We are pleased to report that Senator Ben Hueso’s (D-San Diego) SB 401, which will assist in presenting a clear understanding of economic impacts from regulations to commercial construction by providing cost reporting requirements for new building standards, continues to move along with little opposition.  This bill builds upon current law which provides this information for residential building standards.

Since 1982 state agencies have been required to prepare an economic impact analysis that clearly identifies any adverse economic impacts on business, small business and housing. However, the economic impact analysis has most often been accompanied by boilerplate language that states:

“The agency has determined that there will be no significant economic impact on business/housing.”

As is widely recognized, such regulations more often than not have a cost impact, and this generic sentence gives no real indication to the public as to what the estimated cost (in dollars) and benefits are with the proposed building standard.

SB 401 requires a state agency proposing a building standard to cite the estimated cost and benefits of compliance; for decades state agencies have been developing this information to support a determination of economic impact.

Thanks to Senator Hueso for carrying such a “make-sense” bill!

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