BILL ANALYSIS Ó
AB 12
Page 1
ASSEMBLY THIRD READING
AB 12 (Cooley)
As Amended May 24, 2013
Majority vote
ADMINISTRATIVE REVIEW 13-0
APPROPRIATIONS 17-0
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|Ayes:|Frazier, Achadjian, |Ayes:|Gatto, Harkey, Bigelow, |
| |Allen, Buchanan, Ian | |Bocanegra, Bradford, Ian |
| |Calderon, Cooley, Gorell, | |Calderon, Campos, |
| |Hagman, Holden, Medina, | |Donnelly, Eggman, Gomez, |
| |Olsen, Quirk-Silva, Salas | |Hall, Ammiano, Linder, |
| | | |Pan, Quirk, Wagner, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires the Department of Finance (DOF) and the
Office of Administrative Law (OAL) to 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 to include any recommendations improving
state agency performance and compliance.
2)Requires the OAL to post the report and notice of
noncompliance on their Internet Web site.
EXISTING LAW establishes the Administrative Procedure Act (APA)
to create 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 APA 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 OAL.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, costs associated with this legislation should be
minor and absorbable within existing DOF resources.
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COMMENTS : Current law requires DOF and OAL to review "from time
to time" the standardized regulatory impact analyses for
adherence to the regulations adopted by the state agency and
report to the Legislature. This report is required 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 analyses are
delivered to the Legislature.
This bill eliminates that uncertainty by requiring DOF and OAL
to annually review the standardized regulatory impact analyses
and report to the Legislature on or before November 1, 2015, and
annually thereafter, with DOF reviewing new analyses as they
come in each year.
Existing law also states OAL "may notify" the Legislature of
noncompliance of the regulations by a state agency. This gives
OAL the discretion to not notify the Legislature of
noncompliance by a state agency if it so chooses.
This bill eliminates that discretion by requiring OAL to 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 analyses. This bill also
requires the OAL to post the report and notice of noncompliance
on its Internet Web site.
SB 617 (Calderon), Chapter 496, Statutes of 2011, was enacted to
strengthen the economic impact reports required under the APA.
Specifically, SB 617 requires all state agencies that create,
modify, or repeal a major regulation with an economic impact of
$50 million or more to issue a standardized economic impact
report addressing the following:
1)The creation or elimination of new business.
2)The creation or elimination of jobs.
3)The competitive advantages or disadvantages to California
businesses.
4)The increase or decrease in investment in the state.
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5)The incentives for innovation in products, materials or
processes.
6)The benefits to the health, safety and welfare of
Californians.
Analysis Prepared by : William Herms / A. & A.R. / (916)
319-3600
FN: 0000859