[ by Melanie Gretchen ]

Senators Susan Collins (R-Maine) and Rob Portman (R-Ohio) have their sights set on reining in the regulators.  The bill, introduced in the Senate last month, is up for debate this month and would empower the president in the rule-writing process.

Which Regulators Would Be Affected:

• SEC
• CFTC
• FCC
• FDIC

What the Bill Proposes

• Current and future White Houses would receive explicit authority to influence the rule-making process at independent agencies

• Regulators would be subject to an executive order, which would be allowed to mandate, at the minimum, a 13-point test for rule-making, including:
  • Finding "available alternatives to direct regulation"
  • Evaluating the "“costs and the benefits"
  • Drafting "each rule to be simple and easy to understand"
  • Periodically reviewing existing rules to make agencies "more effective or less burdensome"

• Independent agencies would have to submit their proposals to the Office of Information and Regulatory Affairs, an arm of the White House that acts as a regulatory referee;  a negative review would delay a rule for up to 3 months and force an agency to justify its approach

The bill met with mixed reception, which will next face Congressional approval.

Pro: "It doesn’t mean he can tell them how to decide, but it does mean they must consult with him – and that is the minimum required for the single executive the Constitution created." -- Peter Strauss, the former general counsel of the Nuclear Regulatory Commission.

Con: "Corporate interests will likely use negative White House reviews as a new weapon for challenging independent agencies in court.  The bill could lead to increased legislation and greater regulatory uncertainty." -- Amit Narange, a regulatory policy advocate at Public Citizen, a nonprofit government watchdog group.

For further details, go to [Dealbook, 9/10/12].