Gino DiCaro

CMTA President weighs in on regulatory costs and calls for suspension of AB 32

By Gino DiCaro, VP, Communications

Capitol Update, Sept. 26, 2009 Share this on FacebookTweet thisEmail this to a friend




In 2006 the Governor signed legislation directing the Small Business Advocate's Office to commission a study on California's regulatory costs on small business with a completion deadline of October 2007.  Due to normal bureaucratic fumbling, the report wasn't delivered until December, 2008.  Last Tuesday evening it was quietly posted on the Small Business Advocate's website.

The report claims that the annual regulatory cost to small business is $492 billion, an amount nearly equal to one third of California's gross domestic product (GDP).  The number is stunning and warrants more research to fully understand the impacts of California's regulatory environment.  A group of Republican Assemblymen (Dan Logue, Roger Niello, Tom Berryhill, Bill Berryhill and Ted Gaines) called a press conference on Thursday to discuss the report with the Capitol media.  CMTA President, Jack Stewart, along with several other business associations, were invited to participate.

Stewart discussed the Milken Institute's recent findings that excessive regulation was one of the key factors for the loss of manufacturing jobs.  Stewart also called for the Governor to suspend further work on AB 32 regulations as well as suspend work on all regulations currently in development until the state finds a credible way to evaluate the economic impact of all new regulations.  Going furhter, Stewart suggested that agencies responsible for writing regulations should not be allowed to do the economic analysis for their own regulations.  A state with a 12.2 percent unemployment rate and state finances near bankruptcy can ill afford one more regulation that would slow the economic recovery and reduce state revenues by one more dollar.
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