Regulatory economic analysis bill passes Assembly

By CMTA Staff

Capitol Update, June 4, 2010 Share this on FacebookTweet thisEmail this to a friend

AB 2529 (Felipe Fuentes, D-Los Angeles), providing for peer review of agency economic analysis, moved off of the Assembly floor.

The existing Administrative Procedures Act requires that agencies provide economic impact estimates when developing regulations, however there is no system in place to ensure that these economic impact estimates are thorough and rigorous. At the same time, it is unreasonable to expect a mission-driven organization to provide an independent, unbiased analysis of a regulation proposed by the same agency.

AB 2529 recommends a process that would create additional rigor in the process by requiring that an agency's economic impacts analyses of regulations with significant adverse economic impacts on California business enterprises be reviewed by an independent third party. This will move us closer to the goal of providing more rigor and less bias in the regulatory process.

The bill’s passage was uncertain until the final hours of session Thursday, June 3, due to opposition from environmental groups. A bipartisan mix of republicans and democrats voted for the bill to keep the idea alive for consideration by the Senate.

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