Bill Text: CA SB400 | 2011-2012 | Regular Session | Introduced

California Senate Bill 400 (Prior Session Legislation)

Introduced

Bill Title: Regulations: impact on businesses.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB400 Detail]

Download: California-2011-SB400-Introduced.html

BILL NUMBER: SB 400	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Dutton

                        FEBRUARY 16, 2011

   An act to amend Section 11346.3 of the Government Code, relating
to regulations.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 400, as introduced, Dutton. Regulations: impact on businesses.
   Existing law, 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. Existing law requires an agency that is
proposing to adopt, amend, or repeal a regulation to perform an
assessment of the potential for adverse economic impact on California
business enterprises and individuals, as specified.
   This bill would require that the impact assessment include
specified additional criteria. The bill would also require the agency
to submit economic assessments for certain regulations to the office
for purposes of reviewing them and determining whether the
assessment is based upon sound economic knowledge, methods, and
practices, as specified. The bill would also require the office to
reject a regulation that is based upon an economic assessment that
was determined to not be based on sound economic knowledge, methods,
and practices, as specified.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  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
  estimate  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
  do the following: 
    (A)     Assess whether  and to what
extent it will affect the following: 
   (A) 
    (i)  The short-term and long-term  creation or
elimination of jobs  in individual sectors  within the State
of California. 
   (B) 
    (ii)  The creation of new businesses or the elimination
of existing businesses within the State of California. 
   (C) 
    (iii   )  The expansion of businesses currently
doing business within the State of California. 
   (iv) The cost of enforcement to the agency and regulated entities.
 
   (B) Assess whether the proposed regulation is inconsistent or
incompatible with, or duplicative of, the regulations of the agency
or other federal, state, or local regulatory entity.  
   (C) Make a determination, with supporting information, that no
alternative considered by the agency would be more effective in
carrying out the purpose for which the regulation is proposed or
would be 9 equally effective and less burdensome to effected private
persons than the proposed regulation.  
   (D) An explanation setting forth the reasons for rejecting any
proposed alternatives that would lessen the adverse economic impact
on small businesses. 
   (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) Prior to releasing a notice of proposed action as
described by Section 11346.5, the agency shall submit the assessment
required by this section to the office. For purposes of a proposed
regulation with an estimated impact of one hundred million dollars
($100,000,000) or more, the office shall review the economic
assessment and determine, within 30 days, whether it is based upon
sound economic knowledge, methods, and practices. The office shall be
authorized to contract with a third-party reviewer to conduct the
review in the manner described in this paragraph and adopt the
findings of that third-party reviewer.  
   (2) A stakeholder may petition the office to review the assessment
for a proposed regulation that has an estimated cost below one
hundred million dollars ($1000,000,000). The director of the office
shall be authorized, in his or her sole discretion, to approve or
deny the petition. If the petition is approved, the assessment shall
be reviewed in the same manner prescribed by paragraph (1). 

   (e) Pursuant to Section 11349.3, the office shall not approve a
regulation that does not satisfy the requirements of this section,
including, but not limited to, conducting the assessment required by
subdivisions (a) and (b) and the review of the assessment required by
subdivision (d). The office shall also reject a regulation that is
submitted to the office for approval, if the office determined, based
on the assessment review it conducted or the assessment review
conducted by a third-party reviewer and adopted by the office, that
the assessment was not based upon sound economic knowledge, methods,
and practices, and the submitting agency did not revise its
assessment to address the deficiencies.