Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, agency guidance serves an important function in the Federal regulatory system. Agency guidance helps regulated parties and the public understand how agencies will…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, agency guidance serves an important function in the Federal regulatory system.
Agency guidance helps regulated parties and the public understand how agencies will interpret the laws and administer their programs.
However, agency guidance can be--and has been--abused.
For example, agencies can use guidance documents to intimidate small businesses and individuals into compliance with agency views, sometimes under the threat of enforcement action.
Small businesses and ordinary individuals often do not have the legal resources or necessary background to understand when an agency statement is binding law.
It can be difficult for them to determine what agency statements must be complied with versus what is merely a nonbinding description of an agency's views on which they can push back.
Agencies have been known to try to start enforcement actions based on mere guidance.
Agencies also have been known to attempt to issue binding rules by quietly slipping what they intend to be rules in guidance documents.
This clearly bypasses the Administrative Procedure Act's requirements that were put in place to protect regulated individuals and small businesses.
The courts coined the term ``nonrule rule'' to describe this Big Government sleight of hand.
And the courts have rightly struck down such rules that only appeared in agency guidance.
The Guidance Clarity Act offers a simple solution to these problems.
It requires agency guidance documents to include the following explicit statement: ``The contents of this document do not have the force and effect of law and do not, of themselves, bind the public or the agency.
``This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.''
With that stroke of the pen, gone will be the days in which agencies can use guidance documents to force small businesses and individuals to comply with nonbinding agency views.
Gone, too, will be the days of agencies trying to issue nonrule rules that bypass the Administrative Procedure Act's requirement for legislative rules.
I thank the sponsor of the bill, the ranking member of the Small Business Committee, Blaine Luetkemeyer, who has worked tirelessly on this bill since it was first introduced.
I thank Chairwoman Maloney for her speedy efforts to help make passage of this bill a bipartisan success.
And I also thank Senator James Lankford and Senate Homeland Security and Governmental Affairs Chairman Gary Peters for their critical efforts to achieve a bipartisan compromise on this legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 5 minutes to the gentleman from Missouri (Mr. Luetkemeyer).
Mr. Speaker, thanks to the Guidance Clarity Act, small business owners and individuals across the country will soon have confidence that agency guidance, however helpful and clarifying it may be, is not legally binding.
Mr. Speaker, I urge my colleagues to support this necessary bipartisan legislation, and I yield back the balance of my time.