Time- Dated Material GAVIN NEWSOM, GOVERNOR OFFICE OF ADMINISTRATIVE LAW California Regulatory Notice Register REGISTER 2022, NUMBER 17-Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW APRIL 29, 2022 PROPOSED ACTION ON REGULATIONS TITLE 2. FAIR POLITICAL PRACTICES COMMISSION Conflict–of–Interest Code — Notice File Number Z2022–0419–03 ......................................... 479 AMENDMENT STATE AGENCY: Commission on State Mandates TITLE 4.

ALTERNATIVE ENERGY AND TRANSPORTATION FINANCING AUTHORITY Commercial Energy Efficiency Financing Program — Notice File Number Z2022–0419–01 .................... 480 TITLE 4. GAMBLING CONTROL COMMISSION Petitions to Request Regulations — Notice File Number Z2022–0418–02 ................................... 485 TITLE 4. DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL Amendments to the Responsible Beverage Service Training Program Act Regulations — Notice File Number Z2022–0412–01 ................................................................ 489 TITLE 8.

OCCUPATIONAL SAFETY AND HEALTH APPEALS BOARD Rules of Practice and Procedure — Notice File Number Z2022–0418–03 ................................... 491 TITLE 13. NEW MOTOR VEHICLE BOARD Certified Mail — Notice File Number Z2022–0419–06 ................................................ 495 TITLE 14. OFFICE OF ENERGY INFRASTRUCTURE SAFETY Notifications, Investigation, and Notices — Notice File Number Z2022–0418–04 ............................. 498 TITLE 14.

OFFICE OF ENERGY INFRASTRUCTURE SAFETY Rules of Practice and Procedure; E–Filing, Formatting Requirements, Submission of Confidential Information — Notice File Number Z2022–0418–05 ......................................... 502 (Continued on next page)

TITLE 14. FISH AND GAME COMMISSION State Marine Recreational Management Areas — Notice File Number Z2022–0419–07 ........................ 506 TITLE 14.

FISH AND GAME COMMISSION Game Fish Contests — Notice File Number Z2022–0419–05 ............................................. 509 GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE Consistency Determination No. 1653–2022–089–001–R1, Cedar Creek Hatchery Dam Removal Project, Mendocino County ............................................................ 511 FISH AND GAME COMMISSION Pink (Ocean) Shrimp Fishery Management Plan ....................................................... 513 OCCUPATIONAL SAFETY AND HEALTH STANDARDS BOARD Notice of Public Meeting and Business Meeting ........................................................ 513 ACCEPTANCE OF PETITION TO REVIEW ALLEGED UNDERGROUND REGULATIONS DEPARTMENT OF CORRECTIONS AND REHABILITATION Memorandum Dated June 23, 1998, titled: Clarification of “Stacking” as Related to the Inmate Disciplinary Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514

SUMMARY OF REGULATORY ACTIONS Regulations filed with Secretary of State .............................................................. 515 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 http://www.oal.ca.gov .

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 479 PROPOSED ACTION ON REGULATIONS Information contained in this document is published as received from agencies and is not edited by Thomson Reuters. TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION NOTICE IS HEREBY GIVEN that the Fair Political Practices Commission, pursuant to the authority vest - ed 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 STATE AGENCY: Commission on State Mandates A written comment period has been established commencing on April 29, 2022, and closing on June 13, 2022.

Written comments should be directed to the Fair Political Practices Commission, Attention Amanda Apostol, 1102 Q Street, Suite 3000, Sacramento, California 95811. At the end of the 45–day comment period, the pro - posed conflict–of–interest code(

s) will be submitted to the Commission’s Executive Director for 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 code(

s) will be submit - ted to the Commission for review. The Executive Director of the Commission will review the above–referenced conflict–of–interest code(s), proposed pursuant to Government Code

Section 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 code(

s) 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 code(s). Any writ - ten comments must be received no later than June 13, 2022. 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 increased costs to local government which may re - sult from compliance with these codes because these are not new programs mandated on local agencies by the codes since the requirements described herein were mandated by the Political Reform Act of 1974. Therefore, they are not “costs mandated by the state” as defined in 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 code(

s) should be made to Amanda Apostol, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322–5660. 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 Commission should be made to Amanda Apostol, Fair Political Practices Commission, 1102 Q Street, Suite

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 480 3000, Sacramento, California 95811, telephone (916) 322–5660. TITLE 4. A LTERNATIVE ENERGY AND TRANSPORTATION FINANCING AUTHORITY The California Alternative Energy and Advanced Transportation Financing Authority (the “Authority” or “CAEATFA”), organized and operating pursuant to Division 16 (commencing with

section 26000) of the California Public Resources Code (the “Act”) — pursu- ant to the authority vested in it by the Public Resources Code

Section 26009 to promulgate regulations and Public Resources Code

Section 26011 to provide fi - nancial assistance to a participating party, and acting pursuant to the Memorandum of Agreement (“MOA”) between CAEATFA and the California Public Utilities Commission (“CPUC”) which sets forth the policies and procedures for establishment of a series of ratepayer– funded pilot programs as authorized and described in the initial CPUC–approved Decision 13–09–044, Decision Implementing 2013–14 Energy Efficiency Financing Pilot Programs (the “Decision”), issued September 20, 2013 and subsequent CPUC actions 1— proposes to amend the Commercial Energy Efficiency Financing Program regulations described below af - ter considering all comments, objections, and rec - ommendations regarding the proposed action.

The Commercial Energy Efficiency Financing Program is known publicly as the “GoGreen Business Program” and is also referred to in this document as “Program.” PUBLIC HEARING The Authority has not scheduled a public hearing on this proposed rulemaking. However, a public hearing will be held if any interested person, or their duly au- thorized representative, requests a public hearing to be held relevant to the proposed rulemaking by submit - ting a written request to the Agency Contact Person identified in this notice no later than fifteen (15) days prior to the close of the written comment period.

WRITTEN COMMENT PERIOD Any interested person, or their authorized represen- tatives may submit written comments relevant to the regulations to the Authority. The written comment period on the regulations ends on Monday, June 13, 2022. All comments must be submitted in writing to 1 C P U C h a s i s s u e d a d d i t i o n a l d e c i s i o n s a n d r u l i n g s a d d r e s s- ing issues related to the implementation of the pilot programs, including: D. 15–06–008, D. 15–12–002, D. 17–03–026; and D.21.08.006. cheef@treasurer.ca.gov by that time in order for them to be considered by the Authority.

In the event that substantial changes are made to the regulations during the written comment period, the Authority will also accept additional written com - ments limited to any changed or modified regulations for fifteen (15) calendar days after the date on which such regulations, as changed or modified, are made available to the public pursuant to Title 1, Division 1,

Chapter 1,

Article 2,

Section 44 of the California Code of Regulations. Such additional written comments should be addressed to the Agency Contact Person identified in this notice. AUTHORITY AND REFERENCE Authority: Public Resources Code

Section 26006 and

Section 26006 and 26009 of the Public Resources Code authorizes the Authority to adopt necessary reg- ulations relating to its authority established by the Act, and Public Resources Code 26011 establishes the au- thority to provide financial assistance to a participat - ing party. Reference: Public Resources Code Sections 26002, 26002.5, 26003(a)(3)(A), 26003(a)(6), 26003(a)(7)(A), 26003(a)(8)(A), 26011 and 26040.

On September 19, 2013, the CPUC approved Decision 13–09–044 and requested the Authority act as the master administrator of the California Hub for Energy Efficiency Financing (“CHEEF”), funded by ratepayer funds collected by the four investor–owned utilities: Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison Company, and Southern California Gas Company (col- lectively the “IOUs”).

CAEATFA ’s purpose is to ad- vance the State’s goals of reducing the levels of green- house gas emissions, increasing the deployment of sustainable and renewable energy sources, implement- ing measures that increase the efficiency of the use of energy, creating high quality employment opportu- nities, and lessening the State’s dependence on fossil fuels. The Authority’s statute enables it to provide fi - nancial assistance to various participating parties that carry out eligible projects.

In July 2014, CAEATFA received initial Legislative budget authority to admin- ister the CHEEF functions and subsequently entered into a Memorandum of Agreement with the CPUC and a receivables contract with the IOUs to implement the CHEEF. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Existing law establishes the California Alternative Energy and Advanced Transportation Financing

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 481 Authority and authorizes the Authority to provide “fi- nancial assistance” to “participating parties” for the implementation of “projects” as those terms are de - fined in Public Resources Code

Section 26003. A Memorandum of Agreement between CAEATFA and the CPUC sets forth the policies and procedures for es- tablishment of a series of ratepayer–funded programs as authorized and described in the CPUC–approved Decision 13–09–044, Decision Implementing 2013– 14 Energy Efficiency Financing Pilot Programs, and associated governing actions (“Decision”). The Decision established the California Hub for Energy Efficient Financing (“CHEEF”) to be admin - istered by CAEATFA.

CAEATFA was authorized to develop and implement a number of energy efficien - cy financing programs, intended to attract a greater amount of private capital to the energy efficiency ret - rofit market. The programs would make use of a credit enhancement to mitigate risk for finance companies, allowing them to offer more attractive rates and terms and to approve financing for individuals and business- es who might not be approved otherwise. The Decision also authorized on–bill repayment for several sectors including the commercial sector.

Through on–bill re - payment, customers can repay energy–related finance agreements through their utility bills. The Office of Administrative Law (“OAL”) first ap- proved emergency regulations for the Commercial Energy Efficiency Financing Program in December 2018. Following a period of financing company and contractor enrollment, the program was launched for small business participants in May 2019. The Certificate of Compliance was completed in December 2019.

The Program was initially known publicly as the “Small Business Financing Program” and, beginning in August 2021, as the “GoGreen Business Energy Financing Program” or just “GoGreen Business.” At the beginning of 2020, GoGreen Business was starting to gain momentum with contractor and project developer enrollments when, due to the pandemic, many small businesses shut down. Additionally, investor– owned utilities (“IOUs”) paused energy efficiency program outreach that was critical for small business’ awareness of the types of upgrades they could make.

Since businesses have reopened, the need for energy efficiency financing has resumed. CAEATFA had re - ceived industry feedback related to eligible measures and the need for smaller dollar financing amounts than finance companies could practically offer through the program. Further, significant progress had been made between CAEATFA and the IOUs in reaching agree - ment on key aspects of the on–bill repayment structure and operations. To this end, and to allow for adequate time for the regular rulemaking process, Authority staff proposed making modifications through the emergency process in May 2021.

As part of the emergency rulemaking, CAEATFA made publicly available the proposed modified emer - gency stakeholder regulations, held stakeholder dis - cussions soliciting input, and conducted a virtual pub- lic workshop on May 21, 2021, followed by a 10–day public comment period. Emergency regulations were initially approved by OAL on July 19th, 2021 (OAL File Number 2021–0707–01E) with subsequent ap - proval by OAL for readoption on December 30th, 2021 (OAL File No 2021–1221–01EE) and April 12th, 2022 (OAL File Number 2022–0405–01EE).

The proposed regulations associated with this Notice seek to make permanent most of the emergency mod - ifications. They clarify and establish the rules neces - sary to implement the On–Bill Repayment (“OBR”) feature described in the CPUC–approved Decision 13–09–044. These regulations also clarify and add el - igible Energy Savings Measures (“ESMs”) to the pro- gram, expand the number of Self–Installed ESMs, and establish a streamlined Microloan pathway for loans less than $10,000.

These regulations are the result of stakeholder comments obtained since implementation in 2019 as well as during the emergency rulemaking process. Anticipated Benefits of the Proposed Action: The On–Bill Repayment feature is intended to act as a selling point for small businesses and increase program uptake, furthering the goal of reducing en - ergy consumption and thereby greenhouse gases.

The Microloan pathway is intended to allow finance com - panies to effectively serve the smallest businesses in California by providing credit–enhanced financing for energy efficient equipment, helping businesses to save money, and improving their bottom line. Changes to the Energy Saving Measures list are intended to more thoroughly represent the kinds of installations which are able to save energy and to ease restrictions on self– installation to allow small businesses a lower–cost op- tion for energy saving projects.

All these modifica - tions are intended to drive uptake for the program and further goals of reduction in energy use. Changes to program requirements on reporting and proof of utili - ty service are intended to simplify project submissions and make participation feasible for finance companies. Evaluation of Inconsistency/Incompatibility with Existing State Regulations: Government Code

Section 11346.5(a)(3)(

D) requires that the notice of proposed rulemaking include, “[an] evaluation of whether the proposed regulation is in - consistent or incompatible with existing state regu - lations.” CAEATFA ’s Staff reviewed the California Code of Regulations and found no existing regula - tions with which there might be inconsistency or in - compatibility. Therefore, CAEATFA believes that the proposed regulation is neither inconsistent nor incom- patible with existing state regulations.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 482 DISCLOSURES REGARDING THE PROPOSED ACTION The Executive Director of CAEATFA has made the following determinations regarding the effect of the regulations: Mandate on local agencies or school districts: None. Cost or savings to any state agency: None. Cost to any local agency or school district which must be reimbursed in accordance with Government Code sections 17500 through 17630: None. 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. Significant, statewide adverse economic impact directly affecting businesses including the abili - ty of California businesses to compete with busi - nesses in other states: The Authority has made the determination that the proposed regulations will not have a significant, statewide adverse economic impact directly affecting businesses, including the ability of California businesses to compete with businesses in other states. Participation in the Program is voluntary for California businesses.

For those businesses that choose to participate, they are likely to access financ - ing at better rates and terms than they would find out - side of the Program, which provides a benefit. In fact, the Authority finds that the proposed regulation will have a positive effect on the participating customers as well as the State’s economy and environment gen - erally as a result of reducing the cost of financing, po- tential utility bill savings and reduction of greenhouse gases. Effect on Small Business: The proposed regula - tions will not have an adverse impact on small busi - nesses in California.

Participation is voluntary and designed to offer access to attractive financing that a small business otherwise may not have. Cost Impacts on Representative Private Person or Business: The Authority is not aware of any cost impacts that a representative private person or busi - ness would necessarily incur in reasonable compli - ance with the proposed action.

RESULTS OF ECONOMIC I M PACT A NA LYSIS The Authority finds that the regulations will have a positive effect on the state’s economy as studies have cited access to attractive financing as a signif - icant impediment for businesses to invest in energy upgrades. Therefore, the Authority finds there may be increased economic activity for manufacturers and in- stallers of energy efficiency measures, finance com - panies who participate in the Program, and contrac - tors and project developers who participate in the pro- gram.

Additionally, businesses that make energy up - grades are likely to experience energy savings which could be reinvested into their businesses and into the state economy as a whole.

Creation or Elimination of California Jobs: The Authority finds that the regulations may have a posi - tive impact on the creation of jobs within California, through manufacturers of energy efficiency measures benefiting from increased demand, contractors and project developers hired to install measures and from businesses participating in the Program who save on energy bills and are able to reinvest those savings into their businesses and hire additional workers. The Authority has not estimated the number of green jobs that may be created as a result of this Program as par - ticipation is voluntary.

Creation, or Elimination, of California Businesses: As the regulations provide an incentive to finance companies offering credit to California busi - ness owners, the elimination of businesses within California is improbable. The regulations are unlikely to significantly affect the creation of new businesses within the State of California. Expansion of Existing Businesses in California The Authority finds there would be increased eco - nomic activity for certain businesses of project de - velopers and contractors who conduct energy effi - ciency retrofits, thus potentially expanding existing businesses.

Benefits of The Regulation to The Health and Welfare of California Residents, Worker Safety, and The State’s Environment: The goal of the Program is to increase access to financing for California busi - nesses to invest in energy efficient upgrades, thus re - ducing greenhouse gas emissions and helping meet California’s ambitious environmental goals.

SUMMARY OF THE PROPOSED CHANGES AND ADDITIONS

Section 10092.1.

Definitions. This

section defines terms commonly used through- out the regulations and Program documents. This

section is being amended to add

definitions necessary for On–Bill Repayment and the Microloan pathway.

Section 10092.3. Additional Requirements for Entities that are not Financial Institutions. This

section specifies additional program participa - tion requirements on entities that are not regulated fi - nancial institutions.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 483 This

section is being amended to remove the re - quirement on proof of motor vehicle insurance.

Section 10092.4. Contractor and Project Developer Participation. This

section establishes the Participating Contractor and Participating Project Developer requirements and responsibilities in the Program. This

section is being amended to facilitate a stream- lined Microloan pathway for self–installed projects and to add a requirement on retention of permitting documentation.

Section 10092.6 Eligible Financing Customers. This

section establishes the minimum credit and underwriting requirements that apply to Eligible Commercial Financing Customers. The amendments to this

section reflect the addition of the Microloan tier for financed agreements up to $10,000 with fewer requirements than the higher tiers.

Section 10092.7 Project Eligibility. This

section details the requirements for Projects to be eligible for financing through the Program. As the streamlined Microloan level of financing has been newly added, this

section is being amended to remove the requirement for a Project Developer to be active on a self–installed project of less than $10,000 to keep additional costs minimal. Further, it has been updated to make explicit the original intent of the types of data that may be expected of Participating Contractors and Participating Project Developers and may be required as part of the quality assurance/qual - ity control process.

Section 10092.8. Financing Submittal and Enrollment. The purpose of this

section is to detail the full re - quirements for Project Eligibility, including the docu- mentation, data, and signed certifications that must be submitted by each participant to the authority for the Eligible Financing Agreement for a Project to enroll in the Program. This

section is being amended to clarify the terms used and to consolidate the requirements for data, documentation, and certifications required for the sub- mittal and enrollment of an eligible financing agree - ment. Amendments are also being made to designate certain data points as not required for the submission of Microloans. Lastly, the requirement of proof of IOU service to a property is being broadened to allow oth - er methods of documentation than utility bills to make the program more compatible with utility program implementers.

Section 10092.10. Claims The purpose of this

section is to establish the pro - cess and terms whereby a Finance Provider Entity may claim and receive reimbursement for a loss incurred from an Eligible Commercial Financing Customer’s default on an Enrolled Financing Agreement. The

section has been amended to include “The date of the Charge–off” as part of the claim application and to clarify when the data point of “Whether or not en - forcement proceedings have commenced” is required.

Section 10092.12. Reporting. The purpose of this

section is to establish the report- ing requirements of Finance Provider Entities and the Authority under the Program. This

section is being amended to facilitate the au - tomation of monthly data reporting through stream - lining some requirements as well as making it the Authority’s responsibility to request certain data on a monthly basis.

Section 10092.13. California Hub for Energy Efficiency Financing Privacy Rights Disclosure. The purpose of this

section is to discuss the Eligible Commercial Financing Customer’s privacy rights re - lating to information collected through the Program and to obtain approval and acknowledgment that authorizes the Participating Project Developer, Participating Contractors, IOUs, and Finance Provider Entity to share information, some of which may be personally identifiable, with the authority. This

section is being amended to comply with CA Civil Code

Section 1798.24 which requires a time limit to be established for a period of data collection and release. Further, it sets the term of the Privacy Rights Disclosure to last through the term of the Eligible Commercial Financing Customer’s financing agreement.

Section 10092.14. Energy Savings Measure List. The purpose of this

section is to provide a list of Energy Saving Measures (“ESMs”) that are pre– approved by the Authority for installation under the Program through the ESM list method. This

section was amended by adding new measures to the ESM list to remain current with emerging en - ergy efficient technologies, to bring some measures in line with industry standards, and to expand the pool of measures which are eligible for self–installation by the customer.

Section 10092.15. On–Bill Repayment. The purpose of this

section is to provide rules gov - erning a mechanism, known as On–Bill Repayment (“OBR”) by which a utility customer repays third– party private capital financing charges when they pay their monthly utility bill. Including this feature as an option in the Program for customers to avoid making an additional monthly payment and to address their energy improvement costs through their utility bill is intended to attract additional business owners to save energy and additional finance company participation.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 484 This

section is necessary for the Authority to set the guidelines and provide a centralized, statewide hub for multiple finance companies to receive pay - ments through the bills of all four IOUs. This

section also is necessary to establish additional data submis - sion and financing agreement eligibility requirements of Participating Finance Provider Entities beyond the basic program requirements as laid out in other sec - tions. Also, this

section specifies the obligations of the Authority and defines the operation of the Operational Reserve Fund (“ORF”) that protects repayment streams to Participating Finance Provider Entities in the cases of delayed bills or returned items. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

Section 11346.5(a)(13), the Authority 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 car- rying 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.

The Authority invites interested persons to present statements with respect to alternatives to the regula - tions during the written comment period. AGENCY CONTACT PERSON Written comments shall be submitted or directed to: cheef@treasurer.ca.gov.

Inquiries and any questions regarding the substance of the regulations shall be submitted or directed to: Jonathan Verhoef Program Specialist CAEATFA 915 Capitol Mall Sacramento, California 95814 Telephone: 916–653–1375 Email: jverhoef@treasurer.ca.gov or (backup contact) Aaron Lingenfelter Analyst CAEATFA 915 Capitol Mall Sacramento, California 95814 Telephone: 916–653–2509 Email: ALingenfelter@sto.ca.gov AVAILABILITY OF INITIAL STATEMENT OF REASONS AND TEXT OF THE PROPOSED REGULATIONS The Authority has established a rulemaking file for this regulatory action, which contains those items re - quired by law.

The file is available for inspection at the Authority’s office at 801 Capitol Mall, Second Floor, Sacramento, California 95814, during normal busi - ness working hours. As of the date this Notice is pub - lished in the Notice Register, the rulemaking file con- sists of this Notice, the Initial Statement of Reasons, the proposed text of the regulations, the Economic Impact Statement, and the Technical, Theoretical, and/or Empirical Studies, Reports, or Documents.

Copies of these items are available upon request from the Agency Contact Person designated in this Notice or at the Authority’s website located at https://www. treasurer.ca.gov/caeatfa/cheef/sblp/regulations/index. asp/. AVAILABILITY OF CHANGED OR MODIFIED TEXT After the public hearing and at the end of the written comment period, the Authority may adopt the regula - tions substantially as described in this Notice, without further notice.

If the Authority makes modifications that are sufficiently related to the originally proposed text, it will make the modified text (with the chang - es clearly indicated) available to the public for at least fifteen (15) calendar days before the Authority adopts the proposed regulations, as modified. Inquiries about and request for copies of any changed or modified reg- ulations should be addressed to the Agency Contact Person identified in this Notice. The Authority will ac- cept written comments on the modified regulations for fifteen (15) calendar days after the date on which they are made available.

AVAILABILITY OF FINAL STATEMENT OF REASONS Upon completion, a copy of the Final Statement of Reasons may be requested from the Agency Contact Person designated in this Notice or at the Authority’s website located at https://www.treasurer.ca.gov/caeatfa/ cheef/sblp/regulations/index.asp. AVAILABILITY OF MATERIALS ON THE INTERNET Materials prepared for this rulemaking, includ - ing this Notice, the Initial Statement of Reasons, the text of the proposed regulations, the Economic Impact Analysis, and Technical, Theoretical, and/or Empirical

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 485 Studies, Reports, or Documents may be accessed on the Authority’s website located at https://www.treasurer. ca.gov/caeatfa/cheef/sblp/regulations/index.asp. 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 19801, 19802, 19803, and 19840 of the Business and Professions Code; and to implement, interpret or make specific sections 19841 and 19842 of the Business and Professions Code and sections 11340.6, 11340.7, 11346.4, and 11346.8 of the Government Code, the Commission is proposing to adopt the following changes to

Chapter 1 of Division 18 of Title 4 of the California Code of Regulations: INFORMATIVE DIGEST AND POLICY STATEMENT OVERVIEW Introduction: The Commission is the state agency charged with the administration and implementation of the Gambling Control Act (Act). 1 The Commission is authorized to adopt regulations as necessary to implement the Act. Government Code sections 11340.6 and 11340.7 provide a process by which a member of the public can petition a state agency to consider the adoption, amendment, or repeal of a regulation.

These statutes include timelines and requirements; however, they lack the specificity to be effectively implemented with- out clarification. This proposed action will provide the clarification necessary for the Commission to receive and consider these petitions. Existing Law: Business and Professions Code

section 19840 al - lows the Commission to adopt regulations for the ad - ministration and enforcement of the Act.

Section 11340.6 of the Government Code grants the right to file a petition with a state agency request - ing the adoption, amendment, or repeal of a regula - tion. The petition is required to clearly and concisely state the substance or nature of the regulation, amend- ment, or repeal requested, the reason for the request, and the authority of the state agency to take the re - quested action.

Section 11340.7 of the Government Code provides that upon the receipt of a petition requesting the adop- tion, amendment, or repeal of a regulation, a state agency must, with 30 days of receipt, deny the petition 1 Business and Professions Code, Division 8,

Chapter 5,

section 19800 et seq. TITLE 4. GA MBLING CONTROL COMMISSION REQUEST FOR REGULATIONS CGCC–GCA–2022–01–R NOTICE IS HEREBY GIVEN that the California Gambling Control Commission (Commission) is pro - posing to take the action described in the Informative Digest after consideration of all relevant public com - ments, objections, and recommendations received con- cerning the proposed action.

Comments, objections, and recommendations may be submitted as follows: 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. To be eligible for the Commission’s consideration, all written comments must be received at its office no later than midnight on June 14, 2021.

Comments sent to persons and/or addresses other than those specified under Contact Persons, or received after the date and time specified above, will be includ - ed in the record of this proposed regulatory ac - tion, but will not be summarized or responded to regardless of the manner of transmission. Written comments relevant to the proposed regulatory action may be sent by mail, facsimile, or e–mail, directed to one of the individuals designated in this notice as a contact person. 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

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 486 or

schedule the matter for a public hearing. The grant- ing of the petition may be in part and the state agen - cy may take any other action it may determine is war- ranted by the petition. Any decision of the state agen - cy must be transmitted to the Office of Administrative Law for publication in the California Regulatory Notice Register at the earliest practicable date. Effect of Regulatory Action: This proposed action has been prepared to modi - fy the Commission’s regulations to make effective the petition requirements of Government Code sections 11340.6 and 11340.7.

The proposed clarifications will ensure that the Commission has the necessary infor - mation to consider a petitioner’s request on the mer - its of the request. Additionally, the timelines required in Government Code sections 11340.6 and 11340.7 are clarified to ensure that the processes provide in the sections are not inconsistent with other statutory requirements.

Anticipated Benefits of Proposed Regulation: This proposed action will have the benefit of pro - viding the people of California with a clear method to participate in this aspect of the rulemaking pro - cess by providing the opportunity to have any ideas to adopt, amend, or repeal a regulation considered by the Commission through a consistent and feasible process. Specific Proposal: This proposed action will make changes within California Code of Regulations Title 4 Division 18 as follows:

Chapter 1. General Provisions.

Article 1.

Definitions and General Procedures. Amend 12008. Request for Regulations.

Section 12008 provides a process by which a per - son can submit a petition to the Commission for the purposes of requesting the consideration of the adop - tion, amendment, or repeal of a regulation. This sec - tion provides what is required to be submitted along with the timeline for review. Subsection (

a) provides that a person may submit a petition, resubmit an incomplete petition, or request reconsideration of a previously submitted petition by using the form Petition for Adoption, Amendment, or Repeal of Regulation, CGCC–CH1–05. The form Petition for Adoption, Amendment, or Repeal of Regulation, CGCC–CH1–05, is a new form. The instructions include: ● That the form can be submitted by either mail to the Commission’s headquarters or by email to the Legislative and Regulatory Affairs Division.

Additionally, it provides an option for the peti - tioner to receive any communications via email. ● The requested adoption, amendment, or re - peal of regulations must be provided clearly and concisely. ● When completing the form, the petitioner can in- dicate “N/A” if a

section does not apply to their request. Additionally, the form provides a noti - fication that failure to provide the requested in - formation may result in the petition being deter - mined to be incomplete or denied. ● Directions are provided for

Section 3 that indi - cate that the specific regulatory language must be provided. ● Directions are provided for

Section 4 that indicate the petitioner must provide a description of the specific regulatory changes. This includes a gen - eral statement explaining the purpose and goals of the petition, along with the necessity, pur - pose, and goal for each specific part of the pro - posal.

The instructions recommend that the peti - tioner include a statement explaining any antici - pated benefits of the proposal and what types of the costs might be incurred by the Commission, Bureau, industry, or others as a result of the ap - proval of the petition. ● Finally, the instructions provide that all informa - tion be in blue or black ink and that if space is in- sufficient additional pages may be submitted. ●

Section 1 requires the petitioner’s contact information. ●

Section 2 requires the type of the petition; is the petition a new petition (initial), a resubmittal of an incomplete petition, or the reconsideration of a previously decided petition. Additionally, if a resubmittal or reconsideration, the form requires the petition’s unique identifying number. ●

Section 3 requires the sections to be repealed and amended. Additionally, there is a

section for the specific adoption and amended language to be provided. ●

Section 4 requires the reason for the request. ●

Section 5 requires the statutes that provide the Commission the authority to adopt the proposal along with the statutory sections that would be implemented, interpreted, or made specific. ●

Section 6 requires the petitioner to acknowledge the requirements of the petition; provides infor - mation about what could result from the petition; and provides notice that even should the petition go through the rulemaking process it is still pos - sible that the Commission will ultimately choose to not adopt the proposal. Subsection (

b) provides a restatement of the require- ments of Government Code

section 11340.6. Subsection (

c) provides that within 10 business days of receipt of the petition, the Executive Director will send an acknowledgment of receipt of the petition to the petitioner.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 487 Subsection (

d) provides that within 30 calendar days of receipt of the petition, the Executive Director will review the petition, assign it a unique identify - ing number, and provide that number to the peti - tioner. Additionally, the subsection provides that the Executive Director will do one of the following: 1. Paragraph (1) provides that if the Executive Director determines that the petition is incom - plete, the petition will be returned to the petition- er with an explanation of how it is incomplete. 2. Paragraph (2) provides that if the Executive Director determines that the petition is complete, the petitioner will be notified that either: ● (

A) The petition has been denied and will be provided an explanation of the denial; or, ● (

B) The petition has been approved, either in whole or in part, and if the Executive Director has determined that additional adoptions, amendments or repeals will be necessary. Subsection (

e) provides that if the Executive Director has determined that the petition has been approved, ei- ther in whole or in part, the Executive Director will provide notice to the Commission’s rulemaking list and on its website, of the Commission’s intent to issue a Notice of Proposed Action including a tentative pub- lic hearing date. 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 the stat - utes allowing a petition to adopt, amend, or repeal regulations to the Commission is effective and con - sistent with the needs of the Commission to consider a petition on its merits, as in required by statute, and is neither inconsistent or incompatible with either the Commission’s regulations or any other existing state regulations pertaining to the petition or adoption of regulations. 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: There would be no fiscal impact on the Commission or to any state agencies, including costs or savings or costs/savings in Federal funding. Non–discretionary Cost or Savings Imposed Upon Local Agencies: None. Mandate Imposed on any Local Agency or School District for which

Part 7 (commencing with

section 17500) of Division 4 of the Government Code Requires Reimbursement: None. Cost to any Local Agency or School District for which

Part 7 (commencing with

section 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 would have no 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: The basis for this determina - tion is that this proposed action imposes no mandatory requirement on businesses or individuals and does not significantly change the Commission’s current prac - tices and procedures. Cost Impact on Representative Private Person or Business: The Commission is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action.

The ability to submit a petition cur - rently exists, and while the proposal does provide clar- ity on what is required, it does not add to or reduce, the ability of a petition to be submitted. Effect on Small Business: The Commission has made a determination that the proposed regulatory action would have no signif - icant impact on small businesses as the proposed ac - tion only provides clarity to a currently exiting statu - tory process.

RESULTS OF ECONOMIC IMPACT ASSESSMENT/ANALYSIS Impact on Jobs/New Businesses: The Commission has determined that this regulato - ry proposal will not have any impact on the creation of new jobs or businesses, the elimination of existing

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 488 jobs or businesses, or the expansion of businesses in California. The basis for this determination is that this pro - posed action imposes no mandatory requirement on businesses or individuals and does not significantly change the Commission’s current practices and proce- dures. The proposed action only provides clarity to a process to submit for consideration a petition to adopt, amend, or repeal regulations.

Benefits of Proposed Regulation: This proposed action will have the benefit of pro - viding the people of California with a clear method to participate in this aspect of the rulemaking pro - cess by providing the opportunity to have any ideas to adopt, amend, or repeal a regulation considered by the Commission through a consistent and feasible process. Health and Welfare of California Residents: It has been determined that the proposed action will protect the health, safety, and general welfare of California residents by aiding and preserving the in - tegrity 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 has noth- ing to do with 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 at the hearing or prior to the hearing upon request from the Commission at 2399 Gateway Oaks Drive, Suite 220, Sacramento, CA 95833–4231.

AVAILABILITY 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 be - low or by accessing the Commission’s Website 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 Legislation 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 Reasons, 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: Adrianna Alcala–Beshara, Deputy Director Legislation and Regulatory Affairs Division California Gambling Control Commission 2399 Gateway Oaks Drive, Suite 220 Sacramento, CA 95833–4231 Telephone: (916) 261–4259 Fax: (916) 263–0499 E–mail: aalcalabeshara@cgcc.ca.gov WEBSITE ACCESS Materials regarding this proposed action are also available on the Commission’s Web site at www.cgcc. ca.gov.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 489 TITLE 4. D EPARTMENT OF ALCOHOLIC BEVERAGE CONTROL The Department of Alcoholic Beverage Control (“ABC”) proposes to adopt the proposed regulation amendments below after considering all comments, objections, and recommendations regarding the pro - posed action. PUBLIC HEARING ABC has not scheduled a public hearing on this pro- posed action.

However, the ABC will hold a hearing if it receives a written request for a public hearing from any interested person, or his or her authorized repre - sentative, no later than 15 days before the close of the written comment period. WRITTEN COMMENT PERIOD Any interested person, or his or her authorized representative, may submit written comments rele - vant to the proposed regulatory amendments to ABC. Comments may also be submitted by email to RPU@ abc.ca.gov. The written comment period closes at 12:00 p.m. on June 14, 2022. ABC will only consid - er comments received at ABC Headquarters by that time.

Submit comments to: Law and Policy Unit– RBS Regulation A mendments Department of Alcoholic Beverage Control 3927 Lennane Drive, Suite 100 Sacramento, CA 95834 AUTHORITY AND REFERENCE Business and Professions Code

Section 25681 and 25685 authorizes ABC to adopt these proposed reg - ulations. The proposed regulations implement, inter - pret, and make specific sections 25680–25686 of the Business and Professions Code. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW

Summary of Existing Laws and Regulations The legislature adopted the Responsible Beverage Service Training Program Act of 2017 (RBSTPA), codified as Business and Professions Code §§ 2 5680– 25686.

The RBSTPA requires the Department of Alcoholic Beverage Control (ABC) to develop, im - plement, and administer a curriculum for a statewide RBS program and promulgate regulations specifical - ly addressing the approval of training providers on or before January 1, 2020. 1 ABC is also granted general authority to adopt rules necessary for the administra - tion of the RBSTPA.2 The RBSTPA regulations package was made effec - tive on May 20, 2020, for Title 4 California Code of Regulations sections 160–173.

Although the statewide RBS program was initially supposed to begin July 1, 2021, the passing of Assembly Bill 82, on June 29, 2020, extended the date for this requirement to July 1, 2022. Since the passage of the initial regulations package, ABC has begun to approve training providers who are currently offering trainings to alcohol servers for cer - tification prior to the institution of the legal mandate in July 2022.

The proposed amendments are presented to address issues ABC, training providers, and alcohol servers have experienced in the implementation of the new program, and to correct grammatical and legal er- rors in the initial construction.

Summary of Effect The proposed action will amend California Code of Regulations, Title 4, Division 1,

Article 25 to correct grammatical errors, clarify specific training, training provider, and alcohol server requirements, and to ad - dress issues regarding payments by training providers and alcohol servers. The proposed amendments will ensure that training providers and alcohol servers in California have a better understanding of the require - ments to meet the standards of responsible beverage service training to curb harms to the California com - munity and economy caused by the overuse of alcohol.

Comparable Federal Statute or Regulations The ABC has determined that this proposed regu - lation does not have a comparable federal statute or regulation. Policy Statement Overview This rulemaking action is needed to clarify, correct, and explain training provider and alcohol server re - quirements in order to comply with the RBSTPA. Benefits Anticipated By clarifying and explaining responsible beverage service training requirements, the proposed amend - ments will establish a better understanding and more transparent process for both training providers and al- cohol servers.

The proposed amendments and addi - tions will ensure the continued viability and success of the RBSTPA program that is set to be effective July 1, 2022. Determination of Inconsistency/Incompatibility with Existing State Regulations The ABC has determined that this proposed reg - ulatory action is not inconsistent or incompatible 1 Business and Professions Code § 25681(b)(1). 2 Business and Professions Code § 25685(b).

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 490 with existing state regulations. The proposed action will provide clarity and additional information need - ed for previous regulations that address the minimum standards for the implementation of an RBS training course curriculum, and training provider and alcohol server requirements. Effect upon Small Businesses in California Although training providers may be small business owners, this proposed regulation will have limited ef - fect on them unless they sell or reorganize their busi - ness.

This should be a nominal cost limited to fund ABC’s actual costs for the investigation involved and should be a rare occurrence. The intent of this pro - posed regulation is to ensure the implementation of the RBSTPA is successful which will aid these small business owners find alcohol servers to train and ex - pand their businesses. Disclosures Regarding the proposed Action The ABC has made the following initial determinations: 1. Mandate on local agencies or school districts: None. 2. Costs or Savings to any state agency: None 3.

Cost to any local agency or school district that is required to be reimbursed by the state: None. 4. Other nondiscretionary cost or savings imposed on local agencies: None. 5. Cost or savings in federal funding to the state: None. 6. Cost impacts on housing costs: None. Determination of Statewide Adverse Economic Impact on Business The ABC has made an initial determination that the adoption of the amendments will not have a sig - nificant, statewide adverse economic impact directly affecting business including the ability of California businesses to compete with businesses in other states.

However, the proposed amendments do directly affect a small percentage of responsible beverage service training providers who change ownership or officers by requiring a nominal fee to the ABC for investiga - tive purposes to maintain the integrity of the quality of training providers.

Results of the Economic Impact Assessment: ABC concludes that it is (1) unlikely that the pro - posal will eliminate any jobs, (2) unlikely that the pro- posal will create an unknown number of jobs, (3) un - likely that the proposal will create an unknown num - ber of new businesses, (4) unlikely that the proposal will eliminate any existing businesses, and (5) unlike- ly that the proposed regulations will result in the ex - pansion of businesses currently doing business within the state.

The proposed amendments will benefit the health and welfare of California residents by refining and fix- ing problems with the current implementation of the RBSTPA regulations previously made effective May 20, 2020. The results of these limited amendments should provide clarity to ABC licensees, alcohol serv- ers, ABC staff, training providers, and the public. The only economic impact is the additional procedure and accompanying fee for an approved training provider to be sold or reorganized and keep its approval with - out duplicating the entire initial application process.

This will be a cost savings for training providers who are sold or reorganize even though a new fee is created to recover ABC’s cost of investigating to new owners or officers. There are no anticipated benefits to worker safety or the state’s environment. Description of all cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action. ABC approved responsible beverage service train - ing providers who choose to change ownership or cor- porate officers will need to submit a transfer fee of $250.

This fee is necessary for the ABC to recover the reasonable costs of investigation of the new owners or corporate officers pursuant to Title 4 of the California Code of Regulations

section 168 (d). The Need to Require Report from Businesses The proposed regulation does not require any re - ports from ABC licensees or any other business.

CONSIDERATION OF ALTERNATIVES The ABC must determine that no reasonable al - ternative considered by the ABC or that has other - wise been identified and brought to the attention of the ABC would be more effective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost–effective to affected private persons and equally effective in implementing the statutory policy or oth - er provision of law.

ABC invites interested persons to present statements or arguments with respect to alter - natives to the proposed amended regulations during the written comment period. AGENCY CONTACT PERSON Inquiries concerning the proposed regulatory action prior to the open comment period may be directed to the agency representative Robert de Ruyter, Assistant General Counsel, (916) 419–8958, or Sarah Easter, Associate Government Program Analyst, (916) 928– 7627. During the comment period, comments or ques- tions should be addressed to RPU@abc.ca.gov.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 491 AVAILABILITY OF DOCUMENTS The ABC prepared an Initial Statement of Reasons for the proposed action, which includes a

summary of the economic impacts of the proposal. Copies of the Initial Statement of Reasons and the full text of the proposed regulations may be ac - cessed on ABC’s website listed below or may be ob - tained from the Law and Policy Unit– RBS Regulation Amendments, Department of Alcoholic Beverage Control, 3927 Lennane Drive, Suite 100, Sacramento, CA 95834, on or after April 22, 2022. The ABC staff has compiled a record for this rulemaking action, which includes all the informa - tion upon which the proposal is based. This material is available for inspection upon request to the contact persons.

CHANGE TO THE PROPOSED FULL TEXT OF THE REGULATION ACTION If there is any change to the proposed full text of the regulation action in a substantial, or sufficiently related way, it will be made available for comment for at least 15 days prior to the date on which the ABC adopts the resulting regulation. FINAL STATEMENT OF REASONS A VAILABILITY Upon its completion, the Final Statement of Reasons will be available and copies may be requested from the ABC contact persons in this notice or may be accessed on ABC’s website listed below.

INTERNET ACCESS This notice, the Initial Statement of Reasons, and all subsequent regulatory documents, including the Final Statement of Reasons, when completed, are available on ABC’s website for this rulemaking at https://www. abc.ca.gov/law–and–policy/regulations/ . TITLE 8. OCCUPATIONAL SAFETY AND HEALTH APPEALS BOARD MODIFYING REGULATION CONCERNING TIME AND PLACE OF HEARING The Occupational Safety and Health Appeals Board (“Appeals Board or Board”) proposes to adopt the pro- posed regulations described below after considering all comments, objections, and recommendations re - garding the proposed actions.

PUBLIC HEARING The Board will hold a public hearing on June 16, 2022, at its normally scheduled public meeting held at 2520 Venture Oaks Way, Suite 300 in Sacramento, CA 95833 and 100 North Barranca Street, Suite 410, West Covina, CA 91791 at 9:30 a.m. The locations are wheelchair accessible. At the hearing, any person may present statements orally or in writing relating to the proposed action described in the Informative Digest. The Board requests, but does not require, that persons who make oral comments at the hearing also submit a written copy of their testimony at the hearing.

The meeting will also be accessible to the public, and the Board will accept comment from the public, via ZOOM or telephonically. To join the meeting utilize the web address or tele - phone number below: ● Video–conference at https://zoom.us/join (Meeting ID: 886 7179 9862) ● Teleconference: +1 669 900 9128 (Access Code 886 7179 9862). WRITTEN COMMENT PERIOD Any interested person, or his or her authorized repre- sentative, may submit written comments relevant to the proposed regulatory actions to the Board. Comments may also be submitted by email to ajackson@ dir.ca.gov.

The written comment period closes at 5:00 p.m. on June 16, 2022. The Board will consider only those comments received at the Board offices by that time. Written comments should be submitted to: Aaron Jackson, Staff Counsel Cal/OSHA Appeals Board 2520 Venture Oaks Way, Suite 300 Sacramento, CA 95833

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 492 AUTHORITY AND REFERENCE Labor Code (LC)

section 148.7 authorizes the Board to adopt, amend, or repeal rules of practice and proce- dure pertaining to hearing appeals and other matters falling within its jurisdiction. The Board is charged with hearing and resolving appeals filed by employ - ers for occupational safety and health citations issued by the Division of Occupational Safety and Health (Division). INFORMATIVE DIGEST/ POLICY STATEMENT OVERVIEW The Board initiates this rulemaking to modify its Rules of Practice and Procedure.

Following the emergence of COVID–19, and the accompanying issuance of a number of local and Statewide safety and health orders, it became extreme- ly difficult for the Board to conduct in–person hear - ings. Nonetheless, the Board still had a duty to pro - ceed with hearings in a timely manner in order to ad - vance occupational safety and health through timely adjudication of employer appeals, and to protect the rights of the parties.

In order to discharge its obliga- tions, the Board, like most other State agencies, tran - sitioned to conducting hearings via videoconference for the safety of its employees, parties, representa - tives, and witnesses. The Board derived authority for videoconference hearings, at least on a temporary ba- sis, from Paragraph 11 of Executive Order N–63–20, Government Code

section 11440.30, and several other existing statutes and regulations. The Executive Order constituted an important, but not exclusive, pillar sup- porting the Board’s authority to conduct videoconfer - ence hearings. As a result of the experience gained with videocon - ference hearings, the Appeals Board found, and many parties noted, that videoconference hearings represent a practical, effective, and efficient method for conduct- ing hearings in many circumstances.

However, paragraph 11 of Executive Order N–63– 20 has recently been withdrawn, removing an import - ant pillar supporting the Board’s authority to conduct videoconference hearings. A new piece of authority takes its place. The California State Legislature, via Assembly Bill 1578 (2021–2022 Reg. Sess.), 1 took action to modify the Administrative Procedure Act (APA) to expand hearing officer discretion to set mat- ters for remote hearings, by amending Government Code

section 11440.30. Those amendments became effective on January 1, 2022. 1 Assemembly Bill Number 1578 (2021–2022 Regular Session), approved by Governor, September 30, 2021 (hereinafter “AB 1578”). To ensure the recognized benefits of remote hear - ings may continue and administrative efficiencies maximized even after COVID–19 abates, and to avoid any confusion regarding the Board’s processes, the Appeals Board proposes amendments to its Rules of Practice and Procedure to make them consistent with, and explicitly adoptive of, some of the provisions of the APA as amended by AB 1578.

The Appeals Board proposes to codify a permanent rule permitting the Board discretion to set videoconference hearings, as well as delineating Board–specific procedures govern- ing selection of the hearing format, through modifica- tion of

Section 376 2 of the Board’s Rules of Practice and Procedure. In sum, the proposed modifications to

Section 376 will not only adopt the newly–amended Government Code

section 11440.30, it will set forth how that

section of the APA will be applied in Board proceedings, providing clear guidance to the regulat - ed community. For non–expedited hearings, the proposed modifica- tions to

section 376 will task the Administrative Law Judge with determining the following: the date(s), time(s), and length for the hearing; the format for con- ducting the hearing, whether in–person or by video - conference or a combination thereof; and, the phys - ical location of the hearing if the hearing includes an in–person format.

These decisions will be case– specific and will be guided by consideration of various listed criteria, such as, without limitation: the place of employment where the violation is alleged to have oc- curred; the location and suitability of Appeals Board hearing venues; the availability of Administrative Law Judges, witnesses, and parties; the location of the par- ties and the witnesses; evidentiary presentation and case management issues; whether multiple hearings can be set on the same day without necessitating a con- tinuance; the parties’ and Administrative Law Judge’s projection of the length of time needed for the hear - ing; transportation barriers or travel distance required for attendance at a hearing, for any party or witness; hardship caused by time away from current employ - ment or other responsibilities that would be required of a party or witness in order to attend a hearing; in - ability of a party or witness to secure care for children, other family members, or dependents that would un - duly hinder travel to a hearing; the health and safety of parties, witnesses, representatives, and Appeals Board staff; any other factors, hardships, or impediments re - quiring a more expeditious hearing date; and stipula - tions of the parties.

For expedited hearings, the Appeals Board shall continue to set the hearings pursuant to the procedures and timeframes set forth in

section 373. All expedited 2 References will be to California Code of Regulations, title 8, unless otherwise specified.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 493 hearings shall initially be set for the videoconference format. However, the Appeals Board may, in its dis - cretion, modify the hearing format after it is initial - ly set. The changes to Government Code

section 11440.30, engendered by AB 1578, also permit a party to object to remote hearings, and require the Administrative Law Judge to consider the objections. The Appeals Board’s proposed modifications to

section 376 will specify how such objections should be submitted in Appeals Board proceedings, and factors relevant to consideration of the objection. Except where other - wise provided, the objection must be submitted by motion. Factors relevant to consideration of the objec- tion include whether the objecting party demonstrates that it will be prejudiced, or that its due process rights will be compromised, by conducting all or part of the hearing by videoconference. Finally, the Board proposes three revisions to its rules of practice and procedure, representing clean– up efforts from prior rulemakings. First,

section 372.8 contains an unnecessary reference to

section 372.9, which should be removed because the

section has been repealed. Second,

section 376.8 has an incorrect cross–reference. It refers to the definition of “hearing record” by an incorrect citation; the definition of hear- ing record is located at

section 347, subdivision (s), not (r). Third, there is a typographical error in

section 372.6, subdivision (c). It references Government Code

Section 11140.30, but the reference should be to sec - tion 11440.30. Anticipated Benefits of the Proposed Regulations: Anticipated Benefits of Proposed Revisions to

Section 376 —Videoconference hearings represent a practical and effective method for conducting hear - ings in appropriate circumstances. They also facili - tate ease of public access to Board hearings. The pro - posed modifications to the Board’s Rules of Practice and Procedure will codify a permanent procedure for setting hearings by videoconference consistent with the amended Administrative Procedure Act.

Anticipated Benefits of Proposed Revisions to Sections 372.6, 372.8 and 376.8—The proposed chang- es to these rules will merely clean–up minor citation and cross–reference errors, ensuring the Board’s rules are internally consistent and clear. Determination of Inconsistency/Incompatibility with Existing State Regulations: The Board has concluded that these changes related to the Board’s Rules of Practice and Procedure are not inconsistent or incompatible with existing state reg - ulations.

After conducting a review for any regula - tions that would relate to or affect this area, the Board has concluded that these are the only regulations that concern the Board’s internal rules of practice and procedure concerning the selection of the hearing time, venue, and format. DISCLOSURES REGARDING THE PROPOSED ACTION Mandate on local agencies and school districts: None. Cost or savings to any state agency: The Board es- timates some costs and savings for both the Appeals Board and the Division of Occupational Safety and Health (Division).

On balance, as noted in the STD 399, the Board anticipates significantly more savings than costs for the Division and the Appeals Board. Estimated Costs: Division Costs: Total Division costs, both labor and equipment, are estimated to be $28,668.96. Appeals Board Costs: Total Board costs, both labor and equipment are estimated to be $20,175.33. Estimated Savings: Division Savings: Total Division savings, both labor and equipment are estimated to be $61,686.66. Appeals Board Savings: Total Board savings, both labor and equipment, are estimated to be $41,851.95.

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. Cost impacts on a representative private person or business: The proposed regulation will only have a cost impact on employers that receive citations for vi- olations of workplace safety orders, and thereafter ap- peal to those citations to the Appeals Board and pro - ceed to hearing.

The Board estimates it conducts, on average, approximately 104 such hearings per year. In total, it is estimated that the cost impact of the proposed regulation is $74,379.28 annually. However, it is esti- mated that savings substantially outweigh costs. Total employer savings are estimated to be $172,329.73. Significant, statewide adverse economic impact directly affecting business, including the ability of California businesses to compete with businesses in other states: None.

Effect on Small Business: In total, it is estimated that small business employers that appeal citations before the Appeals Board, and thereafter proceed to hearing, will accrue $64,338.08 annually in total costs to comply with this regulation over its lifetime; how - ever, as noted above, savings outweigh costs.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 494 Results of the Economic Impact Analysis The Board concludes that it is (1) unlikely that the proposed regulations will either create or eliminate any jobs in the State of California; (2) unlikely that the proposed regulations will lead to the creation of new businesses or the elimination of existing busi - nesses within the State of California; (3) unlikely that the proposed regulations will lead to the expansion of businesses currently doing businesses within the state of California; and (4) unlikely that the proposed regu- lations will have any effect on housing costs.

Benefits of the Proposed Action: The procedural amendments directly benefit the health and welfare of California workers by clarifying and increasing the ef- ficiency in the administrative process generally, which helps achieve the purpose of the Occupational Safety and Health Act and also benefits the public. The pro - posed rule changes will also increase the ease of pub - lic access to Board hearings. In addition, videoconfer- ence hearings represent an important public health tool when necessary to address emergency circumstanc - es.

Finally, the proposed regulations may have a pos - itive effect on the environment in some circumstanc - es. The proposed regulations will permit the Board to set some hearings via videoconference. When that oc- curs, it will negate the need for some parties and/or witnesses to travel to a hearing location, reducing pol- lutants associated with travel via car or airplane. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5 subdivision (a)(13), the Board must determine that no reasonable alternative it considered 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 action is proposed or would be as effective and less burdensome to affected private persons than the proposed action or would be more cost–effective to affected private persons and equally effective in implementing the statutory policy or other provision of law.

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 Inquiries concerning the proposed administrative action may be directed to: Aaron Jackson, Staff Counsel ajackson@dir.ca.gov Cal/OSHA Appeals Board 2520 Venture Oaks Way, Suite 300 Sacramento, CA 95833 Phone Number: (916) 274–5751 Please direct requests for copies of the proposed text (the “express terms”) of the regulations, the ini - tial statement of reasons, the modified text of the regulations, if any, or other information upon which the rulemaking is based to Mr. Jackson at the above address. The designated backup contact person to whom in - quiries may be made is J.

Jeffrey Mojcher, and inqui - ries may be made to: J. Jeffrey Mojcher, Chief Counsel jmojcher@dir.ca.gov Cal/OSHA Appeals Board 2520 Venture Oaks Way, Suite 300 Sacramento, CA 95833 Phone Number: (916) 274–5751 AVAILABILITY 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 Notice Register, the rulemaking file consists of this notice, the proposed text of the regulations and the initial statement of reasons. Copies may be obtained by con- tacting Mr. Jackson at the contact information listed above. AVAILABILITY OF CHANGED OR MODIFIED TEXT After holding the hearing and considering all timely and relevant comments received, the Board may adopt the proposed regulations substantially as described in this notice.

If the Board makes modifications which are sufficiently related to the originally proposed text, it will make the modified text (with the changes clear- ly indicated) available to the public for at least 15 days before the Board adopts the regulations as revised. Please send requests for copies of any modified reg - ulations to the attention of Mr. Jackson at the address indicated above. The Board will accept written com - ments on the modified regulations for 15 days after the date on which they are made available.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 495 AVAILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, copies of the Final Statement of Reasons may be obtained by contacting Mr. Jackson at the above address. AVAILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Action, the Initial Statement of Reasons, and the text of the regula - tions in underline and strikethrough can be accessed through our website at https://www.dir.ca.gov/oshab/ Rulemaking.htm. DISABILITY ACCOMMODATION NOTICE: Disability accommodation is available upon request.

Any person with a disability requiring an accommo - dation, auxiliary aid or service, or a modification of policies or procedures to ensure effective commu - nication and access to the public hearings/meetings of the Occupational Safety and Health Appeals Board should contact the Disability Accommodation Coordinator at (916) 274–5751 or the state–wide Disability Accommodation Coordinator at 1–866– 326–1616 (toll free). The state–wide Coordinator can also be reached through the California Relay Service, by dialing 711 or 1–800–735–2929 (TTY) or 1–800– 855–3000 (TTY–Spanish).

Accommodations can include modifications of pol - icies or procedures or provision of auxiliary aids or services. Accommodations include, but are not limited to, an Assistive Listening System (ALS), a Computer– Aided Transcription System or Communication Access Realtime Translation (CART), a sign language inter - preter, documents in Braille, large print or on comput- er disk, and audio cassette recording. Accommodation requests should be made as soon as possible. Requests for an ALS or CART should be made no later than five (5) days before the hearing. TITLE 13.

NEW MOTOR VEHICLE BOARD NOTICE IS HEREBY GIVEN that the California New Motor Vehicle Board (“Board”), pursuant to the authority vested in the Board by subdivision (

a) of Vehicle Code

section 3050 proposes to adopt the pro - posed regulations as described below, after consider - ing all comments, objections, and recommendations regarding the proposed regulatory action. PROPOSED REGULATORY ACTION The Board proposes to repeal

section 550.20 and amend

section 564 of Title 13 of the California Code of Regulations pertaining to case management. PUBLIC DISCUSSIONS PRIOR TO NOTICE Prior to the publication of this notice, the Board considered and adopted the proposed regulations at a noticed General Meeting held on December 7, 2021. Nineteen (19) days prior to the meeting, a de - tailed agenda including the consideration of the pro - posed text of the regulations was mailed to all indi - viduals and entities on the Board’s Public Mailing list, Electronic Public Mailing list, and website subscrip - tion list. The agenda was also posted on the Board’s website.

No comments by the public were received at the December 7, 2021, General Meeting in relation to the regulations in this notice, and no further public dis - cussion was held prior to publication of the notice. 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 his or her au - thorized representative, no later than 15 days before the close of the written comment period.

WRITTEN COMMENT PERIOD Any person interested, or his or her authorized representative, may submit written comments rele - vant to the proposed regulatory action to the Board by e–mail at danielle.phomsopha@nmvb.ca.gov or nmvb@nmvb.ca.gov or by facsimile (FAX) at (916) 323–1632. The written comment period closes at mid- night on June 14, 2022. The Board will only consider comments received at the Board’s offices by that time. Submit comments to: Danielle R. Phomsopha, Senior Staff Counsel New Motor Vehicle Board P.O.

Box 188680 Sacramento, CA 95818–8680 (916) 327–3129 direct line (916) 445–1888 main line (916) 323–1632 fax danielle.phomsopha@nmvb.ca.gov AUTHORITY AND REFERENCE Vehicle Code

section 3050, subdivision (a), autho - rizes the Board to amend the proposed regulations.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 496 The proposed regulations implement, interpret, and make specific Vehicle Code

section 3050. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW The adopted mission of the Board is to “enhance re- lations between dealers and manufacturers through - out the State by resolving disputes in the new motor vehicle industry in an efficient, fair and cost–effective manner.” The adopted vision statement provides that the Board “demonstrate professionalism, integrity, and accountability in securing fair resolutions to mo - tor vehicle industry disputes.” The Board proposes to repeal

Section 550.20 and amend

Section 564 to update the information neces - sary to conform the regulations with statute. In addi - tion, there are no longer any references in the Board’s statutes requiring the Board to send decisions by reg - istered mail, so this specific language in the Board’s regulation should be removed.

Section 550.20 specifically describes the use of cer- tified mail in lieu of registered mail. However, effec - tive January 1, 2016, all references to registered mail in Vehicle Code sections 3066–3068 were replaced with certified mail. There are no remaining Vehicle Code sections that require the Board to send notices or other communications by registered mail.

Section 564 describes decisions in regard to peti - tions. This regulation is being amended to remove reference to registered mail because there are no re - maining references to registered mail in the Board’s statutes. OBJECTIVE AND ANTICIPATED BENEFITS OF THE PROPOSED REGULATION The broad objective of the regulations is to clarify for litigants that appear before the Board the informa - tion necessary to effectively represent themselves or their clients.

The specific benefit anticipated from the regulations is promoting the expeditious and economical resolu - tion of statutorily enumerated disputes between new motor vehicle dealers (franchisees) and their manufac- turers or distributors (franchisors). The Board keeps these types of cases from further clogging our already congested courts. It provides a uniformity of deci - sions across the state, allowing franchisors and their dealers to conduct their business in compliance with California law.

EVALUATION OF INCONSISTENCY/ INCOMPATIBILITY WITH EXISTING STATE REGULATIONS The Board conducted an evaluation of the proposed regulations’ potential inconsistency or incompatibility with existing state regulations and has found that they are neither inconsistent nor incompatible with existing state regulations.

DISCLOSURES REGARDING THE PROPOSED ACTION The Board has made the following initial determinations: ■ Mandate on local agencies and school districts: None. ■ Cost or savings to any state agency: None. ■ Cost to any local agency or school district which must be reimbursed in accordance with Government Code sections 17500 through 17630: None. ■ Other nondiscretionary cost or savings imposed on local agencies: None. ■ Cost or savings in federal funding to the state: None. ■ Cost impacts on a representative private person or business: The Board is not aware of any cost impacts that a representative private person or business would nec - essarily incur in reasonable compliance with the pro - posed action. ■ Significant, statewide adverse economic impact directly affecting businesses, including the abil - ity of California business to compete with busi - nesses in other states: None. ■ Significant effect on housing costs: None.

RESULTS OF THE ECONOMIC IMPACT ANALYSIS/ASSESSMENT The Board concludes that the proposed regula - tions will not (1) create any jobs within the State of California, (2) eliminate any jobs within the State of California, (3) create any new businesses within the State of California, (4) eliminate any existing busi - nesses within the State of California, or (5) cause the expansion of businesses currently doing business within the State of California. BENEFITS OF THE REGULATION The proposed regulations will promote the expedi - tious and economical resolution of disputes between

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 497 new motor vehicle dealers and their manufacturers or distributors. SMALL BUSINESS DETERMINATION The Board has determined that the proposed regu - lations will have no effect on small businesses. This determination was made because no small business - es are legally required to comply with the regulations, are legally required to enforce the regulations, or de - rive a benefit from or incur an obligation from the en- forcement of the regulations.

The proposed regula - tions merely clarify case management for franchised new motor vehicle dealers and their franchisors (new vehicle manufacturers or distributors) who choose to file a protest or petition with the Board. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5, subdivision (a)(13), the Board must determine that no reasonable alternative it considered or that has otherwise been identified and brought to the attention of the Board would be more effective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private 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.

The Board invites interested persons to present comments, statements or arguments with respect to al- ternatives to the proposed regulation, during the writ - ten comment period or at the public hearing, if one is requested. CONTACT PERSONS Please direct requests for copies of the proposed text (the “express terms”) of the regulations, the ini - tial statement of reasons, the modified text of the reg - ulations, if any, or other information upon which the rulemaking is based to Ms. Phomsopha at the follow - ing address: Danielle R. Phomsopha, Senior Staff Counsel New Motor Vehicle Board P.O.

Box 188680 Sacramento, CA 95818–8680 (916) 327–3129 direct line (916) 445–1888 main line (916) 323–1632 fax danielle.phomsopha@nmvb.ca.gov The backup contact person for these inquiries is: Robin P. Parker, Chief Counsel New Motor Vehicle Board P.O. Box 188680 Sacramento, CA 95818–8680 (916) 323–1536 direct line (916) 445–1888 main line (916) 323–1632 fax robin.parker@nmvb.ca.gov AVAILABILITY OF STATEMENT OF REASONS, TEXT OF PROPOSED REGULATION, AND RULEMAKING FILE The Board will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its offices by appointment.

Please contact the contact persons listed above should you wish to make an appointment for in–office inspec- tion and copying. As of the date this notice is published in the Notice Register, the rulemaking file consists of this notice, the proposed text of the regulations, the initial statement of reasons, the Economic and Fiscal Impact Statement, and all the information upon which the proposal is based. Copies may be obtained by con- tacting the contact persons identified above.

AVAILABILITY OF CHANGED OR MODIFIED TEXT After considering all timely and relevant comments received, the Board may adopt the proposed regula - tions substantially as described in this notice. If the Board makes modifications which are sufficiently re - lated to the originally proposed text, it will make the modified text (with the changes clearly indicated) avail- able to the public for at least 15 days before the Board adopts the regulations as revised. Requests for copies of any modified regulations should be addressed to the Board contact person or back–up contact person at the addresses indicated above.

The Board will accept writ- ten comments on the modified regulations for 15 days after the date on which they are made available to the public. AVAILABILITY OF THE FINAL STATEMENT OF REASONS Upon completion of the Final Statement of Reasons, copies thereof may be obtained by contacting Ms. Phomsopha or Ms. Parker at the above address. AVAILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Action, the Initial Statement of Reasons, and the text of the regulations in

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 498 TITLE 14. OF FICE OF ENERGY INFRASTRUCTURE SAFETY

CHAPTER 2. I NVESTIGATION AND COMPLIANCE

ARTICLE 1. R EPORTING, INVESTIGATIONS, VIOLATIONS SECTIONS 29300, 29302 The Office of Energy Infrastructure Safety (Energy Safety) proposes to adopt the regulations described below (Proposed Regulation) after considering all comments, objections, and recommendations regard - ing the proposed action. PUBLIC HEARING Energy Safety has not scheduled a public hearing on this proposed action. However, Energy Safety will hold a public hearing to accept comments if a written request is received from any interested person, or his or her authorized representative, no later than 15 days before the close of the 45–day written comment pe - riod, pursuant to Government Code

section 11346.8. Submit requests to the contact person indicated below.

WRITTEN COMMENT PERIOD Any interested person, or their authorized represen- tative, may submit written comments relevant to the proposed regulatory action to: Comments may be submitted in the 2022 Rulemaking Docket at: https://efiling.energysafety.ca.gov/EFiling/ DocketInformation.aspx?docketnumber=2021–RM For e–filing questions, contact Energy Safety at: efiling@energysafety.ca.gov Comments can be mailed to: Office of Energy Infrastructure Safety 715 P Street, 20th Floor Sacramento, California 95814 Comments can be emailed to: info@energysafety.ca.gov The written comment period opens on April 29, 2022 and closes on June 13, 2022.

Energy Safety will only consider comments received on or before that date. When commenting, please indicate the proposed rulemaking action to which your comment refers. AUTHORITY AND REFERENCE Government Code sections 15473 and 15475 au - thorize Energy Safety to adopt the proposed regula - tions. The proposed regulations implement, interpret, clarify, and make specific Government Code sections 15473 and 15475.

INFORMATIVE DIGEST & POLICY STATEMENT OVERVIEW This rulemaking action sets forth the notification requirements for utilities in the event of a fault, out - age, or other system anomaly; provides the scope of investigations; and defines notice of defect and notice of violation.

Summary of Existing Laws and Effect of the Proposed Action Pursuant to Government Code

section 15473(c)(2) (E), the Energy Safety director may adopt, amend, and repeal regulations as necessary to carry out the powers, duties, and responsibilities of the California Energy Infrastructure Safety Act,

section 326 and sec- tions 8385 to 8389, inclusive, of the Public Utilities Code, and other statutes pertaining to Energy Safety. Under Government Code

section 15475, Energy Safety may require information and data, including monitoring, verification of every regulated entity (an entity that is regulated by Energy Safety) 1 and any business that is a subsidiary or affiliate of a regulated entity with respect to or that may influence any matter concerning wildfire safety. Under Government Code

section 15473(c)(2)(D), Energy Safety can conduct investigations in any part of the state, compel information, and hold hearings, public meetings, or workshops as necessary to carry out the powers, duties, and responsibilities of the of - fice, consistent with the exercise of its authority pur - suant to the California Energy Infrastructure Safety Act. Pursuant to Government Code

section 15475.1, Energy Safety may determine that a regulated enti - ty is not in compliance with any matter under its au- thority. Energy Safety may investigate whether the regulated entity is noncompliant with its duties and 1 There are eight entities who are regulated by Energy Safety:

(1) Pacific Gas and Electric Company (PG&E),

(2) Southern Califor - nia Edison Company,

(3) San Diego Gas & Electric Company,

(4) Liberty Utilities,

(5) PacifiCorp,

(6) Bear Valley Electric Service, Inc. (Bear Valley),

(7) Horizon West, and

(8) Trans Bay Cable LLC. (See Pub. Util. Code § 8 385(b) [Energy Safety shall super - vise an electrical corporation’s compliance with the requirements of

Chapter 6, Division 4.1 of the Public Utilities Code]; Pub. Util. Code § 2 18 [Electrical corporation includes every corporation or person owning, controlling, operating, or managing any electrical plant for compensation within California, except where electrici - ty is generated on or distributed by the producer through private property solely for its own use or the use of its tenants and not for sale or transmission to others].) underline and strikeout font can be accessed through the Board’s website at www.nmvb.ca.gov.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 499 responsibilities or whether the entity violated any law, regulations, or guidelines within the authority of the office. Under Government Code

section 15475.2, Energy Safety may issue a notice of defect or violation to direct the regulated entity to correct any defect or noncompliance with the approved wildfire mitigation plan or failure to comply with any laws, regulations, or guidelines within Energy Safety’s authority. Energy Safety’s mission is to advance long–term utility wildfire safety by developing data–driven, comprehensive utility wildfire mitigation evalua - tion and compliance criteria, collaborating with lo - cal, state and federal agencies, and supporting efforts to improve utility wildfire safety culture and innova - tion.

Energy Safety will ensure electrical utilities are taking effective actions to reduce utility–related wild - fire risk by deploying measures to ensure an integrat - ed, utility–related wildfire mitigation approach and to seek innovative problem solving to address utility wildfire risks.

Effect of Proposed Rulemaking The Proposed Regulation will provide a clear framework for Energy Safety to interact with regu - lated entities so they understand how Energy Safety obtains information, what information is required to be provided, and how Energy Safety ensures compli - ance with requirements imposed on regulated entities. The Proposed Regulation sets forth the notification requirements for utilities in the event of a fault, out - age, or other system anomaly; provides the scope of investigations; and defines notice of defect and notice of violation.

Objective and Anticipated Benefits of the Proposed Regulation The overall objective of the Proposed Regulation is to provide a clear framework to interact with regulated entities through establishing notification requirement for faults, outage, and anomalies, providing the scope of Energy Safety’s investigation, and defining notice of defect and notice of violation, thereby creating a clear compliance process. A clear process will assist Energy Safety with its compliance activities and will assist the regulated entities’ in efficiently responding to these activities.

This, in turn, will promote better wildfire safety. Specifically, submission of this information will help Energy Safety better understand and study the types of events that Wildfire Mitigation Plans are in - tended to prevent. This understanding, in turn, helps Energy Safety better ensure compliance with applica - ble law, regulations, and guidelines and improve wild- fire safety. Relatedly, a clear scope of investigation and

definitions as to what “notice of defect” and “no - tice of violation” entail will provide a better result to the compliance process. Regulated entities will under- stand exactly the type of investigation they are under, what deficiency, error, risky condition, or non–com - pliance Energy Safety identified, and what regulated entities need to do in response to a notice of defect or violation. This will protect the people of California and the environment from deadly wildfires that may result from regulated entities’ infrastructure.

Evaluation of Inconsistency or Incompatibility with Existing State Regulations Energy Safety has determined that this proposed regulation is not inconsistent or incompatible with ex- isting regulations. After conducting a review for any regulations that would relate to or affect this area, Energy Safety has concluded that these are the only regulations that con- cern notification requirement for faults, outage, and anomalies for data collection and compliance purpos - es, scope of Energy Safety’s investigation, and defi - nitions of notice of defect and notice of violation in California.

Comparable Federal Regulations or Statutes Energy Safety has determined that there are no comparable federal regulations or statutes. Other Matters Prescribed by Statute Applicable to the Agency or Any Specific Regulation or Class of Regulations Under Government Code

section 15473(c)(2)(E), the Energy Safety director may adopt, amend, and re - peal regulations as necessary to carry out the powers, duties, and responsibilities of the California Energy Infrastructure Safety Act,

section 326 and sections 8385 to 8389, inclusive, of the Public Utilities Code, and other statutes pertaining to Energy Safety. Under Government Code

section 15475, Energy Safety may require information and data, including monitoring, verification of every regulated entity (an entity that is regulated by Energy Safety) 2 and any business that is a subsidiary or affiliate of a regulated entity with respect to or that may influence any matter concerning wildfire safety. Under Government Code

section 15473(c)(2)(D), Energy Safety can conduct investigations in any part of the state, compel information, and hold hearings, public meetings, or workshops as necessary to carry out the powers, duties, and responsibilities of the of - fice, consistent with the exercise of its authority pur - suant to the California Energy Infrastructure Pursuant to Government Code

section 15475.1, Energy Safety may determine that a regulated entity is not in compli- ance with any matter under its authority, and investi - gate as to whether the regulated entity is noncompliant 2 There are eight entities who are regulated by Energy Safety:

(1) Pacific Gas and Electric Company (PG&E),

(2) Southern Califor - nia Edison Company,

(3) San Diego Gas & Electric Company,

(4) Liberty Utilities,

(5) PacifiCorp,

(6) Bear Valley Electric Service, Inc. (Bear Valley),

(7) Horizon West, and

(8) Trans Bay Cable LLC.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 500 with its duties and responsibilities or if the entity vi - olated any law, regulations, or guidelines within the authority of the office. Under Government Code sec - tion 15475.2, Energy Safety may issue a notice of de - fect or violation to direct the regulated entity to cor - rect any defect or noncompliance with the approved wildfire mitigation plan or failure to comply with any laws, regulations, or guidelines within Energy Safety’s authority.

DISCLOSURES REGARDING THE PROPOSED ACTION Energy Safety has made the following initial determinations. 1. Ma ndate on local agencies or school districts: Energy Safety has determined the adoption of the Proposed Regulation will not impose a local mandate. 2. C ost or savings to any state agency: Energy Safety will absorb additional costs associated with reviewing notifications provided pursuant to

section 29300 with its staff. Energy Safety esti - mates that the total fiscal costs to state govern - ment for reviewing all notifications will range from $6,218.40 to $19,358.40. Energy Safety has determined there will not be any additional costs to any state agency as associated with

section 29302. 3. C ost to any local agency or school district which must be reimbursed in accordance with Government Code sections 17500 through 17630: Energy Safety has determined that the adoption of the Proposed Regulation will not re - sult in costs or savings for any local agency or school district required to be reimbursed pursu- ant to

Part 7 of Division 4, commencing with sec- tion 17500 of the Government Code, or other non- discretionary costs or savings imposed on local agencies. 4. O ther nondiscretionary costs or savings im - posed on local agencies: Energy Safety has determined that the adoption of the Proposed Regulation will not result in costs or savings for any local agency or school district required to be reimbursed pursuant to

Part 7 of Division 4, com- mencing with

section 17500 of the Government Code, or other nondiscretionary costs or savings imposed on local agencies. 5. C ost or savings in federal funding to the state: Energy Safety has determined that adoption of the Proposed Regulation will not result in cost or savings in federal funding to the state. Energy Safety determined that no fiscal impact to federal funding or state programs exists. 6.

C ost impacts on a representative private per - son or business: Energy Safety estimates the ini- tial annual cost for the eight (8) affected regulat - ed entities for providing notifications to Energy Safety would range from $14,416 to $469,374.10. Because each regulated entity varies in size and has their own business operations, Energy Safety cannot predetermine the actions a regulated enti - ty will take in the subsequent years, such as real - location of its staff, redistribution of work to ex - isting staff, or consolidation of staff functions.

Wildfires caused by regulated entities may also change regulated entities’ internal structure and reporting needs. Therefore, Energy Safety cannot speculate as to the costs over the regulated enti - ties’ lifetime. E nergy Safety relied on its past data collection data, information provided by regulated entities, and U.S. Bureau of Labor Statistics. Due to the widely divergent responses (three 3 regulated enti- ties responded to Energy Safety’s request for cost estimates), Energy Safety’s analysis pulled esti - mates from its past data collection and used wage estimates from U.S.

Bureau of Labor Statistics for an independent analysis. Given a lack of data and many uncertainties surrounding the effort re- quired to complete the notification process de - fined in the Proposed Regulation, these initial costs may be overestimated.

In addition, as noted above Energy Safety cannot predetermine the ac- tions a regulated entity will take in the subsequent years, such as change in its internal processes and reporting needs, reallocation of its staff, redistri - bution of work to existing staff, or consolidation of staff functions. 4 Therefore, the cost estimates 3 PG&E, SCE, and Bear Valley responded, but SCE’s data did not include sufficient information to derive the cost per notifica - tion to be comparable with other data.

Therefore, Energy Safety did not include the data in its analysis. 4 Given the small number of notifications across multiple regu - lated entities that Energy Safety has received in the past pursuant to its emergency regulations, it is unlikely that regulated entities will expend the initial expenditure continuously in subsequent - ly years. Regulated entities may consolidate work functions or reallocation staff time to cover multiple types of reporting for ef - ficiency.

For example, regulated entities report to Public Utilities Commission (CPUC) electric incidents (accidents involving elec - tric facilities) that meets the below criteria: • A f atality or injury involving electric facilities. • D amage to property of the utility or others in excess of $50,000. • S ignificant media coverage. • A major outage to at least 10% of the utilities entire service territory is experienced at a single point in time.

Electric utility must report these types of incidents to CPUC within two (2) hours of their occurrence. (See https://www.cpuc.ca.gov/regulatory–services/safety/ electric–safety–and–reliability–branch/electric–generation– safety–and–reliability/incident–investigations–for–electric– and–communication–facilities.)

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 501 provided here are unlikely to duplicate over sub - sequent years. 7. S ignificant, statewide adverse economic im - pact directly affecting businesses, including the ability of California businesses to compete with businesses in other states: Although the proposed action will directly affect eight regulat- ed entities in California, Energy Safety concludes that there will be no significant adverse econom - ic impact, including on the ability of California businesses to complete with businesses in other states. 8.

E ffect of Housing Costs: Energy Safety has de - termined that the Proposed Regulation will have no significant effect on housing costs. 9. E ffect on Small Businesses: Energy Safety has determined that no small businesses will be af - fected by the adoption of the Proposed Regulation. The Proposed Regulation will affect eight (8) reg- ulated entities, and they are not small businesses. E nergy Safety assessed the potential for this pro - posed regulation to cause adverse impacts to California businesses and individuals.

Following a review of cost estimation provided by regulated entities and an economic analysis performed by its consultant, Energy Safety determined the pro- posed regulation is not a major regulation 5 and is unlikely to have a significant adverse impact on business. This Economic Impact Assessment is also based on the conclusion there are only eight (8) regulated entities that meet the definition of “electrical corporation” and are currently under Energy Safety’s authority. 10.

B usiness Reporting Requirement: Energy Safety finds that it is necessary for the health, safety, or welfare of the people of this state that proposed

section 29300, which require a report, apply to regulated entities. T he reporting requirement is necessary to pro - mote better wildfire safety. Good data submission will help Energy Safety better understand and study the types of events that Wildfire Mitigation Plans are intended to prevent. This understand - ing, in turn, helps Energy Safety better enforce and ensure compliance by regulated entities with applicable law, regulations, and guidelines to en- sure improved wildfire safety. Relatedly, a clear scope of investigation and

definitions as to what notice of defect and notice of violation entail will provide a better result to the compliance process. 5 Major regulation: Government Code

section 11342.548 defines a “major regulation” as any proposed adoption of a regulation that will have an economic impact on California businesses in an amount exceeding $50 million dollars as estimated by the adopt - ing agency. Regulated entities will understand exactly the type of investigation they are under, what defi - ciency, error, risky condition, or non–compliance Energy Safety identified, and what regulated en - tities need to do in response to a notice of de - fect or violation.

This in turn will promote bet - ter wildfire safety, which in turn will protect California’s people and environment from deadly wildfires that may result from regulated entities’ infrastructure. 11. B enefits to health and welfare, worker safety, and the environment The primary goal of the Proposed Regulation is to ensure better wildfire safety with respect to regulated entities by ensur- ing better compliance through clearer parameters for data submission, investigation scope, and no - tice

definitions. By providing clear directives to regulated entities, Energy Safety sets in motion its process to ensure regulated entities comply with applicable law, regulations, and guidelines. This will reduce future chances of wildfires from reg - ulated entities’ infrastructure and provide a safer and healthier environment to California residents and wildlife with fewer wildfires. Less wildfires will also benefit California workers, consumers, employers, and the environment.

RESULTS OF THE ECONOMIC IMPACT ASSESSMENT Energy Safety determined that it is: ● U nlikely that the Proposed Regulation will elim - inate existing or create new businesses providing electrical power within California. ● U nlikely that the Proposed Regulation will elim - inate jobs for regulated entities. ● U nlikely that the Proposed Regulation will create jobs for regulated entities to assist regulated enti- ties in providing notifications to Energy Safety. ● U nlikely that any business in California will be expanded because of any financial impact of the Proposed Rulemaking for both

Section 29300 and

Section 29302. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5, subdivision (a)(13), Energy Safety must de - termine that no reasonable alternative considered by Energy Safety or that has otherwise been iden - tified and brought to the attention of Energy Safety would be more effective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost effective

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 502 to affected private persons and equally effective in im- plementing the statutory policy or other provision of law. Energy Safety invites interested persons to present statements or arguments with respect to alternatives to the proposed regulation during the written comment period.

CONTACT PERSONS Inquiries concerning the proposed action may be di- rected to, Jeff Brooks Office of Energy Infrastructure Safety 715 P Street, 20th Floor Sacramento, California 95814 jeff.brooks@energysafety.ca.gov (916) 926–1672 Or, if unavailable, to, Joy Peng Office of Energy Infrastructure Safety 715 P Street, 20th Floor Sacramento, California 95814 joy.peng@energysafety.ca.gov (279) 336–1768 Please direct requests for copies of the proposed text (the “express terms”) of the regulation, the Initial Statement of Reasons, the modified text of the reg - ulation, if any, or other information upon which the rulemaking is based to Jeff Brooks using the contact information above.

AVAILABILITY OF DOCUMENTS Availability of Statement of Reasons, Text of Proposed Regulation, and Rulemaking File Energy Safety will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its office at the above ad - dress. As of the date this Notice is published in the Notice Register, the rulemaking file consists of this Notice, the proposed text of the regulation, the Initial Statement of Reasons, and the documents relied upon. Copies may be obtained by contacting Jeff Brooks us- ing the contact information above.

AVAILABILITY OF CHANGED OR MODIFIED TEXT After holding the hearing and considering all timely and relevant comments received, Energy Safety may adopt the proposed regulation substantially as de - scribed in this Notice. If Energy Safety makes modifi- cations which are sufficiently related to the originally proposed text it will make the modified text, with the changes clearly indicated, available to the public for at least 15 days before ENERGY SAFETY adopts the regulation as revised. Please send requests for copies of any modified text to the attention of Jeff Brooks us- ing the contact information above.

Energy Safety will accept written comments on the modified text for 15 days after the date on which it is made available. AVAILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, copies of the Final Statement of Reasons may be obtained by contacting Jeff Brooks using the contact information above. AVAILABILITY OF DOCUMENTS ON THE INTERNET Copies of this Notice, the proposed text of the regu- lation, and the Initial Statement of Reasons can be ac- cessed at: https://efiling.energysafety.ca.gov/Lists/ DocketLog.aspx?docketnumber=2022–RM TITLE 14. OFFICE OF ENERGY INFRASTRUCTURE SAFETY

CHAPTER 1. RULES OF PRACTICE AND PROCEDURE

ARTICLE 2. PROCEEDINGS SECTIONS 29100, 29101

ARTICLE 3. DATA COLLECTION, DATA ACCESS AND CONFIDENTIALITY

SECTION 29200 E–FILING, FORMATTING REQUIREMENTS, SUBMISSION OF CONFIDENTIAL INFORMATION The Office of Energy Infrastructure Safety propos - es to adopt the regulations described below (e–filing, document formatting, confidential information) after considering all comments, objections, and recommen- dations regarding the proposed action. PUBLIC HEARING Energy Safety has not scheduled a public hearing on this proposed action. However, the Energy Safety will hold a public hearing to accept comments if a written

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 17-Z 503 request is received from any interested person, or his or her authorized representative, no later than 15 days before the close of the 45–day written comment pe - riod, pursuant to Government Code

section 11346.8. Submit requests to the contact person indicated below.

WRITTEN COMMENT PERIOD Any interested person, or their authorized represen- tative, may submit written comments relevant to the proposed regulatory action to: Comments may be submitted in the 2022 Rulemaking Docket at: https://efiling.energysafety.ca.gov/EFiling/ Docketlnformation.aspx?docketnumber=2021–RM For e–filing questions, contact Energy Safety at: efiling@energysafety.ca.gov Comments can be mailed to: Office of Energy Infrastructure Safety 715 P Street, 20th Floor Sacramento, California 95814 Comments can be emailed to: info@energysafety.ca.gov The written comment period opens on April 29, 2022 and closes on June 13, 2022.

Energy Safety will consider only comments received on or before that date. When commenting, please indicate the proposed rulemaking action to which your comment refers. AUTHORITY AND REFERENCE Government Code sections 15473 and 15475 autho- rize Energy Safety to adopt the proposed regulations. The proposed regulations implement, interpret, clar - ify, and make specific sections 6250 through 6254, 7405, 15472, 15473, and 15475 of the Government Code, and

section 583 of the Public Utilities Code. INFORMATIVE DIGEST & POLICY STATEMENT OVERVIEW This rulemaking action clarifies and makes specific the directions for requesting confidential treatment of information submitted to Energy Safety and for for - matting and submitting documents to Energy Safety.

Summary of Existing Laws and Effect of the Proposed Action Government Code

section 15473(c)(2)(

E) authoriz - es Energy Safety to Adopt, amend, and repeal regula - tions as necessary to carry out the powers, duties, and responsibilities of the office. Government Code

section 6253.10 requires Energy Safety to ensure that documents published on its web- site are in an open format that is Retrievable, down - loadable, indexable, and electronically searchable. Government Code

section 7405 requires Energy Safety to ensure that documents published on its web- site comply with the accessibility requirements of

Section 508 of the federal Rehabilitation Act of 1973, as amended (29 U.S.C.

Sec. 794d), and regulations im- plementing that act as set forth in

Part 1194 of Title 36 of the Federal Code of Regulations. Government Code

section 15475(

g) requires regu - lated electricity utilities to provide information “in the form and detail as the office prescribes.” Government Code

section 6250, et seq., the California Public Records Act, requires Energy Safety to provide members of the public with access to docu- ments used to conduct Energy Safety’s business. Public Utilities Code

section 583 prohibits the California Public Utilities Commission from disclos - ing information that a public utility submits to the Commission except for information which the Public Utilities Act (Pub. Util. Code §§ 201 – 2282.5) re - quires “to be open to the public.” Government Code

section 15475(

c) provides that Energy Safety will con- tinue to receive information that was submitted to the Public Utility Commission’s former Wildfire Safety Division. This subdivision requires Energy Safety to comply with the Public Utilities Code

section 583 pro- hibitions against disclosure of information. Government Code

section 15475(

c) also requires Energy Safety to (1) maintain the confidentiality of information submitted by public utilities in a manner “consistent with appropriate protections,” and (2) to “provide for the confidentiality of records, the protec- tion of proprietary information, and the protection of the reasonable expectation of customers of public util- ities in the privacy of customer–specific records main- tained by” the public utility. Objective and Anticipated Benefits of the Proposed Regulations The broad objectives of the regulations are