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SB-1123 • 2026

Administrative Procedure Act: major regulations.

Administrative Procedure Act: major regulations.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Wiener
Last action
2026-04-17
Official status
Set for hearing April 27.
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific information about the enforcement mechanism or consequences for non-compliance by state agencies.

Major Regulations in California

This law requires state agencies to assess the potential adverse economic impact of major regulations on businesses and individuals before adopting, amending, or repealing them, with a focus on detailed analysis for those costing over $50 million.

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.
  • For major regulations (those costing over $50 million), agencies must prepare a standardized regulatory impact analysis as prescribed by the Department of Finance.
  • The analysis must address job creation or loss within the state and competitive advantages or disadvantages for businesses currently operating in the state.

Who It Names or Affects

  • State agencies in California
  • Businesses and individuals affected by major regulations

Terms To Know

Major regulation
A rule that will have an economic impact of over $50 million on businesses or individuals.
Regulatory impact analysis
A detailed study done by state agencies to understand the costs and benefits of major regulations, 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 this will affect smaller regulations that do not meet the $50 million threshold.
  • There are no details on who enforces compliance with these new rules.

Bill History

  1. 2026-04-17 California Legislative Information

    Set for hearing April 27.

  2. 2026-04-14 California Legislative Information

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (April 14). Re-referred to Com. on APPR.

  3. 2026-04-13 California Legislative Information

    Set for hearing April 14.

  4. 2026-02-26 California Legislative Information

    Referred to Com. on G.O.

  5. 2026-02-18 California Legislative Information

    From printer. May be acted upon on or after March 20.

  6. 2026-02-17 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

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

Read the full stored bill text 
Download Bill PDF