New England Biz Law Update
In the wake of the U.S. Supreme Court’s June decision overturning the Chevron deference doctrine, senators have introduced a bill that would codify the doctrine, which required federal courts to give deference to agencies’ reasonable interpretation of unclear statutes.
The measure, called the Stop Corporate Capture Act (SCCA), was jointly introduced by a group of senators led by Sen. Elizabeth Warren (D-Mass.).
Chevron acknowledged that courts should give deference to agency experts to write rules and regulations to implement laws passed by Congress. The bill’s proponents said that the Supreme Court’s overturning of Chevron undermines the government’s ability to promote worker safety, ensure clean air and water, and protect consumers.
The Stop Corporate Capture Act codifies the Chevron doctrine and reforms the regulatory process to end corporations’ influence over the rulemaking process, prioritize scientific and public integrity, and reduce delays in implementation of laws, the senators said in a statement. The bill was originally introduced in the House of Representatives by Rep. Pramila Jayapal (D-Wash.) in 2021.
The Act would:
- Codify Chevron deference, allowing agencies to conduct rulemaking in line with their reasonable interpretation of their authorizing statutes.
- Streamline the White House’s review period for regulations, creating a 120-day time limit for review.
- Authorize agencies to reinstate rules that are rescinded by Congress through the Congressional Review Act.
- Reform agencies’ cost-benefit analysis to emphasize public benefits of a rule, including non-quantifiable benefits like promoting human dignity, securing child safety, and preventing discrimination.
The bill would also create an Office of the Public Advocate to help people participate more effectively in regulatory proceedings. It would give the public greater authority to hold agencies accountable for unreasonable delays in completing rules and strengthen agency procedures for notifying the public about pending rulemakings.
Agencies would be required to respond to petitions for rulemaking that contain 100,000 or more signatures. Further, all rulemaking participants would be required to disclose industry-funded research or other related conflicts of interest.
The measure would also establish financial penalties for corporate special interests that knowingly submit false information during the rulemaking process.
