CA SB356

Requires agencies that do not or cannot consult with parties subject to proposed regulations to notify the Office of Small Business Advocate and Department of Finance in writing with reasons for non-consultation.

Mandates agencies describe reasons for rejecting each specific regulatory alternative, including alternatives that would reduce adverse impacts on small businesses, and removes exemptions for artificial or unreasonable alternatives.

Requires agencies to prepare a small business economic impact statement before submitting proposals, including identification of affected small businesses, estimated annual compliance costs, and statewide compliance costs.

Changes notice of proposed action requirements to include the small business economic impact statement and, if no cost impact exists, a statement describing how businesses could comply without incurring costs.

Authorizes the Office of Administrative Law to reject proposed regulations lacking required small business economic impact statement information and expands definition of "interested person" in judicial review provisions to explicitly include small businesses and trade associations representing small businesses.