Ohio Regulatory Sandbox Legislation Would Make State Friendlier to New Businesses & Create Jobs 

Heavy regulation can drag down a state’s economic growth, which is why Ohio Republican legislators have been focused on easing those burdens in recent years.  

One Mercatus study finds overregulation has cost taxpayers each $13,000 individually. Regulatory burdens stifle innovation and throttle business growth – especially hampering entrepreneurs and small businesses.  

Ohio has struggled with overregulation, ranking as the 6th highest regulated state in the country in 2023. According to a study from Mercatus, these regulations have led to 287 fewer businesses created each year, 4,508 jobs lost each year, and a 7.35% increase in prices.  

Fortunately for Ohioans, legislators, the governor, and lt. Governor have enacted measures to reduce regulations by 30% (SB9), and require that two regulations be cut for every new one introduced. There is still room to do more.  

 Currently, legislators are working on an innovative solution, HB 476. Representatives Al Cutrona and Brett Hillyer introduced the bill to create the Regulatory Relief Office within the Department of Commerce.  

This bill, and the subsequent office, would start a sandbox program where a business owner can apply to temporarily waive certain state laws and regulations in order to test out potential innovations and practices.  

Sandboxes, much like their childhood namesake, serve as an environment for creation and the testing of innovative ideas. They allow us to build new industries and economic practices that improve the lives of every American. The sandbox program allows for experimentation from businesses while still having some level of monitoring from the government.  

Hannah Kubbins, the legislative director for Americans for Prosperity Ohio, testified to members of the Ohio House, noting that excessive regulations have slowed economic growth, saying she was “pleased to see HB 476 includes a mechanism that allows the regulatory relief office to identify state laws and regulations that unnecessarily inhibit innovation and provide recommendations to modify or remove these laws to the governor and legislature.”  

HB476 strikes a balance between innovation and responsibility. This bill will allow Ohio to break free from the shackles of regulation and rapidly increase the economic expansion within the states. If Ohio legislators continue to lead on reducing the regulatory burden, and pass HB 476, the state’s attractiveness to new businesses will keep skyrocketing.