BILL NUMBER: SB 1520	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Calderon

                        FEBRUARY 24, 2012

   An act to amend Sections 11346.2 and 11346.3 of, and to add and
repeal Article 5.5 (commencing with Section 65958) of Chapter 4.5 of
Division 1 of Title 7, of the Government Code, relating to state
government, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1520, as introduced, Calderon. State government: administrative
efficiency.
   (1) The Administrative Procedure Act governs the procedure for the
adoption, amendment, or repeal of regulations by state agencies and
for the review of those regulatory actions by the Office of
Administrative Law. The act requires each agency that proposes to
adopt, amend, or repeal any major regulation, as defined, on or after
November 1, 2013, to prepare a standardized economic impact
analysis. The act requires an agency that seeks to adopt, amend, or
repeal a major regulation to release a notice of proposed action that
includes, among other things, the standardized economic impact
analysis. The act requires an agency to file with the office, when it
files the notice of proposed action, an initial statement of reasons
that includes, among other things, the standardized economic impact
analysis for each major regulation proposed on or after January 1,
2013.
   This bill would instead require that the statement of reasons
include a standardized impact analysis for each major regulation
proposed on or after November 1, 2013.
   This bill would make various conforming changes to those
provisions.
   (2) Existing law sets forth generally the procedures for the
review and approval of permits for development projects in the state.

   This bill would, until January 1, 2014, establish the Streamlined
Permit Review Team in state government, consisting of the Secretary
of Business, Transportation and Housing, the Secretary for
Environmental Protection, and the Secretary of the Natural Resources
Agency. The bill would require the team, upon the request of a permit
applicant, to convene permitting agencies, as defined, to perform
various activities in making the application process more efficient.
The bill would require the permitting agencies to determine the
completeness of an application and act upon the application within
specified time periods, subject to certain conditions. This bill
would require the team, on or before March 1, 2014, to submit a
report to the Governor and to the Legislature with prescribed
information relating to the permitting activities of the team.
   (3) This bill would declare that it is to take effect immediately
as an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11346.2 of the Government Code, as amended by
Section 2 of Chapter 496 of the Statutes of 2011, is amended to read:

   11346.2.  Every agency subject to this chapter shall prepare,
submit to the office with the notice of the proposed action as
described in Section 11346.5, and make available to the public upon
request, all of the following:
   (a) A copy of the express terms of the proposed regulation.
   (1) The agency shall draft the regulation in plain,
straightforward language, avoiding technical terms as much as
possible, and using a coherent and easily readable style. The agency
shall draft the regulation in plain English.
   (2) The agency shall include a notation following the express
terms of each California Code of Regulations section, listing the
specific statutes or other provisions of law authorizing the adoption
of the regulation and listing the specific statutes or other
provisions of law being implemented, interpreted, or made specific by
that section in the California Code of Regulations.
   (3) The agency shall use underline or italics to indicate
additions to, and strikeout to indicate deletions from, the
California Code of Regulations.
   (b) An initial statement of reasons for proposing the adoption,
amendment, or repeal of a regulation. This statement of reasons shall
include, but not be limited to, all of the following:
   (1) A statement of the specific purpose of each adoption,
amendment, or repeal, the problem the agency intends to address, and
the rationale for the determination by the agency that each adoption,
amendment, or repeal is reasonably necessary to carry out the
purpose and address the problem for which it is proposed. The
statement shall enumerate the benefits anticipated from the
regulatory action, including the benefits or goals provided in the
authorizing statute. The benefits may include, to the extent
applicable, nonmonetary benefits such as the protection of public
health and safety, worker safety, or the environment, the prevention
of discrimination, the promotion of fairness or social equity, and
the increase in openness and transparency in business and government,
among other things.
   (2) For a major regulation proposed on or after  January
  November  1, 2013, the standardized regulatory
impact analysis required by Section 11346.3.
   (3) An identification of each technical, theoretical, and
empirical study, report, or similar document, if any, upon which the
agency relies in proposing the adoption, amendment, or repeal of a
regulation.
   (4) Where the adoption or amendment of a regulation would mandate
the use of specific technologies or equipment, a statement of the
reasons why the agency believes these mandates or prescriptive
standards are required.
   (5) (A) A description of reasonable alternatives to the regulation
and the agency's reasons for rejecting those alternatives.
Reasonable alternatives to be considered include, but are not limited
to, alternatives that are proposed as less burdensome and equally
effective in achieving the purposes of the regulation in a manner
that ensures full compliance with the authorizing statute or other
law being implemented or made specific by the proposed regulation. In
the case of a regulation that would mandate the use of specific
technologies or equipment or prescribe specific actions or
procedures, the imposition of performance standards shall be
considered as an alternative.
   (B) A description of reasonable alternatives to the regulation
that would lessen any adverse impact on small business and the agency'
s reasons for rejecting those alternatives.
   (C) Notwithstanding subparagraph (A) or (B), an agency is not
required to artificially construct alternatives or describe
unreasonable alternatives.
   (6) Facts, evidence, documents, testimony, or other evidence on
which the agency relies to support an initial determination that the
action will not have a significant adverse economic impact on
business.
   (7) A department, board, or commission within the Environmental
Protection Agency, the Natural Resources Agency, or the Office of the
State Fire Marshal shall describe its efforts, in connection with a
proposed rulemaking action, to avoid unnecessary duplication or
conflicts with federal regulations contained in the Code of Federal
Regulations addressing the same issues. These agencies may adopt
regulations different from federal regulations contained in the Code
of Federal Regulations addressing the same issues upon a finding of
one or more of the following justifications:
   (A) The differing state regulations are authorized by law.
   (B) The cost of differing state regulations is justified by the
benefit to human health, public safety, public welfare, or the
environment.
   (c) A state agency that adopts or amends a regulation mandated by
federal law or regulations, the provisions of which are identical to
a previously adopted or amended federal regulation, shall be deemed
to have complied with subdivision (b) if a statement to the effect
that a federally mandated regulation or amendment to a regulation is
being proposed, together with a citation to where an explanation of
the provisions of the regulation can be found, is included in the
notice of proposed adoption or amendment prepared pursuant to Section
11346.5. However, the agency shall comply fully with this chapter
with respect to any provisions in the regulation that the agency
proposes to adopt or amend that are different from the corresponding
provisions of the federal regulation.
   (d) This section shall become operative on January 1, 2012.
   (e) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.
  SEC. 2.  Section 11346.3 of the Government Code is amended to read:

   11346.3.  (a) State agencies proposing to adopt, amend, or repeal
any administrative regulation shall assess the potential for adverse
economic impact on California business enterprises and individuals,
avoiding the imposition of unnecessary or unreasonable regulations or
reporting, recordkeeping, or compliance requirements. For purposes
of this subdivision, assessing the potential for adverse economic
impact shall require agencies, when proposing to adopt, amend, or
repeal a regulation, to adhere to the following requirements, to the
extent that these requirements do not conflict with other state or
federal laws:
   (1) The proposed adoption, amendment, or repeal of a regulation
shall be based on adequate information concerning the need for, and
consequences of, proposed governmental action.
   (2) The state agency, prior to submitting a proposal to adopt,
amend, or repeal a regulation to the office, shall consider the
proposal's impact on business, with consideration of industries
affected including the ability of California businesses to compete
with businesses in other states. For purposes of evaluating the
impact on the ability of California businesses to compete with
businesses in other states, an agency shall consider, but not be
limited to, information supplied by interested parties.
   (3) An economic analysis prepared pursuant to this subdivision for
a proposed regulation that is not a major regulation or that is a
major regulation proposed prior to November 1, 2013, shall be
prepared in accordance with subdivision (b). An economic analysis
prepared pursuant to this subdivision for a major regulation proposed
on or after November 1, 2013, shall be prepared in accordance with
subdivision (c), and shall be included in the initial statement of
reasons as required by Section 11346.2.
   (b) (1) All state agencies proposing to adopt, amend, or repeal a
regulation that is not a major regulation or that is a major
regulation proposed prior to November 1, 2013, shall prepare an
economic impact  analysis   assessment that
assesses whether and to what extent it will affect the following:
   (A) The creation or elimination of jobs within the State of
California.
   (B) The creation of new businesses or the elimination of existing
businesses within the State of California.
   (C) The expansion of businesses currently doing business within
the State of California.
   (D) The benefits of the regulation to the health and welfare of
California residents, worker safety, and the state's environment.
   (2) This subdivision does not apply to the University of
California, the Hastings College of the Law, or the Fair Political
Practices Commission.
   (3) Information required from state agencies for the purpose of
completing the assessment may come from existing state publications.
   (c) (1) Each state agency proposing to adopt, amend, or repeal a
major regulation on or after November 1, 2013, shall prepare a
standardized regulatory impact  assessment  
analysis  in the manner prescribed by the Department of Finance
pursuant to Section 11346.36. The standardized regulatory impact
analysis shall address all of the following:
   (A) The creation or elimination of jobs within the state.
   (B) The creation of new businesses or the elimination of existing
businesses within the state.
   (C) The competitive advantages or disadvantages for businesses
currently doing business within the state.
   (D) The increase or decrease of investment in the state.
   (E) The incentives for innovation in products, materials, or
processes.
   (F) The benefits of the regulations, including, but not limited
to, benefits to the health, safety, and welfare of California
residents, worker safety, and the state's environment and quality of
life, among any other benefits identified by the agency.
   (2) This subdivision shall not apply to the University of
California, the Hastings College of the Law, or the Fair Political
Practices Commission.
   (3) Information required from state agencies for the purpose of
completing the  assessment   analysis  may
be derived from existing state, federal, or academic publications.
   (d) Any administrative regulation adopted on or after January 1,
1993, that requires a report shall not apply to businesses, unless
the state agency adopting the regulation makes a finding that it is
necessary for the health, safety, or welfare of the people of the
state that the regulation apply to businesses.
   (e) Analyses conducted pursuant to this section are intended to
provide agencies and the public with tools to determine whether the
regulatory proposal is an efficient and effective means of
implementing the policy decisions enacted in statute or by other
provisions of law in the least burdensome manner. Regulatory impact
analyses shall inform the agencies and the public of the economic
consequences of regulatory choices, not reassess statutory policy.
The baseline for the regulatory analysis shall be the most
cost-effective set of regulatory measures that are equally effective
in achieving the purpose of the regulation in a manner that ensures
full compliance with the authorizing statute or other law being
implemented or made specific by the proposed regulation.
   (f) Each state agency proposing to adopt, amend, or repeal a major
regulation on or after November 1, 2013, and that has prepared a
standardized regulatory impact  assessment  
analysis  pursuant to subdivision (c), shall submit that
 assessment   analysis  to the Department
of Finance upon completion. The department shall comment, within 30
days of receiving  such assessment   that
analysis  , on the extent to which the  assessment
  analysis  adheres to the regulations adopted
pursuant to Section 11346.36. Upon receiving the comments from the
department, the agency may update its analysis to reflect any
comments received from the department and shall summarize the
comments and the response of the agency along with a statement of the
results of the updated analysis for the statement required by
paragraph (10) of subdivision (a) of Section 11346.5.
  SEC. 3.  Article 5.5 (commencing with Section 65958) is added to
Chapter 4.5 of Division 1 of Title 7 of the Government Code, to read:


      Article 5.5.  Streamlined Permit Review


   65958.  The Legislature finds and declares as follows:
   (a) It is in the state's interest to assist those applicants
needing state permits or approvals by providing a consolidated,
unified, and coordinated state permit process whereby, upon request
by a permit applicant, agencies with lead and ancillary
responsibilities can be convened in a single process to coordinate
and expedite permit reviews and disposition of those permits.
   (b) Bipartisan legislation enacted in 2006 applicable to emergency
flood protection levee repairs, and in 2009 relating to "shovel
ready" transportation projects, ensured that there was coordination
and sequencing of approvals to reduce or eliminate delays and to
ensure that all key regulatory approvals were made.
   (c) It is the intent of the Legislature in enacting this article
to ensure that state agencies focus more directly on their duties as
prescribed by law so as to use scarce public dollars to more
efficiently implement the law, while achieving the same or greater
economic and public benefits, and to help ensure that state
government is working in a coordinated fashion to help get businesses
that create jobs a response so that they can proceed with that job
creation.
   65958.2.  (a) As used in this article, the term "permitting agency"
means any agency, department, office, board, or commission within
the Business, Transportation and Housing Agency, the California
Environmental Protection Agency, or the Natural Resources Agency.
   (b) The definitions contained in Article 2 (commencing with
Section 65925) shall also govern this article.
   65958.5.  (a) The Streamlined Permit Review Team is created in
state government, consisting of the following officials, one of whom
shall be designated as chairperson by the Governor:
   (1) The Secretary of Business, Transportation and Housing.
   (2) The Secretary for Environmental Protection.
   (3) The Secretary of the Natural Resources Agency.
   (b) Upon the request of a permit applicant, the team shall
convene, in a duly noticed public hearing, those permitting agencies
with jurisdiction over the project in question to coordinate actions
on permits, help reduce or eliminate unnecessary inconsistencies,
delay, duplication, overlap, or paperwork associated with issuance of
multiple permits, and assist in ensuring that permitting agencies
and the public have the information necessary to deem permit
applications complete and to act upon permits at the earliest
feasible date in accordance with the requirements of this chapter.
   (c) A permitting agency for a project, no later than 30 days after
receiving an application for a permit, shall determine the
completeness of an application in accordance with the requirements of
this chapter or request additional information necessary to
determine the completeness of an application. The project applicant
shall provide to the permitting agency the requested additional
information.
   (d) (1) A permitting agency for a project shall act on a permit as
soon as reasonably possible, but in any case no later than the time
permitted in accordance with the requirements of this chapter.
   (2) If a permitting agency fails to act on a complete permit
application for a project as soon as reasonably possible, but in any
case no later than the time permitted in accordance with the
requirements of this chapter, the failure to act shall be deemed
approval of the permit application for the project in accordance with
the requirements of this chapter. However, the permitting agency
shall provide public notice when the project is approved pursuant to
this paragraph, in the same form and manner as it would provide that
notice under existing law.
   (e) The time limits specified in this section may be extended upon
mutual written agreement of the lead agency and a permitting agency.

   (f) The time limits specified in this section shall not apply if
federal statutes, regulations, or delegation agreements establish
time schedules that differ from those time limits, and failure to
comply with federal time schedules could affect the disposition of
the project.
   (g) Except as otherwise provided by this section, this section
does not affect in any manner the requirements, duties, or authority
of a permitting agency established by statute.
   (h) Nothing in this chapter shall be construed to effect the
authority or requirement for an agency to adopt regulations as
provided by statute.
   65958.7.  (a) Except for the reporting requirement described in
subdivision (b), the provisions of this article shall become
inoperative on January 1, 2014.
   (b) On or before March 1, 2015, the Streamlined Permit Review Team
shall report to the Governor and to the Legislature on the number
and types of development projects for which the process established
by this article was used, and the disposition of those development
projects.
   (c)This article shall remain in effect only until March 15, 2015,
and as of that date is repealed, unless a later enacted statute, that
is enacted before March 15, 2015, deletes or extends that date.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to ensure that state agencies have clear direction on the
implementation of Chapter 496 of the Statutes of 2011, and to
streamline the state permit review process for development projects
at the earliest possible time, it is necessary that this bill take
effect immediately.