Business groups have complained for years that the California regulatory system is cumbersome, inefficient, and dampening the economic recovery. Last year, several bills were introduced meant to relieve some of the pressure, only to die in early policy committees. However, with California falling deeper, harder, and longer into recession than some other parts of the country, Legislators and non-business policy groups are taking a second look at what can be done.
To that end, this week the E3 (Environment, Education, and Energy) Roundtable of the Republican Caucus, held a hearing and invited the Little Hoover Commission, and business representatives to discuss the issues and provide a variety of suggestions on how the existing regulatory development process could be improved. One point that seemed to resonate with lawmakers was the fact that many state agencies have an inherent conflict of interest when producing an economic impact analysis of their own regulations. The homebuilders stressed the need to have access to a “neutral” third-party within state government who could, on an as-needed basis, critique the regulatory impact analysis produced by a state agency.
We are expecting more than a dozen bills on regulatory reform this year, and will do everything we can do identify those ideas that make the most sense, and help push them to the Governor’s desk.
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