BILL ANALYSIS Ó Bill No: SB 1099 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Roderick D. Wright, Chair 2011-2012 Regular Session Bill Analysis SB 1099 Author: Wright Introduced: February 16, 2012 Hearing Date: March 27, 2012 Consultant: Paul Donahue SUBJECT Regulations; effective dates & availability of pending regulations DESCRIPTION SB 1099 provides that regulations adopted by state agencies shall take effect on either January 1 or July 1, and that an Internet link to each pending regulation shall be made available. Specifically, this bill: 1)Provides that a regulation adopted by a state agency becomes effective on either of the following dates, subject to the same exceptions to the 30-day effective date set forth in existing law: a) July 1 if the regulation or order of repeal is filed on December 1 to June 1, inclusive. b) January 1 if the regulation or order of repeal is filed on June 2 to November 30, inclusive. 2)Requires the OAL to provide on its Internet website a list of, and a link to the full text of each regulation filed with the Secretary of State for which the effective date is pending. EXISTING LAW 1)The Administrative Procedure Act (APA) establishes SB 1099 (Wright) continued Page 2 rulemaking procedures and standards for the adoption, amendment, or repeal of regulations by state agencies charged with the enforcement of state laws, and for the review of those regulatory actions by the Office of Administrative Law (OAL). (Govt. Code § 11340 et seq.) 2)Under the APA, a regulation or an order of repeal becomes effective on the 30th day after filing with the Secretary of State unless: a) Otherwise provided by the law under which the regulation was adopted; b) A later date is prescribed by the state agency; or c) The agency makes a written request to OAL demonstrating good cause for an earlier effective date, in which case OAL may prescribe an earlier date. (Govt. Code § 11343.4) 3)OAL is required to make available the full text of the California Code of Regulations on the Internet, free of charge. (Govt. Code § 11344) BACKROUND 1)Purpose : The author states that every year, businesses face a barrage of new regulations promulgated by state agencies. The regulations go into effect 30 days after filing with the Secretary of State, and this happens year round. It is difficult, if not impossible, for a small business with minimal staff to keep track of the regulatory process involving multiple departments and agencies. Often this has the effect of guaranteeing that many businesses will be out of compliance with some of the new rules. The author states further that SB 1099 will go a long way toward providing certainty to California's businesses by allowing them to predict and prepare for new operating rules mandated by state departments. 2)Statements in support : The supporters state that passage of this bill will alleviate pressure of regulations being enacted at differing times and will lead to better SB 1099 (Wright) continued Page 3 compliance. It will save the state money in enforcement efforts and provide some measure of protection for California's job creators in a time of economic uncertainty, without interfering with an agency's ability to react quickly when there is an urgent need, such as is the case when public safety is threatened. PRIOR/RELATED LEGISLATION SB 553 (Fuller) 2011-12 Session . Stated that a regulation or an order of repeal of a regulation shall become effective 180 days after the date it is filed with the Secretary of State, instead of 30 days, as provided in existing law. (Died in Senate Governmental Organization Committee). SB 688 (Wright) 2011-12 Session . Among other things delayed the effective date of a regulation by one year if the estimated total costs of compliance exceeded $10 million. (Failed passage in Senate Environmental Quality Committee). SUPPORT: American Chemistry Council American Council of Engineering Companies of California Associated Builders and Contractors of California California Association of Bed & Breakfast Inns California Association of Health Facilities California Chamber of Commerce California Construction and Industrial Materials Association California Grocers Association California Hotel & Lodging Association California Independent Oil Marketers Association California Manufacturers & Technology Association California Professional Assoc. of Specialty Contractors California Retailers Association Chemical Industry Council of California Coalition for Adequate School Housing Coalition of Small and Disabled Veteran Businesses Consumer Specialty Products Association Golden State Builders Exchanges National Federation of Independent Business (sponsor) Small Business California United Contractors SB 1099 (Wright) continued Page 4 OPPOSE: None on file DUAL REFERRAL: Senate Environmental Quality Committee FISCAL COMMITTEE: Senate Appropriations Committee **********