Law Review at Washington & Lee University School of Law Scholarly Commons. It has been accepted for inclusion in Washington and Lee Law Review by an authorized editor of Washington & Lee University School of Law Scholarly Commons. For more information, please contact [email protected]. THE LEGISLATIVE VETO: IS IT LEGISLATION? The complexity of the law-making process and the need for legislative efficiency have compelled legislatures to delegate authority to administrative agencies and departments.1 The delegation of the legislative power has raised important constitutional issues.2 The United States Constitution divides the federal government into three branches.' Each branch has specific powers and responsibilities.' The doctrine of separation of powers demands that each branch carry out only those functions designated by the Constitution.' The delegation of the legislative authority to executive administrative agencies, therefore, may constitute a violation of the separation of powers doctrine.6 For the most part, however, the Supreme Court has sanctioned such delegation.' ' See Stone, The Twentieth Century AdministrativeExplosion and After, 52 CALIF. L. REV. 513, 518-19 (1964). Stone has expressed the belief that the growth of administrative law is a response to legislative shortfalls. -
The Constitutionality of Legislative Supermajority Requirements: a Defense
The Constitutionality of Legislative Supermajority Requirements: A Defense John 0. McGinnist and Michael B. Rappaporttt INTRODUCTION On the first day of the 104th Congress, the House of Representatives adopted a rule that requires a three-fifths majority of those voting to pass an increase in income tax rates.' This three-fifths rule had been publicized during the 1994 congressional elections as part of the House Republicans' Contract with America. In a recent Open Letter to Congressman Gingrich, seventeen well-known law professors assert that the rule is unconstitutional.3 They argue that requiring a legislative supermajority to enact bills conflicts with the intent of the Framers. They also contend that the rule conflicts with the Constitution's text, because they believe that the Constitution's specific supermajority requirements, such as the requirement for approval of treaties, indicate that simple majority voting is required for the passage of ordinary legislation.4 t Professor of Law, Benjamin N. Cardozo Law School. tt Professor of Law, University of San Diego School of Law. The authors would like to thank Larry Alexander, Akhil Amar, Carl Auerbach, Jay Bybee, David Gray Carlson, Lawrence Cunningham, Neal Devins, John Harrison, Michael Herz, Arthur Jacobson, Gary Lawson, Nelson Lund, Erela Katz Rappaport, Paul Shupack, Stewart Sterk, Eugene Volokh, and Fred Zacharias for their comments and assistance. 1. See RULES OF THE HOUSE OF REPRESENTATIVES, EFFECTIVE FOR ONE HUNDRED FOURTH CONGRESS (Jan. 4, 1995) [hereinafter RULES] (House Rule XXI(5)(c)); see also id. House Rule XXI(5)(d) (barring retroactive tax increases). 2. The rule publicized in the Contract with America was actually broader than the one the House enacted.