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NRCA issues statement supporting regulatory reform legislation

October 7, 2015

The Honorable Ron Johnson
Chairman, Homeland Security and Government Affairs Committee
U.S. Senate
Washington, DC 20510

Dear Mr. Chairman;

The National Roofing Contractors Association (NRCA) strongly supports regulatory reform legislation the committee will consider on October 7, 2015. This package of reforms will reduce the burden of excessive regulations on job creators and the U.S. economy. NRCA commends you for your leadership on this important issue and remains committed to working with Congress on a bipartisan basis to achieve true regulatory reform.

Established in 1886, NRCA is one of the nation's oldest trade associations and the voice of professional roofing contractors worldwide. NRCA has approximately 3,500 members in all 50 states who are typically small, privately held companies, with the average member employing 45 people and attaining sales of about $4.5 million per year.

Roofing contractors continue to face an unprecedented array of regulations issued by federal agencies, with even more regulations expected in the coming years. In 2011, the U.S. Small Business Administration estimated the total cost of compliance with all federal regulations nationally was $1.75 trillion, with the greatest burden falling on small businesses. The cumulative burden of often counter-productive regulations is highly disruptive to entrepreneurs seeking to start and grow a business. Firms of all sizes consistently cite growing regulatory burdens and the uncertainty this causes is a major obstacle to hiring.

NRCA supports the following bipartisan regulatory reform initiatives and urges members of the committee to approve these measures and send them to the full Senate for consideration.

Regulatory Improvement Act of 2015 (S. 708). This legislation takes the approach of the successful Base Realignment and Closure (BRAC) Commissions by establishing a bipartisan, blue-ribbon commission of regulatory experts with the task of developing recommendations for elimination, consolidation, or repeal of regulations. The commission will have the ability to take testimony, consult with industry and agency experts, and solicit public comments in preparing a proposal to Congress, which will then vote on the recommendations as package.

Independent Agency Regulatory Analysis Act of 2015 (S. 1607). NRCA is aware that independent federal agencies— including the SEC, the CFTC, the NLRB, and others—exercise vast power over major sectors of our economy, yet are exempt from some regulatory requirements, including cost-benefit analysis of major rules (those with annual impacts of $100 million or more). These agencies are also exempt from review by the Office of Information and Regulatory Affairs (OIRA), which provides a valuable check on the quality of agency rulemakings. This bill would close that gap by authorizing the president to bring independent agencies into the same analysis and review process of the other agencies.

Principled Rulemaking Act of 2015 (S. 1818). This legislation codifies a series of good government and rulemaking principles that have largely been in effect for over 20 years, across administrations of both parties. In short, it ensures that agencies promulgate rules based on necessity, using best available information, and provide opportunity for meaningful public input in the regulatory development process.

Early Participation in Regulations Act of 2015 (S. 1820). This legislation requires that, for major rules, federal agencies must employ an Advanced Notice of Proposed Rulemaking, which engages the public and stakeholders earlier in the process of developing the regulation. This will ensure there is more opportunity for active and meaningful public input in the earliest stages of development of major regulations.

Smarter Regs Act of 2015 (S. 1817). This legislation builds an automatic lookback requirement into the rulemaking process for all major rules. Under this requirement, federal agencies, working with OIRA guidance, will need to create a plan to reassess the rule's effectiveness, cost, and achievement of its purpose within 10 years of going into effect.

NRCA believes this series of reforms will provide more opportunities for public input and more effective cost/benefit analysis during the development of regulations. Ultimately, enactment of this legislation will help ensure that regulations are not burdensome on employers—our nation's job creators—while also still achieving public policy goals. These reforms are needed now more than ever to provide businesses with the certainty they need to create jobs and get our economy back on track.

NRCA urges members of the committee to approve these regulatory reforms expeditiously. Thank you for your consideration of NRCA's views on this crucial issue. If you have questions or need more information please contact Duane Musser or Drew Felz at (202) 546-7584.

Sincerely,

Lindy Ryan
Tecta American Southeast LLC
Chairman, NRCA



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