BILL ANALYSIS Ó
AB 12
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Date of Hearing: April 3, 2013
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Jim Frazier, Chair
AB 12 (Cooley) - As Introduced: December 3, 2012
SUBJECT : State government: Administrative Procedure Act:
standardized regulatory impact analyses.
SUMMARY : Requires the Department of Finance (DOF) and the
Office of Administrative Law (OAL) annually review the
standardized regulatory impact analyses for adherence to the
regulations adopted by a state agency and report to the
Legislature.
Additionally, this bill:
1)Requires the report include any recommendations improving
state agency performance and compliance.
2)Requires the OAL post the report and notice of noncompliance
on the office's Internet Web site.
EXISTING LAW established the Administrative Procedure Act
creating a public process by which those persons or entities
affected by a regulation have a voice in its creation as well as
notice of the law's new requirements. The Act establishes a
specific process for state agencies including assessing the cost
of the regulations, providing for public notice of proposed
regulations, an opportunity for interested parties to comment,
and with some exceptions, review by the Office of Administrative
Law.
FISCAL EFFECT : unknown
COMMENTS : Current law requires DOF and OAL "from time to time"
review the standardized regulatory impact analyses for adherence
to the regulations adopted by the state agency and report to the
Legislature. Statute requires this report to be delivered on or
before November 1, 2015. This language creates uncertainty as to
when and how often subsequent reports reviewing the standardized
regulatory impact analysis are delivered to the Legislature.
This bill eliminates that uncertainty by requiring DOF and OAL
annually review the standardized regulatory impact analyses and
report to the Legislature.
AB 12
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Existing law also states OAL "may notify" the Legislature of
noncompliance by a state agency with the regulations. This
language allows OAL discretion to not notify the Legislature of
noncompliance by a state agency if it so chooses.
This bill eliminates that discretion by requiring OAL include in
its annual report a discussion of noncompliance and any
recommendations the Legislature might consider for improving
state agency performance and compliance in the creation of the
standardized regulatory impact analysis.
This bill requires the OAL post the report and notice of
noncompliance on the office's Internet Web site.
Previous legislation: SB 617 (chapter 496, statutes of 2011) was
enacted to strengthen the economic impact reports required under
the APA. SB 617 requires all state agencies that create, modify,
or repeal a major regulation with an economic impact of $50
million dollars or more to issue a standardized economic impact
report addressing:
1)The creation or elimination of new business.
2)The creation or elimination of jobs.
3)The competitive advantages or disadvantages to California
business.
4)The increase or decrease in investment in the state.
5)The incentives for innovation in products, materials or
processes.
6)The benefits to the health, safety and welfare of
Californians.
Committee staff recommendations: The author may wish to consider
the following amendments:
1)Clarify the annual reporting date by specifying November 1,
2015 and annually thereafter.
2)Changes in committee jurisdiction in the Assembly place issues
dealing with the Administrative Procedure Act under the
Accountability and Administrative Review Committee. In the
section dealing with where the OAL report is delivered, remove
the Assembly Committee on Governmental Organization and
substitute the Assembly Committee on Accountability and
Administrative Review.
AB 12
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REGISTERED SUPPORT / OPPOSITION :
Support
Alliance of Automobile Manufacturers
American Council of Engineering Companies of California
California Asian Pacific Chamber of Commerce
California Association of Health Facilities
California Business Properties Association
California Chamber of Commerce
California Construction and Industrial Materials Association
California Hotel and Lodging Association
California Independent Oil Marketers Association
California Manufacturers and Technology Association
California Retailers Association
California Service Station and Automotive Repair Association
California Trucking Association
Chemical Industry Council of California
Consumer Specialty Products Association
Golden State Builders Exchanges
Industrial Environmental Association
National Aerosol Association
United Contractors
Western States Petroleum Association
Opposition
None on file
Analysis Prepared by : William Herms / A. & A.R. / (916)
319-3600