WeVote
Log In

Bill

Bill

SB 986

Major regulations.

2025-2026 Regular Session Introduced by Kelly Seyarto and 1 co-sponsor

California SB 986 would require legislative approval and a 60-day review with independent analyses before any major regulation ($50M+ impact) can take effect.

Set for hearing April 27.
#majorregulations
0
WeVote Research Nonpartisan
Bill Summary · SB 986

Summary of California SB 986 (2025-2026): Major Regulations

Note: This bill is titled “Major regulations” and would amend the Administrative Procedure Act (APA) framework governing state regulations in California. It introduces new oversight and procedural steps for major regulations, with a focus on increased legislative review and independent analyses.

1) Purpose and intent

  • The bill aims to give the Legislature a formal, explicit role in approving major regulations before they take effect.
  • It seeks to strengthen accountability and transparency by requiring additional analyses, notices, hearings, and a defined 60-day legislative review window.
  • It adds a mechanism for the Legislature to reject a major regulation during the review period and provides consequences if no action is taken within 60 days.

2) Key provisions and changes

  • Definitions and scope

    • Reaffirms the Administrative Procedure Act (APA) baseline for regulatory actions.
    • Defines “major regulation” as a regulation with an economic impact exceeding $50 million (existing standard) and subject to Office of Administrative Law (OAL) review, with added requirements for major regulations.

  • Legislative approval and review (new framework)

    • A major regulation cannot take effect until the Legislature enacts a law approving it, including submission to and expiration of a 60-day legislative review period, except for emergency regulations.
    • The Legislature must hold an informational hearing on the major regulation before the 60-day window expires.
    • The Legislature may adopt a concurrent resolution to reject the major regulation during the 60-day review period; if rejected, the regulation cannot take effect.
    • If the Legislature neither rejects nor approves (i.e., does not act within 60 days), the regulation is deemed disapproved and would not take effect.

  • Enhanced agency notice and analysis requirements (for major regulations)

    • Agencies must include in notice of proposed action a determination of whether the regulation is a major regulation.
    • For major regulations, agencies must prepare a standardized regulatory impact analysis addressing:
    • Jobs created/eliminated in-state
    • New/eliminated businesses in-state
    • Competitive advantages/disadvantages for California businesses
    • Estimated state revenue impact
    • Incentives for innovation
    • Overall benefits (health, safety, environment, etc.)
    • Estimated societal cost savings and compliance costs
    • Estimated state expenditures and opportunity costs
    • Key sources and uncertainties
    • The Office of Administrative Law (OAL) must independently determine whether a proposed regulation is a major regulation and produce an independent regulatory impact analysis mirroring the standardized analysis, submitted to the Legislature for approval or disapproval.

  • Expanded reporting to the Legislature

    • Agencies must submit the required information and analyses to the Legislature (in addition to OAL and Secretary of State) for major regulations.
    • Notice of proposed action must include a detailed explanation of the regulation’s major-regulation status and related analyses.

  • OAL review and standards

    • OAL’s review standards expand to emphasize economic impact and independent determination of major-regulation status.
    • OAL must provide an independent regulatory impact analysis for each major regulation.

  • Administrative and procedural timelines

    • Once the Office approves a major regulation, final regulation submission to the Legislature must occur within five calendar days.
    • The Legislature has a 60-business-day window to review, hold hearings, and vote on a concurrent-resolution rejection or approval.
    • If Governor deems necessary, special session could be called to facilitate legislative voting on a major regulation in non-session periods.

3) Who/what would be affected

  • State agencies proposing regulations that would be classified as major regulations (>$50 million in economic impact).
  • The Office of Administrative Law (OAL), which would perform independent major-regulation determinations and produce independent regulatory impact analyses.
  • The California Legislature, which would gain formal oversight through a 60-day review period and the simple mechanism of a concurrent resolution to reject a major regulation.
  • Businesses, local governments, and state agencies, due to expanded analysis requirements and potential changes to regulatory timing and impact.

4) Procedural and timeline aspects

  • New 60-day legislative review period for major regulations, with mandatory informational hearing.
  • Possible rejection by concurrent resolution during the 60 days; otherwise, regulation remains disapproved if not acted upon.
  • Emergency regulations remain excepted from the 60-day requirement (consistent with existing emergency authority).
  • Independent analyses by OAL, with submission to Legislature for approval/disapproval.
  • Schedule alignment: final regulation delivered to Legislature within 5 days after OAL approval; 60-day review window starts upon notice to the Legislature.

5) Potential considerations and impacts

  • Strengthened checks on sizable regulatory actions could slow the implementation of major regulations but increase democratic oversight.
  • Expanded reporting and independent analyses may raise the upfront costs and time for agency rulemaking but improve transparency and public consideration.
  • The bill does not alter the substantive regulatory standards themselves; it emphasizes procedural oversight and the need for legislative approval for major regulations.

If you’d like, I can provide a side-by-side comparison with the current APA framework to highlight exactly where SB 986 would change processes and timelines.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.