Category Archives: regulation

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  •  68 new final rules were published last week, down from 85 the previous week.
  • That’s the equivalent of a new regulation every 2 hours and 28 minutes — 24 hours a day, 7 days a week.
  • All in all, 2,366 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2012 will be 3,883 new rules.
  • 1,443 new pages were added to the 2012 Federal Register last week, for a total of 47,967 pages.
  • At its current pace, the 2012 Federal Register will run 77,367 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 27 such rules published so far in 2012 have compliance costs of at least $16.2 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • One economically significant rule was published last week.
  • So far, 246 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 447 final rules affect small business. 63 of them are significant rules.

Highlights from final rules published last week:

  • Last week’s economically significant rule was part of the health care bill. It sets “Operating Rules for Health Care Electronic Funds Transfers (EFT) and Remittance Advice Transactions.” Its estimated cost is $1.2 billion to $2.7 billion. I have used the lower figure for this year’s running cost tally for economically significant rules.
  • If you deal in highly migratory Atlantic fish, you are now required to electronically submit weekly reports to the federal govermment.
  • If you enjoy flying Glasflugel Gliders, you should be aware of new airworthiness directives from the FAA.

For more data, go to TenThousandCommandments.com.

Regulation of the Day 226: Hot Dog Carts


Nathan Duszynski is 13 years old and lives in Holland, Michigan. His stepfather has multiple sclerosis. His mother has epilepsy. Neither is able to work.

To help out with his family’s expenses, Nathan started mowing lawns and soon saved up the $1,200 or so that he needed to buy a hot dog cart. That way he could make even more money.

The owner of a local sporting goods store was even kind enough to allow Nathan to set up shop in his store’s parking lot. But regulators shut Nathan down ten minutes after opening up shop for the first time. He had yet to sell his first hot dog. Turns out that food carts are illegal in Holland unless they’re connected to a brick-and-mortar restaurant.

Seeing as many cities across the country have unaffiliated food carts and no evidence of consumer harm, there can only be one explanation for Holland’s hot dog cart ban: rent-seeking. Restaurants don’t want to deal with the competition, so they convinced the government to do their dirty work for them.

Because of this rent-seeking, Nathan and his family are now homeless.

Our friends at the Mackinac Center have spoken with the family:

“Nate and I are now in a shelter,” Lynette Johnson said. “Doug can’t stay with us because he takes prescription narcotics to deal with his pain and the shelter does not allow him with those kinds of drugs.”

She said the situation has been stressful on the family. Lynette is afraid to be away from her husband in case she has a seizure.

Nathan has still been working hard. He’s selling hot dogs at private events, which is legal. But according to a local paper, it’s still difficult:

The cart is the only solid income the family can rely on, said Lynette. But the business is in jeopardy due to the family’s financial situation…

The reason, she said, is that each event requires a new health department permit, and the cost varies between West Michigan municipalities. The last event, a private wedding reception on Friday, cost about $200 for the permit.

Coupled with food and supply cost, they barely broke even, she said.

Nathan now has a web site for Nathan’s Hot Dog Hut, where you can make a donation via PayPal. Nathan writes, “If you believe in free enterprise and can help with the costs of my fight with City Hall and the losses we have sustained so far please donate what you can to help us and those others in similar situations by clicking the button below.”

Here’s hoping Nathan wins his fight. Everyone has the right to make an honest living — even if their competitors would rather they didn’t.

There Is Nothing Left to Cut


The federal government has a Davy Crockett Resource Advisory Committee.

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  • 85 new final rules were published last week, down from 86 the previous week.
  • That’s the equivalent of a new regulation precisely every hour and 59 minutes — 24 hours a day, 7 days a week.
  • All in all, 2,298 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2012 will be 3,894 new rules.
  • 3,645 new pages were added to the 2012 Federal Register last week, for a total of 46,524 pages.
  • At its current pace, the 2012 Federal Register will run 77,540 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 26 such rules published so far in 2012 have compliance costs of at least $14.5 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • One economically significant rule was published last week.
  • So far, 240 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 431 final rules affect small business. 63 of them are significant rules.

Highlights from final rules published last week:

  • Last week’s economically significant rule was an increase in payments the federal government makes to skilled nursing facilities, to the tune of $670 million in FY 2013. Since this cost is in government spending and not compliance costs, I am scoring it as costing zero in this year’s tally of compliance costs.
  • The Federal Reserve System is revising its debit card swipe fee price controls to account for “fraud-prevention costs incurred by merchants.”
  • Organic food enthusiasts might be interested in new changes to the national list of allowed and prohibited substances.
  • The federal government places limits on hunting for the Utah prairie dog.
  • If you use a corporate jet for entertainment purposes, the related expenses are no longer tax deductible.
  • Attention, pro athletes: prostanozol (17β-hydroxy-5α-androstano[3,2-c]pyrazole) and methasterone (2α,17α-dimethyl-5α-androstan-17β-ol-3-one) are now considered anabolic steroids by the DEA and are subject to the Controlled Substances Act.

For more data, go to TenThousandCommandments.com.

Regulation of the Day 225: Boobie Pillows

Kern County, California’s government takes morality very seriously. Chapter 9.12.010 of the County Code states that “No vendor shall vend stuffed articles depicting the female breasts (sold as “boobie pillows”) within one thousand (1,000) feet of any county highway.” The punishment for each offense is a fine of up to $500 and/or up to 90 days in jail. Worse, “Each day of violation shall constitute a separate offense.”

The purpose of the boobie pillow ban, according to the Finding of Fact Leading to Enactment that accompanies the text, is to prevent children on their way to church from seeing such adult-themed merchandise.

Strangely, boobie pillows are the only adult-themed merchandise subject to the ban. So, according to the law, purveyors of smut can still set up shop almost anywhere they please. They just can’t sell “stuffed articles depicting the female breasts.”

In other news, Kern County is currently running a budget deficit in the $25-30 million range. If the county liberalized its strict boobie pillow policy, it could increase its sales tax revenue and tame its deficit.

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  •  86 new final rules were published last week, up from 81 the previous week.
  • That’s the equivalent of a new regulation precisely every hour and 53 minutes — 24 hours a day, 7 days a week.
  • All in all, 2,213 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2012 will be 3,875 new rules.
  • 1,549 new pages were added to the 2012 Federal Register last week, for a total of 42,879 pages.
  • At its current pace, the 2012 Federal Register will run 76,600 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 25 such rules published so far in 2012 have compliance costs of at least $14.5 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • No economically significant rules were published last week.
  • So far, 235 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 421 final rules affect small business. 60 of them are significant rules.

Highlights from final rules published last week:

For more data, go to TenThousandCommandments.com.

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  •  81 new final rules were published last week, down from 84 the previous week.
  • That’s the equivalent of a new regulation precisely every 2 hours and 4 minutes — 24 hours a day, 7 days a week.
  • All in all, 2,127 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2012 will be 3,854 new rules.
  • 1,283 new pages were added to the 2012 Federal Register last week, for a total of 42,879 pages.
  • At its current pace, the 2012 Federal Register will run 75,570 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 25 such rules published so far in 2012 have compliance costs of at least $14.5 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • No economically significant rules were published last week.
  • So far, 224 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 402 final rules affect small businesses. 59 of them are significant rules.

Highlights from final rules published last week:

For more data, go to TenThousandCommandments.com.

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  •  84 new final rules were published last week, down from 71 the previous week.
  • That’s the equivalent of a new regulation precisely every 2 hours — 24 hours a day, 7 days a week.
  • All in all, 2,144 final rules have been published in the Federal Register this year.
  • If this keeps up, the total tally for 2012 will be 4,024 new rules.
  • 1,412 new pages were added to the 2012 Federal Register last week, for a total of 40,596 pages.
  • At its current pace, the 2012 Federal Register will run 75,178 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 25 such rules published so far in 2012 have compliance costs of at least $14.5 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • No economically significant rule was published last week.
  • So far, 216 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 386 final rules affect small businesses. 59 of them are significant rules.

Highlights from final rules published last week:

For more data, go to TenThousandCommandments.com

Regulation Roundup


It’s been a busy summer for regulators around the world. Here are some of their latest accomplishments:

Regulation of the Day 224: Competing with Taxis


A cool startup company called Uber operates in about half a dozen cities in the U.S. and Canada, and is growing fast. Think of them as an on-demand cab service. Using their smartphone application, you request a car, and a few minutes later a professional driver in a black Lincoln Town Car will pick you up where you stand and take you where you need to go. Their system even sends you a text message to let you know when your driver is about to arrive.

Customers who don’t like Town Cars can request an SUV instead. Since Uber keeps your credit card information on file, payment is both cashless and automatic, and you do not tip your driver.

It’s an innovative business model, and customers rave about the service. No wonder the local taxi industry in Washington, D.C. sees Uber as a threat. There are two ways they can deal with it. One is to compete. The other is to use regulation to drive it out of business. Guess which option they chose?

Back in January, a shady sting operation led by Taxi Commissioner Ron Linton nearly put Uber out of business in DC, even though it failed to find any rules violations.

Today, the D.C. City Council was set to vote on an amendment from Councilmember Mary Cheh that would make it illegal for Uber to charge less than five times the minimum cab fare in D.C., currently $15. This would put a stop to UberX, a cheaper service using less flashy cars. UberX is already available in New York, and the company is planning on bringing it to Washington.

The price for Uber X is a $5 base fee, plus $3.25 per mile, so any trip under 3 miles or so would be cheaper than what the rent-seeking amendment would require.

In other words, Cheh would rather her constituents to pay more for transportation instead of less. Even in a city as cynical as Washington, this is difficult to spin as pro-consumer.

After a heartening consumer uproar, Councilmember Mary Cheh withdrew her amendment. Another Councilmember, Jack Evans, said he received more than 5,000 emails encouraging him to oppose the rent-seeking amendment.

It may return as a separate bill in the fall, but for now, Uber has won and the rent-seekers have lost.

There is reason to be optimistic that future rent-seeking attempts will also fail. Most companies become invertebrates when government comes calling, but Uber seems to have a spine. Leading up to the day of the amendment’s scheduled vote, CEO Travis Kalanick said,”We won’t stand for a DC Council price floor that limits innovation and hurts consumers. Uber DC’s minimum fare is now dropped to $12 for the remainder of July in protest.”

That’s the kind of attitude we like to see. D.C.’s taxi industry could learn a lot from Uber. Instead of purchasing corrupt politicians, they should offer a better service at a lower price. That way, everyone wins.