Idaho Governor Brad Little signed two executive orders in January 2019 aimed at reducing state regulations on businesses and individuals in Idaho. He said that the orders would “help simplify Idaho state government and make it more accountable to citizens.”
The first executive order, the Licensing Freedom Act of 2019 (LFA), makes changes to the way Idaho implements and maintains occupational licenses. The LFA establishes a sunset rule that requires a regular gubernatorial review of every licensure requirement to determine whether those requirements still serve the public interest. The LFA also creates a list of sunrise factors that the governor and executive departments must consider with the legislature in order to impose new regulations on businesses, professions, or occupations.
The second executive order, called the Red Tape Reduction Act (RTRA), requires the state Division of Financial Management to submit annual reports detailing efforts to eliminate regulations and to streamline state government. In addition, the RTRA changes the procedures for proposing new rules through the 2021 fiscal year. First, state agencies must submit a statement identifying the impact that a new rule would have on individuals and small businesses. Second, agencies must name at least two existing rules to repeal or simplify or they must give reasons why existing rules cannot be simplified or removed. This requirement is similar to President Donald Trump’s Executive Order 13771, which requires federal agencies to eliminate two old regulations for every new regulation they issue.