REGISTER (Continued on next page) Time- Dated Material EDMUND G. BROWN, JR., GOVERNOR OFFICE OF ADMINISTRATIVE LAW 2018, NO. 49−Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW DECEMBER 7, 2018 PROPOSED ACTION ON REGULATIONS TITLE 2. FAIR POLITICAL PRACTICES COMMISSION Conflict−of−Interest Code — Notice File No. Z2018−1127−01 .......................................... 2153 Amendment Multi−County: Resource Conservation District of the Santa Monica Mountains Bay Cities Joint Powers Insurance Authority TITLE 3.

DEPAR TMENT OF FOOD AND AGRICULTURE Oriental Fruit Fly Eradication Area — Yolo County — Notice File No. Z2018−1127−02 ..................... 2154 TITLE 5. COMMISSION ON TEACHER CREDENTIALING Cost Recovery Fees — Notice File No. Z2018−1127−03 .............................................. 2156 TITLE 8. DEPARTMENT OF INDUSTRIAL RELATIONS Office of Self−Insurance Plans (OSIP) Annual Report of Public Self−Insured Employers — Notice File No. Z2018−1126−01 ................................................................. 2161 TITLE 11.

DEPARTMENT OF JUSTICE Dealer Record of Sale (DROS) Entry System (DES) — Notice File No. Z2018−1127−05 ..................... 2168 TITLE 13. AIR RESOURCES BOARD Amendments to Solid Waste Collection Vehicle Regulation — Notice File No. Z2018−1120−04 ................ 2172 GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE California Endangered Species Act, Fish and Game Code

Section 2080.3 Concurrence No. 2080−2018−014−04, Implementation of the San Joaquin River Restoration Program and Accompanying Hatchery and Genetic Management Plan — Butte, Napa, Yolo, and Fresno Counties .............................................................................. 2176

A V AILABILITY OF INDEX OF PRECEDENTIAL DECISION BUREAU OF AUTOMOTIVE REPAIR Notice of Availability of Precedential Decisions Index ................................................ 2182

SUMMARY OF REGULATORY ACTIONS Regulations filed with the Secretary of State ........................................................ 2183 Sections Filed, June 27, 2018 to November 28, 2018 ................................................. 2184 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 2018, VOLUME NO. 49-Z 2153 PROPOSED ACTION ON REGULATIONS Information contained in this document is published as received from agencies and is not edited by Thomson Reuters. 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 MULTI−COUNTY: Resource Conservation District of the Santa Monica Mountains Bay Cities Joint Powers Insurance Authority A written comment period has been established com- mencing on December 7, 2018, and closing on January 21, 2019.

Written comments should be directed to the Fair Political Practices Commission, Attention Brianne Kilbane, 1102 Q Street, Suite 3000, Sacramento, Cali- fornia 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 January 21, 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 Brianne Kilbane, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322−5660. 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-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2154 spective agency. Requests for copies from the Commis- sion should be made to Brianne Kilbane, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322−5660. TITLE 3. DEPARTMENT OF FOOD AND AGRICULTURE 45−Day Notice The Department of Food and Agriculture amended subsection 3591.2 of the regulations in Title 3 of the California Code of Regulations pertaining to Oriental Fruit Fly Eradication Area as an emergency action that was effective on August 22, 2018.

The Department pro- poses to continue the regulation as amended and to complete the amendment process by submission of a Certificate of Compliance no later than February 19, 2019. This notice is being provided in compliance with Government Code

Section 11346.4. PUBLIC HEARING 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 Department no later than 15 days prior to the close of the written comment period. WRITTEN COMMENT PERIOD Any interested person or his or her authorized repre- sentative may submit written comments relevant to the proposed amendment to the Department. Comments may be submitted by mail, facsimile (FAX) at 916.651.2900 or by email to Dean.Kelch@cdfa.ca.gov.

The written comment period closes at 5:00 p.m. on Jan- uary 21, 2019. The Department will consider only com- ments received at the Department offices by that time.

Submit comments to: Dean Kelch Department of Food and Agriculture Plant Health and Pest Prevention Services 1220 N Street Sacramento, CA 95814 Dean.Kelch@cdfa.ca.gov 916.406.6650 916.651.2900 (FAX) Following the public hearing if one is requested, or following the written comment period if no public hear- ing is requested, the Department of Food and Agricul- ture, at its own motion, or at the instance of any interest- ed person, may adopt the proposal substantially as set forth without further notice.

INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Existing law provides that the Secretary is obligated to investigate the existence of any pest that is not gener- ally distributed within this state and determine the prob- ability of its spread and the feasibility of its control or eradication (FAC

Section 5321). Existing law also provides that the Secretary may es- tablish, maintain and enforce quarantine, eradication and other such regulations as she deems necessary to protect the agricultural industry from the introduction and spread of pests (FAC Sections 401, 403, 407 and 5322). Anticipated Benefits from This Regulatory Action Existing law, FAC

section 403, provides that the de- partment shall prevent the introduction and spread of injurious insect or animal pests, plant diseases, and noxious weeds. Existing law, FAC

section 407, provides that the Sec- retary may adopt such regulations as are reasonably necessary to carry out the provisions of this code which the Secretary is directed or authorized to administer or enforce. Existing law, FAC

section 5321, provides that the Secretary is obligated to investigate the existence of any pest that is not generally distributed within this State and determine the probability of its spread, and the fea- sibility of its control or eradication. Existing law, FAC

section 5322, provides that the Secretary may establish, maintain, and enforce quaran- tine, eradication, and such other regulations as are in the Secretary’s opinion necessary to circumscribe and ex- terminate or prevent the spread of any pest which is de- scribed in FAC

section 5321. Existing law, CCR

Section 3591.2, defines the state’s eradication areas for Oriental fruit fly. The existing law obligates the Secretary to investi- gate and determine the feasibility of controlling or erad- icating pests of limited distribution, but establishes dis- cretion with regard to the establishment and mainte- nance of regulations to achieve this goal. This amend- ment provides the necessary regulatory authority to pre- vent the artificial spread of a serious insect pest, which is a mandated statutory goal.

This regulation will benefit the public’s general wel- fare by providing authority for the State to perform de- tection, control, and eradication activities against Ori- ental fruit fly in Yolo County. The implementation of this regulation will prevent:

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2155 • direct damage to the agricultural industry growing host fruits • indirect damage to the agricultural industry growing host fruits due to the implementation of quarantines by other countries and loss of export markets • increased production costs to the affected agricultural industries • increased pesticide use by the affected agricultural industries • increased costs to the consumers of host fruits • increased pesticide use by homeowners and others • the need to implement a State interior quarantine • the need to implement a federal domestic quarantine There is no existing, comparable federal regulation or statute regulating the intrastate movement.

The Department considered any other possible relat- ed regulations in this area, and it found that these are the only regulations dealing in this subject area, and the De- partment is the only State agency which can implement these eradication areas for plant pests. As required by Government Code

Section 11346.5(a)(3)(D), the De- partment has conducted an evaluation of this regulation and has determined that it is not inconsistent or incom- patible with existing state regulations. AMENDED TEXT This emergency rulemaking action added Yolo County to the Oriental Fruit Fly Eradication Area. The effect of the amendment of this regulation is to provide authority for the State to perform eradication activities against Oriental fruit fly in the county of Yolo.

DISCLOSURES REGARDING THE PROPOSED ACTION The Department has made the following initial determinations: Mandate on local agencies and school districts: None. Cost or savings to any state agency: None. Cost to any local agency or school district which must be reimbursed in accordance with Government Code sections 17500 through 17630: None and no nondiscre- tionary costs or savings to local agencies or school districts. Cost or savings in federal funding to the state: None.

Significant, statewide adverse economic impact di- rectly affecting business, including the ability of Cali- fornia businesses to compete with businesses in other states: None. Cost impacts on a representative private person or business: The agency is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action. Small Business Determination The Department has determined that the proposed regulations may affect small businesses. Significant effect on housing costs: None.

Results of the Economic Impact Analysis Amendment of these regulations will not:

(1) Create or eliminate jobs within California;

(2) Create new businesses or eliminate existing businesses within California; or

(3) Affect the expansion of businesses currently doing business within California The Department has determined the amendment of this regulation would benefit: • the general public • homeowners and community gardens • agricultural industry • the State’s general fund There are no known specific benefits to worker safety or the health of California residents.

ALTERNATIVES CONSIDERED The Department must determine that no reasonable alternative it considered to the regulation or that has otherwise been identified and brought to its attention would either be more effective in carrying out the pur- pose for which the action is proposed or 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- sion of law than the proposal described in this Notice. AUTHORITY The Department proposes to amend

section 3591.2 pursuant to the authority vested by Sections 407 and 5322 of the Food and Agricultural Code. REFERENCE The Department proposes this action to implement, interpret and make specific Sections 407, 5322, 5761, 5762 and 5763 of the Food and Agricultural Code.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2156 CONTACT The agency officer to whom written comments and inquiries about the initial statement of reasons, pro- posed actions, location of the rulemaking files, and re- quest for a public hearing may be directed is: Dean Kelch, Department of Food and Agriculture, Plant Health and Pest Prevention Services, 1220 N Street, Room 210, Sacramento, California 95814, (916) 403−6650, FAX (916) 651−2900, E−mail: Dean. Kelch@cdfa.ca.gov. In his absence, you may contact Laura Petro at (916) 654−1017.

Questions regarding the substance of the proposed regulation should be directed to Dean Kelch. INTERNET ACCESS The Department has posted the information regard- ing this proposed regulatory action on its Internet web- site ( www.cdfa.ca.gov/plant/Regulations.html). A V AILABILITY OF STATEMENT OF REASONS AND TEXT OF PROPOSED REGULATIONS The Department of Food and Agriculture has pre- pared an initial statement of reasons for the proposed actions, has available all the information upon which its proposal is based, and has available the express terms of the proposed action.

A copy of the initial statement of reasons and the proposed regulations in underline and strikeout form may be obtained upon request. The loca- tion of the information on which the proposal is based may also be obtained upon request. In addition, when completed, the final statement of reasons will be avail- able upon request. Requests should be directed to the contact named herein. If the regulations adopted by the Department differ from, but are sufficiently related to the action proposed, they will be available to the public for at least 15 days prior to the date of adoption.

Any interested person may obtain a copy of said regu- lations prior to the date of adoption by contacting the agency officer (contact) named herein. TITLE 5. COMMISSION ON TEACHER CREDENTIALING Division VIII of Title 5 of the California Code of Regulations Proposed Amendments to Title 5 of the California Code of Regulations Pertaining to Cost Recovery Fees for Extraordinary Accreditation Activities The Commission on Teacher Credentialing (Com- mission) proposes to take the regulatory action de- scribed below after considering all comments, objec- tions, and recommendations regarding the proposed action.

PUBLIC HEARING A public hearing on the proposed action will be held: February 8, 2019 8:30 a.m. Commission on Teacher Credentialing 1900 Capitol Avenue Sacramento, California 95811 WRITTEN COMMENT PERIOD Any interested person, or his or her authorized repre- sentative, may submit written comments by fax, through the mail, or by email relevant to the proposed action. The written comment period closes at 5:00 p.m. January 21, 2019. Comments must be received by that time or may be submitted at the public hearing. You may fax your response to (916) 327−3165; write to the Commission on Teacher Credentialing, attn.

Kathryn Polster, 1900 Capitol Avenue, Sacramento, California 95811; or submit an email to kpolster@ctc.ca.gov, or Michelle Bernardo at mbernardo@ctc.ca.gov. Any written comments received by the closing of the public comment period will be reproduced by the Com- mission’s staff for each member of the Commission as a courtesy to the person submitting the comments and will be included in the written agenda prepared for and presented to the full Commission at the hearing. AUTHORITY AND REFERENCE Education Code (EC)

section 44225 authorizes the Commission to adopt the proposed regulation amend-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2157 ments. The proposed regulations implement, interpret, and make specific EC

section 44374.5 pertaining to fees related to extraordinary accreditation activities. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW

Summary of Existing Laws and Regulations This rulemaking action proposes amendments to sec- tions 80691 and 80692 of Title 5 of the California Code of Regulations (CCR) related to cost recovery fees for extraordinary accreditation activities. The purpose of the fee

schedule is to recover the costs of extraordinary staff time and work that is created as a result of a current or prospective educator preparation program requiring consultation or additional specialized attention outside of regularly scheduled accreditation activities. As a re- sult of the addition of EC

section 44374.5, which autho- rized the Commission to develop and implement a cost recovery plan for extraordinary accreditation activities, the initial cost recovery fee regulations went into effect October 30, 2013 after Commission approval on Sep- tember 27, 2013.

The Budget Act of 2015 (Assembly Bill 93, Chap. 10, Stats. 2015) provided a one−time General Fund appro- priation of $3.467 million for the Streamline and Strengthen the Accreditation Process (SSAP), which included funds to support a comprehensive review and revision of educator preparation including the develop- ment and implementation of significant improvements to streamline and strengthen the Commission’s accredi- tation system.

Significant changes to the accreditation system’s processes and terminology have resulted in the need to amend sections 80691 and 80692 of Title 5 of the CCR related to cost recovery fees for extraordinary accreditation activities so that the regulations are up to date and aligned with the Commission’s processes and the governing statutes. At the December 2016 Commission meeting staff proposed amendments to the fee

schedule and the Com- mission directed staff to begin the regular rulemaking process. A Coded Correspondence and a notice of pro- posed amendments were published on the Commission webpage on April 14, 2017. Additionally, the Office of Administrative Law (OAL) published the notice on their website. The proposed amendments included two fee changes and general clean−up to align terms with the Commission’s restructured accreditation system. As part of the regulatory process, staff engaged in several discussions with OAL and responded to their questions about the proposed regulations.

During these discussions it became apparent to Commission staff that the regulatory process for the proposed cost recov- ery regulations was extraordinarily complicated. This was due in part to the extensive changes implemented in processes and procedures that stem from the strength- ening and streamlining accreditation project. In addi- tion, the current regulations incorporated by reference specific Accreditation Handbook chapters requiring in- terested parties to have to consult both sources.

After discussions with OAL and upon reflection, staff real- ized the need to identify a new approach that would be more transparent and less burdensome to readers. Additionally, in summer 2017, while the staff was preparing the regulations package for submission to OAL, the Council for the Accreditation of Educator Preparation (CAEP) changed their fee structure, which resulted in an additional $2,500 fee for the Commission for each joint review conducted with educator prepara- tion programs in California. National accreditation is voluntary in California.

The activity is in addition to the regularly scheduled activities and is defined as an extra- ordinary fee. In response, at the September 2017 Com- mission meeting, the Commission took action to in- clude a new $2,500 fee for joint CAEP site visits and di- rected staff to include this fee in this regulations packet. As a result of these factors, the 2017 rulemaking packet was withdrawn.

After withdrawing the previ- ously amended Cost Recovery Fees for Extraordinary Accreditation Activities regulations from review by the OAL, Commission staff attended additional training with OAL staff and received clarification on the best methods for updating regulations in light of the signifi- cant overhaul to the accreditation system. The amendments in this proposal have been updated and rewritten for clarity and to reflect the changes to the accreditation system, including a fee for joint accredita- tion visits with other accrediting entities.

Objectives and Anticipated Benefits of the Proposed Regulations The objective of the proposal is to amend the regula- tions that permit the Commission to continue to recover costs incurred for extraordinary accreditation activities, while bringing the regulations up to date and in align- ment with the new accreditation process and improving the clarity of the regulatory language.

The Commission anticipates that the proposed amendments will benefit students attending public schools in the State of California by providing re- sources to perform the Commission’s statutorily man- dated accreditation duties, thereby ensuring high quali- ty educator preparation for the instruction of California K−12 public school students.

Amendments will also provide a way for prospective institutions to pay their IIA fees as they move along, paying for services ren- dered rather than having to pay all IIA fees at the start of the approval process with the possibility of not com- pleting the process successfully. Finally, interested par-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2158 ties will benefit by having a clearer set of regulations to refer to which aligns the terminology and process of the updated Accreditation System and no longer requires referencing secondary sources (articles incorporated by reference). The proposed regulations will promote fairness and prevent discrimination by specifying that the cost re- covery fees apply to all institutions offering or propos- ing to offer Commission−approved programs, regard- less of agency type.

The proposed regulations will also increase openness and transparency by clarifying the cost recovery fees associated with IIA, new program re- view and accreditation activities in excess of the regu- larly scheduled data reports, document reviews, and ac- creditation site visits. The Commission does not anticipate that the pro- posed regulations will result in the protection of public health and safety, worker safety, or the environment, the prevention of social inequity or an increase in openness and transparency in business.

Overview of proposed amendments: The proposed regulations have been updated and rewritten for clarity and to align terminology and fee structure with the new changes to the accreditation sys- tem, including a fee for joint accreditation visits with other accrediting entities, removal of the in−kind process, removing obsolete fees, and general language cleanup. Articles Incorporated By Reference Currently, regulations have several chapters of the Commission’s Accreditation Handbook incorporated by reference and interested parties have to consult both the regulations and the incorporated handbook chap- ters.

The updates to the Accreditation System have ne- cessitated updates to the Accreditation Handbook. In order to align terminology between the new system and proposed regulations, all of the articles incorporated by reference in the current regulations have been removed. The Commission believes this approach is more trans- parent and less burdensome on the readers. Rather than amending the current cost recovery sections with arti- cles incorporated by reference, the Commission is proposing to amend the current accreditation fee regu- lations by providing greater detail and terminology alignment in the

definitions

section of the text and re- moving the articles incorporated by reference.

Definitions Amendments The

definitions

section of the regulations has been updated to reflect the new accreditation system and eliminate language that no longer applies to the current system, as well as to clearly define the various types of accreditation team site visits and types of documenta- tion that must be submitted throughout the accreditation cycle. Fee Structure Amendments for Initial Program Review (IPR) Amendments to the regulations are being proposed due to the changes in the accreditation system and ef- forts to update and revise program standards.

Currently, the cost recovery fee structure is based on the number of standards required for the submission of a new pro- gram. Since program standards have been streamlined and strengthened, the number of standards in a program is no longer indicative of the complexity of elements within the program standards or the efforts needed to re- view the program.

Proposed amendments include cate- gorizing standards based on the type of authorization that results from them (preliminary credential, clear credential, or added authorization), which provides the flexibility needed to continually improve standards without having to amend the fee structure or regulations. Fee Structure Amendments for Initial Institutional Approval (IIA) The previous flat fee of $2,000 for IIA covered the re- view of preconditions and Common Standards as well as time consulting with prospective institutions and re- viewing their documentation.

In the previous IIA process, there was a single Commission decision point. However, the current IIA process is now much more rigorous and includes multiple stages for which docu- mentation is submitted for review and action by the Commission. This new, more rigorous review format requires a significant amount of additional staff time. Specifying the fees for specific IIA activities not only recovers the cost of staff time and reviewer’s travel for these extraordinary accreditation activities, but it is more reflective of the various stages of the new system.

Instead of a flat $2,000 fee, the new fee structure more appropriately reflects the work involved in providing assistance to institutions before, during and after Ac- creditation 101, reviewing and approving the eligibility requirements, the Initial Program Review process. Fi- nally, the proposed regulations allow for a $1,000 per site visit team member for initial focused site visits for provisionally approved institutions.

The Commission has historically charged $1,000 per site visit team mem- ber for focused site visits, however the regulations did not explicitly explain the difference between an accred- itation focused site visit for an institution already ap- proved by the Commission and an initial focused site visit for a provisionally approved institution. Fee Structure Amendments for Joint Site Visits At the September 2017 Commission meeting the Commission approved adding a new fee for joint site

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2159 visits with CAEP as a result of changes that CAEP made to their annual dues formula. CAEP’s restructuring of their fees requires the Commission to pay dues that have increased $2,500 per institution requesting a joint visit. Since joint visits are not a requirement of the accredita- tion system for the state of California, the Commission approved adding the $2,500 dues to the cost recovery regulations for institutions choosing to have a joint vis- it.

Deleted Fees The program assessment process has been replaced by program review and streamlined to have only one re- view session. For this reason, fees associated with more than three reviews are no longer necessary and are pro- posed to be deleted from the fee structure. When the fee structure was initially created, an in− kind payment process was allowed as a way to ease the financial burden of IPR. Approved institutions seeking a new program approval could pay in−kind by sending two Board of Institutional Review (BIR) trained mem- bers to the Commission to review two documents each.

The in−kind payment option has not been utilized by very many institutions and staff is proposing eliminat- ing the in−kind payment structure entirely. Determination of Inconsistency/Incompatibility with Existing State Regulations The Commission has determined that the proposed regulation amendments are not inconsistent or incom- patible with existing regulations. There are no other 5 CCR sections that specify cost recovery fees for extra- ordinary accreditation activities associated with Commission−approved programs.

DISCLOSURES REGARDING THE PROPOSED ACTIONS The Commission has made the following initial de- terminations: Local Mandate: These proposed regulations will not impose a mandate on local agencies or school districts that must be reimbursed in accordance with

Part 7 (commencing with

section 17500) of the Government Code. Fiscal Impact: Costs to any local agency or school districts requiring reimbursement pursuant to Government Code

section 17500 et seq. School districts, county offices of education and charter schools that are not currently approved to offer educator preparation programs (i.e. that elect to offer a program(s)) will be required to submit fees to cover the cost of IIA and Initial Program Review (IPR). Currently approved institutions pursuing additional Commis- sion−approved programs will also be subject to IPR fees.

Institutions may avoid all Cost Recovery Fees for Extraordinary Accreditation Activities (IPR, review of late submissions, etc.) provided new programs are not proposed and accreditation activity requirements are followed in a timely manner. Cost or savings to any state agency None. Other non−discretionary costs or savings imposed upon local agencies None. Cost or savings in federal funding to the state None. Significant effect on housing costs None.

Significant statewide adverse economic impact directly affecting businesses including the ability of California businesses to compete with businesses in other states The proposal will not have an impact. Statement of the Results of the Economic Impact Assessment: The Commission concludes that it is: 1) Unlikely that the proposal will create any jobs within the State of California, as there are already 146 institutions operating teacher preparation programs within the state.

As new programs and institutions are approved new jobs may be created, however the Commission is unable to determine whether or not jobs will be created and believes that the number of jobs created would be minimal. 2) Unlikely that the proposal will eliminate any jobs within the State of California as there is currently a teacher shortage and teacher preparation programs are busy preparing teachers to help with the shortage.

Approved programs can avoid cost recovery fees entirely and the fees for new programs and institutions is not large enough to impact the number of jobs an institution has available. 3) Unlikely that the proposal will create any new businesses within the State of California as the regulations apply to currently approved institutions or to institutions seeking approval which must already have regional accreditation and are only expanding their business into teacher preparation. 4) Unlikely that the proposal will eliminate any existing businesses within the State of California as there is currently a teacher shortage and teacher preparation programs are busy preparing teachers to help with the shortage.

Approved programs can avoid cost recovery fees entirely and the fees for

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2160 new programs and institutions is not large enough to impact the ability of an institution to remain open. 5) Possible the proposal would cause the expansion of businesses currently doing business within the State of California. The current and proposed amendments to regulations apply to currently approved institutions or to institutions seeking approval which must already have regional accreditation and are only expanding their business into teacher preparation in California.

The Commission is unable to determine whether or not any significant number of businesses would expand into California. 6) The Commission anticipates that the proposed amendments will benefit the health and welfare of California residents, as summarized in the Objectives and Anticipated Benefits of the proposed regulations above, by providing resources to perform the Commission’s statutorily mandated accreditation duties, thereby ensuring high quality educator preparation for the instruction of California K−12 public school students.

The proposed regulations will promote fairness and prevent discrimination by specifying that the cost recovery fees apply to all institutions offering or proposing to offer Commission−approved programs, regardless of agency type. The proposed regulations will also increase openness and transparency by clarifying the cost recovery fees associated with IIA, new program review and accreditation activities in excess of the regularly scheduled data reports, document reviews, and accreditation site visits.

The Commission does not anticipate that the proposed regulations will result in the protection of worker safety, or the environment, the prevention of social inequity or an increase in openness and transparency in business. Cost impacts on a representative private person or business Cost impacts to a representative business would be minimal. Non−Commission approved private/indepen- dent education entities that elect to offer a program(

s) will be required to submit fees to cover the cost of IIA and IPR. Currently approved institutions pursuing addi- tional Commission−approved programs will also be subject to IPR fees. Institutions may avoid all Cost Re- covery Fees for Extraordinary Accreditation Activities (IPR, review of late submissions etc.) provided new programs are not proposed and accreditation activity re- quirements are followed in a timely manner. The Com- mission is not aware of any cost impacts that a represen- tative private person would necessarily incur in reason- able compliance with the proposed action.

Business Report The proposal does not require a report to be made by any businesses. Effect on Small Business The proposed regulations will not have a significant adverse economic impact upon small business. The proposed regulations apply only to institutions electing to offer Commission−approved and accredited educa- tor programs or existing Commission−approved educa- tional entities that have not met the requirements of the Accreditation System.

Considerations of Alternatives The Commission must determine that no reasonable alternative it considered or that has otherwise been identified and brought to its attention would be more ef- fective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost−effective to affected private per- sons and equally effective in implementing the statuto- ry policy or other provision of law.

The Commission in- vites interested persons to present statements or argu- ments with respect to alternatives to the proposed regu- lations during the written comment period or at the pub- lic hearing. CONTACT PERSON/FURTHER INFORMATION General or substantive inquiries concerning the pro- posed action may be directed to Kathryn Polster by tele- phone at (916) 445−0229, by mail at Commission on Teacher Credentialing, 1900 Capitol Avenue, Sacra- mento, CA 95811, or by email to Kathryn Polster ( kpolster@ctc.ca.gov) or Michelle Bernardo (mbernardo@ctc.ca.gov).

General question inquiries may also be directed to the addresses mentioned above. Upon request, a copy of the express terms of the pro- posed action and a copy of the Initial Statement of Rea- sons will be made available. This information is also available on the Commission’s website at http://www.ctc.ca.gov/ notices/rulemaking.html. In ad- dition, all the information on which this proposal is based is available for inspection and copying.

A V AILABILITY OF STATEMENT OF REASONS AND TEXT OF PROPOSED REGULATIONS The entire rulemaking file is available for inspection and copying throughout the rulemaking process at the Commission office at the above address. As of the date

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2161 this notice is published in the Notice of Register, the rulemaking file consists of the Notice of Proposed Rulemaking, the proposed text of regulations, the Initial Statement of Reasons, and an economic impact assessment/analysis contained in the Initial Statement of Reasons. Copies may be obtained by contacting Kathryn Polster or Michelle Bernardo at the address or telephone number provided above.

MODIFICATION OF PROPOSED ACTION If the Commission proposes to modify the actions hereby proposed, the modifications (other than non− substantial or solely grammatical modifications) will be made available for public comment for at least 15 days before they are adopted. A V AILABILITY OF FINAL STATEMENT OF REASONS The Final Statement of Reasons is submitted to the Office of Administrative Law as part of the final rule- making package, following the conclusion of the public hearing. Upon its completion, copies of the Final State- ment of Reasons may be obtained by contacting Kathryn Polster at (916) 445−0229.

A V AILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Rulemaking, the Initial Statement of Reasons, and the text of the regula- tions can be accessed through the Commission’s web- site at http://www.ctc.ca.gov/notices/rulemaking.html. TITLE 8. DEPARTMENT OF INDUSTRIAL RELATIONS OFFICE OF SELF−INSURANCE PLANS Workers’ Compensation — Self−Insurance Plans (Title 8, California Code of Regulations, Sections 15203.2, 15203.11, 15251, and 15430) NOTICE IS HEREBY GIVEN that the Acting Di- rector (“Director”) of the Department of Industrial Re- lations (“Department”) proposes to add a new

section 15203.11 and to amend sections 15203.2 and 15251 of Title 8 of the California Code of Regulations, for pur- poses of implementing recent amendments to Labor Code

Section 3702.2(a). Those amendments require the Director to obtain detailed information needed to evalu- ate the administrative costs, expenditures, solvency, and performance of public self−insured employer workers’ compensation programs. The Director also proposes to make nonsubstantive changes to

section 15430 to bring that

section into conformity with other recent statutory and regulatory amendments. PUBLIC HEARING The Department will hold a public hearing at 10:00 a.m. on January 23, 2019, at 1515 Clay Street, Con- ference Room 11 (2nd Floor), Oakland, California 94612. The hearing room is wheelchair accessible. At the hearing, any person may present statements or argu- ments orally or in writing relevant to the proposed ac- tion described in the Informative Digest. The Depart- ment 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.

WRITTEN COMMENT PERIOD Any interested person, or his or her authorized repre- sentative, may submit written comments relevant to the proposed regulatory action to the Department. The written comment period closes at 5:00 p.m. on January 23, 2019. The Department will only consider comments received at the Office of Self Insurance Plans (“OSIP”) by that time.

Submit comments to: Lyn Asio Booz, Chief Office of Self Insurance Plans 11050 Olson Drive, Suite 230 Rancho Cordova, CA 95670 Comments may also be submitted prior to the close of the written comment period by e−mail to OSIPRulemaking@dir.ca.gov or by fax, to the attention of Lyn Asio Booz, at (916) 464−7007. AGENCY CONTACTS Inquiries concerning the proposals may be directed to: Primary Contact: Lyn Asio Booz, Chief Office of Self−Insurance Plans Department of Industrial Relations (916) 464−7000

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2162 Back−up Contact: John Cumming, Special Counsel Office of the Director Department of Industrial Relations (415) 486−2038 Inquiries about the rulemaking, including nonsub- stantive inquiries, may also be directed to the following email address: OSIPRulemaking@dir.ca.gov. AUTHORITY AND REFERENCE Labor Code Sections 55 and 3702.10 authorize the Director to adopt, amend, and repeal regulations rea- sonably necessary to implement and make specific the provisions of

Chapter 2 of Division 1 of the California Labor Code and to carry out the purposes of

Article 1 (commencing with

Section 3700) of

Chapter 4 of Divi- sion 4 of the California Labor Code. The proposed regu- lations implement, interpret and make specific the pro- visions of subdivision (

a) of

Section 3702.2 of the La- bor Code, as amended by

Section 18 of Statutes of 2012,

Chapter 363 (SB 863). INFORMATIVE DIGEST AND POLICY STATEMENT OVERVIEW Labor Code

section 3700 requires every employer in California other than the State to secure the payment of workers’ compensation for injured workers by either (1) being insured against liability to pay compensation by one or more insurers duly authorized to write work- ers’ compensation insurance in this state, or (2) by se- curing from the Director a certificate of consent to self− insure.

A certificate of consent to self−insure may be se- cured either as an individual employer or as one em- ployer in a group of employers, and is contingent upon furnishing proof satisfactory to the Director of the em- ployer’s ability to self−insure and pay any compensa- tion that may become due to its employees. Subdivision (

c) of

Section 3700 expressly extends the opportunity to self−insure to “any county, city, city and county, munic- ipal corporation, public district, public agency, or any political subdivision of the state, including each mem- ber of a pooling arrangement under a joint exercise of powers agreement[.]” Labor Code Sections 3700.1 through 3705 establish criteria for securing, maintaining, and revoking certifi- cates to self−insure, as well as requirements for admin- istrative oversight by the Director.

The Self−Insurance Plan regulations at sections 15201 through 15499.5 of Title 8, set forth these criteria, requirements, and related procedures in detail, and delegate much of the Direc- tor’s authority to manage self−insurance programs to the Department’s Office of Self−Insurance Plans (“OSIP”), headed by a Chief. The statutes and regulations treat private self−insured employers and public self−insured employers different- ly in certain respects.

The most significant distinction is that private self−insured are required to post collateral to secure their potential liability for administering and paying workers’ compensation claims, while public self−insured employers are not subject to this require- ment. In addition, the Self−Insurers’ Security Fund (SISF), established pursuant to Labor Code Sections 3740−3747, is available to assume the liabilities of pri- vate self−insured employers who default on their work- ers’ compensation obligations or become insolvent.

However, neither the SISF nor any other entity is re- sponsible for the workers’ compensation claim obliga- tions of a public self−insured employer who becomes insolvent. Labor Code

Section 3702.2(

a) requires all self− insured employers to “file a self−insurer’s annual report in a form prescribed by the [D]irector.” Historically, the information in these reports has been used, among other things, to help determine the amount of security (i.e. collateral) that should be posted by private self−insured employers, and to prepare aggregate summaries of all self−insured employer liabilities, including separate summaries for public and private self−insured employ- ers. SB 863, a landmark workers’ compensation reform measure adopted by the Legislature in 2012, added the following language to Labor Code

Section 3702.2(a). “Public self−insured employers shall provide detailed information as the director determines necessary to evaluate the costs of administration, workers’ compensation benefit expenditures, and solvency and performance of the public self−insured employer workers’ compensation programs, on a

schedule established by the director. The director may grant deferrals to public self−insured employers that are not yet capable of accurately reporting the information required, giving priority to bringing larger programs into compliance with the more detailed reporting.” SB 863 also required the Department’s Commission on Health and Safety and Workers’ Compensation to examine the public self−insured program in 2013 and publish a report and recommendations addressing the costs, solvency and performance of public self−insured workers’ compensation programs, and provisions in the event of insolvencies. (§ 19 of SB 863, adopting Labor

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2163 Code

Section 3702.4, with an automatic repealer effec- tive January 1, 2015.)1 The resulting report, Examina- tion of the California Public Sector Self−Insured Work- ers’ Compensation Program (Bickmore Group, Octo- ber 2014) (“Bickmore Report”), posted online at https://www.dir.ca.gov/chswc/Reports/2014/Public_ Sector_Self_Insured_WC.pdf, included findings and recommendations used in the development of these pro- posals.

A subsequent report, Proposed Workers’ Com- pensation Data Elements for Submission by California Self−Insured Public Entities and Self−Insurance Joint Powers Authorities (Bickmore Group, June 2016) (“Bickmore Data Element Report”), posted at https://www.dir.ca.gov/osip/pubandforms.htm, fol- lowed by public forums and a pilot study (noted below under “Public Discussion of Proposals”) provided more specific input on the reporting requirements addressed in these proposals and their cost impacts. Proposed Amendments to OSIP regulations: In order to implement the 2012 amendment to Labor Code

Section 3702.2(a), the Director proposes to amend

section 15203.2, add a new

section 15203.11, and amend

section 15251 of Title 8 in the following re- spects. The Director also is proposing nonsubstantive changes to

section 15430 as set forth below.

Section 15203.2: This section, entitled “Continuing Financial Capacity for Individual Private Self− Insurers,” will be amended by deleting subsection (b), pertaining to joint powers authorities (“JPAs”), and in- corporating the provisions of that subsection into a new

section 15203.11, as outlined below. Existing subsec- tions (

c) and (

d) will be redesignated as subsections (

b) and (

c) respectively.

Section 15203.11 [new]: This proposed new

section is entitled “Continuing Financial Capacity for Public Self−Insurers.” Subsection (

a) will require each public self−insurer holding an active or revoked Certificate of Consent to Self−Insure to file an annual report on demo- graphic data and a

summary of the financial condition of its workers’ compensation program on a new Form P−1 or in a similar format that includes Form P−1’s data elements. Subsection (

b) is a revised version of the current lan- guage of subsection (

b) of

section 15203.2. This new subsection will require JPAs holding an active or re- voked Certificate of Consent to Self−Insure to file an annual report on a new Form J−1 or in a similar format that includes Form J−1’s data elements. This subsection will require JPAs to report demographic data and identi- fy whether they provide primary or excess workers’ compensation coverage for their members, both of which are new requirements for JPAs. It will also carry over the existing requirement for JPAs to submit a cur- rent, certified, independently audited financial state- ment, complete with all notes and schedules, if available. Subsection (

d) specifies that the financial informa- tion in these reports must be based on the most recent certified, independently audited financial statement, if available. However, if the most recent report is over three years old or no such report is available, then the in- formation must be based on the entity’s most recent fi- nancial report by an independent Certified Public Ac- countant. If that type of report also is unavailable, then the entity will be required to specify the source of infor- mation for the report, including the name and contact information for the preparer or custodian of the source document.

The proposed new Form P−1 is divided into four sec- tions: Part A. “General” requests four pieces of identi- fying information. Part B. “Employer Profile” requests Operating Expenditures, Location and Population, type of Workers’ Compensation claims administration, em- ployee demographics, additional breakdowns for edu- cational employers, wages and salaries and benefit in- formation.

Part C “Annual Financial

Summary Report” requests information about the employer’s most recent audited statement, its workers’ compensation liabili- ties, and its estimated future liabilities; and Part D “Bal- ance Sheet and Statement of Revenues and Expenses for Workers’ Compensation Program” covers assets, li- abilities, fund balances, income, expenses, and other re- lated information, including the employer’s net posi- tions at the beginning and end of the reporting period. Finally, the form must be signed and identify by name and title the person who completed the form plus the person attesting to its accuracy.

The proposed new Form J−1 covers the same topics and questions as Form P−1, except that Part B is entitled JPA Profile and includes additional questions regarding Joint Powers Authority members who may be excluded from the financial statement while omitting questions on how workers’ compensation activities are budgeted and accounted for.

Section 15251: This

section governs self−insurer an- nual reports. In subsection (c), which sets forth require- ments for public self−insurer annual reports, a new paragraph (4) will be added, requiring the inclusion of Aggregate Claims Information in or with these reports. The new subsection specifies that claims information is 1 SB 863 addressed several aspects of the workers’ compensation system, most notably creating Independent Medical Review and Independent Bill Review to greatly curtail litigation costs and de- lays, while at the same time increasing benefit amounts paid to in- jured workers.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2164 to be provided for the current fiscal year, for each of past five fiscal years, and for all older claims. The required information includes the numbers of claims, costs bro- ken down into three categories (disability benefits, medical costs, and legal and loss adjustment expenses paid), plus estimated future liabilities. The new subsec- tion also specifies that the claims information may be submitted electronically or by hard copy that includes the same data elements required by annual report Form AR−2.

Section 15430: This

section authorizes the Director to initiate an investigation or hold a hearing on enumer- ated types of disputes or appeals. Three nonsubstantive amendments are proposed for this section. In subsec- tion (a), the reference to Labor Code

Section 3701.5(

g) will be changed to Labor Code

Section 3701.5(f), to conform with a 2012 statutory amendment which redes- ignated former subdivision (

g) as subdivision (f). In subsections (

b) and (c), the title “Manager” will be changed to “Chief” to conform with the current title of the head of OSIP. Anticipated Benefits: These regulatory amendments are designed to carry out Labor Code

Section 3702.2(a)’s objective of en- abling the Director “to evaluate the costs of administra- tion, workers’ compensation benefit expenditures, and solvency and performance of the public self−insured employer workers’ compensation programs[.]” In par- ticular, the proposals are designed to make public self− insurer workers’ compensation programs more trans- parent as to their financial solvency and their claims benefits and loss adjustment expenses.

Ideally, the availability of this information will result in the Direc- tor and the state being better prepared to forestall or ameliorate situations in which the continuing availabil- ity of workers’ compensation benefits is jeopardized by the insolvency of a self−insured public employer.

This is especially important because, unlike insolvent in- sured employers and insolvent self−insured private em- ployers, whose claims are covered by the California In- surance Guarantee Association or Self−Insurer’s Secu- rity Fund respectively, there is no backstop to pay claims when a public self−insured employer becomes insolvent.

The proposals will benefit the health and wel- fare of California residents and workers by promoting openness and transparency in government, thereby helping to ensure the viability and integrity of public self−insured workers’ compensation programs and the Department’s oversight, so that eligible public employ- ers continue to have the option to self−insure for work- ers’ compensation, and their injured workers are cov- ered for their claims.

Determination of Inconsistency or Incompatibility with Existing State Regulations: The Director has determined that the proposals are not inconsistent or incompatible with existing regula- tions. Certain public entities are required to file finan- cial statements annually with other entities such as the State Controller’s Office, the Department of Education, or county auditors.

However, as noted in the Bickmore Report, accounting and reporting methodologies are in- consistent, often do not segregate workers’ compensa- tion claims benefits and claims administration data from other lines of liability or insurance coverage, and overall do not provide information needed to evaluate the solvency of public self−insured programs. These proposals, including the proposed reporting forms, were developed in consultation with stakeholders to provide the Director with the data needed to evaluate these programs, as mandated by SB 863’s amendments to Labor Code

Section 3702.2(a). Comparable Federal Statutes and Regulations: None. Technical, Theoretical or Empirical Studies, Reports or Documents: The Department relied upon the following studies in proposing this regulatory action. 1. Examination of the California Public Sector Self−Insured Workers’ Compensation Program (Bickmore Group, October 2014) (“Bickmore Report”), posted online at https://www.dir.ca.gov/ chswc/Reports/2014/Public_Sector_Self_Insured _WC.pdf . 2.

Proposed Workers’ Compensation Data Elements for Submission by California Self−Insured Public Entities and Self−Insurance Joint Powers Authorities (Bickmore Group, June 2016) (“Bickmore Data Element Report”), posted online at https://www.dir.ca.gov/osip/pubandforms.htm. 3. A pilot study conducted by OSIP in the spring of 2017 in which four public self−insured employers with stand−alone programs and six JPAs submitted data on draft versions of the reporting forms contemplated by these proposals.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2165 DISCLOSURES REGARDING THE PROPOSED ACTION The Director has made the following initial determi- nations: Costs or Savings to State Agencies: The Department has and will continue to incur costs for the development, implementation, and administra- tion of the new reporting requirements. These are part of the overall cost of administering the public self− insured program and are borne by the Workers’ Com- pensation Administration Revolving Fund, pursuant to Labor Code

Section 3702.5. These proposals also impose costs on three self− insured state−level agencies, the Regents of the Univer- sity of California, Hastings College of Law, and the Cal- ifornia State University, insofar as they will be required to provide data to their private third party administra- tors to fulfill the added reporting responsibilities.

These costs are estimated at $200 each ($600 aggregate) in the first year, and $100 each ($300 aggregate) in subse- quent years, based on the analysis below under the sec- tion “Other Nondiscretionary Costs or Savings Im- posed on Local Agencies or School Districts” and specifically its subsection on “Public Employers Using TPAs.” No costs or savings to other state agencies will result as a consequence of the proposed action inasmuch as state agencies are not subject to the insurance require- ments of Labor Code

Section 3700 (in effect making them permissibly uninsured), and no other state agen- cies participate in the public self−insured program. Mandates on Local Agencies or School Districts: The proposals impose no mandates on local agencies or school districts, since they apply only to public agen- cies who self−insure their workers’ compensation obli- gations, and no public agency is required to self−insure. Cost or Savings to Local Agencies or School Districts Required to be Reimbursed: None.

Other Nondiscretionary Costs or Savings Imposed on Local Agencies or School Districts: Public employers who choose to self−insure will in- cur costs complying with the proposed new reporting requirements, which include providing financial and demographic information about the agencies or dis- tricts themselves as well as more specific workers’ compensation claims and administration information. The nature and extent of these costs depends on how the agency administers its workers’ compensation program.

Self−insured public agencies may have their own program (referred to here as a “stand−alone” employer or program), or they may band together with other agen- cies to operate their program through a Joint Powers Authority (“JPA”). In addition, existing law requires each program to use separately certified claims admin- istrators to handle their workers’ compensation claims. An agency or JPA with its own properly certified per- sonnel and system may operate an in−house or “self− administered” program.

More frequently, however, an agency or JPA contracts with an approved Third Party Administrator (“TPA”) to operate its program. Program administrators will have direct responsibility for sub- mitting the required reports to OSIP. Agencies and JPAs that contract with TPAs to administer their programs, and members of JPAs will not have direct reporting re- sponsibilities. However, they will have to provide data about their agencies that is needed for the reports.

Employers and JPAs with self−administered programs: The 32 public employers and 8 JPAs operating self−administered programs have direct reporting responsibilities under the proposals, and will incur start−up costs for software coding changes and internal systems changes to facilitate the reporting of required data. 2 Based on a projected cost of $100 per hour (either for internal personnel costs or for a third−party vendor), the Director estimates that each of these programs will incur anywhere from five to 24 hours in start−up costs (i.e. $500 to $2400), depending on the systems used.

Because all of the information being reported should be readily available from existing sources, no agency should have to create a new system to obtain and report the required information. The Director estimates that in the first year of opera- tion under these proposals, the 32 stand−alone employ- er programs will incur an additional $400−700 in costs for collecting and reporting claims data (2−5 hours @ $100), demographic data (1 hour @ $100), and finan- cial data (1 hour @ $100).

The 8 JPAs will incur those same costs, but will also need to collect demographic data from each member agency that belongs to the JPA at an estimated cost of $100 (= 1 hour) per member agency. Collectively, these 8 JPAs represent 384 mem- ber agencies, which makes the average cost for these JPAs to collect and report demographic data from their members $4800 (= 384 x $100 ÷ 8). Once software and system changes are made, the pro- grams will be able to generate report data from their own records automatically.

The responsibility to collect and report data will continue in subsequent years, but the Director estimates that the process will be more rou- tine and the time requirements cut in half, i.e. $1−250 (=1−2.5 hours) for claims data, $50 (= .5 hour) per enti- 2 OSIP records provided a precise count of the numbers of public employers, JPAs, JPA members, and TPAs listed in these esti- mates.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2166 ty for demographic data, and $50 (= .5 hour) for finan- cial data. For the 32 stand−alone employers, this projects to an annual cost of $200−$350, and for the 8 JPAs, an average annual cost of $2550−$2700 ($1−250 + $50 + $2400).

Based on the foregoing estimates, the overall costs for employers and JPAs with self−administered programs are as follows: First year: Individual Aggregate Standalone employers — $ 900−$3,100 (x 32) $28,800−$99,200 Standalone JPAs — $5,600−$7,800 (x 8) $44,500−$62,400 Total $73,300−$161,600 Subsequent years: Individual Aggregate Standalone employers — $ 200−$350 (x 32) $ 6,400−$11,200 Standalone JPAs — $2,550−$2,700 (x 8) $20,400−$21,600 Total $26,800−$32,600 Public Employers Using TPAs: The 586 self−insured public employers and JPAs3 who contract with TPAs to administer their workers’ compensation programs will not have direct reporting responsibilities under these proposals, but will still incur costs in providing general financial and demographic data about themselves to the TPAs.

In addition, the 4,442 agencies that participate in JPAs will have to provide the same data about themselves to their JPAs, so that the JPA in turn can either forward that data to the TPA, if the JPA contracts with a TPA, or include it in the JPA’s report to OSIP, if the JPA self−administers its workers’ compensation program. The same projected time and cost estimates for gath- ering and reporting data apply to these agencies, but on- ly with respect to general financial data and demo- graphic data.

In the first year, the projected cost for each of these agencies is $100 (= 1 hour) for financial data and $100 (= 1 hour) for demographic data, or a total of $200. The Director again estimates that in subsequent years, this time commitment will be cut in half, i.e. $50 (= .5 hour) for financial data and $50 (= .5 hour) for de- mographic data, or a total of $100.

Based on these estimates, the overall costs for this set of agencies (586 agencies providing information to TPAs and 4,422 JPA members providing information to JPAs) are as follows: Individual Aggregate First year: $ 200 (x 5008) $1,101,600 Subsequent years: $ 100 (x 5008) $ 500,800 Costs or Savings in Federal Funding to the State: None.

Impact on Business or Directly Affecting Business, including Ability to Compete: The Director has made an initial determination that the proposals will not have a significant, statewide ad- verse economic impact directly affecting business, in- cluding the ability of California business to compete with businesses in other states. While these proposals will result in minor cost increases for self−insured pub- lic employers, the option of obtaining private workers’ compensation on the open market is generally far more costly than self−insurance.

Cost Impact on Repr esentative Private Persons or Businesses: The private sector impact of these proposals is limit- ed to the 31 private third party administrators (“TPAs”) who contract with self−insured public employers, in- cluding JPAs, to administer their claims. Existing law requires self−insured employers to use separately certi- fied claims administrators to handle their workers’ compensation claims, and most public self−insured em- ployers contract with private TPAs for this service.

The TPAs will have most of the required financial data about the employer’s workers’ compensation claims and lia- bilities, and will do the actual reporting of information required by these regulations, with possibly some of the costs being passed on to their contracting client public entities. These TP As will incur the same start−up and continu- ing costs that are projected above for self−administered employers and JPAs.

Start−up costs for software coding changes and internal systems changes to facilitate the reporting of required data are again estimated at $100 per hour (for internal personnel or third−party vendor), with each TPA incurring anywhere from five to 24 hours in costs (i.e. $500 to $2400), depending on the systems used.

The TPAs will also incur first year costs of $200−500 (= 2 to 5 hours) per represented entity for identifying and reporting separate claim data for each of those entities, $100 (= 1 hour) per entity for collecting additional financial data from those entities, plus $100 (= 1 hour) per employer to collect demographic data for 3 These entities consist of 342 active stand−alone public employ- ers, 165 stand−alone public employers with revoked certificates but ongoing claim responsibilities, and 82 JPAs.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2167 each of the 4,422 constituent employers in those enti- ties.4 The estimated total aggregate costs in the first year for the 31 TPAs is from $634,400 to $870,000, which averages out to a range of $20,464.52 to $28,064.52 per TPA, although an individual TPA’s costs may be higher or lower depending on the number of public employers represented.5 Once software and system changes have been made, TPAs will be able to generate report data from their own records automatically.

However, they will continue to incur costs associated with collecting financial, claims, and demographic data for or from the represented enti- ties and constituent employers. The Director estimates that the collection of this data will become more routine and require only half as much time.

Using the specific estimates of $50 (=.5 hour) for financial data and $100−250 (=1 to 2.5 hours) for claims data for each of the 589 represented entities, plus $50 (=.5 hour) for de- mographic data for each of the 4,422 constituent em- ployers, the estimated aggregate annual cost for the 31 TPAs ranges from $309,450 to $397,800, or an average individual cost of $9,982.26 to $12,832.26. 6 Results of the Economic Impact Assessment: The Director has made initial determinations that these proposals will not (1) create or eliminate jobs within California, (2) create new business or eliminate existing businesses within California, or (3) affect the expansion of businesses currently doing business with- in California.

As noted more fully in the

section entitled “Anticipated Benefits” above, these proposals should benefit the health and welfare of California residents by requiring greater transparency for public self−insured employers, allowing regulators and the public to better assess the solvency of these employers and potential risk for defaulting on their responsibilities to injured workers. Business Reporting Requirements: The proposals revise and expand reporting require- ments for self−insured public employers and for private businesses that may administer their workers’ compen- sation programs. These proposals are being made pur- suant to the directive in Labor Code

Section 3702.2(a), as amended by SB 863. Per this statutory directive, the Director believes that these proposals and their applica- bility to private TPAs that administer workers’ compen- sation programs for self−insured public employers, are necessary for the health, welfare, and safety of the peo- ple of the state. Impact on Housing Costs: None. Small Business Impact: The proposals affect small businesses only insofar as any of the 31 TPAs who contract with public self− insured employers are “small businesses” within the meaning of Government Code

Section 11342.610. The proposals impact these businesses by increasing their reporting responsibilities on behalf of client public agencies. The anticipated costs are shown in the

section above entitled “Cost Impact on Representative Private Persons or Businesses”. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5, subdivision (a)(13), the Director must deter- mine that no reasonable alternative that has been con- sidered by the Department or that has otherwise been identified and brought to the Department’s attention 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 affected private persons than the proposed action, or would be more cost−effective to affected private persons and equally effective in imple- menting the statutory policy or other provision of law. 4 This figure consists of the estimated 3,915 JPA member employers, plus the 507 stand−alone employers identified in footnote 3 above. 5 The calculations used to arrive at these figures are as follows: $5−2400 start−up costs per TPA x 31 TPAs = $15,500−$74,400 $2−500 for claim data per represented entity x 589 entities = $117,800−$294,500 $100 for financial data per represented entity x 589 entities = $ 58,900 $100 for demographic per constituent employer x 4,422 = $ 442,200 Total $634,400−$870,000 Average (= Total ÷ 31) = $20,464.52−$28,064.52 6 The calculations used to arrive at these figures are as follows: $1−250 for claim data per represented entity x 589 entities = $ 58,900−$147,250 $50 for financial data per represented entity x 589 entities = $ 29,450 $50 for demographic per constituent employer x 4,442 = $ 221,100 Total $309,450−$397,800 Average (= Total ÷ 31) = $9,982.26−$12,832.26

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2168 The Bickmore Report, on which this rulemaking re- lies, identified potential alternatives to more state over- sight for public self−insured employer’ workers’ com- pensation programs.

These alternatives were: (1) main- taining the status quo, (2) requiring public self−insured employers to make security deposits similar to those re- quired for private self−insured employers to cover po- tential workers’ compensation claim liabilities in the event the employer becomes insolvent; and (3) creating a public entity security fund supported by assessments and security deposits, similar to the Self−Insurers’ Se- curity Fund covering private self−insured employers. None of these alternatives is reasonable or adequate or authorized by existing law.

Maintaining the status quo would require the Director to ignore the mandate of La- bor Code

Section 3702.2(a), which these proposals are designed to implement. The other alternatives would require additional legislation and be far more costly for public self−insurers. To date, no other reasonable alternative has been brought to the attention of the Director that would be as effective as and less burdensome to affected persons than the proposed action. The Director invites interest- ed persons to present statements or arguments with re- spect to alternatives to the proposals at the scheduled hearing or during the written comment period.

PUBLIC DISCUSSION OF PROPOSALS Early drafts of the text of these proposals were made available for public review and comment during public forums held on October 13, 2016, and March 10, 2017. Several public self−insurers and JPAs also participated in a pilot study between April and June 2017. Input from the forums and pilot study assisted the Department in drafting and refining the text of these proposals and the contents of the related forms. The pilot study also as- sisted the Department in determining the cost impacts of the new reporting requirements.

A V AILABILITY OF INFORMATION PERTAINING TO THE PROPOSED ACTION The Director will have this Notice, the proposed text, the Initial Statement of Reasons, and the complete rule- making file available for inspection and copying during regular business hours throughout the rulemaking process at the following location: Office of Self−Insurance Plans Department of Industrial Relations 11050 Olson Drive, Suite 230 Rancho Cordova, CA 95670 Website: The principal rulemaking documents, including this Notice, the Initial Statement of Reasons, and the text of the proposed regulations may be accessed through the Department’s website at www.dir.ca.gov/Rulemaking/ DIRProposed.html.

Availability of Changed or Modified Text: After holding the hearing and considering all timely and relevant comments received, the Director may adopt the proposed regulations substantially as de- scribed in this notice. If modifications are proposed that are sufficiently related to the originally proposed text, the modified text (with changes clearly indicated) will be made available to the public for at least 15 days be- fore the regulations are adopted as revised. Any such modifications will also be posted on the Department’s website.

Requests for copies of any modified regula- tions may be sent to the attention of either of the contact persons listed above. Written comments on the modi- fied regulations will be accepted for 15 days after the date on which they are made available. Availability of the Final Statement of Reasons and the Rulemaking File: Upon completion, the Final Statement of Reasons will be available and the entire rulemaking file may be obtained from the Office of the Self−Insurance Plans at the address indicated above. TITLE 11.

DEPARTMENT OF JUSTICE The Department of Justice (the Department) propos- es to amend sections 4200 through 4240, of Title 11, Di- vision 5,

Chapter 8, of the California Code of Regula- tions (CCR) concerning the Dealer Record of Sale En- try System (DES) after considering all public com- ments, objections, and recommendations regarding the proposed action. PUBLIC HEARING The Department has not scheduled a public hearing on this proposed regulatory action. However, the De- partment will hold a hearing if it receives a written re- quest for a public hearing from any interested person, or his or her authorized representative, no later than 15 days before the close of the written comment period.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2169 WRITTEN COMMENT PERIOD Any interested person, or his or her authorized repre- sentative, may submit written comments relevant to the proposed regulatory action. The written comment peri- od closes at 5:00 p.m. on January 23, 2019. Only com- ments received by the Department by that time will be considered. Written comments must be submitted to: Jessie Romine Bureau of Firearms Division of Law Enforcement Department of Justice P.O.

Box 160487 Sacramento, CA 95816−0487 Phone: 916−227−4217 Email: DESregulations@doj.ca.gov AUTHORITY AND REFERENCE Authority: Penal Code sections 28105, 28155, 28160, 28175, 28205, 28225, 30352, and 30370. Reference: Penal Code sections 16190, 26815, 27540, 28105, 28155, 28160, 28175, 28205, 28210, 28215, 28220, and 30395.

INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Penal Code sections 28105 and 28155 authorize the Department to develop standards for electronic equip- ment for the electronic transmission of firearm purchaser/transferee/loanee (purchaser) information to the Department by California Firearm Dealers (dealers) necessary for the Department to perform a background check of the purchaser. Penal Code

section 28160 au- thorizes the Department to write regulations regarding the manner with which the purchaser’s right thumbprint shall be provided. Penal Code sections 28175, 28205, 28210 and 28225, authorize the Department to pre- scribe how and what information a dealer collects re- garding the sale/transfer/loan of a firearm, the form in which the information is to be provided, and the fees that are to be collected.

In addition, Penal Code sections 30352 and 30370 au- thorize the Department to develop a process to electron- ically approve the sale or transfer of ammunition that is processed through an ammunition vendor. The Depart- ment can only approve an ammunition sale or transfer after the ammunition vendor has collected an ammuni- tion purchaser’s or transferee’s personal information in order to conduct a background check to ensure the indi- vidual is not prohibited by either state or federal law from possessing ammunition.

Furthermore, Penal Code sections 30352 and 30370 authorize the Department to adopt regulations regarding the manner in which an am- munition purchaser’s or transferee’s personal informa- tion is to be collected. ANTICIPATED BENEFITS OF THE PROPOSED REGULATION Revising the existing regulations will provide better guidance to firearms dealers on how to enter data into the DES to reduce the number of incomplete Dealer Record of Sale (DROS) transactions, and to ensure the accurate submission of information. The regulations will also describe the consequences to dealers for not completing DROS transactions.

Further, the regula- tions will provide clear direction on special circum- stances that arise when capturing a purchaser’s right thumbprint for a background check. Currently, when dealers start a DROS transaction in the DES, they do not always complete the process by submitting firearm delivery information. This is prob- lematic because the Department does not know if the purchaser actually obtained a firearm, or if the transac- tion was intended to be corrected or cancelled. If the De- partment does not have information about a firearm purchase, sale or transfer, public safety may be at risk.

It is also costly for the Department to make several at- tempts to follow up on an incomplete DROS transaction to determine if someone is actually in possession of a firearm. Additionally, existing DES regulations are not appli- cable to ammunition vendors. Ammunition vendors will be required to use the DES to process ammunition purchases, sales and transfers commencing July 1, 2019 as prescribed by Penal Code sections 30352 and 30370.

SUMMARY OF THE EFFECT OF THE PROPOSED REGULATIONS The regulations will ensure firearms dealers enter the correct information into DES to reduce the number of incomplete DROS transactions and allow for accurate submission of information. In addition, the regulations will require firearms deal- ers to submit the necessary firearm delivery informa- tion to the Department. This allows the Department to receive notification on whether or not a firearm has been delivered to an individual. These regulations provide ammunition vendors with instruction on how to use DES, which is necessary to process the sale of ammunition.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2170 EV ALUATION OF INCONSISTENCY/INCOMPATIBILITY WITH EXISTING STATE REGULATIONS Pursuant to Government Code

section 11346.5, sub- division (a)(3)(D), the Department must evaluate whether the proposed regulations are inconsistent or in- compatible with existing state regulations. Pursuant to this evaluation, the Department has reviewed existing regulations pertaining to firearms within CCR Title 11, Division 5 and determined these proposed regulations are not inconsistent or incompatible. The proposed reg- ulations amend the only existing regulations addressing use of the DES by firearms dealers and access to the DES by ammunition vendors.

The use of the DES by ammunition vendors will be addressed in a separate rulemaking. Additionally, these regulations are not du- plicative of existing Penal Code sections, but rather clarify and provide further detail to existing Penal Code sections. COMPARABLE FEDERAL REGULATIONS The proposed action does not differ substantially from an existing comparable federal regulation or statute. DISCLOSURES REGARDING THE PROPOSED ACTION The Department has made the following initial determinations: Mandate on local agencies or school districts: None.

Cost or savings to any state agency: The Department may occasionally lose revenue in the form of lost DROS transaction fees. If a dealer is locked out of its account for failing to complete a DROS transaction, then it can- not conduct business by submitting DROS transactions. If dealers are not making sales, the Bureau is not collect- ing the fee(s). The revenue loss is likely to be temporary until the dealer is in compliance. Cost to any local agency or school district which must be reimbursed in accordance with Government Code sections 17500 through 17630: None.

Other nondiscretionary cost or savings imposed on local agencies: None. Cost or savings in federal funding to the state: None. Significant, statewide adverse economic impact di- rectly affecting business, including the ability of Cali- fornia businesses to compete with businesses in other states: None. The Department has made an initial deter- mination that the action will not have a significant, statewide adverse economic impact directly af fecting business, including the ability of California businesses to compete with businesses in other states.

Any adverse impact arises from statutes requiring a background check and reporting system for firearms and ammuni- tion purchases. Cost impacts that a representative person or business would incur in reasonable compliance with the pro- posed action: If a dealer does not comply with the pro- posed regulations, the dealer could lose revenue. This could occur because if the dealer does not complete the transaction in DROS within the approved 30−day deliv- ery period.

A dealer’s access to the DES will be sus- pended until the DROS transaction has been completed (by either selecting the “deliver gun,” or “cancel” but- ton). During the suspension period, the dealer or its au- thorized associate(

s) or salesperson(

s) will not be able to use the DROS account to sell, transfer, or deliver firearms. If an ammunition vendor does not comply with the proposed regulations, it could lose revenue. If an am- munition vendor fails to establish a DES user account, it will have no mechanism to collect an ammunition pur- chaser’s or transferee’s personal information to submit to the Department. If the Department does not receive this personal information, it will not be able to approve an ammunition purchase or transfer and the ammuni- tion vendor will be unable to sell or process the transfer of ammunition legally.

Significant effect on housing costs: None. Small business determination: This proposed regula- tion may affect small business. If a dealer that is a small business does not comply with the proposed regula- tions, it could lose revenue. This could occur if the deal- er does not complete the transaction in DROS within the approved 30−day delivery period. A dealer’s access to the DES will be suspended until the DROS transaction has been completed (by either selecting the “deliver gun” or “cancel” button). During the suspension period, the dealer(

s) or its authorized associate(

s) or salesper- son(

s) will not be able to use the DROS account to sell, transfer, or deliver firearms. If an ammunition vendor that is a small business does not comply with the proposed regulations by using the DES, it could lose revenue. If an ammunition vendor fails to establish a DES user account, then it has no mechanism to collect an ammunition purchaser ’s or transferee’s personal information to submit to the De- partment.

If the Department does not receive this per- sonal information, the Department will not be able to approve an ammunition purchase or transfer and the ammunition vendor will be unable to sell or process the transfer of ammunition legally. Results of the Economic Impact Assessment/Analysis: The proposed regulations refine a process that is ex- plained in existing regulations and clarify how to obtain

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2171 a purchaser’s thumbprint, the types of DES accounts needed for business, and the consequences for a dealer that does not complete the DROS transaction in DES. In addition, the proposed regulations provide a process for ammunition vendors to create a DES user account. The Department has concluded that amendment of the proposed regulations will not likely:

(1) Create or eliminate jobs within California;

(2) Create new businesses or eliminate existing businesses within California; or

(3) Affect the expansion of businesses currently doing business within California Benefits of the Proposed Amendments: Revising the existing regulations will provide better guidance to firearms dealers on how to enter data into the DES to re- duce the number of incomplete Dealer Record of Sale (DROS) transactions, and to ensure the accurate sub- mission of information. Complete and accurate DROS entries by dealers regarding firearm ownership protects public safety and saves Department resources.

Addi- tionally, expanding the regulation to incorporate am- munition vendors will protect public safety by provid- ing a way for ammunition vendors to report ammuni- tion sales. BUSINESS REPORT In accordance with Government Code sections 11346.5, subdivision (a)(11) and 11346.3, subdivision (d), the proposed regulations do not require a report to be made to businesses or anyone. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5, subdivision (a)(13), the Department must de- termine that no reasonable alternative it considered or that has otherwise been identified and brought to its at- tention 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- sion of law.

CONTACT PERSONS Please direct inquiries concerning the proposed ad- ministrative action to: Jessie Romine Bureau of Firearms Division of Law Enforcement Department of Justice P.O. Box 160487 Sacramento, CA 95816−0487 Phone: 916−227−4217 Email: DESregulations@doj.ca.gov The back−up contact person for these inquiries is: Jacqueline Dosch Bureau of Firearms Division of Law Enforcement Department of Justice P.O.

Box 160487 Sacramento, CA 95816−0487 Phone: 916−227−7614 Email: DESregulations@doj.ca.gov A V AILABILITY OF RULEMAKING FILE INCLUDING THE INITIAL STATEMENT OF REASONS AND TEXT OF PROPOSED REGULATIONS The Department will have the entire rulemaking file available for inspection and copying throughout the rulemaking process. The text of the proposed regula- tions (the “express terms”), the initial statement of rea- sons, and the information upon which the proposed rulemaking is based are available at the DOJ website at http://oag.ca.gov/firearms/regs. Copies may also be ob- tained by contacting Jessie Romine.

A V AILABILITY OF CHANGED OR MODIFIED TEXT After considering all timely and relevant comments received, the Department may amend the proposed reg- ulations substantially as described in this notice. If the Department makes modifications which are sufficient- ly related 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 and accept written comments before the Department amends the regulations. Copies of any modified text will be avail- able on the Department’s website at http://oag.ca.gov/ firearms/regs.

A written copy of any modified text may be obtained by contacting Jessie Romine. A V AILABILITY OF FINAL STATEMENT OF REASONS Upon completion, the final statement of reasons will be available on the Department website at http://oag.ca.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2172 gov/firearms/regs. You may also obtain a written copy of the final statement of reasons by contacting Jessie Romine. A V AILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Action, the Initial Statement of Reasons, and the text of the regulations in underline and strikeout format, as well as the Final Statement of Reasons once completed, are available on the Department website at http://oag.ca.gov/firearms/ regs. TITLE 13.

AIR RESOURCES BOARD NOTICE OF PUBLIC HEARING TO CONSIDER PROPOSED AMENDMENTS TO THE ON−ROAD HEA VY−DUTY DIESEL−FUELED RESIDENTIAL AND COMMERCIAL SOLID WASTE COLLECTION VEHICLES REGULATION TO INCLUDE HEA VY CRANES The California Air Resources Board (CARB or Board) will conduct a public hearing at the time and place noted below to consider approving for adoption the Proposed Amendments to the Solid Waste Collec- tion V ehicle (SWCV) Regulation. DATE: January 24, 2019 TIME: 9:00 a.m.

LOCATION: The Grand 1401 1401 Fulton St., 10th Floor Ballroom Fresno, California 93721 This item will be considered at a meeting of the Board, which will commence at 9:00 a.m., January 24, 2019, and may continue at 8:30 a.m., on January 25, 2019. Please consult the agenda for the hearing, which will be available at least ten days before January 24, 2019, to determine the day on which this item will be considered.

WRITTEN COMMENT PERIOD AND SUBMITTAL OF COMMENTS 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 December 7, 2018. Written comments not physically submitted at the hear- ing must be submitted on or after December 7, 2018, and received no later than 5:00 p.m. on January 22, 2019.

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: Clerk of the Board 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, § 6250 et seq.), your written and oral comments, attachments, and associated contact infor- mation (e.g., your address, phone, email, etc.) become part of the public record and can be released to the pub- lic upon request.

Additionally, the Board requests, but does not re- quire, that persons who submit written comments to the Board reference the title of the proposal in their com- ments to facilitate review. AUTHORITY AND REFERENCE This regulatory action is proposed under the authority granted in California Health and Safety Code, sections 39600, 39601, and 39658. This action is proposed to implement, interpret, and make specific sections 39002, 39003, 39650 through 39675, 43000, 43013, 43018, 43101, 43102, 43104, 43105 and 43700. INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT OVERVIEW (GOV .

CODE, § 11346.5, subd. (a)(3)) Sections Affected: Proposed amendments to Cali- fornia Code of Regulations, title 13, sections 2021, 2021.1, and 2021.2. Proposed adoption of California Code of Regulations, title 13,

section 2021.3. Background and Effect of the Proposed Regulatory Action: Overview The Board approved the SWCV regulation in Sep- tember 2003. The regulation became effective under California law on July 20, 2004. The regulation applies to diesel trucks that haul waste for a fee that have a gross

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2173 vehicle weight rating greater than 14,000 pounds. As of January 1, 2010, all 1960 to 2006 model year diesel en- gines were required to be equipped with the best avail- able control technology to reduce diesel particulate matter (PM) following a phased−in

schedule from 2004 through 2010. Vehicles subject to the SWCV regulation do not currently have reporting requirements. The SWCV regulation was one of several early regulations adopted by CARB to reduce adverse health effects from PM and smog−forming emissions from trucks operat- ing in communities. The Board approved the Truck and Bus regulation in 2008. This regulation applies to nearly all privately or federally owned trucks and buses that operate annually in California, including cranes.

The rule requires vehi- cles to meet PM and oxides of nitrogen (NOx) emis- sions requirements to achieve California’s air quality goals. To comply with the regulation, fleet owners must transition from older higher emitting vehicles to newer lower emitting vehicles through a combination of PM filter retrofits and vehicle replacements starting Janu- ary 1, 2012, and running through January 1, 2023. The regulation was subsequently amended in 2011 and 2014.

The 2014 amendments included a compliance option for heavy cranes to upgrade to 2010 engines at a rate of 10 percent of the crane fleet each year starting in 2018 and did not require further upgrades for those equipped with PM filters. The 2014 amendments were challenged in court on procedural grounds and are be- ing rescinded. At present, heavy cranes face unique circumstances and challenges to be retrofitted or replaced.

CARB staff has worked closely with crane operators, crane manu- facturers, and other organizations to investigate and collect data on specialized crane operations and ulti- mately determined that retrofitting or repowering most specialized cranes was not feasible. Some cranes could not be safely retrofitted with PM filters, and thus CARB granted heavy crane owners annual PM filter exten- sions under the Truck and Bus regulation, until the ex- tensions ended January 1, 2018. These heavy cranes must now be retired or replaced, often at a cost of sever- al hundred thousand dollars.

Beginning January 1, 2020, Senate Bill 1, the Road Repair and Accountability Act (SB 1), requires the Cal- ifornia Department of Motor Vehicles (DMV) to regis- ter diesel vehicles only if they comply with the 2011 Truck and Bus Regulation. Because vehicles subject to the SWCV regulation do not have reporting require- ments, CARB staff cannot distinguish vehicles subject to the SWCV regulation from vehicles subject to the Truck and Bus regulation, and so cannot identify, for the DMV, compliant vehicles that are not subject to SB1 re- quirements.

This issue would potentially cause serious registration delays if not addressed. Current Proposal The proposed amendments would add reporting re- quirements for SWCVs. Specifically, the proposal would clarify the definition of vehicles subject to the SWCV regulation and would require reporting for all fleets that own or operate SWCVs with 1960 to 2006 model year diesel engines to improve enforceability and to avoid delays with California DMV registration starting in 2020.

The proposed amendments would also expand the scope of the regulation to include diesel−fueled on− road single engine heavy cranes (heavy cranes) with a newly added phase−in

schedule to reduce PM and NOx emissions. The proposal would allow sufficient time for crane operators to upgrade equipment without disrupt- ing business operations while meeting crane certifica- tion safety standards and protecting public health. This option would recognize the limited ability to safely up- grade existing cranes and the high cost of replacing this specialized equipment. The proposal would also require heavy crane owners to report fleet information to ensure compliance with the proposed replacement schedule, to take advantage of proposed credits for early action, and to improve enforceability.

CARB may also consider other changes to the sec- tions affected, as listed above, during the course of this rulemaking process. Objectives and Benefits of the Proposed Regulatory Action: The anticipated benefits from the regulatory action include avoiding delays with California DMV registra- tion starting in 2020; improving enforcement effective- ness; allowing sufficient time for heavy crane owners to upgrade equipment without disrupting business opera- tions; and protecting public health.

Ultimately, the amendments will ensure a smooth reporting process and implement a feasible compliance option for heavy cranes that will help California continue to reduce emis- sions and protect public health. There are no additional nonmonetary benefits expected, such as worker safety, as a result of this rulemaking. Comparable Federal Regulations: There are no comparable federal regulations to the proposed amendments. An Evaluation of Inconsistency or Incompatibility with Existing State Regulations (Gov.

Code, § 11346.5, subd. (a)(3)(D)): During the process of developing the proposed regu- latory action, CARB conducted a search of any similar

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2174 regulations on this topic and concluded these regula- tions are neither inconsistent nor incompatible with ex- isting state regulations. MANDATED BY FEDERAL LAW OR REGULATIONS (Gov. Code, §§ 11346.2, subd. (c), 11346.9) The proposed regulatory action is not mandated by federal law or regulations. DISCLOSURES REGARDING THE PROPOSED REGULATION Fiscal Impact/Local Mandate Determination Regarding the Proposed Action (Gov.

Code, § 11346.5, subds. (a)(5)&(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.

Under Government Code sections 11346.5, subdivi- sion (a)(5) and 11346.5, subdivision (a)(6), the Execu- tive Officer has determined that the proposed regulato- ry action would not create costs or savings to any State agency or in federal funding to the State, costs or man- date to any local agency or school district, whether or not reimbursable by the State under Government Code, title 2, division 4,

part 7 (commencing with

section 17500), or other nondiscretionary cost or savings to State or local agencies. Housing Costs (Gov. Code, § 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. Significant Statewide Adverse Economic Impact Directly Affecting Business, Including Ability to Compete (Gov.

Code, §§ 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. Results of The Economic Impact Analysis/ Assessment (Gov.

Code, § 11346.5, subd. (a)(10)): The proposed amendments to the SWCV regulation do not qualify as major regulations, because the costs or benefits are less than $50 million in any 12−month peri- od from implementation to 12 months post full imple- mentation. The amendments are primarily expected to provide economic relief to the affected heavy crane fleets compared to the Truck and Bus regulation as amended in 2011.

Accordingly, the proposed amend- ments will not have an adverse economic impact on California businesses and individuals compared to the 2011 Truck and Bus regulation, and formal require- ments for major regulations do not apply. However, in the interest of transparency, staff have prepared a thor- ough economic analysis of these proposed amend- ments, available in the Economic Impact Analysis in the Initial Statement of Reasons (ISOR).

Effect on Jobs/Businesses: The Executive Officer has determined that the pro- posed regulatory action would not significantly af fect the creation or elimination of jobs within the State of California, the creation of new businesses or elimina- tion of existing businesses within the State of Califor- nia, or the expansion of businesses currently doing busi- ness within the State of California. A detailed assess- ment of the economic impacts of the proposed regulato- ry action can be found in the Economic Impact Assess- ment

chapter in the ISOR. Benefits of the Proposed Regulation: The objective of the proposed regulatory action is to avoid delays with California DMV registration starting in 2020 for SWCVs; improve enforcement effective- ness; and allow sufficient time for heavy crane owners to upgrade equipment without disrupting business op- erations. Ultimately, the amendments will help Califor- nia reach its long−term air quality and climate goals by achieving nearly the same PM emissions by 2027 and nearly the same NOx emissions level by 2035. A

summary of these benefits is provided, please refer to “Objectives and Benefits,” under the Informative Di- gest of Proposed Action and Policy Statement Over- view Pursuant to Government Code 11346.5(a)(3) dis- cussion. Business Report (Gov. Code, §§ 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 Private Persons or Businesses (Gov. Code, § 11346.5, subd. (a)(9)): In developing this regulatory proposal, CARB staff evaluated the potential economic impacts on represen- tative private persons or businesses. CARB is not aware of any cost impacts that a representative private person

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2175 or business would necessarily incur in reasonable com- pliance with the proposed action. Effect on Small Business (Cal. Code Regs., tit. 1, § 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 because the proposed amendments applies equally to all businesses. Alternatives Statement (Gov.

Code, § 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.

ENVIRONMENTAL ANALYSIS CARB, as the lead agency for the proposed regulato- ry action, has prepared an environmental analysis (EA) under its certified regulatory program (California Code of Regulations, title 17, sections 60000 through 60008) to comply with the requirements of the California Envi- ronmental Quality Act (CEQA; Public Resources Code

section 21080.5). The EA determined that the proposed regulatory action would not result in any significant ad- verse impacts on the environment. The basis for reach- ing this conclusion is provided in

Chapter VI of the ISOR. Written comments on the EA will be accepted during a 45−day public review period starting on De- cember 7, 2018, and ending at 5 p.m. on January 22, 2018. 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 ten 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 Beth White, Manager, On−Road Compliance Assistance Section, at (916) 324−1704, or (designated back−up contact) Jacqueline C. Johnson, Air Pollution Specialist, On−Road Compliance Assistance Section, Mobile Source Control Division at (916) 323−2750. A V AILABILITY OF DOCUMENTS CARB staff has prepared a Staff Report: the ISOR for the proposed regulatory action, which includes a sum- mary of the economic and environmental impacts of the proposal.

The report is entitled: “Public Hearing to Consider the Proposed Amendments to the On−Road Heavy−Duty Diesel−Fueled Residential and Commer- cial Solid Waste Collection Vehicle Regulation to In- clude Heavy Cranes.” Copies of the ISOR and the full text of the proposed regulatory language, in underline and strikeout format to allow for comparison with the existing regulations, may be accessed on CARB’s website listed below, or may be obtained from the Public Information Office, California Air Resources Board, 1001 I Street, Visitors and Environmental Services Center, First Floor, Sacra- mento, California 95814, on December 4, 2018.

Further, the agency representative to whom nonsub- stantive inquiries concerning the proposed administra- tive action may be directed is Bradley Bechtold, Regu- lations Coordinator, (916) 322−6533. The Board staff has compiled a record for this rulemaking action, which

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2176 includes 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 take ac- tion to approve for adoption the regulatory language as originally proposed, or with non−substantial or gram- matical modifications. The Board may also approve for adoption the proposed regulatory language with other modifications if the text as modified is sufficiently re- lated to the originally proposed text that the public was adequately placed on notice and that the regulatory lan- guage as modified could result from the proposed regu- latory action.

If this occurs, the full regulatory text, with the modifications clearly indicated, will be made avail- able to the public, for written comment, at least 15 days before final adoption. The public may request a copy of the modified regu- latory text from CARB’s Public Information Office, California Air Resources Board, 1001 I Street, Visitors and Environmental Services Center, First Floor, Sacra- mento, California 95814.

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 http://www.arb.ca.gov/regact/2018/swcv18/swcv18. htm . GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE CALIFORNIA ENDANGERED SPECIES ACT FISH AND GAME CODE

SECTION 2080.3 CONCURRENCE NO. 2080−2018−014−04 Project: Implementation of the San Joaquin River Restoration Program and Accompanying Hatchery and Genetic Management Plan Location: Butte, Napa, Yolo, and Fresno Counties Permittee: U.S. Fish and Wildlife Service Background On September 12, 2018, the National Marine Fish- eries Service (NMFS) issued Scientific Research and Enhancement Permit 20571 (Permit) to the United States Fish and Wildlife Service (USFWS), pursuant to

section 10, subdivision (a)(1)(

A) of the federal Endan- gered Species Act (ESA). The Permit authorizes USFWS to take ESA−listed Central Valley spring−run Chinook salmon (Oncorhynchus tshawytscha)(spring− run Chinook salmon) from the Feather River Fish Hatchery (FRFH), Butte Creek, and the San Joaquin River for scientific research and enhancement activities associated with the San Joaquin River Restoration Pro- gram (SJRRP).

The Permit authorizes collection of wild and hatchery eggs, juveniles, and adults for brood- stock development and maintenance, releases of juve- nile hatchery−origin spring−run Chinook salmon, and in−stream research, monitoring, and evaluation activi- ties. Spring−run Chinook salmon is designated as a threatened species pursuant to the California Endan- gered Species Act (CESA) (Fish & G. Code, § 2050 et seq.). (See Cal.

Code Regs., tit. 14, § 670.5, subd. (b)(2)(C).) The purpose of the hatchery program is to produce spring−run Chinook salmon for reintroduction in order to restore a self−sustaining population in the San Joaquin River below Friant Dam. The Permit is ef- fective for approximately five years and will expire De- cember 31, 2023. The Permit that is the subject of this determination, as well as the Permit’s associated Biological Opinion (BiOp), arise from the SJRRP. The SJRRP executes a legal settlement from the lawsuit, NRDC et al. v. Kirk Rodgers et al.

In 1988, a coalition of environmental groups led by the Natural Resources Defense Council

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2177 (NRDC) filed a lawsuit challenging the renewal of long−term water services contracts between the United States Department of Interior and the Central Valley Project Friant Division contractors. After more than 18 years of litigation, the Settling Parties reached a Stipu- lation Agreement (Settlement).

The Settling Parties, in- cluding NRDC, Friant Water Users Authority (now known as the Friant Water Authority), and the United States Departments of Interior and Commerce, agreed on the terms and conditions of the Settlement, which es- tablishes two primary goals: • Restoration Goal — To restore and maintain fish populations in “good condition” in the mainstem San Joaquin River below Friant Dam to the confluence with the Merced River, including naturally reproducing and self−sustaining populations of salmon and other fish. • Water Management Goal — To reduce or avoid adverse water supply impacts to all of the Friant Division long−term contractors that may result from the Interim Flows and Restoration Flows provided in the Settlement.

Through a 2006 memorandum of understanding be- tween the California Department of Fish and Wildlife (CDFW) and other state agencies and the Settling Par- ties, CDFW stated its intention to assist the Settling Par- ties in implementation of the Settlement consistent with CDFW’s authorities, resources, and broader regional resource strategies. Subsequently, President Obama signed the San Joaquin River Restoration Act on March 30, 2009, giving the Department of Interior full authori- ty to implement the SJRRP.

The implementing agen- cies, consisting of the Department of Interior, Bureau of Reclamation (Reclamation) and USFWS, NMFS, CDFW, and California Department of Water Resources (DWR) organized a Program Management Team and associated work groups to begin the Settlement implementation. The Settlement requires the reintroduction of spring− run Chinook salmon into the San Joaquin River.

To im- plement the Settlement, the SJRRP’s Hatchery and Ge- netics Management Plan (HGMP) (2016) proposes us- ing a Conservation Facility (Interim Facility and future Salmon Conservation and Research Facility [SCARF]) and genetic management and conservation hatchery techniques to develop a self−sustaining population of spring−run Chinook salmon for the SJRRP. The Interim Facility, located in Friant, California, in Fresno County, and the SCARF will rely on artificial propagation using broodstock to attain sufficient numbers of spring−run Chinook salmon for reintroduction.

Because the SJRRP is expected to result in take of a species designated as threatened under the federal ESA, USFWS consulted with NMFS as required by

Section 7 of ESA. The timeline of relevant regulatory activities to date is as follows: • October 11, 2012 — NMFS issued Enhancement of Survival Permit 14868 to USFWS, authorizing take of spring−run Chinook eggs or juveniles from FRFH to establish broodstock methodologies and begin studies associated with holding practices. • December 18, 2013 — CDFW issued a concurrence (CDFW file No. 2080−2012−017− 014) pursuant to Fish and Game Code

section 2080.3 that Permit 14868 would further the conservation of spring−run Chinook salmon. • December 31, 2013 — NMFS issued final regulations designating an experimental population of spring−run Chinook salmon under

Section 1539, subdivision (

j) of Title 16 of the United States Code and established take provisions for members of that population. • March 18, 2014 — CDFW issued a determination (CDFW file No. 2080−2014−005−04) that the management restrictions, protective measures, prohibitions, and exceptions to prohibitions contained in the federal regulations meet the requirements in Fish and Game Code

section 2080.4. • March 21, 2014 — NMFS issued Enhancement of Survival Permit 17781 to USFWS, authorizing take of spring−run Chinook salmon for collection, rearing, and release. • April 1, 2014 — CDFW issued a concurrence (CDFW file No. 2080−2014−006−04) pursuant to Fish and Game Code

section 2080.3 that Permit 14868 would further the conservation of spring−run Chinook salmon. • September 12, 2018 — NMFS issued Scientific Research and Enhancement Permit 20571 authorizing take of threatened spring−run Chinook salmon and threatened California Central Valley (CCV) steelhead (O. mykiss) associated with hatchery propagation, research, and enhancement activities. On or about October 29, 2018, the Director of CDFW received a letter from USFWS notifying CDFW pur- suant to Fish and Game Code

section 2080.3 that it had received a 10(a)(1)(

A) permit authorizing the taking of spring−run Chinook salmon in order to establish or maintain an experimental population in the San Joaquin

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 49-Z 2178 River. USFWS’ notification requested that CDFW: (1) make a determination that the Permit will further the conservation of the species; and (2) publish the notifica- tion as required by Fish and Game Code

section 2080.3, subdivision (a)(2). Project

Summary The activities described in the Permit will incidental- ly take1 spring−run Chinook salmon. Spring−run Chi- nook salmon will be intentionally taken at the FRFH, Butte Creek, and the San Joaquin River. The Permit au- thorizes take to include one or more of the following: harassment, capture, handling, collection, transport, holding, lethal spawning, biological sampling, tagging, and live release of marked spring Chinook salmon in excess of broodstock needs, unmarked spring Chinook salmon, and natural−origin steelhead, if encountered.

The Permit authorizes take associated with hatchery propagation, research, and enhancement activities at the San Joaquin Conservation Hatchery Facilities, which include the SCARF near Friant Dam on the San Joaquin River, the Interim Facility, and a small Satellite Incubation and Rearing Facility (SIRF; referred to col- lectively as the Conservation Facilities), as cited in US- FWS’ Permit application.

Two types of direct take would occur under the Per- mit: (1) take of spring−run Chinook salmon associated with broodstock collection, maintenance of fish held as captive broodstock, and juvenile rearing and release, and (2) take of spring−run Chinook salmon and CCV steelhead associated with research, monitoring, and evaluation (RM&

E) activities. SJRRP proposes to collect up to 5,470 eggs or juve- niles from all sources, including 70 for pathology stud- i