BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 401|
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THIRD READING
Bill No: SB 401
Author: Hueso (D)
Amended: 4/8/13
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 11-0, 4/30/13
AYES: DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,
Lara, Liu, Pavley, Roth, Wyland
SENATE APPROPRIATIONS COMMITTEE : 6-0, 5/20/13
AYES: De Le�n, Walters, Gaines, Hill, Padilla, Steinberg
NO VOTE RECORDED: Lara
SUBJECT : Administrative practices
SOURCE : Author
DIGEST : This bill requires any state entity proposing
amendments to non-residential model building codes, and when
requested for new standards within the model codes, to estimate
the cost of compliance and the potential benefits of the new
standard as well as disclose the assumptions used to determine
the estimates.
ANALYSIS : The California Building Standards Law establishes
the California Building Standards Commission (BSC) and the
process for adopting state building standards. Under this
process, state agencies propose building standards for building
types under their jurisdiction. For example, the Department of
Housing and Community Development is the relevant state agency
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for residential building standards. The Office of Statewide
Health Planning and Development is responsible for hospitals and
clinics, and the Division of the State Architect is the relevant
agency for schools and emergency service buildings. In
addition, the California Energy Commission develops building
standards relating to energy efficiency for all occupancies.
State agencies begin with a model code developed by a national
code-writing entity. They then propose amendments to the model
codes to reflect California needs and priorities and submit to
the BSC the amended model codes. The BSC must then adopt,
modify, or reject the proposed building standards.
Building standards qualify as regulations. Therefore, the
adoption of building standards is subject to the Administrative
Procedures Act, which establishes the general process for the
adoption of regulations. As part of the Act, an entity
proposing new or amended regulations must prepare and submit to
the Office of Administrative Law a notice of the proposed action
and an initial statement of reasons (ISOR) for proposing the
change in regulation. Among other things, the ISOR must include
a statement of the specific purpose for each change, the problem
the agency intends to address, and the rationale for why the
change is reasonably necessary to carry out the purpose and
address the problem for which it is proposed. The ISOR must
also enumerate the benefits anticipated from the regulatory
action, both monetary and non-monetary, and include evidence to
support an initial determination that the change may have or
will not have a significant, statewide adverse impact directly
affecting business.
The notice of proposed action that accompanies the ISOR must
include, among other things, a statement of whether or not the
changes would have a significant effect on housing costs and,
separately, a description of all cost impacts known to the
agency that a representative private person or business would
necessarily incur in reasonable compliance with the proposed
action. If the agency is unaware of cost impacts on private
persons or businesses, it may state that instead.
AB 1612 (Lara, Chapter 471, Statutes of 2012), requires the ISOR
for any California amendment to a model building code that
impacts housing to include the estimated cost of compliance, the
estimated potential benefits, and the related assumptions used
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to determine the estimates. For changes in the model codes
themselves, AB 1612 requires the ISOR to include the estimated
cost of compliance, the estimated potential benefits, and the
related assumptions used to determine the estimates for that
specific change only if an interested party has made a request
to the agency to examine that specific section. No longer may a
state agency developing building standards that relate to
housing state that changes to the standards do not have a
significant effect on housing costs without publicly
substantiating that determination with cost data.
This bill:
1.Applies the AB 1612 ISOR rules to any building standard, not
just a building standard that impacts housing.
2.Requires any state entity proposing building codes to include
in the ISOR the estimated cost of compliance, the estimated
potential benefits, and the related assumptions used to
determine the estimates for any California amendment to a
model building code.
3.Requires a state entity include in the ISOR the estimated cost
of compliance, the estimated potential benefits, and the
related assumptions used to determine the estimates for any
change in the model codes themselves if an interested party
has made a request to the agency to examine that specific
section.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Potential costs to the BSC of up to $89,000 annually for
estimating impacts and underlying assumptions for all
building standards, and for sections of the model codes upon
request (Building Standards Administration Special Revolving
Fund).
Minor costs to other state agencies who propose building
standards regulations (General Fund, various special funds).
SUPPORT : (Verified 5/21/13)
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American Council of Engineering Companies - California
Building Owners and Managers Association of California
California Apartment Association
California Association of Realtors
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
Commercial Real Estate Development Association - National
Association of Industrial And Office Properties of California
International Council of Shopping Centers
ARGUMENTS IN SUPPORT : According to the author's office, it is
critical to consider the impacts of changes in state building
standards on all businesses, not just on the residential
construction industry. If an agency is able to make the
determination that a new standard will have no significant
impact on business, it should know what the proposed standard
will cost. This bill creates parity between residential and
non-residential building standards.
JA:nk 5/21/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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