CEI’s Battered Business Bureau: The Week in Regulation

grapefruit whole and sliced
It was the busiest week of the year so far, with more than 80 new regulations. The Federal Register also topped the 10,000 page mark on Monday.

On to the data:

  • Last week, 81 new final regulations were published in the Federal Register. There were 35 new final rules the previous week.
  • That’s the equivalent of a new regulation every 2 hours and 4 minutes.
  • So far in 2014, 438 final regulations have been published in the Federal Register. At that pace, there will be a total of 2,769 new regulations this year. This would be the lowest total in decades; this will likely change as the year goes on.
  • Last week, 1,696 new pages were added to the Federal Register.
  • Currently at 11,671 pages, the 2014 Federal Register is on pace for 72,944 pages, which would be the lowest total since 2009.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Six such rules have been published so far this year, none of them in the past week.
  • The total estimated compliance costs of 2014’s economically significant regulations currently ranges from $614 million to $885 million. They also affect several billion dollars of government spending.
  • 45 final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2014, 89 new rules affect small businesses; 14 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and @RegoftheDay on Twitter.

Unfunded Mandate Reform in the House

This week, the House is considering a dozen reform bills as part of Stop Government Abuse Week. The centerpiece bill, sponsored by Rep. Virginia Foxx, would add transparency to a shady practice called the unfunded mandate. The bill’s full title is the Unfunded Mandates Information and Transparency Act, or UMITA for short, and it will receive a floor vote today. It is expected to pass.

The goal of UMITA is to add teeth to the dentally-challenged Unfunded Mandate Reform Act of 1995 (UMRA), passed in the excitement of the Republican Revolution during the Clinton years.

Unfunded mandates were a problem back then, and they are an even bigger problem today, due in part to Presidents Bush and Obama’s record-setting deficit spending. Why do large deficits drive unfunded mandates? Suppose the federal government wants to enact a new job-training program. If it runs the program itself, it adds to the deficit, and runs the risk of making voters angry. But if it instead requires state governments or private companies administer and pay for the program, the federal balance sheet is unaffected. Unfunded mandates are a sneaky way to grow government.

The old 1995 UMRA bill made for great press conference fodder, but little else. One reason is that an unfunded mandate has to be very expensive before it triggers any UMRA actions. It would have to cost more than $100 million to state and local governments, so a $99 million unfunded mandate could slip through the cracks. Private sector burdens have to reach $146 million before drawing scrutiny.

If a mandate does reach the thresholds, the Congressional Budget Office (CBO) investigates and discloses its findings to Congress, which then has the option of striking down the mandate.

The trouble is that few unfunded mandates cost that much; their strength is in numbers rather than in size. And Congress rarely strikes down mandates that do meet the threshold for review. UMRA also exempts disaster aid and national security-related spending.

It gets worse. There are more than 60 federal agencies that issue regulations, but UMRA only covers the 17 cabinet-level agencies. The remaining three quarters of the regulatory state, called independent agencies, are exempt from this basic transparency measure.

Enter the new UMITA bill. It would expand UMRA’s disclosure requirements to cover independent agencies. It would also move mandate review from CBO to the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA), which specializes in regulatory review, and is better suited to the task.

UMITA also closes another UMRA loophole. UMRA only applies to rules that enter the rulemaking pipeline via a Notice of Proposed Rulemaking (NPRM) in the Federal Register. If an agency wants to avoid review of an unfunded mandate, all it has to do is avoid that step of the regulatory process. In that sense, UMRA actually reduces transparency. UMITA would fix that by making all rules subject to review, regardless of whether agencies skip the NPRM.

UMITA is not an earth-shaking reform, but it would improve transparency in both government spending and the regulatory process. Wayne Crews and I wrote about UMITA in 2012 here, and The Hill wrote about the bill here.

CEI Podcast for February 27, 2014: Can the EPA Regulate Greenhouse Gas Emissions?

Have a listen here.

The Supreme Court heard oral arguments this week in a case that could determine whether or not the EPA has the authority to regulate greenhouse gas emissions. CEI Senior Fellow Marlo Lewis has written about the case for Forbes.

CEI’s Battered Business Bureau: The Week in Regulation

MASH-diorama
The federal government took Monday off to celebrate George Washington’s birthday. But even accounting for the short work week, it was another light week on the regulatory front.

  • Last week, 35 new final regulations were published in the Federal Register. There were 56 new final rules the previous week.
  • That’s the equivalent of a new regulation every 4 hours and 48 minutes.
  • So far in 2014, 362 final regulations have been published in the Federal Register. At that pace, there will be a total of 2,586 new regulations this year. This would be the lowest total in decades; this will likely change as the year goes on.
  • Last week, 896 new pages were added to the Federal Register.
  • Currently at 9,975 pages, the 2014 Federal Register is on pace for 71,250 pages, which would be the lowest total since 2009.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Six such rules have been published so far this year, none of them in the past week.
  • The total estimated compliance costs of 2014’s economically significant regulations currently ranges from $614 million to $885 million. They also affect several billion dollars of government spending.
  • 39 final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2014, 72 new rules affect small businesses; 12 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and @RegoftheDay on Twitter.

CEI Podcast for February 20, 2014: The Expanding Regulatory State

Have a listen here.

CEI Fellow Ryan Young discusses the large stock of existing regulations and the flow of new regulations, both of which are costly.

Perhaps Bill Should Reconsider His Position

Politico: Bill lets teachers spank kids 10 times

Suing the IRS – And Winning

Proving that sometimes good guys can win, our friends at the Institute for Justice are celebrating a big win against the IRS. In a move supported by large, established tax preparation firms, the IRS tried to require all tax preparers to get licenses. The licenses, along with other requirements such as annual continuing education courses, would raise costs for smaller firms and put many individual preparers out of business entirely; one sees why large firms would welcome the extra burden. They would face less competition. IJ sued to put a stop to his perfidy and preserve a more open competitive process.

A few years ago, before IJ filed its lawsuit, now-CEI Adjunct Scholar Caleb Brown and I co-authored an op-ed warning why mandatory tax preparer licenses are a bad idea:

Since the IRS has the power to revoke registrations, tax preparers will have to be careful not to advocate too aggressively for their clients. Besides this chilling effect, mandatory registration reduces consumer choice.

There are at least 600,000 unregistered preparers. Many of them are retirees. Others have jobs, but prepare taxes on the side to help make ends meet. Still others are volunteers. They give their services for free to people who can’t afford a tax preparer. How many will give up, rather than jump through the proposed regulatory hoops?

The IRS estimates the total cost of the new regulations at $48.5 million, plus 1.71 million hours of paperwork and record-keeping burdens. That’s equivalent to 855 full-time jobs — and not the kind that will spark an economic recovery.

Read the whole piece here. Read more about IJ’s victory here, and see a short video they produced about the case here.

New Regulation Every Three Hours

Today’s Daily Caller contains a nice writeup of some of my recent research, as well as that of my colleague Wayne Crews. The article also drew a link from the Drudge Report.

CEI’s Battered Business Bureau: The Week in Regulation

HMI_searclight_in_Kose
Yet another snow storm shut down the federal government for a day, but that didn’t stop both the number of new regulations and the Federal Register’s page count from topping last week’s totals.

  • Last week, 56 new final regulations were published in the Federal Register. There were 55 new final rules the previous week.
  • That’s the equivalent of a new regulation precisely every three hours.
  • So far in 2014, 327 final regulations have been published in the Federal Register. At that pace, there will be a total of 2,637 new regulations this year. This would be the lowest total in decades; this will likely change as the year goes on.
  • Last week, 1,516 new pages were added to the Federal Register.
  • Currently at 9,079 pages, the 2014 Federal Register is on pace for 73,218 pages, which would be the lowest total in five years.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Six such rules have been published so far this year, two of them in the past week.
  • The total estimated compliance costs of 2014’s economically significant regulations currently ranges from $614 million to $885 million. They also affect several billion dollars of government spending.
  • 35 final rules meeting the broader definition of “significant” have been published so far this year.
  • So far in 2014, 61 new rules affect small businesses; 10 of them are classified as significant.

Highlights from selected final rules published last week:

For more data, see Ten Thousand Commandments and follow @10KC and @RegoftheDay on Twitter.

CEI Podcast for February 12, 2014: Are Cell Phones Coming to an Airplane Near You?

airplane-movie-autopilot
Have a listen here.

CEI Fellow Marc Scribner opposes a bill that would ban in-flight cell phone usage on airplanes. He believes that decision should be left to airlines, who have the technology to disable phones’ voice communications allowing data usage for texting, emailing, and web browsing.