Governor Signs Job Creator Bill Promoting Government Accountability and Transparency
(September 24, 2012) A California Chamber of Commerce-supported “job creator” bill that will assist in presenting a clear understanding of economic impacts to the ailing residential construction industry has been signed by the Governor.
AB 1612 (Lara; D-Los Angeles) promotes government accountability and a transparent process by requiring proposed new residential building standards to include the cost of compliance, potential benefits of the proposed standard and the underlying model used to achieve those estimates.
Since 1982, state agencies have been required to prepare an economic impact analysis that clearly identifies any adverse economic impacts on business, small business and housing.
Currently, the economic impact analysis is most often accompanied by boiler-plate language that states:
“The agency has determined that there will be no significant economic impact on business/housing.”
This language gives no indication to the interested parties as to what it will actually cost (in dollars) to comply with the proposed regulation.
For regulations related to housing, AB 1612 requires the proposing agency to specifically cite its “estimated cost and benefit of compliance” with the proposed regulation and to make available upon request the assumptions/analysis used in arriving at the estimate.
If an agency is able to determine that a regulation will have no significant impact on the economy, that agency should know what the proposed regulation will cost.
AB 1612 is consistent with the goals of the CalChamber 2012 Renew Agenda and will help position California for economic recovery.
Staff Contact: Marc Burgat