What is a sunset clause?

• A. A policy or program expires after a set date unless reauthorized.
• B. A policy automatically renews every year without review.
• C. A policy requires annual reports but never expires.
• D. A policy is permanent unless repealed by the legislature.

Answer: (A)

A sunset clause is a provision that sets an automatic expiration date for a policy, program, or law unless it is reauthorized or extended by the appropriate authority. This design forces a formal review of the policy’s effectiveness, costs, and ongoing need, rather than letting it continue indefinitely without oversight. If the expiration date arrives and no reauthorization occurs, the policy ends.

This differs from automatic renewal, which would extend the policy without requiring a fresh decision. It also isn’t about requiring annual reports while the policy continues to exist, so it doesn’t imply perpetual validity. And it isn’t a permanent statute that lasts until explicitly repealed; the sunset approach guarantees an endpoint unless a new decision is made to continue it.