BILL ANALYSIS �
Bill No: AB
1711
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
AB 1711 Author: Cooley
As Amended: April 3, 2014
Hearing Date: June 10, 2014
Consultant: Paul Donahue
SUBJECT
Administrative Procedures Act: Economic impact assessment
DESCRIPTION
This bill requires an Economic Impact Assessment (EIA) to
be included in the Initial Statement of Reasons (ISOR) that
a state agency submits to the Office of Administrative Law
(OAL) when adopting, amending, or repealing a non-major
regulation. Specifically, this bill :
1)Requires a state agency to include an EIA in the ISOR
that is submitted to OAL when adopting, amending, or
repealing a non-major regulation.
2)Directs the Department of Finance (DOF) to adopt and
update, as necessary, instructions prescribing the
methods that an agency must use in preparing the EIA, and
include those instructions in the State Administrative
Manual.
EXISTING LAW
1)The Administrative Procedure Act governs the procedures
for the adoption, amendment, or repeal of regulations by
state agencies and for the review of those regulatory
actions by OAL.
AB 1711 (Cooley) continued
Page 2
2)Requires each state agency to prepare a standardized
regulatory impact analysis, as specified, with respect to
the adoption, amendment, or repeal of a major regulation,
as defined, that is proposed on or after November 1,
2013.
3)Defines a "major regulation" to mean any proposed
adoption, amendment, or repeal of a regulation that will
have an economic impact on California business
enterprises and individuals in an amount exceeding $50
million, as estimated by the agency.
4)Requires DOF and OAL to periodically review the
standardized regulatory impact analyses for adherence to
regulations adopted by DOF.
BACKGROUND
Purpose : According to the author, a state agency that
proposes a rulemaking action affecting only non-major
regulations (less than $50 million impact) is required to
prepare an economic impact assessment (EIA) for purposes of
assessing the potential adverse economic impact of the
proposed regulations. Currently the Administrative
Procedure Act does not establish when the economic impact
assessment for non-major regulations is to be prepared and
made available to the public for comment. AB 1711 resolves
this issue by ensuring that the EIA for non-major
regulations is included in the initial regulatory notice
document, thereby making the statement available to the
public for comment at the onset of the rulemaking process
when it can be most useful.
PRIOR/RELATED LEGISLATION
AB 12 (Cooley), 2013-2014 Session. Would have required DOF
and OAL to review annually the standardized regulatory
impact analyses for adherence to the regulations adopted by
a state agency, and report back to the Legislature.
(Vetoed)
SB 617 (Calderon), Chapter 496, Statutes of 2011. Requires
all state agencies that create, modify, or repeal a major
regulation with an economic impact of $50 million or more
to issue a standardized economic impact report, and enacts
requirements for a regulatory impact report to be completed
AB 1711 (Cooley) continued
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by Finance and OAL.
SUPPORT:
Office of Administrative Law
OPPOSE:
None on file
DUAL REFERRAL: Senate Environmental Quality Committee
FISCAL COMMITTEE: Senate Appropriations Committee
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