Better Regulation: Improving California's Rulemaking Process

Report #209, October 2011
Better Regulation: Improving California's Rulemaking Process

Full Report

Executive Summary

Press Release

FOR IMMEDIATE RELEASE
October 25, 2011

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Commission Calls for Improved Regulatory Process and Stronger Oversight

The Little Hoover Commission on Tuesday urged the Governor and the Legislature to make the state’s process for developing regulations more rigorous and consistent across agencies and to strengthen oversight to ensure that agencies have assessed the economic impact of proposed regulations.

The Commission, responding to a request from legislative members, looked at the use of economic analysis in the rulemaking process and gaps in the Administrative Procedure Act’s requirement to assess economic impacts.

The Commission found that California lacked statewide standards for economic analysis, and that the practices of agencies varied widely, which has helped fuel a perception that the state’s regulatory practices are inconsistent and unfair. The Commission’s recommendations, which are consistent with the direction set by SB 617 (Calderon and Pavley), now signed into law, are aimed at increasing transparency, efficiency and accountability with the goals of finding the least burdensome alternative to solving a regulatory problem and bolstering confidence in the regulatory process.

“For a state like California, with its dynamic economy, huge population and environmental resources, an effective regulatory process that all parties have confidence in is essential,” Commission Chairman Daniel Hancock said. “We are not looking for fewer regulations or more regulations. We are looking for better regulations.”

While economic analysis should not be the determining factor for approving a regulation, the process of developing the analysis can be improved by engaging stakeholders earlier and providing more information for decision-makers.

Through its open study process, the Commission heard from economists, regulators, business owners and government officials that have implemented regulatory review policies. The Commission learned not only what other states require, but how the federal government has used a regulatory review process located in the Office of Management and Budget through five different administrations under presidents of both parties. In an advisory committee meeting, the Commission heard concerns from environmental and labor representatives about the use of cost-benefit analysis and difficulties in assessing cost data.

In its report, Better Regulation: Improving California’s Rulemaking Process, the Commission recommends that California develop a set of standardized guidelines for economic analysis appropriate for different scopes of regulations. For significant regulations, those that impose an annual cost of greater than $25 million, the Commission recommends that the state require agencies do a rigorous and high-quality economic analysis that at a minimum, requires agencies to assess the cost-effectiveness of different alternatives before regulations are released for public comment.

The Commission recommends that agencies be required to engage with regulated stakeholders and others affected by a regulation before the public comment period to develop alternatives and the economic analysis. The Commission also recommends a small Office of Economic and Regulatory Analysis be established in the Department of Finance to take on the tasks of creating the guidelines with the assistance of an expert advisory board. This office also would work with agencies that are preparing significant regulations as they develop their economic analyses.

The Commission asks the Governor and Legislature to create a look-back process, organized through the Office of Economic and Regulatory Analysis, to assess the performance of current regulations to determine if they should be updated or eliminated.

The Little Hoover Commission is a bipartisan and independent state agency charged with recommending ways to increase the efficiency and effectiveness of state programs. The Commission’s recommendations are sent to the Governor and the Legislature. To obtain a copy of the report, Better Regulation: Improving California’s Rulemaking Process, visit the Commission’s Web site: www.lhc.ca.gov.

Fact Sheet

Study Description

For this study, the Commission’s focused on the state’s regulatory processes, with the goal of improving clarity and accountability, in the way the state develops regulations and assesses their impacts and outcomes. The study intended to take a broad look at the state’s regulatory process, including the rule-making phase at the agency level as well as the assessment of proposed regulations by the Department of Finance and the Office of Administrative Law.

In the course of its work, the Commission, through its open study process, assessed the role of economic analysis, including the use and limits of cost-benefit analysis and cost-effectiveness tests. The Commission also examined regulatory reform efforts in other governments – at the city, state and federal level – to learn about ways that California’s regulatory development and review process can be made more efficient, more effective and more transparent.

The Commission received a request from Assemblymember Felipe Fuentes and Senator Robert Dutton to review California's regulatory process and identify improvements in certain areas. A copy of the letter can be viewed by clicking here. 

Agenda

Overview

In this report, the Commission calls for improved regulatory process and stronger oversight. The Commission urges the Governor and Legislature to make the state’s process for developing regulations more rigorous and consistent across agencies and to strengthen oversight to ensure that agencies have assessed the economic impact of proposed regulations.

During its review, the Commission found that California lacked statewide standards for economic analysis, and that the practices of agencies varied widely, which has helped fuel a perception that the state’s regulatory practices are inconsistent and unfair.

The Commission's recommendations are aimed at increasing transparency, efficiency and accountability with the goals of finding the least burdensome alternative to solving a regulatory problem and bolstering confidence in the regulatory process.

This review was requested by Assemblymember Felipe Fuentes and Senator Robert Dutton in a July 12, 2010, request letter to the Commission. 

Print Agenda
  • August 26
    2011
    Regulatory Reform
    2:00 p.m., Legislative Counsel Conference Room, Lower Level, 925 L
    Advisory Committee Meeting
    Agenda

    AGENDA

    Advisory Committee Meeting on Regulatory Reform
    Friday, August 26, 2011, at 2:00 p.m.
    Legislative Counsel Conference Room, Lower Level
    925 L Street, Sacramento, CA


    Meeting Goal: Gather input from non-regulated stakeholders – environmental and labor representatives – to learn what perspectives and concerns they have regarding potential changes to the regulation development process.

    2:00 – 2:10 p.m.

    Welcome and Introductions
    Loren Kaye, Subcommittee Chair, Little Hoover Commission

    2:10 – 2:15 p.m.

    Commission Study Process and Advisory Committee Role
    Stuart Drown, Executive Director, Little Hoover Commission

    2:15 – 4:00 p.m.

    Discussion:

    • Type and Scope of Economic Analysis of Proposed Regulations
       
    • Timing of Analysis and Review by the Public and Outside Experts
       
    • Government Oversight of the Rule Development Process
       

    Comments Submitted by Members of the Public

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    August 12, 2011

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Friday, August 26, 2011, the Regulatory Reform Subcommittee of the Little Hoover Commission will hold an advisory committee meeting to hear from non-regulated stakeholders to gain insights into their concerns and perspectives on the use of economic analysis and greater oversight of California’s rule-making process. The Commission has been studying California’s regulatory process with the intention of making recommendations, if warranted, to improve transparency, accountability and efficiency in the rulemaking process. The meeting will begin at 2:00 p.m. in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento, California.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown, executive director, at (916) 445-2125 or littlehoover@lhc.ca.gov by Friday, August 19, 2011.

  • January 27
    2011
    Regulatory Reform
    9:00 a.m., State Capitol, Room 437, Sacramento, CA
    Public Hearing
    Agenda

    AGENDA

    Public Hearing on Regulatory Reform
    Thursday, January 27, 2011, at 9:00 a.m. 
    State Capitol, Room 437 
    Sacramento, CA


    Opening Remarks

    Value and Types of Economic Analysis 

    1. James Sanchirico, Ph.D., Professor, University of California, Davis (Written Testimony)
       

    The Regulation Development Process in California 

    1. Debra Cornez, Acting Director and Assistant Chief Counsel, Office of Administrative Law (Written Testimony)


    Agency Examples of Economic Analysis of Proposed Regulations

    1. Lynn Terry, Deputy Executive Officer, California Air Resources Board (Written Testimony)
       
    2. William Pennington, Manager, High Performance Buildings and Standards (Written Testimony)
      ​​​​​​​

    The Risks and Costs to Businesses of Regulatory Uncertainty

    1. David Chidester, President and Owner, Central Cal Transportation (Written Testimony)
      ​​​​​​​

    Comments Submitted by Members of the Public

    • Robert Stavins, Albert Pratt Professor of Business and Government, John F. Kennedy School of Government, Harvard University; and Todd Schatzki, Vice President, Analysis Group (Written Comments)
    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    January 13, 2011

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, January 27, 2011, the Little Hoover Commission will conduct a public hearing on California regulatory reform. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    In this study, the Commission is examining California’s regulatory review process. The goal of this study is to develop recommendations to improve clarity and accountability in how the state develops regulations, assesses their impacts prior to implementation and measures their effectiveness once in place. The Commission expects to learn from the experience of regulated industries, the view from state agencies and departments charged with developing or reviewing regulations and strategies employed by other governments at the city, state and federal level.

    The Commission will hear from James Sanchirico, an environmental economics professor at University of California, Davis, and Debra Cornez, Acting Director and Assistant Chief Counsel at the Office of Administrative Law. The Commission also will hear from Lynn Terry, Deputy Executive Officer for the California Air Resources Board, and William Pennington, Manager of the High Performance Buildings and Standards Development Office at the California Energy Commission. Finally, the Commission will hear from David Chidester, President and Owner of Central Cal Transportation.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in Room 437 of the State Capitol in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, January 19, 2011.

  • October 28
    2010
    Regulatory Reform
    9:00 a.m., State Capitol, Room 437, Sacramento, CA
    Public Hearing
    Agenda

    AGENDA

    Public Hearing on Regulatory Reform 
    Thursday, October 28, 2010, at 9:00 a.m. 
    State Capitol, Room 437
    Sacramento, CA


    Opening Remarks

    A broad look at California’s regulatory system challenges

    1. Adrian Moore, Ph.D., Vice President of Research, Reason Foundation (Written Testimony)
       

    Regulated industries’ perspective on problems with the process

    1. Alfred Montna, Owner, Montna Farms, and President, California State Board of Food and Agriculture (Written Testimony)
       
    2. Robert Raymer, P.E., Senior Engineer/Technical Director, California Building Industry Association (Written Testimony)


    Making it work: Examples of governments that have tackled the challenges

    1. Ted Egan, Ph.D., Chief Economist, San Francisco Office of Economic Analysis (Written Testimony)
       
    2. Allen Malanowski, Chief Economist, Arizona Governor’s Regulatory Review Council (Written Testimony)
      ​​​​​​​

    Public Comments

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    October 14, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, October 28, 2010, the Little Hoover Commission will conduct a public hearing on California regulatory reform. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    Some have criticized the state’s regulatory processes, with the goal of improving clarity and accountability, in the way the state develops regulations and assesses their impacts and outcomes. This study will look at economic analysis, transparency and sunset reviews in the regulatory system. The Commission expects to learn from knowledgeable stakeholders and from the strategies of other governments – at the city, state and federal level.

    The Commission will hear from Adrian Moore, vice president of research for Reason Foundation. The Commission also will hear from Al Montna, owner of Montna Farms and president of the California State Board of Food and Agriculture, and Robert Raymer, senior engineer and technical director for the California Building Industry Association. Finally, the Commission will hear from Ted Egan, chief economist of the San Francisco Office of Economic Analysis, and Allen Malanowski, chief economist for the Governor’s Regulatory Review Council in Arizona.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, October 20, 2010.

August 26
2011
Regulatory Reform
2:00 p.m., Legislative Counsel Conference Room, Lower Level, 925 L Street, Sacramento, CA
Advisory Committee Meeting
Agenda

AGENDA

Advisory Committee Meeting on Regulatory Reform
Friday, August 26, 2011, at 2:00 p.m.
Legislative Counsel Conference Room, Lower Level
925 L Street, Sacramento, CA


Meeting Goal: Gather input from non-regulated stakeholders – environmental and labor representatives – to learn what perspectives and concerns they have regarding potential changes to the regulation development process.

2:00 – 2:10 p.m.

Welcome and Introductions
Loren Kaye, Subcommittee Chair, Little Hoover Commission

2:10 – 2:15 p.m.

Commission Study Process and Advisory Committee Role
Stuart Drown, Executive Director, Little Hoover Commission

2:15 – 4:00 p.m.

Discussion:

  • Type and Scope of Economic Analysis of Proposed Regulations
     
  • Timing of Analysis and Review by the Public and Outside Experts
     
  • Government Oversight of the Rule Development Process
     

Comments Submitted by Members of the Public

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
August 12, 2011

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Friday, August 26, 2011, the Regulatory Reform Subcommittee of the Little Hoover Commission will hold an advisory committee meeting to hear from non-regulated stakeholders to gain insights into their concerns and perspectives on the use of economic analysis and greater oversight of California’s rule-making process. The Commission has been studying California’s regulatory process with the intention of making recommendations, if warranted, to improve transparency, accountability and efficiency in the rulemaking process. The meeting will begin at 2:00 p.m. in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento, California.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown, executive director, at (916) 445-2125 or littlehoover@lhc.ca.gov by Friday, August 19, 2011.

January 27
2011
Regulatory Reform
9:00 a.m., State Capitol, Room 437, Sacramento, CA
Public Hearing
Agenda

AGENDA

Public Hearing on Regulatory Reform
Thursday, January 27, 2011, at 9:00 a.m. 
State Capitol, Room 437 
Sacramento, CA


Opening Remarks

Value and Types of Economic Analysis 

  1. James Sanchirico, Ph.D., Professor, University of California, Davis (Written Testimony)
     

The Regulation Development Process in California 

  1. Debra Cornez, Acting Director and Assistant Chief Counsel, Office of Administrative Law (Written Testimony)


Agency Examples of Economic Analysis of Proposed Regulations

  1. Lynn Terry, Deputy Executive Officer, California Air Resources Board (Written Testimony)
     
  2. William Pennington, Manager, High Performance Buildings and Standards (Written Testimony)
    ​​​​​​​

The Risks and Costs to Businesses of Regulatory Uncertainty

  1. David Chidester, President and Owner, Central Cal Transportation (Written Testimony)
    ​​​​​​​

Comments Submitted by Members of the Public

  • Robert Stavins, Albert Pratt Professor of Business and Government, John F. Kennedy School of Government, Harvard University; and Todd Schatzki, Vice President, Analysis Group (Written Comments)
Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
January 13, 2011

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, January 27, 2011, the Little Hoover Commission will conduct a public hearing on California regulatory reform. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

In this study, the Commission is examining California’s regulatory review process. The goal of this study is to develop recommendations to improve clarity and accountability in how the state develops regulations, assesses their impacts prior to implementation and measures their effectiveness once in place. The Commission expects to learn from the experience of regulated industries, the view from state agencies and departments charged with developing or reviewing regulations and strategies employed by other governments at the city, state and federal level.

The Commission will hear from James Sanchirico, an environmental economics professor at University of California, Davis, and Debra Cornez, Acting Director and Assistant Chief Counsel at the Office of Administrative Law. The Commission also will hear from Lynn Terry, Deputy Executive Officer for the California Air Resources Board, and William Pennington, Manager of the High Performance Buildings and Standards Development Office at the California Energy Commission. Finally, the Commission will hear from David Chidester, President and Owner of Central Cal Transportation.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in Room 437 of the State Capitol in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, January 19, 2011.

October 28
2010
Regulatory Reform
9:00 a.m., State Capitol, Room 437, Sacramento, CA
Public Hearing
Agenda

AGENDA

Public Hearing on Regulatory Reform 
Thursday, October 28, 2010, at 9:00 a.m. 
State Capitol, Room 437
Sacramento, CA


Opening Remarks

A broad look at California’s regulatory system challenges

  1. Adrian Moore, Ph.D., Vice President of Research, Reason Foundation (Written Testimony)
     

Regulated industries’ perspective on problems with the process

  1. Alfred Montna, Owner, Montna Farms, and President, California State Board of Food and Agriculture (Written Testimony)
     
  2. Robert Raymer, P.E., Senior Engineer/Technical Director, California Building Industry Association (Written Testimony)


Making it work: Examples of governments that have tackled the challenges

  1. Ted Egan, Ph.D., Chief Economist, San Francisco Office of Economic Analysis (Written Testimony)
     
  2. Allen Malanowski, Chief Economist, Arizona Governor’s Regulatory Review Council (Written Testimony)
    ​​​​​​​

Public Comments

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
October 14, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, October 28, 2010, the Little Hoover Commission will conduct a public hearing on California regulatory reform. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

Some have criticized the state’s regulatory processes, with the goal of improving clarity and accountability, in the way the state develops regulations and assesses their impacts and outcomes. This study will look at economic analysis, transparency and sunset reviews in the regulatory system. The Commission expects to learn from knowledgeable stakeholders and from the strategies of other governments – at the city, state and federal level.

The Commission will hear from Adrian Moore, vice president of research for Reason Foundation. The Commission also will hear from Al Montna, owner of Montna Farms and president of the California State Board of Food and Agriculture, and Robert Raymer, senior engineer and technical director for the California Building Industry Association. Finally, the Commission will hear from Ted Egan, chief economist of the San Francisco Office of Economic Analysis, and Allen Malanowski, chief economist for the Governor’s Regulatory Review Council in Arizona.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, October 20, 2010.

Print Agenda
  • August 26
    2011
    Regulatory Reform
    2:00 p.m., Legislative Counsel Conference Room, Lower Level, 925 L
    Advisory Committee Meeting
    Agenda

    AGENDA

    Advisory Committee Meeting on Regulatory Reform
    Friday, August 26, 2011, at 2:00 p.m.
    Legislative Counsel Conference Room, Lower Level
    925 L Street, Sacramento, CA


    Meeting Goal: Gather input from non-regulated stakeholders – environmental and labor representatives – to learn what perspectives and concerns they have regarding potential changes to the regulation development process.

    2:00 – 2:10 p.m.

    Welcome and Introductions
    Loren Kaye, Subcommittee Chair, Little Hoover Commission

    2:10 – 2:15 p.m.

    Commission Study Process and Advisory Committee Role
    Stuart Drown, Executive Director, Little Hoover Commission

    2:15 – 4:00 p.m.

    Discussion:

    • Type and Scope of Economic Analysis of Proposed Regulations
       
    • Timing of Analysis and Review by the Public and Outside Experts
       
    • Government Oversight of the Rule Development Process
       

    Comments Submitted by Members of the Public

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    August 12, 2011

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Friday, August 26, 2011, the Regulatory Reform Subcommittee of the Little Hoover Commission will hold an advisory committee meeting to hear from non-regulated stakeholders to gain insights into their concerns and perspectives on the use of economic analysis and greater oversight of California’s rule-making process. The Commission has been studying California’s regulatory process with the intention of making recommendations, if warranted, to improve transparency, accountability and efficiency in the rulemaking process. The meeting will begin at 2:00 p.m. in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento, California.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown, executive director, at (916) 445-2125 or littlehoover@lhc.ca.gov by Friday, August 19, 2011.

  • January 27
    2011
    Regulatory Reform
    9:00 a.m., State Capitol, Room 437, Sacramento, CA
    Public Hearing
    Agenda

    AGENDA

    Public Hearing on Regulatory Reform
    Thursday, January 27, 2011, at 9:00 a.m. 
    State Capitol, Room 437 
    Sacramento, CA


    Opening Remarks

    Value and Types of Economic Analysis 

    1. James Sanchirico, Ph.D., Professor, University of California, Davis (Written Testimony)
       

    The Regulation Development Process in California 

    1. Debra Cornez, Acting Director and Assistant Chief Counsel, Office of Administrative Law (Written Testimony)


    Agency Examples of Economic Analysis of Proposed Regulations

    1. Lynn Terry, Deputy Executive Officer, California Air Resources Board (Written Testimony)
       
    2. William Pennington, Manager, High Performance Buildings and Standards (Written Testimony)
      ​​​​​​​

    The Risks and Costs to Businesses of Regulatory Uncertainty

    1. David Chidester, President and Owner, Central Cal Transportation (Written Testimony)
      ​​​​​​​

    Comments Submitted by Members of the Public

    • Robert Stavins, Albert Pratt Professor of Business and Government, John F. Kennedy School of Government, Harvard University; and Todd Schatzki, Vice President, Analysis Group (Written Comments)
    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    January 13, 2011

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, January 27, 2011, the Little Hoover Commission will conduct a public hearing on California regulatory reform. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    In this study, the Commission is examining California’s regulatory review process. The goal of this study is to develop recommendations to improve clarity and accountability in how the state develops regulations, assesses their impacts prior to implementation and measures their effectiveness once in place. The Commission expects to learn from the experience of regulated industries, the view from state agencies and departments charged with developing or reviewing regulations and strategies employed by other governments at the city, state and federal level.

    The Commission will hear from James Sanchirico, an environmental economics professor at University of California, Davis, and Debra Cornez, Acting Director and Assistant Chief Counsel at the Office of Administrative Law. The Commission also will hear from Lynn Terry, Deputy Executive Officer for the California Air Resources Board, and William Pennington, Manager of the High Performance Buildings and Standards Development Office at the California Energy Commission. Finally, the Commission will hear from David Chidester, President and Owner of Central Cal Transportation.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in Room 437 of the State Capitol in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, January 19, 2011.

  • October 28
    2010
    Regulatory Reform
    9:00 a.m., State Capitol, Room 437, Sacramento, CA
    Public Hearing
    Agenda

    AGENDA

    Public Hearing on Regulatory Reform 
    Thursday, October 28, 2010, at 9:00 a.m. 
    State Capitol, Room 437
    Sacramento, CA


    Opening Remarks

    A broad look at California’s regulatory system challenges

    1. Adrian Moore, Ph.D., Vice President of Research, Reason Foundation (Written Testimony)
       

    Regulated industries’ perspective on problems with the process

    1. Alfred Montna, Owner, Montna Farms, and President, California State Board of Food and Agriculture (Written Testimony)
       
    2. Robert Raymer, P.E., Senior Engineer/Technical Director, California Building Industry Association (Written Testimony)


    Making it work: Examples of governments that have tackled the challenges

    1. Ted Egan, Ph.D., Chief Economist, San Francisco Office of Economic Analysis (Written Testimony)
       
    2. Allen Malanowski, Chief Economist, Arizona Governor’s Regulatory Review Council (Written Testimony)
      ​​​​​​​

    Public Comments

    Public Notice

    PUBLIC NOTICE

    FOR IMMEDIATE RELEASE
    October 14, 2010

    For Additional Information Contact:
    Stuart Drown, Executive Director
    (916) 445-2125

    Notice of Meeting

    On Thursday, October 28, 2010, the Little Hoover Commission will conduct a public hearing on California regulatory reform. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

    Some have criticized the state’s regulatory processes, with the goal of improving clarity and accountability, in the way the state develops regulations and assesses their impacts and outcomes. This study will look at economic analysis, transparency and sunset reviews in the regulatory system. The Commission expects to learn from knowledgeable stakeholders and from the strategies of other governments – at the city, state and federal level.

    The Commission will hear from Adrian Moore, vice president of research for Reason Foundation. The Commission also will hear from Al Montna, owner of Montna Farms and president of the California State Board of Food and Agriculture, and Robert Raymer, senior engineer and technical director for the California Building Industry Association. Finally, the Commission will hear from Ted Egan, chief economist of the San Francisco Office of Economic Analysis, and Allen Malanowski, chief economist for the Governor’s Regulatory Review Council in Arizona.

    There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

    Immediately following the hearing, the Commission will hold a business meeting in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento.

    All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, October 20, 2010.

August 26
2011
Regulatory Reform
2:00 p.m., Legislative Counsel Conference Room, Lower Level, 925 L Street, Sacramento, CA
Advisory Committee Meeting
Agenda

AGENDA

Advisory Committee Meeting on Regulatory Reform
Friday, August 26, 2011, at 2:00 p.m.
Legislative Counsel Conference Room, Lower Level
925 L Street, Sacramento, CA


Meeting Goal: Gather input from non-regulated stakeholders – environmental and labor representatives – to learn what perspectives and concerns they have regarding potential changes to the regulation development process.

2:00 – 2:10 p.m.

Welcome and Introductions
Loren Kaye, Subcommittee Chair, Little Hoover Commission

2:10 – 2:15 p.m.

Commission Study Process and Advisory Committee Role
Stuart Drown, Executive Director, Little Hoover Commission

2:15 – 4:00 p.m.

Discussion:

  • Type and Scope of Economic Analysis of Proposed Regulations
     
  • Timing of Analysis and Review by the Public and Outside Experts
     
  • Government Oversight of the Rule Development Process
     

Comments Submitted by Members of the Public

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
August 12, 2011

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Friday, August 26, 2011, the Regulatory Reform Subcommittee of the Little Hoover Commission will hold an advisory committee meeting to hear from non-regulated stakeholders to gain insights into their concerns and perspectives on the use of economic analysis and greater oversight of California’s rule-making process. The Commission has been studying California’s regulatory process with the intention of making recommendations, if warranted, to improve transparency, accountability and efficiency in the rulemaking process. The meeting will begin at 2:00 p.m. in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento, California.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown, executive director, at (916) 445-2125 or littlehoover@lhc.ca.gov by Friday, August 19, 2011.

January 27
2011
Regulatory Reform
9:00 a.m., State Capitol, Room 437, Sacramento, CA
Public Hearing
Agenda

AGENDA

Public Hearing on Regulatory Reform
Thursday, January 27, 2011, at 9:00 a.m. 
State Capitol, Room 437 
Sacramento, CA


Opening Remarks

Value and Types of Economic Analysis 

  1. James Sanchirico, Ph.D., Professor, University of California, Davis (Written Testimony)
     

The Regulation Development Process in California 

  1. Debra Cornez, Acting Director and Assistant Chief Counsel, Office of Administrative Law (Written Testimony)


Agency Examples of Economic Analysis of Proposed Regulations

  1. Lynn Terry, Deputy Executive Officer, California Air Resources Board (Written Testimony)
     
  2. William Pennington, Manager, High Performance Buildings and Standards (Written Testimony)
    ​​​​​​​

The Risks and Costs to Businesses of Regulatory Uncertainty

  1. David Chidester, President and Owner, Central Cal Transportation (Written Testimony)
    ​​​​​​​

Comments Submitted by Members of the Public

  • Robert Stavins, Albert Pratt Professor of Business and Government, John F. Kennedy School of Government, Harvard University; and Todd Schatzki, Vice President, Analysis Group (Written Comments)
Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
January 13, 2011

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, January 27, 2011, the Little Hoover Commission will conduct a public hearing on California regulatory reform. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

In this study, the Commission is examining California’s regulatory review process. The goal of this study is to develop recommendations to improve clarity and accountability in how the state develops regulations, assesses their impacts prior to implementation and measures their effectiveness once in place. The Commission expects to learn from the experience of regulated industries, the view from state agencies and departments charged with developing or reviewing regulations and strategies employed by other governments at the city, state and federal level.

The Commission will hear from James Sanchirico, an environmental economics professor at University of California, Davis, and Debra Cornez, Acting Director and Assistant Chief Counsel at the Office of Administrative Law. The Commission also will hear from Lynn Terry, Deputy Executive Officer for the California Air Resources Board, and William Pennington, Manager of the High Performance Buildings and Standards Development Office at the California Energy Commission. Finally, the Commission will hear from David Chidester, President and Owner of Central Cal Transportation.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in Room 437 of the State Capitol in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, January 19, 2011.

October 28
2010
Regulatory Reform
9:00 a.m., State Capitol, Room 437, Sacramento, CA
Public Hearing
Agenda

AGENDA

Public Hearing on Regulatory Reform 
Thursday, October 28, 2010, at 9:00 a.m. 
State Capitol, Room 437
Sacramento, CA


Opening Remarks

A broad look at California’s regulatory system challenges

  1. Adrian Moore, Ph.D., Vice President of Research, Reason Foundation (Written Testimony)
     

Regulated industries’ perspective on problems with the process

  1. Alfred Montna, Owner, Montna Farms, and President, California State Board of Food and Agriculture (Written Testimony)
     
  2. Robert Raymer, P.E., Senior Engineer/Technical Director, California Building Industry Association (Written Testimony)


Making it work: Examples of governments that have tackled the challenges

  1. Ted Egan, Ph.D., Chief Economist, San Francisco Office of Economic Analysis (Written Testimony)
     
  2. Allen Malanowski, Chief Economist, Arizona Governor’s Regulatory Review Council (Written Testimony)
    ​​​​​​​

Public Comments

Public Notice

PUBLIC NOTICE

FOR IMMEDIATE RELEASE
October 14, 2010

For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125

Notice of Meeting

On Thursday, October 28, 2010, the Little Hoover Commission will conduct a public hearing on California regulatory reform. The hearing will begin at 9 a.m. in Room 437 of the State Capitol in Sacramento.

Some have criticized the state’s regulatory processes, with the goal of improving clarity and accountability, in the way the state develops regulations and assesses their impacts and outcomes. This study will look at economic analysis, transparency and sunset reviews in the regulatory system. The Commission expects to learn from knowledgeable stakeholders and from the strategies of other governments – at the city, state and federal level.

The Commission will hear from Adrian Moore, vice president of research for Reason Foundation. The Commission also will hear from Al Montna, owner of Montna Farms and president of the California State Board of Food and Agriculture, and Robert Raymer, senior engineer and technical director for the California Building Industry Association. Finally, the Commission will hear from Ted Egan, chief economist of the San Francisco Office of Economic Analysis, and Allen Malanowski, chief economist for the Governor’s Regulatory Review Council in Arizona.

There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.

Immediately following the hearing, the Commission will hold a business meeting in the Legislative Counsel Conference Room located on the lower level of 925 L Street in Sacramento.

All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Wednesday, October 20, 2010.