H.R. 26: Regulations from the Executive in Need of Scrutiny Act of 2017

H.R. 26 amends the Congressional Review Act (CRA) to require congressional approval of major agency regulations before those regulations can go into effect.

Specifically, the bill requires Congress to pass, and the President to sign, a joint resolution approving a new major regulation issued by a regulatory agency before the regulation may take effect, instead of requiring Congress to disapprove of such regulations. Major regulations are those that produce $100 million or more in impacts on the U.S. economy, spur major increases in costs or prices for consumers, or have certain other significant adverse effects on the economy.[1] For non-major rules, H.R. 26 continues the current process of allowing the rule to take effect unless Congress passes and the President signs a resolution of disapproval, or Congress overrides a presidential veto of such a disapproval resolution.

For all new regulations—both major and non-major—the promulgating agency must submit to Congress and the Comptroller General a report including a copy of the rule, a statement regarding the rule, its classification as major or non-major, other related regulatory actions intended to implement the same statutory provision or regulatory objective and their aggregate economic impact, and its proposed effective date.

On the date of that report’s submission, the promulgating agency also must provide other relevant material to Congress and the Comptroller General, including a cost-benefit analysis of the rule. For major rules, the Comptroller General must, within 15 calendar days of receiving the initial report, provide to the congressional committees of jurisdiction a report assessing the agency’s compliance with procedural steps required by the bill and whether the rule imposes any new limits or mandates on the private sector.

For major regulations, H.R. 26 establishes specific time constraints within which a joint resolution of approval must be introduced, considered by the relevant committees of jurisdiction, and brought before the full House and Senate for a vote. In general, H.R. 26 prevents major regulations from taking effect unless Congress passes and the President signs a joint resolution of approval within 70 legislative days of the initial report received by Congress. H.R. 26 limits the permissible content of a joint resolution of approval for a major regulation.

H.R. 26 also provides a presidential exception, allowing a major rule to take effect for one 90-calendar-day period if the President issues an executive order declaring that the rule is needed: because of an imminent threat to health or safety or other emergency; to enforce criminal laws; for national security; or to implement an international trade agreement.

When a non-major rule is promulgated, H.R. 26 provides that each congressional body has 60 legislative days to introduce a joint resolution of disapproval. H.R. 26 specifies the permissible content of the joint resolution of disapproval for a non-major regulation. Non-major rules take effect after the report is submitted to Congress, unless a joint resolution of disapproval is passed by each house of Congress and signed by the President, or Congress overrides a presidential veto of the disapproval resolution.

The bill defines “major rule” as one that results in or is likely to result in: an annual effect on the economy of $100 million or more; a major increase in costs or prices for consumers, individual industries, federal, State, or local government agencies, or geographic regions; or significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets.

The bill defines “non-major rule” as any rule that is not a major rule.

Source: Republican Policy Committee