04/15/2003 09:05 AM Senate STA

        HB  34-REPEAL SUNSET OF NEGOTIATED REG.MAKING                                                                       
                                                                                                                              
BARBARA COTTING,  staff to  Representative Jim  Holm, paraphrased                                                               
from the sponsor statement:                                                                                                     
                                                                                                                                
     A  process called  negotiated  regulation making  (Neg-                                                                    
     Reg) was  authorized in  statute in  SLA 1998,  Ch 117.                                                                    
     The original  bill, HB 264,  has a sunset date  of July                                                                    
     1, 2003. HB  34 repeals that sunset,  thus allowing the                                                                    
     Neg-Reg process to continue.                                                                                               
                                                                                                                                
     Negotiated  regulation   making  is   widely  supported                                                                    
     because  it makes  the regulation-writing  process more                                                                    
     applicable to  reality. It allows  a team  of affected,                                                                    
     interested    parties   to    negotiate   and    submit                                                                    
     recommendations  before the  regulations are  published                                                                    
     for public review.                                                                                                         
                                                                                                                                
     Most notable  successes to date  have been  cruise ship                                                                    
     regulations  and  charitable  gaming  regulations,  two                                                                    
     extremely  contentious   issues  that   were  favorably                                                                    
     resolved  using  the   negotiated  regulation  process.                                                                    
     Though  it  does  involve   some  up-front  efforts  to                                                                    
     assemble  the negotiating  team, it  saves far  more at                                                                    
     the other  end of  the process by  eliminating lawsuits                                                                    
     and lengthy public appeals.                                                                                                
                                                                                                                                
     Another  important  advantage   is  that  the  affected                                                                    
     industries  are  involved  from the  beginning  so  the                                                                    
     resulting   regulations   are   far   more   practical,                                                                    
     enforceable, and business-friendly.                                                                                        
                                                                                                                                
     Passage  of   HB  34  before   the  end  of   the  2003                                                                    
     legislative  session will  allow this  valuable Neg-Reg                                                                    
     process to remain in statute.                                                                                              
                                                                                                                                
TAPE 3-20 SIDE A                                                                                                              
10:45 am                                                                                                                      
                                                                                                                                
Examples of how  this process has been  successfully used include                                                               
the Department  of Environmental Conservation and  the Department                                                               
of Revenue with cruise ship  waste disposal and charitable gaming                                                               
regulations.  An  advantage  to  this process  is  it  eliminates                                                               
public  appeals  and lawsuits  after  the  regulations have  been                                                               
implemented. She noted the two zero fiscal notes.                                                                               
                                                                                                                                
CHAIR GARY  STEVENS noted Craig  Tillery was available  to answer                                                               
questions.                                                                                                                      
                                                                                                                                
SENATOR JOHN COWDERY asked how often this was used.                                                                             
                                                                                                                                
CRAIG TILLERY  from the Department  of Law stated  the negotiated                                                               
rule making has  been used twice that he's aware  of. It was also                                                               
used as a  model with respect to non-tank  vessel legislation and                                                               
regulations.                                                                                                                    
                                                                                                                                
SENATOR COWDERY  asked what negative  impact would result  if the                                                               
law were to sunset on July 1.                                                                                                   
                                                                                                                                
MR.  TILLERY replied  the negative  impact  is the  law would  no                                                               
longer be available. The Administration  has taken no position on                                                               
the bill. The  department has reviewed it and there  are no legal                                                               
problems the way  it is drafted. It's a rare  tool but works well                                                               
in some instances and has a place in the toolbox.                                                                               
                                                                                                                                
SENATOR COWDERY made  a motion to move HB 34  from committee with                                                               
individual  recommendations and  attached fiscal  note. He  asked                                                               
for  unanimous  consent. There  being  no  objection, it  was  so                                                               
ordered.