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Regulation Reform Will Improve Business Climate, Spur Job Creation

Published on January 25, 2011, 07:01am CDT

MADISON Businesses will be encouraged to create new jobs and Wisconsin’s business climate will improve dramatically if regulatory reforms are passed into law at the Capitol, WMC said Tuesday.

“Currently, rules and regulations bubble up from the bureaucracy with almost no resistance and that hurts our business climate,” said James A. Buchen, WMC vice president of government relations. “Regulatory uncertainty hampers job creation because businesses will expand where there is a stable climate for regulations, taxes and litigation. We need to reform our regulatory system to encourage job creation.”

In a stunning analysis of Wisconsin regulations, Wisconsin regulators rules were allowed to go into effect 99 percent of the time over the last 20 years. WMC unveiled the analysis Tuesday in calling for a crackdown on regulations.

Since 1990, agencies have submitted 3,504 rules to the Legislature for review. Of those, only 21 rules received an objection by JCRAR, which accounts for 0.6% of all rules. In total, only four rules (0.1%) have been altered by an act of the Legislature. We do not believe this is an acceptable level of scrutiny, or an effective means to ensure agencies are carrying out the Legislature’s intent.

“We need to put more accountability into the system by allowing a governor – any governor – to stop the development or implementation of new regulations,” Buchen said. “The governor runs the executive branch, and he should be able to control the executive branch.”

A legislative committee Tuesday heard testimony on the regulatory reform proposal that includes restricting rule making authority, gubernatorial review of rules, cost-benefit analysis requirements and allowing rules to be challenged in any county in the state. The proposal is supported by Governor Scott Walker and lawmakers who are passing new laws to encourage job creation.

WMC testified in support of a regulatory reform bill Tuesday. Click here to read the full testimony.

“The Governor is elected by the voters as the head of the Executive Branch of government. It is therefore very appropriate for the Governor to play a role in reviewing rules proposed by his or her own agencies,” WMC testified.

“By comparison, the Governor’s authority to veto legislation enacted by elected lawmakers from the Legislative Branch of government is widely accepted. The notion that the Governor should not be allowed the same authority over legislation from unelected officials in his or her own branch of government defies logic, and offends the most fundamental principles of representative governing,” WMC added.

“Wisconsin needs to reign in the development of rules by bureaucrats and restore a more representative democracy as outlined in the Wisconsin Constitution,” Buchen said. “We should be a government of, by and for the people, and not of by and for the bureaucrats.”

Related Material:
WMC Testimony

FOR FURTHER INFORMATION CONTACT:
James A. Buchen or Scott Manley, (608) 258-3400

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