BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1099|
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                                 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 
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          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. 







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          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)







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          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 







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          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.








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           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

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