August 30, 2024
In early July 2024, AICC signed on to a letter to President Joe Biden along with nearly 50 other organizations representing millions of businesses operating in every state and community across the United States, on behalf of the millions they employ in all sectors.
The purpose of the letter was to ask the Biden administration to pause all current rulemaking and not to allow any new rules to take effect until there is a thorough legal review of any agency’s constitutional and statutory authority to regulate in the way it proposes. This is a direct result of the U.S. Supreme Court’s recent decision in Loper Bright Enterprises et al. v. Raimondo, Secretary of Commerce, et al.
The court’s decision alters the legal landscape within which federal agencies operate. Prior to Loper Bright, agencies enjoyed broad judicial deference in what, how, and whom they regulated when the legality and scope of their authority was challenged. The court’s opinion in Loper Bright overruled what had come to be known as the Chevron deference, essentially finding current practice at odds with the instructions for courts’ review of agency actions under the Administrative Procedure Act. We will spare the reader the mundane language of the court’s opinion.
Essentially, the decision, as spelled out by Supreme Court Chief Justice John Roberts, “makes clear that agency interpretation of statutes—like agency interpretations of the Constitution—are not entitled to deference.” In other words, only the courts can decide legal questions. Previously, the deference went to the involved federal agency.
This is a big deal for independents, even if you feel far removed from the goings-on in Washington, D.C. This decision impacts all current and future regulations being pursued by the administration. As of July 1, 2024, over 1,000 major rules are in various stages of review by federal agencies. Just 145 of those rules would have an impact on the U.S. economy of more than $200 million.
Your Association understands the need for federal regulation. Along with the other signing organizations, our hope is that the regulatory process, with this court decision, will become less arbitrary, capricious, and costly. Manufacturing is interconnected to so many other business functions that regulation in a seemingly remote corner of the economy can have far-reaching consequences—and costs.
We believe the Supreme Court’s ruling will bring greater order to the regulatory functions of the government going forward.
Eric Elgin is owner of Oklahoma Interpak and chairman of AICC’s Government Affairs subcommittee. He can be reached at 918-687-1681 or eric@okinterpak.com.
