Presidential Executive Order 12498 (Ronald Reagan, 1985)

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Executive Order 12498: Regulatory Planning Process is a presidential executive order issued by President Ronald Reagan (R) in 1985 that aimed to ensure that federal agencies developed regulations consistent with the goals and policies of the presidential administration. The order required federal administrative agencies to submit annual regulatory plans to the Office of Management and Budget (OMB) for preclearance prior to initiating the rulemaking process. E.O 12498 remained in effect under President George H.W. Bush (R), but was revoked by President Bill Clinton (D) in 1993.[1][2]

Background

President Ronald Reagan (R) campaigned on a pledge to reduce the volume of government regulations that he considered to have a negative impact on the nation's economic growth. Reagan's oft-cited campaign phrase, "Government is not the solution to our problem, government is the problem," reflected this vision.[3]

Reagan initiated his regulatory reform agenda shortly after taking office by issuing Executive Order 12291 in February 1981. The order required certain agencies to perform cost-benefit analyses for certain proposed rules and established procedures for retrospective regulatory review, among other provisions. On January 4, 1985, Reagan expanded on the E.O. 12291 framework by issuing Executive Order 12498, titled "Regulatory Planning Process." E.O. 12498 aimed to complement the regulatory provisions established under E.O. 12291 by requiring federal agencies subject to the order to submit annual regulatory programs to the Office of Management and Budget (OMB) for review prior to initiating the rulemaking process. The annual regulatory plans presented "an overview of the agency's regulatory policies, goals, and objectives for the program year," according to the order. After approval by the OMB, the annual regulatory plans from each agency were consolidated and published in the presidential administration's comprehensive Regulatory Program of the United States Government.[2][1][4]

E.O. 12498 aimed to ensure that federal agencies developed regulations consistent with the goals and policies of the presidential administration. The order also sought to strengthen OMB oversight of federal agencies by requiring OMB approval of agency regulatory programs prior to embarking on the rulemaking process. Lastly, E.O. 12498 endeavored to increase accountability within agencies by ensuring that regulatory proposals from agency staff were reviewed by agency heads before being published as proposed rules.[1][5]

Reagan later discussed his motivation for issuing E.O. 12291 and E.O. 12498 during a message to Congress in September 1988:[6]

“ When I took office I set in motion a plan to improve and rationalize the regulatory activity of Federal agencies. The program was designed to ensure full analysis of possible regulatory impacts, to bring about greater coordination within the government, and to increase public information about and participation in the process. To enhance presidential oversight, I issued Executive orders directing regulatory agencies to justify their exercise of regulatory discretion, demonstrate the likely benefits and costs of individual regulations, and better inform the public of their plans and activities.[6][7] ”

Scope

The following executive agencies were subject to E.O. 12498:[5]

Impact

The regulatory framework implemented under Reagan's E.O. 12291 and E.O. 12498 continued under President George H.W. Bush (R), but affected parties expressed functional concerns with the process, according to the Congressional Research Service:[8]

“ Regulatory reviews under these executive orders were highly controversial, with complaints about the lack of transparency of the review process, unlimited delays in the completion of the reviews, OIRA serving as a conduit for influence by regulated parties, and executive branch displacements of congressional delegations of rulemaking authority.[8][7] ”


President Bill Clinton (D) revoked E.O. 12291 and E.O. 12498 in 1993 through the issuance of Executive Order 12866, which established a new regulatory framework designed "to reaffirm the primacy of Federal agencies in the regulatory decision-making process," according to the order..[9]

Provisions

General requirements

The first section of the executive order established the general requirements for federal agencies to contribute to the development of the presidential administration's Regulatory Program of the United States Government. Each agency was required to submit an annual, agency-specific draft regulatory program to the Office of Management and Budget (OMB). The draft regulatory programs detailed agencies' regulatory goals for the upcoming year and included information about any pending or upcoming economically significant regulations.[2]

Submission of draft regulatory programs

The second section of the executive order outlined procedures for the submission of agency draft regulatory programs. The order detailed the specific information that agencies were required to include in the programs as well as the timeline and structure of the submissions:[2]

“ (a) The head of each agency shall submit to the Director an overview of the agency's regulatory policies, goals, and objectives for the program year and such information concerning all significant regulatory actions of the agency, planned or underway, including actions taken to consider whether to initiate rulemaking; requests for public comment; and the development of documents that may influence, anticipate, or could lead to the commencement of rulemaking proceedings at a later date, as the Director deems necessary to develop the Administration's Regulatory Program. This submission shall constitute the agency's draft regulatory program. The draft regulatory program shall be submitted to the Director each year, on a date to be specified by the Director, and shall cover the period from April 1 through March 31 of the following year.

(b) The overview portion of the agency's submission should discuss the agency's broad regulatory purposes, explain how they are consistent with the Administration's regulatory principles, and include a discussion of the significant regulatory actions, as defined by the Director, that it will take. The overview should specifically discuss the significant regulatory actions of the agency to revise or rescind existing rules.
(c) Each agency head shall categorize and describe the regulatory actions described in subsection (a) in such format as the Director shall specify and provide such additional information as the Director may request; however, the Director shall, by Bulletin or Circular, exempt from the requirements of this Order any class or category of regulatory action that the Director determines is not necessary to review in order to achieve the effective implementation of the program.[2][7]

”

Publication of the administration's regulatory program

The third section of the executive order identified procedures for the review of agency draft regulatory programs. The director of the OMB was required to review the agency statements in order to ensure that the programs were consistent with the administration's overarching regulatory goals. Following the review process, agencies were required to incorporate OMB feedback and submit final regulatory plans for inclusion in the administration's regulatory program. This section also included provisions for resolving disagreements between agency heads and the OMB director and for the submission of additional proposed regulations not previously reviewed under an agency's draft regulatory program.[2]

Other provisions

The final provisions of the executive order authorized the director of the OMB to carry out the order's provisions and clarified that the order was "intended only to improve the internal management of the Federal government" and did not "create any right or benefit, substantive or procedural, enforceable at law by a party against the United States, its agencies, its officers or any person."[2]

Presidential administrations

George H.W. Bush

President George H.W. Bush (R) continued Reagan's regulatory approach in E.O. 12291 and E.O. 12498. Bush also established the Council on Competitiveness, chaired by the vice president, which supervised the Office of Management and Budget (OMB), offered regulatory feedback, and crafted new proposals.[1]

Bill Clinton

President Bill Clinton (D) eliminated the Council on Competitiveness and revoked Reagan's E.O. 12291 and E.O. 12498 in 1993. Clinton issued Executive Order 12866, which established a new regulatory framework designed "to reaffirm the primacy of Federal agencies in the regulatory decision-making process," according to the order. For more information about the regulatory framework under E.O. 12866, click here.[1][8][9]

See also

External links

Footnotes

  1. ↑ 1.0 1.1 1.2 1.3 1.4 Healy, M. Krotoszynski, R. Rogers, J. Last, First Initial. (2017). Administrative Law. New York, NY: Wolters Kluwer.
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 National Archives, "Executive Order 12498--Regulatory planning process," January 4, 1985
  3. ↑ Ronald Reagan Presidential Library and Museum, "The Reagan Presidency," accessed March 28, 2018
  4. ↑ National Archives, "Executive Order 12291--Federal regulation," February 17, 1981
  5. ↑ 5.0 5.1 Administrative Law Review, "Presidential Policy Management of Agency Rules Under Reagan Order 12,498," Winter 1986
  6. ↑ 6.0 6.1 The American Presidency Project, "Message to the Congress Reporting on Regulatory Reform," September 15, 1988
  7. ↑ 7.0 7.1 7.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  8. ↑ 8.0 8.1 8.2 Congressional Research Service, "Changes to the OMB Regulatory Review Process by Executive Order 13422," February 5, 2007
  9. ↑ 9.0 9.1 Federal Register, "Executive Order 12866 of September 30, 1993," accessed March 28, 2018
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