Week in Review

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The Senate passes a major water resources bill, the House bars agencies from using social media to promote rulemakings, and more…

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  • The Regulatory Integrity Act—a bill that would bar agencies from using social media to engage in non-substantive promotion of rulemakings—passed the U.S. House of Representatives in a 250-171 vote along party lines, and President Obama has allegedly threatened to veto the bill if it reaches his desk. Representative Tim Walberg (R-Mich.), one of the bill’s sponsors, said the bill is intended to “increase transparency and help ensure that the American people’s voices are heard” in the rulemaking process, but House Democrats reportedly expressed concerns that the bill could chill public discourse by preventing agencies from discussing pending rules.
  • The U.S. Department of Housing and Urban Development (HUD) released a final rule under the Fair Housing Act to “formalize standards for use in investigations and adjudications involving allegations of harassment on the basis of race, color, religion” and other protected categories—a rule that details how the agency will respond to allegations of “quid pro quo”—or “this for that”—harassment and “hostile environment harassment,” including by providing definitions and illustrations.
  • The U.S. House of Representatives Judiciary Committee approved, by a vote of 15-5, the Midnight Rules Relief Act, a bill that would amend the Congressional Review Act—a law that currently gives Congress the opportunity to overturn a promulgated regulation by passing a resolution within 60 days of the regulation’s finalization—and allow Congress to, with one vote, overturn all regulations finalized within the final 60 days of the congressional session, a change which the bill’s Republican sponsors claim is necessary to prevent outgoing administrations from imposing major regulations “without the transparency and scrutiny expected in normal regulatory implementation,” although Democratic members of the committee reportedly expressed concerns that the legislation would result in Congress unnecessarily overturning good regulations along with those of real concern.
  • New York Governor Andrew Cuomo announced a “first-in-the-nation” proposed rule, issued by the state’s Department of Financial Services, that would place a number of new requirements on financial institutions—including developing a cybersecurity program and policy, designating a “Chief Information Security Officer,” and various precautions for dealing with third-party companies who have access to sensitive information. Governor Cuomo lauded the rule, which he said will help “guarantee the financial services industry upholds its obligation to protect consumers,” while some experts have reportedly predicted that the new measures “could cost [financial institutions] and insurers millions of dollars.”
  • The National Federation of Independent Business (NFIB), a trade group for small businesses, formally petitioned the Department of Labor (DOL) to delay the deadline for compliance with its overtime rule, referring to the deadline as “arbitrary,” with the organization’s president and CEO Juanita Duggan claiming that “many [small businesses] don’t have the resources, the personnel, or the time to meet the deadline.” The group is requesting that the DOL push the deadline back six months to June 1, 2017.


  • The U.S. Chamber of Commerce released a report assessing what it described as the “massive legislative and regulatory response” to the 2008 financial crisis, and concluded that while “some of the root causes of the crisis” have been addressed, “[t]he 1930s regulatory system remains in place with layers added to it” such that “[r]egulators were not provided with the tools to keep up with dynamic, evolving global capital markets.” To help the United States achieve a “modern financial regulatory system,” the report provided a list of focus areas for the next president—including the creation of a “Presidential Commission on Financial Regulatory Restructuring,” changes to the rulemaking process, and a host of other reforms.
  • In the final report of a three-part series entitled “Improving the Accountability of Federal Regulatory Agencies,” Professor Marcus Peacock of the George Washington University Regulatory Studies Center sought to determine why eight major U.S. government reform initiatives didn’t succeed in improving the accountability of federal agencies. Peacock found that the failures were largely due to a “lack of sustained leadership and unfaithful execution by agencies,” and identified three characteristics that could make future regulatory reform efforts more likely to succeed: “codification in law, creation of an independent organization to help execute the law, and establishing a framework for interagency competition.”