Regulatory Reform

Position: SUPPORT
Status: LEGISLATION INTRODUCED

Summary
Each year, federal agencies issue approximately 4,000 new regulations at an annual cost of nearly $1.1 trillion, according to the U.S. Chamber of Commerce. This amount is roughly equivalent to all U.S.individual and corporate income taxes paid annually and represents a huge hidden tax on the American public.

The National Restaurant Association reports that for franchisees, it costs business owners with fewer than 20 employees about $10,585 a year per employee to comply with federal regulations. While regulatory agencies issued 3,573 final rules in 2010, Congress passed and the president signed only 217 bills into law. The distribution of lawmaking power is being increasingly delegated to unelected bureaucrats at administrative agencies. Congress must address this to minimize the burdensome impact on franchisees.

History
While dozens of proposals have been introduced to oversee the regulatory process, the CFA supports the Small Business Regulatory Freedom Act (S. 474, H.R. 3400) which specifically addresses this issue in relation to small business owners. This bill requires consideration of the “indirect” economic effect of regulations on small businesses; allows small businesses to challenge proposed regulations; mandates periodic reviews of existing regulations and requires the implementation of small business review panels for all agencies.

A blatant example of regulatory overreaching involves the National Labor Relations Board’s (NLRB) recent attempts to extend its power. As the agency tasked to administer the National Labor Relations Act and thus investigate unfair labor practices by employers and unions, the NLRB has been increasingly and actively attempting to circumvent the legislative process by regulating the workplace. In 2011 alone, the NLRB has proposed mandating that posters emphasizing union-organizing rights be posted in places of employment; implemented “quickie elections” for employee unionization and the re-evaluated key labor rulings which recognize employer rights. These recent actions, found in decisions 357 NLRB Nos. 72 and 76, are unprecedented and illustrate NLRB’s intent to manage and influence the private sector.

Position
The CFA supports efforts to reduce federal regulations, particularly those that hamper job growth. Specifically, the CFA is concerned the NLRB has overstepped its bounds in introducing numerous proposals to regulate unionization of the workplace.