Obama opens the door to more state regulation of business
Filed under: Economy
Under a policy of "preemption," the Bush administration sharply curtailed the rights of states to enforce stricter laws involving environment, health, mortgages, public safety and other issues. President Obama made clear this week he intends to reverse that policy, ordering federal agency heads to review existing regulations and change most of those that preempt state laws. He told the agencies that federal regulation should be used to preempt state law "only with full consideration of the legitimate prerogatives of the states and with a sufficient legal basis for preemption."
The Supreme Court made it clear the court did not agree with Bush's position on state's rights in Wyeth v. Levine. In a six to three vote, the court ruled in favor of a woman who lost her arm after an improper injection of an anti-nausea medication. The court said drugmakers could not rely solely on federal regulation to shield them from lawsuits brought under state consumer-protection laws.
Doug Kendall, president of the Constitutional Accountability Center, told The Washington Post, "It's environmental law, it's drug law, it's mortgage law, it's a whole host of areas where the Bush administration was really aggressive about using regulatory action to clear state and local laws that businesses and corporations didn't like."
The Chamber of Commerce, of course, blasted the move. Lisa Rickard, president of the U.S. Chamber of Commerce's Institute for Legal Reform told the Post, "Removing federal preemption forces employers to navigate a confusing, often contradictory patchwork quilt of 50 sets of laws and regulations."
But Obama made it clear he wants to protect the rights of states. In issuing his memorandum on preemption, Kenneth Baer, a spokesman for the Office of Management and Budget, said, "This memorandum brings clarity and orderliness back to this rule-making process and also ensures that preemption will be done only in cases where it's legally justifiable."
The change won't come quickly. It takes months to create or change a regulation. But you can find out what is being changed and even comment on the change at Regulations.gov. Here's the basic process for changing a federal regulation:
- Federal agencies must publish notices of proposed rulemaking in the Federal Register so citizens can participate in the decision making process of the government. The publication notifies the public of a pending regulation change.
- Any person or organization may comment on the regulation change directly, either in writing, or orally at a hearing. Many agencies also accept comments online or via e-mail. The comment period varies, but it usually is 30, 60, or 90 days. For each notice, the Federal Register gives detailed instructions on how, when, and where a viewpoint may be expressed. In addition, agencies must list the name and telephone number of a person to contact for further information.
- When agencies publish final regulations in the Federal Register, they must address the significant issues raised in comments and discuss any changes made in response to them. Agencies also may use the notice and comment process to stay in contact with constituents and to solicit their views on various policy and program issues.
In most cases if a regulatory change becomes controversial, you'll hear about in in news stories or from an association or organization to which you belong. For example, a major change in health regulations would probably get noticed by the pharmaceutical companies or health advocacy groups. These groups would be sure that the word gets out to more than just the usual audience for the Federal Register.
Obama's promise to reverse preemption will probably take up most of his first administration, since there are well over 100,000 pages of regulations on the books according to the Federal Register.
Lita Epstein has written 25 books, including Reading Financial Reports for Dummies and the Complete Idiot's Guide to the Federal Reserve.



























Reader Comments (Page 1 of 1)
6-01-2009 @ 7:18PM
Danny said...
Here we go with more feel good laws to safeguard America that will actually accomplish zero and protect nothing. Investments come in many varieties and can be very complicated when compared to real estate.
Now in Florida, developers & butterfly enthusiasts/bible thumpers sell Lake Front home-sites that are ACTUALLY Jurisdictional Wetlands owned and controlled by the State of Florida by virtue of sovereignty, and you cannot step foot on the land legally, cut a blade of grass. And building a home, PLEASE dream on! And they market this garbage as the Edith Ellen Estates Subdivision!
Then go around STEALING half paralyzed 83-year old lady’s money who are in wheelchairs!!! How low can you get. (Insert proper vocabulary here #$%&&*!!!)
HUD investigates and going to throw the book at them, but partner in crime from Ex-Enron Fame have their pencil wiener attorney make a deal. NUMEROUS VIOLATIONS OF STATE & FEDERAL LAW demand PRISON, but since the con-artists come from a wealthy pedigree they are above the law when the right palm is GREASED.
The Federal goevernment not only failed to uncover anything, they DO NOT DO ENFORCE ANYTHING EITHER. You really think more laws will make a difference.
The EVEN BIGGER SCAM IS Chief District Judge and the developers share the same family so after they rip people off, anyone speaking out gets SUED for SLANDER. Can you all spell CORRUPTION, COLLUSION, CONSPIRACY, FRAUD, Violation of 14th Amendment-DUE PROCESS, and RACKETEERING.
Postal Inspector AND FL. Dept. of Law Enforcement attempted to arrest them, but the Chief Judge wouldn’t allow prosecutors to sign the indictment. REGULATION is all an illusion!
With the Fox Guarding the Hen house it’s ALL ABOUT THE MONEY, PERIOD!!!
ENFORCE THE LAWS WE ALREADY HAVE BEFORE INVENTING ANY NEW ONES.
Seeking qualified LEGAL REPRESENTATION, seven figure-case. See HOW TO WIN ANY LAWSUIT secrets revealed on ebay for contact information.
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