BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1099| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 1099 Author: Wright (D), et al. Amended: 5/17/12 Vote: 21 SENATE GOVERNMENTAL ORG. COMMITTEE : 9-1, 3/27/12 AYES: Wright, Berryhill, Calderon, Cannella, De León, Hernandez, , Wyland, Yee NOES: Corbett NO VOTE RECORDED: Anderson, Evans, Walters SENATE ENVIRONMENTAL QUALITY COMMITTEE : 7-0, 4/23/12 AYES: Simitian, Strickland, Blakeslee, Hancock, Kehoe, Lowenthal, Pavley SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/7/12 AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price, Steinberg SUBJECT : Regulations: effective dates and availability of pending regulations SOURCE : National Federation of Independent Business Small Business California DIGEST : This bill (1) revises the dates that a regulation or order of repeal is effective, (2) requires within 15 days of the Office of Administrative Law (OAL) filing a state agency's regulation with the Secretary of CONTINUED SB 1099 Page 2 State (SOS) to post the regulation on the Internet Web Site in an easily marked and identifiable location. Requires the state agency to keep the regulation on its Internet Web site for at least six months from the date the regulation is filed with the SOS. Within five days of posting, the state agency will be required to send to the OAL the Internet Web site link of each regulation the agency posts on its Web site. This provisions does not apply to a state agency that does not maintain an Internet Web site; (3) Requires the OAL to provide on its Web site a list of, and a link to the full text of each regulation filed with the SOS that is pending effectiveness, and (4) subjects regulations adopted by the Department of Health Services concerning public wading pools to the provisions of law concerning transmittal of certified copies of regulations to the SOS and the California Building Commission. ANALYSIS : Existing Law: 1. The Administrative Procedure Act (APA) establishes 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 OAL. 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. 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. 3. OAL is required to make available the full text of the California Code of Regulations on the Internet, free of charge. SB 1099 Page 3 Under existing law, the Department of Health Services is permitted to adopt regulations relating to public wading pools standards and they have to be forwarded to the California Building Standards Commissioner for approval. Specifics of the bill: 1.Provides that regulations adopted by state agencies shall take effect on either, January 1, July 1 or October 1, and that an Internet link to each pending regulation shall be made available. 2. Requires within 15 days of the OAL filing a state agency's regulation with the SOS to post the regulation on the Internet Web Site in an easily marked and identifiable location. Requires the state agency to keep the regulation on its Internet Web site for at least six months from the date the regulation is filed with the SOS. Within five days of posting, the state agency will be required to send to the OAL the Internet Web site link of each regulation the agency posts on its Web site. This provision does not apply to a state agency that does not maintain an Internet Web site. 3. 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. 4. Subjects regulations adopted by the Department of Health Services concerning wading pools to the provision of law relative to transmittal of certified copies of regulation to the Secretary of State and California Building Commissioner. 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 1099 Page 4 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) FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee on the previous version of this bill, there could be a one-time cost of up to $5,000 to revise the OAL Web site related to contracting with the California Technology Agency to set up and train OAL staff (up to three staff). Annual, likely minor ongoing cost to maintain the rotating list on the OAL Web site. One time cost of $10,000 to contract with a vendor to reprogram OAL's database. Unknown reduction in contract revenue (General Fund). SUPPORT : (Verified 5/17/12) National Federation of Independent Business (co-source) Small Business California (co-source) American Chemistry Council American Council of Engineering Companies of California Associated Builders and Contractors of California Association of California Water Agencies California Asian Pacific Chamber of Commerce California Association of Bed & Breakfast Inns California Association of Health Facilities California Chamber of Commerce California Construction and Industrial Materials Association California Council for Environmental and Economic Balance California Grocers Association California Hotel & Lodging Association California Independent Oil Marketers Association California League of Food Processors California Manufacturers & Technology Association California Professional Association of Specialty SB 1099 Page 5 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 United Contractors Western Growers Association OPPOSITION : (Verified 5/17/12) California Board of Accountancy California Labor Federation California Nurses Association Health Access California National Nurses Organizing Committee Sierra Club ARGUMENTS IN SUPPORT : The author's office 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's office states further that this bill 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. The supporters state that passage of this bill will alleviate pressure of regulations being enacted at differing times and will lead to better 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. SB 1099 Page 6 ARGUMENTS IN OPPOSITION : According to the California Nurses Association and the National Nurses Organizing Committee, "For the past few years, regulatory reform has been a buzzword and dozens of bills have attempted to rewrite the regulatory process. Some even claim it was regulation itself that caused this economic crisis. On the contrary, it was deregulation - of the housing markets, financial institutions, corporate accounting - that directly caused the financial collapse and the national recession. The residents of California need our agencies to focus on promoting good jobs, enforcing state labor laws, protecting our air and water, and preventing workplace injuries. We do not want agency personnel to have their hands tied by a process that appears to be aimed at decreasing protections for our citizenry." DLW:do 5/17/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****