Criteria for Reforming Rules
The new Arizona Office of Pest Management has failed to review any of the existing rules transferred over from the old Arizona Structural Pest Control Commission (SPCC). Further, the previous rule reviews performed by the SPCC were a sham.
We need to consider two topics here: the first is why do we need to reduce regulation and the second is what criteria should be used to review the existing regulation and new regulations.
We need to consider alternatives that lighten the impact on small businesses that still achieve regulations goals. State agencies must periodically review the impact of regulations on consumers and small businesses.
What criteria should be used to review the existing rules?
The following criteria has been adapted from the federal Small Business Administration Office of Advocacy:
Whether the rule could reasonably be tailored to accomplish its intended objectives while reducing the impact on small businesses.
Whether the rule has ever been reviewed for its impact on small entities.
Whether technology, economic conditions, or other factors have changed since the rule was originally written.
Whether the rule imposes duplicate requirements.
The overall importance of the rule to small businesses
Why do we need to reduce regulation?
Cost. Small businesses spend more money complying with regulations than large companies. A small business can easily spend 45% or more than a large business to comply with government regulations. This makes you less competitive relative to the large company. Read How are small companies disadvantaged by paperwork? for a detailed explanation of how this process works.
Overhead. The owner of a small business only has so much time to service paying customers. Every new piece of paperwork that must be filled out takes away from production time. Every additional procedure takes away from production time. Read How are small companies disadvantaged by paperwork? for a detailed explanation of how this process works.
Consumer choice and cost. Big service companies (cartels) will only increase cost to the consumer and reduce the quality of service. In the long run, a big service company will limit competition by blocking new small businesses and running old small businesses out of business through unfavorable legislation. Reducing regulation can protect the public while providing an environment compatible with small business. Read Should you be able to apply unrestricted chemicals without a license? to see how over regulation can significantly reduce consumer choice while driving up consumer cost without increasing consumer protection. Read Should Arizona mandate warranties? and Should Arizona ignore the federal label? for a detailed discussion of consumer protection and safety.
Improved education. Regulations are no substitute for education. Reducing regulation frees up resources to provide and obtain education, which benefits everyone - the consumer, the pest control operator and the government. Read How should education and testing be done? for a detailed look at improved education.
The Arizona Rulemaking Manual (PDF):
Introduction (updated 11/02)
Section 1: Rulemaking in General (updated 11/02)
Section 2: Definitions, Rule Drafting, and Publishing Style (updated 9/03)
Section 3: Frequently Asked Questions; Renumbering; Supplementals (updated 11/02)
Section 4: Rulemaking Forms (updated 7/02) (Forms in RTF format)
Section 5: Checklists (updated 7/02)
Section 6: Administrative Procedure Act (updated 2/04)
Section 7: Rules of the Office of the Secretary of State (updated 2/04)
Section 8: Rules of G.R.R.C. (updated 2/04)
Section 9: Bibliography
Copyright © 2009 by Phyllis M. Farenga. All rights reserved.
Updated February 2009
It's Our Turn
P.O. Box 565
Marana, Arizona 85653