BILL ANALYSIS Ó AB 12 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 12 (Cooley) - As Amended April 22, 2015 ----------------------------------------------------------------- |Policy |Accountability and |Vote:|9 - 0 | |Committee: |Administrative Review | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires state agencies and departments to review, adopt, amend or repeal any applicable regulations that are duplicative, overlapping, inconsistent, or out of date by January 1, 2018. As part of this process, state agencies and AB 12 Page 2 departments must hold at least one noticed public hearing, and accept public comment on proposed revisions, notify the appropriate policy and fiscal committees of the Legislature of the proposed revisions, and report to the Governor and the Legislature. The bill contains a January 1, 2019 sunset date. FISCAL EFFECT: 1)Annual costs (for two years) to the Office of Administrative Law (OAL) of approximately $695,000 (GF) for seven additional positions (five attorneys, one legal analyst, and one office technician) and additional rent and supplies, to accommodate the additional workload within the two-year timeframe. 2)One-time costs of approximately $50,000 (GF) to OAL for office equipment associated with the additional staff. 3)Unknown, but potentially significant costs to state agencies to review and revise, as necessary, all existing regulations. Departments with a large number of regulations may require additional staff, managerial oversight, and administrative support to accommodate the increased workload, public hearings, and reporting requirements. There are currently over 200 state agencies and departments with nearly 53,000 active regulations. COMMENTS: 1)Purpose. The author states, "?numerous economists and business leaders agree that one of the greatest obstacles to California AB 12 Page 3 job growth is the 'thicket' of government regulations that constrain business owners." 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, the number of regulations adopted totaled 67,176. Of those, state agencies had repealed 14,319, or approximately 21%. With 52,857 regulations still active, the author believes more needs to be done. This bill requires state agencies to review their regulatory framework within a two-year timeframe. 2)Background. 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 the state establishing a look-back mechanism to determine if regulations are effective and still needed. 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 Administrative Procedures Act (APA). 3)Related Legislation. AB 797 (Steinorth), pending referral in the Senate, requires a copy of each major regulation submitted to the Secretary of State (SOS) by the Office of Administrative Law (OAL) to also be submitted to the appropriate Legislative policy committees responsible for the subject matter of the regulation for review. AB 12 Page 4 Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081