California Globe

One of the key roles played by the federal Office of Management and Budget (OMB) is the review and approval of federal regulations adopted by federal agencies and departments. In California, that role is played primarily by the Office of Administrative Law (OAL).

Government Code Section 13075 provides that, when authorized or required by the Legislature in the Budget Act, the Department of Finance (DOF) may exercise control over the adoption of regulations as provided in this section. The Legislature is prohibited from authorizing or requiring the DOF in the Budget Act to review and approve regulations adopted by state agencies except:

• Regulations adopted by the Department of Social Services which add to the cost of any public assistance programs.

• Regulations adopted by a state agency which would have the effect of increasing expenditures from the Health Care Deposit Fund under the Medical Assistance Program.

The Department of Finance must limit its review of a regulation under this section to making a determination as to whether sufficient funds are available to fund the added program expenditures which would be incurred if the regulation were adopted.

In making the determination concerning the sufficiency of funds to meet the costs of the regulation, the Director of Finance is required to consider the amount of the costs which would be added to the program or the increased expenditures from the Health Care Deposit Fund for the fiscal year during which the costs or expenditures would be incurred.

The Director of DOF must also consider the effect a change would have on the expenditure limitations established in the Budget Act for that year, and the extent to which the regulation constitutes a deviation from the program requirements, the assumptions, and the estimates which were the basis for establishing the expenditure limitations in the Budget Act.

In addition, the DOF is required to issue written instructions to the state agencies which adopt regulations subject to the provisions of this section. The instructions must include the data requirements, methods of estimating costs or expenditures, and the narrative explanation which the department requires in order to review regulations which it is authorized or required to review.

Finally, the DOF is required to complete the review of any regulation subject to the provisions of this section within 15 working days following its receipt. If the DOF fails to act within that period of time, the regulation is deemed approved by the DOF.