BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 12
          Author:   Cooley (D)
          Amended:  5/24/13 in Assembly
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMMITTEE  :  11-0, 6/25/13
          AYES:  Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,  
            De León, Galgiani, Hernandez, Lieu, Padilla

           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  9-0, 7/3/13
          AYES:  Hill, Gaines, Calderon, Corbett, Fuller, Hancock,  
            Jackson, Leno, Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 8/30/13
          AYES:  De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg

           ASSEMBLY FLOOR  :  77-0, 5/29/13 - See last page for vote


           SUBJECT  :    Administrative Procedure Act:  standardized  
          regulatory impact 
                      analyses:  report

           SOURCE  :     Author


           DIGEST  :    This bill requires the Department of Finance (DOF)  
          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; requires the legislative report to include any  
          recommendations improving state agency performance and  
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          compliance; and requires the OAL to post the report and notice  
          of noncompliance on the Internet.

           ANALYSIS  :    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 OAL. 

          Existing law:

          1. Requires each state agency to prepare a standardized  
             regulatory impact analysis, as specified, with respect to the  
             adoption, amendment, or repeal of a major regulation, as  
             defined, that is proposed on or after November 1, 2013.

          2. Requires DOF and OAL to periodically review the standardized  
             regulatory impact analyses for adherence to regulations  
             adopted by DOF.

          This bill:

          1. Requires DOF and 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 OAL to post the report and notice of noncompliance  
             on the Internet.

           Background
           
          Existing statutes require DOF 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 bill requires DOF and OAL  
          to annually review the standardized regulatory impact analyses  
          and report to the Legislature on an annual basis, and 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  

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          in the creation of the standardized regulatory impact analyses. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee, ongoing costs  
          likely to be about $75,000 per year for DOF to review  
          standardized regulatory analyses (General Fund).  Given the  
          anticipated workload (generally 5-10 qualifying analyses per  
          year), DOF will likely need a partial position for these  
          reviews.  In some years, depending on workload and the  
          complexity of the analysis, DOF may need additional, outside  
          consultant services, at additional cost.

           SUPPORT  :   (Verified  8/30/13)

          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
          Pacific Merchant Shipping Association
          United Contractors
          Western States Petroleum Association

           ARGUMENTS IN SUPPORT  :    According to the author's office, this  
          bill increases accountability and legislative oversight in the  
          regulatory adoption process by requiring DOF 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  

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          transparency by instructing the OAL to make public notice on its  
          Web site of any state agency failing to issue a standardized  
          regulatory impact report or failing to comply with the  
          guidelines set out by DOF in creating the report.

          Supporters believe that this bill 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."

           ASSEMBLY FLOOR  :  77-0, 5/29/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,  
            Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway,  
            Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández,  
            Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell,  
            Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Perea, V.  
            Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,  
            Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,  
            Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Holden, Patterson, Vacancy


          MW:d  8/30/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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