LR Comments to OMB on Regulatory Enforcement Reform

The U.S. Chamber Institute for Legal Reform (ILR) submitted detailed comments to the Office of Management and Budget (OMB) advocating for reforms to regulatory enforcement and adjudication processes. ILR emphasizes the need for fair, transparent, and efficient investigations, urging agencies to avoid practices like unnecessary tolling agreements that prolong investigations and to coordinate enforcement actions to prevent duplicative proceedings across multiple agencies. The organization also recommends applying legal principles such as res judicata to reduce repetitive litigation and calls for greater use of mediation and alternative dispute resolution to foster early settlements.

ILR highlights several due process concerns, including the burden of proof in regulatory proceedings, the admissibility of hearsay evidence, and the lack of mandatory disclosure of exculpatory evidence by agencies. The comments argue that Americans should never have to prove their innocence in regulatory matters and advocate for the adoption of evidentiary standards similar to those used in federal courts to ensure reliability and fairness. ILR also stresses the importance of agency transparency regarding penalties and fines, recommending the development of clear guidelines and factors for imposing civil penalties to avoid arbitrary or disproportionate punishment.

The submission further addresses issues of adjudicator independence, noting that administrative law judges (ALJs) and agency judges (AJs) may face pressures that compromise impartiality. ILR calls for statutory reforms and executive actions to strengthen the independence of adjudicators and suggests that agencies should establish written standards for issuing adverse publicity to prevent coercive settlements. Finally, ILR commends recent executive orders aimed at improving agency accountability and transparency, while encouraging ongoing monitoring and reform to ensure agencies act consistently with the rule of law and respect the rights of regulated parties.