Arizona Chamber of Commerce and Industry

Sweeping regulatory reform package cuts red tape, makes Arizona more competitive

Ask any business what it needs from government in order to be successful, and you’re more likely to get a list of what it doesn’t need.  Red tape.  Unpredictability.  Onerous regulations.

Keeping regulatory burdens on business light is at the heart of the Arizona Chamber of Commerce and Industry’s mission, and we’re pleased that Gov. Brewer has made easing unpredictability in the regulatory environment a priority of her administration.

When she assumed office a year ago, one of the governor’s first acts was to issue a moratorium on new rulemaking. The governor wisely recognized that in this challenging economy the last things employers needed were new rules that could negatively affect their bottom line.  Last summer, with economic recovery in Arizona still elusive, the budget included an extension of the moratorium thanks to the work of Rep. Andy Tobin and the governor.

Having an executive who is committed to fostering a commonsense regulatory environment is key to retaining jobs and attracting new ones to Arizona. 

Now Rep. Tobin has taken up the cause in the Legislature by introducing a sweeping regulatory reform bill, HB 2260.

Rep. Tobin’s legislation seeks to install long term fixes on Arizona’s regulatory environment and make the state more attractive to employers tired of grappling with endless reams of red tape. This legislation would allow regulated industries to work under modern, easy to understand rules where the benefits and shortfalls of certain regulations are clearly defined.

To that end, Rep. Tobin’s bill calls on a third party to assess the economic impact of new regulations, a shift from the current practice of having the affected state agency determine the impact of a rule, which has lead to the pernicious practice of overestimating a rule’s benefits while underestimating its costs.

Improving Arizona’s regulatory environment helps strengthen the state’s competitiveness.  The regulatory reform package calls for a review of all proposed rules to assess whether they would negatively impact Arizona’s competiveness compared to other Western states.  The bill also puts forth a provision that prohibits state agencies from adopting rules that are more stringent than federal law without express statutory authority. It further requires that the probable benefits of the new rule be shown to outweigh the probable costs according to clear and convincing evidence.

A key component of the regulatory reform bill is its call for the creation of a general permit that agencies would issue in lieu of individual, specific permits. This reform will save businesses significant time and money, allowing them to focus more on their core operations.  

Gov. Brewer and Rep. Tobin are on the right track in seeing to it that Arizona’s regulatory environment is one that opens doors to business and knocks down barriers.  A business-friendly regulatory framework is critical to strengthening Arizona’s economy.  When employers can spend their financial resources paying and hiring employees rather than paying lawyers to navigate red tape, Arizona will truly be open for business.

Glenn Hamer is president & CEO of the Arizona Chamber of Commerce & Industry.