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National Federation
of Independent Business (NFIB) wants seven agencies to explain why they’ve
subverted the formal rule-making process
Washington,
DC (November 4, 2015) – The National
Federation of Independent Business (NFIB) today sent letters to
multiple agencies seeking an explanation for decisions, interpretations or
rules that have the effect of law but which never underwent the formal process
to allow public comment or economic analysis.
“Americans
generally know that the proliferation of regulations is harming the economy and
Congress has certainly been focused on putting the agencies on a shorter
leash,” said Karen Harned,
Executive Director of the NFIB Small Business Legal Center.
“What is not widely discussed, but which is a very serious threat to our system
of checks and balances, is the aggressive way that the agencies are creating
and enforcing new rules outside of the formal rule-making process.
“We’ve identified a
number agencies that have engaged in this practice and as a matter of good
government we think the small business community deserves an explanation.”
That practice,
which NFIB calls “underground regulation,” is the subject of a detailed case study of agencies that have essentially made
new laws affecting businesses simply by issuing an interpretative statement,
filing a court brief or writing new guidance. Harned shared the research
yesterday with a key House subcommittee.
Today she sent a
letter to some of the offenders, including: the Internal Revenue Service (IRS),
the Equal Employment Opportunity Commission (EEOC), the Department of Justice
(DOL), the National Labor Relations Board (NLRB), the Department of Labor
(DOL), the Federal Trade Commission (FTC) and the Federal Communications
Commission (FCC).
“Overzealous
regulation is a perennial concern for small business and NFIB,” she writes. “We
are troubled by the increasing efforts of federal agencies to subvert the
Administrative Procedures Act (APA) rule making process altogether, thereby
imposing new regulatory burdens on small business outside of the formal
rule making process.”
To view the
“Underground Regulations” report, click this link: https://www.nfib.com/pdfs/fourth-branch-underground-regulations-nfib.pdf
For a copy of the
letters to the agencies, please contact Jack Mozloom. To learn more about NFIB
please visit www.nfib.com.
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