If it passes, SB 951 will require all state agencies to review their current regulations and reduce the number of existing regulations by one-third. In addition, the bill will have an impact on future regulations in two ways. First, it requires that new regulation must be accompanied by a bill to repeal an existing regulation. This will ensure that the number of state regulations does not increase. Next, SB 951 requires state bureaucracies to demonstrate that the a new regulation will not increase the burden to businesses relative to alternative approaches offered by the public. This will force agencies to strongly consider the costs imposed by their regulations. If an agency takes an unnecessarily costly approach to regulating, it runs the risk of having its rule overturned by the California Office of Administrative Law or by the courts. The burden standard that the bill would create was recommended to Senator Gaines by the Small Business Economic Impact Alliance.
“California small businesses have a great friend in Senator Ted Gaines," commented Bill Gausewitz of Michelman & Robinson, LLP and Legislative Relations Chair for SBEIA. "As a small business owner himself, he has a real understanding of the burden caused by over-regulation.”
It is the view of SBEIA that this bill is a positive step toward improving the economic environment for small businesses in California. “Small business is the backbone of our economy,” said co-founder of SBEIA, Karla Lyngvar. “We appreciate Mr. Gaines’ efforts to make it easier to do business in California so we can create more jobs and get the economy growing again.”
The Small Business Economic Impact Alliance is dedicated to connecting like-minded people, contributing free tools and information to address the challenges of small business, and collaborating with leaders and experts to benefit not only its members, but California's economy as a whole. The goals of the organization are to help small businesses thrive and grow, gather and share information, and promote small business legislation in California, all for the low membership fee of $10 per year. For more information about the Small Business Economic Impact Alliance, visit www.sbeia.com.
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