BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 19


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          Date of Hearing:  May 20, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          19 (Chang) - As Amended May 6, 2015


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          |Policy       |Jobs, Economic Development,    |Vote:|8 - 0        |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the Governor's Office of Business and  
          Economic Development (GO-Biz), in consultation with the Office  
          of the Small Business Advocate, to establish a process for the  
          ongoing review of existing regulations adopted prior to January  








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          1, 2016, primarily those affecting small businesses, to  
          determine whether the regulations could be less administratively  
          burdensome or costly to affected sectors. Sunsets the provisions  
          of the bill January 1, 2021. Specifically, this bill:


          1)Requires GO-Biz to establish a process and timeline for review  
            of regulations, including a process for public input.  
            Following a public comment period, requires GO-Biz to  
            determine whether the regulation could be implemented through  
            an alternative method or methods, and requires GO-Biz to  
            provide recommendations to the affected agency and post the  
            same information on its Internet Web site.



          2)Requires GO-Biz to report to the Legislature and the Governor,  
            prior to January 1, 2021,  a listing of all regulations  
            reviewed, the results of each review including the alternative  
            implementation method or methods the office proposed, and a  
            description of the actions taken by the responsible agency. 
          FISCAL EFFECT:


          Ongoing annual General Fund administrative costs to GO-Biz of  
          approximately $214,000, through January 1, 2021, for two  
          positions to determine the scope of the review, develop and  
          produce materials for at least two annual public meetings,  
          review public input, compile and report data and post  
          information online.


          COMMENTS:


          1)Purpose. According to the author, this bill is an effort to  
            bring relief to the small business owners of California.  
            GO-Biz has already made efforts to aid small businesses with  
            the regulatory process. This legislation is intended to build  








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            on that effort. 

          2)Opposition. Several labor advocates, including the Teamsters,  
            oppose this bill stating concerns that the resources to  
            undertake a review of a majority of regulations adopted before  
            January 1, 2016, would be significant and that these resources  
            could be better spent elsewhere.  Another issue of concern is  
            GO-Biz' ability to review highly technical regulation and  
            determine whether there is a workable alternative.   

          3)Related legislation.

             a)   AB 1286 (Mayes), pending in this committee, establishes  
               the California Regulatory Reform Council (Council) for the  
               purpose of analyzing the holistic impact of all levels of  
               state and local regulations on specific industries  
               operating within the state. 
           
             b)   AB 2723 (Medina) of 2014 proposed a review of costs  
               associated with regulations on the small business be  
               considered when state agencies undertake their economic  
               impact assessment for major regulations. The Governor's  
               veto message of this bill is as follows:

                    This bill would require the economic analysis for  
                    major regulations to include a separate assessment of  
                    the impact on sole proprietorships and small  
                    businesses.  I signed legislation in 2011 to require a  
                    comprehensive economic analysis of proposed major  
                    regulations. The analysis must assess whether, and to  
                    what extent, the proposed regulations will affect all  
                    California jobs and businesses.  Agencies must also  
                    identify alternatives that would lessen any adverse  
                    impact on small businesses.  I am not convinced that  
                    an additional layer of specificity based solely on the  
                    legal structure of a business would add value to the  
                    comprehensive economic analysis already required.










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             c)   SB 617 (Calderon), Chapter 496, Statutes of 2011,  
               revises the state Administrative Procedure Act to require  
               each state agency adopting a major regulation to prepare an  
               economic impact analysis, and requires state agencies to  
               implement ongoing monitoring of internal auditing and  
               financial controls and other best practices in financial  
               accounting.  




          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081