SB 885

Existing law, known as 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 a state agency proposing to adopt, amend, or repeal an administrative regulation to, among other things, assess the potential for adverse economic impact on California business enterprises and individuals, and requires a state agency proposing to adopt, amend, or repeal a major regulation on or after November 1, 2013, to prepare and submit to the Department of Finance for comment, a standardized regulatory impact analysis, as provided. Existing law defines “major regulation” for purposes of the act to mean any proposed adoption, amendment, or repeal of a regulation subject to review by the office that will have an economic impact on California business enterprises and individuals in an amount exceeding $50,000,000, as provided. Existing law establishes procedures for the adoption of emergency regulations, including requiring that the state agency make a finding that the adoption of a regulation or order of repeal is necessary to address an emergency, as defined. Under existing law, a regulation, amendment, or order of repeal adopted as an emergency regulatory action may only remain in effect for up to 180 days, unless the adopting agency complies with specified requirements. This bill would prohibit a state agency from taking final action to adopt a major regulation until certain requirements are met, including that after the state agency prepares a standardized regulatory impact analysis and submits the analysis to the Department of Finance, as described above, the state agency submits a proposal to the Legislature recommending legislation to authorize the adoption of the major regulation and the Legislature enacts a law expressly authorizing the state agency to adopt that major regulation. The bill, notwithstanding that prohibition, would authorize a state agency to adopt an emergency regulation that is a major regulation if the state agency complies with specified requirements governing the adoption of emergency regulations. The bill would prohibit the emergency regulation from being in effect more than 180 days, except that the state agency may twice readopt an emergency regulation that is the same or substantially equivalent to the emergency regulation previously adopted for a period not to exceed 90 days, if the state agency prepares a standardized regulatory impact analysis and submits the analysis to the Department of Finance for comment, as described above, and the state agency submits a proposal to the Legislature recommending legislation to authorize the adoption of the major regulation.