BILL NUMBER: SB 688	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 29, 2011

INTRODUCED BY   Senator Wright

                        FEBRUARY 18, 2011

   An act to amend Sections 11343.4 and 11346.3 of the Government
Code, relating to regulations.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 688, as amended, Wright. Regulations: legislative approval.
   Existing law, the Administrative Procedure Act, governs the
procedure for the adoption, amendment, or repeal of regulations by
state agencies and for the review of those regulatory actions by the
Office of Administrative Law. Existing law requires the agency to
assess the potential for adverse economic impact on California
business enterprises and individuals, as specified. Existing law
provides that a regulation shall become effective 30 days after the
date it is filed with the Secretary of State, as specified.
   This bill would also require an agency to produce, as part of the
required impact assessment, a detailed estimate of the  total
actual costs of compliance   cumulative statewide cost
impacts  for affected businesses  and individuals
 . This bill would require the agency to notify specified
committees of the Legislature if the estimated  total costs
of compliance exceed an unspecified amount   cumulative
statewide cost impacts for affected businesses exceed  
$10,000,000  , as specified.
   This bill would require that a regulation that has an estimated
 total cost of compliance in excess of an unspecified amount
  cumulative statewide cost impact for affected
businesses that exceed $10,000,000  not take effect until
January 1, next, one year following the date that the regulation is
filed with the Secretary of State.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11343.4 of the Government Code is amended to
read:
   11343.4.  (a) Except as provided in subdivision (b), a regulation
or an order of repeal required to be filed with the Secretary of
State shall become effective on the 30th day after the date of filing
unless:
   (1) Otherwise specifically provided by the statute pursuant to
which the regulation or order of repeal was adopted, in which event
it becomes effective on the day prescribed by the statute.
   (2) A later date is prescribed by the state agency in a written
instrument filed with, or as part of, the regulation or order of
repeal.
   (3) The agency makes a written request to the office demonstrating
good cause for an earlier effective date, in which case the office
may prescribe an earlier date.
   (b) A regulation that has  an individual   a
cumulative statewide  cost impact in excess of  ____
dollars ($____),   ten million dollars ($10,000,000) for
affected businesses,  as determined by the assessment conducted
pursuant to Section 11346.3, shall not take effect until January 1,
next, one year following the date that the regulation is filed with
the Secretary of State.
  SEC. 2.  Section 11346.3 of the Government Code is amended to read:

   11346.3.  (a) State agencies proposing to adopt, amend, or repeal
any administrative regulation shall assess the potential for adverse
economic impact on California business enterprises and individuals,
avoiding the imposition of unnecessary or unreasonable regulations or
reporting, recordkeeping, or compliance requirements. For purposes
of this subdivision, assessing the potential for adverse economic
impact shall require agencies, when proposing to adopt, amend, or
repeal a regulation, to adhere to the following requirements, to the
extent that these requirements do not conflict with other state or
federal laws:
   (1) The proposed adoption, amendment, or repeal of a regulation
shall be based on adequate information concerning the need for, and
consequences of, proposed governmental action.
   (2) The state agency, prior to submitting a proposal to adopt,
amend, or repeal a regulation to the office, shall consider the
proposal's impact on business, with consideration of industries
affected including the ability of California businesses to compete
with businesses in other states. For purposes of evaluating the
impact on the ability of California businesses to compete with
businesses in other states, an agency shall consider, but not be
limited to, information supplied by interested parties.
   It is not the intent of this section to impose additional criteria
on agencies, above that which exists in current law, in assessing
adverse economic impact on California business enterprises, but only
to assure that the assessment is made early in the process of
initiation and development of a proposed adoption, amendment, or
repeal of a regulation.
   (b) (1) All state agencies proposing to adopt, amend, or repeal
any administrative regulations shall assess whether and to what
extent it will affect the following:
   (A) The creation or elimination of jobs within the State of
California.
   (B) The creation of new businesses or the elimination of existing
businesses within the State of California.
   (C) The expansion of businesses currently doing business within
the State of California.
   (2) (A) All state agencies proposing to adopt, amend, or repeal
any administrative regulations shall also prepare, as part of the
assessment required by this section, a detailed estimate of the
 total actual costs of compliance for affected businesses and
individuals. The cost impacts shall, at a minimum, estimate costs of
individual compliance as well as the aggregate statewide cost of
compliance.   cumulative statewide cost impacts for
affected businesses. 
   (B) The agency shall notify the fiscal committee in each house of
the Legislature and the appropriate policy committee in each house of
the Legislature if the estimated  actual costs of compliance
for affected businesses or individuals, at the individual level,
exceeds ____ dollars ($____)   cumulative  
statewide cost impact for affected businesses exceeds ten million
dollars ($10,000,000)  . This notification is intended to
provide the Legislature sufficient time, to the extent the
Legislature may disapprove of the regulation, to enact a statute that
restricts the statutory authority of the agency to enact the
regulation.
   (3) This subdivision does not apply to the University of
California, the Hastings College of the Law, or the Fair Political
Practices Commission.
   (4) Information required from state agencies for the purpose of
completing the assessment may come from existing state publications.
   (c) No administrative regulation adopted on or after January 1,
1993, that requires a report shall apply to businesses, unless the
state agency adopting the regulation makes a finding that it is
necessary for the health, safety, or welfare of the people of the
state that the regulation apply to businesses.