Test-Driving Some Regulatory Process Reforms - Capitol Campus September 2013


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The scope and number of regulations continues to grow, but proof that problems are being solved remains elusive. Several reform efforts are focusing on ways to improve economic analysis so that agencies can make better decisions about when and how to use regulation for problem-solving. New research indicates several reforms that could have a positive impact.

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Test-Driving Some Regulatory Process Reforms - Capitol Campus September 2013

  1. 1. Test-Driving Some Regulatory Process Reforms Jerry Ellig Senior Research Fellow
  2. 2. •Systemic Problem •Alternatives •Benefits (or other desired outcomes) •Costs Key Elements of Regulatory Impact Analysis
  3. 3. Office of Management and Budget •Prepares president’s budget submission •Oversees management of the executive branch •Oversees regulation •Office of Information and Regulatory Affairs •Oversees/approves all agencies’ information collection that creates paperwork burdens •Oversees executive branch regulation and regulatory analysis
  4. 4. Mercatus Regulatory Report Card 5 Complete analysis of all or almost all aspects, with one or more “best practices” 4 Reasonably thorough analysis of most aspects and/or shows at least one "best practice" 3 Reasonably thorough analysis of some aspects 2 Some relevant discussion with some documentation of analysis 1 Perfunctory statement with little explanation or documentation 0 Little or no relevant content 12 criteria 0-5 points each Total Score: 0-60 points
  5. 5. Quality and Use of RIAs Falls Short
  6. 6. 4 Key Elements (108 regulations, 2008-12)
  7. 7. Use of RIAs in Economically Significant Regs, 2008-12
  8. 8. • Decisions made before analysis • Rushed regulations have lower-quality analysis • Little provision for retrospective analysis when regulations are promulgated • Average quality is similar across administrations • Administrations demand less thorough analysis from agencies with missions closer to the administration’s policy priorities • Independent agencies’ analysis has the same problems Other Research Findings
  9. 9. • Require more deliberate/higher-quality information-gathering • Require publication of analysis before regulation is written • Require formal hearings after regulation is proposed • Require retrospective review plan when regulation is proposed • Expand OIRA’s size/influence to make review more thorough and effective • Extend RIA requirements to independent agencies • Provide for judicial review of RIAs Process Reforms that Might Address These Issues
  10. 10. Are Analogous Activities Associated with Better Analysis? Proposed Reform Current Analogous Variables Improved information-gathering Pre-proposal Request for Information, Advisory Committee, State Consultation, Public Meeting Publish analysis before writing regulation ANPRM or prior NPRM in same proceeding Formal hearings Commitment to post-proposal public hearing Retrospective review plan required Regulation is a revision of a prior regulation (voluntary or required by law) OIRA review Length of OIRA review time, OIRA headed by acting administrator
  11. 11. Improved Information-Gathering
  12. 12. ANPRM and Prior NPRM
  13. 13. Post-Proposal Public Hearing
  14. 14. Rule Results from Revision of Prior Rule
  15. 15. OIRA and Change in Score
  16. 16. SEC Analysis vs. Executive Branch Analysis
  17. 17. SEC vs. Executive Branch Financial Regulations