Week in Review | The Regulatory Review

in the news

• The Federal Communications Commission (FCC) has proposed rules that would require mobile service providers to block unwanted or illegal text messages. The rule requires U.S.-based sending providers to block unacceptable texts to prevent illegal messages before the FCC sends notices. The FCC argued that the rule would protect consumers from harassing or fraudulent text messages. The FCC seeks comment on its text blocking strategy, including how long the blocking should last.
• The Internal Revenue Service (IRS) has begun piloting a new program that will allow some taxpayers to file their taxes for free. The program, called Direct File, will initially be open to federal and state employees in a limited number of states. Pilot is not yet available for individuals who itemize deductions, earn business income, or claim certain tax deductions. In announcing the launch of the program, the IRS explained that it is “starting small to get things off the ground” and will expand the pilot program if initial results are satisfactory.
• New York state lawmakers have introduced a package of bills aimed at curbing illegal motorcycle use. The new law requires mopeds, including electric scooters and bicycles, to be registered at the point of sale. The law also states that accidents involving mopeds must be reported. The package also includes legislation to increase criminal penalties for fleeing the scene of a crash involving an electric bicycle or scooter.
• The Office of Personnel Management (OPM) has issued a final rule prohibiting federal agencies from considering a candidate’s salary history when determining new employee salaries. OPM stated in the rule that salary history “may not be representative of the worker’s values, experience, and expertise and may contain or exacerbate bias.” The rule also builds on the Biden administration’s efforts to address wage inequality and promote equal pay.
• The U.S. Department of Commerce has proposed regulations governing two executive orders issued in 2021 and 2023 directing the Department to regulate infrastructure-as-a-service (IaaS) or cloud computing providers in their dealings with foreign customers. The regulations require providers to verify the identity of foreign customers, establish a process for IaaS providers to report any transactions that allow foreign customers to train large-scale AI models with malicious capabilities, and define several key terms. do.
• The Office of the Comptroller of the Currency has requested public comment on proposed rules to increase transparency in the merger review process involving national banks and federal savings associations. The proposed rule eliminates the agency’s current policy of approving mergers 15 days after the end of the comment period. Additionally, the proposed rule replaces the Streamlined Merger Review with the review process described in the Interagency Bank Merger Act Application, which requires additional explanation and information from the applicant.
• The U.S. Department of Energy has finalized updated energy efficiency standards for electric and gas cooktops and oven ranges. The Department of Energy said, “Approximately 97% of gas range models and 77% of electric range models on the market already meet these standards.” The Department of Energy estimates that over 30 years, the new standards will lower utility bills by $1.6 billion and reduce carbon dioxide emissions by nearly 4 million metric tons.
• The FCC has proposed a rule requiring pairing compatibility between hearing aids and wireless handset models, such as cordless phones. The FCC explained that this rule would increase accessibility for the 37.5 million Americans who are hearing impaired. The FCC concluded that 100% hearing aid compatibility for wireless handset models is achievable, given that 93% of available wireless handset models are already compatible.

What to read this week

• In a recent research paper published by the National Bureau of Economic Research, Gautam Gowrisankaran, professor of economics at Columbia University, Ashley Langer, professor of economics at the University of Arizona, and Mar Reguant, professor of economics at Northwestern University, explore how regulation can Let’s find out if it’s happening. The structure of public utilities influences the transition away from fossil fuels. Gowrisankaran, Langer, and Reguant explain that regulators limit electric utilities’ profits to a “fair” return on capital. This model can lead utilities to overinvest in capital, which can make it more difficult for utilities to adapt to changing conditions. As a solution, the authors recommend that this approach be accompanied by a temporary transfer of utilities.
• In a recent article Duke Journal of Law and Contemporary IssuesUC San Francisco law professor Jodi L. Short has argued that applying business management techniques to regulation, known as regulatory managerialism, fosters anti-administrative sentiment and impedes the development of effective regulations. Short explained that business tools and techniques, such as outsourcing and marketing, lose their effectiveness and functionality when applied in a regulatory context. Without acknowledging these differences, regulatory managerialism requires governments to act like corporations, which Short argued is a form of “gaslighting.” To combat this gaslighting, Short suggested that agencies should reaffirm their commitment to public goals over corporate interests and communicate their accomplishments to the public to counter negative narratives about regulation.
• In a recent Brookings Institution article, Nathan Donley, director of environmental health sciences at the Center for Biological Diversity, and Robert Bullard, a professor at Texas Southern University, argued that pesticide regulations continue to disproportionately burden people of color and low-income people. community. Donley and Bullard explained that these groups are more likely to be exposed to pesticides through their diet, housing, and occupation. Donley and Bullard cited the influence of special interest groups, such as the pesticide industry, as a barrier to effective regulation. To address this issue, Donley and Bullard suggested that the U.S. Environmental Protection Agency take steps to reduce pesticide exposure, including monitoring the effects of approved pesticides and strengthening worker protections.

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