BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1348
                                                                  Page  1

          Date of Hearing:   June 14, 2010

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                   SB 1348 (Steinberg) - As Amended:  May 24, 2010

           SENATE VOTE  :  35-0
           
          SUBJECT  :  California Transportation Commission:  guidelines

           SUMMARY  :  Codifies the process by which the California  
          Transportation Commission (CTC) is to adopt guidelines.   
          Specifically,  this bill  :  

          1)Makes legislative findings and declarations regarding the need  
            to ensure that CTC's process for adopting program guidelines  
            is understandable, predictable, and transparent and provides  
            ample opportunity for public review and comment on proposed  
            guidelines.  

          2)Provides, notwithstanding any other provision, in instances  
            where CTC adopts guidelines, pursuant to statutory  
            authorization or mandate, the guidelines will be exempt from  
            the Administrative Procedure Act (APA).  

          3)Sets forth a process governing CTC's adoption of guidelines  
            after January 1, 2011, except for guidelines adopted to  
            implement the State Transportation Improvement Program (STIP),  
            as follows:  

             a)   CTC's legal counsel is required to review the proposed  
               guidelines for necessity, authority, clarity, consistency,  
               reference, and redundancy recommend any changes to CTC  
               commissioners.  Comments and recommendations made by legal  
               counsel will be subject to attorney-client privilege.  The  
               CTC Executive Director is required distribute the  
               recommendations and communications with legal counsel to  
               all commissioners.  

             b)   Program or policy guidelines are to be first presented  
               at a CTC meeting for purposes of receiving public comment.   


             c)   Final proposed guidelines will be presented at a CTC  
               hearing.  








                                                                  SB 1348
                                                                  Page  2


             d)   At least 45 days prior to the hearing, copies of the  
               proposed guidelines must be distributed and be made  
               available in electronic format.  

             e)   Proposed guidelines must include a notice of the right  
               of the public comment on the guidelines.  

             f)   Following the proposed guideline review process, CTC  
               staff will summarize all comments and explain any changes  
               to the guidelines in response to comments made.  Staff  
               recommendations and summary must be made public 15 days  
               prior to a regular CTC hearing.  

             g)   Guidelines must be adopted by a majority of the  
               commission membership.  

          4)Requires 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 was 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.  

           EXISTING LAW:  

          6)Establishes the CTC and prescribes its membership and  
            responsibilities, including advising and assisting the  
            Secretary of the Business, Transportation and Housing Agency  
            and the Legislature in formulating and evaluating state  
            policies and plans for transportation programs in the state.  

          7)In various provisions, directs CTC to establish guidelines to  
            implement specific programs. 

          8)Sets forth the Administrative Procedures Act (APA) and vests  
            with the Office of Administrative Law (OAL) the responsibility  
            for an orderly review of adopted regulations.  

          9)Prohibits any state agency from issuing utilizing, enforcing,  
            or attempting to enforce any "guideline, criterion, bulletin,  
            manual, instruction, order, standard of general application,  








                                                                  SB 1348
                                                                  Page  3

            or other rule."  

          10)Excludes from provisions of the APA any regulation that  
            relates only to the internal management of a state agency.

          11)Defines "regulation" to mean "every rule, regulation, order,  
            or standard of general application or the amendment,  
            supplement, or revision of any rule, regulation, order, or  
            standard adopted by any state agency to implement, interpret,  
            or make specific the law enforced or administered by it, or to  
            govern its procedure."

          12)Sets forth procedures to be followed by APA for promulgating  
            regulations with timeframes similar to those set forth in this  
            bill.  

          FISCAL EFFECT  :  According to the CTC, this bill generally  
          codifies the process it already follows when adopting program  
          guidelines; therefore, additional costs to CTC should be  
          minimal, if any.  

           COMMENTS  :  The author introduced this bill because he believes  
          that, on some occasions, the CTC's process for guideline  
          adoption lacked transparency and has not provided the public  
          with ample opportunity to fully review and comment on items at  
          issue in the proposed guidelines.  This bill would codify a  
          process whereby CTC would adopt program guidelines but it would  
          do so in a way that avoids the often-cumbersome process by which  
          regulations are promulgated via the OAL.  




           Suggested Amendments:

           13)The bill sets forth procedures to follow when the CTC adopts  
            "guidelines pursuant to a statutory authorization or mandate?"  
             This qualification is too narrow and should be generalized.  

          For example, the CTC recently adopted guidelines to govern  
            implementation of the newly established public-private  
            partnership program.  For that program, the CTC was not  
            specifically authorized or mandated to adopt guidelines but  
            did so for practical purposes.  Under SB 1348, however, these  
            guidelines would not be subject to the procedure set forth in  








                                                                  SB 1348
                                                                  Page  4

            this bill although they should be, as follows:  

          On page 3, beginning on line 4, strike "pursuant to a statutory  
            authorization or mandate"  

          14)The bill erroneously refers to the State Transportation  
            Improvement Plan.  On page 3, line 8, "Plan" should be  
            replaced with "Program" in reference to the State  
            Transportation Improvement Program (STIP).  

          15)As part of the procedures for adopting guidelines, SB 1348  
            requires the CTC's legal counsel to review the proposed  
            guidelines and make comments.  The bill specifically subjects  
            those comments to attorney-client privilege.  The CTC should  
            have the authority to waive that privilege if it chooses to,  
            as follows:

          On page 3, line 20, after privilege, add ", unless otherwise  
            waived."  

          16)The process set forth in the bill to govern adoption of the  
            guidelines requires a 45-day advance public notice, a public  
            hearing, a subsequent 7-day written comment period,  
            development of a summary of comments, and presentation and  
            adoption of the guidelines at the next regularly scheduled  
            meeting.  SB 1348 erroneously refers to the subsequent meeting  
            as a hearing, and should be corrected, as follows:

          On page 4, line 3 and line 4, replace "hearing" with "meeting."   


           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Professional Engineers in California Government

           Opposition 
           
          None on file

           
          Analysis Prepared by  :   Janet Dawson / TRANS. / (916) 319-2093