We have posted before about legislative attempts to limit the harmful effects of excessive federal regulation on product sellers. Readers know how those regulations can have an indirect but real impact on product liability litigation as well. The House passed two bills on this topic last week, and the White House indicated it would veto them if they passed the Senate.
The Regulatory Accountability Act (H.R. 3010) passed by a vote of 253 – 167. It would require an agency to consider any reasonable alternatives for a proposed rule, and the potential costs and benefits associated with such alternatives. The Regulatory Flexibility Improvements Act (H.R. 527) passed by a vote of 263 – 159. It would require agencies to conduct initial and final regulatory flexibility analyses to describe alternatives to a proposed rule that minimize any adverse significant economic impact or maximize the beneficial significant economic impact on small business entities.
Republican sponsors have argued that the bills would help prevent oppressive agency regulations and force federal agencies to choose the least costly alternative when developing new regulations. Federal regulations cost businesses more than $1.5 trillion each year, which has an obvious effect on job creation.