Administrative Procedure Act: major regulations.

Plain English Breakdown

The bill summary does not provide specific details on the consequences for non-compliance by state agencies.

Major Regulations in California

This law requires state agencies to assess the potential adverse economic impact on businesses and individuals before making major regulations that affect the economy by more than $50 million, including preparing a standardized regulatory impact analysis.

What This Bill Does

• Requires state agencies to assess the potential adverse economic impact of new or changed rules on California's business enterprises and individuals.
• Makes state agencies prepare a standardized regulatory impact analysis for major regulations that affect the economy by more than $50 million, as specified by the Department of Finance.
• Requires agencies to consider any offsetting benefits, impacts, or savings from adopting, changing, or ending a regulation when estimating its economic effect.

Who It Names or Affects

• State agencies responsible for making regulations
• Businesses and individuals affected by major regulations

Terms To Know

major regulation

A proposed adoption, amendment, or repeal of a regulation that will have an economic impact on California business enterprises and individuals in an amount exceeding $50 million.

regulatory impact analysis

A standardized report prepared by state agencies to assess the potential adverse economic impact of major regulations on businesses and individuals, as prescribed by the Department of Finance.

Limits and Unknowns

• The bill does not specify what happens if an agency fails to follow these requirements.
• It is unclear how the Department of Finance will prescribe the manner for preparing the regulatory impact analysis.
• The exact process for reviewing and approving major regulations remains unspecified.

Official Summary Text

SB 1123, as introduced, Wiener.
Administrative Procedure Act: major regulations.
The Administrative Procedure Act requires a state agency proposing to adopt, amend, or repeal an administrative regulation to assess the potential for adverse economic impact on California business enterprises and individuals and avoid the imposition of unnecessary or unreasonable regulations or reporting, recordkeeping, or compliance requirements. The act 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, and requires the analysis to address certain items, including the creation or elimination of jobs within the state and the competitive advantages or disadvantages for businesses currently doing business within the state. The act defines “major regulation” to mean a
proposed adoption, amendment, or repeal of a regulation subject to review by the Office of Administrative Law, as specified, that will have an economic impact on California business enterprises and individuals in an amount exceeding $50,000,000, as estimated by the agency.
This bill would require an agency, in estimating the economic impact of adopting, amending, or repealing a regulation, to identify and calculate any offsetting benefits, impacts, or savings that might result directly or indirectly from that adoption, amendment, or repeal and factor those benefits, impacts, or savings into its economic impact estimate.

Current Bill Text

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