(October 7, 2011) Governor Brown has signed into law a California Chamber of Commerce-supported bill that, among other things, requires a standard economic impact analysis for major regulations at the beginning of the regulatory process.

“Governor Brown’s signature on SB 617 sends an important message to job creators that California is taking steps to improve our regulatory climate,” said CalChamber President and CEO Allan Zaremberg. “Regulatory overreach is often cited as a reason California is perceived as being hostile to business. While there is still work to be done, Governor Brown’s action on SB 617 will move us toward our goal of eliminating uncertainty.”

SB 617 (Calderon; D-Montebello) will create more transparent rulemaking, will improve oversight of agencies and will encourage policymakers to implement the most cost-effective regulatory option. Currently, any evaluation of a proposed regulation’s fiscal impact comes at the end of the process and there is no uniform standard of analysis, if it is done at all. With SB 617 in place, agencies will be held to new standards that require a robust economic analysis of proposed major regulations. 

Economic growth and prosperity depend on a predictable and rational regulatory climate.  For more than two years, CalChamber has urged lawmakers to support a process that evaluates the impact of proposed regulations on the private sector similar to what is done for bills that impact the state budget. CalChamber believes SB 617 is an important first step toward comprehensive regulatory reform in California. 

Staff Contact: Marc Burgat