The Reform of Federal Regulation Act of 1979 and the Regulation Reform Act of 1979

GAO strongly supports the general thrust of two Senate regulatory reform bills, that regulatory agencies should carefully and comprehensively evaluate the effects of proposed and existing rules. Congressional oversight of this process is essential; however, the role that the bill vests with the Congressional Budget Office should be assigned to GAO to avoid duplication of responsibilities, some of which are already vested with GAO. Passage of these bills must be coordinated with proposed sunset legislation to prevent duplicative reviews. The impact of regulations on differing industries and regions must be considered. Guidelines for initial and final regulatory analyses should go beyond simple cost-benefit analysis to a detailed analysis of projected economic and noneconomic effects, focusing on both the magnitude and distribution of costs. The need for periodic regulatory review must be balanced against the need for business confidence and the problems of compliance. If the Administrative Conference of the United States (ACUS) is to assume responsibility for the recruitment and evaluation of administrative law judges, restructuring and an increase of resources will be necessary. The proposed assignment of federal statistical policy and paperwork controls to ACUS would only result in further fragmentation of federal information-gathering activities. Control should be consolidated, preferably in the Office of Management and Budget. GAO is concerned that these additional functions would detract from the valuable function ACUS currently provides.