A.I.M. Supports Cost Benefit Anyalysis for New Regulations.

Business Editors

BOSTON--(BUSINESS WIRE)--May 21, 2001

At a legislative hearing today held by the Legislature's Joint Committee on State Administration on H.3191, An Act Concerning a Cost Benefit Analysis for New Rules and Regulations, Associated Industries of Massachusetts (A.I.M.), an employer association of more than 5,400 Bay State employers, will urge the committee to give H.3191 a favorable ought-to-pass report.

H.4191 seeks to amend the Massachusetts Administrative Procedure Act (M.G.L. c.30A) - to require the completion of a "regulatory impact statement" (RIS) by the government agency proposing a new rule to be made public during the rulemaking process under 30A. This situation would allow the public and the Legislature to better understand the scope, benefits and financial impact of the proposed regulation.

Currently, relatively little analysis or notice to the Legislature and to interested parties is required, leaving the implementation-related details to the administrative branch of government, specifically by granting agencies the authority to draft and promulgate rules and regulations without considering cost estimates or other prescriptions that may be available to meet the intent of a specific statute.

For example, the recent Department of Safety regulations regarding above ground storage tanks failed to take into account the cost of the new requirement on business for inspection of any tank other than water, at a projected cost of approximately $500 per tank; or the recent power plant emissions regulations promulgated by the Department of Environmental Protection which may increase the cost of electricity to consumers by as much as $500 million to $1 billion annually.

Commenting on the bill, Richard Lord, A.I.M.'s president & CEO said, "A.I.M. believes that adoption of H.3191 would significantly improve the rule and regulation making process in the Commonwealth. A favorable report by the Committee and ultimate action by the Legislature," Lord said, "would help to further improve Massachusetts's business climate and meet the ongoing challenge faced by the state to continue to attract much needed new investments in our economy."

Established in 1915, Associated Industries of Massachusetts is the largest nonprofit, nonpartisan association of Massachusetts employers. A.I.M.'s mission is to promote the well-being of its members and their employees and the prosperity of the Commonwealth of Massachusetts by improving the economic climate of Massachusetts, proactively advocating fair and equitable public policy and providing relevant, reliable information and excellent services.