Is it appropriate for government to increase the regulatory burdens and costs on Florida businesses during a recession? This is the question the Florida Legislature faced this year, and thankfully, Democrats and Republicans alike answered with a resounding no. The Legislature didnt raise taxes or fees, it reduced unemployment taxes on businesses, and it passed a multimillion-dollar Jobs for Florida package.
Lawmakers also took a meaningful step toward bridging the disconnect between bureaucrats in Tallahassee and small businesses struggling to keep their lights on. Thanks to the leadership of Rep. Chris Dorworth and Sen. Mike Bennett and the unanimous support of their fellow members of the House and Senate, House Bill 1565 passed to finally tie state government rulemaking to its impact on the private sector.
In a nutshell, this measure requires each agency, before adopting, amending or repealing certain rules, to prepare a statement of estimated regulatory costs of a proposed rule if that rule has adverse impacts on small business or increases regulatory costs.
Contrary to criticism by certain special-interest groups and government bureaucrats afraid of greater public scrutiny, HB 1565 increases accountability and transparency in the creation of new government rules. If a proposed rule has a negative impact on private investment, job creation or regulatory costs in excess of $1 million over five years, the rule would have to be sent back to the Legislature for its approval.
This isnt a new concept or at odds with the authority of the executive branch of government. The Florida Legislature grants state agencies the authority to propose and adopt rules, and can put any conditions it sees fit on that grant of authority. Plus, the Legislature has been requiring agencies to submit certain significant rules for ratification for decades. This ensures what the agency proposed is consistent with the Legislatures original intent. Not one court in Florida has ever ruled this practice to be unconstitutional.
Most rules proposed by state government wouldnt be subject to this added scrutiny, but the rules that will be sent back to the Legislature for review will benefit from the additional public input and debate they will receive.
Right now, a business has to hire a lawyer and navigate a complicated process if its rights are threatened by a proposed government regulation. In this economy, few businesses can afford this added cost, and run the risk of having stringent new rules imposed upon them without any regard for the economic impact it might have on our state or their ability to create jobs.
HB 1565 would provide additional information on a proposed rules effect on private-sector job creation in Florida, and subject only those rules negatively affecting our states economy in excess of $1 million to the extra step of legislative scrutiny. The Legislature could still approve the rule, but would do so afterhaving the benefit of public testimony and debate. An affected business or industry could make its case, in the sunshine, before our elected representatives, without the need to hire a high-priced legal team or understand the intricacies of the Administrative Procedures Act.
In unanimously passing HB 1565, the Legislature put job creation and government accountability first. Unfortunately, Gov. Charlie Crist vetoed this important bill, though, for the sake of Florida employers, hopefully the Legislature will revisit this issue in the future.
Adam Babington is vice president of governmental affairs for the Florida Chamber of Commerce.