BILL ANALYSIS Ó SB 401 Page 1 Date of Hearing: August 14, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 401 (Hueso) - As Amended: April 8, 2013 Policy Committee: AccountabilityVote:10 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires the initial statement of reasons for building standards regulations proposed by state agencies to include the estimated cost of compliance, the estimated potential benefits, and the assumptions used to determine these estimates. FISCAL EFFECT 1)Moderate costs, likely of less than $100,000 per year, for the Building Standards Commission to estimate the impacts and underlying cost assumptions related to all new building standards, and for model codes upon request (Building Standards Administration Fund). 2)Minor costs for state agencies that propose building standards regulations. COMMENTS 1)Purpose . SB 401 would require state agencies, when adopting any building standards regulations, to disclose specified information on the costs of compliance, potential benefits of the regulation, and related assumptions used to perform the economic analysis. This bill subjects the process for promulgating regulations for non-residential building standards to the same requirements as those used for residential building standards. According to the author, it is critical to consider the impacts of changes in state building standards on all businesses, not just on the residential construction industry. SB 401 Page 2 2)Related Legislation . AB 1612 (Lara; Chapter 471, Statutes of 2012) required state agencies adopting building standards that impact housing to include estimated benefits and costs of compliance, as well as underlying assumptions, in an initial statement of reasons. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081