Administrative Procedure Act: small businesses.

Existing law, the Administrative Procedure Act, in part, sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies, and for review of those regulatory actions by the Office of Administrative Law. Existing law requires a state agency subject to the act, prior to submitting a proposal to adopt, amend, or repeal an administrative regulation, to determine the potential for adverse economic impact on California business enterprises and individuals, as provided, and for the state agency to comply with specified requirements for those regulations. Existing law also requires a state agency subject to the act to prepare, submit as provided, 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, as specified. This bill would require, in complying with specified requirements related to adverse economic impacts on California business enterprises and as related to the proposed adoption, amendment, or repeal of a regulation that applies to a small business, as defined, located within an area in which the Governor has declared a state of emergency, the regulation to include (1) a postponement in the application of the regulation on small businesses until the state of emergency is terminated; (2) findings that postponement is not appropriate, that the administrative regulation is necessary to address the state of emergency, as confirmed by the Office of Emergency Services, and that the regulation provides sufficient time to provide reasonable notice to affected small businesses as to the content of the regulation and the time to meet the new requirements; or (3) findings that postponement is not appropriate, that the administrative regulation is necessary to address a serious and immediate health and safety issue, as confirmed by the State Department of Public Health or the Labor and Workforce Development Agency, and that the regulation provides sufficient time to provide reasonable notice to affected small businesses as to the content of the regulation and the time to meet the new requirements. The bill would also require a state agency subject to the act to include, in its initial statement of reasons, specified information relating to proposed regulations applicable to a small business located within an area in which the Governor has declared a state of emergency and that do not have a postponement of the regulation for those small businesses. This bill would declare that it is to take effect immediately as an urgency statute.