(September 14, 2011) A California Chamber of Commerce-supported bill that requires a standard economic impact analysis for major regulations be done at the beginning of the regulatory process is headed to the Governor’s desk.

SB 617 (Calderon; D-Montebello/Pavley; D-Agoura Hills) reforms the regulatory process by requiring an economic analysis of all major regulations at the beginning of the regulatory process, thus providing more transparency and better data on which to base selection of most cost-effective regulatory alternative.

This analysis will then drive the development and selection of regulations that fully meet the goals of the underlying statute while having the least negative impact on the state’s economy.

If the agency adopts anything other than the most cost-effective option, it must state on the record why and justify its choice.

Currently a proposed regulation’s fiscal analysis, if any, comes at the end of the process and is not based on uniform standards of analysis.

Economic growth and prosperity depends on a predictable and rational regulatory climate. SB 617 sends a message to investors and employers that California is taking a meaningful step in this direction by requiring a robust economic analysis for major regulations. Additionally, this bill provides for a more transparent regulatory process as well as oversight for state agencies that are involved in the process. These are sensible changes that are an important first step toward regulatory reform in California.

Action Needed

The CalChamber is calling on all employers to write Governor Edmund G. Brown Jr. and urge him to sign SB 617.

For more information on SB 617 or to view a sample letter, please visit our website at www.calchambervotes.com.

Staff Contact: Marc Burgat