Regulatory Oversight and Business Impact Analysis

Abstract

An enhanced program of regulatory oversight for Kansas is critical to the design of a comprehensive state policy of economic development. Specifically, the introduction of cost-benefit considerations into a more structured analysis of regulatory impact on the Kansas economy and on its resident industries would make a significant contribution toward the achievement of the state's development objectives.

The economic costs of regulation to Kansas business can be substantial. In a state where 99.7 percent of its business fall under the SBA's definition of small business, these costs can be especially detrimental to the long-term growth potential of the Kansas economy. The state of Kansas should systematically gather data about the economic costs of regulations to Kansas business, and link that data to an evaluation process that weighs their impact against other regulatory priorities.

The state's existing oversight activities focus on determinations of correct form, legality, authority, and legislative intent. While Kansas statutes instruct promulgating agencies to prepare statements of fiscal/financial impact for proposed regulations and to attempt to reduce the impact of proposed regulations on small business, statutory authority for regulatory oversight does not specify any decision rules for the consideration of economic or small-business impact by the agency or by a designated board of review. Nor does Kansas legislation direct agencies to implement alternative approaches when the economic effects of proposed regulations are determined to be overly burdensome to Kansas business.