About the Moratorium

On January 14, 2013, Governor Pence signed Executive Order 13-03 which places a “Regulatory Moratorium” on executive branch agencies’ ability to promulgate administrative rules. By “freezing” the creation of new rules, the Office of Management and Budget (OMB) will be able to review and identify existing regulations that inhibit Hoosiers’ freedom to engage in individual, family, and business pursuits.

Burdensome and unnecessary rules increase costs to business owners and create barriers to employment. These implications are considerably higher for small businesses. There are more than 115,000 small businesses in Indiana and they account for more than 48% of Indiana’s jobs. Governor Pence believes that every dollar not spent on regulatory paperwork is a dollar that Indiana businesses can spend putting Hoosiers to work.

The Regulatory Moratorium will also identify burdensome occupational licensing regulations, which have increased significantly over the past decade. Since 2002, there have been more than forty new professional licenses, permits, or certifications, including eighteen new licensed occupations. In contrast, licensure requirements (and regulatory mandates) for three occupations have been eliminated: Hypnotists, Environmental Health Specialists, and Shampoo Operators. Similarly, in 2004, there were approximately 340,000 professional licensees. Today, there are more than 470,000. This amounts to a 38% increase in licensed professionals, yet Indiana’s population has increased just 7% in that same time period.

Not all rules and regulations are bad. The Regulatory Moratorium excludes seven categories of rules that agencies may propose; the exceptions include the following: rules necessary to avoid a violation of a court order or federal law, rules that reduce State spending, and rules whose predominate purpose and effect are to address matters of emergency or health or safety, including the promulgation of an emergency rule under Ind. Code § 4-22-2-37.1.

Pursuant to Executive Order 13-03, the Regulatory Moratorium will remain in effect “until expressly modified or terminated by a subsequent Executive Order.” Read the entire executive order here.