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Date ArticleType

11/1/2009 General

Assemblyman Bill Berryhill

Regulating Ourselves into Bankruptcy

Assemblyman Bill Berryhill

A study quietly released last week by the governor highlighted the absolute abuse financially speaking this state is taking from over-regulation. The study – which resulted from the passage of Assembly Bill 2330 written by Democrat Juan Arambula in 2006 – was completed and returned to the Legislature showing once and for all the cost of state regulations on small business in California. It was written by two Sacramento State professors who worked independently of the state.

This study wipes out any doubt that this over-regulation is sending business out of state. We now have the smoking gun.

                Nearly a third of the state’s entire $1.6 trillion economy is consumed by regulation either directly or indirectly, it said. Direct costs of the regulation were $176 billion, causing job losses of nearly 4 million. If averaged over each small business in California with 20 or fewer employees, the impact is over $38,000 per household or over $13,000 per resident.

California businesses are a prisoner of this state’s own overregulation, but there are logical and practical solutions.

We can place all revenues from fees and fines that mini-governments like the California Air Resources Board and the Department of Water Resources levy into the state general fund. This makes these boards and commissions accountable to the legislature.

Each regulation could have a sun-set or time frame that it is enacted before it expires. This would allow the legislature to review the costs and impacts of these regulations and decide whether to renew them or let them die.

Legislation is needed to require reports on each new regulation much like the California Environmental Quality Act requires for each building project. We need to know the impacts these regulations and bills have before they are enacted.

A comprehensive review of state regulations now needs to take place to decide what needs to stay and what needs to go. Small businesses in California need to have a California address, not an out of state one.

Finally, any new regulations need to be based on sound science not Hollywood science.

The full study is available online at http://sba.ca.gov/Cost%20of%20Regulation%20Study%20-%20Final.pdf

ARTICLE
Date	ArticleType
11/1/2009	General
Assemblyman Bill Berryhill

Regulating Ourselves into Bankruptcy Assemblyman Bill Berryhill A study quietly released last week by the governor highlighted the absolute abuse financially speaking this state is taking from over-regulation. The study – which resulted from the passage of Assembly Bill 2330 written by Democrat Juan Arambula in 2006 – was completed and returned to the Legislature showing once and for all the cost of state regulations on small business in California. It was written by two Sacramento State professors who worked independently of the state. This study wipes out any doubt that this over-regulation is sending business out of state. We now have the smoking gun. Nearly a third of the state’s entire $1.6 trillion economy is consumed by regulation either directly or indirectly, it said. Direct costs of the regulation were $176 billion, causing job losses of nearly 4 million. If averaged over each small business in California with 20 or fewer employees, the impact is over $38,000 per household or over $13,000 per resident. California businesses are a prisoner of this state’s own overregulation, but there are logical and practical solutions. We can place all revenues from fees and fines that mini-governments like the California Air Resources Board and the Department of Water Resources levy into the state general fund. This makes these boards and commissions accountable to the legislature. Each regulation could have a sun-set or time frame that it is enacted before it expires. This would allow the legislature to review the costs and impacts of these regulations and decide whether to renew them or let them die. Legislation is needed to require reports on each new regulation much like the California Environmental Quality Act requires for each building project. We need to know the impacts these regulations and bills have before they are enacted. A comprehensive review of state regulations now needs to take place to decide what needs to stay and what needs to go. Small businesses in California need to have a California address, not an out of state one. Finally, any new regulations need to be based on sound science not Hollywood science. The full study is available online at http://sba.ca.gov/Cost%20of%20Regulation%20Study%20-%20Final.pdf