On September 15, Americans for Prosperity filed a comment letter with the Department of Justice’s Office of Legal Policy in response to the agency’s Request for Information regarding state laws that significantly and adversely affect the national economy or interstate commerce. AFP believes peeling back burdensome regulations is an essential step toward reigniting the American Dream and has long been the leader in addressing regulatory concerns at the state and federal level.
Drawing from AFP’s 38 official state chapters and footprint in all 50 states, the letter outlined specific state regulatory problems adversely impacting the national economy and interstate commerce, as well as broad regulatory process reform opportunities that can help address regulatory burdens across all policy areas. Critically, AFP also reaffirmed its belief that states have a key role to play in stemming regulatory abuses, and it may not always be proper for the federal government to intervene.
Overall, AFP supports DOJ’s efforts to reduce regulatory burdens and encourages collaboration with states and Congress to promote economic freedom and legal fairness. Below are some highlights drawn from the letter:
Housing Regulations and Interstate Labor Mobility
Environmental Review Laws (e.g., California’s CEQA, Vermont’s Act 250) delay housing development and increase litigation risk.
Building Codes: Most states use the IBC for multifamily housing, which is more burdensome than the IRC. North Carolina’s reform allowing IRC for 4-unit buildings is cited as a model.
Single-Staircase Buildings: Banned in most states despite safety evidence; AFP supported reforms in Texas and New Hampshire.
Modular Homes: State-level regulations often exceed those for on-site homes, affecting interstate commerce.
Energy Regulations and Market Distortion
Renewable Portfolio Standards (RPS) and Clean Energy Standards (CES) increase electricity costs and affect ratepayers across state lines.
Federal Right of First Refusal (ROFR): FERC’s Order 1920 expanded ROFR, reducing competition and efficiency.
State ROFR Laws: Exist in several states; Montana repealed its ROFR in 2025. Texas’s ROFR was ruled unconstitutional.
DOJ and FTC Opposition: Both agencies oppose ROFR due to its anticompetitive effects.
Artificial Intelligence Regulation
Call for Moratorium on State AI Legislation: Overly broad and inconsistent laws harm startups and innovation.
Age Regulation and Data Privacy: Poorly designed laws can compromise adult privacy and increase cybersecurity risks.
Regulatory Reform Recommendations
Encourage State-Level Reform: OLP should promote transparency and economic freedom through reforms like:
REINS Act (legislative approval of major regulations)
Ending judicial deference
Promoting regulatory sunsets and periodic reviews
Host Workshops: OLP should convene state AGs to discuss regulatory reform.
Occupational Licensing Reform
Barriers for Formerly Incarcerated Individuals: Blanket bans on licenses hurt reintegration and competition.
License Portability: Difficulty transferring licenses across states limits mobility and commerce.
Universal Recognition: States like Arizona and Virginia offer models for accepting out-of-state licenses.
Overcriminalization
Criminalization of Minor Conduct: Cities and states increasingly criminalize everyday behavior (e.g., lawn violations, pet escapes).
Lack of Mens Rea Standards: Many laws don’t distinguish intent, leading to unjust prosecutions.
Recommendations:
Launch “Count the Crimes” initiatives to audit criminal codes.
Establish default mens rea standards.
Support federal legislation like the Count the Crimes to Cut Act and Mens Rea Reform Act.
