BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 561
                                                                  Page  1

          Date of Hearing:   June 26, 2001

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                  Lou Correa, Chair
                    SB 561 (Morrow) - As Amended:  April 30, 2001

           SENATE VOTE  :   39-0
           
          SUBJECT  :   Administrative Procedure Act.

           SUMMARY  :   Corrects technical drafting errors enacted last year  
          regarding the rulemaking provisions of the Administrative  
          Procedure Act (APA).  Specifically,  this bill  :   

          1)Consolidates duplicative provisions in the APA relating to the  
            use of electronic communications by public agencies to give  
            notice of proposed regulations, or proposed regulatory appeal  
            or amendment, and to receive comments by electronic mail.

          2)Corrects a defect in the definition of "proposed action" for  
            purposes of the administrative rulemaking provisions of the  
            APA.

          3)Deletes a definition of "public notice" that some public  
            agencies found ambiguous.

           EXISTING LAW  

          1)Requires each state agency that proposes regulations pursuant  
            to the administrative rulemaking provisions of the APA to post  
            specified information on its website regarding the proposed  
            regulation, regulatory repeal, or amendment.

          2)Requires an agency that maintains an Internet website or other  
            similar forum, to publish on its website or other forum,  
            specified materials relating to a proposed regulation.

          3)Defines "proposed action" for the purposes of the  
            administrative rulemaking provisions of the APA. 

          4)Defines "public notice" for the purposes of the administrative  
            rulemaking provisions of the APA.

           FISCAL EFFECT  :   Unknown









                                                                  SB 561
                                                                  Page  2

           COMMENTS  :   The purpose of this bill is to implement  
          recommendations of the sponsor, the California Law Revision  
          Commission (CLRC), correcting technical problems relating to the  
          rulemaking provisions of the APA.

          Last year, two bills were enacted - AB 505 (Wright), Chapter  
          1059, Statutes of 2000 and
          AB 1822 (Wayne), Chapter 1060, Statutes of 2000 - that affected  
          the rulemaking procedure and the use of electronic  
          communications under the APA.  According to the sponsor, an  
          error in coordinating these bills resulted in enactment of two  
          essentially duplicative measures with some minor differences.   
          This bill is intended to eliminate redundancy and harmonize the  
          inconsistencies between the two sections of the Government Code  
          by repealing one section and amending the other to preserve the  
          substance of both sections.

          AB 505 (Wright) included a definition of "proposed action" as  
          "the regulatory action submitted to the office (Office of  
          Administrative Law) for publication in the California Regulatory  
          Notice Register."  The sponsor states that there is a technical  
          problem with this definition as it is not the proposed action  
          itself that is published in the California Regulatory Notice  
          Register, but a  notice  of the proposed action.  This bill adds  
          language to correct this defect.

          The administrative provisions of the APA pertaining to required  
          publication of information on state agency websites include a  
          definition of "public notice" as "a notice that is required to  
          be given by an agency to persons who have requested notice of  
          the agency's regulatory action."  According to the sponsor, this  
          definition is potentially confusing.  Two state agencies  
          informed CLRC that they were concerned that the language could  
          be read expansively to require publication of any rulemaking  
          document, since those documents are public and must be provided  
          to interested persons on request.  According to the sponsor,  
          however, this was not the intent of the language.  Therefore,  
          this bill removes this definition and clarifies what is required  
          to be published on agency websites.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Law Revision Commission (sponsor)








                                                                  SB 561
                                                                  Page  3

           
            Opposition 
           
          None on file.

           Analysis Prepared by  : Mark McKenzie / B. & P. / (916) 319-3301