SACRAMENTO, Calif (Reuters) - In an odd twist, California business groups applauded Governor Jerry Brown for signing legislation on Thursday to create a new layer of government regulation they say will lessen the burdens imposed by future regulations.
The measure orders the Democratic governor's Department of Finance to establish a uniform method of measuring the economic consequences of regulations put forward by other state agencies.
Starting in 2013, those agencies will be required to consider the job gains or losses, advantages or disadvantages to various businesses, and investment increases or declines projected as a result of any proposed regulation with an economic impact of more than $50 million.
The Department of Finance will create guidelines for other agencies to follow in conducting those impact assessments.
"This new law creates a standard yardstick everyone is measured against -- both the regulatory agency and those who offer alternatives that they say are more cost-effective," California Chamber of Commerce President Allan Zaremberg told Reuters.
"It ensures the state follows an accepted practice of doing an economic impact analysis, takes any stakeholder recommendations for what is the most cost-effective approach and -- if the agency doesn't adopt the most cost-effective approach -- it must explain why."
The measure orders the Democratic governor's Department of Finance to establish a uniform method of measuring the economic consequences of regulations put forward by other state agencies.
Starting in 2013, those agencies will be required to consider the job gains or losses, advantages or disadvantages to various businesses, and investment increases or declines projected as a result of any proposed regulation with an economic impact of more than $50 million.
The Department of Finance will create guidelines for other agencies to follow in conducting those impact assessments.
"This new law creates a standard yardstick everyone is measured against -- both the regulatory agency and those who offer alternatives that they say are more cost-effective," California Chamber of Commerce President Allan Zaremberg told Reuters.
"It ensures the state follows an accepted practice of doing an economic impact analysis, takes any stakeholder recommendations for what is the most cost-effective approach and -- if the agency doesn't adopt the most cost-effective approach -- it must explain why."
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