Last October, a joint interim study held by the Administrative Rules committees in the Oklahoma Legislature explored the excessive regulatory burden imposed on Oklahomans by administrative rules. These are rules promulgated by executive agencies that do not require legislative approval to go into effect yet carry the weight of law. Although the Legislature does review and can disapprove rules, many rules go through without review because the legislative committees simply do not have the time or the bandwidth to pore over every single rule.

While there are several things the Legislature could do in the upcoming session to help alleviate this issue, one reform in particular stands above the rest: a state-level REINS (Regulations from the Executive in Need of Scrutiny) Act. At its core, REINS rests on the fundamental idea that elected legislators—not unelected bureaucrats—should make the law. In essence, a REINS Act would implement a specific economic threshold on all administrative rules. If a proposed rule had an economic impact above the threshold, it would require explicit legislative approval to go into effect.

For instance, if a state put its threshold at $1 million over five years, any proposed rule with a projected economic impact greater than $1 million over a five-year period would require an affirmative vote of the Legislature. This reform ensures that those agency rules that could have the greatest financial impact on the people receive the attention and scrutiny that they deserve and are not slipped through without legislative review.

Of course, the positive effect of a REINS Act could be severely hampered if the agencies alone are providing economic analysis. While it is extremely important to require the agency to provide as much information as possible regarding the new rule—such as the justification for the rule, implementation costs, cost-benefit analysis, etc.—independent economic analysis of each rule is essential for the benefits of a REINS Act to be fully realized. If the economic analysis is left solely to the agency proposing the rule, it forces the Legislature to trust the numbers coming from the agency and it creates a perverse incentive for the agency to put the number below the threshold. Independent analysis allows the Legislature to get the most accurate picture and ensures that the most onerous rules get fully reviewed.

Two REINS bills, Oklahoma House Bill 2728 and Senate Bill 318, will be up for consideration in the current legislative session. If passed, these bills would restore policymaking power to the Legislature and ensure greater efficiency, transparency, and accountability in the administrative rules process.