By Aruna Viswanatha
WASHINGTON, Jan 31 (Reuters) - Several Republican lawmakers
on Thursday introduced legislation to stop a labor board and
consumer watchdog from enforcing regulations, after an appeals
court questioned the legitimacy of recent White House
appointments at both agencies.
The bill prohibits the National Labor Relations Board and
the Consumer Financial Protection Bureau from enforcing or
implementing decisions and regulations without a
constitutionally confirmed board or director.
A federal appeals court in Washington last week found that
President Barack Obama violated the U.S. Constitution when he
used recess appointments to fill the labor board, after
determining that the Senate was not truly in recess.
The ruling did not deal directly with the consumer bureau,
but Obama had used the same type of appointment to install its
While the bill, sponsored by senators Mike Johanns, Lamar
Alexander and John Cornyn, has little chance of becoming law, it
adds to pressure on the Obama administration to reach a
compromise to keep both agencies operating and determine whether
it will appeal the ruling.
Administration lawyers are expected to go to court at least
twice more in March to argue over the same issue.
Meanwhile, other businesses have already begun asking courts
to throw out recent rulings from the labor board, citing last
"Any decisions or regulations made by the people who have no
right to be there are invalid," Johanns, of Nebraska, said in a
Congress does not directly set the CFPB budget, but the
legislation would block the agency's next transfer of funds from
the Federal Reserve to carry out any actions that require the
approval of a director.
Follow us on Twitter @ReutersLegal | Like us on Facebook