A Snapshot of California Regulation in 2019
By James Broughel and Jonathan Nelson
July 3, 2019
It would take an ordinary person almost three years to read the entire US Code of Federal Regulations(CFR), which contained nearly 104 million words in 2017. 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 large body of federal regulation. A prime example is the online version of the 2019 California Code of Regulations(CCR). The titles of the CCR are organized by the type of regulation they contain. Figure 2 shows that title 24 of the CCR, the Building Standards Code, contains 75,712 restrictions. By this measure, this is the biggest regulator in the CCR. Coming in second is title 8, Industrial Relations, with 51,139 restrictions.
Federal regulation tends to attract the most headlines, but it is important to remember that the nearly 104 million words and 1.09 million restrictions in the federal code significantly understate the true scope of regulation in the United States. States like California write millions of additional words of regulation and hundreds of thousands of additional restrictions. State-level requirements carry the force of law to restrict individuals and businesses just as federal ones do.
Researchers are only beginning to understand the consequences of the massive and growing federal regulatory system on economic growth and well-being in the United States. Meanwhile, the effects of state regulation remain largely unknown. If this snapshot of California regulation in 2019 is a good indicator, then the states are also active regulators, suggesting that the full impact of regulation on society is far greater than that of federal regulation alone.
The author would like to thank Michael Kotrous for helpful research and programming assistance that contributed to this report.