Q. What is the REINS Act?

A. The Regulations from the Executive In Need of Scrutiny, or REINS, Act would require Congress to give final approval to major, new federal regulations before those regulations can take effect. The new bill responds to concerns of the growing regulatory burden and the negative impact it can have on job creation. The uncertainty of future regulations and the threat of tax increases make it difficult for employers to commit to creating new jobs. It was introduced by Senator Jim DeMint of South Carolina and I am an original cosponsor. Companion legislation was introduced in the House of Representatives by Representative Geoff Davis of Kentucky.

Q. How would Congress determine which regulations are “major?”

A. The REINS Act defines a major regulation as one that the Office of Information and Regulatory Affairs, which is within the Office of Management and Budget, determines may result in an annual effect on the economy of $100 million or more, a major increase in costs or prices for consumers, or significant adverse effects on the economy. Under the REINS Act, such rules would need to be approved by a joint resolution passed by both the Senate and the House of Representatives and signed by the President before they can take effect.

Q. Why is this bill necessary?

A. The Constitution vests all legislative power in the Congress yet, year after year, Congress passes legislation that delegates more power to the executive branch without really assessing the full impact of those laws and how that power is used. As a result, federal agencies are increasingly bypassing Congress and imposing new regulations that Congress never intended.

A recent report by the Small Business Administration’s Office of Advocacy said, “The annual cost of federal regulations in the United States increased to more than $1.75 trillion in 2008. Had every U.S. household paid an equal share of the federal regulatory burden, each would have owed $15,586 in 2008.”

For example, the Heritage Foundation estimates that the rules issued by the Environmental Protection Agency to regulate carbon dioxide alone could reach nearly $7 trillion in the next 20 years.

This bill takes a big step in the right direction to establish greater accountability for major regulations handed down from the executive branch. It restores some of the checks and balances that have eroded in our government.