BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 749|
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                                 THIRD READING


          Bill No:  SB 749
          Author:   Steinberg (D)
          Amended:  1/4/12
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMM  :  9-0, 1/10/12
          AYES:  DeSaulnier, Gaines, Harman, Huff, Kehoe, Lowenthal, 
            Pavley, Rubio, Simitian

           SENATE APPROPRIATIONS COMMITTEE  :  8-0, 1/17/12
          AYES:  Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley, 
            Price, Steinberg
          NO VOTE RECORDED:  Runner


           SUBJECT  :    California Transportation Commission:  
          guidelines

           SOURCE  :     Author


           DIGEST  :    This bill establishes a procedure for the 
          California Transportation Commission to adopt guidelines.

           ANALYSIS  :    Established in 1978, the California 
          Transportation Commission (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 
                                                           CONTINUED





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          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. 

          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 







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               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. 

          1.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. 

          2.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
           
          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 







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          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. 
           
           Governor Schwarzenegger vetoed an identical bill, SB 1348 
          (Steinberg), in 2010.  That bill unanimously passed 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."

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                2012-13     2013-14    
           2014-15   Fund
           CTC legal review                        $50-$70   
          $50-$70Special*
          *State Highway Account


          JJA:nl  1/18/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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