Lawmakers Pursuing Ways to Improve Regulatory Climate

Several legislators have introduced and committees are considering measures to help address Connecticut’s national standing as having a rough regulatory climate for businesses.

Behind some of these measures are several Connecticut municipalities that are feeling the sting of a state environmental general permit process that carries virtually the same impact as a regulation but—unlike for other regulations—goes through no formal approval by the legislature or anywhere else outside the Department of Environmental Protection.

Legislative leadership and members of the Commerce, Government Administration and Elections (GAE), and Regulations Review committees are all studying the issue and considering specific measures.

Commerce has introduced SB 1018 that would require agencies proposing state regulations for activities already regulated by the federal government, to prepare a plain-language “federal deviation analysis” explaining why Connecticut needs more stringent requirements.

GAE heard testimony last week on a measure introduced by Sen. Tony Hwang (R-Fairfield), SB 845 that would expand existing requirements for measuring the potential fiscal impact of regulations on small businesses to include all businesses and municipalities.

And Regulations Review, led by Sen. Clark Chapin (R-New Milford) and Rep. Brian Becker (D-West Hartford) is reviewing its own rules and procedures to determine if they can do more to ensure agencies are regularly reviewing their regulations to make them more streamlined, understandable and reasonable.

CBIA and others have testified on these and other bills recommending that legislators consider, as part of their efforts, formalizing in statute the “transparency and efficiency” components of Gov. Malloy’s Executive Order #37 and creating regulatory officers within each agency, as a point of contact for receiving formal reports on the implementation of the executive order’s provisions.

CBIA also agrees that the statutory definition of regulation applies to DEEP general permits. What’s more, permits with the potential to impact significant numbers of businesses or municipalities (at least 25 businesses or municipalities), should be reviewed and approved by the Regulations Review Committee.

The focus of the legislature and governor on the need to improve our regulatory climate is a positive direction, and CBIA and its members are prepared to help further refine these proposals as they move forward.

For more information, contact CBIA’s Eric Brown at 860.244.1926 | eric.brown@cbia.com | @CBIAericb