Category Archives: Executive Oversight
On January 26, 2011, in his State of the State address, Utah Governor Gary R. Herbert said that “most important ways government can nurture a business-friendly environment” is to “make regulation fair”. Then, taking a measured approach, Governor Herbert said:
I understand that the purpose of government regulation is to maintain a level playing field. As a small business owner, I have also experienced the cost and frustration of over-reaching and irrational regulation. In order to separate regulations that serve an important purpose, from those regulations that serve no purpose at all, I have asked each member of my Cabinet to review existing business regulations and determine which could be kept, which should be modified, and which will be eliminated.
Governor Herbert’s state of the state address is available at http://www.utah.gov/governor/news_media/article.html?article=4169. As more information becomes available about the implementation of this Cabinet-level review of regulation, it will be posted here.
On January 10, 2011, Ohio Governor John Kasich signed Executive Order 2011-01K, “Establishing the Common Sense Initiative.” This order creates “a process for independently evaluating the economic impact of agency rules and regulations on small businesses in Ohio.”
It does not appear that the office of Governor Kasich issued a press release related to the order. The full text of the executive order is available online at http://business.ohio.gov/docs/ExecutiveOrder2011-01K.pdf.
On January 10, 2011, Maine Governor Paul LePage issued Executive Order 09 FY 11/12, entitled “An Order to Improve Review of Rulemaking Process.” The order establishes gubernatorial review of certain rules. The full text of the executive order is available online at http://www.maine.gov/tools/whatsnew/index.php?topic=Gov_Executive_Orders&id=182022&v=article2011.
On January 3, 2011, Governor Brian Sandoval signed Executive Order 2011-01, entitled “Establishing a Freeze on Proposed Regulations.” A press release related to the order clarified the governor’s position.
“I’ve been clear that my number one priority is economic development and freezing archaic and ineffective regulations until the end of this year will help promote business,” Governor Sandoval said. “As I said in my inaugural address today, our generation must commit to bringing Nevada’s economy, workforce and schools safely into this new reality in which we find ourselves.”
The press release further states:
The first executive order, focusing on economic development, establishes a freeze on all proposed administrative regulations until January 1, 2012, with certain exceptions for regulations that affect public health, public safety and security, and regulations that are necessary in the pursuit of federal funds and certifications. The freeze applies only to those agencies, boards and commissions which fall within the governor’s purview. Sandoval said the freeze will help stabilize Nevada’s business climate and make it easier for firms to expand and create jobs.
The full text of the executive order is available at http://ndep.nv.gov/docs_10/exec-order-2011-01.pdf.
On January 21, 2011, Kansas Governor Sam Brownback signed Executive Order 11-01 to establish the Office of the Repealer in the Kansas Department of Administration.
In a press release related to the order, the Governor’s Office explains the order:
“My number one priority is to get our state’s economy growing again. With the help of Kansans, the Office of the Repealer will work to identify laws and regulations that are out of date, unreasonable, and burdensome. Laws and regulations shouldn’t hinder opportunities for Kansans and Kansas businesses,” Gov. Brownback said.
KDA Secretary Dennis Taylor will serve as the Repealer. The executive order sets out the office’s duties:
- Investigate the system of governance of the State of Kansas including its laws and regulations to determine instances in which those laws and regulations are unreasonable, unduly burdensome, duplicative, or contradictory.
- Establish a system for receiving public recommendations suggesting various laws and regulations to be considered for possible repeal. This system will include an online portal for receipt of public comments.
- Make recommendations for either outright repeal or for modification to be delivered to the originating body of such law or regulation. The recommendation will provide specific details with justification for the requested repeal or modification.
- Implement a tracking system to follow the action taken by the originating body on any recommendation made by the Office of the Repealer in order to prepare regular reports to the Governor regarding the progress of repeal or modification.
Brownback said the Office of the Repealer will also have the authority to determine and implement such internal policies, standards, and procedures as may be necessary for the orderly and efficient carrying out of its mission.
The order becomes effective upon its filling with the Secretary of State’s office.
The full text of the executive order is available online at https://governor.ks.gov/frontpagenews/2011/01/21/1-21-11-executive-order-11-01.
Florida Governor Suspends Rulemaking and Establishes Office of Fiscal Accountability and Regulatory Reform
On January 4, 2011, Florida Governor Rick Scott issued Executive Order Number 11-01 “Suspending Rulemaking and Establishing the Office of Fiscal Accountability and Regulatory Reform.” According to a posting on the Governor’s web site, this action is intended to “freeze job-killing regulations”. The posting further describes Executive Order Number 11-01 as follows:
Executive Order No. 11-01 freezes all new regulations and establishes the Office of Fiscal Accountability and Regulatory Reform, which will review all rules prior to promulgation as well as agency practices and contracts.
- Immediately suspends rulemaking for all agencies under the direction of the Governor.
- Establishes the Office of Fiscal Accountability and Regulatory Reform to review all rules (including those suspended by the Order) prior to promulgation and to review agency practices and contracts.
- Imposes 90-day suspension on execution of any contracts with a value in excess of $1 million, without prior approval from the Office.
- Prohibits agencies from promulgating rules unless they obtain prior approval from the Office.
The full text of the executive order is available at http://www.flgov.com/wp-content/uploads/2011/01/scott.eo_.one_.pdf.
On January 1, 2011, New Mexico Governor Susana Martinez issued
Executive Order 2011-001 entitled, “Formation of a Small Business-Friendly Task Force; Establishing a 90-Day Review Period for all Proposed and Pending Rules and Regulations.”
This order suspends proposed and pending rules and regulations for a period of 90 days with some rules excepted. It also creates a task force comprised of cabinet secretaries from Taxation and Revenue, Workforce Solutions, and General Services. The task force is to make specific legislative and regulatory recommendations to achieve economic growth and stability within 90 days from the effective date of the order.
The press release that accompanied the executive order describes the action as follows:
Today, Governor Susana Martinez signed her first executive order, which establishes a small business task force to identify red-tape regulations that are harmful to business growth and job creation in New Mexico and report its findings to the Governor. The task force, chaired by Secretary-designate of Economic Development, Jon Barela, will conduct its review over a 90-day period, during which all proposed and pending regulations will be frozen.
The full text of the Executive Order is available online at http://www.governor.state.nm.us/uploads/FileLinks/1e77a5621a1544e28318ba93fcd47d49/EO-2011-001.pdf.
NPR reported today that President Barack Obama has issued an executive order improving regulation and regulatory review. In the “It’s All Politics” blog post entitled “Obama Orders Regulation Review to Boost Business, Economy“, NPR states:
The president outlined why he signed the executive order in an op-ed piece in the Wall Street Journal Tuesday.
This order requires that federal agencies ensure that regulations protect our safety, health and environment while promoting economic growth. And it orders a government-wide review of the rules already on the books to remove outdated regulations that stifle job creation and make our economy less competitive. It’s a review that will help bring order to regulations that have become a patchwork of overlapping rules, the result of tinkering by administrations and legislators of both parties and the influence of special interests in Washington over decades.
In the second story, “Obama Reaches Out To Businesses With Rules Review“, Ari Shapiro provides more context and reaction.
The text of the executive order has not yet been published in the Federal Register. The text is available in a press release on the White House web site.
The President’s op-ed piece in the Wall Street Journal is available online.
UPDATE: 1/19/2011. The Federal Register’s Facebook page has been updated with a post that points to gov20govfresh.com and provides the number for the President’s executive order:
This article [http://gov20.govfresh.com/white-house-regulations-shall-be-adopted-through-a-process-that-involves-public-participation/] lays out the goals of the President’s Executive Order on regulatory review (E.O. 13563) and relates it to his op-ed in the Wall Street Journal on building a 21st century regulatory system. The article stresses that enhanced public participation is one of the key deliverables of the reg review process.
The Institute for Policy Integrity at the New York University School of Law has released a 459-page report entitled 52 Experiments with Regulatory Review: The Political and Economic Inputs into State Rulemakings. The report, authored by Jason A Schwartz, recognizes the impact of government regulation on the economy and argues that “systems of economic analysis and regulatory review are needed so that the costs and benefits of action are properly weighted.”
In describing the report, the web site at the Institute for Policy Integrity says,
Nearly twenty percent of the American economy is regulated by state governments. But there are major concerns about how regulatory decisions are made. Although states routinely regulate industries whose economic footprints climb into the hundreds of millions of dollars, these rules are often made ad hoc, risking inefficient results that limit public benefit.
After more than a year of research, surveys, and analysis, Policy Integrity is the first to compile the regulatory practices of all fifty states (plus D.C. and Puerto Rico) in one document. Comparing each set of laws and guidelines on paper to direct feedback from leaders on the ground, the report assigns states a grade based on an evaluation of the quality of their review process. The results of “52 Experiments with Regulatory Review,” which finds significant flaws with state level regulatory review, indicate that billions of dollars and important environmental and public health protections are at risk. States earned an average grade of “D+” with the lowest possible grade being a “D-.”
The full report is available from the Institute for Policy Integrity at http://policyintegrity.org/publications/detail/52-experiments-with-regulatory-review/.