BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1612|
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CONSENT
Bill No: AB 1612
Author: Lara (D)
Amended: 7/5/12 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMM : 8-0, 6/12/12
AYES: DeSaulnier, Gaines, Harman, Kehoe, Lowenthal,
Pavley, Rubio, Wyland
NO VOTE RECORDED: Simitian
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 7-0, 6/18/12
AYES: Simitian, Strickland, Blakeslee, Hancock, Kehoe,
Lowenthal, Pavley
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 74-0, 4/12/12 - See last page for vote
SUBJECT : Administrative practices
SOURCE : California Building Industry Association
DIGEST : This bill requires a state entity proposing
changes to building standards that impact housing to
include information on the estimated costs and benefits of
the changes.
ANALYSIS : The California Building Standards Law
establishes the California Building Standards Commission
and the process for adopting state building standards.
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Under this process, relevant state agencies propose
amendments to model building codes, which the Commission
must then adopt, modify, or reject. The Department of
Housing and Community Development is the relevant state
agency for residential building standards. In addition,
the California Energy Commission develops building
standards relating to energy efficiency for all
occupancies, including housing.
State agencies developing building standards begin with a
model code developed by a national code-writing entity.
State agencies then make amendments to the model codes to
reflect California needs and priorities.
Building standards qualify as regulations. Therefore, the
adoption of building standards is subject to the
Administrative Procedures Act, which establishes the
general process for the adoption of regulations. As part
of the Act, an entity proposing new or amended regulations
must prepare and submit to the Office of Administrative Law
a notice of the proposed action and an initial statement of
reasons (ISOR) for proposing the change in regulation.
Among other things, the ISOR must include a statement of
the specific purpose for each change, the problem the
agency intends to address, and the rationale for why the
change is reasonably necessary to carry out the purpose and
address the problem for which it is proposed. The ISOR
must also enumerate the benefits anticipated from the
regulatory action, both monetary and non-monetary, and
include evidence to support an initial determination that
the change may have or will not have a significant,
statewide adverse impact directly affecting business.
The notice of proposed action that accompanies the ISOR
must include, among other things, a statement that the
change would have a significant effect on housing costs, if
the agency makes an initial determination that the action
would have that effect, and, separately, a description of
all cost impacts known to the agency that a representative
private person or business would necessarily incur in
reasonable compliance with the proposed action. If the
agency is unaware of cost impacts on private persons or
businesses, it may state that instead.
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This bill requires a state entity proposing changes to
building standards that impact housing to include
additional information on the estimated costs and benefits
of the changes. Specifically, the bill:
1.For any California amendment to a model code that impacts
housing, requires the ISOR to include the estimated cost
of compliance, the estimated potential benefits, and the
related assumptions used to determine the estimates.
2.For a particular change added to a model code by a
national code-writing entity, requires for that specific
change only that the ISOR include the estimated cost of
compliance, the estimated potential benefits, and the
related assumptions used to determine the estimates if an
interested party has made a request in writing at least
30 days before the submittal of the ISOR to the agency to
examine that specific section.
3.Requires a state entity to include with any statement in
the notice of proposed action that a change in building
standards would have a significant effect on housing
costs and the estimated costs of compliance and potential
benefits of a building standard, if any, that were
included in the ISOR. This applies to all California
amendments to model codes and, if requested for a
particular change, to changes in the model codes
themselves.
4.Expresses the intent of the Legislature that the
requirements of this bill only apply to those state
agencies that have statutory authority to propose or
adopt residential building standards, and not to the
California Air Resources Board, air pollution control
districts, or air quality management districts.
Comments
An agency proposing changes to building standards that
impact housing is required to provide the cost of
compliance if it expects a proposed building standard to
have a significant effect on housing costs. If the agency
determines, however, that the standard will not have a
significant impact, or if it is unaware of any significant
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impact, the agency must only say that and need not supply
any explicit information on the cost of compliance.
According to the author, the subjectivity of the term
"significant" and the lack of an estimate of the cost of
compliance leave the public without a clear indication of
the actual costs of proposed building standards. Without a
firm understanding of the costs related to proposed
building standards, businesses and the public cannot
provide informed input, nor can they fully prepare for the
standard. The author believes this bill will provide
greater transparency and clarity with respect to the costs
and benefits of proposed building standards.
When national code-writing entities issue new model codes,
they often include numerous changes from the previous
edition. The Department of Housing and Community
Development estimates that there are 1500 such changes
affecting housing in the newest model codes. California
amendments to the model codes, however, are much less
frequent. In recognition of the potential workload
associated with having to provide cost and benefit
information on every change to building standards, this
bill limits the requirement for an agency to provide cost
and benefit information just to California amendments and
to those changes within model codes that an interested
party requests information on.
Existing law requires the notice of proposed action, if
relevant, to include a statement that a proposed building
standard change would have a significant effect on housing
costs. As a result, this bill only adds value with respect
to changes that the state agency deems insignificant.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/7/12)
California Building Industry Association (source)
American Council of Engineering Companies California
California Apartment Association
California Association of Realtors
California Business Properties Association
California Chamber of Commerce
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California Manufacturers & Technology Association
Golden State Builders Exchange
Palm Desert Area Chamber of Commerce
Southwest California Legislative Council
United Contractors
Western Electrical Contractors Association
ASSEMBLY FLOOR : 74-0, 4/12/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Chesbro, Conway, Davis, Dickinson, Donnelly, Eng,
Feuer, Fong, Fuentes, Furutani, Beth Gaines, Galgiani,
Gatto, Gordon, Gorell, Grove, Hagman, Halderman, Hall,
Harkey, Hayashi, Roger Hern�ndez, Hill, Huber, Hueso,
Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie
Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel P�rez, Portantino, Silva, Smyth,
Solorio, Swanson, Torres, Valadao, Wagner, Williams,
Yamada, John A. P�rez
NO VOTE RECORDED: Cedillo, Cook, Fletcher, Garrick,
Skinner, Wieckowski
JJA:nl 8/7/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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