BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1099
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          SENATE THIRD READING
          SB 1099 (Wright)
          As Amended  August 24, 2012
          Majority vote

           SENATE VOTE  :   33-0
            
           BUSINESS & PROFESSIONS     9-0  APPROPRIATIONS      17-0        
           
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          |Ayes:|Hayashi, Bill Berryhill,  |Ayes:|Gatto, Harkey,            |
          |     |Allen, Butler, Eng,       |     |Blumenfield, Bradford,    |
          |     |Hagman, Hill, Ma, Smyth   |     |Charles Calderon, Campos, |
          |     |                          |     |Davis, Donnelly, Fuentes, |
          |     |                          |     |Hall, Hill, Cedillo,      |
          |     |                          |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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.  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;









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             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.

          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.

          5)Exempts a regulation adopted by the Fish and Game Commission 
            (Commission) pursuant to specified conditions.

          6)Exempts a regulation adopted by the Commission that requires a 
            different effective date in order to conform to a federal 
            regulation.

          7)Defines "ANSI/APSP performance standard" to mean a standard 
            that is accredited by the American National Standards 
            Institute (ANSI) and published by the Association of Pool and 
            Spa Professionals (APSP).

          8)Defines "suction outlet" to mean a fitting or fixture 
            typically located at the bottom or on the sides of a swimming 
            pool that conducts water to a recirculating pump.

          9)Deletes references to "drains" and replace with "suction 
            outlets."

          10)Deletes a reference to "main drain suction outlets that are 
            less than 12 inches across" and replace it with "suction 
            outlets."

          11)Deletes a reference to "main drain system" and replace it 
            with "circulation system."

          12)Deletes a reference to "main drain suction fitting" and 
            replace it with "suction outlet."

          13)Makes other conforming changes.  

           FISCAL EFFECT  :   According to the Assembly Appropriations 








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          Committee:

          1)Changing the effective date of regulations would likely 
            require OAL to renegotiate the contract with the publisher of 
            the California Code of Regulations (CCR). Under the current 
            contract, the publisher pays the state $400,000 for the 
            privilege of publishing the CCR. In prior years, the publisher 
            has paid $600,000.  However, due to the current availability 
            of information on the internet, that amount was reduced.  
            Unlike California, many states pay publishers to publish their 
            regulatory codes. The complexity of these new requirements 
            combined with the declining number of subscriptions for hard 
            copies of the CCRs may cause the publisher to reduce their 
            payment or even require the state to pay for publishing the 
            CCRs. 

          2)Unknown, potentially significant workload costs associated 
            with requiring over 200 state agencies to post all regulations 
            packages on their websites within 15 days of submitting those 
            regulations to the Secretary of State.  In 2011, there were 
            close to 5,000 regulatory packages submitted to OAL. 

          3)One-time costs for OAL, likely in the range of $50,000 for the 
            training and reprogramming costs associated with the 
            requirement that OAL post a link to the full text of every 
            regulatory package. 

           COMMENTS  :   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 
          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."

          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 








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          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.  


           Analysis Prepared by  :    Elissa Silva / B.,P. & C.P. / (916) 
          319-3301                                               



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