Contact: Bonnie Merrill Limbach
(202)974-5210

FOR IMMEDIATE RELEASE

U.S. HOUSE OF REPRESENTATIVES APPROVES SPI-BACKED REGULATORY REFORM BILL

WASHINGTON (July 26, 2000) – The U.S. House of Representatives yesterday unanimously passed a regulatory reform bill long championed by The Society of the Plastics Industry, Inc. (SPI).

H.R. 4924, the "Truth in Regulating Act of 2000," would establish within the General Accounting Office (GAO), a Congressional agency, a capability to examine certain proposed rules by regulatory agencies as to their costs, benefits and alternative compliance measures. The new GAO office has been referred to in House debate as the Congressional Office of Regulatory Analysis (CORA)

The bill's provisions would go into play when a regulatory agency publishes a proposed or final rule that has an annual effect on the economy of $100 million or more or "adversely affects in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety." In that event, the chairman or ranking member of a Congressional committee could request CORA to evaluate the rule. CORA's report back to the requesting chairman or ranking minority member would need to be completed within 180 days, which generally coincides with the comment period for proposed rules.

The Senate passed a similar bill, S 1198, on May 9. Because there are differences in the two measures, a House-Senate conference committee must be convened to present a final version of the legislation to Congress. The conference is expected to take place in August, with a final vote sometime after Labor Day.

Lew Freeman, SPI vice president of government affairs, said the legislation could have profound impact on the plastics industry.

"Many of the regulatory proposals that impact the plastics industry are often based upon questionable judgments about costs and benefits, as well as what will be required for compliance," Freeman said. "CORA would empower Congress to raise significant questions on these topics before a proposed rule is finalized.

"The very existence of a Congressional authority to look into proposed major rules would become a significant political force to influence the thinking of regulatory agencies in their development of rules," Freeman continued. "For instance, had this agency been in existence, it is likely that OSHA would have developed its ergonomics proposal with greater sensitivity to some of its provisions, resulting in a more reasonable process."

Freeman said CORA is expected to be of particular benefit to small business. "In the legislative history of the bill," he explained, "one of the frequently cited reasons for its need was to provide a way for Congress to better investigate impacts of proposed rules on small companies."

"CORA would become a center for regulatory expertise within the Congress – a capability that does not now exist," Freeman added. "Overall, the legislation significantly strengthens Congress's existing authority of oversight of the federal regulatory process."

SPI was among the first groups to take an interest in this legislation and the only organization that consistently has been involved in support of it, according to Freeman, who testified at the first hearing on the proposed law in 1997.

"In fact," he continued, "SPI's involvement in working for passage of this bill is part of a concerted, long-term commitment of the association that began in 1990 and aimed at improving the regulatory process by insisting upon greater reliance by regulators on cost/benefit analysis, risk assessment and dependency upon sound science, alternative compliance measures and peer review in the development of regulatory proposals."

Founded in 1937, The Society of the Plastics Industry, Inc is the trade association representing one of the largest manufacturing industries in the United States. SPI's 1,700 members represent the entire plastics industry supply chain, including processors, machinery and equipment manufacturers and raw material suppliers. The U.S. plastics industry employs 1.5 million workers and provides $304 billion in annual shipments.

Back to Top

More About SPI:   Vision and Mission . Membership . Business Units . Regional Offices . News and Publications . Calendar of Events . Terms and Conditions of Use