California-2011-SB196-Amended

BILL NUMBER: SB 196	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 5, 2011

INTRODUCED BY    Senator   Cannella
  Senators   Cannella,   Berryhill,
  Emmerson,   and Harman 

                        FEBRUARY 8, 2011

    An act to amend Section 434 of the Food and Agricultural
Code, relating to state agriculture.   An act to amend
Sections 11346.1, 11346.2, 11346.3, 11346.5, 11346.9, 11349.1, 11351,
11352, and 11354.1 of, to add Sections 9145, 11342.547, 11346.31,
11349.75, and 11349.10 to, and to repeal Section 11353 of, the
Government Code, and to amend Section 57005 of the Health and Safety
Code, relating to regulations. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 196, as amended, Cannella.  State agriculture:
informational materials.   Regulations: economic
analysis and review.  
   (1) 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. The act requires that state agencies proposing to
adopt, amend, or repeal any administrative regulation assess the
potential for adverse economic impact on California business
enterprises and individuals, as specified.  
   This bill would require the standardized economic assessment to
consider additional factors, such as the benefits of the regulation
and the extent to which it will achieve regulatory and statutory
objectives. The bill would require agencies preparing the economic
assessment to request a review of the assessment by the University of
California, and to include any review by the university with the
assessment. The bill would require the Department of Finance to adopt
regulations, on or before June 30, 2013, to guide agencies in
conducting the standardized economic assessments, as specified. 

   This bill, commencing January 1, 2014, would make the standardized
economic assessment requirements applicable only to a proposed
regulation that the agency has concluded may have an economic impact
of more than $50,000,000.  
   (2) The act requires an agency that seeks to adopt a regulation to
issue a notice of proposed action that contains prescribed
information, including an informative digest that includes, among
other things, a policy statement overview explaining the broad
objectives of the regulation.  
   This bill would also require the policy statement to explain the
specific benefits anticipated by the regulation and evaluate whether
the proposed regulation is inconsistent or incompatible with existing
regulations.  
   (3) The act requires an agency to prepare and submit to the office
with an adopted regulation a final statement of reasons that
includes, among other things, a determination that no alternative
considered by the regulation would be more effective, or equally
effective and less burdensome, than the regulation, and an
explanation setting forth reasons for rejecting alternatives that
would lessen the adverse economic impact of the regulation. 

   This bill would require this determination to be based, in part,
on the economic impact assessment, if an assessment is required. The
bill would also require that the economic impact assessment be
included in the final statement of reasons as supporting information
for an explanation for rejecting alternatives that would lessen the
adverse economic impact of the regulation.  
   (4) The act establishes a procedure for a priority review of
existing regulations by the office, pursuant to a request by
specified committees of the Legislature, to determine if a regulation
continues to meet prescribed standards.  
   This bill would authorize any interested person to petition an
agency to perform an economic analysis on an existing regulation. The
bill would require the agency to conduct the analysis, except in
specified circumstances.  
   (5) The act requires the office to approve, or disapprove and
return to the agency, all regulations adopted pursuant to the act
using specified standards. The act requires the office to return a
regulation to the agency in specified circumstances, including
failure to comply with the requirement to assess the economic impact
of the proposed regulation.  
   This bill would provide, for purposes of that provision, that
noncompliance includes failing to complete an economic impact
assessment, if one is required, as specified. The bill would specify
additional criteria that would require the return of a proposed
regulation, as specified.  
   (6) The act exempts the Public Utilities Commission, the State
Water Resources Control Board, and the San Francisco Bay Conservation
and Development Commission from specified provisions of the act.
 
   This bill would revise the exemptions and require these entities
to comply with specified requirements regarding the performance of
the economic analysis.  
   (7) Existing law authorizes the Joint Legislative Budget Committee
to appoint a Legislative Analyst, who has specified duties. 

   This bill would require the Legislative Analyst to prepare a
benefit-cost analysis, as specified, of proposed legislation that he
or she has identified as having a potential cost to the California
economy of more than $50,000,000 in one year, or that would adversely
affect in a material way the economy, a sector of the economy,
productivity, competition, jobs, the environment, or the public
health or safety.  
   Existing law requires the Department of Food and Agriculture to
issue and cause to be printed and distributed to county agricultural
commissioners, and to other persons as specified, illustrative
materials or statements which contain information which is best
adapted to advance the interest, business, and development of
agriculture in the state. Existing law also authorizes the department
to broadcast portions of illustrative materials or statements to
exhibit or display data and material that have been collected or
prepared, and to incur expenses which are necessarily incidental to
the exhibit or display of that data and material.  
   This bill would make technical, nonsubstantive changes to those
provisions. 
   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.    Section 9145 is added to the  
Government Code   , to read:  
   9145.  Commencing January 1, 2013, the Legislative Analyst shall
prepare a benefit-cost analysis of proposed legislation that he or
she has identified as having a potential cost to the California
economy of more than fifty million dollars ($50,000,000), or that
would adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, or the
public health or safety. The analysis shall explain how the measures
in the proposed legislation would be linked to expected benefits, how
the benefits and costs compare to a baseline of no legislation, and
in addition to direct benefits and costs, any expected undesirable
side effects or ancillary benefits of the proposed legislation. 

   SEC. 2.    Section 11342.547 is added to the 
 Government Code   , to read:  
   11342.547.  "Major regulation" means any proposed adoption,
amendment, or repeal of a regulation that will have an adverse
economic impact on California business enterprises and individuals in
an amount exceeding twenty-five million dollars ($25,000,000) in one
year, as estimated by the agency in the assessment required pursuant
to Section 11346.3, or that the agency has determined will adversely
affect in a material way the economy, a sector of the economy,
productivity, competition, jobs, the environment, or the public
health or safety, pursuant to Section 11346.3. 
   SEC. 3.    Section 11346.1 of the  
Government Code   is amended to read: 
   11346.1.  (a) (1) The adoption, amendment, or repeal of an
emergency regulation is not subject to any provision of this article
or Article 6 (commencing with Section 11349), except this section and
Sections 11349.5 and 11349.6.
   (2) At least five working days before submitting an emergency
regulation to the office, the adopting agency shall, except as
provided in paragraph (3), send a notice of the proposed emergency
action to every person who has filed a request for notice of
regulatory action with the agency. The notice shall include both of
the following:
   (A) The specific language proposed to be adopted.
   (B) The finding of emergency required by subdivision (b).
   (3) An agency is not required to provide notice pursuant to
paragraph (2) if the emergency situation clearly poses such an
immediate, serious harm that delaying action to allow public comment
would be inconsistent with the public interest.
   (b) (1) Except as provided in subdivision (c), if a state agency
makes a finding that the adoption of a regulation or order of repeal
is necessary to address an emergency, the regulation or order of
repeal may be adopted as an emergency regulation or order of repeal.
   (2) Any finding of an emergency shall include a written statement
that contains the information required by paragraphs (2) to (6),
inclusive, of subdivision (a) of Section 11346.5  , a statement
as to whether the proposed regulation may have a significant,
statewide adverse economic impact directly affecting business,
including the ability of California businesses to compete with 
 businesses in other states,  and a description of the
specific facts demonstrating the existence of an emergency and the
need for immediate action, and demonstrating, by substantial
evidence, the need for the proposed regulation to effectuate the
statute being implemented, interpreted, or made specific and to
address only the demonstrated emergency. The finding of emergency
shall also identify each technical, theoretical, and empirical study,
report, or similar document, if any, upon which the agency relies.
The enactment of an urgency statute shall not, in and of itself,
constitute a need for immediate action.
   A finding of emergency based only upon expediency, convenience,
best interest, general public need, or speculation, shall not be
adequate to demonstrate the existence of an emergency. If the
situation identified in the finding of emergency existed and was
known by the agency adopting the emergency regulation in sufficient
time to have been addressed through nonemergency regulations adopted
in accordance with the provisions of Article 5 (commencing with
Section 11346), the finding of emergency shall include facts
explaining the failure to address the situation through nonemergency
regulations.
   (3) The statement and the regulation or order of repeal shall be
filed immediately with the office.
   (c) Notwithstanding any other provision of law, no emergency
regulation that is a building standard shall be filed, nor shall the
building standard be effective, unless the building standard is
submitted to the California Building Standards Commission, and is
approved and filed pursuant to Sections 18937 and 18938 of the Health
and Safety Code.
   (d) The emergency regulation or order of repeal shall become
effective upon filing or upon any later date specified by the state
agency in a written instrument filed with, or as a part of, the
regulation or order of repeal.
   (e) No regulation, amendment, or order of repeal initially adopted
as an emergency regulatory action shall remain in effect more than
180 days unless the adopting agency has complied with Sections
11346.2 to 11347.3, inclusive, either before adopting an emergency
regulation or within the 180-day period. The adopting agency, prior
to the expiration of the 180-day period, shall transmit to the office
for filing with the Secretary of State the adopted regulation,
amendment, or order of repeal, the rulemaking file, and a
certification that Sections 11346.2 to 11347.3, inclusive, were
complied with either before the emergency regulation was adopted or
within the 180-day period.
   (f) If an emergency amendment or order of repeal is filed and the
adopting agency fails to comply with subdivision (e), the regulation
as it existed prior to the emergency amendment or order of repeal
shall thereupon become effective and after notice to the adopting
agency by the office shall be reprinted in the California Code of
Regulations.
   (g) If a regulation is originally adopted and filed as an
emergency and the adopting agency fails to comply with subdivision
(e), this failure shall constitute a repeal of the regulation and
after notice to the adopting agency by the office, shall be deleted.
   (h) The office may approve not more than two readoptions, each for
a period not to exceed 90 days, of an emergency regulation that is
the same as or substantially equivalent to an emergency regulation
previously adopted by that agency. Readoption shall be permitted only
if the agency has made substantial progress and proceeded with
diligence to comply with subdivision (e).
   SEC. 4.    Section 11346.2 of the   
 Government Code   , as amended by Section 1 of Chapter
398 of the Statutes of 2010, is amended to read: 
   11346.2.  Every agency subject to this chapter shall prepare,
submit to the office with the notice of the proposed action as
described in Section 11346.5, and make available to the public upon
request, all of the following:
   (a) A copy of the express terms of the proposed regulation.
   (1) The agency shall draft the regulation in plain,
straightforward language, avoiding technical terms as much as
possible, and using a coherent and easily readable style. The agency
shall draft the regulation in plain English.
   (2) The agency shall include a notation following the express
terms of each California Code of Regulations section, listing the
specific statutes or other provisions of law authorizing the adoption
of the regulation and listing the specific statutes or other
provisions of law being implemented, interpreted, or made specific by
that section in the California Code of Regulations.
   (3) The agency shall use underline or italics to indicate
additions to, and strikeout to indicate deletions from, the
California Code of Regulations.
   (b) An initial statement of reasons for proposing the adoption,
amendment, or repeal of a regulation. This statement of reasons shall
include, but not be limited to, all of the following:
   (1) A statement of the specific purpose of each adoption,
amendment, or repeal  , the problem the agency intends to
address,  and the rationale for the determination by the agency
that each adoption, amendment, or repeal is reasonably necessary to
carry out the purpose  and address the problem  for which it
is proposed.  The statement shall also enumerate the anticipated
benefits from the regulatory action, including the benefits or goals
described in the authorizing statute. Where applicable, the
statement shall include a description of the failures in private
markets or public institutions that warrant the proposed regulation,
in a manner consistent with the guidelines published by the federal
Office of Management and Budget in OMB Circular No. A-94, as revised
October 29, 1992.  Where the adoption or amendment of a
regulation would mandate the use of specific technologies or
equipment, a statement of the reasons why the agency believes these
mandates or prescriptive standards are required.
   (2) An identification of each technical, theoretical, and
empirical study, report, or similar document, if any, upon which the
agency relies in proposing the adoption, amendment, or repeal of a
regulation.
   (3) (A) A description of reasonable alternatives to the regulation
and the agency's reasons for rejecting those alternatives. 
Alternatives to be considered should include, but not be limited to,
alternatives that are less costly and that   would be
equally effective in achieving the purposes of the regulation in a
manner that ensures full compliance with the statutory mandate. An
agency that intends to select an alternative that is not cost
effective shall subject that alternative to a benefit-cost analysis.
 In the case of a regulation that would mandate the use of
specific technologies or equipment or prescribe specific actions or
procedures, the imposition of performance standards shall be
considered as an alternative.
   (B) A description of reasonable alternatives to the regulation
that would lessen any adverse impact on small business and the agency'
s reasons for rejecting those alternatives.
   (C) Notwithstanding subparagraph (A) or (B), an agency is not
required to artificially construct alternatives  , 
 or  describe unreasonable alternatives  , or
justify why it has not described alternatives  .
   (4) Facts, evidence, documents, testimony, or other evidence on
which the agency relies to support an initial determination that the
action will not have a significant adverse economic impact on
business.
   (5) A department, board, or commission within the  California
 Environmental Protection Agency, the  Natural 
Resources Agency, or the Office of the State Fire Marshal shall
describe its efforts, in connection with a proposed rulemaking
action, to avoid unnecessary duplication or conflicts with federal
regulations contained in the Code of Federal Regulations addressing
the same issues. These agencies may adopt regulations different from
federal regulations contained in the Code of Federal Regulations
addressing the same issues upon a finding of one or more of the
following justifications:
   (A) The differing state regulations are authorized by law.
   (B) The cost of differing state regulations is justified by the
benefit to human health, public safety, public welfare, or the
environment.
   (c) A state agency that adopts or amends a regulation mandated by
federal law or regulations, the provisions of which are identical to
a previously adopted or amended federal regulation, shall be deemed
to have complied with subdivision (b) if a statement to the effect
that a federally mandated regulation or amendment to a regulation is
being proposed, together with a citation to where an explanation of
the provisions of the regulation can be found, is included in the
notice of proposed adoption or amendment prepared pursuant to Section
11346.5. However, the agency shall comply fully with this chapter
with respect to any provisions in the regulation that the agency
proposes to adopt or amend that are different from the corresponding
provisions of the federal regulation.
   (d) This section shall be inoperative from January 1, 2012, until
January 1, 2014.
   SEC. 5.    Section 11346.2 of the  
Government Code   ,   as added by Section 2 of
Chapter 398 of the Statutes of 2010, is amended to read: 
   11346.2.  Every agency subject to this chapter shall prepare,
submit to the office with the notice of the proposed action as
described in Section 11346.5, and make available to the public upon
request, all of the following:
   (a) A copy of the express terms of the proposed regulation.
   (1) The agency shall draft the regulation in plain,
straightforward language, avoiding technical terms as much as
possible, and using a coherent and easily readable style. The agency
shall draft the regulation in plain English.
   (2) The agency shall include a notation following the express
terms of each California Code of Regulations section, listing the
specific statutes or other provisions of law authorizing the adoption
of the regulation and listing the specific statutes or other
provisions of law being implemented, interpreted, or made specific by
that section in the California Code of Regulations.
   (3) The agency shall use underline or italics to indicate
additions to, and strikeout to indicate deletions from, the
California Code of Regulations.
   (b) An initial statement of reasons for proposing the adoption,
amendment, or repeal of a regulation. This statement of reasons shall
include, but not be limited to, all of the following:
   (1) A statement of the specific purpose of each adoption,
amendment, or repeal  , the problem the agency intends to
address,  and the rationale for the determination by the agency
that each adoption, amendment, or repeal is reasonably necessary to
carry out the purpose  and address the problem  for which it
is proposed.  The statement shall also enumerate the anticipated
benefits from the regulatory action, including the benefits or goals
described in the authorizing statute. Where applicable, the
statement shall include a description of the failures in private
markets or public institutions that warrant the proposed regulation,
in a manner consistent with the guidelines published by the federal
Office of Manageme   nt and Budget in OMB Circular No. A-94,
as revised October 29, 1992. 
   (2) An identification of each technical, theoretical, and
empirical study, report, or similar document, if any, upon which the
agency relies in proposing the adoption, amendment, or repeal of a
regulation.
   (3) Where the adoption or amendment of a regulation would mandate
the use of specific technologies or equipment, a statement of the
reasons why the agency believes these mandates or prescriptive
standards are required.
   (4) (A) A description of reasonable alternatives to the regulation
and the agency's reasons for rejecting those alternatives. 
Alternatives to be considered should include, but not be limited to,
alternatives that are less costly and that would be equally effective
in achieving the purposes of the regulation in a manner that ensures
full compliance with the statutory mandate. An agency that intends
to select an alternative that is not cost-   effective must
subject that alternative to a benefit-cost analysis. 
   (B) A description of any performance standard that was considered
as an alternative. In the case of a regulation that would mandate the
use of specific technologies or equipment or prescribe specific
actions or procedures, the imposition of performance standards shall
be considered as an alternative.
   (C) A description of reasonable alternatives to the regulation
that would lessen any adverse impact on small business and the agency'
s reasons for rejecting those alternatives.
   (D) Notwithstanding subparagraph (A), (B), or (C), an agency is
not required to artificially construct alternatives  ,
  or  describe unreasonable alternatives  ,
or justify why it has not described alternatives  .
   (5) Facts, evidence, documents, testimony, or other evidence on
which the agency relies to support an initial determination that the
action will not have a significant adverse economic impact on
business.
   (6) A department, board, or commission within the  California
 Environmental Protection Agency, the  Natural 
Resources Agency, or the Office of the State Fire Marshal shall
describe its efforts, in connection with a proposed rulemaking
action, to avoid unnecessary duplication or conflicts with federal
regulations contained in the Code of Federal Regulations addressing
the same issues. These agencies may adopt regulations different from
federal regulations contained in the Code of Federal Regulations
addressing the same issues upon a finding of one or more of the
following justifications:
   (A) The differing state regulations are authorized by law.
   (B) The cost of differing state regulations is justified by the
benefit to human health, public safety, public welfare, or the
environment. 
   (7) The economic analysis required by Section 11346.3 and, as
appropriate, any review prepared by the University of California
pursuant to subdivision (d) of that section. 
   (c) A state agency that adopts or amends a regulation mandated by
federal law or regulations, the provisions of which are identical to
a previously adopted or amended federal regulation, shall be deemed
to have complied with subdivision (b) if a statement to the effect
that a federally mandated regulation or amendment to a regulation is
being proposed, together with a citation to where an explanation of
the provisions of the regulation can be found, is included in the
notice of proposed adoption or amendment prepared pursuant to Section
11346.5. However, the agency shall comply fully with this chapter
with respect to any provisions in the regulation that the agency
proposes to adopt or amend that are different from the corresponding
provisions of the federal regulation.
   (d) This section shall become operative on January 1, 2012.
   (e) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.
  SEC. 6.    Section 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. 
   It is not the intent of this section to impose additional criteria
on agencies, above that which exists in current law, in assessing
adverse economic impact on California business enterprises, but only
to assure that the assessment is made early in the process of
initiation and development of a proposed adoption, amendment, or
repeal of a regulation. 
   (b) (1) All state agencies proposing to adopt, amend, or repeal
any administrative regulations shall assess  whether and to
what extent it will affect   the impacts of the
regulations in the manner prescribed by the Department of Finance
pursuant to Section 11346.31. The standardized economic  
assessment shall consider all of  the following:
   (A) The creation or elimination of jobs within the State of
California.
   (B) The creation of new businesses or the elimination of existing
businesses within the State of California.
   (C) The expansion of businesses currently doing business within
the State of California. 
   (D) The benefits of the regulations including, but not limited to,
benefits to the health and welfare of California residents and
benefits to the state's environment.  
   (E) The extent to which the regulation will achieve the regulatory
or statutory objective intended.  
   (F) Whether there is a less burdensome regulatory alternative that
will effectively achieve the same benefits. 
   (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) No administrative regulation adopted on or after January 1,
1993, that requires a report shall 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. 
   (d) The agency shall request the University of California to
review the economic assessment prepared pursuant to paragraph (1) of
subdivision (b), and include any review by the university with that
assessment.  
   (e) Commencing January 1, 2014, the provisions of this section
shall apply only to a proposed regulation that the agency concludes
may have an economic impact of more than fifty million dollars
($50,000,000). 
   SEC. 7.    Section 11346.31 is added to the 
 Government Code   , to read:  
   11346.31.  (a) On or before June 30, 2013, the Department of
Finance shall adopt regulations in compliance with this chapter for
conducting the standardized economic assessment required by Section
11346.3. The regulations, at a minimum, shall assist the agencies in
specifying the methodologies for considering the following factors:
   (1) An analysis of the benefits and costs of the proposed
regulation, expressed in monetary terms to the extent feasible and
appropriate.
   (2) The creation or elimination of jobs within the State of
California.
   (3) The creation of new businesses or the elimination of existing
businesses within the State of California.
   (4) The expansion of businesses currently doing business within
the State of California.
   (5) The benefits of the regulations including, but not limited to,
benefits to the health and welfare of California citizens and
benefits to the state's environment.
   (6) An analysis of the effects of the regulations on sales tax,
income tax, and corporation tax revenue to the General Fund, and fee
revenues to special funds.
   (7) The extent to which the regulation will achieve the regulatory
or statutory objective intended.
   (8) Whether there is a less burdensome regulatory alternative that
will effectively achieve the same benefits.
   (b) In addition to adopting the regulations in compliance with
this chapter, the department shall publish the adopted guidelines in
the State Administrative Manual on or before January 1, 2014. 
   SEC. 8.    Section 11346.5 of the  
Government Code   is amended to read: 
   11346.5.  (a) The notice of proposed adoption, amendment, or
repeal of a regulation shall include the following:
   (1) A statement of the time, place, and nature of proceedings for
adoption, amendment, or repeal of the regulation.
   (2) Reference to the authority under which the regulation is
proposed and a reference to the particular code sections or other
provisions of law that are being implemented, interpreted, or made
specific.
   (3) An informative digest drafted in plain English in a format
similar to the Legislative Counsel's digest on legislative bills. The
informative digest shall include the following:
   (A) A concise and clear summary of existing laws and regulations,
if any, related directly to the proposed action and of the effect of
the proposed action.
   (B) If the proposed action differs substantially from an existing
comparable federal regulation or statute, a brief description of the
significant differences and the full citation of the federal
regulations or statutes.
   (C) A policy statement overview explaining the broad objectives of
the regulation and  , if appropriate, the specific
objectives   the specific benefits anticipated by the
regulation  . 
   (D) An evaluation of whether the proposed regulation is
inconsistent or incompatible with existing regulations. 
   (4) Any other matters as are prescribed by statute applicable to
the specific state agency or to any specific regulation or class of
regulations.
   (5) A determination as to whether the regulation imposes a mandate
on local agencies or school districts and, if so, whether the
mandate requires state reimbursement pursuant to Part 7 (commencing
with Section 17500) of Division 4.
   (6) An estimate, prepared in accordance with instructions adopted
by the Department of Finance, of the cost or savings to any state
agency, the cost to any local agency or school district
                             that is required to be reimbursed under
Part 7 (commencing with Section 17500) of Division 4, other
nondiscretionary cost or savings imposed on local agencies, and the
cost or savings in federal funding to the state.
   For purposes of this paragraph, "cost or savings" means additional
costs or savings, both direct and indirect, that a public agency
necessarily incurs in reasonable compliance with regulations.
   (7) If a state agency, in proposing to adopt, amend, or repeal any
administrative regulation, makes an initial determination that the
action may have a significant, statewide adverse economic impact
directly affecting business, including the ability of California
businesses to compete with businesses in other states, it shall
include the following information in the notice of proposed action:
   (A) Identification of the types of businesses that would be
affected.
   (B) A description of the projected reporting, recordkeeping, and
other compliance requirements that would result from the proposed
action.
   (C) The following statement: "The (name of agency) has made an
initial determination that the (adoption/amendment/repeal) of this
regulation may have a significant, statewide adverse economic impact
directly affecting business, including the ability of California
businesses to compete with businesses in other states. The (name of
agency) (has/has not) considered proposed alternatives that would
lessen any adverse economic impact on business and invites you to
submit proposals. Submissions may include the following
considerations:
   (i) The establishment of differing compliance or reporting
requirements or timetables that take into account the resources
available to businesses.
   (ii) Consolidation or simplification of compliance and reporting
requirements for businesses.
   (iii) The use of performance standards rather than prescriptive
standards.
   (iv) Exemption or partial exemption from the regulatory
requirements for businesses."
   (8) If a state agency, in adopting, amending, or repealing any
administrative regulation, makes an initial determination that the
action will not have a significant, statewide adverse economic impact
directly affecting business, including the ability of California
businesses to compete with businesses in other states, it shall make
a declaration to that effect in the notice of proposed action. In
making this declaration, the agency shall provide in the record
facts, evidence, documents, testimony, or other evidence upon which
the agency relies to support its initial determination. 
   An agency's initial determination and declaration that a proposed
adoption, amendment, or repeal of a regulation may have or will not
have a significant, adverse impact on businesses, including the
ability of California businesses to compete with businesses in other
states, shall not be grounds for the office to refuse to publish the
notice of proposed action. 
   (9) A description of all cost impacts, known to the agency at the
time the notice of proposed action is submitted to the office, that a
representative private person or business would necessarily incur in
reasonable compliance with the proposed action. 
   If no cost impacts are known to the agency, it shall state the
following:  
   "The agency is not aware of any cost impacts that a representative
private person or business would necessarily incur in reasonable
compliance with the proposed action." 
   (10) A statement of the results of the  standardized economic
 assessment  required   described  by
subdivision (b) of Section 11346.3  , if the assessment is
required pursuant to Section 11346.3  .
   (11) The finding prescribed by subdivision (c) of Section 11346.3,
if required.
   (12) A statement that the action would have a significant effect
on housing costs, if a state agency, in adopting, amending, or
repealing any administrative regulation, makes an initial
determination that the action would have that effect. In addition,
the agency officer designated in paragraph (14), shall make available
to the public, upon request, the agency's evaluation, if any, of the
effect of the proposed regulatory action on housing costs.
   (13) A statement that the adopting agency must determine that no
reasonable alternative considered by the agency or that has otherwise
been identified and brought to the attention of the agency would be
more effective in carrying out the purpose for which the action is
proposed or would be as effective and less burdensome to affected
private persons than the proposed action.
   (14) The name and telephone number of the agency representative
and designated backup contact person to whom inquiries concerning the
proposed administrative action may be directed.
   (15) The date by which comments submitted in writing must be
received to present statements, arguments, or contentions in writing
relating to the proposed action in order for them to be considered by
the state agency before it adopts, amends, or repeals a regulation.
   (16) Reference to the fact that the agency proposing the action
has prepared a statement of the reasons for the proposed action, has
available all the information upon which its proposal is based, and
has available the express terms of the proposed action, pursuant to
subdivision (b).
   (17) A statement that if a public hearing is not scheduled, any
interested person or his or her duly authorized representative may
request, no later than 15 days prior to the close of the written
comment period, a public hearing pursuant to Section 11346.8.
   (18) A statement indicating that the full text of a regulation
changed pursuant to Section 11346.8 will be available for at least 15
days prior to the date on which the agency adopts, amends, or
repeals the resulting regulation.
   (19) A statement explaining how to obtain a copy of the final
statement of reasons once it has been prepared pursuant to
subdivision (a) of Section 11346.9.
   (20) If the agency maintains an Internet Web site or other similar
forum for the electronic publication or distribution of written
material, a statement explaining how materials published or
distributed through that forum can be accessed.
   (b) The agency representative designated in paragraph (14) of
subdivision (a) shall make available to the public upon request the
express terms of the proposed action. The representative shall also
make available to the public upon request the location of public
records, including reports, documentation, and other materials,
related to the proposed action. If the representative receives an
inquiry regarding the proposed action that the representative cannot
answer, the representative shall refer the inquiry to another person
in the agency for a prompt response.
   (c) This section shall not be construed in any manner that results
in the invalidation of a regulation because of the alleged
inadequacy of the notice content or the summary or cost estimates, or
the alleged inadequacy or inaccuracy of the housing cost estimates,
if there has been substantial compliance with those requirements.
   SEC. 9.    Section 11346.9 of the  
Government Code   is amended to read: 
   11346.9.  Every agency subject to this chapter shall do the
following:
   (a) Prepare and submit to the office with the adopted regulation a
final statement of reasons that shall include all of the following:
   (1) An update of the information contained in the initial
statement of reasons. If the update identifies any data or any
technical, theoretical or empirical study, report, or similar
document on which the agency is relying in proposing the adoption,
amendment, or repeal of a regulation that was not identified in the
initial statement of reasons, or which was otherwise not identified
or made available for public review prior to the close of the public
comment period, the agency shall comply with Section 11347.1.
   (2) A determination as to whether adoption, amendment, or repeal
of the regulation imposes a mandate on local agencies or school
districts. If the determination is that adoption, amendment, or
repeal of the regulation would impose a local mandate, the agency
shall state whether the mandate is reimbursable pursuant to Part 7
(commencing with Section 17500) of Division 4. If the agency finds
that the mandate is not reimbursable, it shall state the reasons for
that finding.
   (3) A summary of each objection or recommendation made regarding
the specific adoption, amendment, or repeal proposed, together with
an explanation of how the proposed action has been changed to
accommodate each objection or recommendation, or the reasons for
making no change. This requirement applies only to objections or
recommendations specifically directed at the agency's proposed action
or to the procedures followed by the agency in proposing or adopting
the action. The agency may aggregate and summarize repetitive or
irrelevant comments as a group, and may respond to repetitive
comments or summarily dismiss irrelevant comments as a group. For the
purposes of this paragraph, a comment is "irrelevant" if it is not
specifically directed at the agency's proposed action or to the
procedures followed by the agency in proposing or adopting the
action.
   (4) A determination with supporting information that no
alternative considered by the agency would be more effective in
carrying out the purpose for which the regulation is proposed or
would be as effective and less burdensome to affected private persons
than the adopted regulation.  The determination shall be based,
in part, upon the standardized economic   assessment of the
proposed regulation, if an assessment is required pursuant to Section
11346.3. 
   (5) An explanation setting forth the reasons for rejecting any
proposed alternatives that would lessen the adverse economic impact
on small businesses.  The agency shall include, for purposes of
supporting information, the   standardized economic 
 assessment of the proposed regulation, if an assessment is
required pursuant to Section 11346.3. 
   (b) Prepare and submit to the office with the adopted regulation
an updated informative digest containing a clear and concise summary
of the immediately preceding laws and regulations, if any, relating
directly to the adopted, amended, or repealed regulation and the
effect of the adopted, amended, or repealed regulation. The
informative digest shall be drafted in a format similar to the
Legislative Counsel's Digest on legislative bills.
   (c) A state agency that adopts or amends a regulation mandated by
federal law or regulations, the provisions of which are identical to
a previously adopted or amended federal regulation, shall be deemed
to have complied with this section if a statement to the effect that
a federally mandated regulation or amendment to a regulation is being
proposed, together with a citation to where an explanation of the
provisions of the regulation can be found, is included in the notice
of proposed adoption or amendment prepared pursuant to Section
11346.5. However, the agency shall comply fully with this chapter
with respect to any provisions in the regulation which the agency
proposes to adopt or amend that are different from the corresponding
provisions of the federal regulation.
   (d) If an agency determines that a requirement of this section can
be satisfied by reference to an agency statement made pursuant to
Sections 11346.2 to 11346.5, inclusive, the agency may satisfy the
requirement by incorporating the relevant statement by reference.
   SEC. 10.    Section 11349.1 of the  
Government Code   is amended to read: 
   11349.1.  (a) The office shall review all regulations adopted,
amended, or repealed pursuant to the procedure specified in Article 5
(commencing with Section 11346) and submitted to it for publication
in the California Code of Regulations Supplement and for transmittal
to the Secretary of State and make determinations using all of the
following standards:
   (1) Necessity.
   (2) Authority.
   (3) Clarity.
   (4) Consistency.
   (5) Reference.
   (6) Nonduplication.
   In reviewing regulations pursuant to this section, the office
shall restrict its review to the regulation and the record of the
rulemaking proceeding. The office shall approve the regulation or
order of repeal if it complies with the standards set forth in this
section and with this chapter.
   (b) In reviewing proposed regulations for the criteria in
subdivision (a), the office may consider the clarity of the proposed
regulation in the context of related regulations already in
existence.
   (c) The office shall adopt regulations governing the procedures it
uses in reviewing regulations submitted to it. The regulations shall
provide for an orderly review and shall specify the methods,
standards, presumptions, and principles the office uses, and the
limitations it observes, in reviewing regulations to establish
compliance with the standards specified in subdivision (a). The
regulations adopted by the office shall ensure that it does not
substitute its judgment for that of the rulemaking agency as
expressed in the substantive content of adopted regulations.
   (d) The office shall return any regulation subject to this chapter
to the adopting agency if any of the following occur:
   (1) The adopting agency has not prepared the estimate required by
paragraph (6) of subdivision (a) of Section 11346.5 and has not
included the data used and calculations made and the summary report
of the estimate in the file of the rulemaking.
   (2) The agency has not complied with Section 11346.3. 
Noncompliance shall include a failure by the agency to complete the
standardized economic assessment, if required by Section 11346.3.
Noncompliance shall be determined by the office, in conjunction with
the Department of Finance, after a review of th   e
standardized economic assessment and a determination as to whether
that assessment substantially complies with the guidelines
established by Section 11346.31, and the determination of substantial
compliance shall not be based on compliance with the substantive law
that the regulation implements,   interprets, or makes
specific. 
   (3) The adopting agency has prepared the estimate required by
paragraph (6) of subdivision (a) of Section 11346.5, the estimate
indicates that the regulation will result in a cost to local agencies
or school districts that is required to be reimbursed under Part 7
(commencing with Section 17500) of Division 4, and the adopting
agency fails to do any of the following:
   (A) Cite an item in the Budget Act for the fiscal year in which
the regulation will go into effect as the source from which the
Controller may pay the claims of local agencies or school districts.
   (B) Cite an accompanying bill appropriating funds as the source
from which the Controller may pay the claims of local agencies or
school districts.
   (C) Attach a letter or other documentation from the Department of
Finance which states that the Department of Finance has approved a
request by the agency that funds be included in the Budget Bill for
the next following fiscal year to reimburse local agencies or school
districts for the costs mandated by the regulation.
   (D) Attach a letter or other documentation from the Department of
Finance which states that the Department of Finance has authorized
the augmentation of the amount available for expenditure under the
agency's appropriation in the Budget Act which is for reimbursement
pursuant to Part 7 (commencing with Section 17500) of Division 4 to
local agencies or school districts from the unencumbered balances of
other appropriations in the Budget Act and that this augmentation is
sufficient to reimburse local agencies or school districts for their
costs mandated by the regulation. 
   (4) The proposed regulation conflicts with an existing regulation
and the agency has not identified the manner in which the conflict
may be resolved.  
   (5) The agency did not make the alternatives determination in the
manner required by paragraph (4) of subdivision (a) of Section
11346.9. 
   (e) The office shall notify the Department of Finance of all
regulations returned pursuant to subdivision (d).
   (f) The office shall return a rulemaking file to the submitting
agency if the file does not comply with subdivisions (a) and (b) of
Section 11347.3. Within three state working days of the receipt of a
rulemaking file, the office shall notify the submitting agency of any
deficiency identified. If no notice of deficiency is mailed to the
adopting agency within that time, a rulemaking file shall be deemed
submitted as of the date of its original receipt by the office. A
rulemaking file shall not be deemed submitted until each deficiency
identified under this subdivision has been corrected.
   This subdivision shall not limit the review of regulations under
this article, including, but not limited to, the conformity of
rulemaking files to subdivisions (a) and (b) of Section 11347.3.
   SEC. 11.   Section 11349.75 is added to the 
 Government Code   , to read:  
   11349.75.  (a) Any interested person may petition a state agency
requesting an economic analysis, which the agency shall conduct in
the manner described in Section 11346.3, of an existing regulation
and of the identified reasonable alternatives to that existing
regulation.
   (b) A state agency shall perform the requested economic analysis
requested by this section unless it has completed an economic
analysis, either for the initial adoption of the regulation or
pursuant to this section, within a period of five years prior to the
submission of the petition. 
   SEC. 12.    Section 11349.10 is added to the 
 Government Code   , to read:  
   11349.10.  For major regulations adopted or amended on or after
July 1, 2012, the agency shall review, assess, and report to the
office on the cost and efficacy of the regulation beginning five
years after its adoption, and every five years thereafter. Regulatory
efficacy shall be the extent to which the regulatory and enforcement
activities of the department have accomplished the goals of the
authorizing statute. 
   SEC. 13.    Section 11351 of the  
Government Code   is amended to read: 
   11351.  (a) Except as provided in  subdivision 
 subdivisions  (b)  and (d)  , Article 5
(commencing with Section 11346), Article 6 (commencing with Section
11349), Article 7 (commencing with Section 11349.7), and Article 8
(commencing with Section 11350) shall not apply to the Public
Utilities Commission or the Workers' Compensation Appeals Board, and
Article 3 (commencing with Section 11343) and Article 4 (commencing
with Section 11344) shall apply only to the rules of procedure of
these state agencies.
   (b) The Public Utilities Commission and the Workers' Compensation
Appeals Board shall comply with paragraph (5) of subdivision (a) of
Section 11346.4 with respect to regulations that are required to be
filed with the Secretary of State pursuant to Section 11343.
   (c) Article 8 (commencing with Section 11350) shall not apply to
the Division of Workers' Compensation. 
   (d) The Public Utilities Commission shall comply with paragraphs
(3) and (4) of subdivision (a) of Section 11346.3 and with paragraph
(13) of subdivision (a) of Section 11346.5. 
   SEC. 14.    Section 11352 of the  
Government Code   is amended to read: 
   11352.  The following actions are not subject to this chapter:
   (a) The issuance, denial, or waiver of any water quality
certification as authorized under Section 13160 of the Water Code.
   (b) The issuance, denial, or revocation of waste discharge
requirements and permits pursuant to Sections 13263 and 13377 of the
Water Code and waivers issued pursuant to Section 13269 of the Water
Code.  However, the exception in this subdivision shall not apply
to any issuance, denial, or revocation of waste discharge
requirements and permits issued pursuant to Sections 13263 and 13377
of the Water Code and waivers issued pursuant to Section 13269 of the
Water Code, as to actions taken by the State Water Resources Control
Board   if     the waste discharge
requirement, permit, or waiver is applicable statewide or in an
entire region, and as to actions taken by a regional water quality
control board   if   the waste discharge
requirement, permit, or waiver is applicable throughout the region.

   (c) The development, issuance, and use of the guidance document
pursuant to Section 13383.7 of the Water Code.
   SEC. 15.    Section 11353 of the  
Government Code   is repealed.  
   11353.  (a) Except as provided in subdivision (b), this chapter
does not apply to the adoption or revision of state policy for water
quality control and the adoption or revision of water quality control
plans and guidelines pursuant to Division 7 (commencing with Section
13000) of the Water Code.
   (b) (1) Any policy, plan, or guideline, or any revision thereof,
that the State Water Resources Control Board has adopted or that a
court determines is subject to this part, after June 1, 1992, shall
be submitted to the office.
   (2) The State Water Resources Control Board shall include in its
submittal to the office all of the following:
   (A)  A clear and concise summary of any regulatory provisions
adopted or approved as part of that action, for publication in the
California Code of Regulations.
   (B) The administrative record for the proceeding. Proposed
additions to a policy, plan, or guideline shall be indicated by
underlined text and proposed deletions shall be indicated by
strike-through text in documents submitted as part of the
administrative record for the proceeding.
   (C) A summary of the necessity for the regulatory provision.
   (D) A certification by the chief legal officer of the State Water
Resources Control Board that the action was taken in compliance with
all applicable procedural requirements of Division 7 (commencing with
Section 13000) of the Water Code.
   (3) Paragraph (2) does not limit the authority of the office to
review any regulatory provision which is part of the policy, plan, or
guideline submitted by the State Water Resources Control Board.
   (4) The office shall review the regulatory provisions to determine
compliance with the standards of necessity, authority, clarity,
consistency, reference, and nonduplication set forth in subdivision
(a) of Section 11349.1. The office shall also review the responses to
public comments prepared by the State Water Resources Control Board
or the appropriate regional water quality control board to determine
compliance with the public participation requirements of the Federal
Water Pollution Control Act (33 U.S.C. Sec. 1251 et seq.). The office
shall restrict its review to the regulatory provisions and the
administrative record of the proceeding. Sections 11349.3, 11349.4,
11349.5, and 11350.3 shall apply to the review by the office to the
extent that those sections are consistent with this section.
   (5) The policy, plan, guideline, or revision shall not become
effective unless and until the regulatory provisions are approved by
the office in accordance with subdivision (a) of Section 11349.3.
   (6) Upon approval of the regulatory provisions, the office shall
transmit to the Secretary of State for filing the clear and concise
summary of the regulatory provisions submitted by the State Water
Resources Control Board.
   (7) Any proceedings before the State Water Resources Control Board
or a California regional water quality control board to take any
action subject to this subdivision shall be conducted in accordance
with the procedural requirements of Division 7 (commencing with
Section 13000) of the Water Code, together with any applicable
requirements of the Federal Water Pollution Control Act (33 U.S.C.
Sec. 1251 et seq.), and the requirements of this chapter, other than
the requirement for review by the office in accordance with this
subdivision, shall not apply.
   (8) This subdivision shall not provide a basis for review by the
office under this subdivision or Article 6 (commencing with Section
11349) of any such policy, plan, or guideline adopted or revised
prior to June 1, 1992.
   (c) Subdivision (a) does not apply to a provision of any policy,
plan, guideline, or revision, as applied to any person who, as of
June 1, 1992, was a party to a civil action challenging that
provision on the grounds that it has not been adopted as a regulation
pursuant to this chapter.
   (d) Copies of the policies, plans, and guidelines to which
subdivision (a) applies shall be maintained at central locations for
inspection by the public. The State Water Resources Control Board
shall maintain, at its headquarters in Sacramento, a current copy of
each policy, plan, or guideline in effect. Each regional water
quality control board shall maintain at its headquarters a current
copy of each policy, plan, or guideline in effect in its respective
region. Any revision of a policy, plan, or guideline shall be made
available for inspection by the public within 30 days of its
effective date. 
   SEC. 16.    Section 11354.1 of the  
Government Code   is amended to read: 
   11354.1.  (a) For purposes of this section, "commission" means the
San Francisco Bay Conservation and Development Commission.
   (b) This chapter does not apply to any policy, plan, or guideline
adopted by the commission prior to January 1, 1996, pursuant to
Chapter 5 (commencing with Section 66650) of Title 7.2 of this
                                       code or Division 19
(commencing with Section 29000) of the Public Resources Code.
   (c) The issuance or denial by the commission of any permit
pursuant to subdivision (a) of Section 66632, and the issuance or
denial by, or appeal to, the commission of any permit pursuant to
Chapter 6 (commencing with Section 29500) of Division 19 of the
Public Resources Code, are not subject to this chapter.
   (d) (1) Any amendments or other changes to the San Francisco Bay
Plan or to a special area plan pursuant to Chapter 5 (commencing with
Section 66650) of Title 7.2, adopted by the commission on or after
January 1, 1996, and any amendments or other changes to the Suisun
Marsh Protection Plan, as defined in Section 29113 of the Public
Resources Code, or in the Suisun Marsh local protection program, as
defined in Section 29111 of the Public Resources Code, adopted by the
commission on and after January 1, 1996, shall be submitted to the
office but are not subject to this chapter except as provided in this
subdivision.
   (2) The commission shall include in its submittal to the office
pursuant to paragraph (1) both of the following documents:
   (A) A clear and concise summary of any regulatory provision
adopted or approved by the commission as part of the proposed change
for publication in the California Code of Regulations.
   (B) The administrative record for the proceeding, and a list of
the documents relied upon in making the change. Proposed additions to
the plans shall be indicated by underlined text, and proposed
deletions shall be indicated by strike-through text in documents
submitted as part of the administrative record for the proceeding.
   (3) The office shall review the regulatory provisions to determine
compliance with the standards of necessity, authority, clarity,
consistency, reference, and nonduplication set forth in subdivision
(a) of Section 11349.1. The office shall also review the responses to
public comments prepared by the commission to determine compliance
with the public participation requirements of Sections 11000 to
11007, inclusive, of Title 14 of the California Code of Regulations,
and to ensure that the commission considers all relevant matters
presented to it before adopting, amending, or repealing any
regulatory provision, and that the commission explains the reasons
for not modifying a proposed plan change to accommodate an objection
or recommendation. The office shall restrict its review to the
regulatory provisions and the administrative record of the
proceeding. Sections 11349.3, 11349.4, 11349.5, and 11350.3 shall
apply to the review by the office to the extent that those sections
are consistent with this section.
   (4) In reviewing proposed changes to the commission's plans for
the criteria specified in subdivision (a) of Section 11349.1, the
office shall consider the clarity of the proposed plan change in the
context of the commission's existing plans.
   (5) The proposed plan or program change subject to this
subdivision shall not become effective unless and until the
regulatory provisions are approved by the office in accordance with
subdivision (a) of Section 11349.3.
   (6) Upon approval of the regulatory provisions, the office shall
transmit to the Secretary of State for filing the clear and concise
summary of the regulatory provisions submitted by the commission.

   (7) Notwithstanding paragraph (1), any amendments or other changes
to the San Francisco Bay Plan, the Suisun Marsh Protection Plan, or
the Suisun Marsh local protection program, adopted by the commission,
shall be subject to the requirements of subdivisions (b), (d), and
(e) of Section 11346.3 and paragraph (13) of subdivision (a) of
Section 11346.5. 
   (e) Except as provided in subdivisions (b), (c), and (d), the
adoption of any regulation by the commission shall be subject to this
chapter in all respects.
   SEC. 17.    Section 57005 of the   Health
and Safety Code   is amended   to read: 
   57005.  (a) Commencing January 1, 1994, each board, department,
and office within the agency, before adopting any major regulation,
shall evaluate the alternatives to the requirements of the proposed
regulation that are submitted to the board, department, or office
pursuant to paragraph (7) of subdivision (a) of Section 11346.5 of
the Government Code  , respond to the comments pursuant to
paragraph (13) of subdivision (a) of Section 11346.5 of the
Government Code,  and consider whether there is a less costly
alternative or combination of alternatives which would be equally as
effective in achieving increments of environmental protection in a
manner that ensures full compliance with statutory mandates within
the same amount of time as the proposed regulatory requirements.
   (b) For purposes of this section, "major regulation" means any
regulation that will have an economic impact on the state's business
enterprises in an amount exceeding  ten million dollars
($10,000,000)   fifty million dollars ($50,000,000) in
one year  , as estimated by the board, department, or office
within the agency proposing to adopt the regulation in the assessment
required by subdivision (a) of Section 11346.3 of the Government
Code.
   (c) On or before December 31, 1994, after consulting with the
Secretary of Trade and Commerce, the director or executive officer of
each board, department, and office within the agency, and after
receiving public comment, the secretary shall adopt guidelines to be
followed by the boards, departments, and offices within the agency
concerning the methods and procedures to be used in conducting the
evaluation required by this section. 
  SECTION 1.    Section 434 of the Food and
Agricultural Code is amended to read:
   434.  The department shall issue and cause to be printed and
distributed to the commissioners, and to other persons as it may deem
proper, bulletins, charts, photographs or other illustrative
material or statements which contain all the information which is
best adapted to advance the interest, business, and development of
agriculture in the state. The department may broadcast those portions
of the illustrative material or statements that are adapted to give
effect to this code. It may exhibit or display data and material that
have been collected or prepared, and may incur expenses which are
necessarily incidental to the exhibit or display of that data and
material.