It does not impact their ability to create new policies. It changes how successfully those policies may be challenged in court.
It has potential for irreparable damage if people successfully challenge a regulation and then do stupid things while the appeals to the challenge works its way through the courts and/or while the legislature passes new laws to close the gap opened by the challenged regulation. The violator might ultimately still be found guilty and have to pay damages but, for things like environmental or safety regulations, you can’t necessarily fix the damages with money.
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