Rule making process in US by Federal Government is a lengthy process and some of them make it all the way through, some just stop in the middle. US Federal agencies like DHS are required to publish their priorities in the Unified Agenda on the rules that the agency plans to implement with approximate timeline. You can check Fall 2018 Regulatory Agenda on H1Bs, F1, H4 issues. We will summarize the rule making process in lay man terms for easy understanding. Office of Budget and Management (OMB) plays a critical role in the rule making process.
US Federal Rule Making Step
Description of Activities at Rule Stage
|Rulemaking takes origin based on one of these : Federal agencies priorities, plans, scientific data, accidents, technologies, etc. ; or based on statutory mandates, required reviews, lawsuits, petitions, OMB Prompt letters or recommendations from other agencies, states, federal advisory committees, etc.|
Step Two :
Determination Where a Rule is Needed
|If the federal agency believes that a rule is needed, as per Administrative procedure act for public benefit, federal agencies are required to publish information regarding rulemaking in Federal Register.|
Step Three :
Preparation of Proposed Rule
|During this step, the agency would work on the rule, add, change or remove regulatory text as needed and may contain a request for public comments. There may be an optional advance notice to proposed rulemaking as needed. Also, if the rule has $100 million USD annual impact to economy, then economic impact analysis is required.|
If the rule falls under aspects like under military, foreign affairs, public property, non-significant rules, emergency, etc. they may skip steps three to six. Otherwise, in general, most of the rules would go through steps from three to six.
Step Four :
OMB Review of Proposed Rule
|If the rule is categorized as “significant”, as per executive order, Office of Management and Budget(OMB) would need to review the proposed rule before publication to federal register. As per EO 12866, this could take anywhere from few days to 90 days.|
Publication of Proposed Rule
|After OMB reviews the rule, it is published in federal register. The publication of rule is mandatory as per Administrative procedural act provision.|
Step 6 :
|In this step, the rulemaking agency would provide public the opportunity to submit written comments. The agency need to provide an option to provide comments via electronic means. The comment period can vary from 30 days to 60 days. For significant rules, it would be 60 days and for complex rule making process, agencies may provide longer periods such as 180 days or more. Public may request more time to submit comments and also agencies may consider late comments, if their schedule permits. There may be a public hearing as well sometimes.|
Step 7 :
Preparation of Final Rule, Interim Final Rule, Or Direct Final Rule
|In this stage, public comments are reviewed and considered for preparing the final rule. The final rule making process does not work like ballot, where final rule is based on number of comments that are in support for the rule over that are in opposition. The final rule published need to consider user comments and solve the problem and goals of the rule. The proposed rule text can be changed, modified, deleted as it goes to final rule. Also, if the rule has $100 million USD annual impact to economy, then economic impact analysis is required.|
Interim Final Rule : Sometimes, depending on the kind of rule based on aspects like unnecessary burden, impracticable or contrary to public interest Interim Final Rule is published without going through proposed rule stage( Step 5). In such cases public comments are allowed after the rule is published and agency can revise rule based on public comments as needed.
Direct Final Rule : This is similar to the Interim Final Rule, but there is no public comment period after publication. It is based on the grounds that these kinds of rules are uncontroversial.
OMB Review of Final Rule, Interim Final Rule, or Direct Final Rule
|In this step, OMB reviews all the rules and provides feedback for rules that are categorized as “significant”|
Step 9 :
Publication of Final Rule, Interim Final Rule, or Direct Final Rule.
|The final rule is published in Federal register and the agency has to submit most of these final rules, interim final rules and direct final rules along with all supporting info to both houses of US Congress and General accounting office before the effective date. The reason for the delayed effective date is to consider any issues raised by congress or president’s office.|
Also, major rules are subject to a delayed effective date. These are also published in Code of Federal Regulations.
As per EO 12988, the rule making documents should be written in clear language to help reduce litigation. There are many subtle things that are part of the process, but above is a simplistic view for anyone to understand the rule making process. The actual PDF copy of Rule Making Process is at Reginfo.gov – RegMap and looks like below.
You may also read Guide to Rulemaking Process on FederalRegister.gov . Also, the rule making dashboard gives you an overview of current status of rules in progress. What do you think of the Rule Making process in USA ?