Regulations from the Executive in Need of Scrutiny Act of 2015

Floor Speech

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Mr. Chairman, I would like to thank the leader and Chairman Goodlatte for bringing H.R. 427 to the floor today.

I introduced the REINS Act because people in my home State of Indiana want to hold someone--someone--accountable for the job-killing rules and regulations coming out of Washington, D.C.

Each day, government agencies impose an average of 10 new regulations on America's businesses, both big and small. It is no surprise to discover that the costly, confusing government regulations that come out of this body--ObamaCare mandates, EPA regulations, or IRS tax penalties--are exciting some feedback from my constituents.

In fact, the collateral damage wrought by Federal Government regulations is consistently cited as one of the biggest barriers to business creation and expansion and growth in household income in this country.

One Indiana businessowner, who employs 16 family men and women in Floyd County, recently called my office. He wanted to know who had voted in support of a peculiar new IRS rule that is going to penalize him if he helps his employees pay for health insurance.

Now, this IRS rule can cost employers more than $36,000 per employee per year if they continue to offend the sensibilities of Washington's regulating class by reimbursing workers for healthcare coverage.

As the son of a small-business owner and someone who hears a lot from local businesses back in Indiana about their challenges, about their opportunities, I know how costly regulations impact the small company's bottom line.

While this broad, new IRS rule will undoubtedly have a major impact on smaller enterprises across the Nation, it was written by unelected, unaccountable regulators here in Washington, D.C. It never came before Congress for an up-or-down vote.

That is what the REINS Act is all about. It is about holding officials at Federal agencies and the Congress of the United States accountable for the harmful regulations drummed up each year, regulations which are laws in everything but name. They hurt American jobs and wages when they are implemented, and they need an additional filter of accountability here in the people's House.

Who should be held responsible, I would ask opponents of this legislation, for these rules that have a $100 million-plus impact on our economy if not the people's elected representatives in Congress? For too long, Congress has delegated much of its constitutional authority to executive agencies here in Washington, D.C. This has empowered unelected Federal officials to implement sweeping rules and regulations that are often ineffective, redundant, counterproductive, and costly.

Consider the impact of such rules on another business in my home district in Indiana. It is a local farming operation. When we add up the impact of county, State, and Federal regulations, these Hoosier farmers must meet hundreds of reporting requirements dictated by an alphabet soup of different government agencies--EPA, USDA, HHS, IRS, NLRB. It goes on and on and on. It is mind numbing, really.

The burden on their operation and its ability to grow and compete has been punishing. For example, one regulation alone requires them to treat water left over from cracking eggs like industrial waste. It costs hundreds of thousands of dollars each year for this business in consulting and equipment fees just in compliance costs.

Now, with the EPA assuming broad new authority over bodies of water in the United States, these farmers are taking more time and resources away from their farm to track these ill-defined WOTUS regulations coming down the pike.

Now, America's job creators will tell you the future is uncertain. Our rulemaking process is out of the people's control. It needs to be reined in. Wouldn't it make sense for small-business owners and farmers to have a larger voice, to be given a bigger say in the rulemaking process, especially when regulations can dictate whether their business succeeds or fails?

That is exactly what my legislation, the REINS Act, provides. It gives the job creators and the American people a voice. It injects a measure of accountability back into the democratic process. The REINS Act requires that Congress must approve any new major rule proposed by the executive branch before it can be enforced on the American people.

Remember, our small businesses are our Nation's economic engine. They represent 99.7 percent of all national employers, 56.1 million of our Nation's private workforce. Small and family-owned businesses, new startups, and entrepreneurs create two-thirds of all job growth in the United States.

Meanwhile, small businesses spend an estimated $10,500 per employee to comply with Federal regulations. It is no wonder that, for the first time in 35 years, more American companies are being destroyed than they are being created each year.

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Compliance with costly Federal regulations leads to higher consumer costs, lower take-home pay, and even reduced hiring.

A businessowner who owns a parts manufacturing company in Wabash, Indiana, summed it up best. From his standpoint, when it comes to the vast array of rules and regulations his company must follow, they are not only onerous; they add zero value to his business, and they put him at a competitive disadvantage to foreign competition.

We could, frankly, spend a lot more time than today here on the floor going through each of the different challenges with our Federal regulation system, but in the end, Congress needs to be forced to account for the regulations resulting from our sweeping legislation like ObamaCare and Dodd-Frank.

The REINS Act accomplishes this objective. The REINS Act, like the Hoosiers I represent, demands accountability. I commend it to the consideration of all my colleagues.

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