BILL ANALYSIS                                                                                                                                                                                                    







                          SENATE COMMITTEE ON Public Safety
                             Senator Bruce McPherson, Chair     S
                                2001-2002 Regular Session       B

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          SB 563 (Morrow)                                       
          As Introduced February 22, 2001
          Hearing date:  April 17, 2001
          Penal Code
          SH:mc

                   DEPARTMENT OF CORRECTIONS RULEMAKING PROCEDURES -

                         EMERGENCY REGULATIONS/PILOT PROJECTS  


                                       HISTORY

          Source:  California Law Revision Commission

          Prior Legislation: ACR 17 - Resolution Chapter 81, Statutes of  
          1999
                            SB 1450 - 1998 - failed Assembly floor
                            AB 3563 - Chapter 692, Statutes of 1994

          Support: California Attorneys for Criminal Justice

          Opposition:None known

                                           
                                     KEY ISSUES
           
          SHOULD THE EMERGENCY RULEMAKING AUTHORITY OF THE DEPARTMENT OF  
          CORRECTIONS BE CHANGED, AS SPECIFIED, INCLUDING THE FOLLOWING:
           
           ADDING A DEFINITION OF "PILOT PROGRAM"?

           SPECIFYING THAT PROCEDURES FOR ADOPTING A PILOT PROGRAM  




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            REGULATION AND EMERGENCY REGULATIONS ALSO APPLY TO THE  
            AMENDMENT OR REPEAL SUCH REGULATIONS?

                                                                (CONTINUED)




           EXTENDING THE PERIOD FOR OFFICE OF ADMINISTRATIVE LAW REVIEW OF AN  
            EMERGENCY REGULATION JUSTIFIED BY THE DEPARTMENT OF CORRECTIONS ON  
            THE BASIS OF ITS OPERATIONAL NEEDS, RATHER THAN ON THE BASIS OF AN  
            EMERGENCY?



                                       PURPOSE
          

          The purpose of this bill is to make specified changes  
          recommended by the California Law Revision Commission in the  
          emergency rulemaking authority of the Department of Corrections.
          
           Under existing law  , the Director of the Department of  
          Corrections is vested with the supervision, management and  
          control of the state prisons and is responsible for the care,  
          custody, treatment, training, discipline and employment of a  
          person confined in those prisons.  The Director may prescribe  
          rules and regulations for the administration of the prisons.   
          (Penal Code sections 5054 and 5058)

           Existing law  provides that in general, all regulations shall be  
          adopted pursuant the Administrative Procedures Act, but exempts  
          from that requirement Department of Corrections regulations  
          relating to pilot programs or to imminent danger, as specified,  
          and also exempts emergency regulations from certain requirements  
          of the Administrative Procedures Act.  (Penal Code section 5058)

           Existing law  generally provides that state agency rulemaking is  
          subject to the requirements, including notice, hearing, and  
          review by the Office of Administrative Law, of the  




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          Administrative Procedure Act.  (Government Code sections  
          11340-11359) 

           This bill  makes changes to the emergency rulemaking authority of  
          the Department of Corrections, including the following:

           Adds a definition of "pilot program."
           Specifies that procedures for adopting a pilot program  
            regulation and emergency regulations also apply to the  
            amendment or repeal such regulations.
           Extends the period for Office of Administrative law review of  
            an emergency regulation justified by the Department of  
            Corrections on the basis of its operational needs, rather than  
            on the basis of an emergency.




                                      COMMENTS

          1.   Origin of This Bill  

          The California Law Revision Commission is required to study, and  
          is limited to studying, those topics approved for its study by  
          concurrent resolution of the Legislature.  ACR 17 (Wayne), Res.  
          Chap. 81, Stats. 1999, contained the following as a continuing  
          study topic:

               (11) Whether there should be changes to administrative law;

          As part of that ongoing study, the Commission issued a Preprint  
          Recommendation in October 2000 on "Rulemaking Under Penal Code  
          section 5058" which contains the following:


               As a general matter, rulemaking by a state agency is  
               governed by the Administrative Procedure Act.  Penal Code  
               section 5058 provides special procedures for rulemaking by  
               the Department of Corrections.  The Law Revision Commission  
               has studied the provisions of section 5058 that govern  




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               pilot program regulations and emergency rulemaking, and  
               recommends a number of minor improvements to those  
               provisions.  The recommended changes would do the  
               following:

               (1)  Define "pilot program" for the purposes of the  
               special procedures governing pilot programs.

               (2)  Make it clear that the special procedures for  
               adopting a pilot program regulation also apply to the  
               amendment or repeal of a pilot program regulation.

               (3)  Require that the Department explain in writing why  
               its operational needs require emergency rulemaking, where  
               the Department proceeds with emergency rulemaking on the  
               basis of its operational needs, rather than on the basis  
               of an emergency.

               (4)  Extend the period for review of an emergency  
               regulation by the Office of Administrative Law, where the  
               Department proceeds with emergency rulemaking on the  
               basis of its operational needs, rather than on the basis  
               of an emergency.

               (5)  Make it clear that the procedures for emergency  
               adoption of a regulation also apply to the emergency  
               amendment or repeal of a regulation.


          2.   Pilot-Project Definition Added by This Bill
           
          The Commission background notes the following regarding the  
          Department of Corrections authority to implement regulations  
          pertaining to "pilot programs" with most procedures applicable  
          to rulemaking:

               Under section 5058, regulations implementing Department  
               "pilot programs" are exempt from most rulemaking  
               procedures.  The Department conducts a fiscal impact  
               analysis of a proposed regulation, then submits the  




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               regulation to the Office of Administrative Law (OAL) for  
               filing with the Secretary of State and publication in the  
               California Code of Regulations.  The regulation takes  
               effect immediately.  There are three limitations on the  
               exemption:
               (1)  The director of the Department must certify that a  
               regulation adopted under the exemption relates to a  
               "legislatively mandated or authorized pilot program or a  
               departmentally authorized pilot program."
               (2)  A pilot program may not affect more than 10% of the  
               inmate population (measured by reference to the gender of  
               the affected population, i.e. 10% of men if only men are  
               affected, or women if only women are affected, or both if  
               both are affected).
               (3)  A regulation adopted under the exemption lapses by  
               operation of law two years after adoption.  (footnotes  
               omitted)

          The Commission background includes the following proposed change  
          to "pilot programs":

               Existing law does not define "pilot program" for the  
               purposes of section 5058.  There does not appear to be any  
               general definition of "pilot program" or any similar term  
               in any of the codes.  This may make it difficult to  
               determine whether a particular program qualifies for the  
               exemption.  However, a survey of statutes establishing  
               pilot programs reveals certain common characteristics:   
               experimental purpose and limited duration and scope.  The  
               proposed law includes a definition of "pilot program" that  
               is consistent with this general usage:  "a program  
               implemented on a temporary and limited basis in order to  
               test and evaluate the effectiveness of the program, develop  
               new techniques, or gather information."  In order to help  
               evaluate whether a particular program is a pilot program  
               subject to the exemption, the proposed law would require  
               the Department to describe the program in writing when  
               adopting implementing regulations.  

               ?Existing law does not state whether the pilot program  




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               exemption also applies to the amendment or repeal of a  
               pilot program regulation.  The proposed law would make  
               clear that the exemption applies to the adoption,  
               amendment, and repeal of a pilot program regulation.  This  
               would give the Department necessary flexibility in the  
               administration of its pilot programs.  (footnotes omitted)

          3.   Emergency Rulemaking Authority - Operational Needs   

          The Commission notes the following:

               Under the Administrative Procedure Act, an agency may adopt  
               a regulation on an expedited basis, without prior public  
               notice and comment, where the regulation is shown to be  
               "necessary for the immediate preservation of the public  
               peace, health and safety or general welfare."  A decision  
               to do so is subject to review by OAL, which will block  
               adoption of the regulation if the showing of emergency is  
               insufficient.  An emergency regulation lapses by operation  
               of law after 120 days, unless the agency adopts it under  
               the regular rulemaking procedure before that date.  Under  
               section 5058, the Department does not need to show the  
               existence of an emergency in order to adopt an emergency  
               regulation.  Instead, the Department need only certify that  
               "the operational needs of the Department require adoption  
               of the regulation on an emergency basis."  The  
               certification is not subject to substantive review by OAL.   
               This relaxed emergency rulemaking procedure is intended to  
               "authorize the Department to expedite the exercise of its  
               power to implement regulations as its unique operational  
               circumstances require. "













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               ?Section 5058 clearly authorizes the Department to use  
               emergency rulemaking in a broader set of circumstances than  
               is generally permitted.  By its own figures, the Department  
               uses emergency rulemaking, on the basis of operational  
               necessity rather than on the basis of emergency, in about  
               two-thirds of its rulemaking activity.  [Footnote indicates  
               from CDC letter "it used the emergency rulemaking procedure  
               on the basis of operational necessity in 66% of its  
               rulemaking activities for the period from 1997-99."] Some  
               commentators believe that this constitutes overuse.  This  
               proposition is difficult to evaluate, as it involves a  
               policy judgment about which circumstances fall within the  
               "operational needs" of the Department for expedited  
               rulemaking.  Critics of the Department's use of emergency  
               rulemaking point to cases where emergency rulemaking has  
               been used to adopt a regulation years after the need for  
               the regulation arose.  In such cases, the need for  
               expedited rulemaking procedures is questionable.  

               ?If the Department bases its use of emergency rulemaking on  
               its operational needs, rather than on the existence of an  
               actual "emergency," the proposed law would require that the  
               Department explain, in writing, its operational need to use  
               emergency rulemaking.  Such an explanation would help  
               answer public concerns regarding the propriety of a  
               decision to use emergency rulemaking.  In addition,  
               requiring a written justification of an agency decision  
               often improves the quality of agency decisionmaking, as the  
               agency is forced to anticipate and consider likely  
               arguments against its intended action.  The explanation  
               would not be required if the department proceeds on the  
               basis of an actual emergency, pursuant to the regular  
               emergency rulemaking procedure, or if the Department acts  
               in response to "imminent danger. "   

          Committee staff is informed that the following statistics  
          reflect Department of Corrections' rulemaking actions in the  
          past two years:





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                                                   1999       2000  
               Regular Filing                             2      8
               Operational Necessity                      6      3
                  TOTAL                              8     11


          4.   Emergency Rulemaking Authority - Office of Administrative  
          Law Time for Review
           
          The Commission notes the following about the time for OAL review  
          of emergency regulations adopted for operational needs:

               Under existing law, OAL reviews proposed emergency  
               regulations to ensure that the rulemaking agency has  
               followed required procedures and that the regulation  
               satisfies applicable statutory standards (including  
               necessity, consistency with governing law, authority to  
               adopt the regulation and clarity).  The period for this  
               review is very short. The Office of Administrative Law has  
               only 10 calendar days to complete its review, and accepts  
               public comments for only the first five calendar days of  
               that period.  Considering that about two-thirds of the  
               Department's regulations are first adopted as emergency  
               regulations, most of the Department's regulations are  
               subject to only minimal review before they become  
               effective.

               The Commission recommends that the period for review of an  
               emergency regulation adopted on the basis of the  
               Department's operational needs be extended from 10 to 20  
               days.  The period for public comment to OAL regarding such  
               a regulation would be extended from five to 10 days.  This  
               would result in only a modest delay in implementing such  
               regulations, but would double the time available for their  
               review.  There would be no extension of the review period  
               if the Department proceeds on the basis of an actual  
               emergency, pursuant to the regular emergency rulemaking  
               procedure, or if the Department acts in response to  
               "imminent danger."












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          5.   Emergency Amendment Repeal  

          The Commission notes that the existing Department of Corrections  
          emergency authority does not specifically apply to the repeal of  
          such regulations:

               Existing law is unclear with regard to whether the special  
               emergency rulemaking procedure applies to the amendment or  
               repeal of a regulation, as well as the adoption of a  
               regulation.  The proposed law would make clear that the  
               procedure also applies to the emergency amendment or repeal  
               of a regulation.  This is consistent with the change  
               proposed for the provisions governing pilot program  
               regulations and with the Commission's general  
               recommendation on administrative rulemaking


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