BILL NUMBER: AB 1612	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 5, 2012

INTRODUCED BY   Assembly Member Lara

                        FEBRUARY 7, 2012

   An act to amend Sections 11346.2 and 11346.5 of the Government
Code, relating to administrative regulations.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1612, as amended, Lara. Administrative practices.
   (1) Existing law requires every state agency subject to the
Administrative Procedure Act to provide an initial statement of
reasons for proposing the adoption, amendment, or repeal of a
regulation. Existing law requires that the initial statement of
reasons include, among other things, facts, evidence, documents,
testimony, or other evidence on which the agency relies to support a
specified determination.
   This bill would additionally require that if a regulation that is
a building standard impacts housing, the initial statement of reasons
include the estimated cost of compliance and the potential benefits
of the regulation and the related assumptions used in determining
that estimate, except as specified.
   (2) Existing law requires every state agency to provide notice of
the proposed adoption, amendment, or repeal of a regulation and
requires a designated agency officer to make publicly available the
agency's evaluation, if any, of the effect of the proposed regulatory
action on housing costs.
   This bill would require that in making the evaluation available to
the public, the agency officer include the estimated costs of
compliance and the potential benefits of the regulation, except as
specified. 
   (3) This bill would express the intent of the Legislature that the
requirements of the bill would only apply to those state agencies
that have statutory authority to propose or adopt residential
building standards, and not to the California Air Resources Board,
air pollution control districts, or air quality management districts.

   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11346.2 of the Government Code, as amended by
Section 2 of Chapter 496 of the Statutes of 2011, is amended to read:

   11346.2.  Every agency subject to this chapter shall prepare,
submit to the office with the notice of the proposed action as
described in Section 11346.5, and make available to the public upon
request, all of the following:
   (a) A copy of the express terms of the proposed regulation.
   (1) The agency shall draft the regulation in plain,
straightforward language, avoiding technical terms as much as
possible, and using a coherent and easily readable style. The agency
shall draft the regulation in plain English.
   (2) The agency shall include a notation following the express
terms of each California Code of Regulations section, listing the
specific statutes or other provisions of law authorizing the adoption
of the regulation and listing the specific statutes or other
provisions of law being implemented, interpreted, or made specific by
that section in the California Code of Regulations.
   (3) The agency shall use underline or italics to indicate
additions to, and strikeout to indicate deletions from, the
California Code of Regulations.
   (b) An initial statement of reasons for proposing the adoption,
amendment, or repeal of a regulation. This statement of reasons shall
include, but not be limited to, all of the following:
   (1) A statement of the specific purpose of each adoption,
amendment, or repeal, the problem the agency intends to address, and
the rationale for the determination by the agency that each adoption,
amendment, or repeal is reasonably necessary to carry out the
purpose and address the problem for which it is proposed. The
statement shall enumerate the benefits anticipated from the
regulatory action, including the benefits or goals provided in the
authorizing statute. The benefits may include, to the extent
applicable, nonmonetary benefits such as the protection of public
health and safety, worker safety, or the environment, the prevention
of discrimination, the promotion of fairness or social equity, and
the increase in openness and transparency in business and government,
among other things.
   (2) For a major regulation proposed on or after January 1, 2013,
the standardized regulatory impact analysis required by Section
11346.3.
   (3) An identification of each technical, theoretical, and
empirical study, report, or similar document, if any, upon which the
agency relies in proposing the adoption, amendment, or repeal of a
regulation.
   (4) Where the adoption or amendment of a regulation would mandate
the use of specific technologies or equipment, a statement of the
reasons why the agency believes these mandates or prescriptive
standards are required.
   (5) (A) A description of reasonable alternatives to the regulation
and the agency's reasons for rejecting those alternatives.
Reasonable alternatives to be considered include, but are not limited
to, alternatives that are proposed as less burdensome and equally
effective in achieving the purposes of the regulation in a manner
that ensures full compliance with the authorizing statute or other
law being implemented or made specific by the proposed regulation. In
the case of a regulation that would mandate the use of specific
technologies or equipment or prescribe specific actions or
procedures, the imposition of performance standards shall be
considered as an alternative.
   (B) A description of reasonable alternatives to the regulation
that would lessen any adverse impact on small business and the agency'
s reasons for rejecting those alternatives.
   (C) Notwithstanding subparagraph (A) or (B), an agency is not
required to artificially construct alternatives or describe
unreasonable alternatives.
   (6) (A) Facts, evidence, documents, testimony, or other evidence
on which the agency relies to support an initial determination that
the action will not have a significant adverse economic impact on
business.
   (B) (i) If a proposed regulation that is a building standard
impacts housing, the initial statement of reasons shall include the
estimated cost of compliance, the estimated potential benefits, and
the related assumptions used to determine the estimates.
   (ii) The model codes adopted pursuant to Section 18928 of the
Health and Safety Code shall be exempt from the requirements of this
subparagraph. However, if an interested party has made a request 
in writing  to the agency  , at least 30 days bef 
 ore the submittal of the initial statement of reasons,  to
examine a specific section for purposes of estimating the cost of
compliance and the potential benefits for that section, and including
the related assumptions used to determine the estimates, then the
agency shall comply with the requirements of this subparagraph with
regard to that requested section.
   (7) A department, board, or commission within the Environmental
Protection Agency, the Natural Resources Agency, or the Office of the
State Fire Marshal shall describe its efforts, in connection with a
proposed rulemaking action, to avoid unnecessary duplication or
conflicts with federal regulations contained in the Code of Federal
Regulations addressing the same issues. These agencies may adopt
regulations different from federal regulations contained in the Code
of Federal Regulations addressing the same issues upon a finding of
one or more of the following justifications:
   (A) The differing state regulations are authorized by law.
   (B) The cost of differing state regulations is justified by the
benefit to human health, public safety, public welfare, or the
environment.
   (c) A state agency that adopts or amends a regulation mandated by
federal law or regulations, the provisions of which are identical to
a previously adopted or amended federal regulation, shall be deemed
to have complied with subdivision (b) if a statement to the effect
that a federally mandated regulation or amendment to a regulation is
being proposed, together with a citation to where an explanation of
the provisions of the regulation can be found, is included in the
notice of proposed adoption or amendment prepared pursuant to Section
11346.5. However, the agency shall comply fully with this chapter
with respect to any provisions in the regulation that the agency
proposes to adopt or amend that are different from the corresponding
provisions of the federal regulation.
   (d) This section shall become operative on January 1, 2012.
   (e) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.
  SEC. 2.  Section 11346.2 of the Government Code, as amended by
Section 3 of Chapter 496 of the Statutes of 2011, is amended to read:

   11346.2.  Every agency subject to this chapter shall prepare,
submit to the office with the notice of the proposed action as
described in Section 11346.5, and make available to the public upon
request, all of the following:
   (a) A copy of the express terms of the proposed regulation.
   (1) The agency shall draft the regulation in plain,
straightforward language, avoiding technical terms as much as
possible, and using a coherent and easily readable style. The agency
shall draft the regulation in plain English.
   (2) The agency shall include a notation following the express
terms of each California Code of Regulations section, listing the
specific statutes or other provisions of law authorizing the adoption
of the regulation and listing the specific statutes or other
provisions of law being implemented, interpreted, or made specific by
that section in the California Code of Regulations.
   (3) The agency shall use underline or italics to indicate
additions to, and strikeout to indicate deletions from, the
California Code of Regulations.
   (b) An initial statement of reasons for proposing the adoption,
amendment, or repeal of a regulation. This statement of reasons shall
include, but not be limited to, all of the following:
   (1) A statement of the specific purpose of each adoption,
amendment, or repeal, the problem the agency intends to address, and
the rationale for the determination by the agency that each adoption,
amendment, or repeal is reasonably necessary to carry out the
purpose and address the problem for which it is proposed. The
statement shall enumerate the benefits anticipated from the
regulatory action, including the benefits or goals provided in the
authorizing statute. These benefits may include, to the extent
applicable, nonmonetary benefits such as the protection of public
health and safety, worker safety, or the environment, the prevention
of discrimination, the promotion of fairness or social equity, and
the increase in openness and transparency in business and government,
among other things. Where the adoption or amendment of a regulation
would mandate the use of specific technologies or equipment, a
statement of the reasons why the agency believes these mandates or
prescriptive standards are required.
   (2) For a major regulation proposed on or after November 1, 2013,
the standardized regulatory impact analysis required by Section
11346.3.
   (3) An identification of each technical, theoretical, and
empirical study, report, or similar document, if any, upon which the
agency relies in proposing the adoption, amendment, or repeal of a
regulation.
   (4) (A) A description of reasonable alternatives to the regulation
and the agency's reasons for rejecting those alternatives.
Reasonable alternatives to be considered include, but are not limited
to, alternatives that are proposed as less burdensome and equally
effective in achieving the purposes of the regulation in a manner
that ensures full compliance with the authorizing statute or other
law being implemented or made specific by the proposed regulation. In
the case of a regulation that would mandate the use of specific
technologies or equipment or prescribe specific actions or
procedures, the imposition of performance standards shall be
considered as an alternative.
   (B) A description of reasonable alternatives to the regulation
that would lessen any adverse impact on small business and the agency'
s reasons for rejecting those alternatives.
   (C) Notwithstanding subparagraph (A) or (B), an agency is not
required to artificially construct alternatives or describe
unreasonable alternatives.
   (5) (A) Facts, evidence, documents, testimony, or other evidence
on which the agency relies to support an initial determination that
the action will not have a significant adverse economic impact on
business.
   (B) (i) If a proposed regulation that is a building standard
impacts housing, the initial statement of reasons shall include the
estimated cost of compliance, the estimated potential benefits, and
the related assumptions used to determine the estimates.
   (ii) The model codes adopted pursuant to Section 18928 of the
Health and Safety Code shall be exempt from the requirements of this
subparagraph. However, if an interested party has made a request 
in writing  to the agency  , at least 30 days before the
submittal of the initial statement of reasons,  to examine a
specific section for purposes of estimating the cost of compliance
and the potential benefits for that section, and including the
related assumptions used to determine the estimates, then the agency
shall comply with the requirements of this subparagraph with regard
to that requested section.
   (6) A department, board, or commission within the Environmental
Protection Agency, the Natural Resources Agency, or the Office of the
State Fire Marshal shall describe its efforts, in connection with a
proposed rulemaking action, to avoid unnecessary duplication or
conflicts with federal regulations contained in the Code of Federal
Regulations addressing the same issues. These agencies may adopt
regulations different from federal regulations contained in the Code
of Federal Regulations addressing the same issues upon a finding of
one or more of the following justifications:
   (A) The differing state regulations are authorized by law.
   (B) The cost of differing state regulations is justified by the
benefit to human health, public safety, public welfare, or the
environment.
   (c) A state agency that adopts or amends a regulation mandated by
federal law or regulations, the provisions of which are identical to
a previously adopted or amended federal regulation, shall be deemed
to have complied with subdivision (b) if a statement to the effect
that a federally mandated regulation or amendment to a regulation is
being proposed, together with a citation to where an explanation of
the provisions of the regulation can be found, is included in the
notice of proposed adoption or amendment prepared pursuant to Section
11346.5. However, the agency shall comply fully with this chapter
with respect to any provisions in the regulation that the agency
proposes to adopt or amend that are different from the corresponding
provisions of the federal regulation.
   (d) This section shall be inoperative from January 1, 2012, until
January 1, 2014.
  SEC. 3.  Section 11346.5 of the Government Code is amended to read:

   11346.5.  (a) The notice of proposed adoption, amendment, or
repeal of a regulation shall include the following:
   (1) A statement of the time, place, and nature of proceedings for
adoption, amendment, or repeal of the regulation.
   (2) Reference to the authority under which the regulation is
proposed and a reference to the particular code sections or other
provisions of law that are being implemented, interpreted, or made
specific.
   (3) An informative digest drafted in plain English in a format
similar to the Legislative Counsel's digest on legislative bills. The
informative digest shall include the following:
   (A) A concise and clear summary of existing laws and regulations,
if any, related directly to the proposed action and of the effect of
the proposed action.
   (B) If the proposed action differs substantially from an existing
comparable federal regulation or statute, a brief description of the
significant differences and the full citation of the federal
regulations or statutes.
   (C) A policy statement overview explaining the broad objectives of
the regulation and the specific benefits anticipated by the proposed
adoption, amendment, or repeal of a regulation, including, to the
extent applicable, nonmonetary benefits such as the protection of
public health and safety, worker safety, or the environment, the
prevention of discrimination, the promotion of fairness or social
equity, and the increase in openness and transparency in business and
government, among other things.
   (D) An evaluation of whether the proposed regulation is
inconsistent or incompatible with existing state regulations.
   (4) Any other matters as are prescribed by statute applicable to
the specific state agency or to any specific regulation or class of
regulations.
   (5) A determination as to whether the regulation imposes a mandate
on local agencies or school districts and, if so, whether the
mandate requires state reimbursement pursuant to Part 7 (commencing
with Section 17500) of Division 4.
   (6) An estimate, prepared in accordance with instructions adopted
by the Department of Finance, of the cost or savings to any state
agency, the cost to any local agency or school district that is
required to be reimbursed under Part 7 (commencing with Section
17500) of Division 4, other nondiscretionary cost or savings imposed
on local agencies, and the cost or savings in federal funding to the
state.
   For purposes of this paragraph, "cost or savings" means additional
costs or savings, both direct and indirect, that a public agency
necessarily incurs in reasonable compliance with regulations.
   (7) If a state agency, in proposing to adopt, amend, or repeal any
administrative regulation, makes an initial determination that the
action may have a significant, statewide adverse economic impact
directly affecting business, including the ability of California
businesses to compete with businesses in other states, it shall
include the following information in the notice of proposed action:
   (A) Identification of the types of businesses that would be
affected.
   (B) A description of the projected reporting, recordkeeping, and
other compliance requirements that would result from the proposed
action.
   (C) The following statement: "The (name of agency) has made an
initial determination that the (adoption/amendment/repeal) of this
regulation may have a significant, statewide adverse economic impact
directly affecting business, including the ability of California
businesses to compete with businesses in other states. The (name of
agency) (has/has not) considered proposed alternatives that would
lessen any adverse economic impact on business and invites you to
submit proposals. Submissions may include the following
considerations:
   (i) The establishment of differing compliance or reporting
requirements or timetables that take into account the resources
available to businesses.
   (ii) Consolidation or simplification of compliance and reporting
requirements for businesses.
   (iii) The use of performance standards rather than prescriptive
standards.
   (iv) Exemption or partial exemption from the regulatory
requirements for businesses."
   (8) If a state agency, in adopting, amending, or repealing any
administrative regulation, makes an initial determination that the
action will not have a significant, statewide adverse economic impact
directly affecting business, including the ability of California
businesses to compete with businesses in other states, it shall make
a declaration to that effect in the notice of proposed action. In
making this declaration, the agency shall provide in the record
facts, evidence, documents, testimony, or other evidence upon which
the agency relies to support its initial determination.
   An agency's initial determination and declaration that a proposed
adoption, amendment, or repeal of a regulation may have or will not
have a significant, adverse impact on businesses, including the
ability of California businesses to compete with businesses in other
states, shall not be grounds for the office to refuse to publish the
notice of proposed action.
   (9) A description of all cost impacts, known to the agency at the
time the notice of proposed action is submitted to the office, that a
representative private person or business would necessarily incur in
reasonable compliance with the proposed action.
   If no cost impacts are known to the agency, it shall state the
following:

   "The agency is not aware of any cost impacts that a representative
private person or business would necessarily incur in reasonable
compliance with the proposed action."

   (10) A statement of the results of the economic impact assessment
required by subdivision (b) of Section 11346.3 or the standardized
regulatory impact analysis if required by subdivision (c) of Section
11346.3, a summary of any comments submitted to the agency pursuant
to subdivision (f) of Section 11346.3 and the agency's response to
those comments.
   (11) The finding prescribed by subdivision (d) of Section 11346.3,
if required.
   (12) (A) A statement that the action would have a significant
effect on housing costs, if a state agency, in adopting, amending, or
repealing any administrative regulation, makes an initial
determination that the action would have that effect.
   (B) The agency officer designated in paragraph (14) shall make
available to the public, upon request, the agency's evaluation, if
any, of the effect of the proposed regulatory action on housing
costs.
   (C)  (i)    The statement
described in subparagraph (A) shall also include the estimated costs
of compliance and potential benefits of a building standard, if any,
that were included in the initial statement of reasons. 
    (ii) 
    (D)  For purposes of  a model code 
 model codes  adopted pursuant to Section 18928 of the
Health and Safety Code, the agency shall comply with the requirements
of this  subparagraph   paragraph  only if
an interested party has made a request to the agency to examine a
specific section for purposes of estimating the costs of compliance
and potential benefits for that section, as described in Section
11346.2.
   (13) A statement that the adopting agency must determine that no
reasonable alternative considered by the agency or that has otherwise
been identified and brought to the attention of the agency would be
more effective in carrying out the purpose for which the action is
proposed, would be as effective and less burdensome to affected
private persons than the proposed action, or would be more cost
effective to affected private persons and equally effective in
implementing the statutory policy or other provision of law. For a
major regulation, as defined by Section 11342.548, proposed on or
after November 1, 2013, the statement shall be based, in part, upon
the standardized regulatory impact analysis of the proposed
regulation, as required by Section 11346.3, as well as upon the
benefits of the proposed regulation identified pursuant to
subparagraph (C) of paragraph (3).
   (14) The name and telephone number of the agency representative
and designated backup contact person to whom inquiries concerning the
proposed administrative action may be directed.
   (15) The date by which comments submitted in writing must be
received to present statements, arguments, or contentions in writing
relating to the proposed action in order for them to be considered by
the state agency before it adopts, amends, or repeals a regulation.
   (16) Reference to the fact that the agency proposing the action
has prepared a statement of the reasons for the proposed action, has
available all the information upon which its proposal is based, and
has available the express terms of the proposed action, pursuant to
subdivision (b).
   (17) A statement that if a public hearing is not scheduled, any
interested person or his or her duly authorized representative may
request, no later than 15 days prior to the close of the written
comment period, a public hearing pursuant to Section 11346.8.
   (18) A statement indicating that the full text of a regulation
changed pursuant to Section 11346.8 will be available for at least 15
days prior to the date on which the agency adopts, amends, or
repeals the resulting regulation.
   (19) A statement explaining how to obtain a copy of the final
statement of reasons once it has been prepared pursuant to
subdivision (a) of Section 11346.9.
   (20) If the agency maintains an Internet Web site or other similar
forum for the electronic publication or distribution of written
material, a statement explaining how materials published or
distributed through that forum can be accessed.
   (b) The agency representative designated in paragraph (14) of
subdivision (a) shall make available to the public upon request the
express terms of the proposed action. The representative shall also
make available to the public upon request the location of public
records, including reports, documentation, and other materials,
related to the proposed action. If the representative receives an
inquiry regarding the proposed action that the representative cannot
answer, the representative shall refer the inquiry to another person
in the agency for a prompt response.
   (c) This section shall not be construed in any manner that results
in the invalidation of a regulation because of the alleged
inadequacy of the notice content or the summary or cost estimates, or
the alleged inadequacy or inaccuracy of the housing cost estimates,
if there has been substantial compliance with those requirements.
   SEC. 4.    (a) It is the intent of the Legislature
that the requirements of this act only apply to state agencies that
have statutory authority to propose or adopt residential building
standards.  
   (b) It is the intent of the Legislature that this act not apply to
standards developed and adopted by the California Air Resources
Board, air pollution control districts, or air quality management
districts.