Earlier today Jon Guze posted on a unique regulatory approach in Canada:
a “One-for-One Rule” that requires the elimination of one old regulation for every new regulation that is introduced
In my Spotlight report lauding sunset laws to combat overregulation in North Carolina, I also discussed possible “sunrise” laws to consider. Among them was this idea, which I termed regulatory reciprocity:
Regulatory reciprocity, a.k.a. the “Stossel Rule”
Even if periodic review were in place, there would be no cap on the total stock of state regulation. An idea promoted by consumer reporter and Fox Business Network host John Stossel would require agencies to trade in old rules for every new rule.If North Carolina were to adopt a form of the “Stossel Rule” — “For every new rule, repeal two old ones” — it would reduce the total number of regulations over time. A policy of regulatory reciprocity would also introduce opportunity cost to agency rulemaking, as agencies would have to consider the tradeoffs of creating a new rule. It could also lead to a voluntary speeding up of a periodic review if one were in place; i.e., an agency might face internal pressure not to wait the full ten years to report its “unnecessary” rules if identifying and culling them out now would clear the path for a new rule it considered necessary. (A rule readopted under periodic review would not count as a new rule for the purpose of regulatory reciprocity.)
To be the most effective, however, regulatory reciprocity should trade like rules for like. In other words, trading in two unnecessary minor rules for one major rule could have a net negative impact on the state’s economic climate, even though it would reduce the total number of rules. Therefore, a Stossel Rule approach for North Carolina would best require trading in old major rules if an agency wanted a new major rule.
Incidentally, regulatory reciprocity need not be limited to a “two-for-one” reciprocity arrangement. Stossel favored each new rule costing as much as 10 old rules.
