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.