BILL ANALYSIS Ó
Bill No: AB
12
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
AB 12 Author: Cooley
As Amended: May 24, 2013
Hearing Date: June 25, 2013
Consultant: Paul Donahue
SUBJECT
Administrative Procedure Act: standardized regulatory
impact analyses; report
DESCRIPTION
1)Requires the Department of Finance ("Finance") and the
Office of Administrative Law (OAL) to review annually the
standardized regulatory impact analyses for adherence to
the regulations adopted by a state agency, and report
back to the Legislature.
2)Requires the legislative report to include any
recommendations improving state agency performance and
compliance.
3)Requires the OAL to post the report and notice of
noncompliance on the Internet.
EXISTING LAW
The Administrative Procedure Act governs the procedures 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 each state agency to prepare a
standardized regulatory impact analysis, as specified, with
respect to the adoption, amendment, or repeal of a major
AB 12 (Cooley) continued
Page 2
regulation, as defined, that is proposed on or after
November 1, 2013.
Existing law requires Finance and OAL to periodically
review the standardized regulatory impact analyses for
adherence to regulations adopted by Finance.
BACKGROUND
1)Purpose : According to the author's office, this bill
increases accountability and legislative oversight in the
regulatory adoption process by requiring Finance to
review major regulatory impact analysis reports and issue
its findings annually to the Legislature on state
agencies' compliance in creating the reports. It further
increases government transparency by instructing the OAL
to make public notice on its website of any state agency
failing to issue a standardized regulatory impact report
or failing to comply with the guidelines set out by
Finance in creating the report.
2)Background : Existing statutes require Finance and OAL to
review the standardized regulatory impact analyses for
adherence to the regulations adopted by the state agency,
and thereafter report to the Legislature by November 1,
2015. This measure would require Finance and OAL to
annually review the standardized regulatory impact
analyses and report to the Legislature on an annual
basis.
This bill also requires OAL to include in its annual
report a discussion of agency noncompliance, and any
recommendations the Legislature might consider for
improving state agency performance and compliance in the
creation of the standardized regulatory impact analyses.
3)Statements in support : Supporters believe that this
measure will "strengthen transparency and accountability
related to the requirement that agencies conduct
regulatory impact analysis for major regulations. Annual
reviews of agency compliance levels, recommendations for
legislative action to improve compliance, and internet
posting of noncompliance will raise awareness about the
costs and benefits of major regulations and ensure
legislators have the information they need to improve
California's regulatory environment."
AB 12 (Cooley) continued
Page 3
PRIOR/RELATED LEGISLATION
SB 617 (Calderon), Chapter 496, Statutes of 2011. Requires
all state agencies that create, modify, or repeal a major
regulation with an economic impact of $50 million or more
to issue a standardized economic impact report, and enacts
requirements for a regulatory impact report to be completed
by Finance and OAL.
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 & Lodging Association
California Independent Oil Marketers Association
California Manufacturers & Technology Association
California Retailers Association
California Service Station & 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
OPPOSE:
None on file
DUAL REFERRAL: Senate Environmental Quality Committee
FISCAL COMMITTEE: Senate Appropriations Committee
**********
AB 12 (Cooley) continued
Page 4