Regulatory Capture: The Conservative Cure Is Worse Than the Disease

by Sidney Shapiro | March 14, 2016

I was recently a panelist at a Senate workshop on regulatory capture sponsored by the Administrative Conference of the United States (ACUS). In an earlier post about this event, I wrote about the potential of enhanced transparency to reduce regulatory capture, which I discussed at the workshop. Conservative commentators at the workshop argued that agencies are captured by public interest groups as well as by regulated entities. They contended that Congress should thus pass the REINs Act to reduce capture from both types of regulatory stakeholders. Of course, their fears of public interest capture are greatly overblown, as the potential for these groups to capture agencies is far more hypothetical than real. But the real problem is that the REINS Act, if it became law, would increase regulatory capture, not decrease it.  

My earlier post explained that the imposition of budget cuts by Congress on regulatory agencies, which make little difference to the size of the federal budget, but which have crippled agencies, is a form of regulatory capture since agency dysfunction benefits regulated entities, not the public.  Agencies also become captured because regulated entities, their trade associations, and the friends in conservative think tanks dominate the rulemaking process, filing many more comments than public interest groups, and meeting with agencies many more times. 

Whether it is lobbying Congress concerning agency budgets or making arguments and presentations at agencies, regulated entities and their allies are able to ...

Shining Light on Regulatory Capture: Four Proposals

by Sidney Shapiro | March 11, 2016
The subject of regulatory capture was back on Capital Hill last week as the result of a briefing sponsored by Administrative Conference of the United States (ACUS). In 2010, I testified concerning regulatory capture in a Senate hearing chaired by Senator Sheldon Whitehouse (D-RI), but in the midst of the broad-scale conservative assault on regulation, the issue hasn’t gotten nearly the attention it deserves. That’s unfortunate for a simple reason. As Rena Steinzor and I establish in our book, many ...

CPR's Shapiro Joins ACUS Forum on Regulatory Capture Today

by James Goodwin | March 03, 2016
CPR Vice President Sid Shapiro is among the many distinguished panelists participating this monring in a forum called "Regulatory Capture in the 21st Century." The forum is hosted by the Administrative Conference of the United States (ACUS), an independent federal agency that works to provide Congress with advice on improving the administrative system. The event will feature remarks from Senators Sheldon Whitehouse (D-RI), Elizabeth Warren (D-MA), and Mike Lee (R-UT). Professor Shapiro will participate in a panel that looks at regulatory capture in ...

Taking ACUS to Task for Industry Bias in 'International Regulatory Cooperation' Project

by Michael Patoka | March 22, 2013
In late 2011, a little known but surprisingly influential independent federal agency called the Administrative Conference of the United States (ACUS) conducted a research project on “International Regulatory Cooperation” (IRC), culminating in a set of recommendations to U.S. agencies. In a letter sent yesterday (March 21), CPR Member Scholars Rena Steinzor and Thomas McGarity, and I urge ACUS Chairman Paul Verkuil to look back over the project’s many flaws, which reflect—in both process and substance—ACUS’s pervasive bias toward the views of ...

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