BILL ANALYSIS Ó
SB 1099
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Date of Hearing: June 19, 2012
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
SB 1099 (Wright) - As Amended: May 17, 2012
SENATE VOTE : 33-0
SUBJECT : Regulations
SUMMARY : Revises the dates in which a regulation or order of
appeal becomes effective and requires the Office of
Administrative Law (OAL) to post certain information on its Web
site for a specified period of time. Makes other conforming
changes. Specifically, this bill :
1)Requires within 15 days of the OAL filing a state agency's
regulation with the Secretary of State (SOS), the regulation
be posted on the internet Web site in an easily identifiable
location and maintain the regulation of the Web site for at
least six months from the date the regulation is filed with
the SOS.
2)Requires the agency, within five days of posting, to send to
the OAL the Web site link of each regulation that the agency
posts on its Web site and provides that this measure does not
apply to a state agency that does not maintain a Web site.
3)Provides that unless the effective date is specifically
provided, a regulation or an order of repeal shall become
effective on a quarterly basis as follows:
a) January 1 if the regulation or order of repeal is filed
on September 1 to November 30, inclusive;
b) April 1 if the regulation or order of repeal is filed on
December 1 to February 29, inclusive;
c) July 1 if the regulation or order of repeal is filed on
March 1 to May 31, inclusive; and,
d) October 1 if the regulation or order of repeal is filed
on June 1 to August 31, inclusive.
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4)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
which the effective date is pending.
EXISTING LAW:
1)Establishes the Administrative Procedure Act (APA), which is
charged with 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 regulations by the OAL.
2)Requires the OAL to make available on the internet, the full
text of the California Code of Regulations, free of charge.
3)Provides for the publication dates and manner and form in
which regulations shall be printed and ensures timely
availability of printed material.
4) Requires every state agency to transmit to the OAL, for
filing with the SOS, a certified copy of every regulation
adopted or amended or order of repeal, except one that is a
building standard.
5)Requires that a regulation or order of repeal becomes
effective on the 30th day after filing with the SOS unless:
a) Otherwise provided by the law under which the regulation
was adopted;
b) A later date is prescribed by the agency; or,
c) The agency makes a written request to OAL demonstrating
good cause for an earlier effective date, in which case the
office may prescribe an earlier date.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "every
year, businesses face a barrage of new regulations promulgated
by numerous agencies. Last year alone there were 467 new
regulations proposed by 103 different agencies. It is
difficult, if not impossible, for a small business with minimal
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staff, to keep track of the regulatory process involving
multiple departments and agencies. This often has the effect of
guaranteeing that many businesses will be out of compliance with
some of the new rules. A small business owner may be complying
with a regulation passed by one agency and be entirely unaware
of another agency's new requirements."
Background . The APA governs the adoption of regulations by
state agencies for purposes of ensuring that they are clear,
necessary, legally valid, and available to the public. In
seeking adoption of a proposed regulation, state agencies must
comply with procedural requirements that include publishing the
proposed regulation along with supporting statement of reasons;
mailing and publishing a notice of the proposed action 45 days
before a hearing or before the close of the public comment
period; and, submitting a final statement to OAL that summarizes
and responds to all objections, recommendations and proposed
alternatives that were raised during the public comment period.
The OAL is then required to approve or reject the proposed
regulation within 30 days.
OAL is responsible for reviewing administrative regulations
proposed by over 200 state agencies for compliance with the
standards set forth in the APA, for transmitting these
regulations to SOS and for publishing regulations in the
California Code of Regulations. Existing law requires OAL to
review all regulations for necessity and non-duplication, and
requires OAL to print a summary of all regulations filed with
SOS in the previous week in the California Regulatory Notice
Register.
Support . The National Federation of Independent Business writes
in support, "This measure will go a long way toward providing
certainty to California's businesses by allowing them to predict
and prepare for new operating rules being mandated by
government. They will be able to see ahead of time which
regulations have passed, and consequently, which regulations may
conflict with one another."
Related Legislation . AB 338 (Wagner) of 2011, requires the OAL
to submit a copy of disapproved regulations to the Legislature
when certain criteria are met. This bill is pending in Senate
Environmental Quality Committee.
AB 1982 (Gorrell) of 2012, increases from 30 to 90 days the time
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period that a regulation or an order of repeal becomes effective
after being filed with the SOS. This bill was held in Assembly
Appropriations.
Previous Legislation . AB 127 (Logue) of 2011, required that a
regulation or an order of repeal of a regulation become
effective on the following January 1 after a 90-day period
following the date it is filed with the SOS, instead of 30 days
after the date of filing, except where already exempted. This
bill was held in Assembly Business Professions, and Consumer
Protection Committee.
AB 429 (Knight) of 2011, increased the number of days before an
approved regulation becomes effective from 30 to 180 after the
regulation is filed with the SOS, for regulations costing more
than $15 million or that are a 5% increase over an existing
regulation. This bill was held in Assembly Business,
Professions, and Consumer Protection Committee.
SB 553 (Fuller) of 2011, specified that a regulation that has or
is likely to have an adverse economic impact of $10 million or
more becomes effective 180 days after adoption. This bill was
held in Senate Governmental Organization Committee.
SB 688 (Wright) of 2011, required a state agency to notify the
fiscal and appropriate policy committees of the Legislature if
the estimated cumulative statewide cost impacts of a regulation
exceed $10 million for affected businesses, and delays the
effective date for such a regulation. This bill was held in
Senate Environmental Equality.
AB 2466 (Smyth) of 2010, delayed a regulation's effective date
from 30 to 90 days after the filing date with the SOS, and
requires the OAL to submit a copy of the regulation to the
Legislature for review. This bill was held in Assembly
Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
National Federation of Independent Business (sponsor)
American Chemistry Council
American Council of Engineering Companies of California
Associated Builders and Contractors of California
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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 League of Food Processors
California Manufacturing & Technology Association
California Professional Association of Specialty Contractors
California Retailers Association
Chemical Industry Council of California
Coalition of Small and Disabled Veteran Businesses
Consumer Specialty Products Association
Folsom Chamber of Commerce
Golden State Builders Exchanges
Long Beach Area Chamber of Commerce
Small Business California
United Contractors
Opposition
California Board of Accountancy
Analysis Prepared by : Elissa Silva / B.,P. & C.P. / (916)
319-3301