BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1099|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1099
          Author:   Wright (D), et al.
          Amended:  8/24/12
          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

           SENATE FLOOR  :  33-0, 5/25/12
          AYES:  Alquist, Anderson, Berryhill, Blakeslee, Cannella, 
            Corbett, Correa, De León, DeSaulnier, Dutton, Emmerson, 
            Evans, Fuller, Gaines, Harman, Hernandez, Huff, La Malfa, 
            Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla, 
            Pavley, Price, Rubio, Steinberg, Vargas, Walters, Wolk, 
            Wright, Yee
          NO VOTE RECORDED:  Calderon, Hancock, Kehoe, Runner, 
            Simitian, Strickland, Wyland

           ASSEMBLY FLOOR  :  Not available


                                                           CONTINUED





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           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 
          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. 

           Assembly Amendments  exempt regulations adopted by the Fish 
          and Game Commission (FGC) and a regulation by FGC that 
          requires a different effective date in order to conform to 
          a federal regulation, and double-joint the bill with AB 
          2114 (Smyth).

           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. 







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          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. 

          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.

          This bill:

          1. Requires within 15 days of the OAL filing a state 
             agency's regulation with the 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 







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                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. 

          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 FGC pursuant to 
             specified conditions. 

          6. Exempts a regulation adopted by FGC 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." 







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          13.Makes other conforming changes. 

          14.Double-joints the bill with AB 2114 (Smyth).

           Prior/Related Legislation
           
          SB 553 (Fuller, 2011-12) 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 SOS, instead of 30 
          days, as provided in existing law.  The bill died in the 
          Senate Governmental Organization Committee.

          SB 688 (Wright, 2011-12), among other things, delayed the 
          effective date of a regulation by one year if the estimated 
          total costs of compliance exceeded $10 million.  The bill 
          failed passage in the Senate Environmental Quality 
          Committee.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Assembly Appropriations 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 







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             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. 

           SUPPORT  :   (Verified  5/17/12) (Unable to reverify at time 
          of writing)

          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 
          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

           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 







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          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.


          DLW:dm  8/28/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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