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
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           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