A ground-breaking regulatory reform package, Senate Bill 1, sailed through Ohio’s upper chamber last week.
The bill requires state agencies to reduce regulations by 30 percent. It requires two regulations be cut for every new regulation introduced.
It is largely focused on legislative review, and providing accountability for bureaucracy. Agencies will have to review and justify their regulatory codes. But they will have every chance to defend regulations they want to keep, and the 30 percent goal will not force cuts to any needed regulations.
SB 1 is a welcome and needed reform proposal. Regulations that are needed to protect the health and safety of Ohioans will remain, while duplicative rules, or regulations that contradict legislative intent will rightfully go.
In testimony, Americans for Tax Reform outlined the opportunity to improve Ohio’s business climate:
“Ohio ranks 45th out of the 50 states in Tax Foundation’s 2018 business tax climate rankings. A 2015 Pacific Research Institute analysis of the best state regulatory environments for small business shows Ohio at a mediocre 27th, meanwhile neighboring Indiana is a sterling first place.
“On top of the more than one million regulations in the federal code, the state imposes nearly 247,000 additional restrictions, according to the Mercatus Center at George Mason University. The two biggest regulators being the Lottery Commission with over 30,000 regulations, and the Environmental Protection Agency with over 28,000. Out of 29 states measured, Ohio has the third most regulations, behind New York and Illinois.”
The bill is a priority for Senate President Obhof. It was sponsored by Senators McColley and Roegner, who deserve applause for championing a great bill.
It now rests in the House where it may face a tougher battle. Still, what better way for House leadership to make up for their gas tax hike than to cut red tape, boosting Ohio’s business climate.