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Centralization via Delegation: The Long-Term Implications of the Israeli Arrangements Laws

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Comparative Multidisciplinary Perspectives on Omnibus Legislation

Part of the book series: Legisprudence Library ((LEGIS,volume 8))

Abstract

The “Arrangements Law” has become one of the most powerful policy tools used by the Israeli government since 1985. Under this omnibus legislation, the Budgets Department at the Ministry of Finance (MOF) introduces various bills and amendments in various policy areas almost on an annual basis. While previous studies presented how the MOF reached a powerful position in the policymaking process through this institutional architecture, this chapter examines how the MOF has also sought control in the everyday regulatory processes. More specifically, the chapter examines the extent to which the Arrangements Law authorized ministers to issue regulations (e.g., secondary legislation), based on a content analysis of 38 Arrangements laws legislated between 1985 and 2018. This chapter shows that against the conventional wisdom, the process of delegation of authority from parliament to the executive is a process that centralizes, rather than decentralizes, regulatory powers. In particular, the MOF was involved in nearly 60 percent of all delegations through four mechanisms of centralization: (1) vesting itself with an authority to create regulation; (2) vesting itself and another ministry with a joint authority to create regulation; and holding veto power over the regulations of other ministries either by requiring (3) its consent or (4) consultation prior to publication. Altogether, these mechanisms extended the MOF’s power in everyday regulatory processes.

I would like to express my special thank David Levi-Faur, Adi Ayal, and Ittai-Bar-Siman-Tov for the helpful comments on this paper. I also thank the participants of the International Conference on “Rearranging the Arrangements Law: Comparative, Multidisciplinary, Empirical and Normative Perspectives on Omnibus Legislation” at Bar-Ilan University (January 1–3, 2019).

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Notes

  1. 1.

    Asiskovich (2011), Golan (2008) and Kop (2010).

  2. 2.

    Maor and Bar Nir (2008).

  3. 3.

    Ben-Bassat and Dahan (2006).

  4. 4.

    Nahmias and Klein (1999).

  5. 5.

    Cohen (2013), Gilad and Cohen (2018) and Sperling and Cohen (2012).

  6. 6.

    Page (2001), p. 5.

  7. 7.

    Kosti et al. (2019a).

  8. 8.

    Epstein and O’Halloran (1999) and Huber and Shipan (2002).

  9. 9.

    Page (2001).

  10. 10.

    Ibid.; Page (2012).

  11. 11.

    Kosti and Levi-Faur (2019).

  12. 12.

    Rose-Ackerman (2019).

  13. 13.

    Huber and Shipan (2002).

  14. 14.

    For more information on the historical grounds of the arrangements laws, see Hetis-Rolf in this book.

  15. 15.

    Nahmias and Klein (1999).

  16. 16.

    Kosti et al. (2019b).

  17. 17.

    Asiskovich (2011); Golan (2008); Horev T, Kedar N, Light and Shadow in the Development and Implementation of the National Health Insurance Law: Reflection of the Reform from Fifteen Years of Legislation, 2010; Kosti et al. (2019b).

  18. 18.

    Nahmias and Klein (1999).

  19. 19.

    Gilad and Cohen (2018).

  20. 20.

    Thatcher and Sweet (2002), p. 3.

  21. 21.

    Page (2001, 2012).

  22. 22.

    Huber (2000).

  23. 23.

    Page (2001).

  24. 24.

    (2003) Attorney General Guidelines on Secondary Legislation.

  25. 25.

    Page (2001).

  26. 26.

    Croley (1998), Miers and Page (1982), Page (2001), Slapper and Kelly (2012) and Taggart (2005).

  27. 27.

    Baldwin (1995), Miers and Page (1982), ibid., Slapper and Kelly (2012) and Taggart (2005).

  28. 28.

    Baldwin (1995), Kerwin (2010) and Slapper and Kelly (2012).

  29. 29.

    Frickey and Farber (1991), pp. 80–83.

  30. 30.

    Tsebelis (1999, p. 593).

  31. 31.

    Nahmias and Klein (1999).

  32. 32.

    Gilad and Cohen (2018).

  33. 33.

    Tsebelis (1995, 1999).

  34. 34.

    Knesset’s Website (2014) The Government Violated the Obligation to Implement Regulations in 50 Laws.

  35. 35.

    Government Decision No. 2588, 2017.

  36. 36.

    This research focuses mainly on the consent and approvals mechanisms as longs as they were given by governmental actors, such as cabinet ministers, and not by legislative actors, such as parliamentary committees.

  37. 37.

    Zarhia Z (2018) ‘Third Apartment Tax Case Restored Our Deterrence’ (Hebrew). In: Calcalist. https://www.calcalist.co.il/local/articles/0,7340,L-3739857,00.html. Accessed 27 December 2018.

  38. 38.

    Note that for the data analysis, the allocation of laws to years was not clear-cut. While most of the arrangements laws are legislated in the beginning or an end of a calendar year, referring either to the same budgetary year or the subsequent budgetary year correspondingly, there are two caveats. The first are laws that were legislated in the middle of a calendar year with a fragile connection to specific budgetary year. In such cases, if the law was legislated before June 30, I assigned it to its year of legislation, and otherwise, to the subsequent year of legislation. Additionally, as some laws were enacted along a biennial budget, I decided again to allocate them to one of or two years based on the same rule (for the match between years and laws, see Appendix 1).

  39. 39.

    Anastasopoulos and Bertelli (Forthcoming).

  40. 40.

    The legal language distinguishes approval (Eyishur) and agreement (Haskama), but we treat them similarly here.

  41. 41.

    Anastasopoulos and Bertelli (Forthcoming), Franchino (2007) and Huber and Shipan (2002).

  42. 42.

    Kosti et al. (2019b).

  43. 43.

    The “General” category refers potentially to all ministers.

  44. 44.

    The overall number of delegations included in the Arrangements laws between 1986 and 2019 was 893. Since some delegations provided authority to more than one minister, and due to the counting scheme, the overall number of authorities given to ministries was 1104.

  45. 45.

    As mentioned in the introduction, while Ministers are formally authorized to make regulations, the process of such everyday policymaking is dominated by the ministries.

  46. 46.

    Overall, it seems that the larger the law, the more likelihood it contains more delegations. Yet, the amount of delegation sharply differs.

  47. 47.

    Asiskovich (2011); Cohen (2013); Horev and Babad (2005); Horev T, Kedar N, Light and Shadow in the Development and Implementation of the National Health Insurance Law: Reflection of the Reform from Fifteen Years of Legislation, 2010.

  48. 48.

    Horev T, Kedar N, Light and Shadow in the Development and Implementation of the National Health Insurance Law: Reflection of the Reform from Fifteen Years of Legislation, 2010.

  49. 49.

    Amsterdamski S (2012) ‘We, the Ministry of Finance Officials, have Taken over the Country’ (Hebrew). In: Calcalist. https://www.calcalist.co.il/local/articles/0,7340,L-3575841,00.html. Accessed 27 December 2018.

  50. 50.

    Kosti and Levi-Faur (2019).

  51. 51.

    Epstein and O’Halloran (1999), Franchino (2007), Huber and Shipan (2002) and Huber et al. (2001).

  52. 52.

    Yackee and Yackee (2016).

  53. 53.

    (2003) Attorney General Guidelines on Secondary Legislation; Annual Report 65c for the Year 2014 and for Fiscal Year, 2015.

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Appendices

Appendix 1: Laws Included in the Dataset

 

Title of law

Date

Year of implementationa

1

Emergency Arrangements in the State Economy Law, 5746-1985

1.10.1985

1986

2

Economic Stability Law (Various Provisions), 5747-1987

9.4.1987

1987

3

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals), 5748-1988

17.4.1988

1988

4

Arrangements Law in the State Economy (Legislative Amendments), 5749-1989

7.4.1989

1989

5

Arrangements Law in the State Economy (Legislative Amendments), 5750-1990

6.4.1990

1990

6

Arrangements Law in the State Economy (Levies and Property Taxes), 5751-1991

31.1.1991

1991

7

Arrangements Law in the State Economy (Legislative Amendments), 5751-1991

27.3.1991

1991

8

Arrangements Law in the State Economy (Creating Conditions for Growth and Aliyah and Integration), 5751-1991

27.3.1991

1991

9

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals), 5752-1992

2.1.1992

1992

10

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals), 5753-1993

7.1.1993

1993

11

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals), 5754-1994

9.1.1994

1994

12

Arrangements Law in the State Economy (Legislative Amendments), 5755-1995

27.1.1995

1995

13

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals), 5756-1996

8.1.1996

1996

14

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals), 5757-1996

7.1.1997

1997

15

The Law for Enhancing the Growth and Employment for the Attainment of the Budget Goals for the Fiscal Year 1998 (Legislative Amendments), 5758-1998

15.1.1998

1998

16

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals and Economic Policy for the Fiscal Year 1999), 5759-1999

15.2.1999

1999

17

Arrangements Law in the Israeli State Economy (Legislative Amendments for the Attainment of the Budget Goals and Economic Policy for the Fiscal Year 2000), 5760-2000

10.1.2000

2000

18

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals and Economic Policy for the Fiscal Year 2001), 5761-2001

4.4.2001

2001

19

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals and Economic Policy for the Fiscal Year 2001), (Amendment, Repeal, and Postponent of Private Member’s Bills) 5761-2001

4.4.2001

2001

20

Arrangements Law in the State Economy (Income Tax Discounts), (Temporary Order) 5761-2001

4.4.2001

2001

21

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals and Economic Policy for the Fiscal Year 2002), 5762-2002

17.2.2002

2002

22

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals and Economic Policy for the Fiscal Years 2002 and 2003), 5762-2002

16.6.2002

2002

23

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals and Economic Policy for the Fiscal Year 2003), 5763-2002

29.12.2002

2003

24

Recovery Program for the Israeli Economy 2003 (Legislative Amendments for the Attainment of Budget Goals and Economic Policy for Fiscal 2003–2004), 5763-2003

1.6.2003

2003

25

Economic Policy Law for the Fiscal Year 2004 (Legislative Amendments), 5764-2004

18.1.2004

2004

26

Economic Policy Law for the Fiscal Year 2005 (Legislative Amendments), 5765-2005

11.4.2005

2005

27

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals and Economic Policy for the Fiscal Year 2006), 5766-2006

15.6.2006

2006

28

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals and Economic Policy for the Fiscal Year 2007), 5767-2007

11.1.2007

2007

29

Arrangements Law in the State Economy (Legislative Amendments for the Attainment of the Budget Goals and Economic Policy for the Fiscal Year 2008), 5768-2008

1.1.2008

2008

30

Economic Efficiency Law (Legislative Amendments to for Implementing the Economic Plan for 2009–2010), 5769-2009

23.7.2009

2010

31

Economic Policy Law for the Years 2011 and 2012 (Legislative Amendments), 5771-2011

6.1.2011

2011

32

The Law for Changing National Priorities (Legislative Amendments for the Attainment of the Budget Goals for 2013–2014), 5773-2013

5.8.2013

2014

33

Economic Efficiency Law (Legislative Amendments for the Attainment of the Budget Goals for the Budget Years 2015–2016), 5775-2015

30.11.2015

2016

34

Economic Efficiency Law (Legislative Amendments for Implementing the Budget Goals for the Budget Years 2015–2016), 5775-2015

30.11.2015

2016

35

Economic Efficiency Law (Legislative Amendments for the Attainment of the Budget Goals for the Budget Years 2017–2018), 5777-2016

29.12.2016

2017

36

Economic Efficiency Law (Legislative Amendments for Implementing the Budget Goals for the Budget Years 2017–2018), 5777-2016

29.12.2016

2017

37

conomic Efficiency Law (Legislative Amendments for Implementing the Economic Policy for the Budget Year 2019), 5778-2018

22.03.2018

2019

38

Economic Efficiency Law (Legislative Amendments for the Attainment of the Budget Goals for the Budget Year 2019), 5778-2018

22.03.2018

2019

  1. aRound

Appendix 2: Number of Words in the Arrangements Laws, 1986–2019

figure a

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Kosti, N. (2021). Centralization via Delegation: The Long-Term Implications of the Israeli Arrangements Laws. In: Bar-Siman-Tov, I. (eds) Comparative Multidisciplinary Perspectives on Omnibus Legislation. Legisprudence Library, vol 8. Springer, Cham. https://doi.org/10.1007/978-3-030-72748-2_4

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