Sen. Cannella: Regulatory Reform Necessary for Long-Term Economic Growth

Cannella Introduces Legislation Highlighting Economic Costs of State Regulations
Tuesday, March 1, 2011

In light of the state’s sky-high unemployment rate and the urgent need to keep California competitive in the global marketplace, State Senator Anthony Cannella (R-Ceres) today announced introducing Senate Bill 639, legislation requiring that all regulations undergo an economic impact analysis before being adopted or amended by the California Environmental Protection Agency (CalEPA) or the Division of Occupational Safety and Health (Cal/OSHA).

“As a small-business owner, I’ve witnessed firsthand the tremendous frustration caused by onerous regulations that stifle job creators’ efforts to expand and hire workers. There’s no doubt that, in order to get our economy growing again, we must reform the patchwork of regulations currently in place,” said Cannella. “Requiring that state agencies conduct an economic impact analysis before adopting or amending regulations will highlight not only the high cost of starting and growing a business here in California, but also the alternative ways we can accomplish our shared goals of protecting the environment and of giving small-business owners the freedom to grow and succeed.”

SB 639 is designed to help thoroughly analyze proposed regulations’ economic impact before being adopted, amended or repealed by CalEPA and Cal/OSHA. In particular, the economic impact analysis must take into account each regulation’s General Fund cost, its cost to private-sector employers, the amount of job loss expected, a description of all possible alternatives, a cost-benefit analysis of each alternative and a summary of written comments regarding the proposed action. This economic analysis will be conducted by an independent firm or university, and its ultimate report will be made available to the public on the state agency’s website.

“The regulatory environment is increasingly absorbing more and more of the farmer’s resources – both time and money,” said Western Growers President and CEO Tom Nassif. “This has occurred in part because there has been little meaningful consideration of the true economic impact of each regulation, not to mention the cumulative impact of the state’s regulations. Requiring truly independent economic analysis of every new regulation is one important step toward restoring the balance between our desire to protect California’s natural resources and the need to grow our economy.”

Western Growers, the sponsor of SB 639, is an agricultural trade association whose 3,000 members grow, pack and ship 90 percent of the fresh vegetables and nearly 70 percent of the fresh fruit and nuts grown in Arizona and California.

Cannella previously introduced legislation designed to protect 25 environmentally responsible, job-creating construction projects from frivolous, abusive applications of the California Environmental Quality Act every year.