State Leaders Must Act to Curb Federal Regulators (op-ed)

Roman Buhler is the Director of the Madison Coalition working to restore a balance of state and federal power. He was a Committee Counsel for the U.S. House of Representatives for 14 years and served as Newt Gingrich's first House Committee Counsel. Contact: 
202-255-5000; [email protected]www.RegulationFreedom.Org


State Leaders Must Act to Curb Federal Regulators

The expanding power of federal regulators to dictate edicts from Washington would astonish the authors of our Constitution.

Regulators who re-interpret laws passed years ago in ways never intended by Congress threaten the checks on executive branch power that have served as the foundation for the rule of law.

If the Presidential appointees can transform the meaning of laws passed by Congress without the approval of Congress, the fundamental role of these elected representatives of the people is at risk.

No one is safe if the President and his or her appointees can unilaterally regulate any entrepreneur, investor, or an entire economic sector of existence.

The problem is even worse in a President's second term, when that President will never have to face the voters again.

It is time to restore limits on executive branch power by putting into the Constitution a basic principle:

"Regulations, like laws should have the consent of the governed."

Just as the idea "No Taxation Without Representation" rallied patriots who fought for American Independence, "No Regulation Without Representation" must be a rallying cry for those who believe that democracy, not bureaucracy is the essence of our American Republic.

Every Republican who cast a vote in the U.S. House of Representatives along with some courageous  Democrats supported the REINS Act in 2015 to require the Congress approve major new federal regulations.

But it is unlikely that the REINS act could get 60 Senate votes necessary to overcome a filibuster even if a pro-limited government President were elected in 2016.

And even if enacted, a law could be repealed or waived by a future Congress and President. That is why permanent Constitutional reform is needed.

But, while Washington may be gridlocked, federal regulators become less popular the further one travels from the beltway.

Majorities of state legislators in 2/3 of the states almost certainly agree that federal regulators should be held accountable to elected officials.

And just as pressure from state legislators helped force Congress to propose the original Bill of Rights, similar pressure could force Congress to curb the authority of federal regulators.

In fact, three times in American history, pressure from states has helped force Congress to propose Amendments states wanted, starting with the Bill of Rights and including both the 17th Amendment for direct election of U.S. Senators and the 22nd Amendment for presidential term limits.

That helps explain why 15 State legislative chambers have already passed Resolutions urging that Congress propose the "Regulation Freedom Amendment" to the U.S. Constitution to require that major new federal regulations be approved by Congress.

Similar Resolutions, or letters from state legislators urging Congress to propose the Amendment are planned in more than 25 states, including Virginia, in 2016.

The text of the Amendment is as follows:

"Whenever one quarter of the Members of the U.S. House or the U.S. Senate transmit to the President their written declaration of opposition to a proposed federal regulation, it shall require a majority vote of the House and Senate to adopt that regulation."

This Amendment would ensure that the most controversial and consequential regulations would be flagged for review by Congress and could not go into effect unless they were approved.

It has the support of more than 500 legislators, 3 Governors, the American Farm Bureau, the National Taxpayers Association, and a growing number of business and grassroots political groups around the nation.

From Colorado support for the Amendment includes former Veterans Affairs Secretary Jim Nicholson, business leader Terry Considine and conservative think tank leader John Andrews.

Given that both houses of 31 state legislatures are now controlled by Republicans, and control is split with one House controlled by Republicans and one House by Democrats in 7 more states, making federal regulators more accountable to elected officials could become a significant issue between now and November 2016.

State legislators, Members of Congress, and Presidential candidates will be asked:  Should federal regulators keep their power to dictate from Washington, or is it time to make them more accountable?

And as bipartisan support for the reining in federal regulators grows, in the form of Regulation Freedom Amendment Resolutions passed by state legislatures in some states,and letters signed by majorities of state legislators in other states, perhaps even federal regulators and those in the White House who appointed them will start paying attention.  Increased support for this effort could very possibly deter some future regulatory abuse.

Growing attention for this effort could also give voters the ability to distinguish which candidates for President want to keep or expand the regulatory power this Administration has abused, and which candidates want to restore Constitutional checks and balances intended by the authors of our Constitution.

The deadlock in Washington can be broken. Leadership from the states, from state legislators, and from Members of Congress who want to partner with state leaders can be a key part of making it happen.

But ultimately, it is business, community, and grassroots leaders who raise these issues with their elected officials who will make the difference.

COBRT and Partners Encourage Sen. Bennet to Co-Sponsor Draft Regulatory Improvement Act of 2015

January 27, 2016

The Honorable Michael Bennet
United States Senator
261 Russell Senate Office Building
Washington, DC 20510


Dear Senator Bennet,

We are writing to encourage you to co-sponsor the draft Regulatory Improvement Act of 2015 (RIA) which has been developed by a bipartisan working group of Senators, led by Senators Lankford and Heitkamp, committed to improving how regulations are developed. The draft includes legislation that has been reported from the Homeland Security and Government Affairs Committee on a broadly bipartisan basis.  

The Regulatory Improvement Act is designed to ensure that federal regulations meet their intended goals in the most efficient and effective way possible. The provisions in the bill are consistent with recommendations made by a number of independent groups. If enacted, the RIA will not change any underlying rulemaking authority, nor will it necessarily lead to different regulatory outcomes. It would, however, update the 70-year old process by which major rules are developed.

For example, title III of the draft legislation would ensure that major rules are accompanied by the issuing agency’s plan for assessing how effectively the rule is accomplishing its regulatory objectives. This title codifies a retrospective review initiative launched by the Obama Administration. 

Title IV would promote earlier public engagement by requiring agencies to publish advance notices of proposed rulemaking for major rules (those expected to cost more than $100 million annually). The sooner an agency gets good suggestions for how to accomplish its regulatory objectives, the less chance that it will waste time and resources on sub-optimal approaches. 

Title II would clarify Presidential authority to require independent regulatory agencies to prepare regulatory impact analyses (RIAs) when proposing a new major rule, similar to that required of agencies covered by Executive Order 12866, originally issued by President Clinton. While some independent regulatory agencies today prepare RIAs, some do not and among those that do, the quality varies greatly. In order to ensure these agencies’ continued independence from the Executive Branch, a new office would be established within the Congressional Budget Office to oversee these analyses and help ensure consistent quality. The new office could not reject rules or review them for more than 90 days. 

Title V would largely codify existing OMB guidance for issuing “major” or “significant” guidance and provide greater public notice of an agency’s current guidance. Title I would authorize a bipartisan expert commission to review regulations that are at least 10 years old and to make recommendations to the Congress regarding changes to regulations that are outdated or counterproductive. 
 
We support a smarter, more modern approach to regulation that meets regulatory goals while also promoting innovation, economic growth and job creation. We believe the draft legislation represents an important step toward meeting those goals.

I am grateful for your attention to this issue and look forward to working with you and your staff on legislation that would make the U.S. regulatory system more efficient and effective.


Sincerely,

Jeff Wasden
President, Colorado Business Roundtable
    
John A. Hayes
Chairman, President and CEO, Ball Corporation

Jacqueline Hinman
Chairman and CEO, CH2M

Kent Thiry
Chairman and CEO, DaVita HealthCare Partners Inc.

Terry Knight
General Manager of Control Solutions, GE Measurement & Control

 

 

 

National Small Business Association 2015 Status Report & Holiday Message

As we approach the end of 2015, I want to thank you for supporting a strong and thriving small-business community through your membership and participation in the National Small Business Association (NSBA). With all eyes on the 2016 election, I expect the coming year to be a busy one with many challenges, but I firmly believe we can meet those challenges with entrepreneurial aplomb.

I’d like to take a few moments today and share with you the good work your organization has done in the last year. While progress in Washington, D.C. may seem like an oxymoron, the staff and leadership here at NSBA have been hard at work on the issues that matter to your business, and despite the often lackluster performance of Congress, we actually have had several major achievements and successes this year.
 
Permanency for Tax Extenders
Late last week, Congress voted to approve legislation that would, among other things, permanently increase expensing limits under Section 179. One of NSBA’s Top 10 Priorities, tax extender permanency has often been held hostage by a dysfunctional Congress. NSBA has lobbied aggressively for eased tax complexity and enabling small businesses to better plan, and this provision will do just that.
 
The legislation also included a delay in implementation for three new taxes that were created by the Affordable Care Act: the excise tax on medical devices; the so-called Cadillac tax on costly health benefits; and a tax on health insurance companies that gets passed through to small businesses. NSBA has serious concerns about each of these taxes, so the delay is at least a partial victory.
 
Expanding Export Opportunities for Small Business
In November, one of NSBA’s Top 10 Priorities was achieved: Congress voted to enact a long-term reauthorization of the Export-Import Bank, which helps finance U.S. companies’ projects overseas., NSBA played a pivotal role in spreading the word about Ex-Im Bank and how it is a key tool for small-business exporters.
 
In June, Congress signed off on a measure handing President Barack Obamatrade promotion authority, which guarantees an up-or-down vote on trade deals and prevents Congress from amending them. NSBA strongly supported this provision which will better enable the passage of trade deals which clear many international hurdles and tariffs for small businesses.
 
Confirming a Chief Counsel for Advocacy
Just recently, the U.S. Senate voted to approve the nomination of Darryl DePriest as the Chief Counsel for the U.S. Small Business Administration (SBA) Office of Advocacy. Following nearly a year without a Senate-approved Chief Counsel, NSBA registered its support of Mr. DePreist and urged the Senate to vote promptly.
 
Improved Federal Contracting
In November, the National Defense Authorization Act for Fiscal Year 2016 was enacted, which included 25 provisions intended to ensure contracts are available for small businesses and better assist those businesses as they compete for contracts. A long-term priority for NSBA, we have continually urged lawmakers to ensure fairness and the opportunity for small businesses to compete for federal dollars.
 
Expand Access to Capital
Another of NSBA’s Top 10 Priorities was partially met when the Securities and Exchange Commission in October finally voted to approve the final crowdfunding rules per the NSBA-supported Jumpstart Our Business Startups Act (JOBS Act). These regulations will allow small businesses to more easily raise capital and will open up investment in small firms.
 
NSBA also submitted an amicus brief to the U.S. court of regarding a lawsuit disputing regulations from the SEC to ease investment opportunities for small firms.
 
In July, legislation was passed to expand lending authority for SBA 7(a) loan guarantee program, following the program reaching its statutory cap two months early due to high demand. NSBA has been an outspoken supporter of the 7(a) loan program and strongly urged lawmakers to support increased lending authority.
 
Protecting Small Inventors
NSBA strongly opposed two patent-reform bills which would greatly harm the ability of small inventors to protect their patents and seek investment. Our strong opposition helped to stall the bill from a floor vote this year.
 
Giving Small Business a Voice
NSBA’s annual Washington Presentation was a rousing success this June where our members attended a high-level White House Briefing and heard from eight Members of Congress during our Congressional Breakfast prior to a busy day of Hill meetings with their elected officials.
 
In February, NSBA hosted our biennial Small Business Congress where members from across the country heard from top-notch speakers including Sen. John McCain (R-Ariz.), then discussed and debated the key issues facing small business, resulting in NSBA’s member-voted Top 10 Priorities.
 
Testified Before Congress and the Administration
NSBA and its councils, the Small Business Technology Council and Small Business Exporters Association, testified before Congress this year on a number of key issues, including tax simplificaiton, the state of the small-business economyexportingpatent reform and cybersecurity.
 
Additionally, two NSBA board members testified in April at an SBA Region 3Regulatory Fairness Board national hearing in Washington, D.C.
 
Provided Critical Data on Small Business
NSBA has continued this year with our highly-respected surveys on topics ranging from taxes to health care, and continues to do our biannual Economic Reports which provide critical data to lawmakers and the media on how small business is faring.
 
Represented Small Business in the Media
NSBA and its leadership was featured in a number of high-profile media reportsthroughout the year in outlets ranging from Fox News, MSNBC and CNBC to Forbes and Time Magazines, The Wall Street Journal to the New York Times and Washington Post, as well as in countless major city dailies, Business Journals  and the Associated Press.
 
Recognized Outstanding Business Leaders
NSBA in June, recognized 5 outstanding small-business owners and leaders who are making a difference in their communities and beyond with our Lew Shattuck Advocate of the Year Award.
 
Member-Focused Issue Calls
NSBA continued with its popular Issue Briefing call series where members heard from high-level experts on a variety of issues, including tax reform, newovertime regulations, our annual State of the Union Analysis, and the Trans-Pacific Partnership (TPP).
 
NSBA Leadership Council
NSBA continues to grow its Leadership Council with impactful small-business leaders from across the country, and is providing meaningful content and insight on the politics of small business with the group, as well as providing great networking opportunities.
 
Outstanding Member Discounts
NSBA has cultivated valuable relationships with our corporate sponsors who continue to offer NSBA members fantastic discounts and valuable resources.
 
There is still much to do: pushing back against NLRB efforts that would drastically expand union reach to small firms that contract with larger firms; working to prevent massively burdensome new overtime rules from becoming law; ensuring Congress focuses on our looming debt; addressing the untenable cost increases under the Affordable Care Act; and much more.Today, I am asking you to take a few moments and complete our Year-End Economic Survey to help us continue to provide you with the best advocacy possible. I look forward to continuing our work together in the coming months and year on these and the many other key issues facing your business. 

As we close the chapter to 2015, I am happy to extend the best wishes for a safe and happy holiday season from NSBA staff and leadership.
 
Happy Holidays,
 
Todd McCracken
President