Codes of Regulations/Administrative Codes

California and Texas each have a code of regulations. In fact, each state has such a code in one form or another. These are the rules put forth by state executive agencies. This means that they are not legislation in the strict sense. However, they are supplements to legislation.

Think of it like this: the legislature does not have the resources to develop every rule and regulation needed to implement their legislation or the policies behind that legislation. So they empower executive agencies to implement further rules (whether or not this is a good thing is outside the scope of this post). For example, the California legislature might empower the Contractors State License Board to create fee structures for certain licenses. The CSLB is an executive agency (a subsidiary of the Department of Consumer Affairs).

In California, this code is the Code of Regulations. In Texas, this code is the Administrative Code. The federal government has its Code of Federal Regulations ("CFR"). Other examples include New York's Rules and Regulations and New Hampshire's Code of Administrative Rules.

Unfortunately, many business owners do not take the time to familiarize themselves with their state's administrative code. But the consequences of violating those regulations can be serious. For example, depending on the number of citations and whether an injury has occurred, the failure to have an Illness and Injury Prevention Program in California can come with fines in excess of $14,000 (the citation structure is somewhat complex). These citations are public, and can be found on the California Department of Industrial Relations website.

Take the time to look through your state's regulatory or administrative code. They are often not user-friendly, but worth the time to know what your industry's regulatory authority requires of your business.