RD403 - Progress Report on the Regulatory Reduction Pilot Program – October 1, 2019

Executive Summary:

Chapters 444 and 445 of the 2018 Acts of Assembly create a regulatory reduction pilot program to be administered by the Department of Planning and Budget (DPB), under the direction of the Secretary of Finance. The pilot program focuses on two pilot agencies, the Department of Criminal Justice Services (DCJS), and the Department of Professional and Occupational Regulation (DPOR). Each pilot agency was directed to submit a “regulatory catalog" listing each regulatory requirement, and then to reduce these requirements by 25 percent over a three-year period ending July 1, 2021.

The initial results of the pilot program indicate that each pilot agency exceeded the first year reduction objective of 7.5 percent. DCJS reported a reduction of 10.14 percent, which it achieved primarily by streamlining the application process for licenses, registration, or certifications. The regulatory boards supported by DPOR reported an overall reduction of 9.78 percent, which they primarily achieved by lowering barriers to entry into affected professions and improving regulatory clarity. DPOR reflects the most common form of regulatory activity in Virginia, in which regulations are promulgated by regulatory boards and the agencies primarily provide staff support.

The remaining executive branch agencies subject to the Virginia Administrative Process Act (APA) are required to submit a regulatory catalog by July 1, 2020. In Virginia, regulations are developed in accordance with the APA. In some cases, however, a regulation may be promulgated without adhering to the APA because a statutory exemption applies. Overall, about half of all regulations promulgated in the last 15 years have been exempt from the APA and executive branch review. DPB has identified 41 additional executive agencies that are expected to submit a regulatory catalog, plus another 30 agencies that are exempt from the pilot program because they have a statutory exemption from the APA.