California Senate Bill SB688 Latest Draft

 BILL NUMBER: SB 688AMENDED BILL TEXT AMENDED IN SENATE MARCH 29, 2011 INTRODUCED BY Senator Wright FEBRUARY 18, 2011 An act to amend Sections 11343.4 and 11346.3 of the Government Code, relating to regulations. LEGISLATIVE COUNSEL'S DIGEST SB 688, as amended, Wright. Regulations: legislative approval. 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 the agency to assess the potential for adverse economic impact on California business enterprises and individuals, as specified. Existing law provides that a regulation shall become effective 30 days after the date it is filed with the Secretary of State, as specified. This bill would also require an agency to produce, as part of the required impact assessment, a detailed estimate of the  total actual costs of compliance   cumulative statewide cost impacts  for affected businesses  and individuals  . This bill would require the agency to notify specified committees of the Legislature if the estimated  total costs of compliance exceed an unspecified amount   cumulative statewide cost impacts for affected businesses exceed   $10,000,000  , as specified. This bill would require that a regulation that has an estimated  total cost of compliance in excess of an unspecified amount   cumulative statewide cost impact for affected businesses that exceed $10,000,000  not take effect until January 1, next, one year following the date that the regulation is filed with the Secretary of State. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 11343.4 of the Government Code is amended to read: 11343.4. (a) Except as provided in subdivision (b), a regulation or an order of repeal required to be filed with the Secretary of State shall become effective on the 30th day after the date of filing unless: (1) Otherwise specifically provided by the statute pursuant to which the regulation or order of repeal was adopted, in which event it becomes effective on the day prescribed by the statute. (2) A later date is prescribed by the state agency in a written instrument filed with, or as part of, the regulation or order of repeal. (3) The agency makes a written request to the office demonstrating good cause for an earlier effective date, in which case the office may prescribe an earlier date. (b) A regulation that has  an individual   a cumulative statewide  cost impact in excess of  ____ dollars ($____),   ten million dollars ($10,000,000) for affected businesses,  as determined by the assessment conducted pursuant to Section 11346.3, shall not take effect until January 1, next, one year following the date that the regulation is filed with the Secretary of State. SEC. 2. 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) (A) All state agencies proposing to adopt, amend, or repeal any administrative regulations shall also prepare, as part of the assessment required by this section, a detailed estimate of the  total actual costs of compliance for affected businesses and individuals. The cost impacts shall, at a minimum, estimate costs of individual compliance as well as the aggregate statewide cost of compliance.   cumulative statewide cost impacts for affected businesses.  (B) The agency shall notify the fiscal committee in each house of the Legislature and the appropriate policy committee in each house of the Legislature if the estimated  actual costs of compliance for affected businesses or individuals, at the individual level, exceeds ____ dollars ($____)   cumulative   statewide cost impact for affected businesses exceeds ten million dollars ($10,000,000)  . This notification is intended to provide the Legislature sufficient time, to the extent the Legislature may disapprove of the regulation, to enact a statute that restricts the statutory authority of the agency to enact the regulation. (3) This subdivision does not apply to the University of California, the Hastings College of the Law, or the Fair Political Practices Commission. (4) 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.