Credit were credit is due, and this time it goes to S.E.C. Chairwoman Mary Schapiro. Yesterday, Schapiro announced improved public participation procedures for opening up SEC’s rulemaking proceedings to the public.

Ms. Schapiro spoke at a forum sponsored by the United States Chamber of Commerce at which she outlined the new procedures and noted that the commission had set up a Web site for submission of comments.

The new law calls for the S.E.C. to draft regulations that could, for example, govern corporate disclosure of executive compensation, allow shareholders to nominate candidates for company boards, tighten oversight of credit rating agencies and, together with the Commodity Futures Trading Commission, impose new capital and margin requirements on derivatives trading.

The S.E.C. began the first of the act’s required studies on Tuesday, asking investors for feedback on whether the practices of stock brokers and investment advisers should continue to be subject to different regulatory standards.

By law, the S.E.C. regularly seeks comments on proposed rules after a regulation has been drafted and published, a practice that will continue. By expanding the process beyond the legal requirements, Ms. Schapiro said “the idea is to offer maximum opportunity for public comment and to provide greater transparency.”

All comments submitted to the new Web site will be posted for public viewing, Ms. Schapiro said. In addition, when industry or consumer groups meet with members of the commission’s staff to discuss rule proposals, the meeting’s agenda will be publicly released, she said. The commission will also conduct public hearings on selected topics.

Publishing an agenda is a good first step: it tells the public that agency staff are meeting with industry, and when, and what they’re discussing. But the SEC needs to go much further.

The changes Schapiro announced move in the direction I wrote about here — Banning Secret Meetings Isn’t Hard — in which I criticized the Federal Communication Commission (FCC) for holding secret meetings with industry reps and lobbyists on how to undermine net neutrality. From the original Wall Street Journal article (subscription required):

WASHINGTON–Federal Communications Commission officials are quietly holding talks with phone and cable companies about a legislative compromise that would give the agency authority over Internet lines without the need to adopt a controversial proposal to reregulate Internet lines.

FCC Chief of Staff Edward Lazarus and other senior FCC staffers are holding closed-door meetings with a small group of lobbyists representing Internet providers, including AT&T Inc., Verizon Communications Inc., the National Cable & Telecommunications Association, and Internet services providers, such as Google Inc. and Internet phone provider Skype Ltd.

I emphasized then that government agencies can do a lot more to open their proceedings to public participation, including noticing all meetings with industry/applicants, posting all comments, allowing public attendance at all key meetings between industry and staff (and commissioners), and so on.

Mary Sharpiro’s SEC seems to be moving in this direction, and that’s good, but it’s not enough. She should also notice all meetings, and let the public attend, and if agency staff create any documents summarizing meetings with industry, make those public. It takes a little more work, but it’s essential if they really care about genuine, effective public participation.

In the meantime, President Obama’s not really about deficit reduction (catfood) commission continues to function in secret on public policy matters of utmost importance to the public and the democratic process, and there is no public policy excuse for allowing it to continue to operate behind closed doors. The catfood commission’s behavior is a dark stain on the entire concept of government transparency and public access, making a mockery of the Administration’s claims about transparency and honest government.

The Deficit (Catfood) Commission should be opened up, or shut down. Its continuing secrecy and exclusion of the public is a national disgrace, and those who defend this affront to democracy — in Congress or the White House — should be condemned by the media and everyone who believes in open government.

– All meetings of the Commission and working subcommittees should be noticed and open to the public with an opportunity to be heard. No exceptions.

– All documents, reports, analyses, proposals, recommendations, including drafts circulated among Commissioners should be immediately disclosed and posted on a public website. No exceptions.

– All meetings between individual Commissioners and/or Commission staff with affected interest groups relating to matters before the Commission should be noticed and a summary of the content of each meeting posted. Any documents used, circulated or referenced in each such meeting should be posted.

– Any proposals and recommendations should be supported by independent expert analysis, which should at least respond in writing to every significant counter-proposal presented by the interested public, explaining why the counter-proposal was rejected and why the recommended solutions are preferable.

Open it up or shut it down. Which part of this does the WH not understand?

John Chandley, who has done this, so it ain’t that hard