On January 6, 2016, the U.S. House of Representatives approved the Sunshine for Regulatory Decrees and Settlements Act (H.R. 712) by a vote of 244 – 173. The AFS supported bill would require greater judicial and public scrutiny for “sue-and-settle” deals reached by federal agencies as defendants in litigation. AFS joined onto the multi-industry letter with 250 groups from 45 different states to urge support of the measure.
Sue and settle arrangements occur when groups initiate litigation against a federal agency and quickly reach a settlement where new and often burdensome regulations are initiated on an expedited time frame. Typically, the members of the regulated community most impacted by these new rules are given no opportunity to have a voice in the crafting of the settlement. The legislation now moves to the Senate for consideration. The Obama Administration has threatened to veto H.R. 712.