BILL ANALYSIS                                                                                                                                                                                                    

                                                                      AB 12

                                                                    Page  1

          Date of Hearing:  May 13, 2015


                                 Jimmy Gomez, Chair

          12 (Cooley) - As Amended April 22, 2015

          |Policy       |Accountability and             |Vote:|9 - 0        |
          |Committee:   |Administrative Review          |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |

          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          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          duplicative, overlapping, inconsistent, or out of date by  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  


          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)