First Phase of Agency Rule Reduction Submitted to JCARR

COLUMBUS – With the deadline for all state agencies to submit their rule reduction reports having passed, all but four agencies have or are on track to hit their target of a 10% reduction in regulatory restrictions, announced Joint Committee on Agency Rule Review (JCARR) Chair, State Rep. Jamie Callender (R-Concord). This mandatory reduction is part of the process outlined in SB9 (134th General Assembly, McColley/Roegner) to reduce excessive regulation in the Ohio Administrative Code (OAC). 

Included as part of SB9 is a cap on the total number of regulatory restrictions that can exist in Ohio after July 1, 2025 and a timeframe for when agencies must achieve certain milestones in regulatory restriction reductions in order to meet this cap. Beginning with an inventory of all agency regulations due on September 15th, 2022, a net 10% reduction was required by June 30th, 2023, along with a 20% reduction by June 30th, 2024, and a final 30% reduction by June 30th, 2025. 

Additionally, agencies are required to cut two existing regulatory restrictions in order to propose a new regulatory restriction. 

Of the 27 agencies required to submit progress reports to JCARR, the following agencies have met the requirement to reduce regulatory restrictions by at least 10%: 

• Department of Commerce
• Department of Administrative Service (22%)
• Department of Development (11%)
• Department of Job and Family Services        
• Department of Veterans Services
• Department of Aging (28%)   
• Bureau of Workers Compensation (16%)
• Department of Developmental Disabilities (25%)     
• Environmental Protection Agency (13.6%)
• Department of Medicaid (18%)          
• Mental Health and Addition Services (14%) 
• Office of Budget Management (30%)
• Casino Control Commission (19%)    
• Lottery Commission (13.25%)           
• Department of Public Safety (16%)
• Public Utilities Commission (17%)    
• Department of Transportation (22%) 
• Department of Youth Services (22%)
   

Four agencies did not achieve the 10% reduction in restrictions as of the June 30th deadline, but have demonstrated a concrete plan to achieve their reduction by the end of the year. These agencies are the Ohio Departments of Agriculture (0.36%, on track to 13%), Education (9.25%, on track to 10%), Insurance (0.66%, on track to 10%), and Taxation (4%, on track to 13.2%). 

Finally, there are four agencies who have not reached the 10% reduction target, nor have they demonstrated a plan to achieve this requirement in a timely fashion. Those agencies are the Ohio Departments of Higher Education (6.59%), Natural Resources (9%), Rehabilitation and Corrections (4.1%), and the State Racing Commission (0.19%). 

“I want to applaud both the directors and rules administrators who have complied with the letter and spirit of the law to reduce regulation in Ohio,” said Callender. “As for the agencies who have failed to achieve their statutory goals, they will have the opportunity to inform the committee as to why they are disregarding the laws of the State of Ohio and maintaining over-burdensome regulations on Ohioans.”

“We have a commitment to limit our government and provide oversight on behalf of all Ohioans,” State Rep. Adam Mathews (R-Lebanon) said. “We will work to ensure that all agencies achieve compliance with the law.”

“We are proud of the progress made in our pursuit of reducing regulatory burdens on Ohioans,” said State Rep. Brett Hillyer (R-Uhrichsville). “The agencies who have met their reduction targets deserve recognition and we look forward to working with those that are still striving to reach their goal to provide relief from excessive regulation.”

“In Ohio, we cut red tape, reducing the regulations that weigh down our citizens and small businesses,” said Vice Chair, Senate Majority Whip Gavarone. “Through the JCARR process, I will continue pushing hard to hold agencies accountable to ensure that government is working for, not against, the citizens of Ohio.”

Agencies failing to achieve their regulatory restriction goals will be requested to appear before JCARR at the committee’s October 30, 2023 meeting. JCARR is required to give agencies that have not sufficiently reduced restrictions the opportunity present why their target reduction amount should be lessened. 

With the June 30th, 2023 reports submitted, JCARR will continue to work with agencies to achieve their 20% reduction in regulatory restrictions due on June 30th, 2024.