AB 1232: Administrative Procedure Act: proposed regulations: cost of living impact on residents of the state.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law, 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 a state agency proposing to adopt, amend, or repeal any administrative regulation to assess the potential for adverse economic impact on California business enterprises and individuals and requires the state agency to adhere to specified requirements in making that assessment.

This bill would include among those requirements for assessing the potential for adverse economic impact the consideration of the proposal’s cost of living impacts on residents of the state, as defined.

Existing law requires a state agency proposing to adopt, amend, or repeal a regulation that is not a major regulation to prepare an economic impact assessment that includes to what extent the regulation will affects specified factors, including the creation or elimination of jobs within the state. Existing law requires a state agency proposing to adopt, amend, or repeal a major regulation to prepare a standardized regulatory impact analysis that addresses specified factors, including the creation or elimination of jobs within the state.

This bill would also require the assessment for nonmajor regulations to include to what extent it will affect the cost of living impacts on residents of the state, and would require the standardized regulatory impact analysis for major regulations to address the cost of living impacts on residents of the state. The bill would require an agency to notify the office when the agency determines it needs to contract for outside services to perform the analyses and would require the office to select the contractor and oversee its work. The bill would require the office to adopt a standardized cost of living methodology for use by all agencies.

Existing law requires the office to review regulations and make determinations using specified standards, including, necessity, authority, and clarity.

This bill would add to those standards the cost of living impacts on residents of the state. The bill would require the office, in reviewing proposed regulations for that criteria, to conduct an independent analysis into the adequacy of an agency’s economic analyses, to conduct its own analysis into the cost of living impacts on residents in the state, and, if the office finds those costs of living impacts are significant, to identify means by which the costs of the proposed regulation could be reduced.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 2, 2026From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2. January 31, 2026Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
3. May 23, 2025In committee: Held under submission.
4. May 21, 2025Joint Rule 62(a), file notice suspended. (Page 1627.)
5. May 21, 2025In committee: Set, first hearing. Referred to APPR. suspense file.
6. May 14, 2025In committee: Hearing postponed by committee.
7. April 30, 2025From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (April 29). Re-referred to Com. on APPR.
8. April 22, 2025From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 8. Noes 0.) (April 22). Re-referred to Com. on JUD.
9. April 1, 2025Re-referred to Com. on E.D., G., & H.I.
10. March 28, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on E.D., G., & H.I. Read second time and amended.
11. March 28, 2025Referred to Coms. on E.D., G., & H.I. and JUD.
12. February 24, 2025Read first time.