BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1822
                                                                  Page  1

          Date of Hearing:  March 28, 2000

               ASSEMBLY COMMITTEE ON CONSUMER PROTECTION, GOVERNMENTAL  
                        EFFICIENCY, AND ECONOMIC DEVELOPMENT 
                                 Susan Davis, Chair
                    AB 1822 (Wayne) - As Amended:  March 13, 2000
           
          SUBJECT  :  Administrative Procedure Act.

           SUMMARY  :  Makes numerous modifications to the Administrative  
          Procedure Act intended to clarify state rulemaking provisions.   
          Specifically,  this bill  :  

          1)Allows for the use of electronic communications to deliver and  
            publish rulemaking documents and notice statements, so long as  
            electronic communication is not the only means used to publish  
            or distribute the information.

          2)Authorizes state agencies to consult with interested parties  
            prior to the commencement of a regulatory action.

          3)Substitutes "believes" for "determines" such that preliminary  
            determinations made by state agencies may be made based on the  
            agency's belief.

          4)Modifies numerous provisions relating to rulemaking  
            procedures, including the specification of findings, use of  
            plain English, necessity of requiring oral testimony, and the  
            handling of repetitive or irrelevant comments.

          5)Modifies provisions relating to the content and availability  
            of the rulemaking file, as well as ensuring that certain  
            rulemaking requirements apply to the proposed repeal of a  
            regulation in addition to the adoption or amendment of a  
            regulation.

          6)Creates exceptions to rulemaking requirements for the  
            establishment of criteria or guidelines used by state agency  
            staff in performing an examination, inspection, investigation  
            or audit, among other situations, as specified.

          7)Modifies provisions relating to the requirement that a state  
            agency demonstrate the necessity of a proposed regulation, as  
            specified.









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          8)Modifies time frames relating to emergency regulations such  
            that they may be valid for 180 days and require 30 working  
            days before they may be made permanent.  Additionally states  
            that agencies shall not adopt emergency regulations that are  
            substantially equivalent to previous emergency regulations  
            adopted by that agency, as specified.

          9)Expands judicial review to include an order of repeal of a  
            regulation as well as the establishment of the regulation, as  
            specified.

          10)Requires state agencies to notify the Office of  
            Administrative Law (OAL) when they choose not to proceed with  
            a proposed action, as specified.

          11)Changes the name of the California Regulatory Code Supplement  
            to the California Code of Regulations Supplement.

          12)Modifies the format required for submission of State Water  
            Resources Control Board policies, plans and guidelines to OAL,  
            as specified.

           EXISTING LAW  details the requirements that regulations must  
          adhere to prior to their adoptions.  These requirements include  
          public comment periods on proposed regulations, review periods,  
          publication requirements, and implementation procedures.  OAL is  
          the entity in state government that generally oversees the  
          adoption of regulations.

           FISCAL EFFECT  :  Possible minor savings to state agencies to the  
          extent that the regulatory process is made more clear and  
          efficient and requires fewer staff resources.

           COMMENTS  :   

           1)Intent of Bill  

            According to the sponsor of the bill, the California Law  
            Revision Commission (CLRC), AB 1822 is the product of a  
            lengthy study conducted by the CLRC at the direction of the  
            Legislature.  The CLRC worked with state agencies and  
            representatives of the private sector to develop the proposals  
            in the bill.  These proposals are intended to meet three major  
            objectives: a) adding useful provisions reflecting the  
            increase of e-mail and Internet communication, b) resolving  








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            existing ambiguities to clarify the regulatory process, and c)  
            ratifying existing common-sense Administrative Procedure Act  
            provisions.  

           2)Bill's Use of "Believes" in Place of "Determines" and "Finds"  
            Should be Explained, Clarified  

            Numerous provisions of the bill substitute the word "believes"  
            for the word "determines" when explaining agency-proposed  
            administrative regulations.  For example, where current law  
            states that "If a state agency, in proposing to adopt or amend  
            any administrative regulation, determines that the action may  
            have a significant adverse economic impact on business,?", AB  
            1822 restates that provision to read "If a state agency, in  
            proposing to adopt, amend, or repeal any administrative  
            regulation, believes that the action may have a significant  
            adverse economic impact on business,?".

            The author and sponsor should explain how they came to  
            substitute the word "believes" for the word "determines"  
            throughout portions of the bill.  

           3)Should Bill Include More Explicit Provisions Relating to Small  
            Business  ?

            The bill generally seeks to make things easier for small  
            businesses to understand and participate in the regulatory  
            process if desired.  The author and sponsor should explain  
            what additional steps, if any, were considered in the course  
            of the study to increase small business participation in the  
            regulatory process, for example increasing requirements that  
            public meetings be held at times where concerned individuals  
            and/or businesses may participate.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support  

          California Law Revision Commission (sponsor)

           Opposition 

          None on file

           








                                                                 AB 1822
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          Analysis Prepared by  :  Robert Herrell / C.P., G.E. & E.D. /  
          (916) 319-2089