POLICY ROUNDUP

A coalition of 86 trade associations led by the Chamber of Commerce are upping the pressure on Congress to roll back a recent ruling by the National Labor Relations Board, the main federal labor law enforcement agency, expanding legal liability for businesses.

In a Dec. 1 letter to Rep. Tom Cole, R-Okla., chairman of the House Appropriations Committee’s Labor, Health and Human Services, and Education Subcommittee, the coalition said it is “vital” to nullify the board’s decision in the 2015 Browning-Ferris case that said contractors can be held legally liable for labor violations by subcontractors.

The business groups warned the ruling could mean “companies will face liability and collective bargaining obligations whenever the NLRB deems they have indirect or even just potential, unexercised control over another company’s employees.”

The coalition wants an amendment placed in the fiscal 2016 appropriations bill for the departments of Labor, Health and Human Services and Education specifically preventing the labor board from applying the board’s new “joint employer” standard in cases. Such an amendment almost certainly would provoke a veto threat from President Obama.

Business groups have been increasingly alarmed by the aggressive stance the labor board has taken under Obama to expand its authority and have repeatedly called on lawmakers to rein it in. – Sean Higgins

EDUCATION

Closing bad schools helps students

The closure of nearly 30 schools in New York City last decade did not hurt student learning, according to a study by the Research Alliance for New York City Schools.

Between 2002 and 2008, New York City closed 29 large, low-performing schools amid intense opposition. But students who were enrolled during the phase-out process weren’t hurt when their schools closed, said James Kemple, the alliance’s executive director.

“[Post-closure] students ended up going to schools that were higher performing than the closed schools, both in terms of the achievement and attendance of incoming students and on the basis of longer-term outcomes,” Kemple wrote. “In addition, ‘post-closure’ students’ outcomes improved significantly more than students in the comparison group, including a 15-point increase in graduation rates.”

Along with the closures, the city opened new, smaller schools and expanded school choice at the high school level. Although outcomes have improved, the reforms have not been a cure-all, Kemple wrote. Graduation rates are still woefully low.

An April study from the Fordham Institute found that closing bad urban public schools helped students learn more in their new schools. Those students learned the equivalent of 49 extra days in reading and 34 extra days in math. – Jason Russell

TAXES

Revamping IRS fraud detection could waste $18 million a year

The Internal Revenue Service’s attempt to update its fraud detection system could wind up wasting millions of dollars a year, a new audit finds.

A report from the Treasury Inspector General for Tax Administration concluded the IRS didn’t have an efficient plan for replacing the decades-old Electronic Fraud Detection System with the newer version, called the Return Review Program.

Running the two systems simultaneously could cost taxpayers $18.2 million a year, mostly from additional operations and maintenance costs, according to the report.

IRS hasn’t yet chosen a termination date or finalized a plan for shutting the system down. The IG recommended IRS’ chief technology officer create a clear retirement plan for the old system, and that the agency swiftly replace it as soon as it confirms the new system can identify potential fraud at least as effectively as the 1990s-era technology. According to the report, IRS agreed with the recommendations, and plans to finalize a retirement plan for the system by January.

In June, the IRS said it was also considering issuing new identity-theft protections, such as annual unique passcodes for each taxpayer, after identity thieves filed for 15,000 fraudulent tax refunds after accessing information from 100,000 tax returns. – Joana Suleiman

ENVIRONMENT

EPA rolls out $283 million in new rules for refiners

The Environmental Protection Agency has finalized rules for cutting air pollution at refineries that will cost an estimated $283 million.

The regulations, finalized last week, make adjustments to the proposed regulations that could present some challenges for producers of gasoline, diesel fuel and other products made from crude oil.

The first so-called “fenceline” monitors at refineries will be required to determine when harmful pollutants are released from the facilities. The rules also make emissions standards stricter for flares, pressure relief devices, storage tanks and delayed coker operations.

A refinery must receive an air permit from the EPA to operate under the agency’s new standards. The refiner must demonstrate that it has used the best available emission control technology to continue operations, or be deemed out of compliance and potentially penalized.

The EPA estimates the new regulation will result in 660,000 tons of carbon dioxide being removed from the atmosphere per year, along with 5,200 tons per year of toxic air pollutants and 50,000 tons per year of volatile organic compounds. – John Siciliano

MARIJUANA

Lawmakers apply pressure to eliminate DEA funds

House members want to cut off funds for the Drug Enforcement Agency’s anti-marijuana program, since the government’s drug enforcers receive $18 million a year to get rid of a drug that is legal in more than half the nation.

Rep. Ted Lieu, D-Calif., and a band of like-minded House members submitted a letter last month to House Speaker Paul Ryan, Minority Leader Nancy Pelosi, House Appropriations Chairman Hal Rogers, R-Ky., and Ranking Member Rep. Nita Lowey, D-N.Y.

The group insists that $9 million, or half of the money spent, would be better invested in programs that help victims of domestic abuse and sexual assault. In June, the House signed off on several proposals aimed at prohibiting the DEA from using tax dollars to further its agenda. As much as $23 million could be cut from the DEA budget in the upcoming spending package.

“The Cannabis Eradication Program’s sole mission is to eradicate marijuana plants and arrest growers. However, historical data indicates that the vast majority of plants seized under this program are wild plants descendant from industrial hemp,” reads the letter. “There is no justification for spending this kind of money on an antiquated program never shown to be effective.” – Joana Suleiman

HEALTHCARE

Administration updates HIV/AIDS strategies

The federal government said it would improve testing as it announced a new action plan for agencies to help curb HIV/AIDS infections and improve care.

The strategy includes coordinating among federal agencies such as the Centers for Medicare and Medicaid Services and localities on how to increase access to testing and care.

In addition, the Centers for Disease Control and Prevention will work to identify ways to increase HIV testing among patients in health centers who are at risk for HIV infection, the White House said. And the Department of Housing and Urban Development will work to improve the ability of HUD-funded “Continuums of Care” to identify homeless people living with HIV and link them with housing assistance, medical care and other services, the White House said.

The federal government also will work on ways to better disseminate information and improve access to pre-exposure prophylaxis, a drug that can be taken by people at high risk for HIV to prevent the virus. Obama instructed the Department of Health and Human Services to take an inventory of all PrEP programs and identify any gaps in research and policy needs. – Robert King