Memo: OMB Response to Your Letter to the President Requesting a Moratorium on New Federal Regulations Is a Cheap Ploy Using

This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu

MEMORANDUM

Date: December 16, 1994 To: Senator Dole~ From: Alec Vachon Re: OMB RESPONSE 0 YOUR LETTER TO THE PRESIDENT REQUESTING A MORATORIUM ON NEW FEDERAL REGULATIONS IS A CHEAP PLOY . USING ADA AND DISABLED

* On December 14th, OMB resonded to your December 12th letter to the President asking _r a regulatory moratorium. In that letter OMB stated:

"[M]uch requlatorv activity the Clinton Administration involved protecting disabled Americans against discrimination .... These requlations are mandated by the Americans with Disabilities Act .... "

FULL OMB LETTER (OFF AP WIRE) ATTACHED.

* THIS IS A PREPOSTEROUS, CYNICAL, CHEAP PLOY. THE VAST MAJORITY OF ADA REGS WERE ISSUED BY JULY 1991--0VER THREE YEARS AGO AND LONG BEFORE CLINTON WAS ELECTED PRESIDENT. THIS IS JUST THE KIND OF THING THAT GIVES ADA A BAD NAME. SOMEONE SHOULD ASK THEM FOR PROOF.

Under ADA, 5 agencies have responsibility for issuing regs: EEOC, Justice, FCC, Transportation, and Architectural & Transportation Barriers Compliance Board. By statute, all ADA regulations were to be promulgated in final form by July 26, 1991--3 years ago and a year-and- a-half before Clinton was sworn in as President. CRS confirmed my impression that in fact all regulations met that deadline. (I am now doublechecking with each agency as well.) There has been only minor stuff since then.

cc: David Taylor

Page 1 of 5 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu

reserved. USN 12-14-94 18:27 EST 70 Lines. Copyright 1994. All rights BC-REGULATION-MORATORIUM Text of Letter to Rep. Gingrich from OMB Office of Information and Regulatory Affairs To: National Desk Contact: White House Press Office, 202-456-2100 WASHINGTON, Dec. 14 /U.S. Newswire/ -- Following is a letter from Sally Katzen, administrator of the Office of Management and Budget's Office of Information and Regulatory Affairs, to Congressman Newt Gingrich (R-Ga.): December 14, 1994 The Honorable Newt Gingrich United States House of Representatives Washington, D.C. 20515 Dear Congressman Gingrich: President Clinton has asked me to reply to your letter requesting that he issue an Executive Order imposing a moratorium on all federal rulemaking. As you know, the overwhelming majority of federal regulations are mandated by Congres so that federal agencies can put into practice your policy decisions. For example, much regulatory activity of the Clinton Administration involves protecting disabled Americans against discrimination and protecting all Americans against the health effects of pollution. These Act regulations are mandated by the Americans with Disabilities and the Clean Air Act, measures supported by Republicans in Congress and signed into law by President Bush. President Clinton is concerned about the cost of regulations to businesses, individuals, and other governmental entities, whether or not those costs are mandated by Congress. The to President has therefore directed Executive Branch agencies regulate only when necessary, and only in the most cost- to effective manner. The President has also ordered agencies review existing regulations to eliminate rules that are duplicative, unnecessary, or not cost-effective. Among the chpnges initiated by the Administration as a result to of this directive are reforms that will free U.S. companies and export their goods overseas without drowning in paperwork, provide the first upgrading in a generation of school nutrition standards for student meals. We have also opened the regulatory process so that individuals, businesses, and are governmental entities can know in advance what regulations being proposed and can participate more effectively in their development. The "regulatory moratorium" you have proposed would stop rules our from being issued regardless of their merit. For example, information about upcoming regulations indicates that this "moratorium" would prevent the Department of Agriculture from of dealing with tainted meat in the food supply; the Department Veterans Affairs from providing veterans with additional of assistance for undiagnosed illnesses that may be the result their service in the Persian Gulf War; and the Department of Labor from protecting children ages 14-17 from harmful conditions in the workplace. A moratorium is a blunderbuss that could work in unintended

Page 2 of 5 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu

ways. When President Bush tried such an approach in his Administraiton, it did not achieve its stated objective of reducing the number of federal regulations. In fact, in the moths immediately after that moratorium, the number of regulations actually increased. In sum, while we share the view that burdensome regulations need to be cut back, we disagree that a blanket moratorium is the best way to proceed. We belive that we can work together on this issue to achieve a thoughtful solution to this problem. Sincerely Yours, /s/ Sally Katzen Identical letters sent to Honorable Robert Dole, Honorable Trent Lott, Honorable Thad Cochran, Honorable Don Nickles, Honorable Dick Armey, Honorable Tom DeLay and Honorable John Boehner -o- /U.S. Newswire 202-347-2770/

Page 3 of 5 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu FILE t\Jo. 032 Ol/03 '93 15:44 ID:LAt\JIERFA:X:6\':.CJO PAGE 1

~ongre55 of tbt ~nittb &tatts Ma1bingto11, ;9€ 20510

FOR IMMEDIATE RELEASE Concact: Clarkson Hine (Dole) Monda.y, December 12,, 1994 (202) 224 - 5358 Tony Blankley (Gingrich) (202) 225-2800 ' REGULATORY MORATORIUM DOLE, GINGRICH & QOP LEADERS CALL FOR RED TAPE TIM~-OUT: ftHIDDEN TAX" OF FgDERAL REGULATION COSTS AMERICA MORE THAN $500 ~ILLION PER YEAR WASHINGTON -- Arguing that the ''hidden tax" of "excessive regulation and red tape have imposed an enormous burden on our economy," Republican Congressional Leaders led by incoming Senate Majority Leader Bob Dole and incoming House Speaker Newt Gingrich today urged President Clinton to impose an irrunediate moratoril.1m on all federal _ rulemaking. The letter -- signed by Senators Dole, Trent Lott, Thad Cochran and Don Nickles, and Representatives Gingrich, Dick Armey, Tom DeLay and John Boehner -- urges that the moratorium on new regulations remain in effect for the first 100 days of the 104th Congress, and that the Administration conduct a thorough internal review of current and proposed government regulations, and make recomrnendations to Congress for eliminating unnecessary red tape.

Private estimates of the cost to the American economy of compliance with all existing regulations range between $588 billion to $860 billion per year. , During the past 12 months, the Clinton administration has publish.ed 67, 927 gross pages of notices, proposed rules, and final regulations in the Federal Register. The American people "voted for a smaller and less intrusive government," the Republicans wrote, adding that "we believe this moratorium on new federal regulations would send a clear signal that, working together, we intend to ease the burden of federal overregulation on consumers and businesses that has slowed economic growth and stifled job creation."

The text of the letter follows: Dear Mr. President, On November 8th, the American people sent a message to Wash- ington. They voted for a smaller, less intrusive goven1ment. We urge you to respond to that message by issuing an Executive Order imposing a moratorium on all federal rulemaking. This moratorium should go into effect immediately and remain in effect for the first 100 days of the next Congress. During the moratorium, agencies should be directed to 1) identify both current and proposed regulations, with costs to society that outweigh any expected benefits; 2) recommend actions to eliminate any unnecessary regulatory burden; 3) recommend actions to jive st~te 1 lo~~l, o~ CriDal ~overnmentB more flexibility to meet federally-imposed responsibilities; and 4) make this information and the analysis supporting it available to Con- gress. Page 4 of 5 This document is from the collections at the Dole Archives, University of Kansas http://dolearchives.ku.edu 2 FILE t~o. 032 01 / 03 '93 15:45 ID:LANIERFAXGrno PAGE

The moratorium we are proposing should not apply to all regulations. For example, the proposed moratorium should specifically exempt regulations that would relax a current regulatory burden. Previous moratoriums have exempted several types of regulations including those that 1) are subject to a statutory or judicial deadline; 2) respond to emergencies such as those that pose an inuninent danger to human health or safety; or 3) are essential to the enforcement of criminal laws. It is our hope that you will review past exemption categories and use them to guide you in establishing similar standards for purposes of ad.ministering this moratorium. Excessive regulation and red tape have imposed an enormous burden on our economy. Private estimates have projected the combined direct cost of compliance with all existing federal regulations to the private sector and to state and local governments at well over $500 billion per year. Your own National Perfonnance Review observed that the compliance costs imposed by federal regulations on the private sector alone were 11 at least $430 billion per year -- 9 percent of our gross domestic product." This hidden tax has pushed up prices for goods and services for American families, and limited the ability of small businessmen and women to create jobs. The Small Business Administration estimates that small businesses in this country spend at least a billion hours a year filling out government forms . The annual Unified Agenda of Federal Regulations, released on November 10, 1994, indicates that the Adnunistration completed 767 regulations during the past six months and is pursuing over 4,300 rulemakings during the next fiscal year. We believe this moratorium on new federal regulations would send a clear signal that, working together, we intend to ease the burden of federal overregulation on consumers and businesses that has slowed economic growth and stifled job creation.

Thank you for your consideration of this request. We look forward to working with you to ensure that regulatory policy works for the American people, not against them.

I ReS'~ctfully,

~~~ 9~d;=?:- ~~ . ~~

,jj~

Page 5 of 5