by Gary Toebben

An Opportunity for Regulatory Reform

Last week, President Obama and State Senate President Pro Tem Darrell Steinberg both called for removing government regulations that stifle job creation. Congressmember Darrell Issa called for similar action two weeks ago. We applaud this bi-partisan push for regulatory reform, which will be part of an economic strategy to reduce unemployment in California and the United States. Meaningful change will require specific recommendations from businesses and political courage from lawmakers to make it happen. That is our request today in The Business Perspective.

As the president noted, businesses deal with a maze of old, new and conflicting regulations that drive up costs and incentivize legal opportunism. Many regulations are frustratingly outmoded, duplicative of other agency rules or just plain ineffective. Current government regulations leave U.S. and California businesses vulnerable to global competitors who can bring products and services to the market faster and cheaper.

California's regulatory creep is why we’re ranked last of all 50 states in business climate. For example, confusing meal/rest period rules and other arcane and rigid wage and hour regulations presume employers and employees can't be entrusted to create a flexible work schedule that would benefit employees and their families and make the workplace more productive. The California Environmental Quality Act (CEQA), originally enacted to protect the environment, is now a regulatory barrier to sustainable development.

The challenge for state and federal lawmakers is that the regulations most in need of reform are "third rails” for some labor groups and environmentalists. For labor, many of the rigid wage and hour regulations become moot if an employer agrees to a collective bargaining agreement. And CEQA reforms that would continue to protect the environment, but reduce the ability for competitors and persons without standing to file a lawsuit to stop the project, have been rejected by some environmental groups.

This call by President Obama and Senate President Pro Tem Steinberg is a golden opportunity to reform our laws in ways that are good for the environment, good for employees and good for business. Workplace rules can be modernized for the 21st century and continue to protect health, safety and wages. CEQA can be improved for smarter environmental protection, while weeding out abuse and counterproductive delays. Many other regulations are also ripe for review.

Send us your thoughts and suggestions for regulatory reform. You can comment on this blog or email us with your suggestions.  The L.A. Area Chamber is already working with lawmakers on many of these reforms. We look forward to using your suggestions and examples to continue the frank discussion and sustained advocacy. This is an opportunity that we do not want to miss.

And that's The Business Perspective.