Overnight Regulation: House passes bill curbing agency powers | New GOP effort against financial adviser rule

Welcome to Overnight Regulation, your daily rundown of news from Capitol Hill, the federal agencies, and beyond. It's Tuesday evening here in Washington, where we were stuck in the Capitol building during the lockdown. http://bit.ly/29BYgqf

Here's the latest. 

 

THE BIG STORIES

A GOP-backed bill to limit federal agencies' rulemaking power passed the House on Tuesday.

The Separation of Powers Restoration Act overturns the 1984 Supreme Court decision that created Chevron deference. The legal precedent says courts must defer to agency interpretations of "ambiguous" statutes when disputes arise, unless the interpretation is unreasonable.

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The bill, which passed by a 240 to 171 vote, amends the Administrative Procedure Act to require courts to conduct a "de novo" review of all relevant questions of law instead of relying on agency interpretations.

Supporters have hailed it a way to reign in agency overreach.

While debating the bill on the floor Monday night, Rep. Bob GoodlatteRobert (Bob) William GoodlatteTop Republican releases full transcript of Bruce Ohr interview It’s time for Congress to pass an anti-cruelty statute DOJ opinion will help protect kids from dangers of online gambling MORE (R-Va.) said judicial deference under Chevron weakens the separation of powers.

"It bleeds out of the judicial branch power to interpret the law, transfusing that power into the executive branch," he said. "And it tempts Congress to let the hardest work of legislating bleed out of Congress and into the executive branch since Congress knows judges will defer to agency interpretations of ambiguities and gaps in statutes Congress did not truly finish."

But Democrats argue the legislation raises concerns about the separation of power it purports to restore.

And the Obama administration has said senior advisors would recommend the president veto H.R. 4768 because it would unnecessarily overrule decades of Supreme Court precedent, isn't in the public interest, and would complicate and delay judicial review of regulatory actions.

Read more here: http://bit.ly/29BtSBx

  

The GOP is turning to the power of the purse to kill the Labor Department's fiduciary rule.

A Republican-backed bill to fund the Labor Department contains a provision that would block the agency from using any money to implement the new restrictions on financial advisers.

The Obama administration has clashed with Republicans over the fiduciary rule.

Earlier this year, President Obama vetoed a high-profile GOP attempt to disapprove of the rule -- and essentially block it -- under the Congressional Review Act.

After that failed, Republicans turned to the appropriations process. 

The House Appropriations Committee will vote Wednesday on the Labor Department's funding bill. In addition to the fiduciary rule, the legislation also contains a provision blocking the agency's overtime rule.

The Labor Department recently raised the overtime threshold, so that more employees get paid time and a half when they work more than 40 hours in a week.

It's unlikely President Obama would accept a budget that blocks the fiduciary and overtime rules. http://bit.ly/29CitNS

 

ON TAP FOR WEDNESDAY 

The House Agriculture Committee will hold a hearing to discuss the U.S. Commodity Futures Trading Commission's proposed rules for automated trading. http://bit.ly/2a2yUD1

The House Foreign Affairs Subcommittee on Africa, Global Health, Global Human Rights, and International Organizations will hold a hearing to discuss the Castro's regime's ongoing violations of civil and political rights in Cuba. http://bit.ly/29lF14F

The Senate Judiciary Subcommittee on Crime and Terrorism will hold a hearing to examine the potential medical benefits and risks of marijuana. http://bit.ly/29AqfZf

The Senate Health, Education, Labor, and Pensions Committee will hold a hearing to examine campus safety, focusing on improving prevention and response efforts. http://bit.ly/29NOx2d

 

TOMORROW'S REGS TODAY

The Obama administration will publish 126 new regulations, proposed rules, notices and other administrative actions in Wednesday's edition of the Federal Register.

--Environmental Protection Agency (EPA) will issue new emissions standards.

The air pollution rules will affect petroleum refineries. The rules go into effect immediately. http://bit.ly/29BTZEs

--The Obama administration will propose new pension rules.

The Pension Benefit Guaranty Corporation (PBGC) and Labor Department's Employee Benefits Security Administration will propose new reporting requirements for employee pension and welfare benefit plans.

The public has until Oct. 4 to comment. http://bit.ly/29E2FMo

--The Department of Health and Human Services (HHS) will propose new grant regulations.

The public has 30 days to comment. http://bit.ly/29vVKS7

 

NEWS RIGHT NOW 

Bill to 'curb agency power' passes House http://bit.ly/29BtSBx

Franken questions Pokemon Go's privacy practices http://bit.ly/29wlMVl

Senate votes for energy bill negotiations with House http://bit.ly/29NLUh1

Dems upset by 'inappropriate' LGBT hearing one month after Orlando shooting http://bit.ly/29NgEkV

Senate working to expedite short-term FAA bill http://bit.ly/29zLyHW

IRS chief warns against abrupt impeachment vote http://bit.ly/29NiUbT

Lawmakers seek to ground Cuba flights pending security review http://bit.ly/29P6Nb1

Chamber pitches reform plan for the Federal Reserve http://bit.ly/29vvR5t

Senate bill would remove hurdles to stock options http://bit.ly/29NjAht

Lawmakers spar over possible fraud in phone subsidy program http://bit.ly/29FCaqP

US, European Union strike data transfer deal http://bit.ly/29zMn3s

For privacy watchdog, Snowden changed everything http://bit.ly/29NjZ3L

GOP lays into Lynch, who refuses to discuss Clinton case details http://bit.ly/29ujMBq

GOP senators rip Ginsburg comments about Trump http://bit.ly/29vz9WD

Donald TrumpDonald John TrumpTrump says 'Failing New York Times' should be held 'fully accountable' over Russia report Trump says 'Failing New York Times' should be held 'fully accountable' over Russia report Trump tweets ICE will begin removing 'millions' of undocumented migrants MORE rebukes Ruth Bader Ginsburg for deriding his candidacy – The New York Times http://nyti.ms/29V9qei

Gay gun group's membership surges after Orlando killings – Reuters http://reut.rs/29v1Frk

 

BY THE NUMBERS 

1984: Year of the Supreme Court's decision that created Chevron deference, an administrative law principle a House bill that passed Tuesday would overturn. http://bit.ly/29BtSBx

 

QUOTE OF THE DAY

"It is difficult to imagine a more inappropriate day to hold this hearing. Even if you truly believe that being gay is morally wrong, or that people should be allowed to discriminate against gay people, why in the world would you choose today of all days to hold a hearing on this discriminatory legislation?" -- Rep. Elijah Cummings (D-Md.).

Gay rights advocates and Democrats blasted Republicans for holding a hearing to discuss what critics say is anti-LGBT legislation one month after the June 12 shooting at a gay nightclub in Orlando, Fla. http://bit.ly/29NgEkV

 

We'll work to stay on top of these and other stories throughout the week, so check The Hill's Regulation page (http://thehill.com/regulation) early and often for the latest. And send any comments, complaints or regulatory news tips our way, tdevaney@thehill.com or lwheeler@thehill.com. And follow us at @timdevaney and @wheelerlydia.

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