BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2723
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 2723 (Medina) - As Amended:  May 1, 2014 

          Policy Committee:                              Jobs, Economic  
          Development and the Economy                   Vote: 6 - 0
                        Accountability and Administrative Review            
             13 - 0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill 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 "sole proprietorship" and "small business" to the  
            definition of businesses covered within the definition of  
            "cost impact."
           
          2)Adds landscape architects, architects, and building designers  
            with 50 or more employees to the list of businesses and  
            entities excluded under the definition of "small business."

          3)Specifies that only nonprofit institutions with more than100  
            employees are excluded under the definition of "small  
            business."

           FISCAL EFFECT  

          Insignificant fiscal impact to the Office of Administrative Law  
          to absorb the new requirements into their current review of  
          notices and initial statement of reasons.

           COMMENTS  

           1)Purpose  . According to the author, "AB 2723 adds statutory  
            protections to ensure that the costs of major regulations on  








                                                                  AB 2723
                                                                  Page  2

            the state's smallest businesses are considered when state  
            agencies undertake the already mandated economic impact  
            assessment.

            Current law, including the process for major regulations, only  
            requires that business impacts in general be considered.   
            Given that businesses with no employees make up the single  
            largest component (80%) of businesses in California fully  
            understanding how regulations affect these smallest size  
            business is essential."


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