(The "2 million jobs" campaign coalition made up of a wide array of organizations across the state and sponsored by the California Manufacturers and Technology Association recently issued this letter to members of the California Legislature.)
You face a tremendous challenge to balance the state budget and spur job growth in California to lower our record unemployment rate.
We encourage you to meet these goals by creating jobs and growing state revenues through sound regulatory policies that will attract new private investment, promote new hiring and protect existing jobs in small businesses, manufacturing and innovation firms.
Our recommendations here do not include substantive reforms of specific regulations but rather identify improvements in the process of creation, analysis and enforcement of regulations.
Without sacrificing important societal protections, we strongly recommend that you make the regulatory system in California more cost-effective and predictable through measures that ensure regulatory agencies, departments and boards understand the impacts of proposed regulations and are held accountable for effective outcomes.
To that end, we urge you to support legislation that embodies the following principles and that promotes these important purposes:
-- Get control of the bureaucracy.
Past legislatures have ceded to unelected officials sweeping powers to impose new regulations, collect administrative fees and assess fines and penalties – all with no requirements for legislative oversight or approval. This creates the potential for an uncertain, punitive and increasingly unaccountable regulatory environment.
Requiring legislative review and approval for major new regulations ensures that the intent of legislation you approve is carried out in the most effective manner.
-- Measure the economic impact of new regulations.
Many regulations are imposed without a true understanding of their impact on jobs and economic growth. Requiring economic impact reports by independent experts or an entity other than the regulatory agency will reveal the true cost in jobs and lost revenue, empowering you to make reasonable adjustments as necessary.
-- Weed out ineffective regulations.
Businesses must continually update processes to improve products and services to remain competitive. In the same manner, the Legislature should review regulations already on the books and require periodic reviews for new regulations, removing those that are duplicative, outdated or failing to deliver on their promises.
The time to start is now. Your commitment to improving the regulatory climate will help to restore California’s reputation as an attractive state for investment and jobs.
Dozens of bills have already been introduced on these topics, and we urge your support as they move through the process.
Thank you in advance for your support of this important effort.
Please contact Cynthia Leon with any questions or comments at 916-498-3322.