BILL ANALYSIS SENATE COMMITTEE ON Public Safety Senator Bruce McPherson, Chair S 2001-2002 Regular Session B 5 6 3 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 (More) SB 563 (Morrow) Page 2 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 (More) SB 563 (Morrow) Page 3 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 (More) SB 563 (Morrow) Page 4 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 (More) SB 563 (Morrow) Page 5 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 (More) SB 563 (Morrow) Page 6 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. " (More) ?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: (More) SB 563 (Morrow) Page 8 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." SB 563 (Morrow) Page 9 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 ***************