BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 749 (Steinberg)
          
          Hearing Date: 1/17/2012         Amended: 1/04/2012
          Consultant: Mark McKenzie       Policy Vote: T&H 9-0
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          BILL SUMMARY: SB 749 would establish procedures for the 
          California Transportation Commission (CTC) to follow when 
          adopting guidelines, and specify that CTC is exempt from the 
          rulemaking provisions of the Administrative Procedures Act (APA) 
          when adopting guidelines.
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                            Fiscal Impact (in thousands)

           Major Provisions         2012-13      2013-14       2014-15     Fund
           CTC legal review                  $50-$70     $50-$70   Special*
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          * State Highway Account
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          STAFF COMMENTS: 
          The APA generally governs the procedure for the adoption, 
          amendment, or repeal of regulations by state agencies and for 
          the review of those regulatory actions by the Office of 
          Administrative Law.  Administrative regulations are an extension 
          of statute and carry the weight of law, while guidelines are an 
          elaboration of policy and do not have the weight of law.  
          Typically guidelines are adopted through a relatively informal 
          process.

          SB 749 is intended to specify a more formal process for CTC to 
          follow when it adopts guidelines pursuant to statutory 
          requirements or authorization, which would provide structure and 
          transparency without invoking the more stringent and 
          time-consuming requirements of the APA.  Specifically, this bill 
          would require CTC to follow the following procedures when 
          adopting guidelines, except when adopting STIP guidelines:
           Require CTC's legal counsel to review proposed guidelines for 
            necessity, authority, clarity, consistency, reference, and 
            redundancy, and recommend proposed action.  Counsel's 
            recommendations would be subject to attorney-client privilege.








          SB 749 (Steinberg)
          Page 1


           Require guidelines to be presented at a CTC meeting for public 
            comment, and specify timelines for making the proposed 
            guidelines available for public comment.
           Require CTC staff to review and summarize objections and 
            recommendations to those comments and explain any proposed 
            changes to the guidelines.  
           Require the staff recommendations to be made public prior to a 
            subsequent hearing, at which time the CTC would consider staff 
            recommendations and public comment prior to voting on the 
            adoption of the guidelines.
           Require CTC to maintain guideline adoption files, as 
            specified, which would include CTC counsel's confirmation that 
            proposed guidelines are consistent with the procedures 
            established by this bill.
           Require CTC to include in its annual report to the Legislature 
            an accounting of its activities related to guideline adoption 
            during the prior year.
          CTC indicates that the bill could impose costs of $50,000 to 
          $70,000 per year for additional legal counsel review depending 
          on the number and complexity of program guidelines that would 
          need to be developed or revised for Commission adoption.  These 
          costs would be incurred for review of any new program guidelines 
          or revisions to existing program guidelines in a given year.  

          Staff notes that this bill is identical to SB 126 (Steinberg), 
          which passed the Senate last year, but was subsequently amended 
          to deal with a different subject.  A previous identical bill, SB 
          1348 (Steinberg), was vetoed by Governor Schwarzenegger in 2010. 
           The veto message stated in part that the "bill is unnecessary 
          as it establishes a formal process which is very similar to the 
          process already used by the CTC."