This Executive Order requires executive agencies to submit significant rules to the Office of Information and Regulatory Affairs (OIRA) at the Office of Management and Budget (OMB) for review; however, it does not require the independent regulatory commissions (IRCs) to comply with these requirements. This report discusses the constitutionality and the potential legal effects of extending centralized review of rulemaking to the IRCs. Furthermore, the President has issued executive orders and guidance documents establishing additional requirements and procedures that agencies must follow before a rule can be finalized. What Are Independent Regulatory Commissions (IRCs)? As mentioned earlier, the IRCs are exempt from submitting their regulatory actions for OIRA review under E.O. 12866. Authority to Subject Agency Rulemakings to Centralized Review

Two factors have caused questions to arise when evaluating the President's authority to unilaterally require executive agencies to submit their rules to OIRA for review. 12866. Judicial Recourse for Noncompliance with Statute

Although E.O. Conclusion

Federal agencies regularly adopt rules pursuant to the APA, which have the force of law, to implement the statutes and programs authorized by Congress. Beginning with President Reagan and continued by President Clinton, the executive branch, through OIRA, has maintained a centralized review process for "significant regulatory actions."
Federal agencies regularly adopt rules, which have the force of law, to implement the statutes and programs authorized by Congress. Unless a statute directs otherwise, agencies generally must follow the requirements of the Administrative Procedure Act to promulgate rules. However, beginning with President Reagan, Presidents have maintained a centralized review process for "significant regulatory actions." Currently, Executive Order (E.O.) 12866, issued by President Clinton, imposes additional procedures agencies must follow before a rule can be finalized. This includes requiring agencies to submit proposed regulatory action to the Office of Information and Regulatory Affairs (OIRA) at the Office of Management and Budget (OMB) for review. Although E.O. 12866 applies to executive agencies, independent regulatory commissions (IRCs) are not required to submit their rules to OIRA for review. Debates have arisen among scholars and legislators as to whether the President has the authority to require both executive agencies and IRCs to submit their regulations for review by OIRA. In the 112th Congress, Senator Rob Portman introduced S. 3468, the Independent Regulatory Agency Analysis Act of 2012. Under this bill, the President could issue an executive order establishing centralized review procedures for IRCs. This report discusses the constitutionality and the legal effects of extending centralized review of rulemaking to IRCs.