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Sunset provision

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Asunset provision,sunset clause, orsunset law is a statute or provision of a statute establishing a date on which an agency, law, or benefit will expire without specific legislative action, usually in the form of formal reauthorization byCongress or astate legislature. Sunset provisions may be included within specific laws, while a number of states have implemented general sunset laws requiring regular review and reauthorization of government programs.[1][2][3]

This term is also used in the context of insurance to describe a limit on the amount of time a policyholder has to submit a claim on their insurance policy.[4]

Background

There are two types of sunset provisions:[1]

  • Specific sunset provision
    • A clause within a larger statute providing for the expiration of part or all of that statute
  • General sunset law
    • A statute requiring regular legislative review and reauthorization of government agencies or programs

According to a Mercatus Center report published in August 2015, sunset provisions and laws have been most popular at the state level. At the federal level,Congress has tended to use sunset provisions sparingly and for specific statutes, in contrast to the general sunset laws enacted in some states.[5]

Starting in the 1970s and continuing into the 80s, a total of 35 states enacted general sunset laws requiring regular review and reauthorization of government agencies and programs, beginning with Colorado in 1976 and Texas in 1977. However, some states have since repealed their sunset laws, and few agencies have actually been terminated under these sunset provisions. Several unsuccessful attempts were made during the 1990s to pass a general federal sunset law requiring congressional reauthorization of federal programs every 10 years.[1][3]



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