Regulation at all levels of government is a major issue for small businesses.  In a study done by the Office of Advocacy they found that small businesses pay almost $7,000.00 per employee to comply with federal regulations while larger companies pay around $4,400.00.

In our survey the burden of complying with state regulations came up as the fifth most significant issue for small businesses.  The problem is made even worse in that many small businesses are not even aware that they are out of compliance.

One example of this is the requirement that every small business with employees have a written Injury and Illness Prevention.  Most small businesses in the state are not aware of this and if they are have no idea how to develop such a program.

Small businesses understand the necessity of some regulations to protect employees, the environment and the public.  We do however want to have input on regulations that are put forth by state agencies and we want the regulations put forth in understandable terms, have reasonable timelines, at a cost that will input small businesses the least.

AB505 was strongly supported by small businesses a number of years ago to address these issues.  Unfortunately it hasn’t been fully implemented.  The Small Business Advocates position was created and has not been funded for over 18 months.  We are actively working with the Governor and Legislature to fund the advocate.

We have introduced legislation through Assemblyman Jerome Horton (AB1302) to give    The Office of Administrative Law the authority to review regulations put forth by state agencies and consider in their review the impact on small business.  Unfortunately labor has raised concerns and this has become a two year bill. 

We have supported additional funding of The Office of Administration Law to give them the ability to review regulations.  This additional funding has now been included in the May revised budget of the Governor and must be approved by the legislature.