Joint Economic Committee on Cutting Red Tap through Better Analysis
On April 30th, the Joint Economic Committee (JEC) held a hearing on the “First Step to Cutting Red Tape: Better Analysis.”
Opening Remarks:
Vice Chairman Senator Amy Klobuchar (D-Minn.) opened with remarks that she insisted Congress act to cut red tape, including at the Environmental Protection Agency (EPA).
Chairman Kevin Brady (R-Texas) gave opening remarks and introduced the witnesses.
Senator Dan Coats (R-Ind.) stated that after the financial crisis, small community banks have to outsource regulatory compliance and it is not fair to over burden them with these rules that came from Dodd-Frank.
Jay Timmons, President and Chief Executive Officer of the National Association of Manufacturers (NAM), stated that he supports the bipartisan efforts of the Joint Economic Committee. He continued that the regulatory state is growing in size and complexity. The first step, he explained, would be to change the rhetoric on regulation to build a more unified message.
Michael Greenstone, 3M Professor of Environmental Economics at the Massachusetts Institute of Technology (MIT), testified that he supports S.1472, the Strengthening Congressional Oversight of Regulatory actions for Efficiency Act. Kobuchar and Senator Susan Collins (R-Maine) introduced this bill to require the Director of the Congressional Budget Office (CBO) to establish and maintain a separate Regulatory Analysis Division within CBO responsible for assessing the impact of federal rules and regulations. Greenstone said that this is a way to improve the regulatory system and Congress must start to amend reviews, commit to new rulemakings, and reform budgetary reviews. Greenstone explained that these tools would allow policymakers to better oversee the regulatory process.
John D. Graham, Dean of the School of Public and Environmental Affairs at Indiana University, testified in support of expanding CBO and argued for expanding its capabilities to congressional analysis. Graham suggested that this would be modeled after the new analytical body that is a part of the European Parliament. In addition, Graham urged for the coordination of federal and state governments.
Shaye Mandle, Executive Vice President and Chief Operating Officer of LifeScience Alley, testified regarding the negative impact of regulations on the pharmaceutical and medical device industries. He supported a public-private consortium and commended the Food and Drug Safety and Innovation Act (FDASIA) as way that legislators worked with the industry.
Question and Answer:
Brady said that he had never seen the level of tension between public and private industry that he sees today. He asked if any of the panelists objected to cost benefit analysis as applied to federal agencies and inquired about how agency bias is formed. The panelists did not object to cost benefit analysis as applied to federal agencies. Timmons responded that the more cost benefit analysis the better. He would prefer CBO to conduct regulatory analysis. Mandle responded that cost benefit analysis should be best applied to areas where value is added.
Representative Carolyn Maloney (D-NY) asked how to prevent future events through regulation. Timmons responded that not all regulation is bad. Maloney continued, saying that if Congress is going to respond to events with regulation, then mechanisms should be put in place. She pointed to the example of the Terrorism Risk Insurance Authorization (TRIA). Next, Maloney asked for the witnesses to respond to the question of whether or not it worked to have a five year sunset period as had been done in the past. Graham explained that he is not aware of a sunset law ever passed at the federal level.
Coats explained that reforms are discussed often but do not get enacted and asked about what it takes to spur a change in culture. The witnesses simply agreed.
Representative Erik Paulsen (R-Minn.) said that it is the responsibility of the JEC to make recommendations on these policies. Paulsen asked Mandel to talk about the impact of the medical device tax and the impact on small companies. Mandel responded that 80 to 90 percent of medical device companies have less than 50 employees. The increased regulatory timetables are significantly longer and are drying up the early stages of investment, slowing the time it takes to bring a product to market.
Senator Mike Lee (R-Utah) asked the panelists to comment on the REINS Act. Graham suggested that Congress start with Greenstone’s idea to conduct analysis first.
For more information on this hearing, please click here.
,Blog Tags:,Blog Categories:,Blog TrackBack:,Blog Pingback:No,Hearing Summaries Issues:General,Hearing Summaries Agency:Special Event,Publish Year:2014
On April 30th, the Joint Economic Committee (JEC) held a hearing on the “First Step to Cutting Red Tape: Better Analysis.”
Opening Remarks:
Vice Chairman Senator Amy Klobuchar (D-Minn.) opened with remarks that she insisted Congress act to cut red tape, including at the Environmental Protection Agency (EPA).
Chairman Kevin Brady (R-Texas) gave opening remarks and introduced the witnesses.
Senator Dan Coats (R-Ind.) stated that after the financial crisis, small community banks have to outsource regulatory compliance and it is not fair to over burden them with these rules that came from Dodd-Frank.
Jay Timmons, President and Chief Executive Officer of the National Association of Manufacturers (NAM), stated that he supports the bipartisan efforts of the Joint Economic Committee. He continued that the regulatory state is growing in size and complexity. The first step, he explained, would be to change the rhetoric on regulation to build a more unified message.
Michael Greenstone, 3M Professor of Environmental Economics at the Massachusetts Institute of Technology (MIT), testified that he supports S.1472, the Strengthening Congressional Oversight of Regulatory actions for Efficiency Act. Kobuchar and Senator Susan Collins (R-Maine) introduced this bill to require the Director of the Congressional Budget Office (CBO) to establish and maintain a separate Regulatory Analysis Division within CBO responsible for assessing the impact of federal rules and regulations. Greenstone said that this is a way to improve the regulatory system and Congress must start to amend reviews, commit to new rulemakings, and reform budgetary reviews. Greenstone explained that these tools would allow policymakers to better oversee the regulatory process.
John D. Graham, Dean of the School of Public and Environmental Affairs at Indiana University, testified in support of expanding CBO and argued for expanding its capabilities to congressional analysis. Graham suggested that this would be modeled after the new analytical body that is a part of the European Parliament. In addition, Graham urged for the coordination of federal and state governments.
Shaye Mandle, Executive Vice President and Chief Operating Officer of LifeScience Alley, testified regarding the negative impact of regulations on the pharmaceutical and medical device industries. He supported a public-private consortium and commended the Food and Drug Safety and Innovation Act (FDASIA) as way that legislators worked with the industry.
Question and Answer:
Brady said that he had never seen the level of tension between public and private industry that he sees today. He asked if any of the panelists objected to cost benefit analysis as applied to federal agencies and inquired about how agency bias is formed. The panelists did not object to cost benefit analysis as applied to federal agencies. Timmons responded that the more cost benefit analysis the better. He would prefer CBO to conduct regulatory analysis. Mandle responded that cost benefit analysis should be best applied to areas where value is added.
Representative Carolyn Maloney (D-NY) asked how to prevent future events through regulation. Timmons responded that not all regulation is bad. Maloney continued, saying that if Congress is going to respond to events with regulation, then mechanisms should be put in place. She pointed to the example of the Terrorism Risk Insurance Authorization (TRIA). Next, Maloney asked for the witnesses to respond to the question of whether or not it worked to have a five year sunset period as had been done in the past. Graham explained that he is not aware of a sunset law ever passed at the federal level.
Coats explained that reforms are discussed often but do not get enacted and asked about what it takes to spur a change in culture. The witnesses simply agreed.
Representative Erik Paulsen (R-Minn.) said that it is the responsibility of the JEC to make recommendations on these policies. Paulsen asked Mandel to talk about the impact of the medical device tax and the impact on small companies. Mandel responded that 80 to 90 percent of medical device companies have less than 50 employees. The increased regulatory timetables are significantly longer and are drying up the early stages of investment, slowing the time it takes to bring a product to market.
Senator Mike Lee (R-Utah) asked the panelists to comment on the REINS Act. Graham suggested that Congress start with Greenstone’s idea to conduct analysis first.
For more information on this hearing, please click here.