Roofing contractors currently must contend with an unprecedented combination of federal regulations that affect daily business operations in a variety of ways. Recognizing the concerns of its members, NRCA has increased its efforts to combat burdensome and counterproductive rules in the regulatory and legislative arenas.
Regulatory burdens
Of concern are regulations recently issued by numerous federal agencies, including the Department of Labor, National Labor Relations Board, Occupational Safety and Health Administration, and Environmental Protection Agency. In addition, employers face great uncertainty over thousands of pages of new rules now being drafted to implement the 2010 health care law that will impose new government mandates on employers beginning in 2014.
The cumulative burden of regulations recently issued on employers in the roofing industry, as well as proposals in the pipeline, is staggering. This regulatory onslaught is a major factor contributing to the difficulties employers face in the current economy, making it more difficult than ever for entrepreneurs to start or grow businesses.
And what is most problematic is federal officials often do not appear willing or able to work cooperatively with business organizations to identify the most effective and least burdensome alternatives when developing regulations. It has become apparent regulatory processes are not providing for sufficient public input nor are agencies being held sufficiently accountable for the effects their regulations have on businesses.
Advancing reform
Regulatory reform legislation's primary goal is to ensure adverse effects of new regulations on employers, especially small businesses, are minimized to the greatest extent possible.
NRCA has engaged federal agencies directly on specific regulatory initiatives of interest to roofing contractors and actively has been working with Congress on legislation to reform processes under which regulations are developed within federal agencies. NRCA made substantial progress in advancing regulatory reform legislation when the House of Representatives approved two reform measures in December 2011.
The first bill, the Regulatory Flexibility Improvements Act (H.R. 527), was approved by a bipartisan vote of 263-159. It is designed to strengthen the existing Regulatory Flexibility Act (RFA), which requires federal agencies to consider the effect of proposed regulations on small businesses, as well as the least burdensome form of regulation. Given the current explosion of regulations, it is clear the RFA needs to be updated and improved so it can fully protect the interests of small businesses in the regulatory process.
The second bill, the Regulatory Accountability Act (H.R. 3010), was approved in the House by a bipartisan vote of 253-167. This legislation updates regulatory processes that have been in place for 65 years under the Administrative Procedures Act. Among other reforms, it would hold agencies more accountable by providing on-the-record administrative hearings in the development of regulations and more rigorous tests in legal challenges to regulations.
Additionally, NRCA supports the Regulatory Moratorium and Jobs Preservation Act (H.R. 2898), a bill sponsored by former NRCA President Rep. Reid Ribble (R-Wis.). H.R. 2898 would place a moratorium on new federal regulations for as long as unemployment is more than 7.8 percent. This "time-out" on new regulations would apply to major rules issued by federal agencies but would exempt those that address imminent public health threats or other emergencies.
Putting most new regulations on hold would help give employers the certainty they need to begin creating jobs again. It appears the House will take action on H.R. 2898 sometime this spring.
Hope for the future
Although the outlook for enactment of any regulatory reform legislation in 2012 is problematic given the legislative gridlock gripping the Senate, the level of bipartisan support in the House for regulatory reform provides some hope for its consideration in the near future.
NRCA is working to capitalize on these recent successes and will continue working to advance regulatory reform initiatives that minimize the adverse impacts of government regulations on roofing contractors.
Duane L. Musser is NRCA's vice president of government relations.
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