Dive Brief:

• Presidential candidate Sen. Ted Cruz (R-TX) said during a Teleforum Wednesday afternoon with construction industry and other business association groups that, if elected president, he plans to improve the nation's economy through tax reform — including a 16% flat business tax rate — and major regulatory reform, to "pull back the job-crushing regulations that are killing small businesses."
• One of the main regulatory issues on Cruz's radar, he said, is the Environmental Protection Agency's Waters of the United States rule, a measure that redefines which bodies fall under federal regulatory control to "all tributaries, adjacent waters, wetlands and other waters" — which has been largely opposed by building industry groups and professionals.
• The Teleforum was a part of a series in which a coalition — including the Associated General Contractors of America, Associated Builders and Contractors, Business-Industry Political Action Committee, National Association of Manufacturers, National Federation of Independent Business and National Retail Federation — invited candidates from both parties to address business concerns.

Dive Insight:

The Waters of the U.S. rule has been opposed by the National Association of Home Builders and other construction groups, as they have claimed the new terms are too broad and vague, and have said the new definition could subject ponds, creeks, and ditches on private property to federal oversight and their owners to additional regulatory red tape.

Cruz also referenced his plan to pull back regulatory efforts from the National Labor Relations Board, as the board's initiatives have created the need for "fundamental labor reform to stand up against the abuses of union bosses," he said.

In September, the National Labor Relations Board's major ruling — which stated that companies can be held equally responsible for labor violations committed by their contractors — received major pushback from the construction industry. Builders said the new labor law puts them at risk for problems stemming from the work of subcontractors — which are a pivotal part of a construction business. The NLRB ruled that, in some cases, subcontractors can be considered "joint employees" of their employers.

Cruz was the third candidate to accept the group's invitation to participate in a forum with member groups. Sen. Marco Rubio and former Florida Gov. Jeb Bush already spoke with the group. Most construction industry associations have not yet officially endorsed a presidential candidate, with the exception of the United Brotherhood of Carpenters and Joiners of America, which has endorsed Hillary Clinton.