BILL NUMBER: AB 273	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Valadao
   (Coauthors: Assembly Members Jones and Logue)

                        FEBRUARY 7, 2011

   An act to amend Section 11357 of the Government Code, relating to
regulations.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 273, as introduced, Valadao. Regulations: economic impacts
review.
   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 Department of
Finance to adopt and update, as necessary, instructions for
inclusion in the State Administrative Manual that prescribe the
methods that any agency shall use in making certain determinations
relating to the impact of proposed regulations. Existing law also
authorizes the department to review any estimate prepared pursuant to
these provisions for content.
   This bill would additionally require the department to adopt and
update instructions for inclusion in the State Administrative Manual
that prescribe the methods that any agency shall use in making
certain determinations, estimates, statements, and findings relating
to the economic and cost impacts of a regulation on businesses and
private individuals. The bill would require, instead of authorize,
the department to review these determinations, estimates, statements,
and findings for content. This bill would require the department, if
it determines that an agency's determinations, estimates,
statements, or findings are erroneous or otherwise inconsistent with
the prescribed guidelines, criteria, or formats, to submit its
determinations to the agency in the form of public comment to be
considered by the agency, as specified.
   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 11357 of the Government Code is amended to
read:
   11357.  (a) The Department of Finance shall adopt and update, as
necessary, instructions for inclusion in the State Administrative
Manual prescribing the methods that any agency subject to this
chapter shall use in making the  determination required by
paragraph (5) and the estimate required by paragraph (6) 
 determinations, estimates, statements, and   findings
described by paragraphs (5) to (11), inclusive,  of subdivision
(a) of Section 11346.5. The instructions shall include, but need not
be limited to, the following:
   (1) Guidelines governing the types of data or assumptions, or
both, that may be used, and the methods that shall be used, to
calculate the estimate of the cost or savings to public agencies
mandated by the regulation for which the estimate is being prepared.
   (2) The types of direct or indirect costs and savings that should
be taken into account in preparing the estimate.
   (3) The criteria that shall be used in determining whether the
cost of a regulation must be funded by the state pursuant to Section
6 of Article XIII B of the California Constitution and Part 7
(commencing with Section 17500) of Division 4.
   (4) The format the agency preparing the estimate shall follow in
summarizing and reporting its estimate of the cost or savings to
state and local agencies, school districts, and in federal funding of
state programs that will result from the regulation. 
   (5) The format and criteria that the agency shall use in making an
initial determination that a regulation either may have or will not
have a significant, statewide adverse economic impact directly
affecting business, consistent with the requirements of subdivision
(a) of Section 11346.3, and including the corresponding information
required pursuant to paragraphs (7) and (8) of subdivision (a) of
Section 11346.5.  
   (6) The criteria the agency shall consider in determining and
describing cost impacts that a representative private person or
business would necessarily incur in reasonable compliance with a
proposed regulation.  
   (7) The format and criteria that the agency shall use in assessing
and stating the impact of a regulation on the creation or
elimination of jobs, the creation of new businesses, the elimination
of existing businesses, and the expansion of businesses in this
state, consistent with the requirements of subdivision (b) of Section
11346.3.  
   (8) The format and criteria that the agency shall use in making a
finding that a regulation that imposes a reporting requirement
applicable to businesses is necessary for the health, safety, or
welfare of the people of the state, consistent with the requirements
of subdivision (c) of Section 11346.3. 
   (b) Any action by the Department of Finance to adopt and update,
as necessary, instructions to any state or local agency for the
preparation, development, or administration of the state budget,
including any instructions included in the State Administrative
Manual, shall be exempt from this chapter.
   (c) The Department of Finance  may   shall
 review any  estimate   determination,
estimate, statement, and finding  prepared pursuant to this
section for content including, but not limited to, the data and
assumptions used in its preparation. 
   (d) If the department determines that any determination, estimate,
statement, or finding described by paragraphs (5) to (11),
inclusive, of subdivision (a) of Section 11346.5 is erroneous or
otherwise inconsistent with the guidelines, criteria, or format
required by this section, the Department of Finance shall submit its
determinations, along with any supporting documents, to the agency in
the form of public comment for consideration by the agency prior to
the close of the public comment period.