California Regulatory Notice Register — Register 2019, No. 43-Z (October 25, 2019)

Cal. Reg. Notice Reg. 2019, No. 43

California Z Register

GAVIN NEWSOM, GOVERNOR OFFICE OF ADMINISTRATIVE LAW REGISTER 2019, NUMBER 43 PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW OCTOBER 25, 2019 PROPOSED ACTION ON REGULATIONS TITLE 2. CALIFORNIA TRANSPORTATION COMMISSION Conflict−of−Interest Code — Notice File Number Z2019−101 1−03 ..................................... 1443 TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION Conflict−of−Interest Code — Notice File Number Z2019−1015−02 ...................................... 1443 Amendment State Agency: California Behavioral Health Planning Council Department of Water Resources Multi−County: Sacramento Area Council of Governments Pacific Charter Institute Kings Canyon Unified School District Adoption Multi−County: Child 36 Opportunities for Learning−Baldwin Park Opportunities for Learning−Capistrano Opportunities for Learning−William S. Hart TITLE 2.

SECRETARY OF STATE Risk Limiting Audits — Notice File Number Z2019−1015−05 .......................................... 1444 TITLE 10. DEPARTMENT OF BUSINESS OVERSIGHT Property Assessed Clean Energy (P ACE) Program Administrators Under the California Financing Law (CFL) — Notice File Number Z2019−1015−01 ................................ 1447 (Continued on next page) Time- Dated Material

TITLE 10. DEPARTMENT OF INSURANCE California Automobile Assigned Risk Plan (CAARP) Simplified Rules Manual CA 19−05 — Notice File Number Z2019−1004−02 .............................. 1453 TITLE 10. DEPARTMENT OF INSURANCE California Low Cost Automobile (CLCA) Plan of Operations LC 19−03, 19−04 — Notice File Number Z2019−1004−01 ................................... 1455 TITLE 13. AIR RESOURCES BOARD Advanced Clean Trucks Regulation — Notice File Number Z2019−1008−14 .............................. 1458 TITLE 15.

DEPARTMENT OF CORRECTIONS AND REHABILITATION Medical Care — Notice File Number Z2019−101 1−01 ................................................ 1468 TITLE 17. AIR RESOURCES BOARD 2019 State Area Designations — Notice File Number Z2019−1008−12 ................................... 1471 TITLE 17. AIR RESOURCES BOARD Fuel Cell Net Energy Metering Greenhouse Grass (GHG) Standards — Notice File Number Z2019−1008−13 .................................................. 1476 TITLE 17. AIR RESOURCES BOARD Limiting Ozone Emissions from Indoor Air Cleaners — Notice File Number Z2019−1008−11 ................. 1483 TITLE 19.

OFFICE OF STATE FIRE MARSHAL Firefighter Training and Certification — Fee List — Notice File Number Z2019−1010−01 ................... 1488 TITLE 23. DEPARTMENT OF WATER RESOURCES Conflict−of−Interest Code — Notice File Number Z2019−101 1−02 ...................................... 1492 GENERAL PUBLIC INTEREST DEPARTMENT OF DEVELOPMENT SERVICES Amendment to the 1915(

c) Home and Community−Based Services (HCBS) Waiver for Persons with Developmental Disabilities (DD) Waiver ...................................... 1492

SUMMARY OF REGULATORY ACTIONS Regulations filed with the Secretary of State ........................................................ 1493 The California Regulatory Notice Register is an official state publication of the Office of Administrative Law containing notices of proposed regulatory actions by state regulatory agencies to adopt, amend or repeal regulations contained in the California Code of Regulations. The effective period of a notice of proposed regulatory action by a state agency in the California Regulatory Notice Register shall not exceed one year [Government Code § 11346.4(b)].

It is suggested, therefore, that issues of the California Regulatory Notice Register be retained for a minimum of 18 months. CALIFORNIA REGULA TORY NOTICE REGISTER is published weekly by the Office of Administrative Law, 300 Capitol Mall, Suite 1250, Sacramento, CA 95814-4339. The Register is printed by Barclays, a subsidiary of West, a Thomson Reuters Business, and is offered by subscription for $205.00 (annual price). To order or make changes to current subscriptions, please call (800) 328−4880. The Register can also be accessed at http://www.oal.ca.gov.

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 PROPOSED ACTION ON REGULATIONS Information contained in this document is published as received from agencies and is not edited by Thomson Reuters. TITLE 2. CALIFORNIA TRANSPORTATION COMMISSION NOTICE IS HEREBY GIVEN that the California Transportation Commission, pursuant to the authority vested in it by

Section 87306 of the Government Code, proposes amendments to its conflict−of−interest code. A comment period has been established commencing on October 25, 2019 and closing on December 9, 2019. All inquiries should be directed to the contact listed below. The California Transportation Commission proposes to amend its Conflict−of−Interest code to include em- ployee positions that involve the making, or participa- tion in the making, of decisions that may foreseeably have a material effect on any financial interest, as set forth in subdivision (

a) of

Section 87302 of the Govern- ment Code. The amendment carries out the purposes of the law and no other alternative would do so and be less burdensome to affected persons. Changes to the conflict−of−interest Code include: newly designating the positions of Staff Services Man- ager III, Staff Services Manager II — Programming, Legislation/Finance, Senior Transportation Engineer, Senior Transportation Planner, Associate Transporta- tion Planner, Associate Governmental Program Analyst — Programming and Staff Services Analyst — Programming.

The amendments also rename the Assis- tant Executive Director position to Deputy Director and delete the position of Administrative. Copies of the amended code are available and may be requested from the contact listed below. Any interested person may submit written state- ments, arguments, or comments relating to the pro- posed amendments by submitting them in writing no later than December 9, 2019, or at the conclusion of the public hearing, if requested, whichever comes later, to the contact person set forth below. At this time, no public hearing has been scheduled concerning the proposed amendments.

If any interested person or the person’s representative requests a public hearing, he or she must do so not later than November 24, 2019. The California Transportation Commission has de- termined that the proposed amendments: 1. Impose no mandate on local agencies or school districts. 2. Impose no costs or savings on any state agency. 3. Impose no costs on any local agency or school district that are required to be reimbursed under

Part 7 (commencing with

Section 17500) of Division 4 of Title 2 of the Government Code. 4. Will not result in any nondiscretionary costs or savings to local agencies. 5. Will not result in any costs or savings in federal funding to the state. 6. Will not have any potential cost impact on private persons, businesses or small businesses. All inquiries concerning this proposed amendment and any communication required by this notice should be directed to: California Transportation Commission Attention: Zilan Chen 1120 N Street, MS−52 Sacramento, CA 95814 (916) 653−0162 zilan.chen@catc.ca.gov TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION NOTICE IS HEREBY GIVEN that the Fair Political Practices Commission, pursuant to the authority vested in it by Sections 82011, 87303, and 87304 of the Gov- ernment Code to review proposed conflict−of−interest codes, will review the proposed/amended conflict−of− interest codes of the following: CONFLICT−OF−INTEREST CODES AMENDMENT STATE AGENCY: California Behavioral Health Planning Council Department of Water Resources MULTI−COUNTY: Sacramento Area Council of Governments Pacific Charter Institute Kings Canyon Unified School District ADOPTION MULTI−COUNTY: Child 36 Opportunities for Learning−Baldwin Park Opportunities for Learning−Capistrano Opportunities for Learning−William S.

Hart 1443

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 A written comment period has been established com- mencing on October 25, 2019 and closing on December 9, 2019. Written comments should be directed to the Fair Political Practices Commission, Attention Amanda Apostol, 1102 Q Street, Suite 3000, Sacramen- to, California 95811. At the end of the 45−day comment period, the pro- posed conflict−of−interest code(

s) will be submitted to the Commission’s Executive Director for her review, unless any interested person or his or her duly autho- rized representative requests, no later than 15 days prior to the close of the written comment period, a public hearing before the full Commission. If a public hearing is requested, the proposed code(

s) will be submitted to the Commission for review. The Executive Director of the Commission will re- view the above−referenced conflict−of−interest code(s), proposed pursuant to Government Code Sec- tion 87300, which designate, pursuant to Government Code

Section 87302, employees who must disclose cer- tain investments, interests in real property and income. The Executive Director of the Commission, upon her or its own motion or at the request of any interested per- son, will approve, or revise and approve, or return the proposed code(

s) to the agency for revision and re− submission within 60 days without further notice. Any interested person may present statements, argu- ments or comments, in writing to the Executive Direc- tor of the Commission, relative to review of the pro- posed conflict−of−interest code(s). Any written com- ments must be received no later than December 9, 2019. If a public hearing is to be held, oral comments may be presented to the Commission at the hearing.

COST TO LOCAL AGENCIES There shall be no reimbursement for any new or in- creased costs to local government which may result from compliance with these codes because these are not new programs mandated on local agencies by the codes since the requirements described herein were mandated by the Political Reform Act of 1974. Therefore, they are not “costs mandated by the state” as defined in Govern- ment Code

Section 17514. EFFECT ON HOUSING COSTS AND BUSINESSES Compliance with the codes has no potential effect on housing costs or on private persons, businesses or small businesses. AUTHORITY Government Code Sections 82011, 87303 and 87304 provide that the Fair Political Practices Commission as the code reviewing body for the above conflict−of− interest codes shall approve codes as submitted, revise the proposed code and approve it as revised, or return the proposed code for revision and re−submission.

REFERENCE Government Code Sections 87300 and 87306 pro- vide that agencies shall adopt and promulgate conflict− of−interest codes pursuant to the Political Reform Act and amend their codes when change is necessitated by changed circumstances. CONTACT Any inquiries concerning the proposed conflict−of− interest code(

s) should be made to Amanda Apostol, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 324−3854. A V AILABILITY OF PROPOSED CONFLICT−OF−INTEREST CODES Copies of the proposed conflict−of−interest codes may be obtained from the Commission offices or the re- spective agency. Requests for copies from the Commis- sion should be made to Amanda Apostol, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 324−3854. TITLE 2.

SECRETARY OF STATE NOTICE IS HEREBY GIVEN that the Secretary of State (SOS) is proposing to take the action described in the Informative Digest. Any person interested may present statements or arguments in writing relevant to the action proposed. Written comments, including those sent by mail, facsimile, or e−mail to the address listed under Contact Persons in this Notice, must be re- ceived by the SOS at its office not later than 5:00 p.m. on December 10, 2019. A public hearing is not scheduled.

A public hearing will be held if any interested person, or his or her duly authorized representative, submits a written request for a public hearing to the contact persons listed below no later than 15 days prior to the close of the written com- ment period. Following the public hearing, if one is re- quested, or following the written comment period if no public hearing is requested, the SOS, upon its own mo- 1444

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 tion or at the instance of any interested party, may there- after adopt the proposals substantially as described be- low or may modify such proposals if such modifica- tions are sufficiently related to the original text.

With the exception of technical or grammatical changes, the full text of any modified proposal will be available for 15 days prior to its adoption from the person designated in this Notice as contact persons and will be mailed to those persons who submit written or oral testimony re- lated to this proposal or who have requested notification of any changes to the proposal. Public Comment Period: October 25, 2019, through December 10, 2019. AUTHORITY AND REFERENCE Under the authority established in Government Code

section 12172.5, the California Secretary of State may adopt regulations to assure the uniform application and administration of state election laws. Further authority is established in Elections Code

section 15367, which states that the Secretary of State, in consultation with recognized statistical experts, elec- tion verification and integrity stakeholders, voting sys- tem manufacturers, and local elections officials, shall adopt regulations to implement and administer this arti- cle (Risk Limiting Audits). Authority cited:

Section 15367, Elections Code; Sec- tion 12172.5, Government Code. Reference cited: Sections 320, 362, 2194, 15150, 15154, 15290, 15360, 15366, 15367, 15620, 15621 and 20194, Elections Code. INFORMATIVE DIGEST Elections Code sections 15365−15367 were enacted in 2018 through the passing of Assembly Bill (AB) 2125 (Chapter 913, Statutes of 2018) and established a post−election risk−limiting audits pilot program. Exist- ing law in

Section 15360 of the Elections Code requires an elections official, during the official canvass of an election in which a voting system is used, to conduct a public manual tally of the ballots cast in 1 percent of the precincts chosen at random by the elections official. AB 2125 authorized the use of risk−limiting audits in lieu of the 1 percent manual tally beginning with the March 3, 2020, statewide primary election. The bill requires the Secretary of State to adopt regulations to implement and administer the risk−limiting audits pilot program. Elections Code sections 15365−15367 shall remain in effect only until January 1, 2021, and as of that date they will be repealed. Pursuant to

section 15367(b)(1) of the Elections Code, the Secretary of State has drafted these proposed regulations in consultation with recognized statistical experts, election verification and integrity stakehold- ers, voting system manufacturers, and local elections officials to implement and administer risk−limiting au- dits. Therefore, the Secretary of State is proposing to add sections 20110 through 20126 of Title 2, Division 7,

Chapter 2 to Code of Regulations to establish the proce- dures for implementing and administering the risk− limiting audits pilot program. POLICY STATEMENT OVERVIEW/ANTICIPATED BENEFITS OF PROPOSAL Risk−limiting audits provide statistical assurance that election outcomes are correct by manually examin- ing portions of the audit trail: paper ballots or voter− verifiable paper records. Risk−limiting audits also pro- vide efficient and cost−effective scientific verification of election results when elections officials have ade- quate resources and education to conduct such an audit.

By definition, a risk−limiting audit strictly limits the probability that an incorrect electoral outcome will pass the audit without being corrected. Elections Code

section 15367 requires the SOS to adopt regulations that would do all of the following: 1. Require elections officials to establish appropriate audit boards and procedures to conduct risk−limiting audits. 2. Establish criteria for public education on risk−limiting audits. 3. Establish procedures to ensure the security of the ballots, the selection of ballots to be inspected during each audit, and the rules governing cast vote records and other data involved in risk−limiting audits. 4.

Establish the calculations and other methods to be used in the audit to determine whether or when the audit of any contest is required to include the examination of more ballots, and to establish calculations and methods to be used in such an escalation, and to determine whether and when the audit of each contest is complete. 5. Establish procedures and requirements for testing and disclosing the algorithms and source code of any software used by the SOS for the selection of ballots to be included when elections officials conduct risk−limiting audits under this article. 6.

Establish requirements for the content of the risk−limiting audit report in the certification of the official canvass of the vote. 7. Establish procedures and requirements to ensure the audit process is observable and verifiable by the public, including disclosing the methods used 1445

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 to select samples and to calculate the risk, providing public opportunity to verify that the correct ballots were inspected during the audit, and providing public opportunity to observe the inspection of the voters’ marks on the ballots during the audit. The proposed regulations accomplish the mandate of the statute. The benefit of these proposed regulations is that they will provide guidance to the SOS and local elections officials on the procedure for conducting risk− limiting audits. These proposed regulations will also provide the opportunity for the public to take

part in and observe the audit process. Along with bringing more transparency in the post−election canvass process these proposed regulations will strengthen the public trust the State of California’s election process. CONSISTENCY/COMPATIBILITY WITH EXISTING STATE REGULATIONS After conducting an evaluation for regulations in this area, the SOS has determined that these are the only reg- ulations dealing with the post−election risk−limiting audits pilot program. Therefore, the proposed regula- tions are neither inconsistent nor incompatible with ex- isting state regulations.

This regulatory proposal cre- ates new regulations relating to Elections Code sections 15365−15367. Documents Incorporated by Reference: California Post−Election Risk−Limiting Audit Ballot Manifest Format (dated October 15, 2019). Documents Relied Upon in Preparing the Regula- tions: None. FISCAL IMPACT ESTIMATES AND RESULTS OF THE ECONOMIC IMPACT ASSESSMENT Fiscal Impact on Public Agencies Including Costs or Savings to State Agencies or Costs/Savings in Federal Funding to the State: None. Nondiscretionary Costs/Savings to Local Agencies: None. Local Mandate: None.

Cost to Any Local Agency or School District for Which Government Code Sections 17500−17630 Re- quire Reimbursement: None. Business Impact: The SOS has made an initial deter- mination that the proposed regulatory action will have no significant statewide adverse economic impact di- rectly affecting business, including the ability of Cali- fornia businesses to compete with businesses in other states. The proposed changes provide regulations that would give county elections officials an option to con- duct a comprehensive post−election audit in lieu of their current practice of 1 percent manual tally.

As stated in the Policy Statement and Overview/Anticipated Bene- fits of the Proposal found above, the benefits of the reg- ulation to the health and welfare of California residents lies in the fact that these regulations will also provide the opportunity for the public to take

part in and observe the audit process. Along with bringing more trans- parency in the post−election canvass process, these pro- posed regulations will strengthen the public trust in the State election process. Significant Statewide Adverse Economic Impact Di- rectly Affecting Business, Including the Ability to Compete: The SOS has made an initial determination that this regulatory action will not have a significant, statewide adverse economic impact directly affecting business, including the ability of California businesses to compete with businesses in other states.

Cost Impact on Representative Private Person or Business: The SOS is not aware of any cost impacts that a representative private person or business would nec- essarily incur in reasonable compliance with the pro- posed action. Effect on Housing Costs: None. Effect on Small Business: The SOS has determined that the proposed regulations would not affect small businesses. The proposed regulations would give coun- ty elections officials an option to conduct a comprehen- sive post−election audit in lieu of their current practice of 1 percent manual tally.

The proposed regulations af- fect counties and individuals, neither of which are small businesses. Result of Economic Impact Assessment/Analysis

Summary Comments: The full Economic Impact State- ment is presented in the Initial Statement of Reasons. These regulations are not anticipated to create or elimi- nate jobs within the State of California, create or elimi- nate existing businesses within the State of California, or expand or eliminate existing businesses within the State of California. The benefits of these regulations are to comply with a legislative mandate and to strengthen the public trust in the State of California’s election process.

CONSIDERATION OF ALTERNATIVES The SOS must determine that no reasonable alterna- tive to the regulations it considered or that has otherwise been identified and brought to its attention would either be more effective in carrying out the purpose for which the action is proposed or would be as effective and less burdensome to affected private persons or would be more cost−effective to affected private persons and equally effective in implementing the statutory policy 1446

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 or other provision of law than the proposal described in this Notice. The SOS has determined that regulations are neces- sary because Elections Code

section 15367(b)(1) ex- pressly requires regulations. Any interested person may present statements or ar- guments relevant to the above determinations. A V AILABILITY OF THE INITIAL STATEMENT OF REASONS, THE TEXT OF PROPOSAL AND THE RULEMAKING FILE The SOS has prepared an Initial Statement of the rea- sons for the proposed action and has available all the in- formation upon which the proposal is based. The Initial Statement of Reasons is available on the SOS’s website.

Copies of the express language of the proposed regu- lations, any document incorporated by reference, the initial statement of reasons, and all of the information upon which the proposal is based, may be obtained throughout the rulemaking process upon request from the SOS contact or on the website listed below. A V AILABILITY AND LOCATION OF THE FINAL STATEMENT OF REASONS AND RULEMAKING FILE A Final Statement of Reasons will be created after the closing of the public comment period.

A copy of the fi- nal statement of reasons can be obtained once it has been prepared from the contact persons named below or by accessing the website listed below.

CONTACT PERSONS Inquiries or comments concerning the proposed rule- making action may be addressed to: Raj Bathla Secretary of State 1500 11 th Street, 5th Floor Sacramento, CA 95814 (916) 695−1597 Or to: rbathla@sos.ca.gov The backup contact person is: Taylor Kayatta Secretary of State 1500 11th Street, 4th Floor Sacramento, CA 95814 (916) 695−1530 Or to: tkayatta@sos.ca.gov Website Access: Materials regarding this proposal can be found at www.sos.ca.gov. TITLE 10. DEPARTMENT OF BUSINESS OVERSIGHT NOTICE IS HEREBY GIVEN (Government Code

Section 11346.5, Paragraph (a)(1)) The Commissioner of the Department of Business Oversight (Department) proposes to make the follow- ing changes in subchapter 6 of title 10,

chapter 3 of the California Code of Regulations: amend sections 1404, 1408, 1409, 1409.1, 1411, 1422, 1422.4, 1422.4.5, 1422.5, 1422.6.2, 1422.7.1, 1422.9, 1422.10, 1422.12, 1423, 1424, 1425, 1426, 1437, 1550, and 1552; rename subchapter 6; adopt

section 1422.5.1; and adopt

article 15, including sections 1620.01, 1620.02, 1620.02.1, 1620.03, 1620.05, 1620.06, 1620.07, 1620.08, 1620.10, 1620.11, 1620.12, 1620.13, 1620.14, 1620.15, 1620.16, 1620.17, 1620.19, 1620.21, 1620.22, 1620.25, 1620.27, 1620.28, and 1620.29. The proposed sections relate to the implementation of AB 1284 (Dababneh,

Chapter 475, Statutes of 2017), which renamed the “California Finance Lenders Law” the “California Financing Law,” effective October 4, 2017, and which requires a program administrator that admin- isters a Property Assessed Clean Energy (PACE) pro- gram on behalf of a public agency to be licensed by the Commissioner of Business Oversight (Commissioner) under the renamed California Financing Law, begin- ning January 1, 2019.

The proposed sections also pro- vide the Commissioner with authority to transition all licensees under the California Financing Law onto the Nationwide Multistate Licensing System and Registry (NMLS), the national licensing database for providers of financial services and products. AUTHORITY (Government Code

Section 11346.5, Paragraph (a)(2)) The Department proposed this regulatory action un- der the authority vested in Financial Code

section 22150. REFERENCE (Government Code

Section 11346.5, Paragraph (a)(2)) The Department proposes this regulatory action to implement, interpret, and make specific Business and Professions Code sections 31, 494.5, 17900, 17910, 17913, and 17926; Civil Code sections 1633.7, 1798.17, 1798.18, and 1798.24; Family Code

section 17520; Financial Code sections 331, 331.5, 22000, 1447

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 22001, 22017, 22018, 22100, 22100.5, 22101, 22101.5, 22102, 22103, 22104, 22105, 22105.2, 22105.3, 22105.4, 22106, 22107, 22108, 22109, 22112, 22153, 22154, 22156, 22157, 22158, 22159, 22161, 22162, 22163, 22164, 22165, 22166, 22170, 22680, 22681, 22682, 22683, 22684, 22685, 22686, 22687, 22689, 22690, 22692, 22700, 22709, and 22714; Government Code

section 7473; Penal Code

section 11077.1; Streets and Highways Code sections 5898.16, 5898.17, 5913, 5925, 5926, and 5940; and

chapter 29.1 of

part 3 of divi- sion 7 of the Streets and Highways Code. INFORMATIVE DIGEST (Government Code

Section 11346.5, Paragraph (a)(3)) A. PACE Program Administrators A public agency 1 may authorize public agency offi- cials and property owners to enter into voluntary con- tractual assessments to finance the installation of dis- tributed generation renewable energy sources or energy or water efficiency improvements that are permanently fixed to real property. 2 These arrangements are com- monly known as Property Assessed Clean Energy (PACE) programs. Existing law authorizes a private en- tity to administer a PACE program on behalf of, and with the written consent of, a public agency. On October 4, 2017, the Governor signed into law AB 1284 (Dababneh,

Chapter 475, Statutes of 2017), which renamed the “California Finance Lenders Law” the 1 Streets and Highways Code

section 5898.20, subparagraphs (c)(3)(

A) through (

C) provide that, for financing the installation of water efficiency improvements, “public agency” means a city, county, city and county, municipal utility district, community ser- vices district, sanitary district, sanitation district, or water district; for financing the installation of distributed generation renewable energy sources or energy efficiency improvements, “public agen- cy” means a county, city, city and county, or a municipal utility district, an irrigation district, or public utility district that owns and operates an electric distribution system; and for financing the public improvements, “public agency” means a city as defined in

Section 5005. The term as used in this Notice of Rulemaking Ac- tion is intended to have the same meaning. 2 A voluntary contractual assessment on property may be autho- rized pursuant to paragraph (2) of subdivision (

a) of

section 5898.20 of the Streets and Highways Code; a voluntary contractu- al assessment or a voluntary special tax on property may be levied to finance the installation of distributed general renewable energy sources, electric vehicle charging infrastructure, or energy or wa- ter efficiency improvements pursuant to a chartered city’s consti- tutional authority under

section 5 of

article XI of the California Constitution; and a special tax on property may be authorized pur- suant to subdivision (

b) of

section 53328.1 of the Government Code. For simplicity, the reference to “contractual assessments” includes all of these. “California Financing Law,” effective immediately, and which generally requires a private entity that ad- ministers a PACE program on or behalf of a public agency to be licensed by the Commissioner of Business Oversight under the renamed California Financing Law, beginning January 1, 2019. The private entities are defined as “program administrators.” AB 1284 amend- ed the California Financing Law to establish licensing requirements and standards for program administra- tors.

The California Financing Law is administered by the Department. AB 1284 requires a program administrator to comply with licensure requirements that are the same as those for a finance lender or broker already subject to licen- sure under the California Financing Law, such as the lo- cation of its business, maintenance and preservation of its records, reporting, including filing an annual report under oath, prohibiting making false or misleading statements, and advertising.

In the conduct of their business, program administra- tors typically make PACE financing available to prop- erty owners through general contractors and other third parties who are arranging to perform energy and water upgrades for property owners. AB 1284 defines these third parties as “PACE solicitors” when they are solicit- ing property owners to enter into contracts for PACE fi- nancing (defined as “assessment contracts”).

The indi- viduals who act on behalf of the PACE solicitors and so- licit property owners are defined as “PACE solicitor agents.” Operative January 1, 2019, AB 1284 requires a program administrator to establish and maintain a process for the enrollment of a PACE solicitor and a PACE solicitor agent, including requiring a PACE so- licitor or a PACE solicitor agent to meet specified mini- mum background checks, and prohibits a program ad- ministrator from enrolling a PACE solicitor or a PACE solicitor agent if the program administrator makes spec- ified findings.

The bill requires a program administrator to establish and maintain a process to promote and eval- uate the compliance of a P ACE solicitor and a PACE so- licitor agent with applicable law, and to establish and maintain a process to cancel the enrollment of a PACE solicitor or PACE solicitor agent who fails to meet mini- mum qualifications. AB 1284 also requires a program administrator to establish and maintain a training pro- gram for PACE solicitor agents, in accordance with cer- tain requirements.

In addition to the licensing and oversight provisions in AB 1284, commencing on April 1, 2018, the bill pro- hibits a program administrator from approving an as- sessment contract for funding and recording by a public agency unless the program administrator makes a rea- sonable good faith determination that the property own- 1448

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 er has a reasonable ability to pay the “PACE assess- ments,” subject to specified requirements and procedures.3 This rulemaking action proposes amending and en- acting rules to implement AB 1284. This rulemaking action makes conforming amendments to existing rules under the California Financing Law to account for the name change and the regulatory oversight of program administrators, PACE solicitors, and PACE solicitor agents. It further adds a new

article to the regulations that is solely applicable to the activities of program ad- ministrators, PACE solicitors, and PACE solicitor agents. The new

article contains new sections which do the following:  Add new

definitions related to PACE financings;  Clarify persons excluded from licensing

definitions;  Require employees be familiar with regulatory requirements;  Clarify requirements for translated documents;  Set forth requirements related to advertising;  Require disclosures;  Define the books and records to be maintained;  Set forth requirements for processing complaints;  Provide examples of prohibited deceptive dealings and misleading statements;  Implement PACE solicitor and PACE solicitor agent enrollment standards;  Set forth standards for monitoring compliance;  Set forth standards for periodic reviews;  Set forth requirements for canceling enrollment;  Set forth requirements for education programs;  Set forth requirements for annual reports;  Set forth standards regarding determinations of a property owner’s ability to pay;  Set forth standards for determining property owner income;  Set forth conditions on emergency improvements;  Require documentation of the useful life of improvements; and  Set forth guidance on meeting the commercially reasonable standard for evaluating PACE financing applications.

The broad objectives of the regulations are to protect property owners who are offered PACE financing from deception, misrepresentations, or misunderstandings, to promote transparency in PACE financing, to provide 3 A “PACE assessment” is defined as a voluntary contractual as- sessment, voluntary special tax, or special tax, as described in subdivisions (a), (b), and (

c) of

section 26054 of the Public Re- sources Code. oversight of persons soliciting property owners, and to facilitate a fair marketplace where the financing option can provide benefits to both property owners and the en- vironment. The specific benefits are protection of prop- erty owners in PACE financing transactions; continued viability of PACE programs through the public confi- dence in effective oversight; and advancing innovative environmental solutions by ensuring the PACE market- place has uniform statewide oversight. B.

Transitioning to NMLS The proposed rulemaking action has program admin- istrators applying for licensure through NMLS rather than applying in paper directly with the Department and further requires all licensees under the California Fi- nancing Law to transition their licenses onto NMLS. NMLS is an online licensing system that was developed and is operated by State Regulatory Registry LLC, a nonprofit affiliate of the Conference of State Bank Su- pervisors.

The federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 4 required all state li- censed and federally registered mortgage loan origina- tors to be registered with the system. Since develop- ment, the system has expanded and now serves as a mul- tistate licensing system for many financial services providers. Currently, the Department licenses mortgage lenders, mortgage brokers, mortgage servicers, mort- gage loan originators, student loan servicers, and pro- gram administrators through NMLS.

Under the Califor- nia Financing Law, some licensees are licensed through NMLS, including mortgage lenders, mortgage brokers, mortgage loan originators, and program administrators, while other lenders and brokers not engaged in the busi- ness of making or brokering loans secured with residen- tial real property or financing PACE transactions are not on NMLS. Through this rulemaking action, the Depart- ment proposes to amend existing rules to transition all licensees under the California Financing Law onto NMLS.

The broad objectives of these provisions are to allow all California Financing Law applicants and licensees to use the same national database and to modernize the application and license maintenance process. The spe- cific benefits include reducing the regulatory burden on licensees with a multistate presence, providing con- sumers with a common location nationally to access in- formation on financial services providers, and stream- lining the licensing process internally by leveraging the technology already developed and used nationally.

The proposed regulations are not inconsistent or in- compatible with existing state regulations. C. Documents Incorporated by Reference This rulemaking action incorporates by reference the following documents in their entirety: 4 12 U.S.C.

section 5101 et seq. 1449

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43  “Form MU1,” the uniform licensing form developed by NMLS, entitled “NMLS Company Form,” Version 11.0, dated 9/12/2015, available at Company (MU1) Form and directly from the Department.5  “Form MU2,” the uniform licensing form developed by the NMLS for a person that directly or indirectly exercises control over a licensee, or a branch thereof, including qualifying individuals and branch managers specified in Form MU1, entitled “NMLS Individual Form,” Version 9, dated 9/12/16, available at Individual (MU2) Form and directly from the Department. 6  “Form MU3,” the uniform licensing form developed by the NMLS for the branch office of a licensee, entitled “NMLS Branch Form,” Version 10, dated 3/31/14, available at Branch (MU3) Form and directly from the Department. 7 ANY OTHER MATTERS PRESCRIBED BY STATUTE (Government Code

Section 11346.5, Paragraph (a)(4)) No other matters are prescribed by statute. DETERMINATION REGARDING MANDATE ON LOCAL AGENCIES OR SCHOOL DISTRICTS; ESTIMATE OF COSTS OR SA VINGS TO ANY LOCAL AGENCY OR SCHOOL DISTRICT, OR TO FEDERAL FUNDING (Government Code

Section 11346.5, Paragraphs (a)(5) and (a)(6)) This regulatory action does not impose a mandate on local agencies or school districts.

This regulatory action will not result in any cost to any local agency or school district required to be reimbursed, will not result in oth- er nondiscretionary cost or savings imposed on local agencies, and will not result in cost or savings in federal funding to the state. 5 https://mortgage.nationwidelicensingsystem.org/licensees/ resources/LicenseeResources/NMLS%20Company% 20Form.pdf. 6 https://mortgage.nationwidelicensingsystem.org/licensees/ resources/LicenseeResources/NMLS%20Individual% 20Form.pdf. 7 https://mortgage.nationwidelicensingsystem.org/licensees/ resources/LicenseeResources/NMLS%20Branch%20Form.pdf.

ESTIMATE OF COST OR SA VINGS ON STATE AGENCY (Government Code

Section 11346.5, Paragraph (a)(6)) This Department will conduct regulatory examina- tions of licensees and confirm compliance with the new provisions. In addition, the Department may have en- forcement actions related to the new provisions. Since the number of new licensees is expected to be remain around five, the Department does not anticipate more than $50,000 in annual costs relating to this rulemaking action. The Department is not aware of any costs or savings for any other state agency. DETERMINATION REGARDING ADVERSE ECONOMIC IMPACT (Government Code

Section 11346.5, Paragraph (a)(7) and (8)) The Department has made an initial determination that this regulatory action will not have a significant, statewide adverse economic impact directly affecting business, including the ability of California businesses to compete with businesses in other states. DESCRIPTION OF ALL COST IMPACTS ON REPRESENTATIVE PRIV ATE PERSON OR BUSINESS (Government Code

Section 11346.5 Paragraph (a)(9)) A representative business will incur costs complying with this regulatory action.

A representative business will incur costs above those incurred solely because of the requirements set forth in statute, for the following new requirements:  Requiring employees be familiar with regulatory requirements;  Requirements related to advertising;  Requiring disclosures;  Requiring specified books and records to be maintained;  Requiring processes complaints;  Requiring specific PACE solicitor and PACE solicitor agent enrollment standards;  Requiring standards for monitoring compliance;  Requiring standards for periodic reviews;  Requiring procedures for canceling or withdrawing enrollment;  Requiring specific education programs; and  Requiring specific annual reports.

The Department anticipates the compliance costs may be between $200,000 and $500,000 for five to ten potential applicants. 1450

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 RESULTS OF ECONOMIC IMPACT ASSESMENT (Government Code

Section 11346.5, Paragraph (a)(10)) The creation or elimination of jobs within the state: The Department has assessed whether this rulemak- ing action will create or eliminate jobs. The provisions in this action will not create jobs. While implementation of the requirements in this rulemaking action will re- quire resources, once implemented the requirements will not result in activities that will produce jobs. The requirements of this rulemaking action may include provisions that will eliminate jobs. If PACE solicitors or PACE solicitor agents are unable to meet the enrollment standards in Financial Code

section 22680 as clarified and interpreted in this rulemaking action, these busi- nesses and individuals will not be able to offer PACE fi- nancing to property owners. The creation of new businesses or the elimination of existing businesses within the state: The Department has assessed whether this rulemak- ing action will create new businesses or eliminate exist- ing businesses. This rulemaking action will not result in the creation of new businesses.

The Department is not aware of any provision in this rulemaking action that will result in the elimination of a business and therefore has determined that this rulemaking action will not re- sult in the elimination of existing businesses within the state. The rulemaking action balances the regulatory re- quirements against the benefits of public protection and based on the Department’s assessment the action does not burden business to the extent of eliminating businesses.

The expansion of businesses currently doing business within the state: The Department has assessed whether this rulemak- ing action will result in the expansion of business cur- rently doing business within the state. The Department has determined that this rulemaking action will not re- sult in the expansion of business currently doing busi- ness within the state. The regulatory requirements on program administrators will initially require the reallo- cation of resources for a business to achieve compliance with the new regulatory requirements.

In the long term, this rulemaking action may positively impact the P ACE financing marketplace by increasing public confidence in the market, and consequently future expansion is possible. The benefits of the regulation to the health and welfare of California residents, worker safety, and the state’s environment: The Department has assessed whether this rulemak- ing action will result in benefits to the health and wel- fare of California residents, worker safety, and the state’s environment.

The regulatory requirements pro- posed in this rulemaking action will help improve the welfare of California residents and the state’s environ- ment by establishing processes and protections intend- ed to prevent fraud and misrepresentation in the PACE financing marketplace. DETERMINATION OF EFFECT ON SMALL BUSINESS (Section 4 of Title 1 of the California Code of Regulations) This regulatory action may impact small business. FINDING REGARDING REPORT (Government Code

Section 11346.5, Paragraph (a)(11)) This regulatory action defines the content of reports required by statute. The Commissioner finds that the in- formation required is necessary for the health, safety, or welfare for the people of the state that the regulation ap- plies to businesses. EFFECT ON HOUSING COSTS (Government Code

Section 11346.5, Paragraph (a)(12)) This regulatory action will not have a significant ef- fect on housing costs. STATEMENT REGARDING REASONABLE ALTERNATIVES (Government Code

Section 11346.5, Paragraph (a)(13)) The Department must determine that no reasonable alternative considered by the Department or that other- wise been identified and brought to the attention of the Department would be more effective in carrying out the purpose for which the action is proposed; would be as effective and less burdensome to affected private per- sons than the proposed action; or would be more cost ef- fective to affected private persons and equally effective in implementing the statutory policy or other provision of law. COMMENT DEADLINE (Government Code

Section 11346.5, Paragraph (a)(15)) Written comments related to the proposed action must be received by December 9, 2019 to be considered 1451

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 by the Department before it proceeds with this regulato- ry action. Comments may be submitted by e−mail to the following address: regulations@dbo.ca.gov, and copy colleen.monahan@dbo.ca.gov. Comments may be submitted by U.S. mail to the fol- lowing address: Department of Business Oversight Attention: Mark Dyer, Regulations Coordinator 1515 K Street, Suite 200 Sacramento, CA 95814 PUBLIC HEARING (Government Code

Section 11346.5, Paragraph (a)(17)) A public hearing has not been scheduled. Any inter- ested person or his or her duly authorized representative may request a public hearing no later than 15 days prior to the close of the written comment period. If the De- partment receives a request for a public hearing, the De- partment will provide notice of the time, date, and place of the hearing by emailing the notice to every person who has subscribed to electronically receive notice of activity related to this rulemaking action with the Department. A V AILABILITY OF THE NOTICE, STATEMENT OF REASONS, TEXT OF PROPOSED REGULATIONS AND RULEMAKING FILE (Government Code

Section 11346.5, Paragraphs (a)(16) and (20), and Subdivision (b)) The Department has prepared a statement of reasons for the proposed action and has available all the infor- mation upon which the proposal is based and the ex- press terms of the proposed action. This notice of rule- making, the text of the proposed regulatory action, and the initial statement of reasons for the proposed regula- tory action are available on the Department’s website at www.dbo.ca.gov.

To access the documents from the Department’s Web site, select the “Licensees” link in the top banner of the home page, select “Laws and Reg- ulations” from the drop−down menu, select the “Regu- lations/Rulemaking” link, and select the “California Fi- nancing Law” link. To subscribe to electronically receive notice of activi- ty on this rulemaking action such as revised text, from the Department’s homepage (dbo.ca.gov), select “Con- tact Us” from top banner. Select “Subscribe to DBO emails” and provide the requested information.

When requested, indicate your request to receive notices relat- ed to rulemaking, and submit your request. The initial statement of reasons and proposed text may also be obtained at the front counter of any of the Department’s locations, below, by requesting Docu- ment PRO 02/17−B or 02/17−C. The documents are al- so available from the contact person designated at the end of this notice.

Los Angeles Office: 320 West 4 th Street, Suite 750 Los Angeles, CA 90013−2344 Sacramento Office: 1515 K Street, Suite 200 Sacramento, CA 95814−4052 San Diego Office: 1350 Front Street, Room 2034 San Diego, CA 92101−3697 San Francisco Office: One Sansome Street, Suite 600 San Francisco, CA 94104−4448 As required by the Administrative Procedure Act, the Legal Division maintains the rulemaking file. The rule- making file is available for public inspection and copy- ing throughout the rulemaking process at the Depart- ment of Business Oversight, Legal Division, 1515 K Street, Suite 200, Sacramento, California 95814.

A V AILABILITY OF CHANGED OR MODIFIED TEXT (Government Code

Section 11346.5, Paragraph (a)(18)) If the Department makes changes to the originally proposed text, it will make the modified text (with the changes clearly indicated) available to the public for at least 15 days before the Department adopts, amends, or repeals the proposed text. A request for a copy of any modified text should be addressed to the contact person designated below. The modified text will also be avail- able on the Department’s website. The Department will accept written comments on the modified text for at least 15 days after the date on which it is made available. A V AILABILITY OF THE FINAL STATEMENT OF REASONS (Government Code

Section 11346.5, Paragraph (a)(19)) Upon its completion, the final statement of reasons will be available, and copies may be requested from the contact person named in this notice or may be accessed on the website listed above. 1452

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 CONTACT PERSON (Government Code

Section 11346.5, Paragraph (a)(14)) Nonsubstantive inquiries concerning this action, such as requests for copies of the proposed regulation or questions regarding the timelines or rulemaking status, may be directed to: Mark Dyer, Regulations Coordinator Department of Business Oversight 1515 K Street, Suite 200 Sacramento, California 95814 Telephone: (916) 322−1977 e−mail: mark.dyer@dbo.ca.gov Inquiries regarding the substance of the proposed regulation may be directed to: Colleen Monahan, Senior Counsel Department of Business Oversight 1515 K Street, Suite 200 Sacramento, California 95814 Telephone: (916) 322−3553 e−mail: colleen.monahan@dbo.ca.gov TITLE 10.

DEPARTMENT OF INSURANCE REG−2019−00021 SUBJECT OF HEARING California’s Insurance Commissioner will hold a public hearing to consider the application of the Cali- fornia Automobile Assigned Risk Plan (“CAARP” or “Plan”) for changes to the Simplified Manual of Rules and Rates. AUTHORITY AND REFERENCE TO ADOPT RATES The Commissioner will consider the application pur- suant to the authority vested in him by

Section 11620 of the California Insurance Code. The Commissioner’s decision on the application will implement, interpret, or make specific the requirements of Insurance Code Sec- tion 11624(e). Government Code section11340.9(

g) applies to this proceeding. HEARING DATE AND LOCATION Notice is hereby given that a public hearing will be held to permit all interested persons the opportunity to present statements or arguments, orally or in writing, with respect to the application at the following date, time, and place: Date: December 11, 2019 Time: 1:00 p.m. Place: Department of Insurance Hearing Room 300 South Spring Street Los Angeles, CA 90013 The hearing will continue on the date noted above until all testimony has been submitted or until 5:00 p.m., whichever is earlier.

ACCESS TO HEARING ROOM The facilities to be used for the public hearing are ac- cessible to persons with mobility impairments. Persons with sight or hearing impairments are requested to noti- fy the contact person (listed below) for this hearing in order to make special arrangements, if necessary. WRITTEN AND/OR ORAL COMMENTS: AGENCY CONTACT PERSON All persons are invited to submit written comments to the Insurance Commissioner on the application prior to the public comment deadline.

Comments should be ad- dressed to the contact person for this proceeding: Contact Person: Michael Riordan, Attorney California Department of Insurance Rate Enforcement Bureau 45 Fremont Street, 21 st Floor San Francisco, CA 94105 riordanm@insurance.ca.gov Telephone: (415) 538−4226 Facsimile: (415) 904−5490 The backup agency contact person for this proceed- ing will be: Emily Gallagher, Attorney California Department of Insurance Rate Enforcement Bureau 45 Fremont Street 21 st Floor San Francisco, CA 94105 gallaghere@insurance.ca.gov Telephone: (415) 538−4108 All persons are invited to present oral and/or written testimony at the scheduled public hearing. 1453

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 DEADLINE FOR WRITTEN COMMENTS All written materials, unless submitted at the hearing, must be received by the Insurance Commissioner at the address listed above no later than 5:00 p.m. on De- cember 11, 2019. Any written materials received after that time will not be considered. Written comments may also be submitted to the contact person by e−mail or fac- simile transmission. Please select only one method to submit written comments.

ADVOCACY OR WITNESS FEES Persons or groups representing the interest of con- sumers may be entitled to reasonable advocacy fees, witness fees, and other reasonable expenses, in accor- dance with the provisions of California Code of Regula- tions, Title 10, Sections 2662.1−2662.6 in connection with their participation in this matter. Interested persons must submit a Petition to Participate, as specified in California Code of Regulations, Title 10,

Section 2661.4. The Petition to Participate must be submitted to the Commissioner at the Office of the Public Advisor at the following address: California Department of Insurance Office of the Public Advisor 300 Spring Street 12 th Floor Los Angeles, CA 90013 Telephone: (213) 346−6635 A copy of the Petition to Participate must also be sub- mitted to the contact person for this hearing (listed above). For further information, please contact the Of- fice of the Public Advisor.

INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW CA 19−05 On January 1, 2019, Regulation 2018−00020 Gender Non−Discrimination in Automobile Insurance Rating became effective. The regulation eliminates the use of a driver’s gender in private passenger automobile insur- ance rating in California. Gender has been eliminated from the list of optional rating factors shown in CA In- surance Code

Section 1861.02. CAARP proposes updating its classification codes must be updated to comply with the regulation. COMPARABLE FEDERAL LAW There are no comparable existing federal regulations or statutes. LOCAL MANDATE DETERMINATION The Insurance Commissioner has initially deter- mined that the application will not result in any new program mandates on local agencies or school districts. MANDATES ON LOCAL AGENCIES OR SCHOOL DISTRICTS OR COSTS WHICH MUST BE REIMBURSED PURSUANT TO GOVERNMENT CODE SECTIONS 17500 THROUGH 17630 The Insurance Commissioner has initially deter- mined that the application will not result in any cost or significant savings to any local agency or school district for which

Part 7 (commencing with

Section 17500) of Division 4 of the Government Code would require re- imbursement, or in other nondiscretionary costs or sav- ings to local agencies. COST OR SA VINGS TO ANY STATE AGENCY; FEDERAL FUNDING The Commissioner has determined that the applica- tion will result in no cost or savings to any state agency and no cost or savings in federal funding to the state.

SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT ON BUSINESSES AND THE ABILITY OF CALIFORNIA BUSINESSES TO COMPETE The Commissioner has initially determined that the proposal will not have a significant statewide adverse economic impact directly affecting businesses, includ- ing the ability of California businesses to compete with businesses in other states. This proposal will have no ef- fect on the creation or elimination of jobs in California, the creation of new businesses, the elimination of exist- ing businesses in California, or the expansion of busi- nesses in California.

COST IMPACT ON PRIV ATE PERSONS OR ENTITIES The Insurance Commissioner has initially deter- mined that the proposal will not affect private person or entities. 1454

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 IMPACT ON HOUSING COSTS The Insurance Commissioner has initially deter- mined that the application will not affect housing costs. IMPACT ON SMALL BUSINESS The proposed rate changes will not affect small businesses. SPECIFIC TECHNOLOGIES OR EQUIPMENT The application would not mandate the use of specif- ic technologies or equipment.

ALTERNATIVES The Insurance Commissioner must determine that no reasonable alternative considered by the agency, or that has otherwise been identified and brought to the atten- tion of the agency, would be more effective in carrying out the purpose for which the action is proposed or would be as effective and less burdensome to affected private persons than the proposed action. PLAIN ENGLISH The application describing the proposal is in plain English. However, the application itself is based on technical actuarial principles.

TEXT AND INITIAL STATEMENT OF REASONS The Department has prepared an Initial Statement of Reasons addressing the proposed rate application in ad- dition to the Informative Digest included in this notice. The Initial Statement of Reasons, Notice of Proposed Action and Regulation Text are available for inspection or copying, and will be provided at no charge upon re- quest to the contact person listed above. Further details on CAARP’s proposal are on file with the Commission- er and available for review as set forth below.

FINAL STATEMENT OF REASONS A Final Statement of Reasons will be prepared at the conclusion of this proceeding. Upon written or e−mail request to the contact person listed above, the Final Statement of Reasons will be made available for inspec- tion and copying once it has been prepared. A copy of the Final Statement of Reasons will also be posted on the Department’s web site.

ACCESS TO RULEMAKING FILE Any interested person may inspect a copy of or direct questions about CAARP’s application, the statement of reasons, and any supplemental information contained in the rulemaking file by contacting the contact person listed above. By prior appointment, the rulemaking file is available for inspection at 45 Fremont Street, 21 st Floor, San Francisco, California 94105, between the hours of 9:00 a.m. and 4:30 p.m. Monday through Friday. AUTOMATIC MAILING A copy of this Notice, including the Informative Di- gest is being sent to all persons on the Insurance Com- missioner’s mailing list.

A V AILABILITY OF DOCUMENTS ON THE INTERNET The Initial Statement of Reasons, proposed text, and this Notice of Proposed Action will be published online and may be accessed through the Department’s website at www.insurance.ca.gov. A V AILABILITY OF MODIFIED TEXT OF REGULATIONS If the Department amends the application with changes that are sufficiently related to the original ap- plication, the Department will make the full text of the amended rates, with the changes clearly indicated, available to the public for at least 15 days before the date the Department adopts the amended rates. TITLE 10.

DEPARTMENT OF INSURANCE REG−2019−00022 SUBJECT OF HEARING California Insurance Commissioner Ricardo Lara will hold a public hearing to address the proposed amendments to the California Low Cost Automobile (“CLCA”) Plan of Operations. AUTHORITY TO ADOPT RULES AND PROCEDURES AND REFERENCE The Commissioner will consider the proposed changes pursuant to the authority vested in him by Sec- tion 11620 of the California Insurance Code. The Com- 1455

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 missioner’s decision on the proposed changes will im- plement, interpret, or make specific the requirements of Insurance Code

Section 11624(e). Insurance Code Sec- tion 11620(

c) applies to this proceeding. HEARING DATE AND LOCATION Notice is hereby given that a public hearing will be held to permit all interested persons the opportunity to present statements or arguments, orally or in writing, with respect to the proposed changes at the following date, time, and place: Date: December 11, 2019 Time: 1:00 p.m. Place: Department of Insurance Hearing Room 300 South Spring Street Los Angeles, CA 90013 The hearing will continue on the date noted above until all testimony has been submitted or until 5:00 p.m., whichever is earlier.

ACCESS TO HEARING ROOM The facilities to be used for the public hearing are ac- cessible to persons with mobility impairments. Persons with sight or hearing impairments are requested to noti- fy the contact person (listed below) for this hearing in order to make special arrangements, if necessary. WRITTEN AND/OR ORAL COMMENTS: AGENCY CONTACT PERSON All persons are invited to submit written comments to the Insurance Commissioner on the application prior to the public comment deadline.

Comments should be ad- dressed to the contact person for this proceeding: Contact Person: Michael Riordan, Attorney California Department of Insurance Rate Enforcement Bureau 45 Fremont Street, 21 st Floor San Francisco, CA 94105 riordanm@insurance.ca.gov Telephone: (415) 538−4226 Facsimile: (415) 904−5490 The backup agency contact person for this proceed- ing will be: Emily Gallagher, Attorney California Department of Insurance Rate Enforcement Bureau 45 Fremont Street 21 st Floor San Francisco, CA 94105 gallaghere@insurance.ca.gov Telephone: (415) 538−4108 All persons are invited to present oral and/or written testimony at the scheduled public hearing.

DEADLINE FOR WRITTEN COMMENTS All written materials, unless submitted at the hearing, must be received by the Insurance Commissioner at the address listed above no later than 5:00 p.m. on De- cember 11, 2019. Any written materials received after that time will not be considered. Written comments may also be submitted to the contact person by e−mail or fac- simile transmission. Please select only one method to submit written comments.

ADVOCACY OR WITNESS FEES Persons or groups representing the interest of con- sumers may be entitled to reasonable advocacy fees, witness fees, and other reasonable expenses, in accor- dance with the provisions of California Code of Regula- tions, Title 10, Sections 2662.1−2662.6 in connection with their participation in this matter. Interested persons must submit a Petition to Participate, as specified in California Code of Regulations, Title 10,

Section 2661.4. The Petition to Participate must be submitted to the Commissioner at the Office of the Public Advisor at the following address: California Department of Insurance Office of the Public Advisor 300 Spring Street 12 th Floor Los Angeles, CA 90013 Telephone: (213) 346−6635 A copy of the Petition to Participate must also be sub- mitted to the contact person for this hearing (listed above). For further information, please contact the Of- fice of the Public Advisor. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW LC 19−03 On January 1, 2019, Regulation 2018−00020 Gender Non−Discrimination in Automobile Insurance Rating 1456

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 became effective. The regulation eliminates the use of a driver’s gender in private passenger automobile insur- ance rating in California. Gender has been eliminated from the list of optional rating factors shown in CA In- surance Code

Section 1861.02. CAARP proposes updating its classification codes must be updated to comply with the regulation. LC 19−04 Currently the Statistical Guidelines in the LCA Plan of Operations displays California zip codes two ways: (1) cities alphabetically by county and (2) zip codes nu- merically by county. To improve efficiency and cut costs the data could be provided in a single comprehensive exhibit. This would reduce the number of manual pages and be easier to update. To do this CAARP proposes a single Statistical Guidelines exhibit.

The exhibit would contain zip code and statistical code information in a single exhibit re- ducing the number of exhibits currently utilized. In addition the current process to update zip codes re- quire approval of the CA Low Cost Subcommittee, CAARP Advisory Committee, and the California De- partment of Insurance. This delay impacts producers and applicants trying to secure coverage in the LCA plan. CAARP proposes authorization to release updated statistical guideline zip code without making a formal regulatory filing. This will have no impact on the way CAARP assigns applications.

It would mirror the approved method in place for annual update to the Federal Poverty Guide- line information used by CAARP to determine income eligibility for the LCA program. Like the Federal Poverty Guidelines used to set income eligibility USPS zip codes are public information. Because zip codes can change, be eliminated, or added several times in a year insureds and potential insureds in the LCA program could be impacted. Allowing CAARP to address and changes quickly ensures that coverage will be available. COMPARABLE FEDERAL LAW There are no comparable existing federal regulations or statutes.

LOCAL MANDATE DETERMINATION The Insurance Commissioner has initially deter- mined that the proposal will not result in any new pro- gram mandates on local agencies or school districts. MANDATES ON LOCAL AGENCIES OR SCHOOL DISTRICTS OR COSTS WHICH MUST BE REIMBURSED PURSUANT TO GOVERNMENT CODE SECTIONS 17500 THROUGH 17630 The Insurance Commissioner has initially deter- mined that the proposal will not result in any cost or sig- nificant savings to any local agency or school district for which

Part 7 (commencing with

Section 17500) of Division 4 of the Government Code would require re- imbursement, or in other nondiscretionary costs or sav- ings to local agencies. COST OR SA VINGS TO ANY STATE AGENCY; FEDERAL FUNDING The Commissioner has determined that the proposed regulation will result in no cost or savings to any state agency and no cost or savings in federal funding to the state.

SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT ON BUSINESSES AND THE ABILITY OF CALIFORNIA BUSINESSES TO COMPETE The Commissioner has initially determined that the proposal will not have a significant statewide adverse economic impact directly affecting businesses, includ- ing the ability of California businesses to compete with businesses in other states. This proposal will have no ef- fect on the creation or elimination of jobs in California, the creation of new businesses, the elimination of exist- ing businesses in California, or the expansion of busi- nesses in California.

COST IMPACT ON PRIV ATE PERSONS OR ENTITIES The Insurance Commissioner has initially deter- mined that the proposal will not affect private person or entities. IMPACT ON HOUSING COSTS The Insurance Commissioner has initially deter- mined that the proposal will not affect housing costs. IMPACT ON SMALL BUSINESS The Insurance Commissioner has initially deter- mined that the proposal will not affect small business. 1457

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 SPECIFIC TECHNOLOGIES OR EQUIPMENT The Insurance Commissioner has initially deter- mined that specific technologies or equipment will be needed. ALTERNATIVES The Insurance Commissioner must determine that no reasonable alternative considered by the agency, or that has otherwise been identified and brought to the atten- tion of the agency, would be more effective in carrying out the purpose for which the action is proposed or would be as effective as and less burdensome to affect- ed private persons than the proposed action.

PLAIN ENGLISH The proposed changes describing CAARP’s propos- als are in plain English. TEXT AND INITIAL STATEMENT OF REASONS The Department has prepared an Initial Statement of Reasons addressing the proposed amendments in addi- tion to the Informative Digest included in this notice. The Initial Statement of Reasons, Notice of Proposed Action and Text of Regulations are available for inspec- tion or copying, and will be provided at no charge upon request to the contact person listed above. Further de- tails on CAARP’s proposal are on file with the Commis- sioner and available for review as set forth below.

FINAL STATEMENT OF REASONS A Final Statement of Reasons will be prepared at the conclusion of this proceeding. Upon written or e−mail request to the contact person listed above, the Final Statement of Reasons will be made available for inspec- tion and copying once it has been prepared. A copy of the Final Statement of Reasons will also be posted on the Department’s web site.

ACCESS TO RULEMAKING FILE Any interested person may inspect a copy of or direct questions about CAARP’s proposed amendments, the statement of reasons, and any supplemental informa- tion contained in the rulemaking file by contacting the contact person listed above. By prior appointment, the rulemaking file is available for inspection at 45 Fre- mont Street, 21 st Floor, San Francisco, California 94105, between the hours of 9:00 a.m. and 4:30 p.m. Monday through Friday.

AUTOMATIC MAILING A copy of this Notice, including the Informative Di- gest is being sent to all persons on the Insurance Com- missioner’s mailing list. A V AILABILITY OF DOCUMENTS ON THE INTERNET The Initial Statement of Reasons, proposed text, and this Notice of Proposed Action will be published online and may be accessed through the Department’s website at www.insurance.ca.gov.

A V AILABILITY OF MODIFIED TEXT OF REGULATIONS If the Department amends the proposed regulations with changes that are sufficiently related to the original text, the Department will make the full text of the amended regulations, with the changes clearly indicat- ed, available to the public for at least 15 days before the date the Department adopts the amended regulations. TITLE 13. CALIFORNIA AIR RESOURCES BOARD This notice announces the availability of the Pro- posed Advanced Clean Trucks (ACT) Regulation and a Draft Environmental Analysis (Draft EA) for public comment.

The California Air Resources Board (CARB or Board) will conduct a public hearing at the time and place noted below to consider the Proposed ACT Regulation. DATE: December 12, 2019 TIME: 9:00 a.m. LOCATION: California Environmental Protection Agency California Air Resources Board Byron Sher Auditorium 1001 I Street Sacramento, California 95814 This item will be considered at a meeting of the Board, which will commence at 9:00 a.m., December 12, 2019, and may continue at 9:00 a.m., on December 13, 2019.

Please consult the agenda for the hearing, which will be available at least ten days before Decem- ber 12, 2019, to determine the day on which this item will be considered. 1458

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 WRITTEN COMMENT PERIOD AND SUBMITTAL OF COMMENTS In accordance with the Administrative Procedure Act, interested members of the public may present com- ments orally or in writing at the hearing and may pro- vide comments by postal mail or by electronic submittal before the hearing. The public comment period for this regulatory action will begin on October 25, 2019. Writ- ten comments not physically submitted at the hearing must be submitted on or after October 25, 2019, and re- ceived no later than December 9, 2019.

Any written comments on the Draft EA must be submitted on or af- ter October 25, 2019, and received no later than De- cember 9, 2019. Comments submitted outside that comment period are considered untimely. CARB may, but is not required to, respond to untimely comments, including those raising significant environmental is- sues. CARB requests that when possible, written and email statements be filed at least ten days before the hearing to give CARB staff and Board members addi- tional time to consider each comment.

The Board also encourages members of the public to bring to the atten- tion of staff in advance of the hearing any suggestions for modification of the proposed regulatory action. Comments submitted in advance of the hearing must be addressed to one of the following: Postal mail: Clerks’ Office, California Air Resources Board 1001 I Street, Sacramento, California 95814 Electronic submittal: http://www.arb.ca. gov/lispub/comm/bclist.php Please note that under the California Public Records Act (Gov. Code,

section 6250 et seq.), your written and oral comments, attachments, and associated contact in- formation (e.g., your address, phone, email, etc.) be- come part of the public record and can be released to the public upon request. Additionally, the Board requests but does not require that persons who submit written comments to the Board reference the title of the proposal in their comments to facilitate review.

AUTHORITY AND REFERENCE This regulatory action is proposed under the authority granted in California Health and Safety Code, sections 38501, 38510, 38560, 38566, 39500, 39600, 39601, 39650, 39658, 39659, 39666, 39667, 43013, 43018, 43100, 43101, 43102, 43104. Reference: Sections 38501, 38505, 38510, 38560, 38580, 39000, 39003, 39650, 39655, 43000, 43000.5, 43013, 43016, 43018, 43100, 43101, 43102, 43104, 43105, 43106, 43205, 43205.5. INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT OVERVIEW (GOV . CODE.

section 11346.5, subd. (a)(3)) Sections Affected: Proposed adoption of sections 1963, 1963.1, 1963.2, 1963.3, 1963.4, 1963.5, 2012, 2012.1, 2012.2, and 2012.3, and to codify all of these into a new

Article 3.1, title 13, California Code of Regulations. DOCUMENTS INCORPORATED BY REFERENCE (Cal. Code Regs., tit. 1,

section 20, subd. (c)(3)) The following would be incorporated in the regula- tion by reference as specified by the following sections:  40 CFR

section 86.1803−01, amended on July 1, 2011, incorporated by reference in

section 1963(c)(15)(A). BACKGROUND AND EFFECT OF THE PROPOSED REGULATORY ACTION Mobile sources and the fossil fuels that power them are the largest contributors to the formation of ozone, greenhouse gas (GHG) emissions, fine particulate mat- ter (PM2.5), and toxic diesel particulate matter (PM). In California, the transportation sector alone accounts for 41 percent of total GHG emissions (50 percent when upstream emissions from fuel is included) and is a ma- jor contributor to oxides of nitrogen (NOx) and PM emissions.

The Proposed ACT Regulation will contrib- ute to achieving the state’s criteria pollutant and GHG reduction goals and cleaner technology targets. The purpose of the Proposed ACT Regulation is to accelerate the use of zero−emission vehicles (ZEVs) in the medium−and heavy−duty truck sector and reduce the amount of harmful emissions generated from on− road mobile sources.

The primary objectives of the pro- posed ACT regulation include the following:  Accelerate first wave of zero−emission truck deployments in best suited applications;  Achieve 100 percent zero−emission pickup−and−delivery in local applications by 2040;  Support the Ports of Los Angeles and Long Beach Clean Air Action Plan for 100 percent zero−emission drayage trucks by 2035;  Support AB 739 requiring California state government fleets to purchase ZEVs;  Enable a lar ge−scale transition to zero−emission technology;  Maximize the total number of ZEVs deployed;  Complement existing and future programs; 1459

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43  Provide environmental benefits, especially in disadvantaged communities thereby supporting the implementation of AB 617;  Ensure requirements are technologically feasible and cost effective; and  Foster a self−sustaining zero−emission truck market.

The deployment of ZEVs meets goals identified in the State Implementation Plan (SIP), the 2017 Climate Change Scoping Plan, and the 2016 ZEV Action Plan that supports the Governor’s Executive Orders B−16−12 and B−48−18, which call for 1.5 million ZEVs in California by 2025 and 5 million ZEVs by 2030, and establishes several milestones on the path- way towards meeting these targets. In 2018, Governor Brown issued Executive Order B−55−18, which sets a target to achieve carbon neutrality in California no later than 2045, and to achieve and maintain net negative emissions thereafter.

The Proposed ACT Regulation di- rectly supports achieving these goals through the re- quired sale of ZEVs in California from all large medium− and heavy−duty vehicle manufacturers. Background and Program Overview Zero−emission truck and buses can meet the needs of most local and regional operations with technology that is available today. Studies have shown that most straight trucks (designed with all axles on a single chas- sis), particularly those used in local delivery applica- tions, do not travel more than 100 miles per day.

A wide assortment of zero−emission trucks and buses are com- mercially available today that exceed 100 miles of available range. In addition, several battery electric and fuel cell models are being demonstrated that exceed over 200 miles per day. The Proposed ACT Regulation was first identified as the “Last Mile Delivery” measure in the 2016 Mobile Source Strategy, which is part of the SIP and the 2017 Climate Change Scoping Plan. This measure is needed for California to achieve established near− and long− term air quality and climate mitigation targets.

Last mile delivery fleets are well suited for introducing zero−emission technology because they operate in ur- ban centers, have stop and go driving cycles, and are centrally maintained and fueled. Therefore, develop- ment of the Proposed ACT Regulation began with an initial focus on these pickup−and−delivery applica- tions; however, as development progressed staff found that other vocational uses have similar operating char- acteristics that are well suited for electrification.

Addi- tionally, zero−emission technology continues to im- prove rapidly, and costs continue to come down so that zero−emission trucks and buses are now being offered in a wide variety of vehicle classes with varying electric range and utility. Nearly one hundred different models are commercially available in California with more to come. Zero−emission technology deployments are needed in the medium− and heavy−duty market to meet the state’s emission reduction goals, but to date, the major truck manufacturers have been relatively absent in this space.

For the past decade, smaller startup truck manu- facturers have stepped in to fill market demand and have been designing and marketing zero−emission trucks. These startup companies have significantly ad- vanced the technology. However, they do not yet have broad dealer networks or regional service facilities that can be leveraged quickly to provide support and main- tenance services for large numbers of ZEVs. They also may lack the ability to deliver very large orders for ma- jor fleets that have been interested in operating zero emission trucks. This has hampered ZEV market ex- pansion for early adopter fleets.

At workshops dis- cussing this proposal, a number of fleets that have been operating zero−emission trucks for years expressed concern about their experience in securing service and repairs to support their ZEVs in operation from smaller startups companies. In a few cases, orders for a large number of ZEVs were placed and not fulfilled. In addi- tion, some of these fleets also had early experiences with ZEV products that were launched by large manu- facturers that were also discontinued due to issues with their ZEV component suppliers.

The Proposed ACT Regulation is focused on requir- ing large truck manufacturers to sell zero−emission trucks in California to broaden the market and to send a clear signal that medium− and heavy−duty ZEVs will be a major part of California’s overall strategy to reduce criteria emissions, reduce climate impacts, and reduce petroleum use. The Proposed ACT Regulation would also require one−time reporting from large entities about their contracting practices in meeting their trans- portation needs and how truck and bus owners currently use their vehicles.

Information collected from these companies would help CARB structure future end−user regulatory strategies including whether large entities that hire truck fleets could become a point of regulation, help ensure a level playing field, and help CARB deter- mine any appropriate exemptions or flexibilities. This information would be used in developing future regula- tions designed to further accelerate the purchase and use of ZEVs in fleets.

Using both approaches of requir- ing manufacturers to build ZEVs and requirements to use them, in combination with early market support from funding programs, will significantly accelerate the market for ZEV technology.

Summary of Proposal The Proposed ACT Regulation includes two primary elements. First, it requires manufacturers to sell ZEVs 1460

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 as a percentage of annual truck and bus sales in Califor- nia. Second, it requires one−time reporting of informa- tion from large organizations including retailers, manu- facturers, and government agencies, about contracted services requiring the use of trucks and shuttles in addi- tion to their heavy−duty vehicle fleet.

ZEV Sales Requirement Applicability  ZEV sales requirement applies to manufacturers that certify incomplete chassis or complete vehicles greater than 8,500 Ibs. gross vehicle weight rating (GVWR).  Manufacturers with less than 500 annual California sales are exempt, but may opt−in to earn credits for selling ZEVs.

Sales Percentage  Class 2b−3 group (consisting mainly of full size pickup trucks and vans) and Class 7−8 tractor group (consisting of on−road semi−trucks that haul trailers) ZEV sales begin at 3 percent of California sales beginning in 2024 model year (MY) and increase to 15 percent by 2030 MY (Class 2b−3 pickups would be excluded until 2027 MY).  ZEV sales for all other vehicles in the Class 4−8 group begin at 7 percent of California sales in 2024 MY and increase to 50 percent in 2030 MY .  The ZEV sales percentage requirements remain constant past 2030 MY .

Credits  Manufacturers can earn credits starting with the 2021 MY .  Starting with the 2024 MY , ZEP Certification would be required, where applicable, for ZEVs to earn credits.  Compliance would be based on a credit and deficit system to provide flexibility for manufacturers to sell more ZEVs in one weight category and fewer in another.  Credits may be banked and traded  Near−zero−emission vehicles (plug−in hybrids with some all−electric range) would earn partial credits, and could be used to offset up to half of each manufacturer’s annual deficits through the 2030 MY .

Manufacturer Reporting  Manufacturers would need to report annually to demonstrate compliance, to earn credits, and to report details about credit trade transactions.

Large Entity Reporting Requirement  Large entities are defined as a government agency or a private organization that met one of the following in calendar year 2019:  Received more than $50 million in total annual gross revenue and operated a facility in California.  Owned 100 or more Class 2b and greater vehicles and operated a facility in California  Dispatched 100 or more Class 2b and greater vehicles.  Large entities would be required to report information by April 1, 2021, about the following:  Their contracting practices with motor carriers and for services that require the use of shuttles or trucks, and  Those who own trucks and buses would need to report information about their fleets, how they are operated, and where they are assigned or dispatched.  To streamline the process, affected entities would be required to complete a one−time submittal of aggregated and approximate data for representative facilities, rather than detailed information about every facility.  Additionally, entities with vehicles would be required to report approximate, representative information about the vehicle types owned, rather than reporting operational data for every vehicle.

OBJECTIVES AND BENEFITS OF THE PROPOSED REGULATORY ACTION The purpose of the Proposed ACT Regulation is to accelerate the use of zero−emission vehicles (ZEVs) in the medium−and heavy−duty truck sector and reduce the amount of harmful emissions generated from on− road mobile sources. For a list of the ten primary objec- tives of the proposed ACT regulation, please refer to the “Background and Effect of the Proposed Regulatory Action,” above.

Include the following: Environmental Benefits The Proposed ACT Regulation would assist in attain- ing air quality standards, reducing health risks to indi- viduals living in California, and meeting climate change goals. The emission reductions achieved by staff’s proposal will contribute to the reduction of cu- mulative risk of mortality and morbidity from mobile source emissions in the state. The majority of these ben- efits will be in the state’s most populated and impacted 1461

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 areas near ports and city centers. These areas include the South Coast, San Francisco Bay Area, San Joaquin Valley, San Diego County, and the Sacramento Air Basins. The Proposed ACT Regulation is expected to result in significant NOx, PM 2.5, and GHG emission reduc- tions due to replacing internal combustion powered ve- hicles with zero−emission technology. ZEVs produce no tailpipe emissions, reduce brake wear PM emissions, and have lower associated upstream emissions. Table ES−1 summarizes the expected criteria emission bene- fits in 2031 and 2040.

These emission reductions con- tribute to the State SIP Strategy and Climate Change Scoping Plan. Table ES−1: Expected Emission Reductions of Proposed ACT Regulation Calendar Year: 2031 — NO x (tpd): 5.0 — PM 2.5 (tpd): 0.16 — WTW GHG (MMT/yr): 0.4 Calendar Year: 2040 — NO x (tpd): 16.9 — PM2.5 (tpd): 0.46 — WTW GHG (MMT/yr): 1.7 Economic Impacts ZEVs are more expensive upfront but provide opera- tional savings in terms of lower fuel and maintenance costs.

The Proposed ACT Regulation is expected to re- sult in a total cost saving of $4.9 billion to truck trans- portation in California compared to Business as Usual from 2020 through 2040, mostly due to fuel cost sav- ings. This estimate includes infrastructure cost, higher cost of the vehicles, maintenance and fuel savings, and cost savings due to the Low Carbon Fuel Standard. It does not include vehicle or infrastructure incentives.

In- centive programs such as the Hybrid and Zero− Emission Truck and Bus V oucher Incentive Program (HVIP), utility investments, and other funding may be used to offset some potential cost to consumers. The es- timated total statewide health benefits derived from cri- teria emission reductions are estimated to be an addi- tional $5.7 billion in savings. The Proposed ACT Regulation requires that manu- facturers must build and sell more costly zero−emission trucks, certify their powertrain using the ZEP Certifica- tion procedure, and report information to CARB as part of their regulatory requirements.

The research, manu- facture, certification, and development of ZEVs by manufacturers will contribute to the companies’ costs associated with the Proposed ACT Regulation. Howev- er, the required ZEV sales can also count towards com- pliance with the existing California and federal Phase 2 GHG regulations simultaneously. Reporting require- ments for vehicle manufacturers are not expected to be significant since most of the information needed is al- ready reported as part of Phase 2 GHG compliance. It is not straightforward to predict how these costs and cost− savings would be passed on to consumers.

Vehicle pric- ing is complex, and different manufacturers could use different strategies to pass on these costs. It is possible that manufacturers may pass on incremental ZEV costs through the price of ZEVs themselves, through the rest of their non−ZEV fleet, or some combination thereof. Consumers may also be affected by the increased cost of taxes due to potentially higher cost of vehicles but may benefit from the operational cost savings.

The Proposed ACT Regulation also requires one− time reporting for large companies and government agencies who would need to report about their Califor- nia facility locations, and how they and their contractors move freight and perform other services. Large fleet owners would also need to report information about what vehicles they own, and how they operate. The cost of complying with this one−time reporting requirement is not expected to be significant.

Challenges and Long−Term Benefits Although ZEV technology has advanced rapidly in recent years, there are still challenges both fleets and manufacturers have to address to successfully deploy ZEVs. Common challenges for deploying zero− emission technologies include high upfront capital costs for both vehicle purchase and fueling/charging in- frastructure expansion, challenges with scalability, managing electricity costs, vehicle operation flexibili- ty, and workforce training. Continued improvements in ZEV costs and perfor- mance are still needed to facilitate the full transition to zero−emission technology.

However, the transition to zero−emission technology is essential for California to meet its long−term air quality and climate protection goals. The Proposed ACT Regulation provides sufficient time for manufacturers to bring new ZEVs to the mar- ket, aided by several major funding programs to support early demonstrations and to kick start the market by re- ducing the incremental costs of commercial zero− emission technologies.

Fleet owners can also benefit from lower operating and maintenance costs including Low Carbon Fuel Standard credits to significantly re- duce operating costs while supporting the low carbon fuel market. As ZEV sales increase, technology im- proves, and incremental costs decline, a self−sustaining medium− and heavy−duty ZEV market is achievable in a wide range of applications. COMPARABLE FEDERAL REGULATIONS There are no comparable federal regulations, necessi- tating the Proposed ACT Regulations to protect public health and achieve climate protection benefits. 1462

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 AN EV ALUATION OF INCONSISTENCY OR INCOMPATIBILITY WITH EXISTING STATE REGULATIONS (Gov. Code,

section 11346.5, subd. (a)(3)(D)) During the process of developing the proposed regu- latory action, CARB conducted a search of any similar regulations on this topic and concluded these regula- tions are neither inconsistent nor incompatible with ex- isting state regulations. DISCLOSURES REGARDING THE PROPOSED REGULATION FISCAL IMPACT/LOCAL MANDATE DETERMINATION REGARDING THE PROPOSED ACTION (Gov. Code,

section 11346.5, subds. (a)(5)and(6)) The determinations of the Board’s Executive Officer concerning the costs or savings incurred by public agencies and private persons and businesses in reason- able compliance with the proposed regulatory action are presented below. Cost to Any Local Agencies and School Districts Requiring Reimbursement under

section 17500 et seq. Pursuant to Government Code sections 11346.5, sub- division (a)(5) and 11346.5, subdivision (a)(6), the pro- posed regulatory action is a mandate that would create costs and cost−savings to local agencies, but not to school districts. However, these costs to local agencies are not reimbursable by the State under Government Code, title 2, division 4,

part 7 (commencing with sec- tion 17500). The mandate is not reimbursable because costs associated with the proposed regulation apply generally to all entities that purchase affected vehicles and respond to the reporting requirement, including lo- cal agencies. Therefore, the regulation does not consti- tute a “Program” imposing any unique requirements on local agencies as set forth in

section 17514 of the Cali- fornia Government Code. The Proposed ACT Regulation directly impacts local government entities, who are local agencies. Cities and counties are required to complete the Large Entity Re- porting requirement in 2021. There are 58 counties and 482 cities in California and each would be required to report information about their fleets and the type of transportation services for which they contract. Many cities and counties in California levy a Utility User Tax on electricity usage. This tax varies from city to city and ranges from no tax to 11 percent.

A value of 3.53 percent was used in this analysis representing a population−weighted average (SCO, 2016) 1. By in- creasing the amount of electricity used, there will be an increase in the amount of the utility user tax revenue collected by cities and counties. Fuel taxes on gasoline and diesel to fund transporta- tion improvements at the state, county, and local levels. Displacing gasoline and diesel with electricity and hy- drogen will decrease the total amount of gasoline and diesel dispensed in the state, resulting in a reduction in fuel tax revenue collected by local governments.

Sales taxes are levied in California to fund a variety of programs at the state and local level. The Proposed ACT Regulation will require the sale of more expensive zero−emission trucks in California which will result in direct increase in sales tax revenue collected by local governments. Overall, local sales tax revenue may in- crease less than the direct increase from vehicle sales if overall business spending doesn’t increase. The local government fleet is estimated to make up 2.9 percent of California’s fleet based on information from manufacturers and the Department of General Services.

A proportionate amount of the total costs are assumed to pass−through to local governments. The estimated fiscal impacts to local government compared to a business as usual baseline are estimated −$0.6 million over the first three years of the regulation and $4 million over the regulatory lifetime. Cost or Savings for State Agencies: The Proposed ACT Regulation will impose costs on CARB.

The Proposed ACT Regulation would have a small impact on staffing resources and would require two additional Air Pollution Specialist positions re- sponsible for administering contracts to set up the re- porting systems, assisting stakeholders with inquiries, data analysis and auditing of information submitted by manufacturers and fleets, supporting ACT enforcement actions and other general implementation duties. Each position has a fully burdened cost to CARB of $180,000 in Fiscal Year (FY) 2020−2021 and $179,000 every year afterwards.

The manufacturer reporting requirement will require modifying an existing reporting system or developing a new system to handle the reporting. The estimated cost is up to $200,000 in FY 2020−2021 in contracting costs to set up a method for performing credit calculations and to track credit transactions to determine compliance with the rule. Similarly, the fleet and large entity reporting require- ment will require developing a new system to upload or receive reported data.

The estimated cost is $200,000 in 1 (SCO, 2016) California State Controller’s Office, User Utility Tax Revenue and Rates (web page: https://sco.ca.gov/Files− ARD−Local/LoSCzcRep/2016−17 Cities UUT.pdf, last accessed June 2019). 1463

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 FY 2020−2021 in contracting costs to set up the large entity reporting system. Fuel taxes on gasoline and diesel fund transportation improvements at the state, county, and local levels. Dis- placing gasoline and diesel with electricity and hydro- gen will decrease the total amount of gasoline and diesel dispensed in the state. This will result in a reduction in revenue collected by the state for use in multiple levels of government.

The Energy Resource Fee is a $0.0003/kWh sur- charge levied on consumers of electricity purchased from electrical utilities. The revenue collected is de- posited into the Energy Resources Programs Account of the General Fund which is used for ongoing energy programs and projects deemed appropriate by the Leg- islature, including but not limited to, activities of the California Energy Commission. The state collects registration fees to fund transporta- tion improvements at the state, county, and local levels.

The fee structure for ZEVs is different from diesel vehi- cles with some fees such as the V ehicle License Fee be- ing higher and others such as weight fees being lower. These differences result in lower registration fees for the ZEVs. These lower fees result in reduced revenue collected by the state for use in transportation services. Sales taxes are levied in California to fund a variety of programs at the state and local level. This Proposed ACT Regulation will require the sale of more expensive zero−emission trucks in California which will result in higher sales tax collected by the state governments.

Overall, state sales tax revenue may increase less than the direct increase from vehicle sales if overall business spending doesn’t increase. The state government fleet is estimated to make up 2.1 percent of California’s fleet based on information from manufacturers and the Department of General Services. A proportionate amount of the total costs are assumed to pass−through to the state government. The estimated fiscal impacts to the state government compared to a business as usual baseline are estimated −$1.4 million over the first three years of the regulation and −$2.1 billion over the regulatory lifetime.

Other Non−Discretionary Costs or Savings on Local Agencies: The Proposed ACT Regulation affects local agen- cies, but is not expected to impose any non− discretionary costs or saving to local agencies. Cost or Savings in Federal Funding to the State: The Proposed ACT Regulation is not expected to im- pose any costs or saving in Federal Funding to the State. HOUSING COSTS (Gov. Code,

section 11346.5, subd. (a)(12)) The Executive Officer has also made the initial deter- mination that the proposed regulatory action will not have a significant effect on housing costs. Nothing in the regulation is expected to impact housing costs. SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT DIRECTLY AFFECTING BUSINESS, INCLUDING ABILITY TO COMPETE (Gov.

Code, sections 11346.3, subd. (a), 11346.5, subd. (a)(7), 11346.5, subd. (a)(8)) The Executive Officer has made an initial determina- tion that the proposed regulatory action would not have a significant statewide adverse economic impact direct- ly affecting businesses, including the ability of Califor- nia businesses to compete with businesses in other states, or on representative private persons. MAJOR REGULATION: STATEMENT OF THE RESULTS OF THE STANDARDIZED REGULATORY IMPACT ANALYSIS (Gov. Code,

section 11346.3, subd. (c)) [Work in Progress] In August 2019, CARB submitted a Standardized Regulatory Impact Analysis (SRIA) to the Department of Finance (DOF) for its review. CARB has updated the Proposed ACT Regulation since the original SRIA sub- mittal, and to address DOF comments. The revisions are discussed in the ISOR,

Chapter IX. The Creation or Elimination of Jobs within the State The Proposed ACT Regulation is estimated to result in a slightly positive job impact from approximately 2025 to 2040. These changes in employment represent less than 0.04 percent of baseline California employ- ment. The total employment impacts are net of changes at the industry level. As the requirements of the Pro- posed ACT Regulation go into effect, the industries generally realizing reductions in production cost or in- creases in final demand see an increase in employment growth.

This includes the truck transportation, con- struction, and manufacturing sectors and upstream in- dustries. The largest decrease in employment results from the public sector, which is estimated to realize a decrease in fuel and sales tax revenue and registration fees. The oil and gas extraction industry and automotive repair and maintenance industry see a decreased em- ployment growth rate due to a reduction in final demand for their goods and services. 1464

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 The Creation of New Businesses or the Elimination of Existing Businesses within the State The overall jobs and output impacts of the Proposed ACT Regulation are very small relative to the total Cali- fornia economy, representing changes of less than 0.03 percent. The trend of decreasing production costs for the truck transportation industry has the potential to re- sult in an expansion or increases in businesses in this in- dustry if sustained over time.

However, the decreasing trend in demand for gasoline and diesel fuel following the implementation of this Proposed ACT Regulation has the potential to result in a decrease in businesses in this industry if sustained over time. The Competitive Advantages or Disadvantages for Businesses Currently Doing Business within the State The Proposed ACT Regulation imposes a sales man- date on large truck manufacturers. These truck manu- facturers are headquartered and produce vehicles en- tirely out−of−state for a national and international mar- ket.

There are small manufacturing entities in− and out− of−state that would not be required to sell ZEVs in Cali- fornia. Any risk of creating a competitive advantage is mitigated by the 500 vehicle sales threshold. Any small manufacturer that is able to increase sales would be- come subject to the same ZEV requirements as other large manufacturers. Early credit generation incentives are proposed to benefit all manufacturing entities, and therefore would not give an explicit competitive advantage or disadvan- tage to competing manufacturers.

The Increase or Decrease of Investment in the State Private domestic investment consists of purchases of residential and nonresidential structures and of equip- ment and software by private businesses and nonprofit institutions. It is used as a proxy for impacts on invest- ments in California because it provides an indicator of the future productive capacity of the economy.

The relative changes to growth in private investment for the Proposed ACT Regulation show an increase of private investment of about $177 million in 2030 and $428 million in 2040, or less than 0.01 percent of a busi- ness as usual baseline investment. The Incentives for Innovation in Products, Materials, or Processes Staff is proposing incentives for early ZEV sales by allowing credits to be generated from ZEV sales start- ing with the 2021 MY , 3 years prior to the first sales re- quirements in the 2024 MY .

Staff anticipates growth in industries that manufacture ZEV technologies, includ- ing first and second tier suppliers for manufacturers of ZEVs, which will strengthen the supply chain, and pro- mote technology improvements earlier than they would have otherwise occurred. This growth will help foster and support a self−sustaining medium− and heavy−duty ZEV market.

The Benefits of the Regulations, Including, But Not Limited to, Benefits to the Health, Safety, and Welfare of California Residents, Worker Safety, and the State’ s Environment and Quality of Life, Among Any Other Benefits Identified By the Agency The Proposed ACT Regulation would reduce GHG, PM, and NOx emissions. The Proposed ACT Regula- tion is expected achieve a reduction of 5.0 tpd of NOx and 0.16 tpd of PM 2.5 by 2031 which is a key year in meeting the SIP.

It would continue to achieve additional emissions reductions past 2031 as ZEV sales percent- ages stay flat and continue to increase the number of ZEVs in the fleet. The Proposed ACT Regulation is also expected to cumulatively reduce well−to−wheel GHG emissions by 11.2 million metric tons of carbon dioxide (MMT CO2) from 2020 to 2040. The Proposed ACT Regulation would also result in benefits to businesses and the State of California as a whole, as summarized here and discussed in detail in the ISOR

Chapter V . Truck and bus owners through lowered total cost of ownership and lower fuel costs can reduce their overall costs by using ZEVs. Utility providers would benefit from shifting electricity load to off−peak periods and increased electricity demand, and could lower electricity costs due to increased utilization of infrastructure. Additionally, utilities will better be able to meet the requirements of SB350. Benefits from energy savings and reduction on petroleum fuel depen- dence are realized by the State as a whole, as well as dis- advantaged communities and the State’s economy.

Department of Finance Comments and Responses 1. DOF Comment: In general, Finance concurs with the methodology used to estimate impacts of proposed regulations. The SRIA clearly lays out for the public the proposed regulatory impacts, and does a good job of showing how this proposed regulation fits in with the overall strategy for California to reduce emissions. However, the SRIA also must be modified to include benefits — such as avoided health costs — on an annual basis.

Response: The analysis in the ISOR has been updated to display annual avoided health cost benefits rather than just showing the total for the analysis period. There are three types of benefits modeled in the analysis: avoided health costs, avoided social cost of carbon, and direct cost savings. The annual valuation of health benefits and social cost of carbon are displayed in

Chapter V . Annual direct costs and associated savings are dis- played in

Chapter IX. 1465

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 BUSINESS REPORT (Gov. Code, sections 11346.5, subd. (a)(11); 11346.3, subd. (d)): In accordance with Government Code sections 11346.5, subdivisions (a)(11) and 11346.3, subdivision (d), the Executive Officer finds the reporting require- ments of the proposed regulatory action which apply to businesses are necessary for the health, safety, and wel- fare of the people of the State of California. COST IMPACTS ON REPRESENTATIVE PRIV ATE PERSONS OR BUSINESSES (Gov. Code,

section 11346.5, subd. (a)(9)) In developing this regulatory proposal, CARB staff evaluated the potential economic impacts on represen- tative private persons or businesses. Manufacturers are responsible for meeting the ZEV sales percentage re- quirement, but none of the regulated manufacturers build vehicles in California. Most fleets do not currently have a requirement to purchase ZEVs. As a result, man- ufacturers bear risk in that they may have to sell vehi- cles below cost to fleets to meet the requirements of the regulation.

Any ZEV costs that manufacturers cannot pass on through sale of their ZEVs may be added to the cost of the rest of their non−ZEV fleet, or the manufac- turer may not pass on the cost and must absorb the cost themselves. The impacts are discussed in the ISOR,

Chapter IX. There are no direct costs to individuals as a result of this regulation; however, individuals may ex- perience indirect costs resulting from macroeconomic effects. Individuals may see health benefits due to ZEVs displacing non−ZEV vehicles and providing statewide, regional, and local emission benefits. Manu- facturers and fleets will see increased and decreased costs as a result of this rule and will pass through to indi- viduals in the state. EFFECT ON SMALL BUSINESS (Cal. Code Regs., tit. 1,

section 4, subds. (

a) and (b)) The Executive Officer has also determined under California Code of Regulations, title 1,

section 4, that the proposed regulatory action would not affect small businesses. There is no expected direct cost on small businesses under the Proposed ACT Regulation. No manufacturers or fleets who would be regulated under this rule are small businesses. Small businesses who operate trucks will not be re- quired to purchase zero−emission trucks, but may inde- pendently decide to do so. This may enable cost savings for small businesses due to electric trucks’ lower cost of operation. CONSIDERATION OF ALTERNATIVES (Gov. Code,

section 11346.5, subd. (a)(13)) Before taking final action on the proposed regulatory action, the Board must determine that no reasonable al- ternative considered by the Board, or that has otherwise been identified and brought to the attention of the Board, would be more effective in carrying out the pur- pose for which the action is proposed, would be as ef- fective and less burdensome to affected private persons than the proposed action, or would be more cost− effective to affected private persons and equally effec- tive in implementing the statutory policy or other provi- sions of law. The analysis of such alternatives can be found in

Chapter X of the ISOR for the proposed alternatives. Staff has discussed six alternative concepts in the ISOR, including stricter and less stringent ZEV sales require- ments, credit for low NOx engines paired with ZEV sales requirement, fleet ZEV purchase requirements, the Truck and Engine Manufacturers Association’s tar- geted sector sales requirement coupled with a purchase requirement proposal, and proposals from environmen- tal groups.

No alternative proposed was found to be less burden- some and equally effective in achieving the purposes of the regulation in a manner that ensures full compliance with the authorizing law. The Board has not identified any reasonable alternatives that would lessen any ad- verse impact on small business. STATE IMPLEMENTATION PLAN REVISION If adopted by CARB, CARB plans to submit the pro- posed regulatory action to the U.S. EPA for approval as a revision to the SIP required by the federal Clean Air Act (CAA).

The adopted regulatory action would be submitted as a SIP revision because it adopts regula- tions intended to reduce emissions of air pollutants in order to attain and maintain the National Ambient Air Quality Standards promulgated by U.S. EPA pursuant to the CAA. ENVIRONMENTAL ANALYSIS CARB, as the lead agency for the proposed regula- tion, has prepared a draft EA under its certified regula- tory program (California Code of Regulations, title 17, sections 60000 through 60008) to comply with the re- quirements of the California Environmental Quality Act (CEQA; Public Resources Code

section 21080.5). The EA concluded that implementation of the proposed regulation could result in: beneficial impacts to energy demand, and greenhouse gases; less than significant impacts, or no impacts, to air quality, energy demand, 1466

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 greenhouse gases, land use planning, mineral re- sources, population and housing, public service, and recreation; and potentially significant [indirect/ secondary] adverse impacts to aesthetics, agricultural and forest resources, air quality, biological resources, cultural resources, geology and soils, hazards and haz- ardous materials, hydrology and water quality, land use planning, mineral resources, noise, transportation and traffic, and utilities and service systems.

The draft EA, included as Appendix D to the ISOR, is entitled Draft Environmental Analysis. Written comments on the draft EA will be accepted during a 45−day public re- view period starting on October 25, 2019 and ending at 5 p.m. on December 9, 2019. SPECIAL ACCOMMODATION REQUEST Consistent with California Government Code Sec- tion 7296.2, special accommodation or language needs may be provided for any of the following:  An interpreter to be available at the hearing;  Documents made available in an alternate format or another language; and  A disability−related reasonable accommodation.

To request these special accommodations or lan- guage needs, please contact the Clerk of the Board at (916) 322−5594 or by facsimile at (916) 322−3928 as soon as possible, but no later than 10 business days be- fore the scheduled Board hearing. TTY/TDD/Speech to Speech users may dial 711 for the California Relay Service.

Consecuente con la sección 7296.2 del Código de Gobierno de California, una acomodación especial o necesidades lingüísticas pueden ser suministradas para cualquiera de los siguientes:  Un intérprete que esté disponible en la audiencia;  Documentos disponibles en un formato alterno u otro idioma; y  Una acomodación razonable relacionados con una incapacidad.

Para solicitar estas comodidades especiales o necesi- dades de otro idioma, por favor llame a la oficina del Consejo al (916) 322−5594 o envié un fax a (916) 322−3928 lo más pronto posible, pero no menos de 10 días de trabajo antes del día programado para la audien- cia del Consejo. TTY/TDD/Personas que necesiten este servicio pueden marcar el 711 para el Servicio de Re- transmisión de Mensajes de California.

AGENCY CONTACT PERSONS Inquiries concerning the substance of the proposed regulatory action may be directed to the agency repre- sentative Craig Duehring, Manager, In−Use Control Measures Section, at (916) 323−2361 or (designated back−up contact) Paul Arneja, Air Resources Engineer, at (916) 322−5616. A V AILABILITY OF DOCUMENTS CARB staff has prepared a Staff Report: Initial State- ment of Reasons (ISOR) for the proposed regulatory ac- tion, which includes a

summary of the economic and environmental impacts of the proposal. The report is en- titled: Staff Report: Initial Statement of Reasons — Public Hearing to Consider the Proposed Advanced Clean Trucks Regulation. Copies of the ISOR and the full text of the proposed regulatory language, may be accessed on CARB’s web- site listed below, or may be obtained from the Public In- formation Office, California Air Resources Board, 1001 I Street, Visitors and Environmental Services Center, First Floor, Sacramento, California, 95814, on October 22, 2019.

The agency representative to whom nonsubstantive inquiries concerning the proposed administrative ac- tion may be directed to Bradley Bechtold, Regulations Coordinator, (916) 322−6533. The Board staff has com- piled a record for this rulemaking action, which in- cludes all the information upon which the proposal is based. This material is available for inspection upon re- quest to the contact persons. HEARING PROCEDURES The public hearing will be conducted in accordance with the California Administrative Procedure Act, Government Code, title 2, division 3,

part 1,

chapter 3.5 (commencing with

section 11340).

Following the public hearing, the Board may vote on a resolution directing the Executive Officer to: make any proposed modified regulatory language that is suf- ficiently related to the originally proposed text that the public was adequately placed on notice and that the reg- ulatory language as modified could result from the pro- posed regulatory action, and any additional supporting documents and information, available to the public for a period of at least 15 days; consider written comments submitted during this period; and make any further modifications as may be appropriate in light of the com- ments received available for further public comment.

The Board may also direct the Executive Officer to: evaluate all comments received during the public com- ment periods, including comments regarding the Draft Environmental Analysis, and prepare written responses to those comments; and present to the Board, at a subse- quently scheduled public hearing, the final proposed regulatory language, staff’s written responses to com- 1467

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 ments on the Draft Environmental Analysis, along with the Final Environmental Analysis for action. FINAL STATEMENT OF REASONS A V AILABILITY Upon its completion, the Final Statement of Reasons (FSOR) will be available and copies may be requested from the agency contact persons in this notice, or may be accessed on CARB’s website listed below.

INTERNET ACCESS This notice, the ISOR and all subsequent regulatory documents, including the FSOR, when completed, are available on CARB’s website for this rulemaking at https://ww2.arb.ca.gov/rulemaking/2019/ advancedcleantrucks. TITLE 15. DEPARTMENT OF CORRECTIONS AND REHABILITATION NOTICE IS HEREBY GIVEN that the Secretary of the California Department of Corrections and Rehabili- tation (CDCR), pursuant to the authority granted by Government Code (GC)

section 12838.5 and Penal Code (PC)

section 5055, and the rulemaking authority granted by PC

section 5058, proposes to repeal sections 3352, 3352.1, 3355, and 3355.2; amend sections 3999.98, 3999.99, and 3999.320; and adopt sections 3999.100 et seq., 3999.200 et seq., 3999.300 et seq., and 3999.400 et seq. of the California Code of Regulations (CCR), Title 15, Division 3, concerning medical care for CDCR patients. PUBLIC HEARING Date and Time: December 18, 2019 — 10:00 a.m. to 11:00 a.m. Place: Elk Grove Police Service Center Elk Grove City Council Chambers 8400 Laguna Palms Way Elk Grove, CA 95758 Purpose: To receive comments about this action.

The Elk Grove City Council Chambers is wheelchair accessible. At the hearing, any person may present statements or arguments orally or in writing relevant to the proposed action described in the Informative Di- gest. The Department requests but does not require that persons who make oral comments at the hearing also submit a written copy of their testimony at the hearing. PUBLIC COMMENT PERIOD The public comment period will close December 18, 2019, at 5:00 p.m. Any person may submit public com- ments in writing (by mail or by e−mail) regarding the proposed changes.

To be considered, comments must be submitted to California Correctional Health Care Services (CCHCS), Health Care Regulations and Poli- cy Section, P.O. Box 588500, Elk Grove, CA, 95758, or by e−mail to HealthCareRegulations@cdcr.ca.gov be- fore the close of the comment period. CONTACT PERSON Please direct any inquiries regarding this action to: J. Inderkum Risk Management Branch California Correctional Health Care Services P.O. Box 588500 Elk Grove, CA 95758 (916) 691−2921 D. Gouldy Associate Director Risk Management Branch California Correctional Health Care Services (916) 691−2922 AUTHORITY AND REFERENCE GC

section 12838.5 provides that commencing July 1, 2005, CDCR succeeds to, and is vested with, all the powers, functions, duties, responsibilities, obligations, liabilities, and jurisdiction of abolished predecessor en- tities, such as: Department of Corrections, Department of the Youth Authority, and Board of Corrections. PC

section 5000 provides that commencing July 1, 2005, any reference to the Department of Corrections in this or any code, refers to the CDCR, Division of Adult Operations. PC

section 5050 provides that commencing July 1, 2005, any reference to the Director of Corrections, in this or any other code, refers to the Secretary of the CDCR. As of that date, the office of the Director of Cor- rections is abolished. PC

section 5054 provides that commencing July 1, 2005, the supervision, management, and control of the state prisons, and the responsibility for the care, cus- tody, treatment, training, discipline, and employment of persons confined therein are vested in the Secretary of the CDCR. PC

section 5058 authorizes the Director to prescribe and amend regulations for the administration of prisons. 1468

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 43 References cited pursuant to this regulatory action are as follows:

Section 312, Code of Federal Regula- tions; Sections 3406, 3407, 3409, 3500−3524, 5008.2, 5054, and 7570−7576, PC; Sections 1150, 1279.1, 1337−1338.5, and 1366−1366.4, Health and Safety Code; Sections 2069−2071, 2700 et seq., 2700−2838.4, 2725(b), 2761, 2776, 2836.1, 2836.2, 2836.3, 2840, 2878, 3500−3546, 4040(a)(2), 4076, 4170, 4171(b), 4500 et seq., and 4521, Business and Professions Code; Sections 3200−3212, and 3203, Probate Code; Plata v. Newsom (No. C01−1351 JST), U.S. District Court, Northern District of California; Clark

Document details

CollectionCalifornia Z Register
CitationCal. Reg. Notice Reg. 2019, No. 43
Typegazette
Languageen
Formatpdf
SourceCA_ZREG
Identifier17ec5ef21251c759042df747d0cd09177961bea7

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California Regulatory Notice Register — Register 2019, No. 43-Z (October 25, 2019)

Cal. Reg. Notice Reg. 2019, No. 43

California Z Register

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