SB 1239
State Air Resources Board: regulations: supplemental impact analysis.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Environmental Quality
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Bill overview
This bill requires the State Air Resources Board (CARB) to conduct a supplemental regulatory impact analysis when a proposed regulation is significantly changed after the initial analysis is released but before it’s adopted. This supplemental analysis must update the consumer cost analysis to reflect any amendments made during the rulemaking process and be made available for public review. The bill aims to ensure greater transparency and accountability regarding the potential economic impacts of CARB regulations.
Key provisions
- CARB must prepare and publish a supplemental regulatory impact analysis for materially changed regulations.
- The supplemental analysis must update the consumer cost analysis.
- The supplemental analysis must be made available for public review.
- This requirement applies to regulations changed after the initial standardized analysis is released.
- The bill amends existing requirements for economic impact assessments.
- The bill clarifies the process for agencies submitting analyses to the Department of Finance.
- It reinforces the role of regulatory impact analyses in informing policy decisions.
- It emphasizes that analyses should focus on economic consequences, not reassess statutory policy.
Who is affected
- State Air Resources Board
- Businesses in California
- Consumers in California
- The Department of Finance
- The public
Notable changes
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SB1239:v99#DOCUMENT
Bill Start
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Senate Bill
No. 1239
| Introduced by Senator Jones (Coauthor: Senator Niello) |
| February 19, 2026 |
An act to amend Section 11346.3 of the Government Code, relating to state government.
LEGISLATIVE COUNSEL'S DIGEST
SB 1239, as introduced, Jones. State Air Resources Board: regulations: supplemental impact analysis.
Existing law requires a state agency, except as specified, proposing to adopt, amend, or repeal a major regulation to prepare a standardized regulatory impact analysis in the manner prescribed by the Department of Finance, addressing specified considerations, and submit that analysis to the Department of Finance. Existing law requires the department to comment, within 30 days of receiving the analysis, on the extent to which the analysis adheres to specified regulations.
This bill would require the State Air Resources Board to also prepare and publish a supplemental standardized regulatory impact analysis if the proposed regulation is materially changed after release of the initial standardized regulatory impact analysis described above, and before adoption, that updates the consumer cost analysis to reflect amendments made during the rulemaking process. The bill would require the board to make the supplemental standardized regulatory impact analysis available for public review.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 11346.3 of the Government Code is amended to read:
11346.3.
(a) A state agency 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, before 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 impact assessment prepared pursuant to this subdivision for a proposed regulation that is not a major regulation or that is a major regulation proposed before November 1, 2013, shall be prepared in accordance with subdivision (b), and shall be included in the initial statement of reasons as required by Section 11346.2. 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) A state agency proposing to adopt, amend, or repeal a regulation that is not a major regulation or that is a major regulation proposed before 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.
(2) This subdivision does not apply to the University of California, the college named in Section 92200 of the Education Code, or the Fair Political Practices Commission.
(3) Information required from a state agency for the purpose of completing the assessment may come from existing state publications.
(4) (A) For purposes of conducting the economic impact assessment pursuant to this subdivision, a state agency may use the consolidated definition of small business in subparagraph (B) in order to determine the number of small businesses within the economy, a specific industry sector, or geographic region. The state agency shall clearly identify the use of the consolidated small business definition in its rulemaking package.
(B) For the exclusive purpose of undertaking the economic impact assessment, a “small business” means a business that is all of the following:
(i) Independently owned and operated.
(ii) Not dominant in its field of operation.
(iii) Has fewer than 100 employees.
(C) Subparagraph (A) shall not apply to a regulation adopted by the Department of Insurance that applies to an insurance company.
(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 college named in Section 92200 of the Education Code, 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.
(4) The State Air Resources Board shall also prepare and publish a supplemental standardized regulatory impact analysis if the proposed regulation is materially changed after release of the initial standardized regulatory impact analysis required pursuant to paragraph (1) and before adoption. The supplemental standardized regulatory impact analysis shall update the consumer cost analysis to reflect amendments made during the rulemaking process, including late-stage revisions before adoption. The board shall make the supplemental standardized regulatory impact analysis available for public review.
(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.