Job Creator Bill Promoting Transparency Passes Senate Committee

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A California Chamber of Commerce-supported job creator bill that encourages job growth by promoting government accountability and a transparent process when proposing new residential building standards passed the Senate Transportation and Housing Committee this week, the CalChamber's June 15th Alert newsletter reported. AB 1612 (Lara; D-Los Angeles) promotes government accountability and a transparent process by requiring proposed new residential building standards to include the cost of compliance, potential benefits of the proposed standard and the underlying model used to achieve those estimates.

This bill is a part of the CalChamber’s 2012 Renew Agenda and will help position California for economic recovery.

Currently, when an agency provides its economic analysis of a proposed building standard, it may choose to not include the cost of compliance if it deems there would be "no significant impact on housing."

However, such ambiguous, subjective language creates uncertainties and does not allow the industry to fully prepare for the proposed standard.

AB 1612 requires an agency proposing a residential building standard to cite the cost of compliance, potential benefits of the proposed standard, and the underlying assumptions used in achieving those estimates. Hence, AB 1612 would present a clear understanding of economic impacts of new regulations. This bill would provide some relief to the ailing residential construction industry by increasing transparency and certainty.

Key Vote

AB 1612 passed Senate Transportation and Housing on June 12, 8-0.

Ayes: DeSaulnier (D-Concord), Gaines (R-Roseville), Harman (R-Huntington Beach), Kehoe (D-San Diego), A. Lowenthal (D-Long Beach), Pavley (D-Agoura Hills), Rubio (D-East Bakersfield), Wyland (R-Escondido).

Absent/abstaining/not voting: Simitian (D-Palo Alto).