Currently, lawmakers in Ohio are considering legislation that would lead the way in reducing the regulatory burden placed on businesses. Texas is the only other state Americans for Tax Reform has tracked which has passed similar legislation. And arguably, Ohio’s is more comprehensive.
This is an opportunity for the Buckeye state to take the pole position on driving free market reform at the state level.
Senate Bill 293, a pro-growth, and pro-job creator measure would require all state agencies to reduce their respective regulatory restrictions by thirty percent. To help meet this requirement, regulatory agencies will have to repeal two regulations for every new regulation.
Additionally, Senate Bill 293 would require the creation of a database managed by the Joint Committee on Agency Rule Review. The creation of said database would create substantial transparency and clarity regarding its regulatory burden.
The Bill is co-sponsored by Ohio Senate President Larry Obhof, who explains that Senate Bill 293 will “[get] rid of the unnecessary red tape and regulation that harms small businesses and slows economic growth.” Senators Peterson and McColley sponsored the legislation.
Reducing the regulatory burden could spur Ohio’s lagging economy and create jobs. Research indicates that regulation often stifles entrepreneurship and innovation, which often drive economic growth. Regulation is especially harmful to small businesses who simply do not have the staff necessary to comply with a complex web of codes and requirements.
Ohio possesses one of the heaviest regulatory burdens in the nation. A study by the Mercatus Center indicated that there are 246,852 regulations in the 2018 Ohio Administrative Code. The Mercatus figure places Ohio as the state they’ve analyzed with the third-most regulations. The only states with more are the regulatory behemoths Illinois and New York.
By reducing the number of regulations on its books, Ohio can bring its regulatory burden in line with its neighbors. This will place Ohio in a more competitive position when attempting to attract businesses to the state.
Opponents of the bill claim that reducing the number of regulations will make Ohio residents less safe. However, there are many regulations that cover areas that have nothing to do with safety or protecting citizens. Instead, they waste business’s valuable time and deprive Ohioans of the economic growth they deserve.