BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 12| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED AB 12 Page 2 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 CONTINUED AB 12 Page 3 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 CONTINUED AB 12 Page 4 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 **** END **** CONTINUED