Idaho Gov. Brad Little has the opportunity to snap his fingers to bring about a dramatic deregulation agenda, but there’s little to suggest the governor will take full advantage of the situation. Through the past two weeks, conservative and libertarian publications have gushed as they reported that Little, a first-term Republican in a conservative stronghold, has the chance to reset his state’s regulatory framework. Some called it a revolution. Some dubbed it a reset. Some hoped for Little to snap his fingers and make half of the state’s regulatory code, which fills in legal gaps created by statutes, disappear. What’s likely to occur is far less thrilling. Before we get to what’s unfolding in Gem State, however, let’s talk about how all this happened. State Lawmakers Review New Regs Every Year A provision in the Idaho constitution lets lawmakers review new regulations written by executive agencies. Each year, the legislative session starts with a review, which usually lasts two to three weeks. This review power is important, as it empowers lawmakers to keep a close eye on agency activities and protect taxpayers from tomfoolery. A couple of years ago, for example, the state’s tax agency decided to clear some ambiguity in Idaho statutes regarding cloud computing. That somehow led the agency to impose a 6 percent sales tax on services like Netflix, Hulu, and Spotify. Idaho’s review process brought that decision to light. Legislators decided the agency’s unilateral tax hike didn’t reflect their will, so they passed a bill to repeal the regulation. Earlier this year, the Idaho House and Senate bargained with each other over ideas to improve that process. Republican House members sought to give each chamber the power to reject new regulations. Currently, a proposed regulation stands even if it receives approval from one legislative body and not the other. The gamesmanship turned into a stalemate in late March, and House leadership took a hostage: the yearly bill to reauthorize all state regulations. The Senate moved not an inch. Eventually, both bodies adjourned without passing the bill to reauthorize the rules. That means that when the clock strikes midnight on June 30, 2019, the state’s rules will vanish. Well, for a split second. Little announced last month that he will reinstate most of the regulations at the beginning of June. Little’s announcement ensures there’s no gap in the state’s regulatory authority, but the rules will still need legislative approval next year...MORE
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