President Trump speaking at the White House. (Source: Shutterstock)
President Trump Wednesday issued two Executive Orders intended to rein in agency guidance—directions he said that agencies use to get around the regulatory process.
The NCUA had no immediate comment on the orders, but in the past, the independent agency has said it would follow the spirit of such orders even though they technically may not apply to it.
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"The public frequently has insufficient notice of guidance documents, which are not always published in the Federal Register or distributed to all regulated parties," the administration said, in outlining the orders.
"Even when accompanied by a disclaimer that it is non-binding, a guidance document issued by an agency may carry the implicit threat of enforcement action if the regulated public does not comply," the administration said.
One Executive Order states that agencies must treat guidance documents as non-binding, take public input in formulating the guidance and make the documents readily available to the public.
Agencies will be required to catalog guidance on a website and must rescind those no longer in effect.
The second order states that when agencies take an action against a regulated business or person, they must establish a violation of law based on statutes and regulations. Agencies may not take action based on a guidance document, the order states.
CUNA President/CEO Jim Nussle said the orders are a strong step toward reining in regulatory overreach.
"In recent years, we have seen federal agencies try to exceed their statutory authority and skirt their obligations under the Administrative Procedures Act by issuing guidance in lieu of new regulation," he said. "This practice runs counter to our nation's democratic principles, and we appreciate the President's line in the sand on the matter."
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