California Regulatory Notice Register — Register 2022, No. 48-Z (DECEMBER 2, 2022)

Cal. Reg. Notice Reg. 2022, No. 48

California Z Register

Time- Dated Material GAVIN NEWSOM, GOVERNOR OFFICE OF ADMINISTRATIVE LAW California Regulatory Notice Register REGISTER 2022, NUMBER 48-Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW DECEMBER 2, 2022 PROPOSED ACTION ON REGULATIONS TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION Conflict–of–Interest Codes — Notice File Number Z2022–1122–06 ....................................... 1419 AMENDMENT MULTI–COUNTY: Allan Hancock Community College District East Bay Schools Insurance Group San Gorgonio Pass Water Agency STATE AGENCY: California Public Employees’ Retirement System Native American Heritage Commission TITLE 2. DEPARTMENT OF HUMAN RESOURCES Savings Plus Program Contract Periods — Notice File Number Z2022–1121–04 ............................ 1420 TITLE 2.

DEPARTMENT OF HUMAN RESOURCES Investments — Notice File Number Z2022–1121–05 .................................................... 1422 TITLE 4. GAMBLING CONTROL COMMISSION Commission Fees Modernization Project III — Notice File Number Z2022–1122–05 .......................... 1424 TITLE 8. AGRICULTURAL LABOR RELATIONS BOARD Agricultural Labor Relations — Notice File Number Z2022–1121–01 ...................................... 1429 TITLE 10.

DEPARTMENT OF FINANCIAL PROTECTION AND INNOV ATION Continuing Education Requirements for Investment Adviser Representatives — Notice File Number Z2022–1116–01 .............................................................. 1440 TITLE 11. DEPARTMENT OF JUSTICE Check Casher Permit Program — Notice File Number Z2022–1122–01 .................................... 1444 (Continued on next page)

TITLE 14. OFFICE OF PLANNING AND RESEARCH Regulations Governing Applicant Fees for Environmental Leadership Development Applications — Notice File Number Z2022–1122–04 ................................................... 1447 TITLE 17. AIR RESOURCES BOARD Airborne Toxic Control Measure for Chromium Electroplating and Chromic Acid Anodizing Operations — Notice File Number Z2022–1115–06 ........................................... 1450 TITLE 17.

AIR RESOURCES BOARD Area Designations for State Ambient Air Quality Standards — Notice File Number Z2022–1115–07 ................................................................ 1462 GENERAL PUBLIC INTEREST OCCUPATIONAL SAFETY AND HEALTH STANDARDS BOARD Notice of Public Meeting and Business Meeting ....................................................... 1467 PROPOSITION 65 OFFICE OF ENVIRONMENTAL HEALTH HAZARD ASSESSMENT Notice of Intent to List Chemicals: 1–Bromo–3–Chloropropane, 1–Butyl Glycidyl Ether, and Glycidyl Methacrylate ........................................................... 1468

SUMMARY OF REGULATORY ACTIONS Regulations filed with the Secretary of State .......................................................... 1469 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 REGULATORY 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 https://oal.ca.gov .

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1419 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 Polit - ical Practices Commission, pursuant to the authority vested in it by Sections 82011, 87303, and 87304 of the Government 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 M U LT I – COU N T Y: Allan Hancock Community College District East Bay Schools Insurance Group San Gorgonio Pass Water Agency STAT E AGENCY: California Public Employees’ Retirement System Native American Heritage Commission A written comment period has been established commencing on December 2, 2022 and closing on January 17, 2023.

Written comments should be direct- ed to the Fair Political Practices Commission, Atten - tion Daniel Vo, 1102 Q Street, Suite 3000, Sacramen- to, California 95811. At the end of the 45–day comment period, the pro - posed conflict–of–interest codes will be submitted to the Commission’s Executive Director for his review, unless any interested person or his or her duly autho - rized representative requests, no later than 15 days pri- or to the close of the written comment period, a public hearing before the full Commission.

If a public hear - ing is requested, the proposed codes will be submitted to the Commission for review. The Executive Director of the Commission will review the above–referenced conflict–of–interest codes, proposed pursuant to Government Code Sec - tion 87300, which designate, pursuant to Government Code

Section 87302, employees who must disclose certain investments, interests in real property and income. The Executive Director of the Commission, upon his or its own motion or at the request of any interested person, will approve, or revise and approve, or return the proposed codes to the agency for revision and re– submission within 60 days without further notice. Any interested person may present statements, ar - guments or comments, in writing to the Executive Director of the Commission, relative to review of the proposed conflict–of–interest codes.

Any written comments must be received no later than January 17, 2023. 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. There- fore, they are not “costs mandated by the state” as de- fined in Government 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 codes should be made to Daniel Vo, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322–5660.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1420 AVAILABILITY OF PROPOSED CONFLICT–OF–INTEREST CODES Copies of the proposed conflict–of–interest codes may be obtained from the Commission offices or the respective agency. Requests for copies from the Com- mission should be made to Daniel Vo, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sac- ramento, California 95811, telephone (916) 322–5660. TITLE 2. DEPARTMENT OF HUMAN RESOURCES DIVISION 1. ADMINISTRATIVE PERSONNEL

CHAPTER 3. SUBCHAPTER 1. GENERAL CIVIL SERVICE RULES

ARTICLE 27. 457 DEFERRED COMPENSATION PLAN

SECTION 599.943 SAVINGS PLUS PROGRAM CONTRACT PERIODS The California Department of Human Resources (CalHR) proposes to amend the regulation described below after considering all comments, objections, and recommendations. I. PUBLIC HEARING CalHR has not scheduled a public hearing on this proposed action. However, CalHR will hold a hear - ing if it receives a written request 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. II.

WRITTEN COMMENT PERIOD Any Interested person, or his or her authorized rep - resentative, may submit written comments relevant to the proposed regulatory action to CalHR. Com - ments may also be submitted by facsimile (FAX) at 916–327–1885 or by e–mail to joseph.mesich@calhr. ca.gov. The written comment period closes at 12:00 a.m. on January 17, 2023. CalHR will only consider comments received at CalHR’s office by that time.

Submit comments to the following address: Joseph Mesich, Investment & Project Analyst California Department of Human Resources 1515 S Street, North Building, Suite 500 Sacramento, CA 95811 III. AUTHORITY AND REFERENCE Government Code

section 19815.4 authorizes CalHR to formulate, adopt, amend, or repeal rules, and regulations affecting the purposes, responsibilities and jurisdiction of the department that are consistent with the law and necessary for administration of its programs. The proposed amendment interprets and makes specific Government Code

section 19993 and Public Contracts Code sections 10295(c)(4), 10344.1., and 10430(c). IV. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Public Contract Code (PCC)

section 10430, subdivi- sion (c), provides CalHR flexibility in the competitive bid process for contracts for state employee benefits, including voluntary retirement savings plans for state employees. Specifically, PCC

section 10430 provides that

Chapter 2,

Part 2, Division 2, of the PCC, regard- ing state acquisition for goods and services does not apply to “any entity exempt from

Section 10295.” Fur- ther, PCC

section 10295, subdivision (c)(4) exempts CalHR from obtaining Department of General Ser - vices’ approval prior to awarding a contract. How - ever, CalHR is required to comply with PCC

section 10344.1, which requires the program to provide “all qualified bidders with a fair opportunity to enter the bidding process” and to follow additional state con - tracting best practices to the extent feasible. Despite the flexibility provided by PCC

section 10344.1, California Code of Regulations (CCR), title 2,

section 599.943 requires the Savings Plus Program to comply with the State’s competitive bidding process when selecting an investment firm for a new contract. Thus,

section 599.943 does not align with PCC stat - utes that provide CalHR a more flexible approach to the competitive bidding requirements. V. EVALUATION OF INCONSISTENCY/ INCOMPATIBILITY WITH EXISTING STATE REGULATIONS CalHR evaluated whether or not the proposed amendment is inconsistent or incompatible with ex - isting state regulations. These are the only regulations concerning Savings Plus Program Contracting. There- fore, the proposed amendment is not inconsistent nor incompatible with other existing state regulations. VI. ANTICIPATED BENEFITS FROM THIS PROPOSED REGULATION The proposed amendment modifies the regulation and recognizes that a different requirement applies to

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1421 CalHR, which does not specifically follow the state’s standard competitive bid process. This amendment to the regulation allows the Savings Plus Program to comply with the state’s competitive bidding pro - cess and for the program to be nimbler when need - ed. Where there is a high risk of an investment man - ager losing assets, the Savings Plus Program should be permitted to utilize a modified competitive search process to select a replacement investment manager to manage program assets.

This flexibility allows the Savings Plus Program to meet its fiduciary obligations and safeguard program assets. VII. DISCLOSURES REGARDING THE PROPOSED ACTION CalHR has made the following initial determinations: 1. Mandate on local agencies and school districts : None. 2. Cost or savings to any state agency : The cur - rent regulation does not have any fiscal impact on state agencies, local government, or private sec - tor business. The proposed amendment would not change this assessment. 3.

Cost to any local agency or school district, which must be reimbursed in accordance with Government Code sections 17500 through 17630: None. 4. Other nondiscretionary cost or savings imposed on local agencies: None. 5. Cost or savings in federal funding to the state : None. 6. Significant, statewide adverse economic impact directly affecting business, including the abili - ty of California businesses to compete with busi - nesses in other states: None. 7.

Cost impacts on representative private person or business: CalHR is not aware of any cost im - pacts that a representative private person or busi- ness would necessarily incur in reasonable com - pliance with the proposed action. 8. Results of the Economic Impact Assessment/ Analysis: Adoption of these regulations will not: a. Create or eliminate jobs within California; b. Create new businesses or eliminate existing busi- nesses within California; or c. Affect the expansion of businesses currently do - ing business within California. d.

Create new benefits of the regulation to the health and welfare of California residents, worker safe - ty, and the state’s environment. Adoption of these regulations will: e. The proposed amendment modifies the regula - tion and recognizes that a different requirement applies to CalHR, and not necessarily the state’s standard competitive bid process. This amend - ment allows Savings Plus to comply with the state’s competitive bidding process and for the program to be nimbler when needed.

In the exam- ple above, where there is a high risk of an invest- ment manager losing assets, Savings Plus should be permitted to utilize a modified competitive search process to select a replacement investment manager to manage program assets. This flexibil- ity allows Savings Plus to meet its fiduciary obli- gations and safeguard program assets. 9. Significant effect on housing costs: None. 10. Small Business Impact : The proposed regulation amendment has no impact on small businesses.

This only regulates the internal process by which the state HR departments shall ensure only those who are truly qualified dependents of active em - ployees are receiving benefits, and does not ex - tend in any way to private businesses or the gen - eral public. VIII. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5, subdivision (a)(13), CalHR must determine that no reasonable alternative considered, or that has otherwise been identified and brought to the attention of agency, would be more effective in carrying out the purpose for which the action is proposed; or would be as effective and less burdensome to affected private persons; or would be more cost–effective to affected private persons and equally effective in implementing the statutory policy or other provision of law than the proposed described in this Notice.

CalHR invites interested persons to present state - ments or arguments with respect to alternatives to the proposed regulation at the hearing, if one is requested, or during the written comment period. IX. CONTACT PERSONS Inquiries concerning the proposed administrative action may be directed to: Joseph Mesich, Investment & Project Analyst California Department of Human Resources 1515 S Street, North Building, Suite 500 Sacramento, CA 95811 Telephone: 916–324–0519 E–mail: joseph.mesich@calhr.ca.gov The backup contact person for these inquiries is:

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1422 Jodi LeFebre, Legislative Coordinator California Department of Human Resources 1515 S Street, North Building, Suite 500 Sacramento, CA 95811 Telephone: 916–214–6119 E–mail: jodi.lefebre@calhr.ca.gov Please direct requests for copies of the proposed text (the “express terms”) of the regulation, the initial state- ment of reasons, the modified text of the regulation, if any, or other information upon which the rulemaking is based to Joseph Mesich at the above address. X.

AVAILABILITY OF THE STATEMENT OF REASONS, TEXT OF PROPOSED REGULATIONS, AND RULEMAKING FILE CalHR will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its office at the above address during normal business hours. As of the date this notice is published, the rulemaking file consists of this notice, the pro - posed text of the regulation, and the initial statement of reasons. XI.

AVAILABILITY OF CHANGED OR MODIFIED TEXT After considering all timely and relevant comments received, CalHR may adopt the proposed amendment to the regulation as described in this notice. If CalHR makes modifications that are sufficiently related to the originally proposed text, it will make the modified text (with the changes clearly indicated) availability to the public, and will submit a copy to anyone who has submitted a written comment, for at least 15 days before CalHR adopts the regulation as revised.

Please send requests for copies of any modified regulation to the attention of Joseph Mesich at the address indicated above. CalHR will accept written comments on the modified regulation for 15 days after the date on which they are made available. XII. AVAILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, copies of the Final Statement of Reasons may be obtained by contacting Joseph Me- sich at the above address. XIII.

CHAPTER 3. SUBCHAPTER 1. GENERAL CIVIL SERVICE RULES

ARTICLE 27. 457 DEFERRED COMPENSATION PLAN

SECTION 599.942 INVESTMENTS The California Department of Human Resources (CalHR) proposes to amend the regulation described below after considering all comments, objections, and recommendations. I. PUBLIC HEARING CalHR has not scheduled a public hearing on this proposed action. However, CalHR will hold a hear - ing if it receives a written request 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. II.

WRITTEN COMMENT PERIOD Any interested person, or his or her authorized rep - resentative, may submit written comments relevant to the proposed regulatory action to CalHR. Com - ments may also be submitted by facsimile (FAX) at 916–327–1885 or by e–mail to joseph.mesich@calhr. ca.gov. The written comment period closes at 12:00 a.m. on January 17, 2023. CalHR will only consider comments received at CalHR’s office by that time.

section 19993.05 allows the Savings Plus Program the flexibility to offer the investment options that are in the best interest of its participants.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1423 IV. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW California Code of Regulations

section 599.942 was adopted in January 1986 and specifies that the state’s 457 Deferred Compensation Plan shall consist of a savings plan, two annuity products, both fixed and variable; and one mutual fund provider. The purpose of this regulation was to ensure a minimum number of options were provided to participants. In 1998, the Legislature passed Assembly Bill 1416, enacting Government Code

section 19993.05 and required CalHR to include a variety of investment choices, including but not limited to stocks, bonds, open ended mutual funds, and annuities, for program participants. Senate Bill 1504 (Chapter 903, Statutes of 2018) amended Government Code

section 19993.05, known as the Freedom of Financial Choice Act by removing statutory requirements for the Savings Plus Program to offer specific investment options, including annu - ity products, and gave CalHR the exclusive authority to determine investment options for the Savings Plus Program. Due to the revision and broader language of avail - able investment options under the Government Code

section 19993.05, Savings Plus is able to amend sec - tion 599.942 and harmonize regulations to the Savings Plus Plan documents. The regulatory amendments will allow the Savings Plus Program the necessary flexibility while still specifying certain parameters for investment options. V. EVALUATION OF INCONSISTENCY/ INCOMPATIBILITY WITH EXISTING STATE REGULATIONS CalHR evaluated whether or not the proposed amendment is inconsistent or incompatible with ex - isting state regulations. These are the only regulations concerning what the State’s 457 Deferred Compen - sation Plan shall consist of.

Therefore, the proposed amendment is not inconsistent nor incompatible with other existing state regulations. VI. ANTICIPATED BENEFITS FROM THIS PROPOSED REGULATION The proposed regulation will remove the require - ment to offer certain specified investment options, will align regulatory language with the amended Govern - ment Code

section 19993.05 and existing Savings Plus Plan document language, and allow the Savings Plus Program the flexibility to offer investment options that are in the best interest of its participants. VII. DISCLOSURES REGARDING THE PROPOSED ACTION CalHR has made the following initial determinations: 1. Mandate on local agencies and school districts : None. 2. Cost or savings to any state agency : The cur - rent regulation does not have any fiscal impact on state agencies, local government, or private sec - tor business. The proposed amendment would not change this assessment. 3.

Create new benefits of the regulation to the health and welfare of California residents, worker safe - ty, and the state’s environment. Adoption of these regulations will: e. The proposed regulatory change will remove the requirement to offer certain specified investment options, align regulatory language with existing Plan Document language and Government Code

section 19993.05 and allow the flexibility to offer investment options that are at a lower cost and in the best interest of its participants. 9. Significant effect on housing costs: None. 10. Small Business Impact : The proposed regula - tion amendment has no impact on small busi - nesses. This only regulates the internal process by which the state HR departments shall ensure only those who are truly qualified dependents of active employees are receiving benefits, and does

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1424 not extend in any way to private businesses or the general public. VIII. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

CONTACT PERSONS Inquiries concerning the proposed administrative action may be directed to: Joseph Mesich, Investment & Project Analyst California Department of Human Resources 1515 S Street, North Building, Suite 500 Sacramento, CA 95811 Telephone: 916–324–0519 E–mail: joseph.mesich@calhr.ca.gov The backup contact person for these inquiries is: Jodi LeFebre, Legislative Coordinator California Department of Human Resources 1515 S Street, North Building, Suite 500 Sacramento, CA 95811 Telephone: 916–214–6119 E–mail: jodi.lefebre@calhr.ca.gov Please direct requests for copies of the proposed text (the “express terms”) of the regulation, the initial state- ment of reasons, the modified text of the regulation, if any, or other information upon which the rulemaking is based to Joseph Mesich at the above address.

X. AVAILABILITY OF THE STATEMENT OF REASONS, TEXT OF PROPOSED REGULATIONS, AND RULEMAKING FILE CalHR will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its office at the above address during normal business hours. As of the date this notice is published, the rulemaking file consists of this notice, the pro - posed text of the regulation, and the initial statement of reasons. XI.

AVAILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Action, the Initial Statement of Reasons, and the text of the regulation in underline and strike out can be accessed through our website at www.calhr.ca.gov. TITLE 4. GAMBLING CONTROL COMMISSION COMMISSION FEES MODERNIZATION PROJECT III CGCC–GCA–2022–03–C NOTICE IS HEREBY GIVEN that the Califor - nia Gambling Control Commission (Commission) is proposing to take the action described in the Infor - mative Digest after consideration of all relevant public comments, objections, and recommendations received concerning the proposed action.

Comments, objec - tions, and recommendations may be submitted as follows:

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1425 WRITTEN COMMENT PERIOD Any interested person, or his or her authorized rep - resentative, may submit written comments relevant to the proposed regulatory action to the Commission at any time during the 45–day public comment period, which closes on January 17, 2022. Written comments relevant to the proposed regulatory action may be sent by mail, facsimile, or e–mail, directed to one of the in- dividuals designated in this notice as a contact person.

To be eligible for the Commission’s consideration, all written comments must be received at its office no later than midnight on January 18, 2022. Com - ments sent to persons and/or addresses other than those specified under Contact Persons, or received after the date and time specified above, will be in- cluded in the record of this proposed regulatory action, but will not be summarized or responded to regardless of the manner of transmission. PUBLIC HEARING The Commission has not scheduled a public hear - ing on this matter.

Any interested person, or his or her authorized representative, may request a hearing pur - suant to Government Code

section 11346.8. A request for a hearing should be directed to the person(

s) listed under Contact Persons no later than 15 days prior to the close of the written comment period. ADOPTION OF PROPOSED ACTION After the close of the public comment period, the Commission, upon its own motion or at the instance of any interested party, may thereafter formally adopt the proposals substantially as described below or may modify such proposals if such modifications are suffi- ciently related to the original text.

With the exception of technical or grammatical changes, the full text of any modified proposal will be available for 15 days prior to its adoption from the person designated in this Notice as contact person and will be mailed to those persons who submit oral or written testimony related to this proposal or who have requested notification of any changes to the proposal.

AUTHORITY AND REFERENCE Pursuant to the authority vested by sections 19824, 19826, 19840, 19841, 19951, 19955 and 19984 of the Business and Professions Code; and to implement, in- terpret or make specific sections 19805, 19826, 19841, 19867, 19951, and 19984 of the Business and Profes - sions Code, the Commission is proposing to adopt the following changes to Chapters 2, 5, and 7 of Division 18 of Title 4 of the California Code of Regulations: INFORMATIVE DIGEST AND POLICY STATEMENT Introduction: The Commission is the state agency charged with the administration and implementation of the Gam - bling Control Act (Act). 1 The Commission is autho - rized to adopt regulations as necessary to implement the Act.

Senate Bill (SB) 189 (Chapter 48, Statutes of 2022) was signed into law on June 30, 2022. SB 189, in part, significantly modified Business and Professions Code (BPC)

section 19951. BPC

section 19951 is the

section that provides the Commission the authority to charge an annual fee to cardrooms. Prior to the adoption of SB 189, the provision provided a specific fee struc - ture that each cardroom was required to pay. This fee structure was based on the number of tables the card - room was licensed to operate or the gross revenue of the cardroom, as specified.

With the adoption of SB 189, this fee structure has been repealed and replaced with authority for the Commission to adopt regulations to collect a fee that is limited to the reasonable regulatory expenditures of the Bureau of Gambling Control within the Depart - ment of Justice (Bureau) and the Commission. As the Commission is aware that the existing fee structure in regulation is not limited to the reasonable regulatory expenditures of the Bureau and Commission, main - taining these regulations is inconsistent with the re - quirements of BPC

section 19951. Existing Law: BPC

section 19805 provides the

definitions used within the Act. BPC

section 19824 provides that the Commission shall have all powers necessary and proper to enable it fully and effectually to carry out the policies and purposes of the Act. BPC

section 19826 provides the responsibilities of the Bureau, including to receive and process applica- tions for any license, permit, or other approval, and to collect all related fees. BPC

section 19840 provides that the Commission may adopt regulations for the administration and en - forcement of the Act. Additionally, the Commission’s regulations, to the extent appropriate, shall take into consideration the operational differences of large and small businesses. BPC

section 19841 provides a list of regulations that the Commission must adopt, including regulations providing the manner and method of collection and payment of fees and implementing the provisions of the Act relating to licensing and other approvals. 1 Business and Professions Code, Division 8,

Chapter 5,

section 19800 et seq.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1426 BPC

section 19951 provides that the Commission may collect fees sufficient to fund the reasonable regu- latory expenditures of the Bureau and Commission to fully carry out their duties and responsibilities under the Act. BPC

section 19955 provides that if an owner licens- ee fails to make timely payments under BPC

section 19951(b)(2), the Commission may order the temporary closure of the gambling establishment and if the fees remain unpaid after 90 days, the Commission may deem the license surrendered. BPC

section 19984 provides that the Commission shall establish regulations related to third–party pro - viders of proposition player services (TPPPS), includ- ing the establishment of reasonable fees and deposits as necessary to defray the costs of providing regula- tion and oversight. EFFECT OF REGULATORY ACTION This proposed action has been prepared to imple - ment the annual fee calculation recommended by MGT Consulting Group in response to the State Audi- tor’s Report (Audit Report) 2 released on May 16, 2019, in regards to cardrooms.

ANTICIPATED BENEFITS OF PROPOSED REGULATION This proposed action will have the benefit of requir- ing cardroom business licensees to pay total annual fees in an amount necessary for the Commission and Bureau to maintain proper funding levels while re - moving any inappropriate additional payments. SPECIFIC PROPOSAL This proposed action will make changes within the California Code of Regulations, Title 4, Division 18 as follows:

Chapter 2. L icenses and Work Permits

Article 2. I nitial and Renewal Licenses and W ork Permit Amend 12112. I nitial License Applications; R equired Forms.

Section 12112 provides the forms and other infor - mation necessary for an application for an initial li - cense to be considered complete. This

section includes the attachment of many forms, including the Appli - cation for Owner Category License, CGCC–CH2–05. As part of submitting this form, applicants for card - room business licenses and TPPPS business licenses are required to submit their annual fees.

Section 12368 2 State Audit Report 2018–132. has been amended to provide a separate timeline for submitting annual fees.

Chapter 5. A ccounting and Transaction A pprovals

Article 1. A ccounting and Financial R eporting Adopt 12318. C ardroom Business License G aming Revenue Report. Subsection (

c) of

Section 12368 required the sub - mittal of a completed Cardroom Business License: Annual Fee Calculation, CGCC–CH7–03, alongside the submittal of the current year’s annual fee (which itself is due no later than 120 calendar days following the end of the cardroom business licensee’s preceding fiscal year). This form includes information both to re- port the revenue for gambling activities, broken down by individual games and tournaments, and informa - tion for the determination of the cardroom business licensee’s annual fee. With the change to the annual fee payment structure, the

section related to the an - nual fee

schedule is inconsistent, no longer necessary, and is therefore repealed. The remainder of the form and the current submittal timeline was moved to this new section. Due to the move to

Chapter 5 and the removal of part of the form, it has been renamed Card- room Business License: Gaming Revenue Report, CGCC–CH5–01.

Chapter 7. C onditions of Operation for Ga mbling Establishments

Article 1. G eneral Provisions Amend 12360. D efinitions.

Section 12360 provides the

definitions that pertain only to

Chapter 7. The Commission is proposing to add six new

definitions to this section. All existing

definitions are renumbered accordingly, which is a non–substantive change. Paragraph (b)(1) provides the definition of “Active Licensee” to mean a cardroom business licensee who has generated revenue for at least the last year as re - ported in

Section 12313. This means that if a cardroom business licensee has reported revenue in the previous year’s financial statement, they are considered active. Paragraph (b)(2) provides the definition of “Annual Fee” to mean the amount a cardroom business licens - ee is required to pay to cover Non–Application Costs pursuant to

Section 12368.2. Paragraph (b)(3) provides the definition of “Appli - cation Cost” to mean all costs, including the deposit, related to the processing of an application. Paragraph (b)(10) provides the definition of “Non– Application Cost” to mean all costs other than appli - cation costs borne by the Commission, Department of Justice, and all other State operations expenditures for the administration and enforcement of the Act.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1427 Paragraph (b)(11) provides the definition of “Non– Operational Licensee” to mean a cardroom business licensee that maintains a valid license but did not gen- erate revenue in the past year as reported in

Section 12313. This means that if a cardroom business licensee has not reported revenue in the previous year’s finan - cial statement, they are considered non–operational. Paragraph (b)(13) provides the definition of “Sur - rendered or Revoked Licensee” to mean a former cardroom business licensee who stopped operating and ceased to maintain a valid license prior to August 31 of the year the invoices are created. Amend 12368. Cardroom Business License Annual Fee.

Section 12368 provides the process and timelines for a cardroom business licensee to submit their annu- al fee. The current provision mirrors the previous pro- cess and fee

schedule provided in BPC 19951, which has since been repealed. As such, all of the existing

Section 12368 is proposed be repealed and replaced as follows: Subsection (

a) provides that no later than October 1 of each year an invoice in an amount determined by the Commission pursuant to

Section 12368.2 will be sent by the Bureau to each cardroom business licensee. Subsection (

b) provides that the annual fee may be paid in installments if the cardroom business licensee submits a written request to the Bureau within 30 cal - endar days from the date the invoice was mailed. Subsection (

c) provides that a request for installment payments is to be considered approved unless, within 14 calendar days of receiving the request, the Bureau determines and notifies the cardroom business licens - ee that it has been disapproved. If not disapproved, a cardroom business licensee will provide its payments January 1, April 1, and June 30 of the payment year. If disapproved, or if not requested, the cardroom busi- ness licensee will pay the entire amount by January 1.

The standard for disapproval by the Commission is based on if the cardroom business licensee has shown a history of failing to make installment payments as required or failed to submit the request within the re - quired 30 calendar days. Subsection (

d) provides that the cardroom business license certificate will not be issued until the Bureau has received the cardroom annual fees, or has ap - proved the cardroom business licensee for installment payments. Subsection (

e) provides that that any renewal ap - plication for a cardroom business licensee will not be approved if the cardroom business licensee has any outstanding annual fees. Subsection (

f) provides that no application for a con- tract may be approved by the Bureau for a TPPPS to operate at this cardroom until any delinquent annual fees have been paid in full. Subsection (

g) provides the invoice amounts for cardroom business licensees when they first receive their licenses. Since the definition of an active licensee requires the submittal of fiscal information, it is likely that a newly approved cardroom business licensee will not have operated for a sufficient time to have complet- ed a full fiscal year in the timeframe required for the calculation of an annual fee. Paragraph (1) provides that upon the first issuance of a cardroom business license, either as a temporary or an initial license, the Bureau will issue an invoice in the amount required of an active licensee with a gross revenue under $1,500,000, as provided in

Section 12368.2, divided by 12, multiplied by the number of whole months remaining in the current calendar year, the cardroom business licensee must submit to the Bu- reau the annual fee within 30 calendar days from the date the invoice was mailed. Paragraph (2) provides that for the first full calendar year of licensure, a cardroom business licensee will be invoiced the unadjusted annual fee required of an active licensee with a gross revenue under $1,500,000, as provided in

Section 12368.2 for the following cal - endar year. Adopt 12368.2. Cardroom Business License Annual Fee Amounts.

Section 12368.2 provides the annual fee amounts required of cardroom business licensees. The fees re - quired include: ● $0 for surrendered or revoked licensees; ● $5,237 for non–operational licensees; ● $10,473 for active licensees with a three–year av- erage gross revenue under $1,500,000; or, ● 1.29% of the three–year average gross revenue for active licensees with a three–year average gross revenue of $1,500,000 or more.

Article 10. Gaming Tables Amend 12470. Request for Additional Temporary Tables for Tournaments or Special Events.

Section 12470 provides the process by which a card- room business licensee can request additional tables for use on a temporary basis. Currently, this process includes two fees, a fixed application fee to cover the costs of processing the application and an adjust - ment to the cardroom business licensee’s annual fee to reflect the additional tables. Now that the annual fee payment is no longer linked to the number of ta - bles operated by the cardroom business licensee, it is repealed. Paragraph (3) of subsection (

a) provides that the fee is required to be submitted with the application. Addi- tionally, the form Cardroom Business License: Gam - ing Tables, CGCC–CH7–07, attached to the Appendix

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1428 in this section, provides the same requirement. It is repealed from both the

section and the form. Subsection (

f) provides the calculation for this fee. As this fee is no longer being collected, it is repealed. Amend 12472. Request for Additional Permanent Tables.

Section 12472 provides the process by which a card- room business licensee can request additional perma - nent tables. Currently, this process includes an adjust- ment to the cardroom business licensee’s annual fees; however, as those fees are no longer being based on the total number of tables operated by the cardroom business license, this additional fee is being repealed. Subsection (

d) provides the timeline for the Bureau and Commission to review and consider the applica - tion for additional permanent tables. This includes a notification and submittal of additional annual fees. As this fee is no longer being collected, it is repealed. CONSISTENCY OR COMPATIBILITY WITH EXISTING STATE REGULATIONS The Commission has evaluated this regulatory ac - tion and determined that the proposed regulations are neither inconsistent nor incompatible with any other existing state regulations.

The proposed action is intended to make changes to the Commission’s regulations to improve the Com- mission’s existing processes and in so doing makes them more compatible and internally consistent. COMPARABLE FEDERAL LAW There are no existing federal regulations or statutes comparable to the proposed regulations.

FISCAL IMPACT ESTIMATES Fiscal Impact on Public Agencies Including Costs or Savings to State Agencies or Costs/ Savings in Federal Funding to the State: The Commission is anticipating an increase in an - nual fee collection of approximately $4,726,704 in cardroom annual fees per state fiscal year when com - pared to what is currently being collected. To accom - modate the additional workload, the Commission has already received additional budget authority for the 2022–2023 fiscal year of $168,000 for one Staff Man- agement Auditor position. Non–Discretionary Cost or Savings Imposed upon Local Agencies: None.

Mandate Imposed on Any Local Agency or School District for Which

Part 7 (Commenc - ing With

Section 17500) of Division 4 of the Government Code Requires Reimbursement: None. Cost to Any Local Agency or School Dis - trict for Which

Part 7 (Coomencing with Sec - tion 17500) of Division 4 of the Government Code Requires Reimbursement: None. Effect on Housing Costs: None. Impact on Business: The Commission has made a determination that the proposed regulatory action will not have a significant statewide adverse economic impact directly affecting business, including the ability of California businesses to compete with businesses in other states. This deter- mination is based on the following facts or evidence/ documents/testimony: This proposed action imposes no new mandatory requirements on businesses.

The Commission is anticipating an additional state - wide cost of $4,726,704 in cardroom annual fees. This cost would directly impact cardroom business - es licensees. This is reflected in an average increase of $764,801 in annual fees for a typical business and $48,652 for a small business. The calculation meth - od has been weighted to ensure that those business - es whose three–year average gross revenue is under $1,500,000 per year pay a lower proportion of the to - tal fees necessary in order to ensure that no cardroom business licensee is significantly impacted.

Cost Impact on Representative Private Person or Business: The Commission is anticipating an impact on a typ- ical cardroom business licensee resulting from the in - crease to their annual fee. As noted above, the Com - mission estimates the average increase to be $764,801 per typical business. The proposed regulation will have no impact on a representative private person. Effect on Small Business: The Commission is anticipating an impact on a small cardroom business licensee resulting from the increase to their annual fee.

As noted above, the Com- mission estimates the average increase to be $48,652 per small business. Results of Economic Impact Assessment/ Analysis Impact on Jobs/New Businesses: The Commission has determined that this regulato - ry proposal will not have a significant impact on the creation of new jobs or businesses, the elimination of jobs or existing businesses, or the expansion of busi - nesses in California. For this purpose, the definition of a small business as defined by the federal Small Busi- ness Administration was utilized.

The basis for this determination is that this pro - posed action only adjusts cardroom business licens - ees’ annual fees to reflect actual costs incurred by the Commission and Bureau, which is unlikely to result in additional or reduced industry participation or performance.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1429 Benefits of Proposed Regulation: This proposed action will have the benefit of requir- ing cardroom business licensees to pay total annual fees in an amount necessary for the Commission and Bureau to maintain proper funding levels. Health and Welfare of California Residents: It has been determined that the proposed action will protect the health, safety, and general welfare of Cali- fornia residents by aiding and preserving the integrity of controlled gambling.

Worker Safety: It has been determined that the proposed action will not affect worker safety because it does not pertain to working conditions or worker safety issues. State’s Environment: It has been determined that the proposed action will not affect the State’s environment because it does not pertain to environmental issues.

CONSIDERATION OF ALTERNATIVES The Commission must determine that no reasonable alternative considered by the Commission or that has otherwise been identified and brought to the attention of the Commission would be more effective in carry - ing out the purpose for which the action is proposed, would be as effective and less burdensome to affect - ed private persons than the proposed action, or would be more cost–effective to affected private persons and equally effective in implementing the statutory policy or other provision of law.

INITIAL STATEMENT OF REASONS, INFORMATION AND TEXT OF PROPOSAL The Commission has prepared an Initial Statement of Reasons and the exact language for the proposed action and has available all the information upon which the proposal is based. Copies of the language and of the Initial Statement of Reasons, and all of the information upon which the proposal is based, may be obtained upon request to the Commission at 2399 Gateway Oaks Drive, Suite 220, Sacramento, CA 95833– 4231.

A VAILABILITY AND LOCATION OF THE RULEMAKING FILE AND THE FINAL STATEMENT OF REASONS All the information upon which the proposed ac - tion is based is contained in the Rulemaking File that will be available for public inspection and copying at the Commission’s office throughout the rulemaking process. Arrangements for inspection and/or copying may be made by contacting the primary contact per - son named below.

You may obtain a copy of the Final Statement of Reasons, once it has been prepared, by making a writ- ten request to one of the contact persons named below or by accessing the Commission’s website also listed below.

CONTACT PERSONS All comments and inquiries concerning the sub - stance of the proposed action should be directed to the following primary contact person: Joshua Rosenstein, Legislative and Regulatory Specialist Legislative and Regulatory Affairs Division California Gambling Control Commission 2399 Gateway Oaks Drive, Suite 220 Sacramento, CA 95833–4231 Telephone: (916) 274–5823 Fax: (916) 263–0499 E–mail: jrosenstein@cgcc.ca.gov Requests for a copy of the Initial Statement of Rea - sons, proposed text of the regulation, modified text of the regulation, if any, or other technical information upon which the proposed action is based should be di- rected to the following backup contact person: Alex Hunter, Legislative and Regulatory Specialist Legislative and Regulatory Affairs Division California Gambling Control Commission 2399 Gateway Oaks Drive, Suite 220, Sacramento, CA 95833–4231 Telephone: (916) 263–1301 Fax: (916) 263–0499 E–mail: ahunter@cgcc.ca.gov WEBSITE ACCESS Materials regarding this proposed action are also available on the Commission’s website at www.cgcc. ca.gov.

TITLE 8. AGRICULTURAL LABOR RELATIONS BOARD The Agricultural Labor Relations Board (ALRB or Board) proposes to adopt, amend, and repeal the regulations described below after considering all com- ments, objections, and recommendations regarding the proposed action. PROPOSED REGULATORY ACTION The Board proposes to: ● Adopt new sections 20247.1 and 20410;

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1430 ● Amend sections 20150, 20155, 20160, 20162, 20164, 20166, 20169, 20170, 20190, 20192, 20216, 20217, 20219, 20220, 20222, 20235, 20236, 20238, 20240, 20241, 20242, 20243, 20246, 20248, 20249, 20250, 20262, 20274, 20282, 20286, 20290, 20291, 20299, 20300, 20310, 20305, 20325, 20330, 20335, 20350, 20355, 20360, 20363, 20365, 20370, 20375, 20377, 20382, 20385, 20390, 20393, 20400, 20401, 20402, 20407, 20408, 20910; and ● Repeal

section 20168. PUBLIC HEARING The Board has not scheduled a public hearing on this proposed action. However, the Board will hold a hearing if it receives a written request for a public hearing from any interested person, or the represen - tative of any interested person, no later than 15 days before the close of the written comment period. WRITTEN COMMENT PERIOD Any interested person, or the representative of any interested person, may submit written comments relevant to the proposed regulatory action to the Board. Comments also may be submitted by email to Santiago.Avila–Gomez@alrb.ca.gov.

The written comment period closes on January 17, 2023, which is 46 days after the publication of this notice. The Board will consider only comments actually received by that time. Written comments shall be submitted to: Santiago Avila–Gomez, Executive Secretary Agricultural Labor Relations Board 1325 J Street, Suite 1900–B Sacramento, CA 95814 AUTHORITY AND REFERENCE Pursuant to Labor Code

section 1144, the Board is authorized to adopt, amend and repeal rules and reg - ulations to carry out the provisions, and effectuate the purposes and policies, of the Agricultural Labor Relations Act (ALRA or Act), codified at Labor Code

section 1140 et seq. General reference for

section 20150 of the Board’s regulations: 1151.4(a), 1156.3, 1156.7(c), (d), 1160.2, 1160.3, and 1160.5, Labor Code. General reference for

section 20155 of the Board’s regulations: Sections 1151.4(a), 1156.3, 1156.7(c), (d), 1160.2, 1160.3, and 1160.5, Labor Code. General reference for

section 20160 of the Board’s regulations: Sections 1151.4(a), 1156.3, 1156.7(c), (d), 1160.2, 1160.3, and 1160.5, La- bor Code. General reference for

section 20162 of the Board’s regulations: Sections 1151.3, 1151.4(a), 1156.3, 1156.7(c), (d), 1160.2, 1160.3, and 1160.5, Labor Code. General reference for

section 20164 of the Board’s reg- ulations: Sections 1151.3, 1151.4(a), 1156.3, 1156.7(c), (d), 1160.2, 1160.3, and 1160.5, Labor Code. General reference for

section 20166 o f t h e B o a r d ’ s r e g u l a- tions:

Section 1151.3, 1151.4(a), 1156.3, 1156.7(c), (d), 1160.2, 1160.3, and 1160.5, Labor Code. General ref- erence for

section 20169 of the Board’s regulations: Sections 1151.3, 1151.4(a), 1160.2, 1160.3, and 1160.5, Labor Code. General reference for

section 20170 of the Board’s regulations: Sections 1151.3, 1151.4(a), 1156.3, 1156.7(c), (d), 1160.2, 1160.3, and 1160.5, La- bor Code. General reference for

section 20190 of the Board’s regulations: Sections 1140.2(b), 1156.3, 1160.2, and 1160.5, Labor Code. General reference for

section 20192 o f t h e B o a r d ’ s r e g u l a t i o n s : S e c- tions 1142(b), 1151.4(a), 1156.3, 1156.7(c), (d), 1160.2, 1160.3, and 1160.5, Labor Code. General reference for

section 20216 of the Board’s regulations: Sections 1151(

a) and 1160.2, Labor Code. General reference for

section 20217 of the Board’s regulations: Sections 1151(a), and 1160.2, Labor Code. General reference for

section 20219 of the Board’s regulations: Sections 1149, 1151.4(a), 1160.2, and 1160.5, Labor Code. Gen- eral reference for

section 20220 o f t h e B o a r d ’ s r e g- ulations: Sections 1151(a), 1160.2, 1160.5, and 1160.6, Labor Code. General reference for

section 20222 of the Board’s regulations: Sections 1151.4(a), 1160.2, and 1160.3, Labor Code. General reference for

section 20235 of the Board’s regulations: Sections 1160.2, Labor Code. General reference for

section 20236 of the Board’s regulations: Sections 1160.2 and 1160.3, Labor Code. General reference for

section 20238 of the Board’s regulations: Sections 1160.2 and 1160.3, Labor Code. General reference for

section 20240 of the Board’s regulations: Sections 1160.2 and 1160.3, Labor Code. General reference for

section 20241 of the Board’s regulations: Sections 1160.2 and 1160.3, Labor Code. General reference for

section 20242 of the Board’s regulations: Sections 1160.2 and 1160.3, Labor Code. General reference for

section 20243 of the Board’s regulations: Sections 1160.2 and 1160.3, Labor Code. General reference for

section 20246 of the Board’s regulations:

Section 1160.2, Labor Code. General reference for proposed

section 20247.1 of the Board’s regulations: Sections 1160.2 and 1160.3, La - bor Code. General reference for

section 20248 of the Board’s regulations: Sections 1160.2 and 1160.3, La - bor Code. General reference for

section 20249 of the Board’s regulations: Sections 1160.2 and 1160.3, La - bor Code. General reference for

section 20250 of the Board’s regulations: Sections 1151, 1160.2, and 1160.3, Labor Code. General reference for

section 20262 of the Board’s regulations: Sections 1145, 1160.2, 1160.3, Labor Code. General reference for

section 20274 of the Board’s regulations: Sections 1151(

a) and 1160.2, Labor Code. General reference for

section 20282 of

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1431 the Board’s regulations:

Section 1160.3, Labor Code. General reference for

section 20286 of the Board’s regulations: Sections 1160.2 and 1160.3, Labor Code. General reference for

section 20290 of the Board’s regulations:

Section 1160.3, Labor Code. General ref- erence for

section 20291 of the Board’s regulations:

Section 1160.3, Labor Code. General reference for sec- tion 20299 of the Board’s regulations:

Section 1161, Labor Code. General reference for

section 20300 of the Board’s regulations: Sections 1142(b), 1156.2, 1156.3, 1156.4, 1156.5, 1156.6, and 1156.7, Labor Code. Gen- eral reference for

section 20310 of the Board’s regula- tions: Sections 1156.3, 1156.4, and 1157.3, Labor Code. General reference for

section 20305 of the Board’s regulations:

Section 1157, Labor Code. General ref - erence for

section 20325 of the Board’s regulations:

Section 1156.3, Labor Code. General reference for sec- tion 20330 of the Board’s regulations:

Section 1156.3, Labor Code. General reference for

section 20335 of the Board’s regulations:

Section 1156.3, Labor Code. General reference for

section 20350 of the Board’s regulations: Sections 1156.3, 1156.7, and 1157.2, La - bor Code. General reference for

section 20355 of the Board’s regulations:

Section 1156.3, Labor Code. Gen- eral reference for

section 20360 of the Board’ s regu- lations: Sections 1156.3 and 1156.7, Labor Code. Gen- eral reference for

section 20363 of the Board’s regula- tions: Sections 1156.3 and 1157, Labor Code. General reference for

section 20365 of the Board’s regulations:

Section 1156.3, Labor Code. General reference for

section 20370 of the Board’s regulations: Sections 1142(b), 1145, 1151, 1151.3, 1156.3, 1156.7(c), (d), La- bor Code. General reference for

section 20375 of the Board’s regulations: Sections 1156.3(

c) and 1157.2, Labor Code. General reference for

section 20377 of the Board’s regulations:

Section 1156.3, Labor Code. General reference for

section 20382 of the Board’s regulations: Sections 1155.2 and 1156.6, Labor Code. General reference for

section 20385 of the Board’s regulations: Sections 1142(b), 1156, 1156.2, Labor Code. General reference for

section 20390 of the Board’s regulations: Sections 1156.3 and 1156.7(c), (d), Labor Code; Montebello Rose Co. v. ALRB (1981) 119 Cal.App.3d 1; Cattle Valley Farms (1982) 8 ALRB No. 24. General reference for

section 20393 of the Board’s regulations: Sections 1142(b), 1156.3, and 1156.7, La- bor Code. General reference for

section 20400 of the Board’s regulations: Sections 1156.3, 1164, 1164.11, and 1164.12, Labor Code. General reference for sec- tion 20401 of the Board’s regulations: Sections 1164, 1164.11, and 1164.12, Labor Code. General reference for

section 20402 of the Board’s regulations: Sections 1151, 1164, 1164.11, and 1164.12, Labor Code. General reference for

section 20407 of the Board’s regulations:

Section 1164, Labor Code. General reference for sec- tion 20408 of the Board’s regulations:

Section 1164.3, Labor Code. General reference for proposed

section 20410 of the Board’s regulations: Sections 1164 and 1164.10, Labor Code. General reference for

section 20910 of the Board’s regulations: Sections 1152 and 1157.3, Labor Code. POLICY STATEMENT OVERVIEW The ALRB is a quasi–judicial administrative agen - cy charged with administering and enforcing the ALRA, a landmark law enacted in 1975 that extended collective bargaining rights to farmworkers who were excluded from the coverage of the National Labor Relations Act. The ALRB enforces and protects the organizational rights of farmworkers and oversees la - bor relations disputes between growers and the unions representing farmworkers.

The proposed regulations and amendments update the Board’s filing and service requirements; replace gendered terms with non–gendered language; update procedures in unfair labor practice cases and clarify the rights and obligations of parties in unfair labor practice proceedings; update requirements in repre - sentation election proceedings; and adopt procedures governing requests for supplemental mandatory me - diation and conciliation under Labor Code

section 1164.10. These proposed regulatory actions are intended to improve and make more efficient the Board’s admin - istrative processes, and to clarify the respective rights and obligations of parties to the Board’s proceedings. The Board announced at its June 23, 2020 public meeting that it would be commencing a review of its regulations for purposes of improving the Board’s ad- ministrative procedures, and since then solicited input from stakeholders on proposals.

The Board’s designat- ed regulations subcommittee held a workshop to re - ceive input or proposals from stakeholders on March 11, 2021, and presented recommendations to the Board at its April 13, 2021 public meeting on concepts for proposed regulatory actions. The Board approved the subcommittee’s recommendations. The subcommittee published proposed regulatory language in underline and strike–through format on September 22, 2021, reflecting the concept propos - als approved by the Board.

The Board approved the subcommittee’s proposed regulatory language con - cerning its filing and service provisions, representa - tion proceeding proposals, gender–neutralizing pro - visions, and supplemental mandatory mediation and conciliation. The Board directed the subcommittee to reconsider and modify proposals concerning unfair la- bor practice procedures. The subcommittee thereupon issued a notice on October 20, 2021, soliciting further public input re - garding its proposals. After considering the written

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1432 comments received, the subcommittee issued updated reports on February 11, 2022, with proposals regard - ing unfair labor practice procedures, representation procedures, and supplemental mandatory mediation and conciliation. On February 22, 2022, the Board ap- proved the subcommittee’s proposals and directed the subcommittee to commence a formal rulemaking. INFORMATIVE DIGEST A. Adoption of New Sections Proposed

Section 20247.1 requires a case manage- ment conference to be held in an unfair labor practice case between the parties and assigned administrative law judge. Proposed

Section 20410 adds procedures to govern supplemental mandatory mediation and conciliation proceedings between a certified labor organization and agricultural employer. B. Amendments to the Text of Existing Regulations

Section 20150 describes formatting and document requirements for filings with the Board. The proposed amendments provide for easier–to–read font require - ments, describe new formatting requirements for elec- tronically filed documents and documents not elec - tronically filed, and requires parties or their represen - tatives to include an email address with their address on the filing caption page.

Section 20155 states every document filed with the Board must be signed by the filing party or its repre - sentative. The proposed amendments allow for use of electronic signatures and replace gendered terms with non–gendered language.

Section 20160 states the office locations where parties should file certain types of documents and the number of copies to be submitted. The proposed amendments require all parties represented by coun - sel or other representative to file documents with the Board electronically, while parties not represented by counsel or other representative may continue to file hard–copy documents with the Board. The pro - posed amendments remove the requirements a party file multiple copies of a document with the Board for hard–copy filings.

Section 20162 requires parties or their representa - tives to include their names, addresses, and telephone numbers on their initial filings with the Board or to file a notice of appearance with the executive secretary stating such information. The proposed amendments require parties or their representatives also to provide their email addresses on their initial filings or in a no - tice of appearance.

Section 20164 describes service requirements for filings in Board proceedings. The proposed amend - ments require the Board and represented parties to file and serve documents electronically, while parties not represented may file hard–copy documents with the Board and must be served with hard–copies of filings by the Board or other parties.

Section 20166 describes requirements for serving parties with filings in proceedings before the Board. The proposed amendments incorporate proposed new electronic filing requirements and replace gendered terms with non–gendered language.

Section 20169 states requirements for electroni - cally filing documents with the Board. The proposed amendments require parties represented by counsel or other representative to file documents with the Board electronically, while unrepresented parties may file hard–copy documents with the Board. The proposed amendments further describe certain formatting re - quirements for electronic filings, including pagina - tion, document naming, and file–size requirements.

The proposed amendments also change the deadline from 4:00 p.m. to 5:00 p.m. for a document filed elec- tronically to be considered filed that same business day. The proposed amendments also describe methods for electronically serving other parties. The proposed amendments state a party may request permission to file a document in hard–copy form where file–size or other technical complications prevent use of electronic filing.

Section 20170 describes the calculation of time pe - riods for filings with the Board based on when a docu- ment is served. The proposed amendments clarify that service of a document may be done by mail, overnight delivery, in person, or electronic filing, and the time - frame for another party to file a document will run from the date of one of these actions.

The proposed amendments also change the added time to respond to a document served by mail from 3 days to 5 days, provide that 2 business days shall be added to the time to respond to a document served by overnight courier, and state that no extra days are added to the time to respond to a document served electronically. The pro- posed amendments also remove references to outdated methods of filing or service by facsimile.

Section 20190 describes requirements for filing a request for a continuance of hearing dates. The pro - posed amendments add references to settlement con - ferences a party may seek to continue. The proposed amendments also extend the length of a continuance an administrative law judge may grant after a hear - ing has begun from two business days to 10 business days, and state that requests for continuances of longer than 10 business days must be supported by extraordi- nary circumstances. The proposed amendments also make other technical non–substantive changes to the language.

Section 20192 states the requirements for a party to file a request for an extension of time to perform some action, including that a party requesting an extension

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1433 must state the position of the other party when filing its request. The proposed amendments require a par - ty requesting an extension of time to include with the request a declaration stating the other party’s position on the request or, if the party was unable to obtain the other party’s position, a description of the party’s efforts to contact the other party to obtain its position.

Section 20216 directs a regional director to inves - tigate the allegations contained in an unfair labor practice charge. The proposed amendments allow the regional director limited authority to serve interrog - atories to the charged party during the investigation.

Section 20217 states procedures governing sub - poenas issued by the General Counsel during the investigation of an unfair labor practice charge. The proposed amendments confirm the authority of the General Counsel to issue subpoenas requiring the at - tendance of a witness to provide testimony, in addition to subpoenas requiring the production of documents. The proposed amendments also require a party object- ing to a subpoena on privilege grounds to produce a privilege log. The proposed amendments also provide a party opposing an application to enforce a subpoena an opportunity to respond to the application.

The pro - posed amendments also confirm that the Board may delegate authority to the General Counsel to seek judi- cial enforcement of a subpoena, and also that the Gen- eral Counsel may seek evidentiary sanctions against a party who refuses to comply with a subpoena. The proposed amendments also replace gendered terms with non–gendered language and make other techni - cal non–substantive changes to the language.

Section 20219 a l l o w s f o r r e v i e w o f a r e g i o n a l d i- rector’s decision to dismiss an unfair labor practice charge. The proposed amendments allow the Gener - al Counsel to grant review on the General Counsel’s own motion of a dismissal of an unfair labor practice charge filed by an agricultural employee. The pro - posed amendments also update references to the fil - ing and service regulations to reflect requirements that represented parties file documents electronically while permitting unrepresented parties to file docu - ments non–electronically.

Section 20220 describes the process by which the General Counsel issues a complaint based on an un - fair labor practice charge. The proposed amendments replace gendered terms with non–gendered language.

Section 20222 all o ws f or the amendment or wi th- drawal of unfair labor practice charges. The proposed amendments replace gendered terms with non–gen - dered language.

Section 20235 allows a respondent in an unfair la - bor practice case to serve on the General Counsel a request for particulars seeking more information if the allegations of the complaint lack specificity. The proposed amendments allow the General Counsel to serve a respondent with a request for particulars where an answer asserts a defense based on a charging par - ty’s immigration status.

Section 20236 allows a party in an unfair labor practice proceeding to request documents from anoth- er party before hearing. The proposed amendments re- quire a party objecting to the production of documents based on a claim of privilege to provide a privilege log.

Section 20238 states the process for a party to com- pel another party to comply with pre–hearing discov - ery requests, and allows an administrative law judge to order evidentiary sanctions against a non–comply - ing party. The proposed amendments clarify that evi - dentiary sanctions may be ordered in cases involving a party’s failure to comply with a subpoena.

Section 20240 describes procedures for filing and responding to motions before or after hearing in un - fair labor practice proceedings. The proposed amend - ments incorporate other proposed changes to require electronic filing by represented parties, as well as to remove references to outdated methods of service by facsimile. The proposed amendments also replace gendered terms with non–gendered language.

Section 20241 describes procedures for filing mo - tions between the time of a prehearing conference and the close of a formal hearing in unfair labor practice proceedings. The proposed amendments incorporate other proposed changes to require electronic filing by represented parties, as well as remove the requirement a party file multiple copies of a document with the Board.

Section 20242 states the procedure for a party to file an application with the Board seeking review of an order by an administrative law judge or executive secretary. The proposed amendments clarifies that the Board will not consider an application seeking review of issues that can be reviewed in exceptions to a fi - nal administrative law judge decision, provide a party who seeks to oppose an application to the Board an opportunity to respond to it, and make other technical non–substantive changes to the language.

Section 20243 allows a party in an unfair labor practice case to make a motion to the administrative law judge for a decision to be entered in its favor after the other party’s presentation of evidence. The pro - posed amendments replace gendered terms with non– gendered language.

Section 20246 describes procedures for a party to apply to an administrative law judge for permission to take the deposition of a witness. The proposed amend- ments remove the requirement a party file multiple copies of a document with the Board and replace gen- dered terms with non–gendered language.

Section 20248 allows an administrative law judge the option to hold a settlement conference with parties to an unfair labor practice proceeding. The proposed

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1434 amendments requires administrative law judges to hold settlement conferences, and make other technical non–substantive changes to the language.

Section 20249 describes prehearing conferences held between the parties and administrative law judge in unfair labor practice proceedings. The proposed amendments correct a typographical error, replace gendered terms with non–gendered language, and remove references to outdated methods of service or filing by facsimile.

Section 20250 states the procedures for parties issu- ing and responding to subpoenas in unfair labor prac - tice proceedings. The proposed amendments require a party who objects to production of documents based on a claim of privilege to produce a privilege log. The proposed amendments also update references to the filing and service regulations to reflect requirements that represented parties file documents electronically while permitting unrepresented parties to file docu - ments non–electronically.

The proposed amendments also confirm that the Board may delegate authority to the General Counsel to seek judicial enforcement of a subpoena, and also that the General Counsel may seek evidentiary sanctions against a party who refuses to comply with a subpoena. The proposed amendments also provide a party opposing an application to enforce a subpoena an opportunity to respond to the applica - tion. The proposed amendments also replace gendered terms with non–gendered language and make other technical non–substantive changes to the language.

Section 20262 describes the authority of adminis - trative law judges in Board proceedings. The proposed amendments replace gendered terms with non–gen - dered language, and remove a requirement that multi - ple copies of a statement of facts describing a party’s misconduct be filed with the executive secretary.

Section 20274 requires the production of witness statements after a witness has testified in an unfair labor practice hearing. The proposed amendments re - place gendered terms with non–gendered language.

Section 20282 states the procedures and require - ments for filing exceptions with the Board to an ad - ministrative law judge’s decision in an unfair labor practice case. The proposed amendments incorporate other proposed changes to require represented parties to file documents electronically with the Board, re - move the requirement a party file multiple copies of a document with the Board, remove the requirement that the Board physically return to a party portions of a legal brief exceeding the page limit, and make other non–substantive technical changes.

Section 20286 states an administrative law judge’s decision in an unfair labor practice case becomes final if exceptions are not filed with the Board, and provides parties may file motions for reconsideration of any Board order or decision. The proposed amendments remove a reference to the

section regarding filing or serving documents by facsimile, which the Board pro- poses to repeal.

Section 20290 provides for the commencement of proceedings to secure compliance with a Board order. The proposed amendments replace gendered terms with non–gendered language, update referenc - es to requirements for filing a notice of hearing, and make other non–substantive technical changes in the language.

Section 20291 describes the contents of a compli - ance specification or notice of hearing. The proposed amendments replace gendered terms with non–gen - dered language and make other non–substantive tech - nical changes in the language.

Section 20299 provides rules governing the Agri - cultural Employee Relief Fund. The proposed amend- ments make non–substantive technical changes in the language.

Section 20300 states the requirements for filing a petition for certification. The proposed amendments allow a petition for certification to be signed by hand or electronically and remove the requirement of fil - ing multiple copies of a certification petition with the Board. The proposed amendments also allow service of a certification petition on a security guard stationed at a location where employees are working, and state the petitioning party must notify the employer by email and overnight delivery where service of the peti- tion is made on anyone other than an officer, owner, or director of the employer.

The proposed amendments also confirm a regional director’s authority to dismiss a petition where there is pending an unfair labor prac- tice complaint against the employer containing certain allegations of unlawful conduct, and state the region - al director may order an election to proceed, with the ballots cast in the election impounded, if there are charges of unfair labor practices against the employer for which no complaint has yet issued. The proposed amendments also replace gendered terms with non– gendered language and make other technical non– substantive changes to the language.

Section 20305 describes the required contents of a petition for certification. The proposed amendments require the representative of the party filing the pe - tition to include an email address with the required contact information.

Section 20310 s t a t e s t h e r e q u i r e m e n t s f o r a n e m- ployer after a representation petition is filed. The pro- posed amendments require the employee list to be produced by the employer also include employees’ telephone numbers and email addresses, and state the employer must produce an electronic list if it main - tains the information electronically. The proposed amendments also require an employer to maintain ac - curate records of its employees’ contact information.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1435 The proposed amendments also require an employer to provide the email address of a labor contractor sup- plying labor during the relevant pay period(s), in addi- tion to the current requirement the employer provide the labor contractors’ names, addresses, and telephone numbers. The proposed amendments also replace gen- dered terms with non–gendered language and make other technical non–substantive changes to the lan - guage. The proposed amendments also update the ref- erence citations for the regulation.

Section 20325 describes the required contents of a petition for intervention in a representation election. The proposed amendments require the representative of the party seeking to intervene to include an email address with the required contact information. The proposed amendments also add authority and refer - ence citations.

Section 20330 states procedures applicable to rep - resentation election proceedings when more than one petition for certification is filed. The proposed amend- ments make technical non–substantive changes to the language.

Section 20335 provides for the consolidation or severance of proceedings involving representation election petitions or election objections and unfair la - bor practice proceedings. The proposed amendments replace gendered terms with non–gendered language and make other non–substantive technical changes in the language.

Section 20350 describes representation election procedures. The proposed amendments replace gen - dered terms with non–gendered language.

Section 20355 describes procedures for challeng - ing the eligibility of an individual to vote in a repre - sentation election. The proposed amendments replace gendered terms with non–gendered language, and add authority and reference citations.

Section 20360 states the process for counting bal - lots cast in a representation election, and confirms the Board’s authority to impound (i.e., securely store but not count) ballots cast in an election where there are unresolved allegations of misconduct or unlawful con- duct. The proposed amendments state ballots may be impounded based on unresolved unfair labor practice allegations, and specify the timeframes for which the ballots may remain impounded. The proposed amend- ments also add authority and reference citations.

Section 20363 states the procedure for a party to file challenges to ballots cast in a representation elec - tion. The proposed amendments update the references to filing and service requirements to remove a refer - ence to filing or service by facsimile, remove the re - quirement a party file multiple copies of a document with the Board, and replace gendered terms with non– gendered language.

Section 20365 describes procedures for filing and resolving objections to a representation election. The proposed amendments require a represented party to file objections electronically and an unrepresented party to file objections personally with the executive secretary. The proposed amendments also remove the requirement a party file multiple copies of the objec - tions with the Board and make other technical non– substantive changes to the language.

Section 20370 describes procedures for holding a hearing to resolve disputes involving election objec - tions, challenges to ballots cast in an election, and other similar matters involving a labor organization’s certification. The proposed amendments remove for - matting requirements duplicative of requirements stated elsewhere in the Board’s regulations, remove the requirement a party file multiple copies of a doc - ument with the Board, remove the requirement that the Board physically return to a party pages of a legal brief exceeding the page limit on exceptions filed with the Board, and make other technical non–substantive language changes to the language.

Section 20375 sets forth the process for conducting run–off elections when no party receives a majority of valid votes cast in a representation election. The proposed amendments remove an outdated reference to contacting a party by telegram, replace gendered terms with non–gendered language, and make other technical non–substantive changes in the language.

Section 20377 s ta tes rul es f o r h o l din g r ep r es en ta- tion elections in strike circumstances. The proposed amendments replace gendered terms with non–gen - dered language.

Section 20382 states the process for a labor organi- zation to file a petition to extend its certification. The proposed amendments remove the requirement a party file multiple copies of a document with the Board, and make other technical non–substantive changes to the language. The proposed amendments also add author- ity and reference citations.

Section 20385 states the process for resolving dis - putes concerning clarification of a bargaining unit or amending a labor organization’s certification. The pro- posed amendments require represented parties to file exceptions to a regional director’s report electronically and unrepresented parties to file exceptions in person or by registered mail. The proposed amendments also remove the requirement a party file multiple copies of documents with the Board.

Section 20390 states the procedures for filing a pe - tition to decertify a labor organization as the exclusive bargaining representative of an employer’s agricultur- al employees. The proposed amendments confirm the authority of a regional director to dismiss a decertifi - cation petition where there is pending an unfair labor practice complaint against the employer containing

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1436 certain allegations of unlawful conduct or, alternative- ly, may order an election to proceed with the ballots to be impounded. The proposed amendments also state the regional director may order an election to pro - ceed, with the ballots cast in the election impounded, if there are charges of unfair labor practices against the employer for which no complaint has yet issued. The proposed amendments also require a party filing a decertification petition to provide the email address of its representative, and replace gendered terms with non–gendered language and make other technical non–substantive changes to the language.

Section 20393 states the procedure by which a par - ty may obtain review of a dismissal of a representation petition or reconsideration of a Board order or decision in a representation proceeding. The proposed amend - ments update references to the regulations stating re - quirements for serving parties with documents filed with the Board to remove references to

section 20168 regarding filing or serving documents by facsimile. The proposed amendments also remove the require - ment a party file multiple copies of a request for review of a regional director dismissal of a representation petition, replace gendered terms with non–gendered language, and make other technical non–substantive changes to the language.

Section 20400 describes the requirements for a re - quest for referral to mandatory mediation and concili- ation. The proposed amendments update references to the regulations stating requirements for serving par - ties with documents filed with the Board to remove references to remove references to

section 20168 re - garding filing or serving documents by facsimile.

Section 20401 describes the requirements for filing an answer to a request for referral to mandatory me - diation and conciliation. The proposed amendments update a reference to the regulations stating require - ments for serving parties with documents filed with the Board to remove reference to remove references to

section 20168 regarding filing or serving documents by facsimile.

Section 20402 states the procedures for Board re - view of a request for referral to mandatory mediation and conciliation. The proposed amendments update references to the regulations stating requirements for serving parties with documents filed with the Board to remove references to remove references to

section 20168 regarding filing or serving documents by fac - simile. The proposed amendments also remove re - quirement a party file multiple copies with the Board of any exceptions to an administrative law judge de - cision, and made other technical non–substantive changes to the language.

Section 20407 describes the mandatory mediation and conciliation process. The proposed amendments remove a reference to

section 20168 regarding filing or serving documents by facsimile, replace gendered terms with non–gendered language, and make other technical non–substantive changes to the language.

Section 20408 describes the procedure for obtain - ing Board review of a mediator’s report in mandatory mediation and conciliation proceedings. The proposed amendments remove a reference to

section 20168 re - garding filing or serving documents by facsimile, and make other technical non–substantive changes to the language.

Section 20910 allows a labor organization to ob - tain a list of an agricultural employer’s agricultural employees before filing a petition for a representation election if the labor organization can show support from at least 10% of the employees. The proposed amendments allow a labor organization to obtain a pre–petition list of employees without the requirement of filing a previous notice of intent to take access, and provide the labor organization may obtain only one employee list in any 120–day period. The proposed amendments also replace gendered terms with non– gendered language. C. Repeal of Existing Regulations

Section 20168 states rules for filing and serving documents by facsimile. The proposed repeal of this

section is consistent with the Board’s proposal to up - date its filing and service requirements to remove ref - erences to outdated methods of filing or service in fa - vor of electronic filing in most circumstances. D. Amendments only to the Authority and Reference Citations of Existing Regulations None. For more information regarding specific proposed regulations or amendments to the existing regulations, please refer to the proposed regulatory language.

CONSISTENT AND COMPATIBLE WITH EXISTING STATE REGULATIONS The Board has determined the proposed regulatory adoptions and amendments are not inconsistent or in - compatible with existing regulations. The ALRB has exclusive jurisdiction to enforce and administer the provisions of the ALRA. There are no other regula - tions adopted by any other state agency that affect the procedures or laws affected by the proposed regula - tory adoptions and amendments. Thus, the Board has concluded these regulations are neither inconsistent nor incompatible with existing state regulations.

ANTICIPATED BENEFITS OF THE PROPOSED REGULATIONS The proposed rulemaking is intended to modernize, improve, and make more efficient the ALRB’s admin- istrative procedures.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1437 Filing and Service Requirements The proposed changes are modernized to eliminate outdated methods of filing and serving documents, such as “mailgram,” “telegraph,” and “facsimile,” as well as requirements that parties file multiple copies of documents with the Board. Instead, the proposed changes generally require electronic filing and service of documents, consistent with trends among courts and other administrative agencies, while allowing parties who represent themselves to continue to file hard–copy documents with the Board.

The proposed changes also provide that documents may be signed electronically. Representation (Election) Proceedings The proposed regulatory action updates provi - sions regarding the ALRB’s election proceedings to modernize certain terms. The proposed changes add categories of contact information for workers to be included on the list of employees an employer must produce after the filing of a representation petition.

The proposed changes also offer more clarity to par - ties in election proceedings by specifically describing circumstances that may warrant dismissal of a peti - tion for an election (i.e., blocking an election) or the impounding of ballots in an election (i.e., where bal - lots are cast but not counted pending the resolution of related allegations of unlawful conduct by a party). Such principles previously have been addressed and developed by the Board through administrative orders or decisions on a case–by–case basis.

By defining in regulation certain circumstances that may warrant dismissal of an election petition or impounding ballots cast in an election, the Board seeks to provide more clarity to the parties in such proceedings and guid - ance to staff administering election proceedings. With respect to the impounding of ballots, the Board also proposes to introduce timeframes and deadlines un - der which ballots are impounded. This is intended to make such proceedings more efficient, consistent with the expedited timeframes in which election proceed - ings otherwise occur.

Unfair Labor Practice Proceedings The proposed regulatory action aims to improve efficiencies in the ALRB’s unfair labor practice pro - ceedings. To aid in the general counsel’s investigation of a charge, the proposed changes also allow a regional director the ability to serve on a charged party a limit- ed number of interrogatories to ensure identification of the proper parties to a proceeding. Following issuance of an unfair labor practice complaint, the proposed changes would add a case management conference re- quirement.

This will promote further communication between the parties, which is vital to the resolution of labor disputes. It also will allow the parties and as - signed judge to begin narrowing the issues in dispute to make the hearings more efficient. The proposed changes also will allow the general counsel a limited right to seek further information from a respondent who asserts a defense in an an - swer to an unfair labor practice complaint based on a worker’s immigration status.

Respondents currently have the ability to seek such further information from the general counsel when a complaint contains vague or ambiguous allegations, and this proposed change would allow the general counsel a similar limited right. This will allow further refinement and narrow - ing of issues in dispute for cases that ultimately go to hearing.

While settlement conferences generally are held in unfair labor practice cases as a matter of practice, the proposed changes would require settle - ment conferences in all unfair labor practice cases, thus ensuring an opportunity for the parties to attempt to resolve their dispute consistent with the policy of encouraging the informal resolution of labor disputes.

In addition, the proposed changes would allow parties to agree to short continuances or extensions of time, with approval of the assigned judge, without having to satisfy burdensome requirements or added procedures for approving such requests, as is the case under the Board’s current regulations. This will give the parties and judge more control over scheduling issues where only short continuance or extensions are requested. The proposed changes to the Board’s unfair labor practice regulations also seek to more clearly state certain rights and obligations of the parties in such proceedings.

The proposed changes will require priv - ilege logs be produced where a party objects to a dis - covery request or subpoena on attorney–client priv - ilege grounds. Such changes will assist other parties and assigned judges in evaluating such privilege ob - jections on a much more timely and informed basis, and thus will serve to make resolution of any such dis- putes more efficient.

The proposed changes to the Board’s unfair labor practice regulations also make clear certain matters previously left to development through the Board’s administrative orders or decisions or otherwise estab - lished in the Board’s precedent. The proposed chang - es will state clearly the standard a party must satisfy before the Board will grant an application for interim review of an administrative law judge’s ruling. This standard currently is stated in the Board’s precedent, but stating the standard in the regulation governing in- terim appeals is intended to provide more clarity to the parties.

The proposed changes also confirm the gener- al counsel may issue investigatory subpoenas requir - ing testimony from witnesses, and further that a par - ty’s disobedience of a subpoena may be grounds for the imposition of evidentiary sanctions. While these matters are established in case precedent, adding these

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1438 terms to the regulations will provide more clarity re - garding the parties’ respective rights and obligations in unfair labor practice proceedings. Mandatory Mediation and Conciliation The proposed regulatory action specifies proce - dures for handling requests for supplemental man - datory mediation and conciliation pursuant to Labor Code

section 1164.10, which became effective on Jan- uary 1, 2019. No such proceedings have been conduct- ed by the Board since the statute took effect, and the statute does not specify the rules applicable to such proceedings. The proposed regulatory action informs the parties of the applicable rules for supplemental mandatory mediation and conciliation, as well as their respective rights and obligations in such proceedings. Non–Gendered Language The proposed regulatory changes replace gendered terms with non–gendered language, in accordance with Assembly Concurrent Resolution No. 260 (Sep - tember 5, 2018).

NO EXISTING AND COMPARABLE FEDERAL REGULATION OR STATUTE The Board has determined that there are no existing, comparable federal regulations or statutes addressing the matters encompassed by this regulatory action. Agricultural employees are excluded from coverage under the National Labor Relations Act, and labor re - lations between agricultural employers and employees are governed by state law under the ALRA.

As the proposed regulatory changes apply solely to agricul - tural employers and employee organizations under the jurisdiction of the ALRA, the Board has con - cluded that these regulations are neither inconsistent nor incompatible with existing federal regulations or statutes.

DISCLOSURES REGARDING THE PROPOSED REGULATORY ACTION The Board has made the following initial determinations: Mandate, cost or savings imposed on local agen - cies and school districts: The proposed action will not impact local agencies or school districts, result in any costs or savings to local agencies or school districts, or impose any new mandate on local agencies or school districts that must be reimbursed pursuant to Govern - ment Code

section 17500 et seq. Cost or savings to state agency: The proposed ac - tion will not result in any new costs or savings to any state agency. Non–discretionary cost or savings imposed upon local agencies: The proposed action will not result in any non–discretionary cost or savings to local agencies. Cost or savings in federal funding to the state: The proposed action will not result in any new costs or sav- ings to the state.

Cost impact on private persons or directly affected businesses: The Board is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action. Significant adverse economic impact on business, including the ability of California businesses to com - pete with businesses in other states: The proposed ac- tion will have no significant adverse economic impact on California businesses. Significant effect on housing costs: The proposed action will have no effect on housing costs.

Business Reporting Requirement: The proposed ac- tion will not require a report to be made. The Board has determined the proposed regulations will not affect small business because the proposed regulations will not result in any additional costs or burdens on small businesses. RESULTS OF THE ECONOMIC IMPACT ASSESSMENT The Board concludes that the adoption of the pro - posed regulations and amendments will neither create nor eliminate jobs in the State of California, nor result in the elimination of existing businesses, or create or expand businesses in the State of California.

BEN EFIT A NA LYSIS The ALRB aims to improve efficiencies in its ad - ministrative processes and provide more clarity to par- ties engaged in proceedings before the Board. More efficient procedures, the promotion of fuller commu - nication between parties, and clearer statements of the parties’ rights and obligations, as well as the standards applied by the Board in adjudicating disputes, will im- prove the ALRB’s resolution of labor disputes. Earlier resolution of labor disputes will lead to more timely remedies to farmworkers.

The proposed regulatory ac- tion will not adversely affect the health and welfare of California residents, worker safety, or the state’s envi- ronment. The proposed regulatory action will further the policies of the ALRA by facilitating more time - ly resolution of labor disputes. Stable labor relations and efficient dispute resolution will benefit California residents’ welfare, and lead to less instances or possi - bilities of disruptions in the state’s vital agricultural industry.

Modernizing the Board’s filing requirements will benefit the state’s environment by removing the necessity in most cases of producing and delivering

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1439 paper copies of documents filed with the Board. Elim- inating gendered language in the Board’s regulations will make the Board’s regulations more inclusive. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5, subdivision (a)(13), a rulemaking agency must determine that no reasonable alternative considered by the agency or that has otherwise been identified and brought to the attention of the agency would be more effective in carrying out the purpose for which the ac- tion is proposed, would be as effective and less bur - densome to affected private persons than the proposed action, or would be more cost–effective to affected pri- vate persons and equally effective in implementing the statutory policy or other provision of law.

The Board has solicited input from the public and in- terested stakeholders concerning proposed regulatory actions at its public meetings over the past two years, including at the Board’s April 13, 2021 public meet - ing at which the concepts proposed to be implemented through this rulemaking action were discussed, the Board’s October 12, 2021 public meeting at which the regulatory language included with this notice was dis- cussed, and the Board’s February 22, 2022 meeting at which the regulatory proposals were approved for rulemaking.

No reasonable alternatives to the regula - tory actions proposed to be taken by the Board here have been identified or brought to its attention by any member of the public or stakeholder. The Board invites interested persons to present statements or arguments with respect to alternatives to the proposed regulations at the scheduled hearing or during the written comment period.

CONTACT PERSONS Any questions or suggestions regarding the pro - posed action should be directed to: Santiago Avila–Gomez, Executive Secretary Agricultural Labor Relations Board 1325 J Street, Suite 1900–B Sacramento, CA 95814 Email: Santiago.Avila–Gomez@alrb.ca.gov The backup person for these inquiries is: Todd M.

Ratshin, Chief Board Counsel Agricultural Labor Relations Board 1325 J Street, Suite 1900–B Sacramento, CA 95814 Email: Todd.Ratshin@alrb.ca.gov Please direct requests for copies of the proposed text (i.e., the express terms) of the regulations, the initial statement of reasons, the modified text of the regu - lations, if any, or other information upon which the rulemaking is based, to Santiago Avila–Gomez at the above address.

PRELIMINARY ACTIVITIES The ALRB announced it would be undertaking a review of its regulations at its June 23, 2020 public meeting, and at its August 11, 2020 public meeting in- vited the public and stakeholders to provide input on proposed regulatory actions and designated a subcom- mittee to present recommended rulemaking actions to the Board. The Board solicited public input again at its October 13 and December 8, 2020 public meetings. The Board’s regulations subcommittee held a work - shop for stakeholders to present regulatory proposals on March 11, 2021.

At the Board’s April 13, 2021 pub- lic meeting, the regulations subcommittee presented to the Board its concept proposals for regulatory ac - tions, which the Board approved. On September 22, 2021, the regulations subcommittee published its draft regulatory revisions for implementing the proposals approved by the Board, and presented the draft reg - ulatory revisions to the Board at its October 12, 2021 public meeting.

The Board approved the subcommit - tee’s proposed regulatory language concerning its fil - ing and service provisions, representation proceeding proposals, gender–neutralizing provisions, and sup - plemental mandatory mediation and conciliation. The Board directed the subcommittee to reconsider and modify its proposals concerning unfair labor practice procedures. The subcommittee thereupon issued a notice on October 20, 2021, soliciting further public input re - garding its proposals.

After considering the written comments received, the subcommittee issued updated reports on February 11, 2022, with proposals regard - ing unfair labor practice procedures, representation procedures, and supplemental mandatory mediation and conciliation. On February 22, 2022, the Board ap- proved the subcommittee’s proposals and directed the subcommittee to commence a formal rulemaking.

A VAILABILITY OF STATEMENT OF REASONS, TEXT OF PROPOSED REGULATIONS, AND RULEMAKING FILE The Board will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its office at the above address. As of the date this notice is published in the California Regulatory Notice Register, the rulemaking file con - sists of this notice, the express terms of the proposed regulations and the initial statement of reasons. Copies of these docu ments may be obt ained by cont acting San- tiago Avila–Gomez at the above address and are also

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1440 TITLE 10. DEPARTMENT OF FINANCIAL PROTECTION AND INNOV ATION The Commissioner of Financial Protection and In - novation (“Commissioner”) proposes to adopt new regulations under the Corporate Securities Law of 1968. Specifically, the Commissioner proposes to adopt

Section 260.236.2 of Subchapter 2 of

Chapter 3 of Title 10 of the California Code of Regulations. The proposed regulation relates to the implementation available on the Board’s web site at <https://www.alrb. ca.gov/statutes–regulations/regulatory–activity/ >. AVAILABILITY OF CHANGED OR MODIFIED TEXT After holding a hearing, if one is requested, and con- sidering all timely and relevant comments, the Board may adopt the proposed regulations substantially as described in this notice.

If the Board makes modifica- tions that are sufficiently related to the originally pro - posed text, the modified text with changes clearly in - dicated will be made available to the public for at least 15 days prior to the date on which the Board adopts the regulations as revised. Requests for copies of any modified regulations and/or the final statement of rea- sons should be sent to the attention of Santiago Avila– Gomez at the above address. The Board will accept written comments on the modified regulations for 15 days after the date on which they are made available.

A VAILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, copies of the final statement of reasons may be obtained by contacting Santiago Avila–Gomez at the above address or accessed on the ALRB’s web site as set forth below. A VAILABILITY OF DOCUMENTS ON THE INTERNET Copies of this notice of proposed action, the initial statement of reasons, and the text of the proposed reg- ulations in underline and strikeout, can be accessed on the ALRB’s web site at < https://www.alrb.ca.gov/ statutes–regulations/regulatory–activity/ > throughout the rulemaking process.

Written comments received during the written comment period will also be posted on the ALRB’s web site. The final statement of rea - sons or, if applicable, notice of a decision not to pro - ceed will be posted on the ALRB’s web site following the Board’s action. of continuing education requirements for Investment Adviser Representatives (“IARs”). AUTHORITY [Government Code

Section 11346.5, Subdivision (a)(2)] Corporations Code

section 25610. REFERENCE [Government Code

Section 11346.5, Subdivision (a)(2)] Corporations Code

section 25236. PUBLIC COMMENTS [Government Code

Section 11346.5, Subdivision (a)(17)] No public hearing is scheduled. Any interested person or his or her duly authorized representative may request, in writing, a public hearing pursuant to Government Code

section 11346.8, subdivision (a). The request for hearing must be received by the De - partment’s contact person designated below no later than 15 days prior to the close of the written comment period. WRITTEN COMMENT PERIOD [Government Code

Section 11346.5, Subdivision (a)(15)] Where to Submit Comments Any interested person, or his or her authorized representative, may submit written comments on the proposed regulatory action to the Department of Fi - nancial Protection and Innovation (“Department”), addressed as follows, by any of these means: Postal Mail Department of Financial Protection and Innovation Attention: Araceli Dyson 2101 Arena Boulevard Sacramento, CA 95834 Electronic Mail Comments may be submitted electronically to regulations@dfpi.ca.gov. Please identify the com - ments as PRO 07–21 in the subject line.

Time for Comments Comments may be submitted until January 16, 2023. If the final day for the acceptance of comments is a Saturday, Sunday or state holiday, the comment period will close on the next business day.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1441 INFORMATIVE DIGEST [Government Code

Section 11346.5, Subdivision (a)(3)] Policy Statement and Specific Benefits Anticipated from Regulatory Action [Government Code

Section 11346.5, Subdivision (a)(3)(C)] The objective of the proposed regulation is to adopt rules that implement continuing education re - quirements for Investment Adviser Representatives (“IARs”). Benefits of the proposed regulation include protect- ing consumers who use investment advisers to man - age their funds by ensuring that IARs remain compe - tent and knowledgeable about current industry regula- tions, developments, and best practices when handling their clients’ life savings. The proposed regulations will also ensure that IARs are familiar with ethical issues related to investment advising.

This will greatly contribute to overall investor protection. One impact of the regulations will be to improve the overall quality of investment advice and profession - alism provided by IARs to clients. Compliance with the proposed regulations will likely reduce the risk of investor losses due to mistakes, failure to understand investment products, fraud, and abuse. Additionally, the regulations will likely increase regulatory compli - ance in examinations conducted by the Department.

The Department also anticipates that consumers of investment adviser services will experience fewer in - stances of substandard services and will be subjected to fewer instances of unethical or illegal behavior as a result of these regulations.

Summary of Existing Laws and Regulations, and Effect of Proposed Action [Government Code

Section 11346.5, Subdivision (a)(3)(

A) Corporations Code

section 25236, subdivision (a), provides that no investment adviser licensed under the Corporate Securities Law of 1968, 1 shall conduct any business as such investment adviser in this state unless the investment adviser and all natural persons associated with such investment adviser meet such specified and appropriate standards with respect to training, experience and other qualifications as the Commissioner finds necessary or desirable. However, the

section does not specify the training necessary for natural persons associated with investment advisers. For instance, the statute does not specify how many units of training are required, what type of training content is acceptable, and what the applicable report - ing period is. IARs are tested for knowledge before they are reg - istered, but there is no mechanism to ensure that their 1 Corp. Code, § 25000 et seq. level of knowledge and competence is maintained or expanded.

By comparison, most other financial pro - fessionals are subject to continuing education require- ments, including broker–dealer agents, insurance agents, certified financial planners, and real estate agents. Given that IARs play an important role in their cli - ents’ financial lives, the North American Securities Administrators Association (“NASAA”) received sig- nificant support from state regulators and the securi - ties industry for the creation of a continuing education program and developed the Investment Adviser Rep - resentative Continuing Education (“IARCE”) Model Rule.

On November 30, 2020, NASAA announced that its membership voted to adopt a model rule to set param- eters by which NASAA members could implement continuing education programs for investment adviser representatives in their jurisdictions. The model rule has a products and practices component and an eth - ics component and is intended to be compatible with other continuing education programs. This proposed rulemaking would implement NASAA ’s IARCE Mod- el Rule. Existing Federal Regulation or Statute [Government Code

Section 11346.5, Subdivision (a)(3)(B)] There are no existing federal regulations or statutes pertaining to continuing education requirements for Investment Adviser Representatives. The proposed regulatory action is not inconsistent with existing fed- eral laws. Existing State Regulations [Government Code

Section 11346.5, Subdivision (a)(3)(D)] The Commissioner has conducted an evaluation of whether the proposed regulation is consistent with existing state regulations and has concluded that this regulation is consistent with existing regulations un - der the Corporate Securities Law of 1968. There are no existing regulations pertaining to continuing ed - ucation requirements for Investment Adviser Rep - resentatives. The proposed regulation is consistent with existing policy considerations under the Corpo - rate Securities Law of 1968.

Therefore, the proposed rulemaking is neither inconsistent nor incompatible with other existing state regulations. FORMS INCORPORATED BY REFERENCE [Title 1, California Code of Regulations,

Section 20, Subdivision (c)(3)] There are no forms incorporated by reference in the proposed regulatory action.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 1442 DISCLOSURES REGARDING THE PROPOSED ACTION [Government Code

Section 11346.5, Subdivision (a)(5) and (6), and (12)(A)] ● Mandate on local agencies or school districts: none. ● Cost or savings to any State agency: $1,206,000 in costs to implement the proposed regulations and $1,140,000 plus salary increases annually thereafter. ● 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 effect on housing costs: none. ECONOMIC IMPACT ON BUSINESS [Government Code

Section 11346.5, Subdivision (a)(8)] The Commissioner has made an initial determina - tion that the proposed regulatory action is unlikely to have a significant, statewide adverse economic im - pact directly affecting business, including the ability of California businesses to compete with businesses in other states. In making this initial determination, the Commissioner relied on a 2021 NASAA Invest - ment Adviser

Section Annual Report and the NASAA Survey results

Summary (2018) to support her initial determination that the regulatory action will likely not have a significant adverse economic impact on busi - ness. The Commissioner has not relied on any other reports, facts, evidence, documents, or testimony to support the initial determination that the regulation is unlikely to have a significant, statewide adverse eco - nomic impact on business. EFFECT ON SMALL BUSINESS [Title 1, California Code of Regulations,

Section 4] Under Government Code

section 11342.610, subdi- vision (b), an investment adviser is not a small busi - ness. Therefore, this rulemaking action will not have an impact on small businesses. COST IMPACTS ON REPRESENTATIVE PRIVATE PERSON OR BUSINESS [Government Code

Section 11346.5, Subdivision (a)(9)] Investment adviser representatives will incur annu - al costs estimated at $36 (for the annual reporting fee), plus the cost of continuing education courses, to com- ply with the continuing education requirements. Some courses will be offered by NASAA for free while other course will be offered at varying prices depending on the authorized provider. IARs who are also registered as a broker–dealer agent and/or hold other profession- al designations may incur minimal to no costs for continuing education courses.

This is because an IAR who is also a registered broker–dealer agent and com- plies with the Financial Industry Regulatory Author - ity’s Continuing Education requirements for broker– dealer agents will be in compliance with the require - ment to report six credits of Products and Practices content under the proposed rule. IARs who hold other professional designations may also be in compliance with the IAR continuing education requirements un - der the proposed rule.

Therefore, many IARs who are dually registered as broker–dealer agents or hold other professional designations will already meet some or all of the continuing education requirements of this regulatory proposal. RESULTS OF THE ECONOMIC I M PACT A NA LYSIS [Government Code

Section 11346.5, Subdivision (a)(10)] The Commissioner has determined: ● The proposed action will not result in the creation of new jobs within the state. The proposed rule imposes continuing education requirements on IARs registered in this state. Providers of con - tinuing education may experience an increase in demand for services but not significantly enough to add positions or create jobs. ● The proposed action will not result in the cre - ation of new businesses in the state. The proposed rule imposes continuing education requirements on IARs registered in California.

Therefore, the rule may cause existing providers of continuing education to expand their products and services to IARs who must fulfill the new requirements. However, the Department does not anticipate a creation of new businesses. Also, the Department does not anticipate an elimination of existing businesses due to the regulation. ● The proposed action may result in the expan - sion of businesses currently doing business in

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 48-Z 144

Document details

Collection	California Z Register
Citation	Cal. Reg. Notice Reg. 2022, No. 48
Type	gazette
Language	en
Format	pdf
Source	CA_ZREG
Identifier	4e6e82b8f8c82dc7c23e9bf4f0698f0cf275db71

Source file is stored in the law ingest library (pdf).