Effects
Three years of Senate standing committee agendas were reviewed, spanning 2017–2019. Senate committees held 661 meetings during this three-year stretch, of which 24 percent included review of at least one rule docket as part of the agenda (range of 12–37 percent). Regulatory workload was highest in the Commerce and Human Resources committee (37 percent of meetings), which reviews regulations from most occupational licensing boards. On average, committees completed their final rule docket review 32 calendar days after the start of legislative session (range of 26–39 calendar days).
Temporary regulations were used sparingly during the study period, with just 69 total dockets issued by 19 agencies. Thus, temporary regulations accounted for just 3.5 percent of total regulations put forth by the executive branch. Temporary regulations were highly concentrated with the Department of Health and Welfare, which accounted for 45 percent of temporary regulations.
For the study period, total regulations grew by 871 pages, with an average annual growth of 96.7 pages (range of 41–176 pages) statewide. For 2016–2018, the legislature rejected 7 pages of regulations, which is equivalent to 2.1 percent of the pages of regulations added during that time. Assuming this same rate over the entire study period, regulations would have been 18 pages longer were it not for the legislative review.
Discussion
Idaho’s part-time legislature was able to conduct regulatory review focusing on legislative intent and integrate regulatory approval into a 75-to-90-day legislative session. Standing germane committees typically completed review of regulations 32 calendar days following the start of a legislative session, even with an average volume of rule dockets that is on par with 55 percent of the average annual volume of bills passed by the legislature.
To make this work, executive branch agencies must complete their regulatory work in a timeframe that is relevant to submitting to the legislature for review. Legislative review in a state with a year-round legislature or to the federal government likely would have more flexibility and would occupy a smaller percentage of standing committee agendas, though this would ultimately be determined by:
- the volume of regulatory activity that triggers legislative review,
- the nature of the regulations involved, and
- the scope of the legislative review (e.g., ensuring conformity to legislative intent versus reviewing the underlying policy decisions).
Even with a Republican-led executive branch and supermajority Republican legislature, not all regulations were approved by the legislature. Partial rule rejections were more common than full rule rejections, with an overall rejection rate of 5.2 percent. Put another way, the legislature approved 94.8 percent of all regulations, with an approval rate ranging from 92.3 percent to 96.9 percent depending on the year. Some may see this high approval rate as a sign of superficial oversight but, again, the regulation rejection rate exceeded the rate of executive vetoes of bills passed by the legislature. Thus, even in a state with a unified government based on the predominant party of both legislative chambers and the executive branch, some proposed regulations were still rejected.
One potential explanation for the higher regulation rejection rate as compared to the bill veto rate may be the natural filtering of bills that occurs through the legislative process. Through committee hearings and floor debate, it is not uncommon to find unanticipated problems with well-intentioned bills, stakeholder opposition, or differing opinions among legislators, resulting in some bills failing to progress. For example, in the 2018 Idaho legislative session, 799 pieces of new legislature were prepared, of which 561 bills (70 percent) were introduced and 355 bills (44 percent) passed both chambers. Thus, while the governor vetoed just two bills that year, more than 444 bills (56 percent) stalled and therefore were not presented to the governor. It is possible that if many of those failed bills did reach the governor’s desk, a larger proportion of bills would have been vetoed.
It is likely, however, that some filtering occurs with regulations, though we are not able to quantify the rate based on available data as it does not always play out in the public arena. Agencies may not initiate rulemaking because of stakeholder feedback or agencies may decide to shy away from topics that are unlikely to elicit legislative approval. Thus, legislative review of regulations may have an unquantifiable effect on deterring regulations by executive branch agencies. Some have suggested that the “mere possibility” of legislative review may have “a powerful controlling effect” on an agency’s regulatory behavior.
Legislative review of regulations had only a modest effect on overall regulatory volume. Regulations grew by an average of 97 pages a year, though this would have been two pages higher without the legislative rejections of regulations. Thus, regulations still grew on net, and in no studied year was there a net year-over-year reduction in regulatory volume.
It has been postulated that one unintended consequence of this deterrent effect is that agencies will simply pivot from regulations to other forms of soft law like guidance documents. This can be mitigated by the state making clear, as Idaho’s APA does, that policy statements and guidance documents do not have the force and effect of law. In the same manner, some may contend that legislative review incentivizes executive agencies to default to temporary rulemaking to circumvent legislative approval. This has not proven to be the case. Temporary rulemaking accounted for just a fraction of regulations (3.5 percent). Temporary rules by their very definition last for a short period of time and still require the legislature to extend them or make them permanent.
One final concern expressed about legislative review of regulations is that it would be a recipe for inaction. This was not the case in Idaho, where executive agencies still averaged 192 rule dockets annually. While it is difficult to say how many dockets agencies would average in the absence of legislative review, Idaho was rated as the fourth least regulated state based on volume during the study period. While previous studies of the effects of legislative review of regulations have been mixed, it is reasonable to deduce that legislative review partly accounted for the relatively low volume of regulations in Idaho. To the extent legislative review is a driver, it is likely due to unobserved deterrent effects as opposed to actual rejection of regulations, given the observed high approval rate and net growth in volume during the period.
Conclusion
While the REINS Act continues to be given consideration at the federal level, insight into its practical implications can be gleaned from states that already require legislative review of regulations. Idaho has long required legislative review and has an approval rate ranging from 92.3 percent to 96.9 percent depending on the year. Executive agencies have adjusted rulemaking procedures to allow for legislative review of regulations, and legislative committees typically complete their reviews in 32 calendar days. Legislative review of regulations may have a deterrent effect that may prevent the advent of regulations that are unlikely to elicit legislative approval.
Readings
- Adler, Jonathan H., 2011, “Would the REINS Act Rein in Federal Regulation?” Regulation 34(2): 22–28, Summer.
- Broughel, James, Brian Baugus, and Feler Bose, 2022, “A 50-State Review of Regulatory Procedures,” working paper, Mercatus Center at George Mason University.
- Doyle, Richard B., 1986, “Partisanship and Oversight of Agency Rules in Idaho,” Legislative Studies Quarterly 11(1): 109–118.
- Simon, Herbert, 1997, Administrative Behavior, 4th ed., Macmillan.