Who regulates the regulators? Given the fact that ballooning federal regulations now cost more than personal and corporate income taxes combined, many people are asking that question.

Fortunately, as any fan of federalism will tell you, state “laboratories of democracy” are providing a solution. Thanks to SPN partners across the country, state legislatures are enacting desperately needed reforms for unchecked regulatory rules and agencies.

REINS Acts and Commonsense Reform

When Congress passed the Congressional Review Act (CRA) in 1996, the Administrative State had already become too expensive and too big. While the CRA has been a useful tool to check overly broad and expensive rules and regulations, it is a retroactive fix. Oftentimes, by the time a regulation is reined in via the CRA, it has already impacted the lives (and pocketbooks) of everyday Americans.

The Regulations from the Executive in Need of Scrutiny (REINS) Act intends to fix this.

In short, the REINS Act would allow Congress to automatically review and approve any federal regulation with a financial impact over $100 million BEFORE it’s allowed to take effect. The REINS Act uses the same logic and similar procedures as the CRA but moves them earlier in the process. This would prevent misguided rules and regulations causing problems before they’re implemented.

A version of the REINS Act has been introduced in every Congress since 2009. Since then, the Foundation for Government Accountability (FGA) has been one of the leading advocates for passing the law. The FGA has published multiple research reports and has been a leading voice in the media showing the damage stemming from out-of-control executive rulemaking and regulatory overreach.

Over the years, the House of Representatives has passed many versions of the bill, but the Senate has yet to pass the legislation.

However, despite Congress failing to pass a federal REINS Act, many states have taken up the fight and made real impacts in passing state-level REINS Acts.

REINS Acts Across the Country

To date, Florida, Wisconsin, Kansas, Kentucky, Utah, Wyoming, and Oklahoma have all passed state-level REINS Acts to curb state regulatory overreach. Also, Nebraska, Idaho, Montana, New Mexico, Missouri, Louisiana, Ohio, Indiana, Pennsylvania, West Virginia, North Carolina, and South Carolina have either passed similar legislation to REINS or introduced REINS legislation in their state. In fact, as of this week, North Carolina’s REINS legislation was passed by the state Senate, getting one step closer to ultimately becoming law.

State-level REINS Acts are quickly becoming powerful good government tools for legislators. While each state’s reforms are tailored to their specific systems and needs, they all enact similar oversight provisions. For example, North Carolina’s REINS Act would require:

  • Direct approval from the General Assembly for any proposed permanent rule with an economic cost of $20 million or more over five years unless the rule is mandated by federal law.
  • Unanimous approval by the rulemaking board or commission for rules that would cost more than $10 million over five years unless federally required.
  • A two-thirds supermajority vote from the adopting body for rules exceeding $1 million over five years.

SPN partners and affiliates across the country have worked tirelessly to promote REINS legislation in their respective states. For example, the Platte Institute of Nebraska has provided critical research showing why the state needs regulatory reform. They’ve been a vocal proponent for REINS and common sense reforms that will cut red tape in the Cornhusker State.

As Platte Senior Fellow Laura Ebke writes, “In Nebraska, our strong communities and thriving economy depend on a regulatory system that empowers growth, innovation, and opportunity—not one bogged down by unnecessary red tape. The REINS Act is a crucial step toward that vision.”

In addition to the work the Platte Institute is doing, The James Madison Institute, the Institute for Reforming Government, Wisconsin Institute for Law & Liberty, Kansas Policy Institute, Americans for Prosperity, Oklahoma Council of Public Affairs (OCPA), the John Locke Foundation, and the Libertas Institute have all been critical in passing REINS legislation in their respective states.

The work to get these REINS Acts passed took many forms. The James Madison Institute and the Institute for Reforming Government provided in-depth research and data showing why REINS legislation was needed. Americans for Prosperity and the Kansas Policy Institute built state and regional coalitions showing legislators how REINS would benefit their states. OCPA and the Libertas Institute educated taxpayers, the media, and legislators on the overall issue and the path to reform.

While there is still work to do to pass REINS legislation in more states and eventually on a federal level, these SPN partners and affiliates have created the blueprint and momentum necessary.

It doesn’t take a good-government evangelist to see why America’s bloated regulatory system needs reform. Donald Bryson, CEO of the John Locke Foundation summed it up well when he said, “Unelected bureaucrats shouldn’t make million-dollar rules in the dark. The REINS Act brings democracy back to rulemaking.”

Thanks to the work of SPN partners, the REINS Act and regulatory reform is becoming a reality across the country. Finally, elected officials are regulating the regulators.