They contend the rule makes it more difficult for property owners to develop their land and interferes with local land use decisions. The fiduciary rule for investment advisers.
Sometimes small businesses can suffer collateral damage from regulations that are imposed on others. The rule would impose significant new compliance costs and legal liabilities on advisers that offer SEP and Simple IRA plans to small businesses, according to the U. Chamber of Commerce. Limits on carbon emissions by power plants. This is another case where small businesses could feel a negative impact from regulations imposed on others, in this case electric utilities.
EPA rules requiring power plants to reduce their carbon emissions by burning less coal and using more renewable energy, such as wind and solar power, could increase the cost of electricity for businesses as well as consumers, contend business groups such as the chamber and the National Federation of Independent Business.
The rule, however, could benefit businesses in the alternative energy and energy efficiency industries — an example of how regulations sometimes can spur innovation as well as drive up costs.
For now, the fate of the rule is tied up in the courts , since states and business groups have filed lawsuits challenging the regulation.
State licensing requirements. Not all regulations come from the federal government — small businesses must deal with local and state regulations as well. Licensing requirements can be a particular pain. A license is required to do business in an increasing number of professions, and not just where health and safety concerns are obvious. For example, should hair braiders have to take 1, hours of coursework, do a six-month internship and get a cosmetology license in order to operate a legitimate business?
That was the case in Kentucky, until the legislature passed a bill this month overturning that requirement. More than one-quarter of U.
This report also presents an outline of the vast sweep of intervention and policies for which costs are disregarded. Thus, agencies issued 28 rules for every law enacted by Congress. As it happens, the average ratio for the past decade has also been The Federal Register tally rose to 70, pages. This on-budget sum is in addition to compliance and economic burdens.
Of those rules, 33 are deemed deregulatory for purposes of Trump Executive Order 11 at the completed stage, 20 at the active stage. Only two are at the planned long-term rule phase. Since the Federal Register first began itemizing them in , , final rules have been issued.
In the first year of the Trump administration, the count was 49, the lowest ever. President George W. President Obama averaged Of those, required a Regulatory Flexibility Analysis official assessment of small business impacts , down from in An additional were otherwise noted by agencies to affect small businesses in some fashion.
President Obama issued a total of , similar to President George W. Prior to the 20th century, most presidents had no more than a few dozen. Roosevelt issued 3, Once new regulations are proposed, they are subject to a public comment period of either 60 or days. The agency then must consider hundreds or thousands of comments before issuing final rules. When this process is complete, the new regulations would almost certainly be subject to a court challenge.
Changes to agency rules must be nonarbitrary. Supporters of any of the three regulations discussed in this posting would likely be willing to sue. Another option to deal with disfavored regulations is to not enforce them by giving agencies inadequate funding to engage in rigorous enforcement or instructing agencies to make enforcement of particular regulations a low priority. This strategy would be more effective for some regulations than others.
Agencies also have the option of issuing interpretations of regulations that can take regulations in a different direction than originally intended.
This strategy will not work well for dismantling seismic regulations like the Clean Power Plan or very simple, straightforward regulations like the FLSA overtime rules.
Also, these interpretations can be subject to court challenge as arbitrary and can be overturned with the stroke of a pen by the next administration. The Trump administration can refuse to defend these laws.
But the lawsuits are unlikely to simply go away because interveners will likely step in and defend them.
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