BILL ANALYSIS Ó
AB 12
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Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 12 (Cooley) - As Amended: April 15, 2013
Policy Committee:
AccountabilityVote:13 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1)Requires the Department of Finance (DOF) and the Office of
Administrative Law (OAL) to annually review the standardized
regulatory impact analyses submitted by state agencies on the
impact of all major regulations to ensure that those analyses
adhere to the standardized format and requirements established
by Government Code Section 11346.36.
2)Requires DOF to provide a report to the Legislature regarding
whether agencies are following the law, and any
recommendations for improving state agency performance and
compliance.
3)Requires the OAL to post the report and notice of
noncompliance on the office's Internet Web site.
FISCAL EFFECT
1)On-going GF costs in excess of $250,000 for DOF to annually
review the standardized impact analyses that have been
submitted to date for all major regulations.
2)Minor and absorbable costs for OAL to post the reports and
notices of noncompliance on their Internet Web site.
COMMENTS
1)Purpose . Current law requires DOF and OAL to review the
standardized regulatory impact analyses for adherence to the
AB 12
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regulations adopted by the state agency and report to the
Legislature on or before November 1, 2015. In addition,
statute requires DOF and OAL to report occasionally on the
compliance of state agencies regarding standardized impact
analyses.
The author argues current statute creates uncertainty as to
when and how often subsequent reports reviewing the
standardized regulatory impact analyses 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.
Existing law also states OAL may notify the Legislature of
noncompliance by a state agency with the regulations, allowing
OAL discretion to not notify the Legislature of noncompliance
by a state agency if it so chooses. AB 12 eliminates that
discretion by requiring OAL to include in its annual report a
discussion of noncompliance and recommendations for improving
state agency performance and compliance in the creation of the
standardized regulatory impact analysis.
2)Standardized Regulatory Impact Analyses . SB 617 (Calderon),
Chapter 496, Statutes of 2011, established a standardized
regulatory impact analysis requirement for all major
regulations packages. Among other requirements, these analyses
need to include the benefits and costs of the proposed
regulation, expressed in monetary terms. They also must
include the value of non-monetary benefits, including public
health and safety, impact on the environment, prevention of
discrimination, and the promotion of fairness or social
equity. In addition, the analyses must include an assessment
of the cost of enforcement and compliance to the agency and to
affected businesses and individuals.
3)Clarification Needed . As drafted, it is unclear whether the
author expects DOF and OAL to review and re-review all
analyses each year and report on analyses from previous years
regulations, or if the intent is to have DOF and OAL analyze
and report on all new major regulations packages.
If the author's intent is simply a report on the adequacy of
any new impact analyses that have been submitted, that should
be clarified in the bill.
AB 12
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Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081