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PRESS RELEASE

For Immediate Release
November 19, 2003
CMTA Contacts: Gino DiCaro 916-730-3443
William Hodges 916-498-3324

Business Leaders Commend Governor Schwarzenegger For Regulatory Review Order

Sacramento, CA -- California business leaders today commended Governor Schwarzenegger for ordering a freeze of pending state regulations and a comprehensive review of both pending and past regulatory actions. The business groups pledged to work with the new administration to identify those regulations that do not meet the challenge of improving California while also stimulating our state’s jobs climate.

“This Executive Order by Governor Schwarzenegger is a long-overdue, common sense action that will give policymakers the opportunity to determine if pending and past regulatory proposals are lawful, balanced and truly likely to result in benefit to California,” said Jack Stewart, president of the California Manufacturers & Technology Association. “For too long, regulators have ignored the impact their rules have on California’s economy and jobs. This Executive Order restores some balance to the regulatory process.”

California’s Administrative Procedure Act requires regulations to be understandable, be the least burdensome and effective alternative, be consistent with underlying legislative authority, and minimize the economic impact to the state and regulated entities.

“Even though the law requires regulatory agencies to carefully consider economic impacts, that has not always been the case,” said Allan Zaremberg, president of the California Chamber of Commerce. “The review that Governor Schwarzenegger has ordered will re-focus attention back on ensuring that there is balance necessary to improve both the economy and the environment. It is critical that California policymakers carefully consider the economic consequences of their actions and look at their impact on creating jobs in California.”

Business leaders pledged to help identify current and pending regulations that should be modified or repealed because they do not meet the goal of providing balance between the environment and the economy. “The Governor’s Executive Order is a challenge not only to state agencies, but to the business community and all other stakeholders to work together to review pending and current regulations,” said Bill Hauck, president of the California Business Roundtable. “The business community accepts this challenge to identify regulations that do not provide benefits commensurate with their cost. We encourage all stakeholders to participate in the review process. Only then will Governor Schwarzenegger have the input he needs to help chart a course for state government that, as he said in his Inaugural address, is a ‘partner in people’s lives, not a roadblock to their dreams.’”

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