Bill Text: CA AB530 | 2011-2012 | Regular Session | Amended


Bill Title: Regulations: economic and technical information.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB530 Detail]

Download: California-2011-AB530-Amended.html
BILL NUMBER: AB 530	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Smyth

                        FEBRUARY 15, 2011

   An act to amend  Section 9147.7   Sections
11346.2, 11346.3, and 11346.5  of the Government Code, relating
to state government.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 530, as amended, Smyth.  Joint Sunset Review Committee:
agency repeal.   Regulations: economic and technical
information.  
   The Administrative Procedure Act governs the procedure 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. The act requires an agency, as part of the
regulatory adoption process, to assess the potential for adverse
economic impact on California business enterprises and individuals,
as specified. The act requires an agency that seeks to adopt, amend,
or repeal a regulation to release a notice of proposed action with
prescribed information, including specified information regarding
adverse economic impacts. The act requires an agency to file with the
office, when it files the notice of proposed action, an initial
statement of reasons that includes, among other things, a description
of reasonable alternatives to the proposed regulation and the agency'
s reason for rejecting the alternatives, as specified.  
   This bill would require the initial statement of reasons to also
identify each document, including, but not limited to, technical,
theoretical, and empirical studies, reports, or similar documents,
upon which the agency relied in rejecting each reasonable
alternative. The bill would prohibit an agency from rejecting a
reasonable alternative unless the statement of reasons includes at
least one of these documents. The bill would also repeal a provision
that authorizes the agency to avoid having to artificially construct
alternatives, describe unreasonable alternatives, or justify why it
did not describe alternatives.  
   The bill would require an agency to determine whether a proposed
regulation will have a significant adverse economic impact by
completing an economic impact statement, using a form developed by
the Department of Finance, as specified. The bill would require the
agency to post the economic impact statement, including specified
supporting information, on the agency's Internet Web site and include
it as part of the rulemaking file, as specified. The bill would
require that the notice of proposed action include a notice that
describes how the public may obtain access to the economic impact
statement, including the supporting information, on the agency
Internet Web site or in hard copy, as specified.  
   Existing law establishes the Joint Sunset Review Committee to
identify and eliminate waste, duplication, and inefficiency in
government agencies by conducting a comprehensive analysis of every
"eligible agency," as defined, to determine if an agency scheduled
for repeal is still necessary and cost effective.  
   This bill would make a technical, nonsubstantive change to that
provision. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 11346.2 of the   
 Government Code   , as amended by Section 1 of Chapter
398 of the Statutes of 2010, is amended to read: 
   11346.2.  Every agency subject to this chapter shall prepare,
submit to the office with the notice of the proposed action as
described in Section 11346.5, and make available to the public upon
request, all of the following:
   (a) A copy of the express terms of the proposed regulation.
   (1) The agency shall draft the regulation in plain,
straightforward language, avoiding technical terms as much as
possible, and using a coherent and easily readable style. The agency
shall draft the regulation in plain English.
   (2) The agency shall include a notation following the express
terms of each California Code of Regulations section, listing the
specific statutes or other provisions of law authorizing the adoption
of the regulation and listing the specific statutes or other
provisions of law being implemented, interpreted, or made specific by
that section in the California Code of Regulations.
   (3) The agency shall use underline or italics to indicate
additions to, and strikeout to indicate deletions from, the
California Code of Regulations.
   (b) An initial statement of reasons for proposing the adoption,
amendment, or repeal of a regulation. This statement of reasons shall
include, but not be limited to, all of the following:
   (1) A statement of the specific purpose of each adoption,
amendment, or repeal and the rationale for the determination by the
agency that each adoption, amendment, or repeal is reasonably
necessary to carry out the purpose for which it is proposed. Where
the adoption or amendment of a regulation would mandate the use of
specific technologies or equipment, a statement of the reasons why
the agency believes these mandates or prescriptive standards are
required.
   (2) An identification of each technical, theoretical, and
empirical study, report, or similar document, if any, upon which the
agency relies in proposing the adoption, amendment, or repeal of a
regulation.
   (3) (A) A description of reasonable alternatives to the regulation
and the agency's reasons for rejecting those alternatives. In the
case of a regulation that would mandate the use of specific
technologies or equipment or prescribe specific actions or
procedures, the imposition of performance standards shall be
considered as an alternative.
   (B) A description of reasonable alternatives to the regulation
that would lessen any adverse impact on small business and the agency'
s reasons for rejecting those alternatives. 
   (C) Notwithstanding subparagraph (A) or (B), an agency is not
required to artificially construct alternatives, describe
unreasonable alternatives, or justify why it has not described
alternatives.  
   (C) The identification of all documents, including, but not
limited to, technical, theoretical, and empirical studies, reports,
or similar documents, upon which the agency relied in rejecting each
reasonable alternative described in this paragraph. For purposes of
this paragraph, an agency shall not be permitted to reject a
reasonable alternative unless the statement of reasons includes at
least one document for each rejected reasonable alternative. 
   (4) Facts, evidence, documents, testimony, or other evidence on
which the agency relies to support an initial determination that the
action will not have a significant adverse economic impact on
business.
   (5) A department, board, or commission within the Environmental
Protection Agency, the Resources Agency, or the Office of the State
Fire Marshal shall describe its efforts, in connection with a
proposed rulemaking action, to avoid unnecessary duplication or
conflicts with federal regulations contained in the Code of Federal
Regulations addressing the same issues. These agencies may adopt
regulations different from federal regulations contained in the Code
of Federal Regulations addressing the same issues upon a finding of
one or more of the following justifications:
   (A) The differing state regulations are authorized by law.
   (B) The cost of differing state regulations is justified by the
benefit to human health, public safety, public welfare, or the
environment.
   (c) A state agency that adopts or amends a regulation mandated by
federal law or regulations, the provisions of which are identical to
a previously adopted or amended federal regulation, shall be deemed
to have complied with subdivision (b) if a statement to the effect
that a federally mandated regulation or amendment to a regulation is
being proposed, together with a citation to where an explanation of
the provisions of the regulation can be found, is included in the
notice of proposed adoption or amendment prepared pursuant to Section
11346.5. However, the agency shall comply fully with this chapter
with respect to any provisions in the regulation that the agency
proposes to adopt or amend that are different from the corresponding
provisions of the federal regulation.
   (d) This section shall be inoperative from January 1, 2012, until
January 1, 2014.
   SEC. 2.    Section 11346.2 of the  
Government Code   ,   as added by Section 2 of
Chapter 398 of the Statutes of 2010, is amended to read: 
   11346.2.  Every agency subject to this chapter shall prepare,
submit to the office with the notice of the proposed action as
described in Section 11346.5, and make available to the public upon
request, all of the following:
   (a) A copy of the express terms of the proposed regulation.
   (1) The agency shall draft the regulation in plain,
straightforward language, avoiding technical terms as much as
possible, and using a coherent and easily readable style. The agency
shall draft the regulation in plain English.
   (2) The agency shall include a notation following the express
terms of each California Code of Regulations section, listing the
specific statutes or other provisions of law authorizing the adoption
of the regulation and listing the specific statutes or other
provisions of law being implemented, interpreted, or made specific by
that section in the California Code of Regulations.
   (3) The agency shall use underline or italics to indicate
additions to, and strikeout to indicate deletions from, the
California Code of Regulations.
   (b) An initial statement of reasons for proposing the adoption,
amendment, or repeal of a regulation. This statement of reasons shall
include, but not be limited to, all of the following:
   (1) A statement of the specific purpose of each adoption,
amendment, or repeal and the rationale for the determination by the
agency that each adoption, amendment, or repeal is reasonably
necessary to carry out the purpose for which it is proposed.
   (2) An identification of each technical, theoretical, and
empirical study, report, or similar document, if any, upon which the
agency relies in proposing the adoption, amendment, or repeal of a
regulation.
   (3) Where the adoption or amendment of a regulation would mandate
the use of specific technologies or equipment, a statement of the
reasons why the agency believes these mandates or prescriptive
standards are required.
   (4) (A) A description of reasonable alternatives to the regulation
and the agency's reasons for rejecting those alternatives.
   (B) A description of any performance standard that was considered
as an alternative. In the case of a regulation that would mandate the
use of specific technologies or equipment or prescribe specific
actions or procedures, the imposition of performance standards shall
be considered as an alternative.
   (C) A description of reasonable alternatives to the regulation
that would lessen any adverse impact on small business and the agency'
s reasons for rejecting those alternatives. 
   (D) Notwithstanding subparagraph (A), (B), or (C), an agency is
not required to artificially construct alternatives, describe
unreasonable alternatives, or justify why it has not described
alternatives.  
   (D) The identification of all documents, including, but not
limited to, technical, theoretical, and empirical studies, reports,
or similar documents, upon which the agency relied in rejecting each
reasonable alternative described in this paragraph. For purposes of
this paragraph, an agency shall not be permitted to reject a
reasonable alternative unless the statement of reasons includes at
least one document for each rejected reasonable alternative. 
   (5) Facts, evidence, documents, testimony, or other evidence on
which the agency relies to support an initial determination that the
action will not have a significant adverse economic impact on
business.
   (6) A department, board, or commission within the Environmental
Protection Agency, the Resources Agency, or the Office of the State
Fire Marshal shall describe its efforts, in connection with a
proposed rulemaking action, to avoid unnecessary duplication or
conflicts with federal regulations contained in the Code of Federal
Regulations addressing the same issues. These agencies may adopt
regulations different from federal regulations contained in the Code
of Federal Regulations addressing the same issues upon a finding of
one or more of the following justifications:
   (A) The differing state regulations are authorized by law.
   (B) The cost of differing state regulations is justified by the
benefit to human health, public safety, public welfare, or the
environment.
   (c) A state agency that adopts or amends a regulation mandated by
federal law or regulations, the provisions of which are identical to
a previously adopted or amended federal regulation, shall be deemed
to have complied with subdivision (b) if a statement to the effect
that a federally mandated regulation or amendment to a regulation is
being proposed, together with a citation to where an explanation of
the provisions of the regulation can be found, is included in the
notice of proposed adoption or amendment prepared pursuant to Section
11346.5. However, the agency shall comply fully with this chapter
with respect to any provisions in the regulation that the agency
proposes to adopt or amend that are different from the corresponding
provisions of the federal regulation.
   (d) This section shall become operative on January 1, 2012.
   (e) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.
   SEC. 3.    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. 
   It is not the intent of this section to impose additional criteria
on agencies, above that which exists in current law, in assessing
adverse economic impact on California business enterprises, but only
to assure that the assessment is made early in the process of
initiation and development of a proposed adoption, amendment, or
repeal of a regulation. 
   (b) (1) All state agencies proposing to adopt, amend, or repeal
any administrative regulations shall assess whether and to what
extent it will affect the following:
   (A) The creation or elimination of jobs within the State of
California.
   (B) The creation of new businesses or the elimination of existing
businesses within the State of California.
   (C) The expansion of businesses currently doing business within
the State of California.
   (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) No administrative regulation adopted on or after January 1,
1993, that requires a report shall 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. 
   (d) (1) The agency shall determine whether the proposed regulation
will have a significant adverse economic impact by completing an
economic impact statement, using a form developed by the Department
of Finance that is consistent with the requirements of this section.
 
   (2) The economic impact statement shall identify, among other
things, whether and to what extent the proposed regulation will do
any the following:  
   (A) Adversely impact small businesses, businesses, employees of
businesses, private individuals, jobs or occupations, or California
competitiveness, which includes, but is not limited to, adversely
impacting the ability of California businesses to compete with other
states by making it more costly to produce goods or services in this
state.  
   (B) Adversely impact the private sector by imposing reporting
requirements or imposing prescriptive requirements instead of
performance standards.  
   (3) Each response provided on the economic impact statement shall
be supported by facts, evidence, documents, testimony, or other
support, including assumptions and calculations, that a reasonable
person, in light of these items, would accept as adequate to support
the conclusions of the economic assessment.  
   (4) (A) If the economic impact statement identifies an adverse
impact to any of the areas described in subparagraph (A) or (B) of
paragraph (2), then the regulation shall be deemed to have a
significant statewide adverse economic impact for purposes of
paragraph (7) of subdivision (a) of Section 11346.5.  
   (B) If the economic impact statement does not identify an adverse
impact to any of the areas described in subparagraph (A) or (B) of
paragraph (2), then the regulation shall be deemed to not have a
significant statewide adverse economic impact for purposes of
paragraph (8) of subdivision (a) of Section 11346.5.  
   (5) The economic impact statement, including any supporting facts,
evidence, documents, testimony, or other support, including
assumptions and calculations, shall be posted on the Internet Web
site of the agency, in a format that can be downloaded
electronically, no later than the day on which the notice of proposed
action is released pursuant to Section 11346.4. The economic impact
statement and supporting information shall also be included in the
rulemaking record, which shall be publicly available in the manner
prescribed by Section 11347.3. If an agency lacks the technological
capacity to post the information on its Internet Web site as required
by this paragraph, then the agency shall post a statement on the
Internet Web site describing how a person can obtain a copy of the
economic impact statement and supporting information pursuant to
Section 11347.3.  
   (6) The Department of Finance shall not be required to revise the
economic impact statement included on Department of Finance standard
form 399, in existence on January 1, 2012, to comply with
requirements of this subdivision. The Legislature finds and declares
that the economic impact statement contained in standard form 399
provides sufficient information for an agency to comply with the
requirements of this subdivision. 
   SEC. 4.    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, if appropriate, the specific objectives.
   (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  ,
pursuant to subdivision (d) of Section 11346.3,  that the action
 may have   has  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 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 businesses.
   (ii) Consolidation or simplification of compliance and reporting
requirements for businesses.
   (iii) The use of performance standards rather than prescriptive
standards.
   (iv) Exemption or partial exemption from the regulatory
requirements for businesses."
   (8) If a state agency, in adopting, amending, or repealing any
administrative regulation, makes an initial determination  ,
pursuant to subdivision (d) of Section 11346.3,  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)    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 
    (B)     If the economic impact statement
described in subdivision (d) of Section 11346.3 demonstrates that
 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." 
   (C) A statement describing how the public may obtain access to the
economic impact statement, including the supporting information, on
the agency Internet Web site or in hard copy, in the manner
prescribed in paragraph (5) of subdivision (d) of Section 11346.3.

   (10) A statement of the results of the assessment required by
subdivision (b) of Section 11346.3.
   (11) The finding prescribed by subdivision (c) of Section 11346.3,
if required.
   (12) 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. In addition,
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.
   (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 or would be as effective and less burdensome to affected
private persons than the proposed action.
   (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.
   (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.

  SECTION 1.    Section 9147.7 of the Government
Code is amended to read:
         9147.7.  (a) For the purpose of this section, "eligible
agency" means an agency, authority, board, bureau, commission,
conservancy, council, department, division, or office of state
government, however denominated, excluding an agency that is
constitutionally created or an agency related to postsecondary
education, for which a date for repeal has been established by
statute on or after January 1, 2011.
   (b) The Joint Sunset Review Committee is hereby created to
identify and eliminate waste, duplication, and inefficiency in
government agencies. The purpose of the committee is to conduct a
comprehensive analysis over 15 years, and on a periodic basis
thereafter, of every eligible agency to determine if the agency is
still necessary and cost effective.
   (c) Each eligible agency scheduled for repeal shall submit to the
committee, on or before December 1 prior to the year it is set to be
repealed, a complete agency report covering the entire period since
last reviewed, including, but not limited to, the following:
   (1) The purpose and necessity of the agency.
   (2) A description of the agency budget, priorities, and job
descriptions of employees of the agency.
   (3) Any programs and projects under the direction of the agency.
   (4) Measures of the success or failures of the agency and
justifications for the metrics used to evaluate successes and
failures.
   (5) Any recommendations of the agency for changes or
reorganization in order to better fulfill its purpose.
   (d) The committee shall take public testimony and evaluate the
eligible agency prior to the date the agency is scheduled to be
repealed. An eligible agency shall be eliminated unless the
Legislature enacts a law to extend, consolidate, or reorganize the
eligible agency. No eligible agency shall be extended in perpetuity
unless specifically exempted from the provisions of this section. The
committee may recommend that the Legislature extend the statutory
sunset date for no more than one year to allow the committee more
time to evaluate the eligible agency.
   (e) The committee shall be comprised of 10 members of the
Legislature. The Senate Committee on Rules shall appoint five members
of the Senate to the committee, not more than three of whom shall be
members of the same political party. The Speaker of the Assembly
shall appoint five members of the Assembly to the committee, not more
than three of whom shall be members of the same political party.
Members shall be appointed within 15 days after the commencement of
the regular session. Each member of the committee who is appointed by
the Senate Committee on Rules or the Speaker of the Assembly shall
serve during that committee member's term of office or until that
committee member no longer is a Member of the Senate or the Assembly,
whichever is applicable. A vacancy on the committee shall be filled
in the same manner as the original appointment. Three Assembly
Members and three Senators who are members of the committee shall
constitute a quorum for the conduct of committee business. Members of
the committee shall receive no compensation for their work with the
committee.
   (f) The committee shall meet not later than 30 days after the
first day of the regular session to choose a chairperson and to
establish the schedule for eligible agency review provided for in the
statutes governing the eligible agencies. The chairperson of the
committee shall alternate every two years between a Member of the
Senate and a Member of the Assembly, and the vice chairperson of the
committee shall be a member of the opposite house as the chairperson.

   (g) This section shall not be construed to change the existing
jurisdiction of the budget or policy committees of the Legislature.
                                
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