BILL ANALYSIS �
AB 2723
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Date of Hearing: April 9, 2013
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Jim Frazier, Chair
AB 2723 (Medina) - As Introduced: February 21, 2014
SUBJECT : Administrative procedure: small businesses.
SUMMARY : Makes clarifying changes to the Administrative
Procedure Act (APA) to include "sole proprietorships" and "small
business" in the required standardized regulatory impact
analysis when a state agency proposes to adopt, amend, or repeal
a major regulation. Specifically, this bill :
1)Adds a legislative finding stating the importance of small
businesses and the need to include an evaluation of the
potential economic impacts upon these businesses in the
regulatory process.
2)Adds "sole proprietorship" and "small business" to the
definition of businesses covered within the definition of
"cost impact."
3)Removes landscape architects, architects, and building
designers from the list of businesses and entities excluded
under the definition of "small business."
4)Removes nonprofit institutions with 100 or fewer employees
from the list of businesses and entities excluded under the
definition of "small business."
EXISTING LAW :
1)Requires the notice of proposed adoption, amendment, or repeal
of a regulation to include, among other things, a description
of all cost impacts, known to the agency at the time the
notice of the proposed action is submitted to the Office of
Administrative Law (OAL), that a representative private person
or business would necessarily incur in reasonable compliance
with the proposed action.
2)Defines "cost impact" as the amount of reasonable range of
direct costs, or a description of the type and extent of
direct costs, that a representative private person or business
necessarily incurs in reasonable compliance with the proposed
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action.
3)Requires every state agency to prepare and submit to the OAL a
final statement of reasons with the adopted regulation that
includes, among other things, an explanation setting forth the
reasons for rejecting any proposed alternatives that would
lessen the adverse economic impact on small businesses, as
defined.
4)Specifies that a small business does not include, among
others, a landscape architect, an architect, or a building
designer or an entity organized as a nonprofit.
5)Requires all state agencies proposing to adopt, amend, or
repeal a regulation that is not a major regulation or that is
a major regulation proposed prior to November 1, 2013, to
prepare an economic impact assessment that assesses whether,
and to what extent, the proposal will affect, among other
things, creation of new businesses or the elimination of
existing businesses within the state.
6)Requires a state agency to include certain information in the
notice of proposed action, including, but not limited to,
identification of the types of businesses that would be
affected, if, in proposing to adopt, amend, or repeal any
administrative regulation, the agency initially determines
that the action may have a significant, statewide adverse
economic impact directly affecting businesses, including the
ability of California businesses to compete with businesses in
other states.
FISCAL EFFECT : Unknown
COMMENTS : The author's office states that this bill adds
statutory protections to ensure that the costs of major
regulations on the state's smallest businesses are considered
when state agencies undertake the economic impact assessment.
To accomplish this, this bill adds the entities "sole
proprietorship" and "small business" to the definition of
entities considered when the state engages in the cost impact
assessment when proposing major regulations. Current law only
requires "a representative private person or business." This
bill will clarify that a representative private person includes
a sole proprietorship and that business includes small
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businesses. A number of minor and technical changes are
included in this bill to support the addition of these entities.
DRAFTING ERROR : The author's office has identified that this
bill makes changes to statute in the sections of the APA dealing
with proposed regulations prior to November 1, 2013. The author
intends to add language in the second policy committee that will
add these changes to the sections of the APA dealing with
proposed regulations after November 1, 2013.
DOUBLE REFERRAL : This bill is double referred to the Assembly
Committee on Jobs, Economic Development, and the Economy.
REGISTERED SUPPORT / OPPOSITION :
Support
Air Conditioning Trade Association
America Institute of Architects, California Council
Associated Builders and Contractors of California
Associated Builders and Contractors-San Diego Chapter
Building Owners & Managers Association of California
California Asian Pacific Chamber of Commerce
California Association for Micro Enterprise Opportunity
California Association of Boutique & Breakfast Inns
California Business Properties Association
California Business Roundtable
California Chamber of Commerce
California Construction and Industrial Materials Association
California Fence Contractor's Association
California Grocers Association
California Hotel & Lodging Association
California Manufactures & Technology Association
California Small Business Development Center Leadership Council
Coalition of Small and Disabled Veteran Businesses
Commercial Real Estate Development Association, NAIOP of
California
Family Business Association
Industrial Environmental Association
International County of Shopping Centers
Los Angeles County Economic Development Corporation
Marin Builders Association
National Federation of Independent Business
Plumbing-Heating-Cooling Contractors Association of California
Small Business California
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State of California Auto Dismantler's Association
The Flasher Barricade Association
United Contractors
Western Electrical Contractors Association
Opposition
None on file.
Analysis Prepared by William Herms / A. & A.R. / (916) 319-3600