October 10, 2011

Governor Signs Economic Impact Analysis Requirement

The Governor signed SB 617, a statewide requirement for an economic impact analysis on major regulations to be done at the beginning of the regulatory process.

Specifically, SB 617 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.

We Thank Our Partners:

Southwest Riverside Country Association of Realtors

Metropolitan Water District of Southern California

Near-Cal Corporation

Economic Development Corp of Southwest California

Elsinore Valley Municipal

Water District

The Gas Company

Abbott Vascular

The Murrieta Temecula Group

Temecula Valley Chamber of Commerce

Murrieta Chamber of Commerce

Lake Elsinore Valley Chamber of Commerce

Wildomar Chamber of Commerce

Southern California Edison

Loma Linda University Medical Center of Murrieta

Ace Hardware of Wildomar