federal consent decree fairness act, and the sunshine for regulatory decrees and settlements act of

130 Pages·2012·1.82 MB·English

FEDERAL CONSENT DECREE FAIRNESS ACT, AND
THE SUNSHINE FOR REGULATORY DECREES
AND SETTLEMENTS ACT OF 2012
HEARING
BEFORETHE
SUBCOMMITTEE ON COURTS, COMMERCIAL
AND ADMINISTRATIVE LAW
OFTHE
COMMITTEE ON THE JUDICIARY
HOUSE OF REPRESENTATIVES
ONE HUNDRED TWELFTH CONGRESS
SECOND SESSION
ON
H.R. 3041 and H.R. 3862
FEBRUARY 3, 2012
Serial No. 112–83
Printed for the use of the Committee on the Judiciary
(
Available via the World Wide Web: http://judiciary.house.gov
U.S. GOVERNMENT PRINTING OFFICE
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COMMITTEE ON THE JUDICIARY
LAMAR SMITH, Texas, Chairman
F. JAMES SENSENBRENNER, JR., JOHN CONYERS, JR., Michigan
Wisconsin HOWARD L. BERMAN, California
HOWARD COBLE, North Carolina JERROLD NADLER, New York
ELTON GALLEGLY, California ROBERT C. ‘‘BOBBY’’ SCOTT, Virginia
BOB GOODLATTE, Virginia MELVIN L. WATT, North Carolina
DANIEL E. LUNGREN, California ZOE LOFGREN, California
STEVE CHABOT, Ohio SHEILA JACKSON LEE, Texas
DARRELL E. ISSA, California MAXINE WATERS, California
MIKE PENCE, Indiana STEVE COHEN, Tennessee
J. RANDY FORBES, Virginia HENRY C. ‘‘HANK’’ JOHNSON, JR.,
STEVE KING, Iowa Georgia
TRENT FRANKS, Arizona PEDRO R. PIERLUISI, Puerto Rico
LOUIE GOHMERT, Texas MIKE QUIGLEY, Illinois
JIM JORDAN, Ohio JUDY CHU, California
TED POE, Texas TED DEUTCH, Florida
JASON CHAFFETZ, Utah LINDA T. SA´NCHEZ, California
TIM GRIFFIN, Arkansas JARED POLIS, Colorado
TOM MARINO, Pennsylvania
TREY GOWDY, South Carolina
DENNIS ROSS, Florida
SANDY ADAMS, Florida
BEN QUAYLE, Arizona
MARK AMODEI, Nevada
SEAN MCLAUGHLIN, Majority Chief of Staff and General Counsel
PERRY APELBAUM, Minority Staff Director and Chief Counsel
SUBCOMMITTEE ON COURTS, COMMERCIAL AND ADMINISTRATIVE LAW
HOWARD COBLE, North Carolina, Chairman
TREY GOWDY, South Carolina, Vice-Chairman
ELTON GALLEGLY, California STEVE COHEN, Tennessee
TRENT FRANKS, Arizona HENRY C. ‘‘HANK’’ JOHNSON, JR.,
DENNIS ROSS, Florida Georgia
BEN QUAYLE, Arizona MELVIN L. WATT, North Carolina
JARED POLIS, Colorado
DANIEL FLORES, Chief Counsel
JAMES PARK, Minority Counsel
(II)
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C O N T E N T S
FEBRUARY 3, 2012
Page
THE BILLS
H.R. 3041, the ‘‘Federal Consent Decree Fairness Act’’ ....................................... 2
H.R. 3862, the ‘‘Sunshine for Regulatory Decrees and Settlements Act of
2012’’ ..................................................................................................................... 11
OPENING STATEMENTS
The Honorable Howard Coble, a Representative in Congress from the State
of North Carolina, and Chairman, Subcommittee on Courts, Commercial
and Administrative Law ...................................................................................... 1
The Honorable John Conyers, Jr., a Representative in Congress from the
State of Michigan, and Ranking Member, Committee on the Judiciary ......... 19
WITNESSES
Roger R. Martella, Jr., Sidley Austin LLP
Oral Testimony ..................................................................................................... 21
Prepared Statement ............................................................................................. 24
David Schoenbrod, Trustee Professor of Law, New York Law School, Visiting
Scholar, American Enterprise Institute
Oral Testimony ..................................................................................................... 31
Prepared Statement ............................................................................................. 34
Andrew M. Grossman, Visiting Legal Fellow, The Heritage Foundation
Oral Testimony ..................................................................................................... 44
Prepared Statement ............................................................................................. 46
John C. Cruden, President, Environmental Law Institute
Oral Testimony ..................................................................................................... 65
Prepared Statement ............................................................................................. 67
APPENDIX
MATERIAL SUBMITTED FOR THE HEARING RECORD
Prepared Statement of the Honorable Steve Cohen, a Representative in Con-
gress from the State of Tennessee, and Ranking Member, Subcommittee
on Courts, Commercial and Administrative Law .............................................. 99
Prepared Statement of the Honorable John Conyers, Jr., a Representative
in Congress from the State of Michigan, and Ranking Member, Committee
on the Judiciary ................................................................................................... 100
Response to Post-Hearings Questions from Roger R. Martella, Jr., Sidley
Austin LLP ........................................................................................................... 102
Response to Post-Hearings Questions from John C. Cruden, President, Envi-
ronmental Law Institute ..................................................................................... 106
Letter in opposition to H.R. 3041, from Kenny Cieplik, Kenneth Cieplik,
and Paula Cieplik ................................................................................................. 112
Letter from the American Bar Association (ABA) ................................................ 114
Letter from the Natural Resources Defense Council (NRDC) ............................. 118
(III)
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FEDERAL CONSENT DECREE FAIRNESS ACT,
AND THE SUNSHINE FOR REGULATORY DE-
CREES AND SETTLEMENTS ACT OF 2012
FRIDAY, FEBRUARY 3, 2012
HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE ON COURTS,
COMMERCIAL AND ADMINISTRATIVE LAW,
COMMITTEE ON THE JUDICIARY,
Washington, DC.
The Subcommittee met, pursuant to call, at 9:32 a.m., in room
2141, Rayburn House Office Building, the Honorable Howard Coble
(Chairman of the Subcommittee) presiding.
Present: Representatives Coble, Gowdy, Ross, Quayle, Cohen,
Conyers, Johnson, and Watt.
Staff Present: (Majority) Daniel Flores, Subcommittee Chief
Counsel; Johnny Mautz, Counsel; Rachel Dresen, Professional Staff
Member; Omar Raschid, Professional Staff Member; Ashley Lewis,
Clerk; and (Minority) James Park, Subcommittee Chief Counsel.
Mr. COBLE. The Subcommittee will come to order.
Today’s hearing will highlight two important pieces of legislation
dealing with consent decrees. Oftentimes when the Federal Govern-
ment is sued by special interests for failure to fulfill its regulatory
obligations, the Government will enter a consent decree in lieu of
litigating. In these cases, the plaintiffs are reimbursed for their at-
torneys’ fees, and the agencies are bound to the terms of the judi-
cially approved decree.
Unfortunately, consent decree cases have become so common-
place that they are referred to as ‘‘sue and settle’’ litigation, and
they have created a new path of regulatory influence whereby spe-
cial interests use lawsuits and the courts to force the Federal Gov-
ernment to implement its priorities in the form of regulations.
Although consent decrees are efficient, they are not a wise meth-
od for issuing regulations. There is no public comment, and there
is minimal disclosure, and they carry the force of law, which is dif-
ficult to overcome or challenge.
The first of the two bills being considered today is H.R. 3041, the
‘‘Federal Consent Decree Fairness Act.’’ This legislation is intended
to enhance the ability of State and local governments to show that
consent decrees should be changed or even terminated, including
when voters elect a new State or local administration.
[The bill, H.R. 3041, follows:]
(1)
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