In terms of steps that could be taken by the Obama Administration to let state regulators know that they are a part of the same team working to protect citizens from wrongdoers, the Administration this week gave as close to a perfect sign as I could imagine by limiting agency preemption only to those situations in which there is a clear statutory requirement that such preemption be implemented. From the White House:
To ensure that executive departments and agencies include statements of preemption in regulations only when such statements have a sufficient legal basis:
1. Heads of departments and agencies should not include in regulatory preambles statements that the department or agency intends to preempt State law through the regulation except where preemption provisions are also included in the codified regulation.
2. Heads of departments and agencies should not include preemption provisions in codified regulations except where such provisions would be justified under legal principles governing preemption, including the principles outlined in Executive Order 13132.
3. Heads of departments and agencies should review regulations issued within the past 10 years that contain statements in regulatory preambles or codified provisions intended by the department or agency to preempt State law, in order to decide whether such statements or provisions are justified under applicable legal principles governing preemption. Where the head of a department or agency determines that a regulatory statement of preemption or codified regulatory provision cannot be so justified, the head of that department or agency should initiate appropriate action, which may include amendment of the relevant regulation.
As the liberal Center for Pressive Reform (a group, you might recall, who raised big questions about Cass Sunstein’s nomination to head up OIRA) put it:
On Wednesday, by the stroke of a pen, President Obama reversed a major Bush administration policy, striking another blow for good government. For eight years the Bush administration sought to accomplish tort reform by stealth and indirection with several agencies proclaiming in preambles to regulations that the regulations preempted state tort law.
In a November 2008 White Paper, CPR Member Scholars called for the President to amend or strengthen the existing Executive Order on Federalism to reverse this Bush policy and to re-establish the presumption that federal regulations protecting health, safety, and the environment do not preempt state tort law. The President has now done this.
This is an important and welcome reversal of the commonplace Bush Administration practice of attempting to limit states’ creative experiments for dealing with regulatory quandries.
[UPDATE: The Republican laissez-faire response is, unsurprisingly, that "Obama Regulatory Review Could Spur Product Lawsuits."]
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