BILL NUMBER: SB 1520	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 31, 2012
	PASSED THE ASSEMBLY  AUGUST 27, 2012
	AMENDED IN ASSEMBLY  AUGUST 23, 2012
	AMENDED IN ASSEMBLY  AUGUST 20, 2012
	AMENDED IN SENATE  MAY 30, 2012
	AMENDED IN SENATE  MAY 22, 2012

INTRODUCED BY   Senator Calderon

                        FEBRUARY 24, 2012

   An act to amend Sections 11346.2 and 11346.3 of the Government
Code, relating to state government, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1520, 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) This bill would incorporate additional changes in Section
11346.2 of the Government Code, proposed by AB 1612, to be operative
only if AB 1612 and this bill are chaptered and become effective on
or before January 1, 2013, and this bill is chaptered last.
   (3) This bill would declare that it is to take effect immediately
as an urgency statute.


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 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 California
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. 1.5.  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 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) (A) 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.
   (B) (i) If a proposed regulation that is a building standard
impacts housing, the initial statement of reasons shall include the
estimated cost of compliance, the estimated potential benefits, and
the related assumptions used to determine the estimates.
   (ii) The model codes adopted pursuant to Section 18928 of the
Health and Safety Code shall be exempt from the requirements of this
subparagraph. However, if an interested party has made a request in
writing to the agency, at least 30 days before the submittal of the
initial statement of reasons, to examine a specific section for
purposes of estimating the cost of compliance and the potential
benefits for that section, and including the related assumptions used
to determine the estimates, then the agency shall comply with the
requirements of this subparagraph with regard to that requested
section.
   (7) A department, board, or commission within the California
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 assessment 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 assessment
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 assessment that assesses whether and to what extent
it will affect 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 expansion of businesses currently doing business within
the state.
   (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 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 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 analysis pursuant to subdivision (c),
shall submit that analysis to the Department of Finance upon
completion. The department shall comment, within 30 days of receiving
that analysis, on the extent to which the 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.  Section 1.5 of this bill incorporates amendments to
Section 11346.2 of the Government Code, as amended by Section 2 of
Chapter 496 of the Statutes of 2011, proposed by both this bill and
Assembly Bill 1612. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2013, but
this bill becomes operative first, (2) each bill amends Section
11346.2 of the Government Code, as amended by Section 2 of Chapter
496 of the Statutes of 2011, and (3) this bill is enacted after
Assembly Bill 1612, in which case Section 11346.2 of the Government
Code, as amended by Section 2 of Chapter 496 of the Statutes of 2011,
and as amended by Section 1 of this bill, shall remain operative
only until the operative date of Assembly Bill 1612, at which time
Section 1.5 of this bill shall become operative.
  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.