HomeMy WebLinkAbout09 LEGISLATIVE REPORT-SB 942Agenda Item 9
Reviewed:
AGENDA ~,EPORT Cit
M ~~~~ /~ /
/JI/
y
anager
Finance Director N/A
MEETING DATE: MAY 4, 2010
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PATRICIA ESTRELLA, CITY CLERK SERVICES SUPERVISOR
SUBJECT: LEGISLATIVE REPORT -SENATE BILL 942 (DUTTON)
SUMMARY:
Mayor Amante requested that Senate Bill 942 be agendized for discussion.
RECOMMENDATION:
Pleasure of the Council.
FISCAL IMPACT:
There are no significant fiscal impacts associated with this action.
DISCUSSION:
Senate Bill 942 proposes to reduce the state's, regulatory burden on the private sector
by requiring the Bureau of State Audits (BSA) to do a complete review of all existing
regulations and recommend to the Legislature elimination or revision of any significant
regulations that are not cost-effective. According to the author, this bill would also repeal
all regulations ten years after their effective date unless the BSA determines that the
regulations are cost-effective.
A copy of the bill as amended is attached to this report. Also attached is a Fact Sheet
prepared by the author.
Patricia Estrella
City Clerk Services Supervisor
AMENDED IN SENATE APRIL 5, 2010
SENATE BILL
No. 942
Introduced by Senator Dutton
February 3, 2010
+. ~~ o ,~ tt~nnin a ii~~n ii 4t, ~ ___ _~
111 LiVL LV CALLU IJ fill L1V11J 1 1JTJ. 1 V QllU 1 1.J "'T7. i
. An act to amend Section 11349.3
of, to add Sections 11349.10 and 11349.11 to, and to add Article 5. S
(commencing with Section 11348.5) to Chapter 3.5 ofPart 1 ofDivision
3 of Title 2 of, the Government Code, relating to regulations.
LEGISLATIVE COUNSEL'S DIGEST
SB 942, as amended, Dutton. .
Regulations: review process.
Existing law, the Administrative Procedure Act, governs the procedure
for the adoption, amendment, or repeal of regulations by state agencies,
including a requirement that the notice of proposed action contain
prescribed cost estimates associated with the proposed regulation.
Existing law also provides for the review of these regulatory actions
by the Office ofAdministrative Law
This bill would establish an Economic Analysis Unit within the office.
The bill would require agencies to make publicly available and submit
to the unit specked cost estimates that pertain to a proposed regulation
and specked information used to develop the cost estimates, as
prescribed. The bill would require the unit to review final revised cost
estimates for regulations that the agency determines to have a cost
estimate of $S0, 000, 000 or more. The bill also authorizes a stakeholder
to petition the director of the office to direct the unit to review a
regulation that does not meet the $50, 000, 000 cost estimate threshold.
9s
SB 942 - 2 -
The bill requires the unit to approve or reject the cost estimates of
regulations that it reviews, as specked.
This bill would require each agency to review each regulation adopted
prior to January 1, 1990, and to develop a report with prescribed
information that shall be submitted to the Legislature on or before
January 1, 2013. The bill would also require each agency, on or before
January 1, 2018, and at least every S years thereafter, to conduct
additional reviews of regulations that have been in effect for at least
20 years, as specked, and to submit an annual report to the Legislature
that ident~es the regulations reviewed during that year and the
associated findings.
Yuvit Jll 1111) ut,.~V111111raiiDll-ATIL~CIIL~507i5 IDI-74rIi~CIII. ~C1iiF'C71~7ZI
> >
98
-3-
SB 942
> >
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Article 5.5 (commencing with Section 11348. S)
2 is added to Chapter 3. S of Part I of Division 3 of Title 2 of the
3 Government Code, to read.'
4
5 Article S.S. Cost Estimate Analysis of Proposed Regulations
6
7 11348. S. (a) There is hereby established within the office an
$ Economic Analysis Unit that shall review cost estimates of
9 proposed regulations, as provided for in this article.
10 (b) For purposes of this article, "unit" means the Economic
11 Analysis Unit.
12 11348. Sl. (a) (1) Each agency shall, at the time it
13 disseminates the notice of proposed action as required by Section
14 11346.4, also disclose to the public any cost estimate required
15 pursuant to Section 11346. S and the nonproprietary information
16 used to develop those cost estimates.
17 (2) Each agency shall, at the time when it disseminates the
18 notice of proposed action as required by Section 11346.4, also
19 submit to the unit any cost estimate required pursuant to Section
20 11346. S and all information used to develop those cost estimates,
21 including any proprietary information not disclosed to the public.
22 The unit shall treat as confidential any information ident~ed as
23 proprietary by the submitting agency. The agency shall also submit
24 to the unit any information submitted to the agency from parties
25 affected by the proposed regulation.
26 (b) Each agency shall disclose to the public and submit to the
27 unit, in the same manner prescribed in subdivision (a), final revised
28 cost estimates for a proposed regulation 30 working days prior to
29 submitting the proposed regulation to the office for review pursuant
30 to Article 6 (commencing with Section 11349).
98
SB 942 - 4 -
1 11348.52. (a) (1) The unit shall review final revised cost
2 estimates submitted pursuant to subdivision (b) of Section 11348. SI
3 for a proposed regulation for which the agency has provided an
4 estimated cost of fifty million dollars ($S0, 000, 000) or more.
5 (2) The unit may review cost estimates submitted pursuant to
6 subdivision (a) of Section 11348. SI for a proposed regulation for
7 which the agency has provided an estimated cost of fifty million
8 dollars ($S0, 000, 000) or more. If the unit reviews cost estimates
9 for a proposed regulation pursuant to this paragraph, it shall
10 conduct the review and make determinations in the manner
11 provided pursuant to subdivision (c).
12 (b) A stakeholder may petition the office to direct the unit to
13 review final revised cost estimates for a proposed regulation that
14 has an estimated cost that is less than fifty million dollars
15 ($S0, 000, 000). The director of the office shall be authorized, in
16 his or her sole discretion, to approve or deny the petition.
17 (c) (1) The unit review of the cost estimates shall determine if
18 the submitting agency used an appropriate methodology to develop
19 those cost estimates and whether the submitted cost estimates are
20 a fair assessment of the estimated cost of the regulation based on
21 the information available to the agency to develop the cost
22 estimate.
23 (2) The unit shall approve or reject a cost estimate within SO
24 working days. If the unit rejects the cost estimate, the proposed
25 regulation shall be returned to the agency with a written statement
26 of reasons for the rejection, which shall also be made available
27 to the public. If the unit approves the cost estimate, then the unit
28 shall notify the agency and the office that the proposed regulation
29 is eligible for final approval by the office pursuant to Article 6
30 (commencing with Section 11349).
31 11348.53. Subject to the requirements of subdivision (b) of
32 Section 11348.51, the office may concurrently review a proposed
33 regulation as required pursuant to Article 6 (commencing with
34 Section 11349), except that the office shall not approve a regulation
35 pursuant to Section 11349.3 that is being concurrently reviewed
36 by the unit until the EAU approves the cost estimates for that
37 regulation.
38 SEC. 2. Section 11349.3 of the Government Code is amended
39 to read:
98
- 5 - SB 942
1 11349.3. (a) 7T1~. Subject to Section 11348.53, the office shall
2 either approve a regulation submitted to it for review and transmit
3 it to the Secretary of State for filing or disapprove it within 30
4 working days after the regulation has been submitted to the office
5 for review. If the office fails to act within 30 days, the regulation
6 shall be deemed to have been approved and the office shall transmit
7 it to the Secretary of State for filing.
8 (b) If the office disapproves a regulation, it shall return it to the
9 adopting agency within the 30-day period specified in subdivision
10 (a) accompanied by a notice specifying the reasons for disapproval.
11 Within seven calendar days of the issuance of the notice, the office
12 shall provide the adopting agency with a written decision detailing
13 the reasons for disapproval. No regulation shall be disapproved
14 except for failure to comply with the standards set forth in Section
15 11349.1 or for failure to comply with this chapter.
16 (c) If an agency determines, on its own initiative, that a
17 regulation submitted pursuant to subdivision (a) should be returned
18 by the office prior to completion of the office's review, it may
19 request the return of the regulation. All requests for the return of
20 a regulation shall be memorialized in writing by the submitting
21 agency no later than one week following the request. Any
22 regulation returned pursuant to this subdivision shall be resubmitted
23 to the office for review within the one-year period specified in
24 subdivision (b) of Section 11346.4 or shall comply with Article 5
25 (commencing with Section 11346) prior to resubmission.
26 (d) The ofl-'ice shall not initiate the return of a regulation pursuant
27 to subdivision (c) as an alternative to disapproval pursuant to
28 subdivision (b).
29 SEC. 2. Section 11349.10 is added to the Government Code,
3 0 to read.•
31 11349.10. (a) Each agency shall review each regulation
32 adopted prior to January 1, 1990. The review shall be developed
33 into a report that includes, but is not limited to, the following
34 information for each regulation:
35 (1) The date that the office approved the regulation.
36 (2) The purpose.
37 (3) The statutory authority.
38 (4) The ident~cation of impacted sectors.
39 (S) The direct costs by sector:
40 (6) Whether the regulation is duplicative of other regulations.
9a
SB 942 - 6 -
1 (7) Whether the regulation is still relevant.
2 (8) Whether the regulation needs to be updated in order to
3 become more effective or less burdensome.
4 (b) The agency shall consult with parties affected by the
5 regulation in developing the report.
6 (c) The agency shall submit the report to the Legislature on or
7 before January 1, 2013.
8 (d) To the extent that an agency is a component member of
9 another agency, the member agency shall submit a copy of its
10 report to the highest ranking agency head prior to submitting the
11 report to the Legislature as required by this section. The agency
12 head shall review the reports for each component agency for the
13 purpose of identifying duplicative or conflicting regulations
14 between departments.
15 SEC. 3. Section 11349.11 is added to the Government Code,
16 to read:
17 11349.11. (a) On or before.Ianuary 1, 2018, and at least every
18 five years thereafter, each agency shall review each regulation
19 that is at least 20 years old and has not been reviewed within the
20 last 10 years. The review shall be developed into a report that
21 shall be submitted to the Legislature and includes, but is not limited
22 to, the following information for each regulation:
23 (1) The date that the office approved the regulation.
24 (2) The purpose.
25 (3) The statutory authority.
26 (4) The ident~cation of impacted sectors.
27 (S) The direct costs by sector.
28 (6) Whether the regulation is duplicative of other regulations.
29 (7) Whether the regulation is still relevant.
30 (8) Whether the regulation needs to be updated in order to
31 become more effective or less burdensome.
32 (b) Each agency shall submit an annual report to the Legislature
33 that ident~es the regulations reviewed during the previous year
34 and the associated findings.
35 ~~~iivrTa- i~~e~r,." i i ~ nn i n :,. ,, a a,.a .~ a. ~ivd£i`i~3i
36 ~,.a.. ~.. _~..a;
37
38
39 ,
40
9s
- 7 - SB 942
1
2
3
4
5 ,
6 ,
7
8
9
10
11
12 ,
13 ' '
14 , ,
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
98
SB 942 - 8 -
1
2 ~h
3 e-ee~n err~~e
4
S
6
7
8 .
9
10
11 ,
'
12 , ,
13 .
14
1S
16
17
18 ,
19
20 .
21
22 ,
23 ~
24 ,
2S .: ..~ S ~.... ~ L. ..4L. . ... . 4 ..t . ...~.~ .... .... ~.~ ~4 ~ - 4t- L 4t-
Q11
26 U U~iL41111 1111i W11VLlll rl 1 L Ji
27 ~ €
~ .~
~
~~ _~ ~.. ~~ ~i ~
~
28 ie
i ~
~ ~t ~~e~r ~-~~n
29 .
30 ,
31
32
33 ' ,
34
3S .
36
37
38
39 '
40 ,
,
9s
- 9 - SB 942
1
2
3
4 ,
5 .
6
7 ~r ~ r,..,.:,._ ~ i ~ nn i i _ .. .
aa,.a 4.. 4~.. r _ __ _4
r a
g
9
10 ,
11
12 ,
O
98
SENATOR BOB DUTTON
STATE CAPITOL, ROOM 5094
TEL: 9!6.651.4031
FAX: 91d.327.2272
~,'~
~.
SENATE BILL 942
REGYJLATOIZY BY7ItI?EN REDUCTION ACT
• FACT SI-IEET
SUMMARY
This bill would reduce the state's regulatory burden
on the private sector by requiring the Bureau of State
Audits (BSA) to da a complete review of all existing
regulations and recommend to the Legislature
elimination or revision of any significant regulations
that are not cost-effective. This bill would also repeal
all regulations ten years after their effective date
unless the BSA determines that the regulations are
cost-effective.
Businesses often point to regulatory burden as one
the biggest factors far the ecnnorny's poor
performance, yet there is little agreement on which
regulations are the most damaging. This bill would
provide policy makers with the objective information
needed to identify those job-killing regulations that
are strangling the economy. With unemployment at
12.4%, it is vital that the Legislature enact meaningful
reform to reduce barriers to economic prosperity.
BACKGROUNT3
EXISTING LAW
Generally, all regulations must follow the rulernaking
procedures outlined in the Administrative Procedures
Act (APA). "I'he APA requires all rulemaking
agencies to, among other things: (1) find that no
alternative would be more effective or would be as
effective and less burdensome to private persons than
the adapted regulations; (2) describe the potential cast
impact of a regulation; and (3) assess to what extent
the regulation will create or eliminate jobs and
businesses.
NEED
Despite the procedures set forth under the APA,
California's economy is struggling due to onerous and
duplicative regulations. A Sacramento State study
found the total cost of regulation is approximately
$493 billion, or 3.8 million jobs lost - a tenth of the
state's population. Forbes Magazine ranlts California
as the mast costly state to do business, whsle the
Chief Executive Magazine finds California's business
climate as the worst in the nation for the 4"` year in a
row.
The Office of Administrative Law (DAL) reviews and
approves all regulations. The OAL determines
whether rulemaking agencies have properly complied
with the APA, but the OAL does not review the cost
information to determine whether it is accurate.
SUPPORT
Engineering Contractors' Association
Maria Builders' Association
California Fence Contractors' Association
Flasher/Barricade Association
California Chapter -American Fence Association
OPPOSITION
STATUS
Introduced. Hearing in GO March 23.
FOR MORE INFORMATION
Anissa Nachman
(91 ~ 651-4031
anis sa. nachmanQsen.ca.gov
March 9 0, 209 0