CBIA-Supported Reg Reform Sent to Governor
With just minutes left before the end of session, legislation that would enact major changes in the way state agencies analyze and notice their proposed regulations was approved by the Legislature and sent to the Governor for his signature. SB 617 (Calderon, D – Montebello) requires the Department of Finance to develop and adopt guidelines by November 1, 2013, that will help state agencies better assess the cost and benefits of major regulations.
As part of this assessment, the agencies will be required to address the following:
• The creation or elimination of jobs and/or businesses in California
• The competitive advantage or disadvantage on in-state businesses
• The positive and/or negative impacts on investment in California
Of particular note are the provisions of the bill that seek to inform the rulemaking process at its outset about the costs and benefits of the agency proposal. For the past several decades, state agencies have rarely cited the estimated compliance cost of the proposed regulation in either the public Notice or Statement of Reasons. This information is critical to the understanding of any regulatory proposal, and SB 617 will certainly help to make the rulemaking process more transparent and informative for all involved.
For more information, contact Bob Raymer.
