What is California’s SRIA process?

SRIA stands for a Standardized Regulatory Impact Analysis. It’s required to be done for any so-called major regulations. Under existing law, all regulations are required to have an analysis of the potential economic impact of a proposed regulation. In 2011, the Legislature determined that for financially impactful regulations, which amounts for anywhere from 10% to 15% of the state regulations that are proposed each year, must follow the SRIA process.

The formal rulemaking process begins when a state entity submits its proposed regulatory action to the Office of Administrative Law, OAL. The entity has to consider the proposal’s impact on business, specifically with consideration of industries affected, such as the ability of California businesses to compete with businesses in other states. In fact, the entity, the rulemaking body, must even consider information that is supplied to it by interested parties.

Why is this more detailed analysis under SRIA required? California’s Government Code provides some information. Specifically, the Government Code and other provisions say that the analyses that are being conducted under the SRIA statute really are intended to provide agencies, as well as members of the public, like the regulated community, with the information that they need to determine whether or not this proposed regulation is in effect the most efficient and effective means of implementing whatever policy decision or decisions that’s required by the statute in the least burdensome manner.

The SRIA process does six major things beyond the baseline regulatory analysis.

  1. Assess and determine the benefits and costs of the proposed regulation.
  2. Compare the proposed regulatory alternatives with a baseline.
  3. Determine the impact of the proposal on the state’s economy, businesses, and general welfare.
  4. Assess the effects of the proposal on the General Fund and any special funds.
  5. Determine the cost of enforcement and compliance
  6. Estimate the true economic impact.

YOu can read the transcript of the audio in today’s post here.