Curtis W. Copeland
Specialist in American National Government
Maeve P. Carey
Analyst in Government Organization and Management
Under the Congressional Review Act (CRA, 5 U.S.C. §§ 801-808), a covered agency regulation takes effect as provided by law unless Congress disapproves the rule with a joint resolution of disapproval. In contrast, the Regulations from the Executive In Need of Scrutiny (REINS) Act (H.R. 10 and S. 299, 112th Congress) would (if enacted) generally require the enactment of a joint resolution of approval before any “major rule” could take effect (e.g., rules that are expected to have a $100 million annual impact on the economy). This report provides information on the types of “major rules” that may be covered by the REINS Act, if enacted. Specifically, it identifies how many major rules have been issued in recent years, and which agencies have issued them. It also attempts to identify why certain rules published during calendar year 2010 were considered to be major rules under the CRA.
According to a database maintained by the Government Accountability Office (GAO), in 9 of the 14 full calendar years since the CRA was enacted, federal agencies published between 50 and 70 major rules. The agencies published 76 major rules in 1998, and 77 major rules in 2000. The number of major rules issued in a single calendar year first exceeded 80 in 2008 (the last full year of the George W. Bush Administration), when 95 major rules were published. In calendar year 2009, the first year of the Barack Obama Administration, federal agencies published 84 major final rules. However, 11 of those 84 rules were actually issued in early January 2009, during the final days of the Bush Administration. During calendar year 2010, federal agencies published 100 major final rules. The entities that issued the largest number of major rules from 2004 through 2010 were the Departments of Health and Human Services, Agriculture, and the Interior, and the Environmental Protection Agency.
CRS examined the 100 major rules published in 2010 and concluded that they appeared to be “major” for a variety of reasons. Thirty-seven of the rules appeared to be major because they involved transfers of funds from one party to another party, most commonly the transfer of federal funds to the recipients of those funds (e.g., grants, food stamps, Medicare or Medicaid funds, special pay for members of the military, and crop payments). Ten other rules appeared to be major because they were expected to prompt consumer spending, or because they were establishing fees for the reimbursement of particular federal functions (e.g., issuance of passports and oversight of the nuclear power industry). Thirty-nine rules appeared to be major because they were expected to result in at least $100 million in annual compliance costs, regulatory benefits, or both. In 20 of those 39 rules, estimated costs and benefits were both expected to exceed $100 million. In 14 of these rules, the agencies’ lowest estimates of regulatory benefits were larger than the highest estimated compliance costs. In only one rule were the lowest costs greater than the highest benefits, and the agency indicated that this result was caused by the lack of discretion provided in the underlying statute. These variations in the type of major rules do not bring into question the appropriateness of congressional oversight. However, Congress may need different types of expertise to oversee different types of major rules. H.R. 214 (112th Congress), which would create a Congressional Office of Regulatory Analysis, may provide access to that expertise.
This report will not be updated. .
Date of Report: February 24, 2011
Number of Pages: 69
Order Number: R41651
Price: $29.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
Specialist in American National Government
Maeve P. Carey
Analyst in Government Organization and Management
Under the Congressional Review Act (CRA, 5 U.S.C. §§ 801-808), a covered agency regulation takes effect as provided by law unless Congress disapproves the rule with a joint resolution of disapproval. In contrast, the Regulations from the Executive In Need of Scrutiny (REINS) Act (H.R. 10 and S. 299, 112th Congress) would (if enacted) generally require the enactment of a joint resolution of approval before any “major rule” could take effect (e.g., rules that are expected to have a $100 million annual impact on the economy). This report provides information on the types of “major rules” that may be covered by the REINS Act, if enacted. Specifically, it identifies how many major rules have been issued in recent years, and which agencies have issued them. It also attempts to identify why certain rules published during calendar year 2010 were considered to be major rules under the CRA.
According to a database maintained by the Government Accountability Office (GAO), in 9 of the 14 full calendar years since the CRA was enacted, federal agencies published between 50 and 70 major rules. The agencies published 76 major rules in 1998, and 77 major rules in 2000. The number of major rules issued in a single calendar year first exceeded 80 in 2008 (the last full year of the George W. Bush Administration), when 95 major rules were published. In calendar year 2009, the first year of the Barack Obama Administration, federal agencies published 84 major final rules. However, 11 of those 84 rules were actually issued in early January 2009, during the final days of the Bush Administration. During calendar year 2010, federal agencies published 100 major final rules. The entities that issued the largest number of major rules from 2004 through 2010 were the Departments of Health and Human Services, Agriculture, and the Interior, and the Environmental Protection Agency.
CRS examined the 100 major rules published in 2010 and concluded that they appeared to be “major” for a variety of reasons. Thirty-seven of the rules appeared to be major because they involved transfers of funds from one party to another party, most commonly the transfer of federal funds to the recipients of those funds (e.g., grants, food stamps, Medicare or Medicaid funds, special pay for members of the military, and crop payments). Ten other rules appeared to be major because they were expected to prompt consumer spending, or because they were establishing fees for the reimbursement of particular federal functions (e.g., issuance of passports and oversight of the nuclear power industry). Thirty-nine rules appeared to be major because they were expected to result in at least $100 million in annual compliance costs, regulatory benefits, or both. In 20 of those 39 rules, estimated costs and benefits were both expected to exceed $100 million. In 14 of these rules, the agencies’ lowest estimates of regulatory benefits were larger than the highest estimated compliance costs. In only one rule were the lowest costs greater than the highest benefits, and the agency indicated that this result was caused by the lack of discretion provided in the underlying statute. These variations in the type of major rules do not bring into question the appropriateness of congressional oversight. However, Congress may need different types of expertise to oversee different types of major rules. H.R. 214 (112th Congress), which would create a Congressional Office of Regulatory Analysis, may provide access to that expertise.
This report will not be updated. .
Date of Report: February 24, 2011
Number of Pages: 69
Order Number: R41651
Price: $29.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
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