08.05.15

Sullivan Introduces the RED (Regulations Endanger Democracy) Tape Act

WASHINGTON D.C. — Today, U.S. Senator Dan Sullivan (R-AK) introduced S. 1944, The RED (Regulations Endanger Democracy) Tape Act to help grow our country’s economy by freezing the growing number of federal regulations promulgated each year. If the legislation is enacted, a federal agency will be required to remove a regulation from the Federal Register for every new one promulgated.  If they refuse to do so, the cost of living adjustment for agency personnel will be withheld until the agency abides by the law.

RED Tape Act

(Click on photo above to view Sen. Sullivan’s floor speech)

Many economists and experts across the country point to regulations—the size and scope of which continue to increase substantially every year—as a major factor in our sluggish economy. Regulatory compliance and economic costs are estimated to be $1.88 trillion a year. If it were a country, U.S. regulations would be the world’s 10th largest economy, ranking behind Russia and ahead of India.

“If you imagine that the United States is in a global poker game with all other major nations in the world, the fact is that we hold all the cards,” Sullivan said in a speech on the Senate floor.  “We have a tech sector that’s the envy of the world, an agriculture system that feeds the world, the best universities, the best military, a booming energy sector, and the very best work force. Yet our economy is stagnant. We haven’t we been able to grow at traditional levels. Why? Many economists believe that over burdensome, costly regulations share a large part of the blame. And Alaska is ground zero for job-killing regulations. This bill is a bold step in fixing the problem. It cuts the red tape that binds us and will bind the regulatory system instead.”

Regulations

Cutting job-killing regulations and fighting federal overreach was a campaign promise and has been a priority for Senator Sullivan since being elected.

Summary of The RED (Regulations Endanger Democracy) Tape Act:

  • This straight-forward legislation would help rein in the out-of-control regulatory system in the United States. Using a simple one in, one out method, new regulations that cause a financial or administrative burden on businesses or the people of the United States would need to be offset by repealing an existing regulation.
  • Regulations include not only those issued by Executive Order from the President of the United States, but also regulations that are issued by an agency in the form of memorandums, guidance documents, bulletins, and press releases.
  • If an agency wants to issue a new regulation or amend an existing regulation that would create a financial or administrative burden, an agency must repeal one or more existing regulations. 
  • If an agency head refuses to offset a new regulation by repealing an existing regulation, cost of living adjustments will be withheld until the agency abides by the law.
  • Twice a year, each agency will be required to publish, through the Unified Agenda of Federal Regulatory and Deregulatory Actions, a list of new, incoming regulations, as well as the existing regulations that are being repealed to comply with the one in, one out law.
  • Incoming and outgoing regulations must be published at the same time and without delay.
  • This one in, one out rule would not apply if an agency is only seeking to repeal a regulation without introducing a new one.