sunset clause


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Sunset Clause

A clause in a law or regulation automatically abolishing that law or regulation after a stated period of time. In order for the law or regulation to continue to have effect, specific action must be taken. A law or regulation without a sunset clause continues indefinitely. The U.S. state of Texas has sunset clauses abolishing nearly every state agency every 12 years unless they are specifically renewed.

sunset clause

A provision in a sales contract that sets a date for closing and after which the contract will be unenforceable except for provisions related to damages or earnest money refund or retention.

References in periodicals archive ?
A sunset clause is not legally a very precise concept because there is no such thing as an absolute sunset clause in English law.
Since most of the power projects have been delayed due to the policy paralysis on the part of the previous government it is only fair to give investors the benefit of the tax holiday by extending the date for the sunset clause,'' senior official said.
After Bill C-36 the Anti-Terrorism Act ("ATA") was introduced in Parliament in 2001, there was much debate about its provisions, and in response, a five-year sunset clause was attached to the new powers of preventive arrest and investigative hearings.
But look back to the recent reduction in VAT and the little-used sunset clause in the policy, which stated an end date to that cut and a return from 15% to 17.
She also echoed the sentiment of many speakers that paralegals expect the voluntary FRP program to become mandatory at some point, adding, "Many of us viewed the sunset clause ending as the time period that mandatory could be discussed.
Member states opposed to ownership unbundling feared it would provide a sunset clause for the third ITO option.
Of course, as I am sure you know, this legislation already has a sunset clause, so that it lapses every year unless it is renewed.
The Protect America Act is set to expire in six months due to a sunset clause.
Any new regulation that impacts on business should be subject to a sunset clause.
At the very least, the Safer Communities and Neighbourhood Act should have a sunset clause.
Earlier this month, the House favored making the tax permanent in voting 64-25 to remove a sunset clause that would end the tax.
MPs had sat up through Thursday night as the House of Lords repeatedly voted for a sunset clause so that the laws expire in a year.