We’ve been watching the stories about regulatory activity in the waning days of the Bush administration, potential plans by the new administration and Congress to review those regs, and prognostications on the incoming Obama administration’s approach to regulating.

            Here’s what we’re looking at: the deadline set by the Bush administration to get rules onto the books before the Democrats arrive has now passed, see National Public Radio’s Morning Edition story . . .  another web site offers “a rundown of rules and regulations that the Bush administration is pushing through the rulemaking process in its waning days…” . . . Federal Times reports that Rep. Jerrold Nadler (D-NY) has introduced a bill which would freeze the “midnight rulemaking” that takes place at the end of an administration . . .  finally, the Mercatus Center at George Mason University weighs in with “the high political costs faced by a new administration to overturn those last minute rules makes it an effective strategy for the outgoing administration to project its influence beyond its term.”

– Charley Maresca, Director of Interagency Affairs

Last week, in a special meeting, the Massachusetts Legislative Joint Committee on Consumer Affairs heard from businesses and social service agencies about the unnecessary burden they face from recently adopted data security regulations. The Massachusetts Office of Consumer Affairs and Business Regulations has adopted data security regulations that far exceed comparable Federal Trade Commission requirements, despite language in the enabling legislation directing the agency to promulgate regulations that are consistent with federal rules.

Small businesses will bear an enormous burden from these overly prescriptive regulations. The Office of Consumer Affairs’ own estimates find that a 10-person business could spend $9,000 in the first year and $6,000 each year thereafter to be in compliance. One estimate of the aggregate cost of these regulations on Massachusetts businesses with fewer than 100 employees is $1.7 billion in the first year and $740 million each year thereafter.

Social service agencies, already reeling from sharp state budget cuts, are also placed at risk by this agency overreach. Michael Weekes, president of the Massachusetts Provider’s Council, the state’s largest organization of health and social service providers, said the regulations could cost an average-sized member between $5,000 and $15,000.

So, in the toughest economic climate in memory and in the face of stiff state budget cuts the Commonwealth of Massachusetts has elected to impose costly and unnecessary new regulations on the state’s smallest companies and social service agencies.

– Steve Adams, New England Regional Advocate

In September, the Staten Island BOC Women’s Business Center held the fourth annual “21st Century Business Woman Conference.” Participating were JoAnn Regan, deputy director of the West Brighton Community Local Development Corporation; Christine Serrano Glassner, Region II Advocate; Diane DiResta, owner of DiResta Communications; and Susan Meeker, executive director of the Women’s Business Center.

– John McDowell

            Senior Economist Jules Lichtenstein reports attending the National Economists Club luncheon on Thursday, November 13.  Len Nichols, Director of the Health Policy Program at the New America Foundation, discussed “Employer Health Costs in a Global Economy.”  He highlighted the merits and disadvantages of an employer-based health insurance system and pointed out that the properties of an employer system must be clarified before the political possibility of an alternative can be realized.  Len blogs on these issues at The New Health Dialogue Blog.

– John McDowell

            On Chief Counsel Tom Sullivan’s last day in office the MicroBusiness Journal posted a podcast of Tom and editor Dawn Rivers Baker discussing all things micro.  Now that podcast is available for all to hear.

            Dawn notes that:

“…his work has impacted the bottom line of millions upon millions of small business owners, who have been able to save billions of dollars in regulatory compliance costs over the last seven years through Advocacy’s … um … advocacy.

And the research funded and published by his office in that time has accomplished a very great deal for our overall understanding of small businesses, of microbusinesses, and of how both groups make critical contributions to the economy.”

            On November 18, the Ewing Marion Kauffman Foundation, the creators of Global Entrepreneurship Week, is live video streaming (and posting on-demand) the California Governor’s Conference on Small Business & Entrepreneurship.

            The webcast is here: http://www.kauffman.org/EventDetails.aspx?id=5116

Later this month, California Governor Arnold Schwarzenegger will host the Governor’s Conference on Small Business and Entrepreneurship.  The two-day conference will provide small business advocates and entrepreneurs the opportunity to share their ideas and recommendations for stimulating California’s economy by assisting the over 3.5 million small businesses in the state. 

Over 300 participants are expected to attend and craft policy recommendations for the state’s leaders on issues such as regulatory reform, taxation, healthcare, and entrepreneurial encouragement.

The conference was created to mirror the success of the 1995 White House Conference on Small Business, which drafted several policy recommendations that aimed to assist small businesses. Many of those recommendations have been adopted through legislation and federal regulations.

Region IX Advocate Mike Hull will represent the Office of Advocacy at the event.

For more information on the conference, please see http://guest.cvent.com/EVENTS/Info/Summary.aspx?e=ad7d2291-d911-4d94-aa92-99c3cbb9cea4

—Kate Reichert, Regulatory and Legislative Counsel

Chad Moutray, Advocacy’s chief economist, and Jules Lichtenstein, senior economist, attended the National Economists Club luncheon on Nov. 6^th in Washington D.C., featuring Stan Collender. Collender gave a post-election talk titled “The Morning After the Morning After: Outlook for the Budget,” and shared his views on the election.

Collender is managing director at Qorvis Communications in Washington, D.C., and is a frequent speaker on the budget and the economy. He indicated that in the current economic environment efforts to control federal budget deficits are likely to take a back seat to federal policymakers’ efforts to restore financial stability and economic growth.

Collender’s blog, www.capitalgainsandgames.com, discusses these issues further. Information about National Economists Club is located at www.national-economists.org.

—Jules Lichtenstein, Senior Economist

The Mine Safety and Health Administration (MSHA) has proposed the Alcohol- and Drug-Free Mines: Policy, Prohibitions, Testing, Training, and Assistance rule. [73 Fed. Reg. 52136 (September 8, 2008).]

Advocacy hosted a small business roundtable on October 30 to discuss the proposed rule and listen to the concerns of small mining operators.

Small business representatives were concerned that MSHA’s rule would disrupt their existing drug and alcohol programs, and many preferred that MSHA adopt a performance standard that establishes mandatory, minimum requirements for a drug and alcohol program and leaves it to the mine operator to implement.  They also felt that MSHA has understated the cost of the proposed rule, and that MSHA lacked sufficient data about drug and alcohol use at mines or the degree to which drugs and alcohol have been contributing factors in mine fatalities and injuries.

On November 6, based on what we learned, Advocacy submitted comments on the proposed rule to MSHA.  A one-page Fact Sheet about our concerns is also available.

We would be interested in any feedback you have about the proposed rule or our comments.

—Bruce Lundegren, Assistant Chief Counsel