BILL NUMBER: AB 703	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 20, 2013

INTRODUCED BY   Assembly Member Hall

                        FEBRUARY 21, 2013

    An act to amend Section 25256.1 of the Health and Safety
Code, relating to hazardous materials.   An act to amend
Section 11346.3 of the Government Code, relating to regulations.




	LEGISLATIVE COUNSEL'S DIGEST


   AB 703, as amended, Hall.  Hazardous materials: chemicals
of concern: data evaluation.   Administrative Procedure
Act: adverse economic impact assessment.  
   Existing law, the Administrative Procedure Act, governs the
procedure 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 an agency
proposing to take specified regulatory actions relating to a
regulation that is not a major regulation, as defined, or that is a
major regulation proposed before November 1, 1993, to perform an
economic impact assessment of that action on businesses and
individuals, as specified.  
   This bill would require a state agency to include in its economic
impact assessment whether and to what extent the regulatory action
would affect the incentives for innovation in products, materials, or
processes.  
   Existing law requires the Department of Toxic Substances Control
to adopt regulations that establish a process to identify and
prioritize chemicals or chemical ingredients in consumer products,
that may be considered a chemical of concern establish a process for
evaluating chemicals of concern in consumer products and their
potential alternatives for the purposes of limiting exposure or to
reduce the level of hazard posed by chemicals of concern, and specify
a range of regulatory responses that the department may take
following the evaluation. Existing law requires to department to
establish a Toxics Information Clearinghouse and requires the Office
of Environmental Health Hazard Assessment to evaluate and specify the
hazard traits, and environmental and toxicological end-point data to
be included in the clearinghouse.  
   This bill would make nonsubstantive changes to the provision
requiring the office to evaluate and specify data to be included in
the Clearinghouse. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION   1.    Sectio   n 
 11346.3 of the   Government Code   is amended
to read: 
   11346.3.  (a) State agencies proposing to adopt, amend, or repeal
any administrative regulation shall assess the potential for adverse
economic impact on California business enterprises and individuals,
avoiding the imposition of unnecessary or unreasonable regulations or
reporting, recordkeeping, or compliance requirements. For purposes
of this subdivision, assessing the potential for adverse economic
impact shall require agencies, when proposing to adopt, amend, or
repeal a regulation, to adhere to the following requirements, to the
extent that these requirements do not conflict with other state or
federal laws:
   (1) The proposed adoption, amendment, or repeal of a regulation
shall be based on adequate information concerning the need for, and
consequences of, proposed governmental action.
   (2) The state agency, prior to submitting a proposal to adopt,
amend, or repeal a regulation to the office, shall consider the
proposal's impact on business, with consideration of industries
affected including the ability of California businesses to compete
with businesses in other states. For purposes of evaluating the
impact on the ability of California businesses to compete with
businesses in other states, an agency shall consider, but not be
limited to, information supplied by interested parties.
   (3) An economic assessment prepared pursuant to this subdivision
for a proposed regulation that is not a major regulation or that is a
major regulation proposed prior to November 1, 2013, shall be
prepared in accordance with subdivision (b). An economic assessment
prepared pursuant to this subdivision for a major regulation proposed
on or after November 1, 2013, shall be prepared in accordance with
subdivision (c), and shall be included in the initial statement of
reasons as required by Section 11346.2.
   (b) (1) All state agencies proposing to adopt, amend, or repeal a
regulation that is not a major regulation or that is a major
regulation proposed prior to November 1, 2013, shall prepare an
economic impact assessment that assesses whether and to what extent
it will affect the following:
   (A) The creation or elimination of jobs within the state.
   (B) The creation of new businesses or the elimination of existing
businesses within the state.
   (C) The expansion of businesses currently doing business within
the state.
   (D) The benefits of the regulation to the health and welfare of
California residents, worker safety, and the state's environment.

   (E) The incentives for innovation in products, materials, or
processes. 
   (2) This subdivision does not apply to the University of
California, the Hastings College of the Law, or the Fair Political
Practices Commission.
   (3) Information required from state agencies for the purpose of
completing the assessment may come from existing state publications.
   (c) (1) Each state agency proposing to adopt, amend, or repeal a
major regulation on or after November 1, 2013, shall prepare a
standardized regulatory impact analysis in the manner prescribed by
the Department of Finance pursuant to Section 11346.36. The
standardized regulatory impact analysis shall address all of the
following:
   (A) The creation or elimination of jobs within the state.
   (B) The creation of new businesses or the elimination of existing
businesses within the state.
   (C) The competitive advantages or disadvantages for businesses
currently doing business within the state.
   (D) The increase or decrease of investment in the state.
   (E) The incentives for innovation in products, materials, or
processes.
   (F) The benefits of the regulations, including, but not limited
to, benefits to the health, safety, and welfare of California
residents, worker safety, and the state's environment and quality of
life, among any other benefits identified by the agency.
   (2) This subdivision shall not apply to the University of
California, the Hastings College of the Law, or the Fair Political
Practices Commission.
   (3) Information required from state agencies for the purpose of
completing the analysis may be derived from existing state, federal,
or academic publications.
   (d) Any administrative regulation adopted on or after January 1,
1993, that requires a report shall not apply to businesses, unless
the state agency adopting the regulation makes a finding that it is
necessary for the health, safety, or welfare of the people of the
state that the regulation apply to businesses.
   (e) Analyses conducted pursuant to this section are intended to
provide agencies and the public with tools to determine whether the
regulatory proposal is an efficient and effective means of
implementing the policy decisions enacted in statute or by other
provisions of law in the least burdensome manner. Regulatory impact
analyses shall inform the agencies and the public of the economic
consequences of regulatory choices, not reassess statutory policy.
The baseline for the regulatory analysis shall be the most
cost-effective set of regulatory measures that are equally effective
in achieving the purpose of the regulation in a manner that ensures
full compliance with the authorizing statute or other law being
implemented or made specific by the proposed regulation.
   (f) Each state agency proposing to adopt, amend, or repeal a major
regulation on or after November 1, 2013, and that has prepared a
standardized regulatory impact analysis pursuant to subdivision (c),
shall submit that analysis to the Department of Finance upon
completion. The department shall comment, within 30 days of receiving
that analysis, on the extent to which the analysis adheres to the
regulations adopted pursuant to Section 11346.36. Upon receiving the
comments from the department, the agency may update its analysis to
reflect any comments received from the department and shall summarize
the comments and the response of the agency along with a statement
of the results of the updated analysis for the statement required by
paragraph (10) of subdivision (a) of Section 11346.5. 
  SECTION 1.    Section 25256.1 of the Health and
Safety Code is amended to read:
   25256.1.  On or before January 1, 2011, the office shall evaluate
and specify the hazard traits, the environmental and toxicological
end-points, and any other relevant data that shall be included in the
clearinghouse. The office shall conduct this evaluation in
consultation with the department and all appropriate state agencies,
after conducting one or more public workshops, and providing an
opportunity for all interested parties to comment. The office may
seek information from other states, the federal government, and other
nations in implementing this section.