BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 110 (Steinberg) - California Transportation Commission  
          guidelines.
          
          Amended: As introduced          Policy Vote: T&H 11-0
          Urgency: No                     Mandate: No
          Hearing Date: April 15, 2013                            
          Consultant: Mark McKenzie       
          
          This bill does not meet the criteria for referral to the  
          Suspense File.
           
          
          Bill Summary: SB 110 would establish procedures for the  
          California Transportation Commission (CTC) to follow when  
          adopting guidelines, and specify that CTC is exempt from the  
          rulemaking provisions of the Administrative Procedures Act (APA)  
          when adopting guidelines.

          Fiscal Impact: Potential costs in the range of $50,000 to  
          $70,000 (State Highway Account) related to CTC legal staff  
          review of new program guidelines or revisions to existing  
          program guidelines.  Actual costs in any given year would depend  
          upon the number and complexity of guidelines up for review.

          Background: The APA generally governs the procedures for the  
          adoption, amendment, or repeal of regulations by state agencies  
          and for the review of those regulatory actions by the Office of  
          Administrative Law.  Administrative regulations are an extension  
          of statute and carry the weight of law, while guidelines are an  
          elaboration of policy and do not have the weight of law.   
          Typically guidelines are adopted through a relatively informal  
          process.

          Proposed Law: This bill would require CTC to follow specified  
          procedures when adopting guidelines, except when adopting STIP  
          guidelines.  Specifically, this bill would:
           Require CTC's legal counsel to review proposed guidelines for  
            necessity, authority, clarity, consistency, reference, and  
            redundancy, and recommend proposed action.  Counsel's  
            recommendations would be subject to attorney-client privilege.
           Require guidelines to be presented at a CTC meeting for public  
            comment, and specify timelines for making the proposed  








          SB 110 (Steinberg)
          Page 1


            guidelines available for public comment.
           Require CTC staff to review and summarize objections and  
            recommendations to those comments and explain any proposed  
            changes to the guidelines.  
           Require the staff recommendations to be made public prior to a  
            subsequent hearing, at which time the CTC would consider staff  
            recommendations and public comment prior to voting on the  
            adoption of the guidelines.
           Require CTC to maintain guideline adoption files, as  
            specified, which would include CTC counsel's confirmation that  
            proposed guidelines are consistent with the procedures  
            established by this bill.
           Require CTC to include in its annual report to the Legislature  
            an accounting of its activities related to guideline adoption  
            during the prior year.
          
          
          Related Legislation: This bill is identical to SB 749  
          (Steinberg), which was approved by the Senate in 2012 but never  
          heard in the Assembly.  A previous identical bill, SB 126  
          (Steinberg), was approved by the Senate in 2011 but subsequently  
          amended to deal with a different subject.  In addition, SB 1348  
          (Steinberg), which was also identical to this bill, was vetoed  
          by Governor Schwarzenegger in 2010.  The veto message stated in  
          part that the "bill is unnecessary as it establishes a formal  
          process which is very similar to the process already used by the  
          CTC."

          Staff Comments: SB 749 is intended to specify a more formal  
          process for CTC to follow when it adopts guidelines pursuant to  
          statutory requirements or authorization, which would provide  
          structure and transparency without invoking the more stringent  
          and time-consuming requirements of the APA.

          CTC indicates that the bill could impose costs of $50,000 to  
          $70,000 per year for additional legal counsel review depending  
          on the number and complexity of program guidelines that would  
          need to be developed or revised for Commission adoption.  These  
          costs would be incurred for review of any new program guidelines  
          or revisions to existing program guidelines in a given year.   
          Staff notes that the CTC does not anticipate proposing or  
          revising any program guidelines in the near future for which the  
          requirements of this bill would apply.









          SB 110 (Steinberg)
          Page 2