State government: financial and administrative accountability.

(1) 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 establishes procedures for notifying interested persons of the proposed adoption, amendment, or repeal of a regulation. Existing law establishes procedures a state agency is required to use to make a determination of whether a proposed administrative regulation or proposed amendment to an administrative regulation has the potential for significant, statewide adverse economic impact directly affecting California business enterprises. This bill would revise various provisions of the act with respect to the duties of the Office of Administrative Law and state agencies in the adoption, amendment, or repeal of regulations. The bill would also require each state agency to prepare a standardized regulatory impact analysis, as specified, with respect to the adoption, amendment, or repeal of a major regulation, as defined, that is proposed on or after November 1, 2013. The bill would require that the agency submit the analysis to the Department of Finance for review and comments, as specified, which would be required to be included with the notice of proposed action. This bill would require the Department of Finance, in consultation with other state entities, to adopt regulations for conducting the standardized regulatory impact analyses, as specified, to be utilized by state agencies when promulgating major regulations pursuant to the act, and, in particular, in developing the standardized regulatory impact analysis. The bill would require, on or before November 1, 2013, the department to submit these adopted regulations to the Senate and Assembly Committees on Governmental Organization and publish the adopted regulations in the State Administrative Manual. (2) The Financial Integrity and State Manager's Accountability Act of 1983 provides that state agency heads are responsible for the establishment and maintenance of a system or systems of internal accounting and administrative control within their agencies, as specified. This bill would require that effective, independent, and ongoing monitoring of the internal accounting and administrative controls of state agencies be included within that system or systems. (3) The act requires that the Director of Finance establish a general framework to guide state agencies in conducting internal reviews of their systems of internal accounting and administrative controls. This bill would require that the Director of Finance also establish a general framework of recommended practices to guide state agencies in conducting active ongoing monitoring of processes for internal accounting and administrative control.