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Article: Should the Foxes be Guarding the Hen House?


Jacksonville Attorney - Lawyer, providing experienced Consumer Protection, Family Law, Estate Law, Employment Law, Business Law, and Bankruptcy Law legal representation in Jacksonville, Hilliard, Duval County, Nassau County and the surrounding Northeast Florida areas.


Life in the country is great.  Since my wife and family moved back home, we have raised goats and cows.  Unfortunately, we have not had any success raising chickens because we have a dog that just loves chickens, dead or alive.  No matter what I do, she finds a way to get access to the chickens.  Although she has only chased a chicken once in my presence, it does not take a CSI investigator to figure out who the culprit was when the few chickens I was trying to raise were massacred.  I’ve tried to create boundaries with goat fence, barbed wire, flaming trenches and mine fields but my dog will not mind the rules without constant oversight.  This reminds me of the old adage that you don’t want a fox guarding the hen house.   Unfortunately, the folks in Washington have forgotten that lesson when it comes to regulatory agencies.

Regulatory agencies have been given more and more power in our society.  Although it is unconstitutional to delegate legislative power to agencies, we have allowed them to take control.  By law, a legislative agency is not to be given decision making power without telling the agency what standards or guidelines to develop so that it knows its rights and obligations.  Therefore, administrative rules that are inconsistent with legislative guidelines are unconstitutional.  Corporations have successfully challenged legislative rules on this basis when agencies try to engraft additional requirements to regulations that were not envisioned by the legislature.

Unfortunately, in the last eight years, agencies have taken a new tack.  Although there are still zillions of troublesome regulations, legislative agencies have repeatedly sought to block competing regulation, even if it was signed into law by states to protect their citizens.  The agencies have done this by asserting a legal doctrine known as preemption by arguing that Congress wanted the federal agency to be the sole regulators of everything in a particular field.  Preemption has become a dirty word.

I have previously written about how the Office of the Comptroller of the Currency (OCC) issued new rules in 2004 saying that its regulations "preempt"- that is, override-a number of state laws that conflict with a national bank's exercise of its banking powers.  Indeed, the New York Attorney General wrote a Washington Post article about a lawsuit filed against him by the OCC entitled Predatory Lenders' Partner in Crime:  How the Bush Administration Stopped the States From Stepping In to Help Consumers.   

Other examples of preemption efforts abound.  Rather than using agencies as a sword to challenge wrongdoers, agencies have in recent times sought to use their regulatory power to shield corporate wrongdoers.  One of the latest examples was an argument by drug makers and the FDA that the FDA’s approval of a drug supercedes state law claims challenging safety, effectiveness, or labeling.   Believe it or not, a case pending before the Supreme Court involves whether a person who lost her arm because of a botched drug injection may sue the drug maker.  

My question is whether this is what we really want as a society.  Do we want to limit oversight to the same agencies whose hands off policies led to the need for a bailout of AIG and others.  The latest example of lax oversight is the $50 billion dollar scam allegedly perpetrated by Bernard Madoff, the former chairman of the Nasdaq Stock Market, while other money managers were raising suspicions to the SEC for almost a decade.  Can you believe this guy is out on bail walking the streets!

Unfortunately, money has proven to be a corrupting influence in Washington, the foxes that want access to the hen house have a lot of it, and so long as Washington is beholden to them, they will write the rules that let them guard the hen house and stop others from doing so.  If this ever changes, it will take some time.  I’m not ready to order chickens just yet.


Disclaimer: The above Article is intended to give you, the consumer, insight into various legal topics. This information is not intended as legal advice, but rather helpful topical information.

If you require professional legal services regarding Consumer Protection, Family Law, Estate Law, Employment Law, Business Law, and Bankruptcy Law issues, be proactive in protecting your legal rights by seeking the legal advice of an experienced Jacksonville criminal defense attorney & lawyer. Contact The Law Offices of Steven M. Fahlgren, P.A., by calling 904.845.2255.


Jacksonville Attorney - Lawyer, providing experienced Consumer Protection, Family Law, Estate Law, Employment Law, Business Law, and Bankruptcy Law legal representation in Jacksonville, Hilliard, Duval County, Nassau County and the surrounding Northeast Florida areas.

 

 

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