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



                                   **********