BILL ANALYSIS
AB 1833
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Date of Hearing: April 6, 2010
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Mary Hayashi, Chair
AB 1833 (Logue) - As Introduced: February 12, 2010
SUBJECT : Regulations: economic impact analysis.
SUMMARY : Requires the California Environmental Protection
Agency (CalEPA), the Division of Occupational Safety and Health
(DOSH) and the State Air Resources Board (ARB) to complete an
economic impact analysis (analysis) prior to adopting, amending,
or repealing an administrative regulation. Specifically, this
bill :
1)Requires CalEPA, DOSH, and ARB, prior to adopting, amending,
or repealing an administrative regulation to complete an
analysis of that action prior to doing so.
2)Requires the analysis to include the following:
a) The projected cost of the action to the General Fund;
b) The projected total economic impact of the action, including
the cost to small business and the estimated number of jobs
to be lost as a result of the action;
c) A description of all feasible regulatory alternatives and a
cost-benefit analysis of each alternative; and,
d) A summary of the written criticisms of the proposed action
received a reasonable time prior to the publication of the
written analysis, including letters, memoranda, reports,
and written allegations, of which the agency has knowledge,
that the action is discriminatory, unfair, unclear,
inconsistent with statue, or beyond the authority of the
agency to enact.
3)Requires CalEPA, DOSH, and ARB to post the analysis on its
Internet Web site.
4)States legislative findings and declarations.
EXISTING LAW establishes requirements for the adoption,
publication, review, and implementation of regulations by state
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agencies, under the Administrative Procedure Act (APA).
FISCAL EFFECT : Unknown
COMMENTS : According to the author's office, "CalEPA, DOSH, and
ARB are currently required to complete an economic impact
analysis before they may promulgate a new regulation. However,
these analyses outline only the cost to implement the regulation
and not the financial impact to businesses who must comply with
this new rule. This bill changes that. AB 1833 expands the
scope of the economic analysis to include the potential harm to
businesses.
"There is overwhelming evidence that businesses are leaving the
state in droves. California's economy is bleeding, and we must
directly address the problem rather than continuing to treat the
symptoms. The goal of this bill is to address concerns that the
author's office received from countless businesses in its effort
to bring jobs back to California. The overriding concern of
businesses in California and those who have already left the
state is overregulation and the associated costs of complying."
Background . The APA governs the adoption of regulations by
state agencies for purposes of ensuring that they 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 supporting statement of reasons;
mailing and publishing a notice of the proposed action 45 days
before a hearing or before the close of the public comment
period; and submitting a final statement to Office of
Administrative Law (OAL) which summarizes and responds to all
objections, recommendations, and proposed alternatives that were
raised during the public comment period. The OAL is then
required to approve or reject the proposed regulation within 30
days.
More specifically, the APA requires state agencies proposing to
adopt, amend, or repeal any administrative regulation to assess
the potential for adverse economic impact on California business
enterprises and individuals, and avoiding the imposition of
unnecessary or unreasonable regulations. Agencies are required
to consider the proposal's impact on business, with
consideration of industries affected including the ability of
California businesses to compete with businesses in other
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states. Additionally, agencies are required to assess whether
and to what extent the proposed regulation change will affect
the creation or elimination of jobs, the creation of new
businesses or the elimination of existing businesses, and the
expansion of businesses currently doing business within
California. The APA does not differentiate between large and
small businesses in its requirements.
This bill requires CalEPA, DOSHA, and ARB to complete an
analysis, specific to small businesses. These requirements are
already required under existing law for all businesses
regardless of size.
Support . The Engineering & Utility Contracts Association writes
in support, "California's economy is struggling due to onerous
and duplicative regulations. With state unemployment at 12.4%
and construction unemployment as high as 30%, it is important
that California reduce barriers to business in the
state?California businesses often site the state's regulatory
burden as a factor for poor economic performance, yet there is
no agreement on which regulations are the most damaging. This
bill would provide objective information needed to identify
which regulations are hampering job growth and the economy."
Previous legislation . AB 2118 (Villines) of 2008 prohibited
state agencies from adopting regulations requiring the use of a
specific technology unless it has been operational and proven
effective for more than two years, or would place an undue
burden on business on an annual basis and result in a
significant loss of jobs. The bill was held in the Assembly
Business and Professions Committee.
Double referred . This bill is double-referred to Assembly
Natural Resources Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
American Council of Engineering Companies of California
Associated Builder and Contractors of California
Automotive Aftermarket Industry Association
California Aerospace Technology Association
California Automotive Wholesalers' Association
California Business Properties Association
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California Chamber of Commerce
California Construction and Industrial Materials Association
California Dump Truck Owners Association
California Grocers Association
California League of Food Processors
California Manufacturers & Technology Association
California Retailers Association
California Taxpayers Association
Engineering & Utility Contractors Association
National Federation of Independent Business
Western Growers
Opposition
American Lung Association in California
Breathe California
California Conference Board of the Amalgamated Transit Union
California Conference of Machinists
California Labor Federation
California League of Conservation Voters
California Nurses Association
California Teamsters Public Affairs Council
Center for Biological Diversity
Central Coast Alliance for a Sustainable Economy
Clean Power Campaign
Clean Water Action
Coalition for Clean Air
Community Clean Water Institute
Engineers & Scientists of California, IFPTE Local 20
Environmental Defense Fund
Fourth Sector Strategies
Fresno Metro Ministry
Global Green USA
International Longshore and Warehouse Union
Jockeys' Guild
Kazan, McClain, Lyons, Greenwood & Harley
National Resources Defense Council
National Union of Healthcare Workers
Parents for a Safer Environment
Planning and Conservation League
Professional & Technical Engineers, IFPTE Local 21
Service Employees International Union
Sierra Club California
Tri-Valley CAREs
Union of Concerned Scientists
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UNITE - HERE
United Food & commercial Workers Western States Council
Analysis Prepared by : Rebecca May / B. & P. / (916) 319-3301