I thank the gentleman from Texas for recognizing me. I didn't plan to speak today. But I was in my office and I was listening to your explanation of this abhorrent and out of control administrative rules process, where people who are not…
I thank the gentleman from Texas for recognizing me.
I didn't plan to speak today. But I was in my office and I was listening to your explanation of this abhorrent and out of control administrative rules process, where people who are not elected and are not accountable make up the rules as they go along however they may want them to. We have had a number of cases that have injured my constituents, or at least caused them a lot of sleepless nights already.
As you may know, sir, earlier this year the Securities and Exchange Commission exposed their intent now to examine the entities that they regulate not just based on their conformance with securities law, but on their environmental stewardship. Now, these are the same people that couldn't put Bernard Madoff away when they were given an open and shut case 10 years before Madoff basically turned himself in. This is the same agency that hasn't disciplined anybody. Nobody's been reprimanded. Nobody's had their wrist slapped. Nobody's had a day off yet. They can't do the job they are supposed to do now, but they're going to start regulating companies for their environmental stewardship based upon rules that they promulgated. And you're correct that's the wrong thing to do.
Most recently, and near and dear to my heart because it affects so many people in my State, is the new rule the IRS has proposed to deal with banks and foreign deposits. You know, for over 90 years this country has encouraged foreign investors to put their money in our banks. It makes good sense. We have their money, we can loan it out, it creates jobs for Americans. It's a win-win situation. It's a win for them, it's a win for us.
Now, the IRS has decided that they're going to promulgate a rule that says the banks must notify the governments of every foreign depositor regarding how much money they have in our banks. Now, what's the benefit to the United States for that? There is no benefit to the United States. They don't owe taxes in the United States. What's the liability to the United States for that? The liability is that $200 billion to $400 billion will leave American banks and go back into foreign banks.
Now, can you imagine if you were unfortunate enough to be governed by Hugo Chavez, Ahmadinejad, or Castro what would happen if they found out that you had assets in the United States of America? You would not only lose your assets; you might lose your life. But more importantly, this wrong-headed rule would cause a dramatic de-stimulus effect on our economy when you look at a stimulus bill of $800 billion that basically didn't perform like it was supposed to.
It doesn't make much sense to write a rule that would take $200 billion to $400 billion, up to as much as 50 percent of what our stimulus bill was, out of our economy. The IRS tried to do this about 10 years ago. Over 100 Members of Congress stepped up and said this is a lousy idea, and it needs to be defeated. So my plea today, sir, is that we can have at least 100 Members of this Congress that will again stand up and say this was a bad idea 10 years ago, it's a bad idea now. Let's kill this rule and don't let it happen.
I thank the gentleman again. You know, many people, even elected people aren't really familiar with what exactly an administrative rule is. We talk about these administrative rules as rules, and people wonder what they are. I used to explain to people that in Florida, where I first got interested in the administrative rule process, all the laws on the books passed by their elected State officials were in four law books this big. They were shocked by that.
They said, well, what about the commercials where we see the attorney in front of all the books advertising for Dewey, Cheatem and Howe? What are all those? Aren't those our State's laws? Yeah, that's last year's edition and the edition before that, and the interpretations of them. But all those rules are in those four books. They are shocked at that.
They said, well, we thought there were a lot more laws than that. I would say, well, there are a lot more laws than that, but those are all the laws that were made by people you elect. The administrative rules are laws which are made by unelected people that you don't vote for. And usually, they could fill up half the room. They would probably fill out a quarter of this room. So that's what most people don't understand, the relatively few laws that are passed by people they elect, and the plethora of rules that are passed by people they don't elect.
I remember it's one of the reasons I ran for the State legislature. I had promised my wife when I got off the city council I'd never run for office again as long as I lived. She made me promise her. That changed, and one of the reasons was I was upset by the runaway proliferation of rules in that State, which seemed like they were making rules willy- nilly that were causing an inconvenience for every business and putting jobs in danger.
So I got elected and, Judge, you know, the first bill I passed made it a third-degree misdemeanor for a bureaucrat to promulgate a rule that wasn't authorized by statute. Of course, people thought I was crazy. A lot of the media made fun of me, and I was the brunt of a lot of jokes.
The Governor at the time had a hit squad go after that bill, and when I had it come up in committee they went around and met every member and said, Kill this bill. But it still got out of committee. So they referred it to six more committees, and we weren't able to advance that.
I struggled with trying to change the way the administrative laws are promulgated and come up with a system
for about 4 years, to no avail. Representative Simler, Representative Pruitt were doing the same thing, and it just seemed like we were getting nowhere. And then in the 4th year, the Governor that had previously seemed so disgruntled with my legislation gave his final State of the State address wearing one of these belts like they wear at Walmart or Home Depot or Lowe's so you don't hurt yourself, and he was holding all the rules that applied to a cook shack that he wanted to build on Chemonie Plantation. And he said, We have got to do something about this out-of-control rules process.
And he gave every member of the House and every State senator at the time a copy of a book by Philip Howard called, ``The Death of Common Sense.'' It is a great book that I implore people to read. It is very short and it is an easy read. It talks about how the rules process has worked to harm society.
You know, Mother Teresa at one time wanted to have a house for the homeless in New York City. She located the perfect spot, got the contractors ready, was ready to open the doors, but the building department said, No, you can't do that here. She said, Why? Because that building does not have enough restrooms. So we have to continue to let the people sleep on the sidewalks and use the street for a restroom because of the rigid, monolithic interpretation of the laws and the rules.
So, as a result, finally, of his personal experience, the Governor said, We need to change rules, the rules procedure, and we did. And you know, we changed the way rules are vetted. There's a joint administrative procedure committee which reviews every rule to make sure there's specific statutory authority to write that rule.
The new process wasn't in order very long before one of the State agencies determined that any land with a new type of fern or fauna on it should be considered a wetland and couldn't be used for any development. Fortunately, it impacted a very large landowner down there who challenged the rule through an investigative court, an administrative rule through an administrative judge. The administrative judge ruled in favor of the bureaucrats, saying the legislature could not possibly have meant exactly what they said. That was the crux of their 38-page decision.
So the next year we passed House Bill 107, which basically said we mean unequivocally exactly what we said, and from a rules perspective the State has lived happily ever after.
Now, Washington is more dysfunctional than I anticipated that it would be when I got here, and one of the worst dysfunctions is the administrative procedures or the administrative rules process here. It's shocking that it's a very old process built on a flimsy foundation. There have been numerous attempts to fix it. None of them have been really successful, and I think, as you and I have discussed before, we need to have total reform. We need to start with a clean sheet of paper, and we need to make the agencies accountable for the rules they write, and they need to be specifically statutorily authorized to do those things.
And so I hope that our colleagues will join with us as we move forward trying to seek an accountability and an efficiency in our government that is greatly lacking right now but is within our grasp.