BILL ANALYSIS Ó AB 12 Page 1 Date of Hearing: April 3, 2013 ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW Jim Frazier, Chair AB 12 (Cooley) - As Introduced: December 3, 2012 SUBJECT : State government: Administrative Procedure Act: standardized regulatory impact analyses. SUMMARY : Requires the Department of Finance (DOF) and the Office of Administrative Law (OAL) annually review the standardized regulatory impact analyses for adherence to the regulations adopted by a state agency and report to the Legislature. Additionally, this bill: 1)Requires the report include any recommendations improving state agency performance and compliance. 2)Requires the OAL post the report and notice of noncompliance on the office's Internet Web site. EXISTING LAW established the Administrative Procedure Act creating a public process by which those persons or entities affected by a regulation have a voice in its creation as well as notice of the law's new requirements. The Act establishes a specific process for state agencies including assessing the cost of the regulations, providing for public notice of proposed regulations, an opportunity for interested parties to comment, and with some exceptions, review by the Office of Administrative Law. FISCAL EFFECT : unknown COMMENTS : Current law requires DOF and OAL "from time to time" review the standardized regulatory impact analyses for adherence to the regulations adopted by the state agency and report to the Legislature. Statute requires this report to be delivered on or before November 1, 2015. This language creates uncertainty as to when and how often subsequent reports reviewing the standardized regulatory impact analysis are delivered to the Legislature. This bill eliminates that uncertainty by requiring DOF and OAL annually review the standardized regulatory impact analyses and report to the Legislature. AB 12 Page 2 Existing law also states OAL "may notify" the Legislature of noncompliance by a state agency with the regulations. This language allows OAL discretion to not notify the Legislature of noncompliance by a state agency if it so chooses. This bill eliminates that discretion by requiring OAL include in its annual report a discussion of noncompliance and any recommendations the Legislature might consider for improving state agency performance and compliance in the creation of the standardized regulatory impact analysis. This bill requires the OAL post the report and notice of noncompliance on the office's Internet Web site. Previous legislation: SB 617 (chapter 496, statutes of 2011) was enacted to strengthen the economic impact reports required under the APA. SB 617 requires all state agencies that create, modify, or repeal a major regulation with an economic impact of $50 million dollars or more to issue a standardized economic impact report addressing: 1)The creation or elimination of new business. 2)The creation or elimination of jobs. 3)The competitive advantages or disadvantages to California business. 4)The increase or decrease in investment in the state. 5)The incentives for innovation in products, materials or processes. 6)The benefits to the health, safety and welfare of Californians. Committee staff recommendations: The author may wish to consider the following amendments: 1)Clarify the annual reporting date by specifying November 1, 2015 and annually thereafter. 2)Changes in committee jurisdiction in the Assembly place issues dealing with the Administrative Procedure Act under the Accountability and Administrative Review Committee. In the section dealing with where the OAL report is delivered, remove the Assembly Committee on Governmental Organization and substitute the Assembly Committee on Accountability and Administrative Review. AB 12 Page 3 REGISTERED SUPPORT / OPPOSITION : Support Alliance of Automobile Manufacturers American Council of Engineering Companies of California California Asian Pacific Chamber of Commerce California Association of Health Facilities California Business Properties Association California Chamber of Commerce California Construction and Industrial Materials Association California Hotel and Lodging Association California Independent Oil Marketers Association California Manufacturers and Technology Association California Retailers Association California Service Station and Automotive Repair Association California Trucking Association Chemical Industry Council of California Consumer Specialty Products Association Golden State Builders Exchanges Industrial Environmental Association National Aerosol Association United Contractors Western States Petroleum Association Opposition None on file Analysis Prepared by : William Herms / A. & A.R. / (916) 319-3600