State agencies will be required to consider the fiscal impacts of regulatory proposals on the cost of living before moving them forward if a California Chamber of Commerce-supported bill becomes law.
The Cost Cutter bill, AB 2366 (Ávila Farías; D-Martinez), this week passed the first committee to consider the legislation.
AB 2366 requires state agencies as well as the Legislative Analyst’s Office to evaluate regulations to determine their fiscal impact on cost of living in California, ensuring affordability is a consideration when the state is evaluating proposed new regulations.
Californians have made clear that affordability is top of mind due to the high cost of living in the state, CalChamber noted in a letter to the committee.
It therefore is important that the impact of proposed regulations on people’s pocketbooks is taken into consideration when new rules are being considered, CalChamber stated.
For example, the agency should analyze whether regulations may increase the cost of goods and services or deter job growth in California and the resulting impact on consumers.
The Assembly Economic Development, Growth and Household Impact Committee passed AB 2366 by a vote of 7-0 on April 14:
Ayes: Castillo (R-Corona), Patel (D-San Diego), Petrie-Norris (D-Irvine), Michelle Rodriguez (D-Pomona), Solache (D-Lakewood), Soria (D-Merced), Wallis (R-Bermuda Dunes).
No vote recorded: Muratsuchi (D-Torrance).
The bill will be considered next by the Assembly Judiciary Committee.
