A regulatory reform bill supported by the California Chamber of Commerce was signed recently by Governor Edmund G. Brown Jr.
SB 401 (Hueso; D-Logan Heights) addresses the economic impact of building standards.
It provides transparency for the commercial construction industry by requiring economic impact analysis of new commercial building standards, building upon current law which already provides this information for residential building standards.
Since 1982 state agencies have been required to prepare an economic impact analysis that clearly identifies any adverse economic impacts on business, small business and housing.
That analysis, however, has most often been accompanied by boilerplate language that states: “The agency has determined that there will be no significant economic impact on business/housing.”
As is widely recognized, such regulations more often than not do have a cost impact, and this generic sentence gives no real indication to the public as to what the estimated cost (in dollars) and benefits are with the proposed building standard.
SB 401 is narrowly drafted, and merely requires a state agency proposing a building standard to cite the estimated cost and benefits of compliance. For decades state agencies have been developing this information to support a determination of economic impact. SB 401 simply requires disclosure of …read more
Source: Fullerton Chamber of Commerce