Perdue’s Regulatory Executive Order: A step in the right direction

Key facts:

• North Carolina’s regulatory environment is poor, especially in comparison with other states’.
• Gov. Beverly Perdue signed a new executive order to modify the rulemaking process and help reduce the costs of regulation.
•  The executive order applies only to executive bodies in which the governor has oversight, including all Cabinet agencies.
• The executive order does several good things to reduce excessive regulation, including:
  1. Mandates cost/benefit analysis of regulations
  2. Requires agencies to identify alternatives to regulation
  3. Creates an annual review process of existing regulations to determine if the regulations should be reformed, expanded, or repealed
  4. Requires agencies to support their regulations with sound data
  5. Gives the state Office of State Budget and Management necessary oversight to ensure that agencies do what is expected of them
• The executive order does have some weaknesses, however. They include:
  1. Some of the requirements are drafted in a vague manner, thereby allowing agencies to wiggle out of the requirements.
  2. It does not include protection for small businesses from one-size-fits-all regulation. Most states (35) and the federal government adjust regulations to meet the unique needs of small businesses, but this executive order does not address that issue.
  3. It does not protect against agencies exceeding statutory authority.
• The executive order is a good start, but much will depend on how it is implemented in practice.
• For true regulatory reform, the legislature needs to build upon the executive order and apply reforms to all agencies.

Spotlight 401 Perdue’s Regulatory Executive Order: A step in the right direction