BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1648


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1648 (Wilk) - As Amended March 15, 2016


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          |Policy       |Accountability and             |Vote:|8 - 0        |
          |Committee:   |Administrative Review          |     |             |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill expands the definition of "state publication" to  
          include publications issued by the state on the internet and  
          allows a member of the public to copy, share, distribute, or  
          republish a state publication authored by the state.  


           FISCAL EFFECT:










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          1)Estimated one-time information technology costs of  
            approximately $975,000 (GF) to make the California Regulatory  
            Notice Register (Register) available in a web-based searchable  
            format. Additional ongoing IT support costs of approximately  
            $410,000 dollars annually (Gf), to update the codes weekly and  
            maintain the site.

          2)On-going loss of up to $570,000 (GF) in forgone revenue from  
            the renegotiation or loss of the California Code of  
            Regulations (CCR) service contract with West Publishing  
            Corporation (West).

          3)Unknown, but likely significant costs (GF) associated with  
            finding a new publisher for the CCR that is willing to provide  
            100 free copies to depository libraries (as required under  
            existing law) and that is willing to maintain the CCR on the  
            internet free of charge.

          COMMENTS:


          1)Purpose. This bill seeks to include publications that are  
            issued by the state on the internet within the definition of  
            "state publication."  The bill would also allow any member of  
            the public to copy or republish this material.  The author  
            states that, "any practice that at all limits the public's  
            access to public documents should not be tolerated."  The  
            author cites specifically the current contract involving the  
            CCR.



          2)Background.   Existing law requires the Office of  
            Administrative Law (OAL) to provide the full text of the CCR,  
            including an index of links to the full text of each  
            regulation, and on a weekly basis, to post a copy of the  
            Register and links to regulations proposed by state agencies,  
            on its Website, free of charge. OAL may contract with another  
            state agency or a private entity in order to provide this  








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            service. 

            While this bill applies statewide, it raises a particular  
            issue with the CCR because OAL contracts with a private entity  
            to provide the required public access to the CCR. Based on the  
            copyright held by the State of California of the CCR,  
            compensation for the service provided by the private entity  
            comes from the ability of this entity to charge individuals,  
            businesses and others for ancillary services, including  
            enhanced search functions and notifications of changes or  
            additions to the regulations. The state expects approximately  
            $570,000 in 2016 from this contract. 


            Pursuant to the terms of the current contract, effective  
            January 1, 2016, West pays the state $350,000 annually, plus  
            8.1% royalties per year, for the privilege of publishing the  
            Register and CCR and providing a few related services. The  
            contract includes a provision specifying that if there are  
            changes to California law that alter the publication services  
            and lead to increased costs to the contractor (West), an  
            equitable adjustment to the compensation must be negotiated. 





          3)Prior Legislation:  



             a)   AB 1612 (Donnelly) of 2014, in its original form, would  
               have required the OAL to provide the "greatest feasible  
               access" to the CCR. In its final form, it prohibited OAL  
               from charging users with disabilities a fee for access to  
               the free online CCR.  The bill was vetoed by the Governor,  
               who stated it was unnecessary because any problems with  
               accessibility can be quickly corrected by the OAL.









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             b)   SB 1091 (Galgiani, 2014) among other provisions,  
               requires OAL to make the Register available in an  
               electronically searchable Web based format by January 1,  
               2017, and include the ability for interested parties to  
               subscribe to an email notification of the Register and  
               specific notices. This bill was held on the Senate  
               Appropriations Suspense File.
           





          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081