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Obama Team Tracks Bush's `Midnight' Rules Rush: Cindy Skrzycki

By Cindy Skrzycki


Nov. 11 (Bloomberg) -- As the Obama transition team prepares for the president-elect's Jan. 20 inauguration, it is tracking the ``midnight'' regulations being churned out in the final days of the Bush administration.

Regulatory policy may not have as high a profile as economic issues and foreign policy for Obama. Still, many of these latter- day Bush rules are flashpoints for public-interest groups, Democrats in Congress and the business community.

Among the regulations being monitored are a proposal to end a ban on carrying loaded guns in national parks; a Labor Department plan to change the way regulators assess risk for jobs, especially those that expose workers to chemicals; and a proposal that could make it harder for women to get federally funded reproductive health care.

``These are the ones worth watching,'' said Matt Madia, regulatory policy analyst at OMB Watch, a nonprofit group critical of many regulatory policies under President George W. Bush. ``Most of them relax existing requirements. They make it easier for industries to pollute or deny a worker medical leaves.''

Some 130 rules could be completed before Bush leaves. The White House has finished reviews of 100 rules since Sept. 1, up from 36 in the same period last year. Representatives of chemical makers, scallop fishermen and kidney dialysis companies are among those pressing their case with White House officials, according to a public list of the meetings.

Blocking Clinton

The new president may issue executive orders to reverse some Bush policies. He may get help from a law passed by the Republican-controlled Congress in 1996 to review and eliminate rules from the administration of President Bill Clinton that it didn't like. The law has been successfully used once, in 2001, to kill a rule designed to prevent repetitive-motion injuries in the workplace.

The same day Bush was inaugurated in 2001, chief of staff Andrew Card issued an order blocking Clinton regulations that hadn't taken effect. Ninety final rules had their effective dates delayed, a 2002 Government Accountability Office report found.

To avoid a similar fate when Obama takes office, Bush regulators issued a call for what could be called 11 o'clock regulations. In May, White House chief of staff Joshua Bolten told agencies that except in ``extraordinary circumstances,'' they should propose rules by June 1 so final versions could be issued by Nov. 1.

That gave them time to take effect before Obama is sworn in. Final rules are often challenged in court.

`Ghoulish' Regulations

Congressional Democrats say they are being vigilant. On Halloween, House Speaker Nancy Pelosi of California issued a list of ``Ghoulish Midnight Regulations'' -- 11 Bush rules that involve changes in laws governing such issues as air pollution limits, disability rights, Medicaid reimbursement, and how long truck drivers can be on the road.

``This is just a sampling,'' Nadeam Elshami, a spokesman in Pelosi's office, said of the list. ``We are talking to committee chairs on how to stop or reverse them.''

One possibility is blocking funding. Another is the law Republicans aimed at Clinton rules.

With a Democratic Congress and president, the stars are lined up to meet the complicated procedural deadlines of the Congressional Review Act. Rules issued after mid-May would be potentially eligible to be disapproved during the next Congress.

``The Congressional Review Act, only being used once before, does add a new weapon and complication to the process,'' said Randel Johnson, vice president of labor, immigration and employee benefits at the U.S. Chamber of Commerce, the business lobby in Washington.

Trial Lawyers

Trial lawyers, who often sue corporations on behalf of consumers, say more than 60 rules contain provisions making it impossible to sue in state courts for negligence on the part of manufacturers.

These pre-emption clauses are part of safety regulations issued by the Food and Drug Administration, as well as Department of Transportation rules covering the operation of door locks, how many seat belts must be in vehicle, and the required strength of vehicle roofs to withstand rollovers, according to the Washington-based American Association for Justice.

``The next administration has the task of addressing these in a timely fashion,'' said Gerie Voss, director of regulatory affairs for the trial lawyers' trade group.

Violating the Decree

In September, the Institute for the Study of Regulation at the New York University School of Law wrote the White House to complain that at least three new rules violated the Bolten decree against what the institute called ``last-minute'' policymaking.

Susan Dudley, the White house's top rule reviewer, responded in an Oct. 9 letter, saying the memo wasn't ``intended to be a moratorium.'' She also signaled there will be post-November Bush rulemaking. The Bolten memo contemplates it would be appropriate, with White House approval, for some rules to proceed ``without regard to deadlines.''

(Cindy Skrzycki is a regulatory columnist with Bloomberg News.)

To contact the writer of this column: Cindy Skrzycki at cskrzycki@bloomberg.net

Last Updated: November 11, 2008 00:00 EST

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