BILL ANALYSIS �
AB 273
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Date of Hearing: May 5, 2011
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Roger Dickinson, Chair
AB 273 (Valadao) - As Introduced: February 7, 2011
SUBJECT : Regulations: economic impact reviews
SUMMARY : Requires the Department of Finance (DOF) to review
state agencies' determinations, estimates and other findings
related to costs and economic impacts of proposed regulations.
Also requires DOF to establish additional criteria for making
such determinations, estimates and findings. Specifically, this
bill :
1) Requires DOF to adopt and update instructions in the
State Administrative Manual that prescribe methods that
any agency shall use to make estimates and other findings
relating to cost and economic impacts of a proposed
regulation. New instructions must include criteria that
an agency shall use or consider in:
a. Making an initial determination that a
regulation either may have or will not have a
significant, statewide adverse economic impact
directly affecting business.
b. Determining and describing cost impacts
that a representative private person or business
would necessarily incur in reasonable compliance
with a proposed regulation.
c. Assessing and stating the impact of a
regulation on the creation or elimination of jobs,
the creation of new businesses, the elimination of
existing businesses and the expansion of businesses
in the state.
d. Making a finding that a regulation that
imposes a reporting requirement applicable to
businesses is necessary for public health, safety or
welfare.
2) Requires DOF to review these determinations,
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estimates and findings.
3) Requires DOF, if it concludes the determinations,
estimates and findings are erroneous or inconsistent with
the prescribed guidelines, to report that in a public
statement to the agency involved.
EXISTING LAW :
1) Requires DOF to adopt and update, as necessary,
instructions for assessing the impact of proposed
regulations.
2) Authorizes, but does not require, DOF to review
estimates of such impacts.
FISCAL EFFECT : Unknown
COMMENTS : According to the author's office, this bill would
codify the current practice of DOF to review an agency's
economic impact statement for proposed regulations. Former Gov.
Arnold Schwarzenegger directed DOF to conduct such reviews in an
executive order issued on Nov. 17, 2003.
In addition, the author's office states that the bill would
require DOF to submit its review as part of the public record
during the public comment period for proposed regulations.
The Administrative Procedure Act requires state agencies to
analyze the impact of proposed regulations on businesses and the
economy. But, according to the author's office, such analyses
are done without independent oversight and agencies are not held
accountable if their findings are inaccurate or incomplete.
RELATED LEGISLATION: AB 425 (Nestande) of 2011, requires each
state entity that promulgates regulations to review those
regulations, and repeal or report to the Legislature by Dec. 31,
2012 those identified as duplicative, archaic, or inconsistent
with statute or other regulations or deemed to inhibit economic
growth. This bill is pending in the Assembly Appropriations
Committee.
AB 429 (Knight) of 2011, requires an agency, for any regulation
that it has identified as having a gross cost of $15 million or
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more, an increased cost of 5% or more over the cost of an
existing regulation, or both, to submit a copy of the rulemaking
record for that regulation to the appropriate policy committee
in each house of the Legislature when the agency submits the
regulation to the OAL for approval. This bill failed passage
but has been granted reconsideration in the Assembly Business,
Professions and Consumer Protection Committee.
AB 530 (Smyth) of 2011, requires a state agency, when it files a
notice of proposed action with the OAL, to include technical,
theoretical, and empirical studies, reports, or similar
documents, upon which the agency relied in rejecting each
reasonable alternative. Additionally, this bill requires an
agency to determine whether a proposed regulation will have a
significant adverse economic impact by completing an economic
impact statement, using a form developed by DOF, as specified.
This bill is pending in the Assembly Appropriations Committee.
AB 586 (Garrick) of 2011, requires standing committees of the
Legislature to hold informational hearings regarding proposed
regulations with a gross cost in excess of $10 million. This
bill failed passage but has been granted reconsideration in the
Assembly Business, Professions and Consumer Protection
Committee.
AB 632 (Wagner) of 2011, requires state agencies to submit to
the Legislature a notice of a proposed action to adopt, amend or
repeal a regulation, if the notice identifies an economic
impact, cost impact, statement or finding related to the
proposed regulation, as specified. This bill is pending in the
Assembly Business, Professions and Consumer Protection
Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
American Council of Engineering Companies of California
Associated Builders and Contractors of California
California Building Industry Association
California Business Properties Association
California Forestry Association
California Grocers Association
California League of Food Processors
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California Manufacturers & Technology Association
California Retailers Association
Chemical Industry Council of California
Consumer Specialty Products Association
Engineering and Utility Contractors Association
Golden State Builders Exchanges
Industrial Environmental Association
National Federation of Independent Business
Regional Council of Rural Counties
Southern California Contractors Association
Taxpayer Advocacy Group
USANA Health Sciences
Western Growers
Opposition
None on file
Analysis Prepared by : Jim Sweeney / A. & A.R. / (916)
319-3600