BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 1348
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  steinberg
                                                         VERSION: 4/14/10
          Analysis by: Art Bauer                          FISCAL: YES
          Hearing date: April 20, 2010





          SUBJECT:

          California Transportation Commission guidelines

          DESCRIPTION:

          This bill provides a procedure for the California Transportation  
          Commission (CTC) to adopt legislatively mandated policy  
          guidelines.

          ANALYSIS:

          Established in 1978, the CTC provides a single venue for  
          addressing transportation development and funding issues in the  
          state. The CTC consists of eleven voting members and two  
          non-voting ex-officio members. Of the eleven voting members, the  
          governor appoints nine, the Senate Rules Committee appoints one,  
          and the Speaker of the Assembly appoints one. The two ex-officio  
          non-voting members are the chairs of the transportation policy  
          committees in each house. The CTC programs and allocates funds  
          for the construction of highway, passenger rail, and transit  
          improvements throughout California. 

          Existng law authorizes the CTC to adopt policy guidelines for  
          various transportation programs, but provides little direction  
          on how the adoption process should proceed. Among the programs  
          for which the CTC adopts guidelines are the the State  
          Transportation Improvement Program (STIP) and regional  
          transportation planning process. The passage of the Highway  
          Safety, Traffic Reduction, Air Quality, and Port Security Bond  
          Act of 2006 (Proposition 1B)  mandated the issuance of several  
          new guidelines such as the Corridor Mobility Improvement Account  
          (CMIA), State Route 99 Corridor Program, the Trade Corridors  
          Improvement Fund, the Public Transportation Modernization,  
          Improvement, and Service Enhancement Account and the  
          Highway-Railroad Crossing Safety Account. 




          SB 1348 (STEINBERG)                                       Page 2

                                                                       



           This bill  :

             1)   Requires the CTC's counsel to review proposed guidelines  
               for necessity, authority, consistency, reference, and  
               nonduplication.

             2)   Stipulates that the words " necessity," "authority,"  
               "clarity," "consistency," "reference," and "nonduplication"  
               shall have the same meaning as defined by Section 11349 of  
               the Government Code, which establishes definitions for  
               these terms for purposes of rule making pursuant to the  
               Administrative Procedures Act (APA). 

             3)   Requires that proposed policy guidelines  must be  
               adopted by a majority vote of the commissioners at a public  
               hearing in which members of the public have had an  
               opportunity to testify prior to the vote on the proposed  
               policy guidelines.

             4)   Requires the CTC to send, at least thirty days prior to  
               the public hearing, a notice of the hearing to anyone who  
               has requested it. The notice shall be available to the  
               public in an electronic format as well.

             5)   Requires the CTC to maintain a guideline adoption file  
               containing the public notice, public comments, and minutes  
               of the public hearing, including the action taken by the  
               CTC. In addition, the adoption file shall contain a summary  
               of each objection or reommendation made with an explanation  
               of how the proposed guideline was changed to accommodate  
               each objection or recommendation, or the reason for no  
               change. 

             6)   Requires the CTC to include in its annual report to the  
               Legislature a summary of the adoption of policy guidelines  
               during the previous calendar year, including a summary of  
               the proposed guidelines the CTC considered, commisison, a  
               description of the action the CTC took, and the  
               commissioners' votes on guidelines considered.               
                                                                            
                                                                            
                          
          
          COMMENTS:





          SB 1348 (STEINBERG)                                       Page 3

                                                                       


              1)   Purpose  . With the increase in the number of policy  
               guidelines that the CTC is adopting, this legislation is  
               intended to systematize the process CTC uses to adopt  
               policy guidelines under its purview and to increase the  
               transparency of the process. 

              2)   Policy guidelines vs. regulations  . Policy guidelines and  
               regulations are two very distinct administrative tools to  
               manage state programs. Regulations are adopted according to  
               the terms and conditions of APA. According to counsel,  
               numerous court decisions have ruled that administrative  
               regulations are an extension of a statute and carry the  
               weight of law. Policy guidelines, even when mandated by a  
               statue, are an elaboration of policy and do not have the  
               weight of law. Typically, the guidelines are adopted  
               through a relatively informal process compared to  
               regulations. To be sure, this bill will add structure,  
               discipline, and transparency to the process for adopting  
               guidelines, but it does not invoke the APA. In fact, the  
               CTC was able to quickly adopt guidelines for implementing  
               the various programs included in Proposition 1B, which  
               benefited the public through the acceleration of project  
               funding. The agility of the CTC would have been impossible  
               to achieve had regulations been required instead of  
               guidelines. 

              3)   Definitions reference the Administrative Procedures Act  .  
               This bill identifies specific terms to guide the CTC's  
               counsel when reviewing proposed guidelines, including  
               "necessity", "authority", and "consistency". This uses the  
               definition of these terms found in the APA, but the cross  
               reference does not convert the guidelines to draft  
               regulations subject to the APA. 

              4)   Suggested amendment  . The committee may wish to consider  
               amending this bill to require the CTC to maintain the  
               adoption file of the guidelines be maintained on the CTC's  
               website to ensure ease of accessibility by the public.  A  
               second amendment that committee may wish to consider is  
               requiring that hearing notices be published forty-five  
               rather than thirty days in advance of the CTC meeting in  
               which the adoption of the guidelines are to occur. This  
               will allow local and regional agencies to more easily  
               include on the agenda of regularly schedule meetings a  
               discussion of the draft guidelines. 





          SB 1348 (STEINBERG)                                       Page 4

                                                                       


          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday, 
                     April 14, 2010)

               SUPPORT:  Professional engineers in California Government

               OPPOSED:  None received.