BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2063
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          ASSEMBLY THIRD READING
          AB 2063 (Alejo)
          As Amended  April 30, 2012
          Majority vote 

           WATER, PARKS & WILDLIFE   9-1   APPROPRIATIONS      15-1        
           
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          |Ayes:|Halderman, Bill           |Ayes:|Fuentes, Harkey,          |
          |     |Berryhill, Campos, Beth   |     |Bradford,                 |
          |     |Gaines, Williams,         |     |Charles Calderon, Campos, |
          |     |Roger Hern�ndez, Hueso,   |     |Davis, Donnelly, Gatto,   |
          |     |Jones,                    |     |Hall, Lara, Mitchell,     |
          |     |Lara                      |     |Nielsen, Norby, Solorio,  |
          |     |                          |     |Wagner                    |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Huffman                   |Nays:|Hill                      |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Allows communications between persons interested in a 
          pending evidentiary hearing and a member of a Regional Water 
          Quality Control Board (Regional Board) or the State Water 
          Resources Control Board (State Board) in the absence of other 
          parties to the matter, if disclosed afterwards.  Specifically, 
           this bill  :  

          1)Defines an ex parte communication as an oral or written 
            communication between an interested person and a member of a 
            Regional Board or the State Board about a quasi-judicial 
            matter requiring board action.

          2)Clarifies that communications are not ex parte that are with 
            State or Regional Board staff, or limited entirely to a 
            procedure or practice, that is not in controversy, including a 
            request for a continuance regarding certain non-controversial 
            matters.

          3)Allows ex parte communications for the adoption, modification, 
            or rescission of specified types of general permits if the 
            Regional or State Board member makes an after-the-fact report 
            of the communication to the board, on the record, at the next 
            hearing.









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          4)Defines the general permits where ex parte communications will 
            be allowed as waste discharge requirements, conditions of 
            water quality, or conditional waivers of waste discharge 
            requirements where the State Board or Regional Board action 
            does not identify specific persons as dischargers, but instead 
            allows persons to enroll or file an authorization to discharge 
            under the action.

          5)Allows interested parties 10 days to respond to ex parte 
            communications.

           EXISTING LAW  :

          1)Prohibits communications between State or Regional Board 
            members and any other person about a pending, quasi-judicial 
            water board matter if such communications occur in the absence 
            of other parties to the matter without notice and an 
            opportunity for all parties to participate in the discussion.

          2)Allows State or Regional Board members to have communications 
            with the public and governmental officials outside of a 
            noticed public meeting if the topic of discussion is a general 
            issue within the board's jurisdiction or a rulemaking or other 
            regulatory proceeding. 

           FISCAL EFFECT  :   According to the Assembly Appropriations 
          Committee, there would be minor, absorbable costs to the State 
          Board to develop reporting forms and to report ex parte 
          communications (special fund).

           COMMENTS  :  State and Regional Board ex parte communications are 
          governed by the California Administrative Procedures Act 
          (California APA).  As stated by a guidance memorandum issued by 
          the State Board Chief Counsel's office in 2008 (Memo), ex parte 
          rules have their roots in constitutional principles of due 
          process, fundamental fairness, and transparency in 
          decisionmaking.  The Memo advises that ex parte communications 
          are deemed fundamentally offensive in adjudicatory proceedings 
          because they involve an opportunity by one party to influence 
          the decision maker outside the presence of opposing parties, 
          thus violating due process requirements.  The Memo points out 
          that such communications are not subject to rebuttal or comment 
          by other parties and can frustrate a lengthy and painstaking 
          adjudicative process because certain decisive facts and 








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          arguments would not be fully reflected in the record or in the 
          decisions.  Finally, the Memo states that ex parte contacts may 
          frustrate judicial review since the record would be missing such 
          communications.

          The author states that it is an act of good government to allow 
          members of the public adequate opportunities to present their 
          views and opinions to the board members on matters that would 
          affect them.  And supporters state this bill addresses a 
          long-overdue reform because the void left in the communication 
          process by the current ex-parte interpretation eliminates the 
          ability for water board members to learn firsthand about issues.

          Opponents maintain that this bill would roll back meaningful 
          conflict provisions without evidence showing that such 
          provisions are no longer needed to protect waterway health.  
          Opponents point out that ex parte rules adopted by the State 
          Board already authorize communication with board members on 
          non-controversial procedural matters and allow advice from State 
          and Regional Board staff.

          The crucial issue presented by this bill is whether or not State 
          and Regional Board members can be active and fully engaged in 
          permit decisions if there is a prohibition on contacting them 
          outside of the public hearing process.  It is important to note 
          that members of the public are not prohibited from presenting 
          their views to State and Regional Board members.  The difference 
          is that the current ex parte prohibitions require them to do so 
          in public while this bill would allow private meetings but would 
          require those communications to be acknowledged after-the-fact 
          on the record.

          The author accepted amendments in the Assembly Water, Parks and 
          Wildlife Committee that limited this bill's relaxation of ex 
          parte rules to permit issues that are "general" in nature.  
          General permits are not issued to individual person or entities 
          but instead contain detailed requirements set by the State or 
          Regional Board.  General permits are like an "umbrella."  Once 
          the general permit requirements are adopted, individual persons 
          are then able to apply to enroll or file an authorization to 
          discharge under the action.  Limiting ex parte communications to 
          general permit actions was meant to address some of the due 
          process issues that could be raised by this bill if State or 
          Regional Board members were allowed to have private meetings 








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          regarding an individual's permit without that individual 
          present.  

           Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916) 
          319-2096                                          FN: 0003694