BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1868


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1868 (Wagner) - As Amended May 3, 2016


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          |Policy       |Accountability and             |Vote:|9 - 0        |
          |Committee:   |Administrative Review          |     |             |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the Office of Administrative Law (OAL) to  
          email a link to an Internet website of proposed regulatory  
          action (proposed action) to appropriate Senate and Assembly  
          policy committee secretaries, at least 45 days prior to the  
          hearing and close of the public comment period if the proposed  
          action includes an economic impact, cost impact, statement or  
          finding, as specified. 









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          FISCAL EFFECT:


          Ongoing costs to OAL of at least $85,000 (GF) for one staff  
          services analyst to perform the requirements of the bill.  This  
          includes transmitting a copy of each weekly Notice Register to  
          the appropriate committee secretary concerning each notice of  
          proposed action published in the Notice Register, and making the  
          determination as to the "appropriate" Senate and Assembly policy  
          committee, sending the information to the correct secretaries'  
          electronic email and responding to questions/concerns regarding  
          the information in the Notice Register. In 2015, OAL received  
          over 400 notices of proposed actions.


          COMMENTS:


          1)Purpose. According to the author, "This bill would ensure that  
            the executive branch is kept in check, as it enforces the laws  
            that the Legislature creates, and would bring the Legislature  
            into its proper role of oversight of the executive branch." 


          2)Background. The Administrative Procedures Act (APA) requires  
            the Office of Administrative Law to ensure that state agency  
            regulations are clear, necessary, legally valid, and available  
            to the public.  In seeking adoption of a proposed regulation,  
            state agencies must comply with procedural requirements that  
            include publishing the proposed regulation along with a  
            supporting statement of reasons, mailing and publishing a  
            notice of the proposed action 45 days before a hearing and  
            before the close of the public comment period, and submitting  
            a final statement to OAL that summarizes and responds to all  
            objections, recommendations and proposed alternatives raised  
            during the public comment period.  The OAL is then required to  
            approve or reject the proposed regulation within 30 days.
            This bill, in addition to the existing notification  








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            requirements, requires OAL to submit notices to Senate and  
            Assembly policy committee secretaries. As noted above, in  
            2015, OAL received over 400 notices of proposed actions. 


          3)Necessary? Proposed actions are already available publicly and  
            mechanisms exist for those interested in receiving them to do  
            so under current law. Individuals, including Legislators, with  
            an interest in a particular area can sign up to receive  
            proposed actions in one or more programs of a state agency.  
            Additionally, agencies are required to provide these documents  
            to representatives of affected groups and publish them in the  
            California Regulatory Notice Register (Register).  The OAL  
            publishes the Register on its website every Friday. The  
            Committee may wish to consider whether another avenue of  
            communication is necessary and justified. 


          4)Prior Legislation.  


          


             a)   AB 797 (Steinorth), 2015, would have required 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. It passed off the Assembly Floor but was never  
               heard in the Senate.



             b)   AB 12 (Cooley), 2015, would have required 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 departments would have  








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               been required to notify the appropriate policy and fiscal  
               committees of the Legislature of the proposed revisions and  
               report to the Governor and the Legislature. It was held on  
               the Senate Appropriations Committee's Suspense file.
          





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