FRANKFORT, Ky. (July 6, 2016) – Gov. Matt Bevin today promised to identify and eliminate or revise outdated and unnecessary state regulations that hamper business growth in Kentucky.
The governor announced the Red Tape Reduction Initiative, which will cut through the red tape of excessive and complex regulatory burdens that are a hardship for many business owners and will reduce the amount of government bureaucracy affecting Kentucky businesses, thus making the Commonwealth more employee-friendly.
“As a business owner, I understand firsthand how difficult it can be for a new or growing business to be aware of, understand and comply with every government regulation,” Gov. Bevin said. “While some regulations are very necessary and protect the public safety, others can stifle economic growth, impose unnecessary costs on businesses and impede private sector investment. These costs all get passed through to the consumer. I constantly hear from business owners that confusing government mandates and red tape are huge challenges for them. There are more than 4,500 state regulations on the books in Kentucky, and only 15 to 20 percent of them have ever been reviewed for effectiveness or ongoing need. This suffocating red tape is a problem that must be fixed and, with the help of all Kentuckians, we intend to do just that.”
Gov. Bevin is asking businesses and employees throughout the state to assist in this effort by identifying burdensome regulations and offering suggestions for improvement. A website has been established, www.RedTapeReduction.com, to collect those ideas and suggestions for review.
The governor has already instructed cabinet secretaries to start a review of all government regulations currently on the books. He is also asking all state employees, including those who enforce these regulations, to offer suggestions for improvement.
The initiative has the support of many business organizations throughout the state, including the Kentucky Chamber of Commerce.
According to Chamber President David Adkisson, “This initiative has been a long time coming, and I, on behalf of Kentucky businesses, could not be more pleased that this is taking place. I commend Gov. Bevin, and our members will take an active role in identifying outdated or cumbersome regulations.”
A variety of Kentucky business leaders received a preview of the initiative and the response has been enthusiastic.
“I think a lot of regulations can be simplified and this initiative presents the opportunity not only to reduce red tape, which is certainly needed, but to help compliance with needed regulations,” said Gay Dwyer, senior vice president, government affairs for the Kentucky Retail Federation.
“Recently, we were working on a regulation that said if an owner of a business was using a mason jar to take a dip sample for run off, they had to get a permit to be a laboratory. And this is ridiculous!” added Tom Underwood, Kentucky state director of the National Federation of Independent Business. “Hopefully, we’ve got that worked out, but that’s just one example of the things that can be done to help Kentucky become more business-friendly.”
“Excessive red tape adds to the cost of a facility and doesn’t quickly adapt to new construction practices,” said Ron Wolf, director of external relations with the Associated General Contractors of Kentucky. “The regulations often don’t take into account new technologies that are now available to a general contractor or electricians, but the new technologies are not approved in current regulations.”
“Businesses and their employees are, and will remain, committed to safety,” said Brian Clark, executive director of the Kentucky Petroleum Marketers Association. “What we’re talking about is the ability to actually stay in business, working in an industry that’s very competitive and provides an absolute service to the infrastructure of our state. If our ‘Mom and Pop’ businesses can’t stay open because they simply cannot afford to, not only are we defeating the purpose of the regulation, but we’re doing our communities, our small businesses and more importantly our small rural areas a disservice by taking away the opportunity to have those goods and services provided.”
Gov. Bevin is seeking input on red tape reduction ideas from both businesses and individuals.
“Any person who has dealt with government at any level, may well have come across a regulation that just doesn’t seem to make sense. So, I invite all Kentuckians to contact us with their thoughts and ideas. We need all hands on deck to reduce the amount of government red tape in the Commonwealth.”
For more information on the initiative or to submit a suggestion on a regulation that should be reviewed, please visit www.RedTapeReduction.com.
The Kentucky Cabinet for Economic Development is the primary state agency responsible for encouraging new jobs and investment in the state. New capital investment announced in Kentucky in 2017 totaled a state record $9.2 billion, spurring more than 17,200 projected new jobs. Information on available industrial properties, workforce development assistance, incentive programs, community profiles, small business development and other economic development resources is available at www.ThinkKentucky.com.