There’s been a lot in the news lately about government regulations, Supreme Court actions and what it all means. It’s understandable if you haven’t been able to keep up. ISA is here to decipher the legal documents and regulatory rulings so you can focus on running your business.
What happened? In late June, the U.S. Supreme Court overturned the so-called “Chevron deference.” The policy required courts to defer to “reasonable interpretations” of ambiguous statutes by a federal agency, even if the court disagreed. This approach had been in use for 40 years.
But this year the court found this deference conflicted with the 1946 Administrative Procedure Act (APA) that specified that the courts, not agencies, decide questions of law.
What does it mean? Well let’s start with what it doesn’t mean. It doesn’t mean that regulation goes out the window. In fact, a week after that decision, the Supreme Court refused to hear another court case that questioned whether the Occupational Safety and Health Administration (OSHA) was constitutional. In most cases, federal agencies will still be able to create regulations that affect your business.
As for what it does mean, it’s really too early to tell. Many questions remain. One thing is for sure: courts will be very busy deciding and lawyers will be very busy advocating for their business clients. It also likely means Congress will have to be more specific about what they intend—and this is a good thing.
What happened immediately? Soon after the court’s ruling, federal courts across the country paused several new regulations, citing the overturning of the Chevron doctrine. In addition, ISA has joined a business coalition urging the Biden administration to pause all current rulemakings and stop new rules from taking effect until there is a thorough legal review of each agency’s authority.
ISA’s letter to the administration notes that there are more than 1,000 major rules in various stages of review. Of those rules, 145 would impact the economy to the tune of more than $200 million. It’s critical that the thousands of federal regulations being considered, administered and enforced on millions of American businesses are carefully considered and pass legal muster.
What is the long-term outlook? Obviously, the legal ramifications of this case will take years to be fully understood and there likely will be more court cases that further define what this means. However, know that ISA will advocate on behalf of the sign, graphics and visual communications industry. ISA will ensure our voice is heard in Washington and that you are kept informed when regulations change.
Staying compliant with federal regulations is important. Failure to do so can be costly. But with so much up in the air, navigating such restrictions can be challenging. ISA is here to help. Have a question about a regulation at the federal level or an issue at the state or local level? Email me at [email protected].
