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By Vetoing Regulatory Reform, Kasich Misses Opportunity to Build on Success

Greg R. Lawson Aug 30, 2018

On August 2, Governor John Kasich issued a disappointing veto to Senate Bill 221, which would have given elected members of the General Assembly greater oversight over the rule making process and government regulations implemented by unelected bureaucrats.

Without this oversight, our elected lawmakers have limited ability to rein in administrative agencies—that at times create unnecessary regulatory burdens for Ohioans trying to earn a living or grow a business. And by vetoing SB 221, Governor Kasich missed an opportunity to build upon his administration’s success in improving Ohio’s regulatory climate.

The policies in SB 221 were not an attempt to eliminate regulations that are legitimately needed to protect public health and ensure safety, as some have claimed. Rather, the policies would have allowed lawmakers to rein in, reform, and reconsider regulations that place unnecessary burdens on Ohioans.

One need look no further than Ohio’s occupational licensing requirements to find numerous regulations that would have been ripe for reform under SB 221. These “permission slip” regulations that force people to ask the government if they are allowed to earn a living harm Ohio’s economy and harm Ohioans trying to start careers—particularly women, those with low incomes, and minorities. Cutting back these rules and regulations would free many of our fellow citizens to move up the ladder of economic success.

No rule making process is perfect or infallible, and the policies in SB 221 would have given lawmakers the power to re-evaluate regulations if there were unforeseen or unintended negative consequences after a rule was adopted—a wise and prudent measure.

Unfortunately, left in place—under current law—is a provision that says rules can only be reviewed every five years. In other words, if a rule is adopted and it soon becomes obvious—say within one year—that greater harm is being done, we have to wait four more years before anything can be done to remedy the situation. In the meantime, how many businesses have failed? How many jobs have been lost?

The veto was particularly disappointing given all the Kasich Administration—particularly Lt. Governor Mary Taylor—has done to reduce Ohio’s regulatory burden, such as the Common Sense Initiative, which expanded the ability of businesses to work with the administration to ensure new rules protect the public without making it too difficult to open and operate a businesses. This was a significant improvement to Ohio’s regulatory processes.

However, a better balance can be found—one that keeps Ohioans safe without sacrificing a growing economy. And the policies in SB 221 would have moved Ohio in that direction.

Greg R. Lawson is the research fellow with The Buckeye Institute.