“We heard loud and clear that Montana’s regulatory schemes burden them. Too many unnecessary burdensome regulations cost them time and money. It’s past time to cut back this thicket of red tape, and it’s one of my top priorities.”
Executive Order No. 1-2021 creates an advisory council to review the time and resources our citizens, farmers, ranchers and business owners are spending understanding and complying with the rules and regulations set forth in the Administrative Rules of Montana. In short, this executive order is looking at doing away with the burdens of excessive red tape.
A 2019 CNBC online article ranking put Montana in 33rd place nationally when it came to excessive red tape. The article applauded the quality of life but criticized its “sluggish, low-tech economy.” Three out of 10 categories received a D- (access to capital, technology and innovation, and the workforce), three received a D+ (cost of living, the economy and education), two received a C+ (business friendliness and infrastructure), one (quality of life) was graded B, and one (cost of doing business) was graded A-. Montana’s citizens seem to have agreed that the state had problems when it came to ease of moving commerce along.
Governor Greg Gianforte (R-Mont.) was elected as Montana’s 25th governor Nov. 3, 2020, after a campaign that focused on improving Montana’s economy. Governor Gianforte had the largest margin of victory since 1920 for a first-term governor and won more votes than any other gubernatorial candidate in the state’s history. He had previously served as an at-large U.S. Congressional Representative (2017-2021).
Our goal is to leave no stone unturned as we identify excessive and unnecessary regulations, and we’re relying on public input to do that. We have a portal on the governor’s website where all stakeholders can submit comments, which we encourage your members to do. We’ll also be holding listening sessions over the next several months throughout the state.
Governor Gianforte created the Red Tape Relief Advisory Council Jan. 5, 2021, and chose the lieutenant governor, Kristen Juras, to be its presiding officer. She is a fourth-generation Montanan. A report and plan were due Aug. 1, 2021, and the council is set to disband Dec. 31, 2021. The council has been asked to correct the balance on regulatory reform within the state.
This is an exciting initiative and one that has been well-received by small business owners all over the state. Governor Gianforte and Lt. Governor Juras are welcoming reform suggestions and have set up a website for feedback.
MTADA had the opportunity to recently touch base with Lt. Governor Juras about Executive Order No. 1-2021:
Q: The executive order creating the council includes startling information about the need for creating the council. It states that the Administrative Rules of Montana contain 4.7 million words that would take an average reader 263 hours to read. That’s a lot of words and a lot of time to be fluent, if you will, in the rules and regulations. It’s safe to make the assumption that probably no small business owner has read the Administrative Rules of Montana. Would you agree?
A: Absolutely. Some of the rules are so complex that a business owner has no choice but to hire an attorney to navigate them. Unfortunately, that’s an expense that’s often passed onto the consumer, making it more difficult for Montanans to pay for goods and services.
Q: The reality is that most states would have rules and regulations that most small business owners find burdensome and difficult to navigate. This situation didn’t happen overnight. Why is now the right time to act?
A: We have a governor who is committed to improving the business climate and creating more job opportunities in Montana. Improving Montana’s regulatory climate is a top priority of Governor Gianforte’s, which is why he created the Red Tape Relief Task Force on his second day in office. He’s charged us with conducting a top-to-bottom regulatory review of all state agencies to identify excessive, outdated, and unnecessary regulations.
Q: Why were you chosen to preside over the council? How has your work as an attorney and law school professor prepared you for this challenge?
A: Having represented farmers, ranchers, and small business owners for thirty-eight years, I’m familiar with the roadblocks and delays associated with a burdensome regulatory environment. Governor Gianforte and I have heard these Montanans loud and clear, and we’re taking steps to provide them with much-needed red-tape relief.
Q: The council is supposed to have one employee from each state agency with rulemaking authority. How many people are currently serving on the council?
A: The council is comprised of fourteen members – one person from each of our thirteen state agencies and myself.
Q: How are you ensuring that all stakeholders get a voice on the council without allowing progress to stall?
A: Our goal is to leave no stone unturned as we identify excessive and unnecessary regulations, and we’re relying on public input to do that. We have a portal on the governor’s website where all stakeholders can submit comments, which we encourage your members to do. We’ll also be holding listening sessions over the next several months throughout the state.
Q: Where does the committee currently stand on the work to be done?
A: Right now, each agency is developing a customized plan to implement regulatory reform within their individual state agency. They are reviewing their regulatory framework and identifying rules that are burdensome and outdated for recommendation to the governor.
Q: What will happen after the committee issues its report?
A: By Dec. 31, 2021, we will have an inventory of rules and statutes ripe for regulatory reform by Governor Gianforte. We’ll begin the rulemaking process in February 2022.
Q: This article is for Montana’s auto dealer industry. How will the council’s work benefit them?
A: Through regulatory reform, we will streamline permit processes, reduce errors, improve response time, and reduce the number of regulations hamstringing Montana’s auto dealers.
Q: Who are the other beneficiaries of regulatory reform?
A: With 4.7 million words in the Administrative Rules of Montana, burdensome regulations affect every Montanan. All Montana farmers, ranchers, businesses, and consumers will benefit from a better regulatory framework. The governor’s regulatory reform will help grow Montana’s economy and bring good-paying jobs to Montana.
Q: One year seems like a very short time to solve such a large problem. Will the committee be able to complete its work by Dec. 31, 2021? If not, is an extension realistic?
A: This is a marathon, not a sprint. Reviewing and rolling back unnecessary regulations is a long-time priority of the governor’s to help grow Montana’s economy, and we’ll continue to review regulations on a regular basis.
Q: Is there anything else you would like to say to MTADA’s members?
A: We want to hear from you! Visit our online portal at https://governor.mt.gov/Red-Tape-Relief and submit your feedback on how we can cut back the thicket of red tape in the auto dealer industry.
