In 1999, regulations were drafted regarding negotiation between party caucuses in the legislative Yuan, which can be found under the heading “Party Caucus Negotiation” in the 12th section of he Legislative Yuan’s law regarding the exercise of official powers. They have proven to foster a conducive environment in which such negotiations can be conducted. People are anxious for reform and hope that the Legislative Yuan-this important decision-making center for national politics-can improve the functionality of its legislative powers. Therefore, the “Improve Bill Negotiation System” is one of the most important principles behind the Congress reform bill. On January 15, 2002, revisions to related sections of the bill were completed, making negotiations between party caucuses even more efficient. Nevertheless, the political environment has changed and an optimized level of decorum on the part of politicians has not yet been attained. Apart from these, there are several other factors that have also hindered reforms in Congress. Solely relying on party caucus negotiations to increase the effectiveness of matters Congress is infeasible. This paper will review ideas and opinions found in editorials and other documents as well as problem observed during the actual negotiation process, with the hope that measures can be formulated thereby and proposal can be raised to solve the problem, or at the very least, that it can serve as a helpful reference guide in resolving the problem. The main points addressed in the paper are as follows. First, an outline of the party caucus negotiation system will be given, as well as an explanation of current conditions related thereto. Next, the actual condition of party caucus negotiations and their results will be investigated by specifically analyzing the deliberation process of the “Exercise of Official Police Powers” law. Related problems raised by scholars and experts will be compiled along with the resolutions to such. These proposed resolutions can be divided into three main categories. 1) Regarding the problem of improving he basic environment for party caucus negotiations, the following solutions have been proposed: increase the effectiveness of inter-party negotiation, promote the change of primary political parties from an “externally created party” to that of an “internally created party”; expand the procedure Committee’s manpower to augment the autonomy and representation of each party caucus in the Legislative Yuan; and strengthen the power and influence of party leadership and the party whip. 2) Regards, the problem of the room for improvement in party caucus negotiation norms, proposed resolutions are as follow: raise the minimum standards for establishing caucuses and restrict arbitrary motions by party caucuses; make the negotiations of party caucuses more transparent; standardize the number of representative each party caucus can send to a negotiation meeting based on the total number of people in each party caucus; limit the content of such negotiations to the items on the meeting’s agenda; and incorporate stipulations for party caucus negotiations into the general regulations. 3) Regarding the problem of improving the execution of party caucus negotiation standards, the following has been proposed: enforce deadlines for items being negotiated: enforce regulations regarding the avoidance of conflicts of interests; and look into the situation of party caucus negotiations in countries with more advanced forms of democracy.