BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 965
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 965 (Wright) - As Amended:  June 21, 2012 

          Policy Committee:                             Environmental 
          Safety and Toxic Materials                    Vote: 9-0
                       Governmental Organization              15-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill allows ex parte communication between members of the 
          State Water Resources Control Board (SWRCB) or a regional water 
          board and an interested party regarding waste discharge 
          requirements, conditions of water quality certification, or 
          conditional waiver waste discharge requirements, provided 
          certain conditions are met.

           FISCAL EFFECT  

          Minor, absorbable costs to the SWRCB and the regional boards to 
          manage ex parte communication requirements.

           COMMENTS  

           1)Rationale  .  The author contends current restrictions on ex 
            parte communications too severely communication between board 
            members and interested parties, thwarts transparency and 
            accountability, and undermines public confidence in the 
            regulatory process.  The author asserts it preferable that the 
            water boards follow an ex parte communication policy similar 
            to those of the Air Resources Board, the California Public 
            Utilities Commission and the Coastal Commission, which allow 
            communication between regulators and the regulated as long as 
            such communication is disclosed at public meetings.

           2)Background.   Current regulation prohibits communications 
            between water board members and other persons about a pending, 
            quasi-judicial matter if such communications occur in the 
            absence of other interested parties without notice and an 








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            opportunity for all parties to participate in the discussion.

            According to the Office of the Chief Counsel of the SWRCB, an 
            ex parte communication is a communication to a board member 
            about a pending water board matter that occurs in the absence 
            of other parties to the matter and without notice and 
            opportunity for all parties to participate in the 
            communication.  In very general terms, the Chief Counsel 
            explains the water boards' prohibition on ex parte 
            communication as follows:
                
              a)   If a proceeding is not pending or impending before a 
               water board, board members may communicate with the public 
               and governmental officials regarding general issues within 
               the water board's jurisdiction. Water board members may 
               also participate in information gathering efforts such as 
               tours or site visits.
                
             b)   If an adjudicative proceeding is pending or impending 
               before a water board, ex parte communications with that 
               water board's members regarding an issue in that proceeding 
               are prohibited. 

             c)   If a rulemaking or other proceeding is pending or 
               impending before a water board, a board member may, if he 
               or she chooses.

            The Chief Counsel explains the rationale behind the 
            prohibition on ex parte communication thusly:

            Ex parte communications are fundamentally offensive in 
            adjudicative 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. Such communications are not subject to rebuttal 
            or comment by other parties. Ex parte communications can 
            frustrate a lengthy and painstaking adjudicative process 
            because certain decisive facts and arguments would not be 
            reflected in the record or in the decisions. Finally, ex parte 
            contacts may frustrate judicial review since the record would 
            be missing such communications. 

           1)Support.   This bill is supported by a long list of industry 
            groups who regularly have adjudicative business before the 
            water boards who believe they may receive better outcomes if 








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            they had more opportunities to communicate with board members.  

          2)There is no opposition formally registered to this bill.
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081