BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1612
                                                                  Page  1

          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1612 (Donnelly) - As Amended:  April 2, 2014 

          Policy Committee:                              Accountability  
          and Administrative Review                     Vote: 13 - 0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Office of Administrative Law (OAL) to  
          provide the "greatest feasible access" to the California Code of  
          Regulations (CCR).  Specifically, this bill: 

          1)Requires that the OAL shall not:

             a)   Charge any fee to enable access to individuals with  
               disabilities or charge the public for accessibility options  
               provided under the "accessibility" link.

             b)   Intentionally install any device that blocks third-party  
               Internet search engines from accessing, indexing, or  
               providing foreign language translations of the CCR.

          1)Declares legislative intent that the OAL make available on the  
            Internet the CCR in a searchable format equal to, or greater  
            than, the level of access to the California Codes provided by  
            Legislative Counsel.

           FISCAL EFFECT  

          1)OAL does not directly charge fees for accessibility, so there  
            is no state impact from the prohibition on fees.

          2)Should the Legislature require OAL to make the CCR available  
            on the Internet in searchable format at the level of access of  
            the California Codes, the following costs would be incurred:

             a)   Estimated one-time information technology costs of  
               approximately $975,000 (General Fund) to make the  








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               California Code of Regulation available in a web-based  
               searchable format. Additional ongoing IT support costs of  
               approximately $410,000 dollars annually (General Fund), to  
               update the codes weekly and maintain the site.

             b)   On-going loss of up to $600,000 (General Fund) in  
               forgone revenue from the renegotiation or loss of the  
               service contract with West Publishing Corporation.

           COMMENTS  

           1)Purpose  . According to the author's office, this bill is  
            intended to require the OAL to provide a level of  
            accessibility to the CCR equal to the level of accessibility  
            to the California Codes provided by Legislative Counsel.

           2)Existing Law  . OAL is required to provide the full text of the  
            CCR, including an index of links to the full text of each  
            regulation, or pending regulation, on its Website, free of  
            charge. OAL may contract with another state agency or a  
            private entity in order to provide this service. Legislative  
            Counsel is required to make the California Codes and the  
            California Constitution, among other things, available to the  
            public in an electronic form.

           3)Background  . The OAL is charged with ensuring that agency  
            regulations are clear, necessary, legally valid, and available  
            to the public. OAL is responsible for reviewing administrative  
            regulations proposed by over 200 state regulatory agencies for  
            compliance with the standards set forth in California's  
            Administrative Procedure Act (APA), for transmitting these  
            regulations to the Secretary of State, and for publishing  
            regulations in the California Code of Regulations (CCR). OAL  
            oversees the publication and distribution, in print and on the  
            Internet, of the CCR and the Register. Existing law requires  
            OAL, on a weekly basis, to post a copy of the Register and  
            links to regulations proposed by state agencies on its  
            website.
           
            4)OAL Contract  . OAL contracts with a private entity to provide  
            the required public access to the CCR. Based on the copyright  
            held by the State of California of the CCR, compensation for  
            the service provided by the private entity comes from the  
            ability of this entity to charge individuals, businesses and  
            others for ancillary services, including enhanced search  








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            functions and notifications of changes or additions to the  
            regulations. The state receives approximately $600,000  
            annually from this contract. 

            This bill will likely cause OAL to renegotiate or even lose  
            the contract it currently has with the publisher (West  
            Publishing Corporation) of the CCR and the Register.  Pursuant  
            to the terms of the current contract, West pays the state  
            $400,000 annually, plus 7% royalties, through the 2015  
            calendar year for the privilege of publishing the Register and  
            CCR and providing a few related services. The contract  
            includes a provision specifying that if there are changes to  
            California law that alter the publication services and lead to  
            increased costs to the contractor (West), an equitable  
            adjustment to the compensation must be negotiated. 

            In contrast, the State does not hold copyrights on the  
            California Codes or Constitution and does not limit access to  
            these documents. Access to the CCR is limited compared to the  
            accessibility of the California Codes and Constitution. It is  
            unlikely that a private entity would provide the level of  
            access to the CCR as Legislative Counsel provides for the  
            California Codes and Constitution because there would be no  
            revenue base.

           5)Related Legislation  . SB 1091 (Galgiani, 2014) among other  
            provisions, requires OAL to make the Register available in an  
            electronically searchable Web based format by January 1, 2017,  
            and include the ability for interested parties to subscribe to  
            an email notification of the Register and specific notices.  
            This bill is on the Senate Appropriations Suspense File.


           Analysis Prepared by  :    Jennifer Swenson / APPR. / (916)  
          319-2081