On Wednesday, the Ohio Chamber testified in support of Senate Bill 293, a bill that would require a thirty percent reduction in regulatory restrictions for all agencies in the state of Ohio by the end of 2022.
As employers, you know the burden that regulations cost you, both financially and from a time perspective. The cost of compliance and having the resources to maintain compliance are a massive burden for employers and serve as a barrier to entry for potential entrepreneurs.
The Mercatus Center out of George Mason University conducted a study of the regulatory climate in the state of Ohio. They concluded that there are over 246,000 regulatory restrictions in our Administrative Code, which was far more than all of our surrounding states and put us in line with states such as Illinois and New York.
We consistently hear from our members that state regulations, coupled with federal regulations, are a top concern. The Ohio Chamber of Commerce Research Foundation released its “Prosperity Pulse” survey from the 1st Quarter of 2018 and not surprisingly, state regulations ranked towards the top of their concerns. SB 293 aims for an overall reduction of regulations by state agencies. If an agency is unable to meet the reduction schedule put forth in the bill, they will not be allowed to introduce any new regulatory restriction without first eliminating two or more existing restrictions.
SB 293 is the next step in regulatory reform in the state of Ohio. While the Joint Committee on Agency Rule Review and the Common Sense Initiative are currently in place and do a great job on the implementation of rules, overall regulation reduction is beneficial in creating the best business environment in our state. While thirty percent reduction of regulations may be difficult for some agencies, this approach is needed in our state and it will increase economic competitiveness and drive down barriers of entry for businesses.