Bill Text: CA AB2723 | 2013-2014 | Regular Session | Enrolled
Bill Title: Administrative procedure: small businesses.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Vetoed) 2014-09-29 - Vetoed by Governor. [AB2723 Detail]
Download: California-2013-AB2723-Enrolled.html
BILL NUMBER: AB 2723 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 25, 2014
PASSED THE ASSEMBLY AUGUST 26, 2014
AMENDED IN SENATE AUGUST 21, 2014
AMENDED IN SENATE AUGUST 18, 2014
AMENDED IN ASSEMBLY MAY 1, 2014
AMENDED IN ASSEMBLY APRIL 9, 2014
INTRODUCED BY Assembly Member Medina
(Coauthor: Assembly Member Fox)
FEBRUARY 21, 2014
An act to amend Sections 11340, 11342.535, 11342.610, 11346.3, and
11346.5 of the Government Code, relating to administrative
procedure.
LEGISLATIVE COUNSEL'S DIGEST
AB 2723, Medina. Administrative procedure: small businesses.
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 the notice of proposed adoption, amendment,
or repeal of a regulation to include, among other things, a
description of all cost impacts, known to the agency at the time the
notice of the proposed action is submitted to the Office of
Administrative Law, that a representative private person or business
would necessarily incur in reasonable compliance with the proposed
action. Existing law defines "cost impact" as the amount of
reasonable range of direct costs, or a description of the type and
extent of direct costs, that a representative private person or
business necessarily incurs in reasonable compliance with the
proposed action.
This bill would define "cost impact" to include those direct costs
that a representative private person or sole proprietorship, small
business, and business necessarily incurs in reasonable compliance
with the proposed action.
Existing law requires every state agency to prepare and submit to
the Office of Administrative Law a final statement of reasons with
the adopted regulation that includes, among other things, an
explanation setting forth the reasons for rejecting any proposed
alternatives that would lessen the adverse economic impact on small
businesses, as defined. Under existing law, a "small business" does
not include, among others, a landscape architect, an architect, or a
building designer or an entity organized as a nonprofit institution.
This bill would instead provide that a "small business" does not
include a landscape architect, an architect, or a building designer
with 50 or more employees or an entity organized as a nonprofit
institution with more than 100 employees.
Existing law requires each state agency proposing to adopt, amend,
or repeal a major regulation on or after November 1, 2013, to
prepare a standardized regulatory impact analysis in the manner
prescribed by the Department of Finance. Existing law requires the
standardized regulatory impact analysis to address, among other
things, the creation of new businesses or the elimination of existing
businesses within the state.
This bill would require the analysis to address, the creation of
new businesses or the elimination of existing businesses within the
state, including the impact on sole proprietorships and small
businesses, as defined.
If a state agency, in proposing to adopt, amend, or repeal any
administrative regulation, makes an initial determination that the
action may have a significant, statewide adverse economic impact
directly affecting businesses, including the ability of California
businesses to compete with businesses in other states, existing law
requires the state agency to include certain information in the
notice of the proposed action, including, but not limited to,
identification of the types of businesses that would be affected.
This bill would require that information to additionally include
the size of businesses that would be affected.
This bill would incorporate additional changes to Section 11346.3
of the Government Code proposed by AB 1711 that would become
operative if this bill and AB 1711 are both chaptered and this bill
is chaptered last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 11340 of the Government Code is amended to
read:
11340. The Legislature finds and declares as follows:
(a) There has been an unprecedented growth in the number of
administrative regulations in recent years.
(b) The language of many regulations is frequently unclear and
unnecessarily complex, even when the complicated and technical nature
of the subject matter is taken into account. The language is often
confusing to the persons who must comply with the regulations.
(c) Substantial time and public funds have been spent in adopting
regulations, the necessity for which has not been established.
(d) The imposition of prescriptive standards upon private persons
and entities through regulations where the establishment of
performance standards could reasonably be expected to produce the
same result has placed an unnecessary burden on California citizens
and discouraged innovation, research, and development of improved
means of achieving desirable social goals.
(e) There exists no central office in state government with the
power and duty to review regulations to ensure that they are written
in a comprehensible manner, are authorized by statute, and are
consistent with other law.
(f) Correcting the problems that have been caused by the
unprecedented growth of regulations in California requires the direct
involvement of the Legislature as well as that of the executive
branch of state government.
(g) The complexity and lack of clarity in many regulations put
small businesses, which do not have the resources to hire experts to
assist them, at a distinct disadvantage. Given the importance of
small businesses within the California economy, it is especially
important that regulations that may have significant impacts on the
private sectors be evaluated to determine the potential impact on
these smaller size businesses.
SEC. 2. Section 11342.535 of the Government Code is amended to
read:
11342.535. "Cost impact" means the amount of reasonable range of
direct costs, or a description of the type and extent of direct
costs, that a representative private person or sole proprietorship,
small business, and business necessarily incurs in reasonable
compliance with the proposed action.
SEC. 3. Section 11342.610 of the Government Code is amended to
read:
11342.610. (a) "Small business" means a business activity in
agriculture, general construction, special trade construction, retail
trade, wholesale trade, services, transportation and warehousing,
manufacturing, generation and transmission of electric power, or a
health care facility, unless excluded in subdivision (b), that is
both of the following:
(1) Independently owned and operated.
(2) Not dominant in its field of operation.
(b) "Small business" does not include the following professional
and business activities:
(1) A financial institution including a bank, a trust, a savings
and loan association, a thrift institution, a consumer finance
company, a commercial finance company, an industrial finance company,
a credit union, a mortgage and investment banker, a securities
broker-dealer, or an investment adviser.
(2) An insurance company, either stock or mutual.
(3) A mineral, oil, or gas broker.
(4) A subdivider or developer.
(5) An entity organized as a nonprofit institution with more than
100 employees.
(6) An entertainment activity or production, including a motion
picture, a stage performance, a television or radio station, or a
production company.
(7) A utility, a water company, or a power transmission company
generating and transmitting more than 4.5 million kilowatthours
annually.
(8) A petroleum producer, a natural gas producer, a refiner, or a
pipeline.
(9) A manufacturing enterprise exceeding 250 employees.
(10) A health care facility exceeding 150 beds or one million five
hundred thousand dollars ($1,500,000) in annual gross receipts.
(11) A landscape architect, an architect, or a building designer
with 50 or more employees.
(c) "Small business" does not include the following business
activities:
(1) Agriculture, where the annual gross receipts exceed one
million dollars ($1,000,000).
(2) General construction, where the annual gross receipts exceed
nine million five hundred thousand dollars ($9,500,000).
(3) Special trade construction, where the annual gross receipts
exceed five million dollars ($5,000,000).
(4) Retail trade, where the annual gross receipts exceed two
million dollars ($2,000,000).
(5) Wholesale trade, where the annual gross receipts exceed nine
million five hundred thousand dollars ($9,500,000).
(6) Services, where the annual gross receipts exceed two million
dollars ($2,000,000).
(7) Transportation and warehousing, where the annual gross
receipts exceed one million five hundred thousand dollars
($1,500,000).
SEC. 4. Section 11346.3 of the Government Code is amended to read:
11346.3. (a) State agencies proposing to adopt, amend, or repeal
any administrative regulation shall assess the potential for adverse
economic impact on California business enterprises and individuals,
avoiding the imposition of unnecessary or unreasonable regulations or
reporting, recordkeeping, or compliance requirements. For purposes
of this subdivision, assessing the potential for adverse economic
impact shall require agencies, when proposing to adopt, amend, or
repeal a regulation, to adhere to the following requirements, to the
extent that these requirements do not conflict with other state or
federal laws:
(1) The proposed adoption, amendment, or repeal of a regulation
shall be based on adequate information concerning the need for, and
consequences of, proposed governmental action.
(2) The state agency, prior to submitting a proposal to adopt,
amend, or repeal a regulation to the office, shall consider the
proposal's impact on business, with consideration of industries
affected including the ability of California businesses to compete
with businesses in other states. For purposes of evaluating the
impact on the ability of California businesses to compete with
businesses in other states, an agency shall consider, but not be
limited to, information supplied by interested parties.
(3) An economic assessment prepared pursuant to this subdivision
for a proposed regulation that is not a major regulation or that is a
major regulation proposed prior to November 1, 2013, shall be
prepared in accordance with subdivision (b). An economic assessment
prepared pursuant to this subdivision for a major regulation proposed
on or after November 1, 2013, shall be prepared in accordance with
subdivision (c), and shall be included in the initial statement of
reasons as required by Section 11346.2.
(b) (1) All state agencies proposing to adopt, amend, or repeal a
regulation that is not a major regulation or that is a major
regulation proposed prior to November 1, 2013, shall prepare an
economic impact assessment that assesses whether and to what extent
it will affect the following:
(A) The creation or elimination of jobs within the state.
(B) The creation of new businesses or the elimination of existing
businesses within the state.
(C) The expansion of businesses currently doing business within
the state.
(D) The benefits of the regulation to the health and welfare of
California residents, worker safety, and the state's environment.
(2) This subdivision does not apply to the University of
California, the Hastings College of the Law, or the Fair Political
Practices Commission.
(3) Information required from state agencies for the purpose of
completing the assessment may come from existing state publications.
(c) (1) Each state agency proposing to adopt, amend, or repeal a
major regulation on or after November 1, 2013, shall prepare a
standardized regulatory impact analysis in the manner prescribed by
the Department of Finance pursuant to Section 11346.36. The
standardized regulatory impact analysis shall address all of the
following:
(A) The creation or elimination of jobs within the state.
(B) The creation of new businesses or the elimination of existing
businesses within the state, including the impact on sole
proprietorships and small businesses, as defined in Section
11342.610.
(C) The competitive advantages or disadvantages for businesses
currently doing business within the state.
(D) The increase or decrease of investment in the state.
(E) The incentives for innovation in products, materials, or
processes.
(F) The benefits of the regulations, including, but not limited
to, benefits to the health, safety, and welfare of California
residents, worker safety, and the state's environment and quality of
life, among any other benefits identified by the agency.
(2) This subdivision shall not apply to the University of
California, the Hastings College of the Law, or the Fair Political
Practices Commission.
(3) Information required from state agencies for the purpose of
completing the analysis may be derived from existing state, federal,
or academic publications.
(d) Any administrative regulation adopted on or after January 1,
1993, that requires a report shall not apply to businesses, unless
the state agency adopting the regulation makes a finding that it is
necessary for the health, safety, or welfare of the people of the
state that the regulation apply to businesses.
(e) Analyses conducted pursuant to this section are intended to
provide agencies and the public with tools to determine whether the
regulatory proposal is an efficient and effective means of
implementing the policy decisions enacted in statute or by other
provisions of law in the least burdensome manner. Regulatory impact
analyses shall inform the agencies and the public of the economic
consequences of regulatory choices, not reassess statutory policy.
The baseline for the regulatory analysis shall be the most
cost-effective set of regulatory measures that are equally effective
in achieving the purpose of the regulation in a manner that ensures
full compliance with the authorizing statute or other law being
implemented or made specific by the proposed regulation.
(f) Each state agency proposing to adopt, amend, or repeal a major
regulation on or after November 1, 2013, and that has prepared a
standardized regulatory impact analysis pursuant to subdivision (c),
shall submit that analysis to the Department of Finance upon
completion. The department shall comment, within 30 days of receiving
that analysis, on the extent to which the analysis adheres to the
regulations adopted pursuant to Section 11346.36. Upon receiving the
comments from the department, the agency may update its analysis to
reflect any comments received from the department and shall summarize
the comments and the response of the agency along with a statement
of the results of the updated analysis for the statement required by
paragraph (10) of subdivision (a) of Section 11346.5.
SEC. 4.5. Section 11346.3 of the Government Code is amended to
read:
11346.3. (a) A state agency proposing to adopt, amend, or repeal
any administrative regulation shall assess the potential for adverse
economic impact on California business enterprises and individuals,
avoiding the imposition of unnecessary or unreasonable regulations or
reporting, recordkeeping, or compliance requirements. For purposes
of this subdivision, assessing the potential for adverse economic
impact shall require agencies, when proposing to adopt, amend, or
repeal a regulation, to adhere to the following requirements, to the
extent that these requirements do not conflict with other state or
federal laws:
(1) The proposed adoption, amendment, or repeal of a regulation
shall be based on adequate information concerning the need for, and
consequences of, proposed governmental action.
(2) The state agency, prior to submitting a proposal to adopt,
amend, or repeal a regulation to the office, shall consider the
proposal's impact on business, with consideration of industries
affected including the ability of California businesses to compete
with businesses in other states. For purposes of evaluating the
impact on the ability of California businesses to compete with
businesses in other states, an agency shall consider, but not be
limited to, information supplied by interested parties.
(3) An economic impact assessment prepared pursuant to this
subdivision for a proposed regulation that is not a major regulation
or that is a major regulation proposed prior to November 1, 2013,
shall be prepared in accordance with subdivision (b), and shall be
included in the initial statement of reasons as required by Section
11346.2. An economic assessment prepared pursuant to this subdivision
for a major regulation proposed on or after November 1, 2013, shall
be prepared in accordance with subdivision (c), and shall be included
in the initial statement of reasons as required by Section 11346.2.
(b) (1) A state agency proposing to adopt, amend, or repeal a
regulation that is not a major regulation or that is a major
regulation proposed prior to November 1, 2013, shall prepare an
economic impact assessment that assesses whether and to what extent
it will affect the following:
(A) The creation or elimination of jobs within the state.
(B) The creation of new businesses or the elimination of existing
businesses within the state.
(C) The expansion of businesses currently doing business within
the state.
(D) The benefits of the regulation to the health and welfare of
California residents, worker safety, and the state's environment.
(2) This subdivision does not apply to the University of
California, the Hastings College of the Law, or the Fair Political
Practices Commission.
(3) Information required from a state agency for the purpose of
completing the assessment may come from existing state publications.
(c) (1) Each state agency proposing to adopt, amend, or repeal a
major regulation on or after November 1, 2013, shall prepare a
standardized regulatory impact analysis in the manner prescribed by
the Department of Finance pursuant to Section 11346.36. The
standardized regulatory impact analysis shall address all of the
following:
(A) The creation or elimination of jobs within the state.
(B) The creation of new businesses or the elimination of existing
businesses within the state, including the impact on sole
proprietorships and small businesses, as defined in Section
11342.610.
(C) The competitive advantages or disadvantages for businesses
currently doing business within the state.
(D) The increase or decrease of investment in the state.
(E) The incentives for innovation in products, materials, or
processes.
(F) The benefits of the regulations, including, but not limited
to, benefits to the health, safety, and welfare of California
residents, worker safety, and the state's environment and quality of
life, among any other benefits identified by the agency.
(2) This subdivision shall not apply to the University of
California, the Hastings College of the Law, or the Fair Political
Practices Commission.
(3) Information required from state agencies for the purpose of
completing the analysis may be derived from existing state, federal,
or academic publications.
(d) Any administrative regulation adopted on or after January 1,
1993, that requires a report shall not apply to businesses, unless
the state agency adopting the regulation makes a finding that it is
necessary for the health, safety, or welfare of the people of the
state that the regulation apply to businesses.
(e) Analyses conducted pursuant to this section are intended to
provide agencies and the public with tools to determine whether the
regulatory proposal is an efficient and effective means of
implementing the policy decisions enacted in statute or by other
provisions of law in the least burdensome manner. Regulatory impact
analyses shall inform the agencies and the public of the economic
consequences of regulatory choices, not reassess statutory policy.
The baseline for the regulatory analysis shall be the most
cost-effective set of regulatory measures that are equally effective
in achieving the purpose of the regulation in a manner that ensures
full compliance with the authorizing statute or other law being
implemented or made specific by the proposed regulation.
(f) Each state agency proposing to adopt, amend, or repeal a major
regulation on or after November 1, 2013, and that has prepared a
standardized regulatory impact analysis pursuant to subdivision (c),
shall submit that analysis to the Department of Finance upon
completion. The department shall comment, within 30 days of receiving
that analysis, on the extent to which the analysis adheres to the
regulations adopted pursuant to Section 11346.36. Upon receiving the
comments from the department, the agency may update its analysis to
reflect any comments received from the department and shall summarize
the comments and the response of the agency along with a statement
of the results of the updated analysis for the statement required by
paragraph (10) of subdivision (a) of Section 11346.5.
SEC. 5. Section 11346.5 of the Government Code is amended to read:
11346.5. (a) The notice of proposed adoption, amendment, or
repeal of a regulation shall include the following:
(1) A statement of the time, place, and nature of proceedings for
adoption, amendment, or repeal of the regulation.
(2) Reference to the authority under which the regulation is
proposed and a reference to the particular code sections or other
provisions of law that are being implemented, interpreted, or made
specific.
(3) An informative digest drafted in plain English in a format
similar to the Legislative Counsel's digest on legislative bills. The
informative digest shall include the following:
(A) A concise and clear summary of existing laws and regulations,
if any, related directly to the proposed action and of the effect of
the proposed action.
(B) If the proposed action differs substantially from an existing
comparable federal regulation or statute, a brief description of the
significant differences and the full citation of the federal
regulations or statutes.
(C) A policy statement overview explaining the broad objectives of
the regulation and the specific benefits anticipated by the proposed
adoption, amendment, or repeal of a regulation, including, to the
extent applicable, nonmonetary benefits such as the protection of
public health and safety, worker safety, or the environment, the
prevention of discrimination, the promotion of fairness or social
equity, and the increase in openness and transparency in business and
government, among other things.
(D) An evaluation of whether the proposed regulation is
inconsistent or incompatible with existing state regulations.
(4) Any other matters as are prescribed by statute applicable to
the specific state agency or to any specific regulation or class of
regulations.
(5) A determination as to whether the regulation imposes a mandate
on local agencies or school districts and, if so, whether the
mandate requires state reimbursement pursuant to Part 7 (commencing
with Section 17500) of Division 4.
(6) An estimate, prepared in accordance with instructions adopted
by the Department of Finance, of the cost or savings to any state
agency, the cost to any local agency or school district that is
required to be reimbursed under Part 7 (commencing with Section
17500) of Division 4, other nondiscretionary cost or savings imposed
on local agencies, and the cost or savings in federal funding to the
state.
For purposes of this paragraph, "cost or savings" means additional
costs or savings, both direct and indirect, that a public agency
necessarily incurs in reasonable compliance with regulations.
(7) If a state agency, in proposing to adopt, amend, or repeal any
administrative regulation, makes an initial determination that the
action may have a significant, statewide adverse economic impact
directly affecting business, including the ability of California
businesses to compete with businesses in other states, it shall
include the following information in the notice of proposed action:
(A) Identification of the types and size of businesses that would
be affected.
(B) A description of the projected reporting, recordkeeping, and
other compliance requirements that would result from the proposed
action.
(C) The following statement: "The (name of agency) has made an
initial determination that the (adoption/amendment/repeal) of this
regulation may have a significant, statewide adverse economic impact
directly affecting business, including the ability of California
businesses to compete with businesses in other states. The (name of
agency) (has/has not) considered proposed alternatives that would
lessen any adverse economic impact on business and invites you to
submit proposals. Submissions may include the following
considerations:
(i) The establishment of differing compliance or reporting
requirements or timetables that take into account the resources
available to differing size of businesses.
(ii) Consolidation or simplification of compliance and reporting
requirements for differing size of businesses.
(iii) The use of performance standards rather than prescriptive
standards.
(iv) Exemption or partial exemption from the regulatory
requirements for differing size of businesses."
(8) If a state agency, in adopting, amending, or repealing any
administrative regulation, makes an initial determination that the
action will not have a significant, statewide adverse economic impact
directly affecting business, including the ability of California
businesses to compete with businesses in other states, it shall make
a declaration to that effect in the notice of proposed action. In
making this declaration, the agency shall provide in the record
facts, evidence, documents, testimony, or other evidence upon which
the agency relies to support its initial determination.
An agency's initial determination and declaration that a proposed
adoption, amendment, or repeal of a regulation may have or will not
have a significant, adverse impact on businesses, including the
ability of California businesses to compete with businesses in other
states, shall not be grounds for the office to refuse to publish the
notice of proposed action.
(9) A description of all cost impacts, known to the agency at the
time the notice of proposed action is submitted to the office, that a
representative private person or business would necessarily incur in
reasonable compliance with the proposed action.
If no cost impacts are known to the agency, it shall state the
following:
"The agency is not aware of any cost impacts that a representative
private person or business would necessarily incur in reasonable
compliance with the proposed action."
(10) A statement of the results of the economic impact assessment
required by subdivision (b) of Section 11346.3 or the standardized
regulatory impact analysis if required by subdivision (c) of Section
11346.3, a summary of any comments submitted to the agency pursuant
to subdivision (f) of Section 11346.3 and the agency's response to
those comments.
(11) The finding prescribed by subdivision (d) of Section 11346.3,
if required.
(12) (A) A statement that the action would have a significant
effect on housing costs, if a state agency, in adopting, amending, or
repealing any administrative regulation, makes an initial
determination that the action would have that effect.
(B) The agency officer designated in paragraph (14) shall make
available to the public, upon request, the agency's evaluation, if
any, of the effect of the proposed regulatory action on housing
costs.
(C) The statement described in subparagraph (A) shall also include
the estimated costs of compliance and potential benefits of a
building standard, if any, that were included in the initial
statement of reasons.
(D) For purposes of model codes adopted pursuant to Section 18928
of the Health and Safety Code, the agency shall comply with the
requirements of this paragraph only if an interested party has made a
request to the agency to examine a specific section for purposes of
estimating the costs of compliance and potential benefits for that
section, as described in Section 11346.2.
(13) A statement that the adopting agency must determine that no
reasonable alternative considered by the agency or that has otherwise
been identified and brought to the attention of the agency would be
more effective in carrying out the purpose for which the action is
proposed, would be as effective and less burdensome to affected
private persons than the proposed action, or would be more cost
effective to affected private persons and equally effective in
implementing the statutory policy or other provision of law. For a
major regulation, as defined by Section 11342.548, proposed on or
after November 1, 2013, the statement shall be based, in part, upon
the standardized regulatory impact analysis of the proposed
regulation, as required by Section 11346.3, as well as upon the
benefits of the proposed regulation identified pursuant to
subparagraph (C) of paragraph (3).
(14) The name and telephone number of the agency representative
and designated backup contact person to whom inquiries concerning the
proposed administrative action may be directed.
(15) The date by which comments submitted in writing must be
received to present statements, arguments, or contentions in writing
relating to the proposed action in order for them to be considered by
the state agency before it adopts, amends, or repeals a regulation.
(16) Reference to the fact that the agency proposing the action
has prepared a statement of the reasons for the proposed action, has
available all the information upon which its proposal is based, and
has available the express terms of the proposed action, pursuant to
subdivision (b).
(17) A statement that if a public hearing is not scheduled, any
interested person or his or her duly authorized representative may
request, no later than 15 days prior to the close of the written
comment period, a public hearing pursuant to Section 11346.8.
(18) A statement indicating that the full text of a regulation
changed pursuant to Section 11346.8 will be available for at least 15
days prior to the date on which the agency adopts, amends, or
repeals the resulting regulation.
(19) A statement explaining how to obtain a copy of the final
statement of reasons once it has been prepared pursuant to
subdivision (a) of Section 11346.9.
(20) If the agency maintains an Internet Web
site or other similar forum for the electronic publication or
distribution of written material, a statement explaining how
materials published or distributed through that forum can be
accessed.
(21) If the proposed regulation is subject to Section 11346.6, a
statement that the agency shall provide, upon request, a description
of the proposed changes included in the proposed action, in the
manner provided by Section 11346.6, to accommodate a person with a
visual or other disability for which effective communication is
required under state or federal law and that providing the
description of proposed changes may require extending the period of
public comment for the proposed action.
(b) The agency representative designated in paragraph (14) of
subdivision (a) shall make available to the public upon request the
express terms of the proposed action. The representative shall also
make available to the public upon request the location of public
records, including reports, documentation, and other materials,
related to the proposed action. If the representative receives an
inquiry regarding the proposed action that the representative cannot
answer, the representative shall refer the inquiry to another person
in the agency for a prompt response.
(c) This section shall not be construed in any manner that results
in the invalidation of a regulation because of the alleged
inadequacy of the notice content or the summary or cost estimates, or
the alleged inadequacy or inaccuracy of the housing cost estimates,
if there has been substantial compliance with those requirements.
SEC. 6. Section 4.5 of this bill incorporates amendments to
Section 11346.3 of the Government Code proposed by both this bill and
Assembly Bill 1711. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2015, (2)
each bill amends Section 11346.3 of the Government Code, and (3) this
bill is enacted after Assembly Bill 1711, in which case Section 4 of
this bill shall not become operative.
