It would take an ordinary person almost three years to read the entire US Code of Federal Regulations (CFR), which contained over 103 million words in 2012. The sheer size of the CFR poses a problem not just for the individuals and businesses that want to stay in compliance with the law, but also for anyone interested in understanding the consequences of this massive system of rules. States also have sizable regulatory codes, which add an additional layer to the enormous body of federal regulation. A prime example is the 2017 version of the Oregon Administrative Rules.
A tool known as State RegData—a platform for analyzing and quantifying state regulatory text—was developed by researchers at the Mercatus Center at George Mason University. State RegData captures information in minutes that would take an ordinary person hours, weeks, or even years. For example, the tool allows researchers to identify the industries most targeted by regulation by connecting keywords relevant to those industries with restrictive word counts (known as regulatory restrictions). These are words and phrases like “shall,” “must,” “may not,” “prohibited,” and “required” that can signify legal constraints and obligations. As shown in figure 1, the top three industries with the highest estimates of industry-relevant restrictions in the 2017 Oregon Administrative Rules are ambulatory healthcare services, chemical manufacturing, and nursing and residential care facilities.
State RegData also reveals that the Oregon Administrative Rules contains 167,401 restrictions and roughly 14.8 million words. It would take an individual about 821 hours—or almost 21 weeks—to read the entire Oregon code. That’s assuming the reader spends 40 hours per week reading and reads at a rate of 300 words per minute. For comparison, in 2016 there were over 1.08 million additional restrictions in the federal code. Individuals and businesses in Oregon must navigate all of these restrictions to remain in compliance.
Researchers are only beginning to understand the consequences of the massive and growing federal regulatory system on economic growth and other measures of well-being in the United States. Meanwhile, the effects of state regulation remain largely unknown. If this snapshot of Oregon regulation in 2017 is a good indicator, then the states are also active regulators, suggesting the true impact of regulation on society is far greater than that of federal regulation alone.