BILL ANALYSIS                                                                                                                                                                                                    

                                                                      AB 12

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          Date of Hearing:  April 29, 2015


                                  Rudy Salas, Chair

          AB 12  
          (Cooley) - As Amended April 22, 2015

          SUBJECT:  State government:  administrative regulations:  review

          SUMMARY:  Requires state agencies and departments to review,  
          adopt, amend or repeal any applicable regulations that are  
          duplicative, overlapping, inconsistent, or out of date.   
          Specifically, this bill:

          1)Requires state agencies, on or before January 1, 2018, to  
            adopt, amend or repeal, using procedures provided in current  
            law, those regulations identified as duplicative, overlapping,  
            inconsistent or out of date.

          2)Requires state agencies to hold public hearings, notice on the  
            Internet and accept public comment, as specified.

          3)Requires state agencies to notify the appropriate policy and  
            fiscal committees of the Legislature of the proposed revisions  
            to regulations.


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          4)Requires state agencies to report to the Governor and the  
            Legislature the number and content of the regulations  
            identified as duplicative, overlapping, inconsistent or out of  

          5)Requires specified agencies to identify any existing  
            regulations of a department, board, or other unit within that  
            agency that are duplicative, overlapping or inconsistent with  
            regulations of other departments, boards or units within that  

          6)Requires the provisions of this bill remain in effect only  
            until January 1, 2019, unless later statute is enacted that  
            deletes or extends that date.

          EXISTING LAW:  

          1)Establishes, under the Administrative Procedure Act (APA),  
            basic minimum procedural requirements for the adoption,  
            amendment, or repeal of administrative regulations.

          2)Permits an agency, subject to the approval of the Office of  
            Administrative Law (OAL), to add to, revise or delete text  
            published in the California Code of Regulations (CCR) without  
            complying with the rulemaking procedures specified in the APA  
            only if the change does not materially alter any requirement,  
            right, responsibility, condition, prescription or other  
            regulatory element of any CCR provision.


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          FISCAL EFFECT:  Unknown

          COMMENTS:  In October of 2011, the Little Hoover Commission  
          (LHC) published a report titled, Better Regulation: Improving  
          California's Rulemaking Process.  The LHC included several  
          recommendations for improving the state's rulemaking process,  
          including that the state should establish a look-back mechanism  
          to determine if regulations are still needed and whether or not  
          they work.  

          The author's approach to this "look-back mechanism" is to create  
          a two-year window within which agencies, and the departments,  
          boards and other units within them, must review all regulations  
          that pertain to the mission and programs under their statutory  
          authority.  Upon completion of this review, the identified  
          regulations that are deemed to be duplicative, overlapping,  
          inconsistent or out of date may be repealed using the existing  
          processes already provided in the APA.  This bill also allows  
          for public hearings and comment and requires regulatory changes  
          be reported to the Legislature and the Governor.

          The provisions of this bill sunset on January 1, 2019, making  
          the regulatory review, as outlined in this bill, a one-time  
          application.  Under current law, any state agency may review,  
          adopt, amend or repeal any regulation within its statutory  
          authority at any time.  The OAL reports that as of December 26,  
          2014, (Register 2014, No. 52) the number of regulations adopted  
          totaled 67,176.  Of those, state agencies had repealed 14,319,  
          leaving 52,857 regulations still active.  This represents a  
          repeal rate of just over 21%.  


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          Whether this 21% regulatory repeal rate is robust enough remains  
          a question.  Both the LHC and the author believe more needs to  
          be done.  The author states, "?numerous economists and business  
          leaders agree that one of the greatest obstacles to California  
          job growth is the 'thicket' of government regulations that  
          constrain business owners."  The author's bill recognizes that  
          state agencies "may" review their regulatory framework at any  
          time, but specifies that state agencies "shall" review their  
          regulatory framework within the two-year timeframe as provided.   

          Finally, this bill contains language stating it is not meant to  
          weaken or undermine established statute, or to affect the  
          authority state agencies have to promulgate regulations.  A  
          January 1, 2019, sunset date will ensure no long-term changes to  
          current APA requirements.


          American Federation of State, County and Municipal Employees

          Associated Builders and Contractors of California

          Building Owners and Managers Association of California

          California Apartment Association


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          California Asian Pacific Chamber of Commerce

          California Association of Bed and Breakfast Inns

          California Building Industry Association

          California Business Properties Association

          California Business Roundtable

          California Chamber of Commerce

          California Construction and Industrial Materials Association

          California Hotel and Lodging Association

          California League of Food Processors

          California Manufacturers & Technology Association

          California Retailers Association

          Central Coast Forest Association

          Commercial Real Estate Development Association, NAIOP of Calif.


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          Consumer Specialty Products Association

          Industrial Environmental Association

          International Council of Shopping Centers

          National Federation of Independent Business/California

          Simi Valley Chamber of Commerce

          Small Business California 

          USANA Health Sciences, Inc.

          Western States Petroleum Association


          None on file

          Analysis Prepared by:William Herms / A. & A.R. / (916) 319-3600


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