14-Mar-24 Drycleaners Should Support Additional Rule-Making Reforms

Drycleaners and other Ohio businesses could better avoid the damaging effects of state agency regulations if “no change” departmental rules are subjected to the same standards as new rules. Senate Bill 3 would do that and would also plug other important gaps in Ohio’s regulatory oversight process, including subjecting any rule-making by the five statewide elective offices to a business impact analysis.

Existing Ohio law requires all 15,000+ rules in the state’s administrative code to be reviewed every five years and filed with the Joint Committee on Agency Rule Review (JCARR). If the state agency reviewing the rule doesn’t make any changes, it is called a five-year “no change” review. In 2011, the Common Sense Initiative Office (CSI) was created to independently evaluate the economic impact of state agency regulations on businesses and to reduce that impact wherever possible. However, the legislation creating CSI did not include “no change” rules in the CSI review process. SB 3 corrects that omission and requires “no change” rules with an adverse impact on business to first be sent through the CSI process before being filed with JCARR.

SB 3 would ensure that compliance with state regulations is as easy and inexpensive as possible and that proposed rules facilitate rather than hinder economic growth, are transparent and responsive, and are enforced fairly and consistently. Testifying to CSI’s effectiveness is the fact that of the 1,543 regulations reviewed in 2013, 59% were either rescinded or amended and thus revised toward a more business-friendly outcome.

Currently, over one-fourth of all rules filed are “no change” rules and, under today’s system, are not subject to a business impact analysis. Some of these rules have been on the books for decades and have significant costs associated with them. Having “no change” rules become subject to the same process as new rules, as intended by SB 3, will cut down on government red tape and foster greater continuity, transparency and fairness.

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