On January 5, 1995, Governor George E. Pataki issued an Executive Order putting a 90-day moratorium on new state rules and regulations that would further burden New York's economy.

"The state bureaucracy has a reputation and a record of imposing rules and regulations that go far beyond what the Legislature intended," Governor Pataki said. "We want to stop that immediately, to make sure agencies remain true to the letter of the law and don't impose burdens that will be a drag on New York's ability to create and retain jobs."

Executive Order No. 2 provided possible exceptions for rules and regulations that would reduce an existing regulatory burden, have a judicial or statutory deadline, responds to certain emergencies, or are necessary to enforce criminal law. Those exemptions would be determined by the Governor's Counsel and Secretary, and the Director of Regulatory Reform, when appointed.

Executive Order No. 2 also directed each agency, department and other office of the bureaucracy to evaluate all existing rules and regulations for economic impact.

"This moratorium is only one step. We will reinvent regulation by demanding that our agencies care about people and jobs, not just paperwork and rules," Governor Pataki said.

Executive Order 2 reads:

WHEREAS, excessive rules and regulations have unduly burdened the State’s economy and imposed needless costs on the businesses and citizens of this State; and 

WHEREAS, this administration intends to review all proposed rules and regulations to ensure that no rule or regulation is more demanding than required to meet legislative goals; 

NOW THEREFORE, I, George E. Pataki, Governor of the State of New York, by virtue of the authority vested in me by the Constitution and Laws of the State of New York, do hereby establish a 90 day moratorium on the adoption of regulation proposed pursuant to the State Administrative Procedures Act by any department, agency, division, commission, bureau or other entity over which I have executive power; 

Provided, however, that a department, agency, division, commission, bureau or other entity over which I have executive power, may adopt or readopt a proposed rule or regulation or an emergency rule or regulation when the Counsel to the Governor, Secretary to the Governor and Director of Regulatory Reform upon his appointment and in consultation with the Secretary to the governor, have determined that such adoption or readoption as the case may be, relaxes a current regulatory burden, is subject to a statutory, administrative or judicial deadline, responds to emergencies affecting the public health, safety or welfare, or assists in the enforcement of criminal laws.

I further direct each department, agency, division, commission, bureau or other entity over which I have executive power to evaluate existing and proposed rules or regulations, to identify for modification, rescission or withdrawal those rules or regulations which have unduly burdened the economy of the State of New York and caused job losses or which are more demanding than required to meet legislative goals.

Prior to the end of the moratorium each department, agency, division, commission, bureau and other entity over which I have executive power shall submit a written report to me containing recommendations for regulatory reform consistent with the above objectives. The Secretary to the Governor and director of Regulatory Reform, upon his appointment and in consultation with the Secretary to the Governor, is hereby directed to evaluate such recommendations.

For the purpose of this Executive Order, the term rule shall have the same meaning as defined in § 102 of the State Administrative Procedure Act and emergency rule shall have the same meaning as defined in § 22(6) of the State Administrative Procedure Act.

Notice of this moratorium shall be published in the New York State Register immediately.