BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 126
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  Steinberg
                                                         VERSION: 1//27/11
          Analysis by:  Art Bauer                        FISCAL:  yes
          Hearing date:  April 12, 2011



          SUBJECT:

          California Transportation Commission: guidelines

          DESCRIPTION:

          This bill establishes a procedure for the California 
          Transportation Commission (CTC) to adopt 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 of the 
          Legislature.  The CTC programs allocate funds for the 
          construction of highway, passenger rail, and transit 
          improvements throughout California.

          Existing 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 State Transportation 
          Improvement Program and regional transportation planning 
          processes.  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 CTC 
          guidelines, including guidelines for the Corridor Mobility 
          Improvement Account (CMIA), the State Route 99 Corridor Program, 
          the Trade Corridors Improvement Fund, the Public Transportation 
          Modernization, Improvement, Service Enhancement Account, and the 
          Highway-Railroad Crossing Safety Account. 






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           This bill  :
          
               1.           Makes legislative findings and declarations 
                regarding the need to ensure that the 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 the CTC adopts guidelines, the 
                guidelines will be exempt from the Administrative 
                Procedure Act (APA).

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

                     a.           The CTC's legal counsel is required to 
                      review the 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 will be subject to attorney-client 
                      privilege, unless waived.  The CTC Executive 
                      Director is required to distribute the 
                      recommendations and communications with legal 
                      counsel to all commissioners.
                     b.           Policy guidelines are to be first 
                      presented at a CTC meeting for the purpose of 
                      receiving public comment. 
                     c.           Proposed guidelines must include a 
                      notice of the right of the public comment on the 
                      guidelines.
                     d.           At least 45 days prior to the adoption 
                      of the guidelines, the CTC must distribute and make 
                      available in electronic format copies of the 
                      proposed guidelines for public review.
                     e.           Following the proposed guideline review 
                      process, the CTC staff must summarize all comments 
                      and explain any recommended changes to the 
                      guidelines in response to comments made.  Staff 
                      recommendations and a summary must be made public 15 
                      days prior to a regular CTC meeting.
                     f.           Guidelines must be adopted by a majority 




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                      of the commission 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:

           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. 

            Policy guidelines and regulations are two very distinct 
            administrative tools to manage state programs.  Regulations 
            are adopted according to the terms and conditions of the 
            Administrative Procedures Act.  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 statute, 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. 


           2.Identical version of bill vetoed  .  Last year an identical 
            bill, SB 1348 (Steinberg), unanimously passed this committee 
            and both houses of the Legislature.  Governor Schwarzenegger 
            vetoed the bill.  In his veto message he wrote, "This bill is 
            unnecessary as it establishes a formal process which is very 
            similar to the process already used by the CTC."

          
          POSITIONS:  (Communicated to the Committee before noon on 
          Wednesday,
                     April 6, 2011)
          




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               SUPPORT:  None received.

          
               OPPOSED:  None received.