BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 2738|
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                                 THIRD READING


          Bill No:  AB 2738
          Author:   Niello (R)
          Amended:  8/17/10 in Senate
          Vote:     27 - Urgency

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  9-0, 6/22/10
          AYES:  Wright, Harman, Calderon, Denham, Florez, Negrete  
            McLeod, Padilla, Price, Yee
          NO VOTE RECORDED:  Oropeza, Wyland

           SENATE ENV. QUALITY COMMITTEE  :  6-0, 8/9/10
          AYES:  Simitian, Runner, Corbett, Hancock, Lowenthal,  
            Pavley
          NO VOTE RECORDED: Strickland  

          SENATE APPROPRIATIONS COMMITTEE :  Senate Rule 28.8
           
          ASSEMBLY FLOOR  :  72-0, 5/13/10 - See last page for vote


           SUBJECT  :    Regulations:  agency statement of reasons

           SOURCE  :     Pacific Merchant Shipping Association


           DIGEST  :    This bill requires that the initial statement of  
          reasons which is submitted by an agency to the Office of  
          Administrative Law to include a description of any  
          performance standard that was considered as an alternative  
          to a proposed adoption, amendment, or repeal of a  
          regulation.  Sunsets January 1, 2014.

                                                           CONTINUED





                                                               AB 2738
                                                                Page  
          2

           ANALYSIS  :    Existing law, the Administrative Procedure  
          Act, governs the procedure for the adoption, amendment, or  
          repeal of regulations by state agencies and for the review  
          of those regulatory actions by the Office of Administrative  
          Law.

          Existing law requires an agency to submit to the office,  
          among other things, an initial statement of reasons for  
          proposing the adoption, amendment, or repeal of a  
          regulation that includes, among other things, a description  
          of reasonable alternatives to the regulation.  Existing law  
          requires, for a regulation that would mandate the use of  
          specific technologies or equipment or prescribe specific  
          actions or procedures, that the imposition of performance  
          standards be considered as an alternative and that the  
          initial statement of reasons include a statement of reasons  
          why the agency believes that mandates or prescriptive  
          standards are required.

          This bill requires that the initial statement of reasons  
          also include a description of any performance standard that  
          was considered as an alternative to the proposed adoption,  
          amendment, or repeal of a regulation.  Sunsets January 1,  
          2014.

           Comments

           According to the author, "During the rulemaking process, a  
          state agency is required to prepare an Initial Statement of  
          Reasons (ISOR) whenever it proposes to create, repeal or  
          amend a regulation . . . An ISOR describes the basis of the  
          regulation, the purpose of the rule, how it is intended to  
          be implemented and the data on which the public agency  
          relied to develop the proposed regulatory change.   
          Importantly, an ISOR must provide a description of  
          reasonable alternatives to the rule being proposed."

          The author notes that "AB 2738 would retain the  
          requirements for an agency to review reasonable  
          alternatives, but it would amend the language regarding the  
          consideration of a performance standard as an alternative.   


           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    







                                                               AB 2738
                                                                Page  
          3

          Local:  No

           SUPPORT  :   (Verified  8/19/10)

          Pacific Merchant Shipping Association (source)
          Chamber of Commerce


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Bass, Beall,  
            Bill Berryhill, Tom Berryhill, Blakeslee, Block,  
            Blumenfield, Bradford, Brownley, Buchanan, Charles  
            Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De  
            La Torre, De Leon, DeVore, Emmerson, Eng, Evans, Feuer,  
            Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines,  
            Galgiani, Garrick, Gilmore, Hall, Harkey, Hayashi,  
            Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Lieu,  
            Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Nestande,  
            Niello, Nielsen, V. Manuel Perez, Portantino, Ruskin,  
            Salas, Saldana, Silva, Smyth, Solorio, Audra Strickland,  
            Swanson, Torlakson, Torres, Torrico, Tran, Villines,  
            Yamada, John A. Perez
          NO VOTE RECORDED:  Caballero, Hagman, Knight, Monning,  
            Nava, Norby, Skinner, Vacancy


          TSM:kc  8/19/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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