BILL ANALYSIS Ó
AB 1286
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Date of Hearing: May 20, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1286 (Mayes) - As Amended May 4, 2015
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|Policy |Jobs, Economic Development, |Vote:|9 - 0 |
|Committee: |and the Economy | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill establishes the California Regulatory Reform Council
(Council) to make reports and recommendations to the Legislature
and the Governor related to the structure, organization,
operation, and impact of all levels of state and local
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regulations on industries operating within the state. Repeals
the council on January 1, 2022. Specifically, this bill:
1)Establishes the 13 member council under the executive branch
for the purposes of expenditures for the support of the
council, including the expenses of the members of the council,
but specifies the council shall not be subject to the control
or direction of any officer or employee of the executive
branch, except in connection with the appropriation of funds
approved by the Legislature.
2)Specifies the functions and makeup of the board, including
five appointed by the Governor, two appointed by the Senate,
two appointed by the Assembly, two members of the Senate, two
members of the Assembly, to serve two-year terms without
compensation, except for travel. Requires members to be
appointed by March 1, 2016 and hold their first meeting by
April 1, 2016.
3)Requires, by January 1, 2017, the council to establish a
website and post the following: a list of its ongoing
activities; the agenda, list of individuals who testified, and
background materials distributed by the council for each
meeting; copies of final reports prepared by the council or on
behalf of the council. Requires all materials required to be
posted to remain accessible from the Internet Web site until
January 1, 2022.
FISCAL EFFECT:
General Fund administrative costs, likely in excess of $1
million, for seven positions, through January 1, 2022. This bill
creates a new council to provide recommendations on structure,
organization, operation, and impact of all levels of state and
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local regulations on "specific" industries operating within the
state. However, the "specific" industries are not identified.
The council will need staff to research thousands of
regulations, produce meeting agendas, facilitate meetings, and
draft a final report. Technical expertise will also be needed to
create, monitor and update a new website.
COMMENTS:
1)Purpose. This measure proposes the establishment of a Council
to provide additional review of selected regulations as to
their impact on specific industry sectors. The bill does not
define "specific" industry sectors.
2)Opposition. The California Labor Federation is opposed to this
bill, stating it would add unnecessary layers of bureaucracy
to a regulatory system that currently adequately meets the
needs of the public and the Legislature. They note the
exhaustive regulatory review process under the Administrative
Procedures Act and AB 617 (2011) which further requires a
rigorous economic impact analysis to be completed for
regulations with significant costs.
3)Related legislation.
a) AB 19 (Chang), pending in this committee, 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 1,
2016, primarily those affecting small businesses, to
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determine whether the regulations could be less
administratively burdensome or costly to affected sectors.
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.
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
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Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081