SB 986

(1) Existing law, known as the Administrative Procedure Act (APA), 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 (OAL). The APA 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 to prepare and submit to the Department of Finance for review, a standardized regulatory impact analysis, as provided. The APA defines “major regulation,” for purposes of the act, to mean any proposed adoption, amendment, or repeal of a regulation subject to review by the OAL that will have an economic impact on California business enterprises and individuals in an amount exceeding $50,000,000, as provided. The APA provides exceptions for emergency regulations in the case of a situation that calls for immediate action to avoid serious harm to the public peace, health, safety, or general welfare. This bill would prohibit a major regulation from taking effect until submission to, and expiration of a 60-day review period by, the Legislature, except as provided for emergency regulations. The bill would, prior to the expiration of the 60-day review period, require the Legislature to hold an informational hearing on the major regulation. The bill would authorize the Legislature to reject a major regulation during the review period by adoption of a concurrent resolution, and would prohibit a major regulation that has been rejected from taking effect, as specified. If the Legislature does not adopt a concurrent resolution rejecting the regulation within the 60-day review period, the bill would require that the regulation become effective. (2) The APA requires every agency subject to its provisions to prepare, submit to the OAL with the notice of proposed action, as specified, and make available to the public upon request, specified information, including an initial statement of reasons for proposing the adoption, amendment, or repeal of a regulation. The APA requires a state agency proposing to adopt, amend, or repeal a major regulation to satisfy additional requirements, including by requiring the state agency to prepare a standardized regulatory impact analysis in the manner prescribed by the Department of Finance, as specified. The APA requires the OAL to review all regulations adopted, amended, or repealed and submitted to it for publication in the California Code of Regulations Supplement and for transmittal to the Secretary of State and make determinations using all of the specified standards, including necessity. This bill would require every agency subject to its provisions to also submit the above-described specified information to the Legislature and would remove the condition that the information be prepared, submitted, and made available upon request. The bill would require the notice of proposed action to include a determination of whether the regulation is a major regulation, as specified, and would require the standardized regulatory impact analysis for a major regulation to address, among other things, the estimated effect on state revenue.