Federal Regulations: Laws Behind the Acts

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Federal regulations created by the regulatory agencies are subject to review by both the president and Congress under Executive Order 12866 and the Congressional Review Act of 1966. 

Executive Order 12866, issued on Sept. 30, 1993, by President Clinton, stipulates steps that must be followed by executive branch agencies before regulations issued by them are allowed to take effect.

For all regulations, a detailed cost-benefit analysis must be performed. Regulations with an estimated cost of $100 million or more are designated "major rules," and require completion of a more detailed Regulatory Impact Analysis (RIA). The RIA must justify the cost of the new regulation and must be approved by the Office of Management and Budget (OMB) before the regulation can take effect.

Executive Order 12866 also requires all regulatory agencies to prepare and submit to OMB annual plans to establish regulatory priorities and improve coordination of the Administration's regulatory program.

The OMB publishes this Report of Regulations Pending and Reviews Completed - Last 30 Days. The report is updated every weekday.

While some requirements of Executive Order 12866 apply only to executive branch agencies, all federal regulatory agencies fall under the controls of the Congressional Review Act.

The Congressional Review Act (CRA), passed in 1996 as part of the Small Business Regulatory Enforcement Fairness Act, allows Congress 60 in-session days to review and possibly reject new federal regulations issued by the regulatory agencies.

Under the CRA, the regulatory agencies are required to submit all new rules the leaders of both the House and Senate. In addition, the General Accounting Office (GAO) provides to those congressional committees related to the new regulation, a detailed report on each new major rule.

Should any member of Congress object to a new regulation, he or she can introduce a "Resolution of Disapproval" to have the regulation rejected. Should the resolution pass both House and Senate by simple majority votes, and the president signs it, the regulation basically vanishes.

Since going into effect in 1996, the Congressional Review Act has been successfully invoked exactly once. On March 7, 2001, Congress gave it's final approval to Senate Joint Resolution 6 disapproving the controversial final regulations on ergonomics created by the Occupational Health and Safety Administration's (OSHA) and set to take effect in October, 2001.