BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1711|
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CONSENT
Bill No: AB 1711
Author: Cooley (D)
Amended: 4/3/14 in Assembly
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 8-0, 6/10/14
AYES: Correa, Cannella, De León, Galgiani, Hernandez, Padilla,
Torres, Vidak
NO VOTE RECORDED: Berryhill, Lieu, Vacancy
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 6-0, 6/25/14
AYES: Hill, Gaines, Hancock, Jackson, Leno, Pavley
NO VOTE RECORDED: Fuller
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 75-0, 4/24/14 (Consent) - See last page for
vote
SUBJECT : Administrative Procedures Act: economic impact
assessment
SOURCE : Office of Administrative Law
DIGEST : This bill requires an economic impact assessment
(EIA) to be included in the Initial Statement of Reasons (ISOR)
that a state agency submits to the Office of Administrative Law
(OAL) when adopting, amending, or repealing a non-major
regulation.
CONTINUED
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ANALYSIS :
Existing law:
1.Governs, under the Administrative Procedure Act, the
procedures for the adoption, amendment, or repeal of
regulations by state agencies and for the review of those
regulatory actions by OAL.
2.Requires each state agency to prepare a standardized
regulatory impact analysis, as specified, with respect to the
adoption, amendment, or repeal of a "major regulation," as
defined, that is proposed on or after November 1, 2013.
3.Defines a "major regulation" to mean any proposed adoption,
amendment, or repeal of a regulation that will have an
economic impact on California business enterprises and
individuals in an amount exceeding $50 million, as estimated
by the agency.
4.Requires the Department of Finance (DOF) and OAL to
periodically review the standardized regulatory impact
analyses for adherence to regulations adopted by DOF.
This bill:
1.Requires a state agency to include an EIA in the ISOR that is
submitted to OAL when adopting, amending, or repealing a
non-major regulation.
2.Directs DOF to adopt and update, as necessary, instructions
prescribing the methods that an agency must use in preparing
the EIA, and include those instructions in the State
Administrative Manual.
Background
Balanced assessment . The purpose of an ISOR is to articulate
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 ISOR shall enumerate the benefits anticipated from the
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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.
The standardized regulation impact assessment for major
regulations or the EIA for non-major regulations considers the
economic impact as well as the benefit of the proposed
regulation and is intended to be a part of the overall and
holistic analysis of the benefit and costs of a proposed
regulatory package. For major regulations the statute specifies
that the standardized regulation impact analysis shall be part
of the ISOR. This bill specifies that the EIA shall be a part
of ISOR for non-major regulations.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/8/14)
Office of Administrative Law (source)
National Federation of Independent Business
State Farm Mutual Automobile Insurance Company
ARGUMENTS IN SUPPORT : According to the author's office, a
state agency that proposes a rulemaking action affecting only
non-major regulations (less than $50 million impact) is required
to prepare an EIA for purposes of assessing the potential
adverse economic impact of the proposed regulations. Currently,
the Administrative Procedure Act does not establish when the EIA
for non-major regulations is to be prepared and made available
to the public for comment. This bill resolves this issue by
ensuring that the EIA for non-major regulations is included in
the initial regulatory notice document, thereby making the
statement available to the public for comment at the onset of
the rulemaking process when it can be most useful.
ASSEMBLY FLOOR : 75-0, 4/24/14
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
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Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Grove, Hagman, Hall, Roger Hernández, Holden, Jones,
Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,
Medina, Melendez, Mullin, Muratsuchi, Nestande, Olsen, Pan,
Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.
Pérez
NO VOTE RECORDED: Gray, Harkey, Mansoor, Nazarian, Vacancy
MW:nl 8/12/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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