BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 110
          Author:   Steinberg (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  11-0, 4/2/13
          AYES:  DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,  
            Lara, Liu, Pavley, Roth, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 4/15/13
          AYES:  De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg


           SUBJECT  :    California Transportation Commission:  guidelines

           SOURCE  :     Author


           DIGEST  :    This bill establishes procedures for the California  
          Transportation Commission (CTC) to use in adopting guidelines.  

           ANALYSIS  :    The Legislature established the CTC in statute in  
          1978 to help achieve a single, unified state transportation  
          policy.  The CTC programs and allocates funds for highway,  
          passenger rail, and transit construction and improvement  
          projects throughout the state.  The CTC also advises the  
          Legislature and the Secretary of Business, Transportation, and  
          Housing on transportation policy and programs.  The Governor  
          appoints nine members to the CTC; the Senate Rules Committee and  
          Assembly Speaker each appoint two members.  In addition to these  
          11 voting members, two ex officio, non-voting members sit on the  
          CTC; typically these individuals are the chairs of the  
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          respective policy committees in each house of the Legislature.

          Existing law authorizes the CTC to adopt policy guidelines for  
          various transportation programs, but provides little direction  
          on how the adoption process should occur.  Among the programs  
          for which the CTC adopts guidelines are the State Transportation  
          Improvement Program (STIP) and regional transportation planning  
          processes.  

          This bill:

          1. Exempts the CTC in adopting guidelines from the  
             Administrative Procedures Act (APA).  The APA establishes  
             rulemaking procedures and standards for California's state  
             agencies.  It is designed to provide ample opportunity for  
             public participation in the regulation adoption process, and  
             to ensure that agencies adopt regulations that are clear,  
             necessary, and legally valid.

          2. Sets forth a process governing the CTC's adoption of  
             guidelines, other than guidelines adopted to implement the  
             STIP, as follows:

             A.    The CTC's legal counsel shall review proposed  
                guidelines for necessity, authority, clarity, consistency,  
                reference, and redundancy and recommend any changes to the  
                CTC commissioners.  Comments and recommendations made by  
                legal counsel shall be subject to attorney-client  
                privilege, unless waived.  The CTC's executive director  
                must distribute any recommendations and communications  
                with legal counsel to all commissioners.

             B.    CTC staff shall present proposed guidelines at a CTC  
                meeting for the purpose of receiving public comment.

             C.    Proposed guidelines must include a notice of the  
                public's right to comment on the guidelines.

             D.    At least 45 days prior to the adoption of guidelines,  
                the CTC must distribute, and make available in electronic  
                format, copies of the proposed guidelines for public  
                review.  

             E.    Following the close of the public comment period, CTC  

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                staff must summarize all comments and explain any  
                recommended changes to the guidelines in response to those  
                comments.  Staff recommendations and a summary must be  
                made public 15 days prior to a regular CTC meeting.

          3. The CTC must adopt the guidelines by a majority of its  
             membership.

          4. Requires the CTC to maintain complete files on guideline  
             adoption proceedings, including a summary of each objection  
             or recommendation made and an explanation of how the proposed  
             guidelines were changed to accommodate each objection or  
             recommendation or the reason no change was made.

          5. Requires the CTC to include in its annual report to the  
             Legislature an accounting of its activities related to  
             guideline adoption during the prior year.

           Comments
           
           Purpose  .  The author's office notes that although the CTC has  
          increased the number of guidelines it has adopted in recent  
          years, it does not have a formal procedure for adopting these  
          guidelines.  Recent court decisions have ruled that  
          administrative regulations are an extension of statute and  
          therefore carry the weight of law.  Policy guidelines, even when  
          mandated by a statute, are an elaboration of policy and do not  
          have the weight of law.  Typically, public agencies, therefore,  
          adopt guidelines through a relatively informal process as  
          compared to the process for regulations. 

           Previous legislation  .  Several identical versions of this bill  
          have been passed by the Senate.  In 2010, the Legislature  
          unanimously passed SB 1348 (Steinberg, 2010), but Governor  
          Schwarzenegger vetoed it.  In 2011, the Senate unanimously  
          passed SB 126 (Steinberg, 2011), but it was later amended in the  
          Assembly to deal with a different subject.  In 2012, the Senate  
          unanimously passed SB 749 (Steinberg, 2012), but it was not set  
          for hearing in Assembly Transportation Committee at the request  
          of the author.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


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          According to the Senate Appropriations Committee, 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.


           OPPOSITION  :    (Verified  4/16/13)

          Department of Finance

           ARGUMENTS IN SUPPORT  :    According to the author, "SB 110 is  
          identical to SB 749 (Steinberg, 2012) and SB 1348 (Steinberg,  
          2010).  These bills were introduced to address an issue raised  
          in 2007 when the CTC attempted to adopt guidelines for the  
          Corridor Mobility Improvement Account programs without releasing  
          the draft guidelines in advance of the public meeting at which a  
          vote to adopt the program was to occur.  Additionally, the CTC  
          was close to adopting guidelines for its public private  
          partnership guidelines without sufficient opportunity for public  
          review and comment.  In this case, the CTC ultimately did delay  
          guideline adoption, but the process being used was clearly  
          flawed."

           ARGUMENTS IN OPPOSITION  :    The Department of Finance is opposed  
          to this bill because it will result in additional costs to the  
          CTC and appears unnecessary since the process established by  
          this bill is very similar to the current
          process adhered to by the CTC when adopting guidelines.  
           

          JA:k  4/16/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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