BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 749
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  Steinberg
                                                         VERSION: 1/4/12
          Analysis by:  Art Bauer                        FISCAL:  yes
          Hearing date:  January 10, 2012



          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 typically the chairs of the 
          transportation policy committees in each house of the 
          Legislature.  The CTC programs 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.Exempts the CTC in adopting guidelines from the 
                Administrative Procedure Act (APA).

          3.Sets forth a process governing the CTC's adoption of 
            guidelines to begin after January 1, 2013, except for 
            guidelines adopted to implement the State Transportation 
            Improvement Program (STIP), as follows:

             a.   The CTC's legal counsel shall 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.   CTC staff first presents proposed guidelines 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.   CTC must adopt its 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. 





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          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.  State agencies 
            adopt regulations 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, public agencies, therefore, adopt guidelines 
            through a relatively informal process as compared to the 
            process for regulations. 

           2.Previous version of bill vetoed  .  Governor Schwarzenegger 
            vetoed an identical bill, SB 1348 (Steinberg), in 2010.  That 
            bill unanimously passed this committee and both houses of the 
            Legislature.  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."

           3.Identical version of this bill passed on consent  .  Last year, 
            SB 126 (Steinberg) passed this committee and the Senate on 
            consent.  The author amended an entirely new subject matter 
            into SB126 in the Assembly.

           4.Recommend consent  .  It is recommended that this bill be placed 
            on consent. 

          
          POSITIONS:  (Communicated to the committee before noon on 
          Wednesday,
                     January 4, 2012)
          
               SUPPORT:  None received.




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               OPPOSED:  None received.