BILL NUMBER: AB 1219	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Morrell

                        FEBRUARY 22, 2013

   An act to amend Section 11346.3 of the Government Code, relating
to regulations.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1219, as introduced, Morrell. Administrative Procedure Act:
adverse economic impact.
   Existing law, 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. Existing law requires the agency to
assess the potential for adverse economic impact on California
business enterprises and individuals, as specified.
   This bill would make technical, nonsubstantive changes to this
provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  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   requires  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  
by  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.