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Negotiated rule-making is an ADR method which is used as an alternative to the traditional approach of issuing regulations after a lengthy notice and comment period. In this method, agency officials and affected private parties, representatives of the regulated industry, public interest groups, and other stakeholders engage in joint negotiation under the guidance of a neutral facilitator such as an administrative agency for drafting rule, prior to initiating notice and comment under the Administrative Procedures Act. Public opinion on the resulting proposed rule is then sought by publishing the proposed rule in the Federal Register in order to decide whether to modify or adopt it.
This method helps in avoiding subsequent litigation from the proposed rule since private parties' perspectives and expertise are used for arriving at the proposed rule by encouraging participation by interested stakeholders.