Time- Dated Material GAVIN NEWSOM, GOVERNOR OFFICE OF ADMINISTRATIVE LAW California Regulatory Notice Register REGISTER 2022, NUMBER 29-Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW JULY 22, 2022 PROPOSED ACTION ON REGULATIONS TITLE 2. FAIR POLITICAL PRACTICES COMMISSION Conflict–of–Interest Code — Notice File Number Z2022–0712–04 ......................................... 815 AMENDMENT STATE AGENCY: California State Auditor’s Office TITLE 2.

STATE ALLOCATION BOARD The California Preschool, Transitional Kindergarten and Full–Day Kindergarten Facilities Grant Program — Notice File Number Z2022–0712–01 ................................................. 816 TITLE 10. DEPARTMENT OF INSURANCE Conflict–of–Interest Code — Notice File Number Z2022–0712–02 ......................................... 827 TITLE 10. DEPARTMENT OF REAL ESTATE Regulations to Implement Senate Bill 263 — Notice File Number Z2022–0712–05 ............................ 828 TITLE 15.

DEPARTMENT OF CORRECTIONS AND REHABILITATION Authorized Personal Property — Notice File Number Z2022–0701–05 ..................................... 830 TITLE 15. DEPARTMENT OF CORRECTIONS AND REHABILITATION California Out–of–State Correctional Facility Program — Notice File Number Z2022–0622–01 ................. 833 GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE Consistency Determination Request for Spring Run Chinook Salmon Restoration Project Phase 2, Tracking Number 1653–2022–095–001–R1, Trinity County .............................................. 836 (Continued on next page)

PETITION DECISION BUREAU OF AUTOMOTIVE REPAIR Decision on Petition to Amend or Repeal Motor Vehicle Inspection Program Regulations and or Proposed Regulations ............................................................ 836

SUMMARY OF REGULATORY ACTIONS Regulations filed with Secretary of State .............................................................. 838 2022 RULEMAKING CALENDAR (Incorporated by Reference) Special Note .................................................................................... 839 The California Regulatory Notice Register is an official state publication of the Office of Administrative Law containing notices of proposed regulatory actions by state regulatory agencies to adopt, amend or repeal regulations contained in the California Code of Regulations.

The effective period of a notice of proposed regulatory action by a state agency in the California Regulatory Notice Register shall not exceed one year [Government Code § 11346.4(b)]. It is suggested, therefore, that issues of the California Regulatory Notice Register be retained for a minimum of 18 months. CALIFORNIA REGULATORY NOTICE REGISTER is published weekly by the Office of Administrative Law, 300 Capitol Mall, Suite 1250, Sacramento, CA 95814-4339. The Register is printed by Barclays, a subsidiary of West, a Thomson Reuters Business, and is offered by subscription for $205.00 (annual price).

To order or make changes to current subscriptions, please call (800) 328−4880. The Register can also be accessed at https://oal.ca.gov .

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 815 PROPOSED ACTION ON REGULATIONS Information contained in this document is published as received from agencies and is not edited by Thomson Reuters. TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION NOTICE IS HEREBY GIVEN that the Fair Polit - ical Practices Commission, pursuant to the authority vested in it by Sections 82011, 87303, and 87304 of the Government Code to review proposed conflict–of– interest codes, will review the proposed/amended conflict–of–interest codes of the following: CONFLICT–OF–INTEREST CODES AMENDMENT STATE AGENCY: California State Auditor’s Office A written comment period has been established commencing on July 22, 2022 and closing on Sep - tember 5, 2022.

Written comments should be directed to the Fair Political Practices Commission, Attention Daniel Vo, 1102 Q Street, Suite 3000, Sacramento, Califor nia 95811. At the end of the 45–day comment period, the pro - posed conflict–of–interest code 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 will be submitted to the Commission for review. The Executive Director of the Commission will review the above–referenced conflict–of–interest code, proposed pursuant to Government Code Sec - tion 87300, which designate, pursuant to Government Code

Section 87302, employees who must disclose certain investments, interests in real property and income. The Executive Director of the Commission, upon his or its own motion or at the request of any interest - ed person, will approve, or revise and approve, or re - turn the proposed code 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.

Any written com - ments must be received no later than September 5, 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 in- creased costs to local government which may result from compliance with these codes because these are not new programs mandated on local agencies by the codes since the requirements described herein were mandated by the Political Reform Act of 1974. There- fore, they are not “costs mandated by the state” as de- fined in Government Code

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

REFERENCE Government Code Sections 87300 and 87306 pro - vide that agencies shall adopt and promulgate conflict– of–interest codes pursuant to the Political Reform Act and amend their codes when change is necessitated by changed circumstances. CONTACT Any inquiries concerning the proposed conflict– of–interest code should be made to Daniel Vo, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322–5660.

A VAILABILITY OF PROPOSED CONFLICT–OF–INTEREST CODES Copies of the proposed conflict–of–interest codes may be obtained from the Commission offices or the respective agency. Requests for copies from the Com- mission should be made to Daniel Vo, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sac- ramento, California 95811, telephone (916) 322–5660.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 816 TITLE 2.

STATE ALLOCATION BOARD ADOPT REGULATION SECTIONS 1860.5.1 AND 1860.5.2, AND AMEND REGULATION SECTIONS 1860 THROUGH 1860.21, ALONG WITH THREE ASSOCIATED FORMS AND THE GRANT AGREEMENT TEMPLATES RELATING TO THE CALIFORNIA PRESCHOOL, TRANSITIONAL KINDERGARTEN AND FULL–DAY KINDERGARTEN FACILITIES GRANT PROGRAM PROPOSED AMENDMENTS TO THE FOLLOWING REGULATION SECTIONS: ● 1860, 1860.2, 1860.3, 1860.4, 1860.5, 1860.6, 1860.7, 1860.8, 1860.9, 1860.10, 1860.10.1, 1860.10.2, 1860.10.3, 1860.11, 1860.12, 1860.13, 1860.15, 1860.16, 1860.18, 1860.19, 1860.20, and 1860.21 PROPOSED ADOPTION OF THE FOLLOWING REGULATION SECTIONS: ● 1860.5.1 and 1860.5.2 PROPOSED AMENDMENTS TO THE FOLLOWING FORMS: ● Form SAB 70–01, Application for Funding (Rev. 01/22), which is incorporated by reference and referenced in Regulation

Section 1860.2 ● Form SAB 70–02, Fund Release Authorization (Rev. 01/22), which is incorporated by reference and referenced in Regulation

Section 1860.2 ● Form SAB 70–03, Expenditure Report (Rev. 01/22), which is incorporated by reference and referenced in Regulation

Section 1860.2 ● Grant Agreement (Rev. 01/22), which is incorpo- rated by reference and referenced in Regulation

Section 1860.2 NOTICE IS HEREBY GIVEN that the State Allo - cation Board (SAB) proposes to adopt and amend the above–referenced regulation sections, as well as three associated forms and the grant agreement templates, contained in Title 2, California Code of Regulations (CCR). A public hearing is not scheduled. A public hearing will be held if any interested person, or his or her duly authorized representative, submits a writ - ten request for a public hearing to the Office of Public School Construction (OPSC) no later than 15 days pri- or to the close of the written comment period.

Follow- ing the public hearing, if one is requested, or follow - ing the written comment period if no public hearing is requested, OPSC, at its own motion or at the instance of any interested person, may adopt the proposals sub- stantially as set forth above without further notice. AUTHORITY AND REFERENCE CITATIONS The SAB is proposing to adopt and amend the above–referenced regulation sections under the au - thority provided by Sections 17280, 17375, 17375(a), 17375(b), 17375(b)(2), 17375(b)(3), 17375(b)(4), 17375(c), 17375(f), 17375(h), and 17375(

i) of the Educa- tion Code; 16304 and 16304.1 of the Government Code. The proposals interpret and make specific reference Sections 8973, 17072.10(b), 17072.10(d), 17072.10(e), 17074.10(e), 17075.10, 17075.15, 17280, 17375, 17375(a), 17375(b), 17375(b)(2), 17375(b)(2)(A), 17375(b)(2)(B), 17375(b)(3), 17375(b)(4), 17375(c), 17375(d), 17375(f ), 17375(h) 17375(i), 41024, and 42238.01(

a) of the Edu- cation Code; and 1771.3 and 1771.5, Labor Code. INFORMATIVE DIGEST/POLICY OVERVIEW STATEMENT At its meeting on January 26, 2022, the SAB ad - opted on an emergency basis proposed regulatory amendments, as well as amendments to three asso - ciated forms and the grant agreement templates. The emergency regulations were approved by the Office of Administrative Law, filed with the Secretary of State and became effective March 21, 2022. Initially the Full–Day Kindergarten Facilities Grant Program was created through Assembly Bill (AB) 1808,

Chapter 32, Statutes of 2018, the Education Fi - nance: Education Omnibus Trailer Bill and included a one–time General Fund appropriation in the amount of $100 million for the sole purpose of providing full–day kindergarten classrooms. Since that time, however, several bills became law that appropriated and rescinded general fund dollars. Under current law (AB 130,

Chapter 44, Statutes of 2021) the Governor appropriated $490 million from the General Fund to the SAB and charged the SAB with the responsibility for apportioning one–time grants to school districts that lack the facilities to provide full–day California preschool, transitional kindergarten and kindergarten programs. Funds Impacted ● General Fund appropriation in the amount of $490 million for the 2021/2022 fiscal year. Attached to this Notice is the specific regulatory language of the proposed regulations, the three as - sociated forms and the grant agreement templates.

The Grant Agreement templates will not be includ - ed because the document is very large. The proposed regulations, the three associated forms and the Grant Agreement will be accessible and can be viewed on OPSC’s website at: https://www.dgs.ca.gov/OPSC/

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 817 Resources/Page–Content/Office–of–Public–School– Construction–Resources–List–Folder/Laws–and– Regulations, scroll down to “California Preschool, Transitional Kindergarten and Full–Day Kindergar - ten Facilities Grant Program, FDK Pending Regula - tory Changes.” Copies of the proposed regulations, the three associated forms and the grant agreement templates will be mailed to any person requesting this information by using OPSC’s contact information set forth below in this Notice. The proposed regulations implement the Program’s Regulations under the Cal - ifornia Code of Regulations, Title 2,

Chapter 3, Sub -

chapter 4, Group 1, State Allocation Board, Subgroup 5.8, Regulations relating to the California Preschool, Transitional Kindergarten and Full–Day Kindergarten Facilities Grant Program (Program). Background and Problem Being Resolved As mentioned above, AB 1808,

Chapter 32, Statutes of 2018 [Committee on Budget. Education Finance: Education Omnibus Trailer Bill] was originally signed by the Governor on June 27, 2018 and included a one– time General Fund appropriation in the amount of $100 million for the sole purpose of providing full–day kindergarten classrooms. On July 1, 2019, the Gover - nor signed Senate Bill (SB) 75,

Chapter 51, Statutes of 2019, into law [the Education Finance: Education Om- nibus Trailer Bill]. This bill appropriated an additional $300 million from the General Fund to the SAB for the 2019/20 fiscal year. School districts that wished to convert part–day kindergarten programs to full–day kindergarten programs, and for those districts lacking the facilities to provide full–day kindergarten instruc - tion could apply for these one–time grants to con - struct new school facilities or retrofit existing school facilities. On June 29, 2020, the Governor signed SB 98,

Chapter 24, Statutes of 2020, which rescinded the $300 million in additional program funding previ - ously appropriated in SB 75 but maintained Program provisions such as the local matching share for school districts that are converting from a part–day program to a full–day program and allowed school districts to retain project savings. AB 130,

Chapter 44, Statutes of 2021, provides $490 million from the General Fund for the 2021/22 fiscal year to the SAB to provide one– time grants. School districts that lack the facilities to provide full–day California preschool, full–day tran - sitional kindergarten, and/or full–day kindergarten can apply for these one–time grants to construct new school facilities and retrofit existing school facilities for preschool, transitional kindergarten, and kinder - garten pupils in full–day programs. The problem being resolved is not so much a prob - lem, but rather an opportunity.

The Program adds eligibility for school districts to construct new class - rooms or retrofit existing classrooms to house full– day transitional kindergarten programs and allows for school districts and county offices of education to construct new or retrofit existing classrooms to house full–day California state preschool programs. In addi- tion to statutory changes for program eligibility, fund- ing criteria, eligible expenditures and the use of sav - ings, the filing rounds have been established in regula- tion along with the available funding associated with each filing round.

The first filing round began April 1, 2022 and ended April 30, 2022 in which applicants submitted applications for the Program. OPSC and the California Department of Education (CDE) will work collaboratively, on a project–by–project basis, to de - termine if an application should be limited to a retrofit project or whether the applicant can choose to apply either for funding to retrofit existing facilities, or to build new facilities.

This will ensure a prudent use of general fund dollars, integrity of school projects, and allows for the funding to be distributed to more school district projects without unnecessarily constructing new classrooms. OPSC, on behalf of the SAB, conducted three stakeholder meeting to discuss the statutory chang - es to the Program as well as the proposed regulatory amendments. Most of the stakeholder feedback was incorporated into the Action Item the SAB approved on January 26, 2022. Feedback not incorporated was addressed during the discussion portions of the stake - holder meetings.

OPSC performed a search on whether the proposed regulatory amendments were consistent and compat - ible with existing State laws and regulations. After performing the search, OPSC, on behalf of the SAB, determined that AB 130,

Chapter 44, Statutes of 2021, [the Committee on Budget. Education Finance: Edu - cation Omnibus Trailer Bill], was created to clarify, expand and make modifications to the existing Pro - gram. There are no other programs or regulations in existence that provide one–time grants to school districts to construct new school facilities or retrofit existing school facilities for the purpose of housing full–day California preschool, full–day transitional kindergarten and full–day kindergarten programs.

Therefore, the proposed regulatory amendments are determined to be consistent and compatible with ex - isting State laws and regulations. Proceeding with the implementation of the proposed regulatory amend - ments, forms and the grant agreement templates, will enhance applicants’ awareness when partnering with the State while defining the responsibilities of funding applicant projects. This will ensure program oversight and expenditure accountability. Anticipated Benefits of the Proposed Regulations There are benefits associated with the proposed reg- ulations.

School districts benefit in order to provide kindergarten classrooms if they lack the facilities and have the need to operate full–day transitional kinder -

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 818 garten and full–day kindergarten programs. School districts and county offices of education will also benefit in order to build new or expand existing class- rooms to house full–day California state preschool programs.

In addition, the State of California will ben- efit from the proposed regulations as the regulations may generate the need for school construction–related industries to expand their businesses, or in some cas - es may create new businesses, based on the demand on these industries when general fund dollars are re - leased to school districts and county offices of educa - tion to complete their projects. Another benefit for the State of California is the inventory of school facilities will increase due to the expansion of the Program to include California preschool and transitional kinder - garten classrooms.

The proposed regulations are therefore determined to be consistent and compatible with existing State laws and regulations. As stated above, OPSC per - formed a search on whether the proposed regulations were consistent and compatible with existing State laws and regulations. After performing the search, OPSC, on behalf of the SAB, has determined that AB 130,

Chapter 44, Statutes of 2021 [the Committee on Budget. Education Finance: Education Omnibus Trail- er Bill], was created to clarify, expand and make mod- ifications to the existing Program. There are no oth - er programs or regulations in existence that provide one–time grants to school districts to construct new school facilities or retrofit existing school facilities for the purpose of housing full–day California preschool, full–day transitional kindergarten and full–day kin - dergarten programs.

Therefore, the proposed regula - tions are determined to be consistent and compatible with existing State laws and regulations. Proceeding with the implementation of the proposed regulatory amendments, forms and the grant agreement tem - plates, will enhance applicants’ awareness when part - nering with the State while defining the responsibil - ities of funding applicant projects. This will ensure program oversight and expenditure accountability.

The proposed regulations, forms and the grant agreement templates will not have a negative impact to various business, manufacturing, and construction– related industries such as architecture, engineering, trades and municipalities. In addition, the proposed regulations will not impact the creation of jobs, the creation of new businesses, and the expansion of busi- nesses in California. It is not anticipated that the pro - posed regulations will result in the elimination of ex - isting businesses or jobs within California.

Summary of the Proposed Regulatory Amendments A

summary of the proposed regulatory amend - ments, including the forms and grant agreement tem - plates, are as follows: Existing Regulation

Section 1860 states the purpose of the regulations, which is to implement the Full–Day Kindergarten Facilities Grant Program. The proposed amendments expand the name of the Program to the California Preschool, Transitional Kindergarten and Full–day Kindergarten Facilities Grant Program and expands the Program to include the construction of new preschool classrooms, the modernization of ex - isting preschool classrooms, or the modernization of existing classrooms that would be converted to pro - vide California state preschool programs operated by school districts on public school sites. Existing Regulation

Section 1860.2 represents a set of defined words and terms used exclusively for these regulations. These

definitions provide clarity to OPSC and school districts on program concepts and requirements. The proposed amendments add newly defined words and terms for purposes of the expanded Program and are in alignment with the statute. There are also words and terms being deleted as they are no longer applicable under the expanded Program. The Program forms are being revised which changes the revision dates. Existing Regulation

Section 1860.3 sets forth gen - eral requirements that all school districts seeking pro - gram funding must meet. Specifically, participating school districts are required to complete and file with OPSC the Form SAB 70–01, Application for Funding (which is incorporated by reference), and all required documents as identified in the Specific Instructions

section of the Form SAB 70–01. The proposed amend- ments set forth the statute by which these amendments are being made and sets forth the General Fund ap - propriation for the expanded Program. Additionally, in order for the SAB to provide funding, construction contracts must be signed on or after July 1, 2018 for full–day kindergarten programs while construction contracts must be signed on or after July 1, 2021 for preschool or transitional kindergarten programs. The Authority and Reference citations are being corrected to align with the statute. Existing Regulation

Section 1860.4 provides gener- al funding guidelines for the program that apply to all applicants that participate in the program. This Sec - tion clarifies that any funds returned prior to June 30, 2021 will be returned to the program account, while funds returned after June 30, 2021 will be returned to the General Fund. The proposed amendments specify where the funding is being made available (2021–22 Budget Act) and sets forth the date by which the fund- ing must be encumbered (June 30, 2024).

It is further clarified that any funds returned prior to this date will be returned to the program account, while funds re - turned after this date will be returned to the General Fund. In addition, Program funds shall not be used to purchase or install portable classrooms.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 819 Existing Regulation

Section 1860.5 sets forth eligi - bility criteria that school districts must meet in order to apply for full–day kindergarten program funding. School districts are required to provide a school board resolution providing approval to provide full–day kin- dergarten instruction at the project school site at com- pletion of the project, pursuant to Education Code Sec- tion 8973. Additionally, school districts are required to provide that they currently lack full–day kindergarten facilities. This

Section also requires school districts to provide a description of the proposed project that con- tains certain criteria. The proposed amendments spec- ify that an applicant’s need for funding be based on the school site’s enrollment patterns and introduces the use of the California Longitudinal Pupil Achievement Data System, which is used to determine the current enrollment at a school site and then reported to the CDE. OPSC and CDE will work collaboratively prior to the Approved Application’s need for funding based on the school site’s enrollment pattern.

Additional amendments add the words “preschool, transitional kindergarten, and kindergarten” to designate all three types of classrooms. Language is deleted because it refers to July 1, 2019 and that has already happened. The Reference citation is corrected to align with the statute. Proposed adoption of Regulation

Section 1860.5.1 sets forth eligibility criteria that school districts must meet in order to apply for transitional kindergarten program funding. School districts are required to pro - vide a school board resolution providing approval to provide full–day transitional kindergarten instruction at the project school site on or after July 9, 2021.

Ad - ditionally, school districts will be required to prove that they currently lack full–day transitional kinder - garten facilities if the calculated transitional kinder - garten need exceeds the existing transitional kinder - garten classroom capacity prior to the construction of the project. The current state loading standard of 25 kindergarten pupils per classroom shall be used. Stat - ute provides the SAB the ability to provide funding for classrooms for projected transitional kindergarten students. This

Section also requires school districts to provide a description of the proposed project that contains certain criteria. OPSC and CDE will work collaboratively prior to the Approved Application’s need for funding based on the school site’s enrollment pattern in order to determine what type of funding the school district will qualify. This is to ensure that funds are appropriately spent. Proposed adoption of Regulation

Section 1860.5.2 sets forth eligibility criteria that school districts and county offices of education must meet in order to apply for California preschool program funding. Applicants will be required to provide a school board resolution providing approval to provide full–day preschool in - struction at the project school site on or after July 9, 2021. Applicants must provide the most recent child - care needs assessment conducted by its regional lo - cal planning council for preschool age children and a current or future contract with the CDE to operate a preschool program.

Additionally, school districts will be required to prove that they currently lack the facil - ities to provide full–day preschool instruction if the calculated preschool need exceeds the existing pre - school classroom capacity prior to the construction of the project. The current state loading standard of 25 preschool pupils per classroom shall be used. Statute provides the SAB the ability to provide funding for classrooms for projected preschool students. This Sec- tion also requires applicants to provide a description of the proposed project that contains certain criteria.

OPSC and CDE will work collaboratively prior to the Approved Application’s need for funding in order to determine what type of funding the applicant will qualify based on the school site’s enrollment pattern. This is to ensure that funds are appropriately spent. Existing Regulation

Section 1860.6 sets forth the application submittal process, which established two 30–calendar day funding rounds for school districts to request apportionments of available program funds. The proposed amendments set forth two additional new filing rounds; the first begins on or after April 1, 2022 and ends on or before April 30, 2022, with applications being retained until December 31, 2022; the second begins April 1, 2023 and ends on or before April 30, 2023, with applications being retained until June 30, 2024.

These additional filing rounds will al - low the SAB to promptly encumber the funds by the statute driven deadline of June 30, 2024. Applications that do not receive an Apportionment by June 30, 2024 will not be processed. The Program will operate af - ter June 30, 2024; however, the funds not encumbered prior to this date will revert back to the General Fund. The proposed amendments also allow for the SAB to establish additional filing rounds as necessary. The Authority and Reference citations are corrected to align with the statute. Existing Regulation

Section 1860.7 specifies the type of applications that applicants may submit. Ap - plicants may apply for funding with or without an advance release of funds. This

Section specifies that in order to receive a grant with an advance release of funds, applicants must have received Division of the State Architect (DSA) and CDE final plan approval along with several additional criteria if the applicant is applying for a new construction grant that includes site acquisition. The proposed amendments speci - fy that construction contracts for the construction or retrofit of classrooms in a full–day kindergarten proj - ect must be signed on or after July 1, 2018, and for preschool or transitional kindergarten projects, con -

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 820 struction contracts for the construction or retrofit of classrooms must be signed on or after July 1, 2021. In addition, applicants cannot request funding for more than four classrooms per school site for preschool and transitional kindergarten programs. For those appli - cants that receive an advance fund release, an updated Form SAB 70–01 must be submitted once CDE and the DSA plan approvals have been obtained. The Au - thority and Reference citations have been corrected to align with the statute. Existing Regulation

Section 1860.8 specifies that school districts must hold title to the real property where the proposed facilities are or will be located. Education Code

Section 17375 does not provide the SAB the explicit ability to provide funding to school districts if their proposed projects are located on land other than district–owned land, such as leased land. The proposed amendments correct the Authority and Reference citations to align with the statute. Existing Regulation

Section 1860.9 sets forth the determination for a new construction apportionment. The per–pupil grant is determined by the School Fa - cility Program (SFP) Regulations as stipulated in Education Code

Section 17375(d). These grants are provided by the SFP Regulations as stipulated in Ed - ucation Code

Section 17074.50. If a school district would like assistance with costs associated with site development, such as service site, off–site, utilities, and/or general site, they may request it on the Form SAB 70–01, Application for Funding. If approved for a site development grant, the school district will be awarded 35 percent of the base grant. The site devel - opment increase of 35 percent was determined by an historical average of site development grants allocated to projects in the SFP. If a school district would like assistance with costs associated with multilevel con - struction, they may request it on the Form SAB 70–01, Application for Funding. This

Section also sets forth the process by which new construction grant funding will be determined. Education Code

Section 17375(

d) requires the SAB to allocate funds using the same maximum grant eligibility amounts that are used in the SFP Regulations, as set forth in Education Code Sections 17072.10 and 17072.11. Just like in the SFP, the grant amounts, excluding grants for site develop - ment and for multilevel construction, will be adjusted annually based on the change in the Class B Construc- tion Cost Index, which is approved every January by the SAB. The proposed amendments delete the word “elementary” in subsections (a) (b), and (

c) because these grant amounts apply not only apply to elemen - tary pupils, but with the expansion of the Program, to preschool and transitional kindergarten pupils. Addi - tionally, the loading standard of 25 pupils per class - room is reiterated. The Reference citation has been corrected to align with the statute. Existing Regulation

Section 1860.10 sets forth the process by which the amount for an additional grant for site acquisition will be determined. Education Code

Section 17375(

f) authorizes the SAB to allocate funding necessary to acquire property adjacent to the existing school site. The site acquisition funding de - termination for Program projects is similar to what is used in the SFP Regulations. This

Section specifies that the SAB will provide additional funding for site acquisition with the amount being the lesser of one half of the actual cost of the site or one half of the appraised value of the site acquired adjacent to an ex - isting school site. Additionally, this

Section specifies that the amount of acreage eligible for site acquisition funding for the Program will be reduced, on a prorated basis, by the percentage of the excess acreage of the site that exceeds the eligible acreage allowed for a kin- dergarten classroom project (0.3 acres) pursuant to Ti- tle 5, California Code of Regulations,

Section 14010(a). The proposed amendments correct the Authority and Reference citations to align with the statute. Existing Regulation

Section 1860.10.1 explains the requirements necessary for school districts to meet in order to obtain additional new construction funding for site acquisition costs. Specifically, school districts will have to certify on the Form SAB 70–01, Applica- tion for Funding, that the appraisal of the property to be acquired will be appraised in as is condition.

This requirement must be met, but there are exceptions such as the site being appraised as if it were a clean site, safe of all toxic contaminants in compliance with appropriate guidelines and laws and if the site valua - tion included only proposed site improvements associ- ated with grading the site to certain conditions spec - ified in this section. School districts must also verify that consideration was made for net useable acreage and severance damages, appraisal services have been contracted, and that the appraisal complies with ap - propriate practices.

These site acquisition guidelines are similar to those in the SFP. The proposed amend - ments correct the Authority and Reference citations to align with the statute. Existing Regulation

Section 1860.10.2 sets forth the process of allocating a new construction addi - tional grant for hazardous waste removal costs on an acquired site. Statute authorizes the SAB to allocate funding necessary to remove hazardous substanc - es at a new school site. This

Section determines that the grant amount will not be greater than 50 percent of one and one half times the value of the appraisal. However, exceptions to this grant calculation will be made for relocation costs and site other costs. Site other costs are to fund appraisals, escrows, surveys, site testing for acquisition, CDE review/approvals, and the preparation of the Phase One Environmental Site Assessment (POESA) and Preliminary Endangerment

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 821 Assessment (PEA). The process for determining fund- ing for hazardous waste removal costs on an acquired site is similar to the process used in the SFP Regula - tions. The main difference between the two is that the funding for the costs described in this

section will be reduced on a prorated basis, as with the site acquisition grant. The proposed amendments correct the Author - ity and Reference citations to align with the statute. Existing Regulation

Section 1860.10.3 sets forth the process of allocating a new construction addition - al grant for hazardous waste removal costs required on an existing school site by the Department of Tox - ic Substances Control (DTSC). Statute authorizes the SAB to allocate funding necessary to remove hazard - ous substances at an existing school site. This

Section provides that school districts may only receive this additional funding if they are not requesting site ac - quisition funding and if their project will be adding facilities on an existing and functioning school site. This

Section also specifies that funding for these costs will be equal to one half of the costs for preparation of the POESA, the PEA, and the Response Action (RA) as well as the costs to implement the RA. The process for determining funding for hazardous waste removal costs required on an existing school site mirrors the same process used in the SFP Regulations. The pro - posed amendments correct the Authority and Refer - ence citations to align with the statute. Existing Regulation

Section 1860.11 specifies the matching share requirement for school districts apply- ing for a new construction grant. With the exception of school districts that receive financial hardship fund- ing, school districts that apply for a new construction grant must provide 50 percent and the state will pro - vide 50 percent, pursuant to Education Code 17375(b) (3). The proposed amendments set forth the matching share requirements for existing full–day kindergarten programs, new and existing transitional kindergar - ten programs, new and existing preschool programs, and programs converting from part–day to full–day programs. Existing Regulation

Section 1860.12 sets forth the determination for a retrofit apportionment. The per– pupil grant is determined by the SFP Regulations as stipulated in Education Code

Section 17375(d). These grants are also provided by the SFP Regulations as stipulated in Education Code

Section 17074.50. If a school district would like assistance with costs as - sociated with site development, such as service site, off–site, utilities, and/or general site, they may request it on the Form SAB 70–01, Application for Funding. If approved for a site development grant, the school district will be awarded 35 percent of the base grant calculated in

Section 1860.12(a). The site development increase of 35 percent was determined by an histor - ical average of site development grants allocated to projects in the SFP. If a school district is retrofitting a 50–year old or older building, they may request an in- crease of 15 percent to the base grant to help upgrade the existing 50–year old utilities. The increase of 15 percent was determined by an historical average of 50–year old utilities grants provided for modernizing 50–year old or older buildings in the SFP.

The grant amounts shall be adjusted annually based on the Class B Construction Cost Index, which is approved every January by the SAB, which is identical to the SFP. The proposed amendments delete the word “elementary” in subsections (

a) and (

b) because these grant amounts apply not only apply to elementary pupils, but with the expansion of the Program, to preschool and tran - sitional kindergarten pupils. Additionally, the loading standard of 25 pupils per classroom is reiterated. The Authority and Reference citations have been corrected to align with the statute. Existing Regulation

Section 1860.13 specifies the matching share requirement for school districts apply- ing for a retrofit grant. With the exception of school districts that receive financial hardship funding, school districts that apply for a retrofit grant must provide 40 percent and the state will provide 60 percent, pursuant to Education Code 17375(b)(3). The proposed amend- ments set forth the matching share requirements for existing full–day kindergarten programs, new and ex - isting transitional kindergarten programs, new and ex- isting preschool programs and programs that convert from a part–day to full–day program. Existing Regulation

Section 1860.15 specifies that if the number of Approved Applications received ex - ceeds the funding available for the funding round, then the funding priority will be based on a school district’s preference points. Education Code

Section 17375(b)(2) states that priority for Program grants will be given to school districts that qualify for financial hardship and/ or that have a high population of pupils who are eligi- ble for Free and Reduced Price School Meals (FRPM). This

Section creates a system of preference points in order to determine project funding order. A maximum of 80 preference points may be earned in each funding round for each school district. A school district’s pref- erence points will be calculated into two categories. Based on a sliding scale currently used in the SFP for the Charter School Facilities Program, a sliding scale was created to determine the percentage of students a school district has eligible for FRPM.

Points begin at four points for 60–65 percent of students eligible for FRMP, while 40 points will be earned if 100 per - cent of students within the school district qualify for FRPM. If a school district has been qualified for finan- cial hardship by OPSC and is unable to contribute a portion or all of its matching share, the school district earns 40 points. Once OPSC has determined the num- ber of school districts Approved Applications, school

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 822 districts will be placed in a preference order based on the preference points earned. School districts will be ordered from highest to lowest points (80 points to zero points). If sufficient funds are available in that funding round, then all approved applications will be funded. If the amount of funding requested is more than the amount allocated for that round, then OPSC will begin with the highest preference point school district and fund their first priority project as stated on the Form SAB 70–01, Application for Funding.

If two or more school districts have the same amount of pref- erence points, then the project with the higher Low Income percentage (rounded to one decimal place) will be funded first. If the school districts are still tied based on the Low Income percentage, the projects will be placed into a lottery system to determine the order. The first school district pulled will have their first pri- ority project funded, and OPSC will continue to the next school district with the same number of prefer - ence points.

If OPSC has funded all school districts’ first priority projects and funding still remains in that funding round, then OPSC will go back to the highest preference point school district and fund all of their remaining projects, up to the total funding available in the filing round. As stated above, if two or more school districts have the same amount of preference points, they are placed into a lottery to determine who will go first in the funding order.

Using the same funding or - der determined in the lottery to fund a school district’s first priority project with the same number of prefer - ence points, each school district’s second and sub - sequent priority projects (as identified by the school district on their Form SAB 70–01, Application for Funding), with the same number of preference points will be funded until funds are exhausted. If funds are still available, funding will continue to the next high - est school district(

s) based on total preference points. If the Board does not have sufficient funding to ful - ly fund a school district’s project, that school district has the option to accept the partial funding as full and complete. If the school district chooses to decline the partial funding, then OPSC may offer the partial fund- ing to the next approved application in the preference order. The proposed amendments correct the Author - ity and Reference citations to align with the statute. Existing Regulation

Section 1860.16 specifies the process in which funds will be released to school districts with SAB–approved applications. School districts that have none or only a portion of the sup - porting documents required for a full fund release, may indicate that they will need an advance for design or site acquisition. This advance of funds will help school districts move forward with their projects. If a school district is doing a new construction project with an advance release of funding, then they will re - ceive 40 percent of the new construction base grant.

If a school district is applying for a retrofit project, and they have none or only a portion of appropriate supporting documentation then they may apply for an advance release of funding of 25 percent of the base grant. These percentages are identical to those in the SFP Regulations for standard new construction and modernization projects. When a school district is re - questing two percent for other site costs for site acqui- sition assistance, a grant agreement must be executed and received by OPSC.

For funds other than two per - cent site other to be released for either site acquisition, design or site other, a grant agreement must be execut- ed and received by OPSC.

OPSC must ensure that specific requirements have been met and those requirements are: the school dis - trict has entered into escrow for the site and the es - crow must be valid, there has been a final appraisal of the site, the school district has either received con - tingent or final site approval from CDE, a valid Form SAB 70–02, Fund Release Authorization, has been received; for a new construction or retrofit project, all unreleased funds will be released once an execut - ed full grant agreement has been received by OPSC, along with verification of these documents: the school district’s applicable matching share has been deposit - ed or expended by the school district for the project, with the exception of financial hardship projects which are exempt from this requirement (requirements for fi- nancial hardship may be found in 1860.14); the school district has entered into a binding contract(

s) for the completion of the project; the plans and specifications for the project have been approved by DSA. If there has been site acquisition then a final appraisal of the site, the site received written final approval from CDE, and the school district has entered into escrow for the site. Finally, for all remaining funds to be released, all requirements above must be met, as well as a valid Form SAB 70–02, Fund Release Authorization, and grant agreement has been received by OPSC.

For school districts that request either a new con - struction or retrofit grant that did not request an ad - vance release of funding, a valid Form SAB 70–02, Fund Release Authorization, must be submitted with all the required approvals within 180 days of appor - tionment. If a valid Form SAB 70–02, Fund Release Authorization, request is not submitted within 180 days, the apportionment will be rescinded.

For school districts that receive an advance release of funding for either new construction or retrofit projects, a valid Form SAB 70–02, Fund Release Authorization, must be submitted to OPSC with 12 months of apportion - ment. If a valid Form SAB 70–02, Fund Release Au- thorization, is not received within 12 months, then the apportionment shall be rescinded and returned to the Program for reallocation. Subject to available funds, site acquisition grants shall be adjusted based on ac -

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 823 tual costs prior to the release of funds. The proposed amendment corrects the Authority citation to align with the statute. Existing Regulation

Section 1860.18 sets forth re - porting requirements that school districts receiving program funding must meet. A school district that has received funds in accordance with the program must submit an expenditure report at the completion of the project. School districts must submit a valid Form SAB 70–03, Expenditure Report.

A project is con - sidered complete when either of the following occurs: 1) When the notice of completion has been filed; all outstanding invoices, claims, and change orders have been satisfied and the facility is currently in use by the school district; or 2) One year from the final fund release. A final expenditure report shall be due one year after the first expenditure report. OPSC will use the information provided on this form to ensure that expenditures made by the school districts for their Program projects comply with statute and other appli- cable State requirements pertaining to construction.

The proposed amendments correct the Authority and Reference citations to align with the statute. Existing Regulation

Section 1860.19 specifies how remaining funding may be used after project comple - tion. Project savings and unexpended funds are differ- ent types of remaining funds from Program projects. School districts that are not financial hardship are able to expend their project savings, including interest, that are not needed for the Program project on other high priority capital facility needs of the school district. Any savings not expended within one year of proj - ect completion must be returned to the State.

School districts that are financial hardship that have any un - expended funds from the Program project, that were not spent on eligible expenditures, and the project was funded from the funding in

Section 1860.3(a), must be returned to the State upon completion of the proj - ect. Any interest earned on State funds for financial hardship grant funding that is not expended on eligi - ble project expenditures must also be returned to the State to help reduce the financial hardship contribu - tion for that project. A school district is only required to return unexpended funds up to the amount of the financial hardship grant provided by the SAB. All projects receiving funding under

Section 1860.3(

b) are not required to return savings, including interest earned on State funds, if expended or encumbered for professional development to build capacity for the im- plemenation of full–day kindergarten programs. The proposed amendments specify that school districts may also expend or encumber the savings, as well as interest earned on State funds, on professional devel - opment and instruction materials to build capacity for implementing a California state preschool program or a transitional kindergarten program for the classrooms in the project.

In addition, the proposed amendments add and correct the Authority and Reference citations by adding new citations and correcting existing cita - tions to align with the statute. Existing Regulation

Section 1860.20 specifies the audit process and requirements that school districts who receive Program funding will be subject to, as required in Education Code

Section 17375(h). Projects will be subjected to an audit conducted pursuant to Education Code

Section 41024 to ensure the expendi- tures incurred by the school district were made in ac - cordance with Education Code

Section 17375. School districts must retain all documents and records refer - ring to the Program project and should be able to pro - vide them if an auditor requests the documents. If an audit determines that funding was spent on ineligible expenditures, CDE shall ensure that the school district corrects the audit exception by implementing an equal penalty payment of funds. The proposed amendments add an additional document(

s) for school districts to be aware of should the local auditor request the docu - mentation. Also, the Authority and Reference citations are corrected to align with the statute. Existing Regulation

Section 1860.21 sets forth the requirement for school districts receiving Program funds to certify that a restricted account within the school districts’ general fund has been established for the purpose of providing on–going and major repair of its facilities. The proposed amendments correct the Authorize and Reference citations to align with the statute. Existing Form SAB 70–01, Application for Fund - ing (which is incorporated by reference) is used by school districts to apply for program funding.

The form also serves as a certification from the district regarding compliance with requirements of the law and Program Regulations. School districts must sub - mit this form during the funding rounds described in Regulation

Section 1860.6. OPSC will use this form in order to collect the information necessary to cal - culate the amount of grants applicable to the project and to determine project funding order.

The proposed amendments: 1) change the name of the program to the California Preschool, Transitional Kindergarten and Full–Day Kindergarten Facilities Grant Program (Pro- gram); 2) require school site enrollment data which is consistent with the Program Regulations (Regulation Sections 1860.5, 1860.5.1 and 1860.5.2); and 3) make the remainder of the changes on this Form to be con - sistent with the changes in the Program Regulations and align with the statute.

Existing Form SAB 70–02, Fund Release Authori - zation (which is incorporated by reference) is used by school districts to request the release of funds when projects have received an apportionment by the SAB. The applicant will certify on this form that it has al -

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 824 ready submitted the signed grant agreement, or the signed grant agreement is accompanying the Form SAB 70–02. After a Program apportionment has been made by the SAB, OPSC will release the apportioned funds once the school district completes and submits this form to OPSC. School districts who receive grants without an advance release of funds must submit this form with all required approvals within 180 days of apportionment.

School districts who receive grants with an advance release of funds must then submit this form with all required approvals within 12 months of apportionment. The proposed amendments change the name of the program to the California Preschool, Transitional Kindergarten and Full–Day Kindergarten Facilities Grant Program (Program) and delete a con - struction delivery method that no longer pertains to this Program. Existing Form SAB 70–03, Expenditure Report (which is incorporated by reference) is used by school districts to report their project savings and unexpend - ed funds.

Expenditure reports must be submitted within one year of final fund release or at the com - pletion of the Program project. A final savings report must be submitted within one year of the completion of the project. Financial hardship projects must sub - mit their unexpended funds at the completion of their project. OPSC will use the information provided on this form to ensure that expenditures made by the school districts for Program projects comply with stat- ute and other applicable State requirements pertaining to construction.

The proposed amendments 1) change the name of the program to the California Preschool, Transitional Kindergarten and Full–Day Kindergar - ten Facilites Grant Program (Program); 2) require approved school board resolutions for California pre - school and transitional kindergarten programs which is consistent with Program Regulations (Regulation Sections 1860.5, 1860.5.1 and 1860.5.2); 3) clarify the Expenditure Worksheets by deleting this term and re - places it with “Detailed Listing of Project Expendi - tures (DLOPE), which is a term used in the SFP and is familiar with the school district community; and 4) allows for the submittal of forms electronically due to the current business environment (the COVID–19 pandemic).

The existing Grant Agreement templates (which is incorporated by reference) includes sections relevant to the Program for new construction and retrofit fund- ing. It is the intent that the grant agreement will be en- tered into for every future funding application that is processed; therefore, each grant agreement will con - tain the relevant project information.

The grant agree- ments serve as binding documents and key resources that define the responsibilities of the state and school districts from the determination of the amount eligible state funding to the reporting of all project funds, in - cluding any savings achieved. This will ensure great - er transparency and accountability for the program grants being awarded under the Program.

The Grant Agreement templates also incorporate the submittal of annual expenditure reports 12 months from the date of the full fund release, and the ability for financial hardship districts to retain savings and the retention of savings, including the interest on State funds, may be expended on professional development or instruction- al materials to build capacity for the implementation of a California state preschool program, transitional kindergarten program, or a full–day kindergarten pro- gram.

The proposed amendments also incorporate the regulatory references throughout the document which aligns with statute. After conducting a review, the SAB has concluded that these are the only regulations on this subject area (construction of and/or retrofit of existing school facil- ities for the sole purpose of providing preschool, tran- sitional kindergarten and kindergarten classrooms), and therefore, the proposed regulations are neither inconsistent nor incompatible with existing State laws and regulations.

The proposed regulations are within the SAB’s authority to enact regulations for the Pro - gram under Education Code

Section 17375(

h) and Government Code

Section 15503. Statutory Authority and Implementation Education Code

Section 17375(h). The State Al - location Board may adopt regulations to implement this section. Any regulations adopted pursuant to this

section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with

Section 11340) of

Part 1 of Division 3 of the Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Government Code

Section 15503. Whenever the board is required to make allocations or apportion - ments under this part, it shall prescribe rules and reg - ulations for the administration of, and not inconsistent with, the act making the appropriation of funds to be allocated or apportioned. The board shall require the procedure, forms, and the submission of any infor - mation it may deem necessary or appropriate. Unless otherwise provided in the appropriation act, the board may require that applications for allocations or appor- tionments be submitted to it for approval. Determination of Inconsistency or Incompatibility with Existing State Regulations As mentioned above, AB 130,

Chapter 44, Statutes of 2021, provides $490 million from the General Fund for the 2021/22 fiscal year to the SAB to provide one– time grants. School districts that lack the facilities to provide full–day California preschool, full–day tran -

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 825 sitional kindergarten, and/or full–day kindergarten can apply for these one–time grants to construct new school facilities and retrofit existing school facilities for preschool, transitional kindergarten, and kinder - garten pupils in full–day programs.

The Program adds eligibility for school districts to construct new classrooms or retrofit existing class - rooms to house full–day transitional kindergarten programs and allows for school districts and county offices of education to construct new or retrofit exist - ing classrooms to house full–day California state pre - school programs. In addition to statutory changes for program eligibility, funding criteria, eligible expendi - tures and the use of savings, the filing rounds have been established in regulation along with the avail - able funding associated with each filing round.

OPSC and CDE will work collaboratively, on a project–by– project basis, to determine if an application should be limited to a retrofit project or whether the applicant can choose to apply either for funding to retrofit existing facilities, or to build new facilities. This will ensure a prudent use of general fund dollars, integrity of school projects, and allows for the funding to be distributed to more school district projects without unnecessarily constructing new classrooms.

OPSC performed a search on whether the proposed regulatory amendments were consistent and compat - ible with existing State laws and regulations. After performing the search, OPSC, on behalf of the SAB, determined that AB 130,

Chapter 44, Statutes of 2021, [the Committee on Budget. Education Finance: Edu - cation Omnibus Trailer Bill], was created to clarify, expand and make modifications to the existing Pro - gram. There are no other programs or regulations in existence that provide one–time grants to school districts to construct new school facilities or retrofit existing school facilities for the purpose of housing full–day California preschool, full–day transitional kindergarten and full–day kindergarten programs.

Therefore, the proposed regulatory amendments are determined to be consistent and compatible with ex - isting State laws and regulations. Proceeding with the implementation of the proposed regulatory amend - ments, forms and the grant agreement templates, will enhance applicants’ awareness when partnering with the State while defining the responsibilities of funding applicant projects. This will ensure program oversight and expenditure accountability. Forms Incorporated by Reference ● Form SAB 70–01, Application for Funding (Rev. 01/22), which is incorporated by reference and referenced in Regulation

Section 1860.2 ● Form SAB 70–02, Fund Release Authorization (Rev. 01/22), which is incorporated by reference and referenced in Regulation

Section 1860.2 ● Form SAB 70–03, Expenditure Report (Rev. 01/22), which is incorporated by reference and referenced in Regulation

Section 1860.2 ● Grant Agreement (Rev. 01/22), which is incorpo- rated by reference and referenced in Regulation

Section 1860.2 IMPACT ON LOCAL AGENCIES OR SCHOOL DISTRICTS The Executive Officer of the SAB has determined that the proposed regulations, along with three associ- ated forms and the Grant Agreement templates, do not impose a mandate or a mandate requiring reimburse - ment by the State pursuant to

Part 7 (commencing with

Section 17500) of Division 4 of the Government Code. It will not require local agencies or school dis - tricts to incur additional costs in order to comply with the proposed regulations.

DISCLOSURES REGARDING THE PROPOSED REGULATORY ACTION The Executive Officer of the SAB has made the fol- lowing initial determinations relative to the required statutory categories: ● The SAB has made an initial determination that there will be no significant, statewide adverse economic impact directly affecting business, in - cluding the ability of California businesses to compete with businesses in other states. ● The SAB is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action. ● There will be no non–discretionary costs or sav - ings to local agencies. ● The proposed regulations create no costs to any local agency or school district requiring reim - bursement pursuant to

Section 17500 et seq., or beyond those required by law, except for the re - quired district contribution toward each project as stipulated in statute. ● There will be no costs or savings in federal fund- ing to the State. ● The proposed regulations create no costs or sav - ings to any State agency beyond those required by law. ● The SAB has made an initial determination that there will be no impact on housing costs.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 826 RESULTS OF THE ECONOMIC I M PACT A NA LYSIS Impact to Businesses and Jobs in California The proposed regulations expand the Program to in- clude California preschool and transitional kindergar - ten classrooms in addition to full–day kindergarten classrooms. School districts benefit in order to provide kindergarten classrooms if they lack the facilities and have the need to operate full–day transitional kinder - garten and full–day kindergarten programs.

School districts and county offices of education benefit in order to build new or expand existing classrooms to house full–day California state preschool programs. Additionally, the proposed regulations may generate the need for school construction–related industries to expand their businesses, or in some cases may create new businesses, based on the demand on these indus - tries when general fund dollars are released to school districts and county offices of education to complete their projects.

The proposed regulations, forms and the grant agreement templates will not have a negative impact to various business, manufacturing, and construction– related industries such as architecture, engineering, trades and municipalities. In addition, the proposed regulations will not negatively impact the creation of jobs, the creation of new businesses, and the expan - sion of businesses in California. It is not anticipated that the proposed regulations will result in the elimi - nation of existing businesses or jobs within California.

Benefits to Public Health and Welfare, Worker’s Safety, and the State’s Environment ● The proposed regulations promote fairness and/ or social equity by providing general fund dollars to those school districts/county offices of educa - tion that may be able to construct new facilities or retrofit existing facilities in an effort to provide preschool, transitional kindergarten and/or kin - dergarten facilities. ● The State of California will benefit because its inventory of school facilities will increase due to the expansion of the Program to include California preschool and transitional kindergar - ten classrooms. ● There are benefits to health, safety, and welfare of California residents (school children and school faculty) because California preschool, transition - al kindergarten and kindergarten facilities would be built stronger and safer.

There are continued benefits to the health and welfare of California residents and worker safety. School districts uti - lize construction and trades employees to work on school construction projects and although the proposed regulations would not directly impact worker’s safety, existing law provides for the availability of a skilled labor force.

Further, pub - lic health and safety would be enhanced because a properly paid and trained workforce will build school construction projects that are higher qual - ity, structurally code–compliant and safer for use by pupils, staff, and other occupants on the site. ● There is no impact to the State’s environment from the proposed regulations. The SAB finds the proposed regulations fully con - sistent with the stated purposes and benefits.

EFFECT ON SMALL BUSINESSES It has been determined that the proposed regulations will not have a negative impact on small businesses in the ways identified in subsections (a)(1)–(4) of

Section 4, Title 1, CCR. The proposed regulations expand the Program to include California preschool and transi - tional kindergarten classrooms in addition to full–day kindergarten classrooms. SUBMISSION OF COMMENTS, DOCUMENTS AND ADDITIONAL INFORMATION Any interested person may present statements, ar - guments or contentions, in writing, submitted via U.S. mail, email or fax, relevant to the proposed regulato - ry action. Written comments submitted via U.S. mail, email or fax must be received at OPSC no later than September 6, 2022.

The express terms of the proposed regulations as well as the Initial Statement of Reasons are available to the public.

Written comments, submitted via U.S. mail, email or fax, regarding the proposed regulatory action, re - quests for a copy of the proposed regulatory action or the Initial Statement of Reasons, and questions con - cerning the substance of the proposed regulatory ac - tion should be addressed to: Lisa Jones, Regulations Coordinator Mailing Address: Office of Public School Construction 707 Third Street, 4th Floor West Sacramento, CA 95605 E–mail Address: Lisa.Jones@dgs.ca.gov Fax Number: (916) 375–6721 AGENCY CONTACT PERSONS General or substantive questions regarding this No - tice of Proposed Regulatory Action may be directed to Lisa Jones at (279) 946–8459.

If Ms. Jones is unavail- able, these questions may be directed to the backup contact person, Mr. Michael Watanabe, Chief of Ad - ministrative Services, at (279) 946–8463.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 827 ADOPTION OF REGULATIONS Please note that, following the public comment pe - riod, the SAB may adopt the regulations substantially as proposed in this notice or with modifications, which are sufficiently related to the originally proposed text and notice of proposed regulatory activity. If modifi - cations are made, the modified text with the changes clearly indicated will be made available to the public for at least 15 days prior to the date on which the SAB adopts the regulations. The modified regulation(

s) will be made available and provided to: all persons who testified at and who submitted written comments at the public hearing, all persons who submitted written comments during the public comment period, and all persons who requested notification from the agency of the availability of such changes. Requests for copies of any modified regula - tions should be addressed to the agency’s regulation coordinator identified above. The SAB will accept written comments on the modified regulations during the 15–day period.

SUBSTANTIAL CHANGES WILL REQUIRE A NEW NOTICE If, after receiving comments, the SAB intends to adopt the regulations with modifications not suffi - ciently related to the original text, the modified text will not be adopted without complying anew with the notice requirements of the Administrative Procedure Act. RULEMAKING FILE Pursuant to Government Code

Section 11347.3, the SAB is maintaining a rulemaking file for the proposed regulatory action. The file currently contains: 1. A copy of the text of the regulations for which the adoption is proposed in strikeout/underline. 2. A copy of this Notice. 3. A copy of the Initial Statement of Reasons for the proposed adoption. 4. The factual information upon which the SAB is relying in proposing the adoption. As data and other factual information, studies, re - ports or written comments are received they will be added to the rulemaking file.

The file is available for public inspection at OPSC during normal working hours.

Items 1 through 3 are also available on OPSC’s Internet Web site at: https://www.dgs.ca.gov/OPSC/ Resources/Page–Content/Office–of–Public–School– Construction–Resources–List–Folder/Laws–and– Regulations, scroll down to “California Preschool, Transitional Kindergarten and Full–Day Kindergarten Facilities Grant Program, then “California Preschool, Transitional Kindergarten and FDK Pending Regula - tory Changes” and click on one of the linked docu - ments, such as the 45–day Public Notice, the Initial Statement of Reasons, the proposed regulatory text, forms and the Grant Agreement templates.

ALTERNATIVES In accordance with Government Code

Section 11346.5(a)(13), the SAB must determine that no rea - sonable alternative it considered or that has otherwise been identified and brought to its attention 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 pro - posed action, or would be more cost–effective to af - fected private persons and equally effective in imple - menting the statutory policy or other provision of law.

OPSC held three stakeholder meetings in which stake- holders provided comments/feedback to help with the implementation of the expansion and modifications to the Program. Statute requires the implementation of this Program through regulations. If no regulations, the SAB would be in violation of the statute. A VAILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, the Final Statement of Reasons will be made available and copies may be requested from the agency’s regulation coordinator named in this notice or may be accessed on the website listed above. TITLE 10.

DEPARTMENT OF INSURANCE REG–2022–00012 AMEND CONFLICT–OF–INTEREST CODE NOTICE IS HEREBY GIVEN that the California Department of Insurance (the “Department”), pursu - ant to the authority vested in it by

section 87306 of the Government Code, proposes amendment to its conflict–of–interest code. A comment period has been established commencing on July 22, 2022 and closing on September 6, 2022. All inquiries should be directed to the contact listed below. The Department proposes to amend its conflict– of–interest code to include employee positions that involve the making or participation in the making of decisions that may foreseeably have a material effect on any financial interest, as set forth in subdivision (

a) of

section 87302 of the Government Code. The

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 828 amendment carries out the purposes of the law and no other alternative would do so and be less burdensome to affected persons. Changes to the conflict–of–interest code include: changes to the branches of the Department and the po- sitions under each, reflecting the Department’s reorga- nization as of January 8, 2020; additions of new posi - tions to branches of the Department; and also makes other technical changes. The proposed amendment and explanation of the reasons can be obtained from the agency’s contact.

Any interested person may submit written com - ments relating to the proposed amendment by submit- ting them no later than September 6, 2022, or at the conclusion of the public hearing, if requested, which - ever comes later. At this time, no public hearing is scheduled. A person may request a hearing no later than 15 days prior to the close of the written comment period, which in this case is August 22, 2022. The Department has determined that the proposed amendments: 1. Impose no mandate on local agencies or school districts. 2. Impose no costs or savings on any state agency. 3.

Impose no costs on any local agency or school district that are required to be reimbursed un - der

Part 7 (commencing with

Section 17500) of Division 4 of Title 2 of the Government Code. 4. Will not result in any nondiscretionary costs or savings to local agencies. 5. Will not result in any costs or savings in federal funding to the state. 6. Will not have any potential cost impact on private persons, businesses or small businesses. All inquiries concerning this proposed amendment and any communication required by this notice should be directed to: Sara Danielson, Attorney sara.danielson@insurance.ca.gov (916) 492–3428 TITLE 10. DEPARTMENT OF REAL ESTATE REGULATIONS RELATED TO SB 263 The Real Estate Commissioner and the Department of Real Estate (collectively, “the DRE”), proposes amending

Section 3007.2 of the Regulations of the Real Estate Commissioner, California Code of Reg - ulations, Title 10,

Chapter 6 (“the Regulations”), and adding new Sections 3013.1, 3015 and 3017, to the Regulations, after considering all comments, objec - tions and recommendations regarding this proposed action. Publication of this notice commences a 45–day public comment period. PUBLIC HEARING A public hearing is not scheduled. A public hearing will be held if any interested person, or that person’s duly authorized representative, submits a written re - quest for a public hearing to the DRE, at the contact listed below, no later than 15 days prior to the close of the written comment period.

WRITTEN COMMENT PERIOD Any interested person, or that person’s authorized representative, may submit written comments rel - evant to this proposed regulatory action to the DRE addressed as follows: Regular Mail Department of Real Estate Attention: Jeanine Clasen, Sacramento Legal Office P.O. Box 137007 Sacramento, CA 95813–7007 Electronic Mail DRE.RegComments@dre.ca.gov Facsimile (916) 263–8767 Comments may be submitted until Tuesday, September 6, 2022.

AUTHORITY AND REFERENCE Sections 10080 and 10170.4 of the Business and Professions Code (“the Code”) authorize the DRE to adopt regulations that are reasonably necessary for the enforcement of the provisions of the Real Estate Law (Code Sections 10000 et. seq.), and to prescribe the continuing education requirements for the renew - al of licenses issued pursuant to that law (“real estate licenses”). The proposed amended

Section 3007.2 and new Sections 3013.1, 3015 and 3017 of the Regulations implement, interpret and/or make specific

Section 10170.5 of the Code (“Section 10170.5”) as amended by new law known as SB 263 (Rubio,

Chapter 361,

Section 6, Statutes of 2021) (“SB 263”).

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 829 INFORMATIVE DIGEST/PLAIN ENGLISH OVERVIEW —

SUMMARY OF PROPOSED REGULATION In this proposal, the DRE amends

Section 3007.2 and adds new Sections 3013.1, 3015 and 3017 to the Regulations to implement new requirements imposed by SB 263 concerning the continuing education that must be completed to renew a real estate license. This proposal: ■ Amends

Section 3007.2 to require the DRE’s pri- or approval of all material changes to approved continuing education courses that are made for the purpose of complying with SB 263’s legisla - tive change to

Section 10170.5. The proposal also amends

Section 3007.2 to remove outdated, obso- lete text referring to old legislation. ■ Adds

Section 3013.1 to the Regulations, which interprets and makes specific when and how the new continuing education requirements added to

Section 10170.5 by SB 263 will be applied to licensees, given the January 1, 2023 “operative” date in subdivision (

d) of that statute. ■ Adds

Section 3015 to the Regulations, which in - terprets and makes specific the new “interac - tive participatory” component of the fair housing course in

Section 10170.5 subdivision (a)(4), re - quired by SB 263. ■ Adds

Section 3017 to the Regulations, which makes specific major anti–discrimination laws relevant to the real estate field that must be cov - ered in the fair housing course required by

Section 10170.5 subdivision (a)(4), as amended by SB 263. Anticipated Benefits of the Proposed Regulation Amended

Section 3007.2 in this proposal will bene- fit the DRE by allowing its effective implementation of the SB 263 legislative changes to the statutory continu- ing education requirements for licensees set forth in

Section 10170.5. This approval requirement will allow the DRE to ensure that providers (“providers”) of such continuing education courses (“courses”) required by

Section 10170.5 properly update their courses to com- ply with new law, including SB 263, and to generally ensure the sufficient uniformity and quality of such courses provided to licensees. This will also benefit providers, who will receive, in the approval process, crucial one–on–one guidance from the DRE on how to make their courses comply with the new law, at no cost to the provider unless their re–submission occurs after the SB 263 effective date. The proposal will gen- erally benefit licensees by ensuring their receipt of sufficient quality courses on matters relevant to their licensed activities.

Better courses and education for licensees generally benefits the consumers who deal with the licensees. The other regulations in this proposal (Sections 3013.1, 3015 and 3017) will benefit providers by spe- cifically defining or interpreting ambiguous terms in

Section 10170.5, as amended by SB 263, which is necessary for them to understand and comply with the law. This proposal will benefit the DRE by allowing its efficient and effective dissemination of such crucial guidance in regulatory form. Such guidance will also help the DRE ensure the proper content and quality of courses provided to licensees pursuant to

Section 10170.5. Ensuring the sufficient quality of licensees’ education will generally benefit licensees and the con- sumers who deal with them, as explained in the pre - ceding paragraph. This proposal will benefit the DRE by resolving the meaning of ambiguous terms in

Section 10170.5, as amended by SB 263, without violating Government Code

section 11340.5. Evaluation of Inconsistency/Incompatibility with Existing State Regulations The DRE has determined that these proposed reg - ulations are not inconsistent or incompatible with ex - isting regulations. After conducting a review for any regulations that would relate to the sections affected by this proposal, the DRE has concluded that these are the only State of California regulations relating to these subjects. DISCLOSURES REGARDING THE PROPOSED ACTION The DRE has made the following 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 that 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: approximately 49 course providers may face a one–time course review fee of up to $500. Significant, statewide adverse economic impact directly affecting businesses, including the ability of California businesses to compete with businesses in other states: None.

Significant effect on housing costs: None. RESULTS OF THE ECONOMIC IMPACT ANALYSIS/ASSESSMENT The DRE concludes that it is: (1) unlikely that this regulation proposal (“proposal”) will eliminate any jobs for real estate licensees or associated professions;

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 830 (2) unlikely that this proposal will create jobs; (3) un - likely that this proposal will create new businesses of any sort; (4) unlikely that this proposal will eliminate any existing businesses; (5) unlikely that this proposal will result in the expansion of businesses currently do- ing business in the state; (6) unlikely that this propos - al will impact worker safety in the state; (7) unlikely that this proposal will impact the state’s environment.

However, to the degree that this regulation proposal reinforces the existing fair housing, civil rights, and anti–discrimination laws in the federal and California codes, this regulation will benefit those aspects of the health and welfare of California residents within the protected classes. SMALL BUSINESS DETERMINATION The DRE has determined that there will be a minor fiscal impact on small businesses resulting from this regulation proposal incidental to its implementation of the existing statutory standard. This proposal does not change that standard.

CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5, subdivision (a)(13), the DRE must determine that no reasonable alternative considered, or that has otherwise been identified and brought to its attention, would be more effective in carrying out the purpose for which this regulatory 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.

DRE invites interested persons to present state - ments or arguments with respect to alternatives to the proposed regulation at during the written comment period. CONTACT PERSON Inquiries concerning this action may be directed to Jeanine Clasen at (916) 576–3783, or via email at DRE.RegComments@dre.ca.gov. The backup contact person is Stephen Lerner at (916) 576–8100.

A VAILABILITY OF STATEMENT OF REASONS, TEXT OF PROPOSED REGULATIONS, AND RULEMAKING FILE DRE will have the entire rulemaking file available for inspection and copying throughout the rulemak - ing process at its headquarters office: 1651 Exposition Boulevard, Sacramento, California. As of the date this notice is published in the Notice Register, the rulemak- ing file consists of this notice, the proposed text of the regulations, the initial statement of reasons, and the Form 400 under which the package was submitted to the Office of Administrative Law for publication.

Cop- ies may be obtained by contacting Jeanine Clasen at the mailing address and email address listed on the first page of this notice. A VAILABILITY OF CHANGED OR MODIFIED TEXT After considering all timely and relevant comments received, the DRE may adopt the proposed regulations substantially as described in this notice. If the DRE makes modifications that are sufficiently related to the originally proposed text, DRE will make the modified text (with the changes clearly indicated) available to the public for at least 15 days before the DRE adopts the regulation as revised.

A request for a copy of any modified regulation(

s) should be addressed to the con- tact person designated above. The DRE will accept written comments on the modified regulation for 15 days after the date on which they are made available. A VAILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, the Final Statement of Reasons will be available and copies may be requested from the contact person named in this notice or may be ac - cessed on the website listed below.

A VAILABILITY OF DOCUMENTS ON THE INTERNET Copies of the notice, the initial statement of reasons, and the text of the regulations in underline and strike - out can be accessed through DRE’s website at www. dre.ca.gov. TITLE 15. DEPARTMENT OF CORRECTIONS AND REHABILITATION NOTICE IS HEREBY GIVEN t h a t t h e S e c r e- tary of the California Department of Corrections and Rehabilitation (CDCR or department), proposes to amend

section 3190 into Title 15, Division 3,

Chapter 1, regarding Authorized Personal Property. PUBLIC COMMENT PERIOD The public comment period begins July 22, 2022 and closes on September 6, 2022 . Any person may submit written comments by mail addressed to the primary contact person listed below, or by email to

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 831 rpmb@cdcr.ca.gov, before the close of the comment period. For questions regarding the subject matter of the regulations, call the program contact person listed below. CONTACT PERSONS Primary Contact R. Ruiz Telephone: (916) 445–2244 Regulation and Policy Management Branch P.O. Box 942883 Sacramento, CA 94283–0001 Back–Up Y. Su n Telephone: (916) 445–2269 Regulation and Policy Management Branch P.O. Box 942883 Sacramento, CA 94283–0001 Program Contact M. Bruns Telephone: (916) 324–2758 Division of Adult Institutions P.O.

Box 942883 Sacramento, CA 94283–0001 PUBLIC HEARING Date and Time: September 8, 2022 10:00 a.m.–11:00 a.m. Place: Department of Corrections and Rehabilitation Temporary Conference Room 1515 S Street — North Building Sacramento, CA 95811 AUTHORITY AND REFERENCE Government Code

Section 12838.5 provides that commencing July 1, 2005, CDCR succeeds to, and is vested with, all the powers, functions, duties, respon - sibilities, obligations, liabilities, and jurisdiction of abolished predecessor entities, such as Department of Corrections, Department of the Youth Authority, and Board of Corrections. Penal Code (PC)

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

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

Section 5054 pro- vides that commencing July 1, 2005, the supervision, management, and control of the State prisons, and the responsibility for the care, custody, treatment, train - ing, discipline, and employment of persons confined therein are vested in the Secretary of the CDCR. PC

Section 5055 provides that commencing July 1, 2005, all powers and duties previously granted to and im - posed upon the Department of Corrections shall be exercised by the Secretary of the CDCR. PC

Section 5058 authorizes the Director to prescribe and amend rules and regulations for the administration of prisons and for the administration of the parole of persons. PC

Section 5058.3 authorizes the Director to certify in a written statement filed with Office of Administrative Law that operational needs of the department require adoption, amendment, or repeal of regulation on an emergency basis. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW The Authorized Personal Property

Schedule was revised in 2021. The amended regulations were per - manently adopted on December 20, 2021, however the revision inadvertentally omitted Levels III and IV male inmates from possessing a network capable tab - let. The proposed regulations correct this inadvertent omission. This action will: ● Update the Authorized Personal Property Schedule, which is incorporated by reference into

section 3190 of the California Code of Regulations, Title 15, Division 3 to authorize Level III and Level IV Male Inmates to possess one network capable tablet. ● Update

section 3190 to reflect the current revision date of the APPS. DOCUMENTS INCORPORATED BY REFERENCE Authorized Personal Property

Schedule (Rev. 12/20/21) SPECIFIC BENEFITS ANTICIPATED BY THE PROPOSED REGULATIONS BENEFITS OF THE REGULATIONS The proposed regulations will help to make CDCR institutions safer for inmates and staff as tablets al -

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 832 low for inmates to engage in authorized programs that promote educational, social, cultural, and recreational interests of inmates and may not have as much oppor- tunity to engage in altercations within the institution resulting in a safer environment for inmates and insti - tution staff. Safer institutions may provide an environ- ment more conducive to rehabilitation by providing inmates additional opportunities to participate in re - habilitative, self–help, and educational courses, there- by reducing recidivism.

The proposed regulations will also increase open - ness and transparency in business and government as department regulations and policies will be available on each tablet. This accessibility will provide inmates immediate access to search the department’s regula - tions and policies. EVALUATION OF INCONSISTENCY/ INCOMPATIBILITY WITH EXISTING LAWS AND REGULATIONS Pursuant to Government Code

section 11346.5(a)(3)(D), the department has determined the proposed regulations are not inconsistent or incom - patible with existing regulations. After conducting a review for any regulations that would relate to or affect this area, the department has concluded that these are the only regulations that concern authorized inmate personal property. LOCAL MANDATES This action imposes no mandates on local agencies or school districts, or a mandate which requires reim - bursement of costs or savings pursuant to Government Code sections 17500–17630.

FISCAL IMPACT STATEMENT ● Cost or savings to any state agency: None. ● Cost to any local agency or school district that is required to be reimbursed: None. ● Other nondiscretionary cost or savings imposed on local agencies: None. ● Cost or savings in federal funding to the state: None. EFFECT ON HOUSING COSTS The department has made an initial determination that the proposed action will have no significant effect on housing costs.

COST IMPACTS ON REPRESENTATIVE PRIVATE PERSONS OR BUSINESSES The department is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action.

SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT ON BUSINESS The department has made an initial determination that the proposed regulations will not have a signifi - cant statewide adverse economic impact directly af - fecting business, including the ability of California businesses to compete with businesses in other states, because the proposed regulations place no obligations or requirements on any business. EFFECT ON SMALL BUSINESSES The department has determined that the proposed regulations will not affect small businesses.

This ac - tion has no significant adverse economic impact on small businesses because they place no obligations or requirements on any business. RESULTS OF THE ECONOMIC IMPACT ASSESSMENT The department has determined that the proposed regulation will have no effect on the creation of new, or the elimination of existing, jobs or businesses within California, or affect the expansion of businesses cur - rently doing business in California. The department has determined that the proposed regulation will have no effect on worker safety or the state’s environment.

The proposed regulations are expected to benefit the welfare of California residents by helping to make CDCR institutions safer for inmates and staff. Tablets allow inmates to engage in authorized programs that promote educational, social, cultural, and recreational interests of inmates and may not have as much oppor- tunity to engage in altercations within the institution resulting in a safer environment for inmates and insti - tution staff.

CONSIDERATION OF ALTERNATIVES The department must determine that no reasonable alternative considered by the department or that has otherwise been identified and brought to the attention of the department would be more effective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private persons than the proposed regulatory action, or would be more cost–effective to affected private persons and

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 833 equally effective in implementing the statutory policy or other provisions of law. Interested persons are invit- ed to present statements or arguments with respect to any alternatives to the changes proposed at the sched - uled hearing or during the written comment period. A VAILABILITY OF PROPOSED TEXT AND INITIAL STATEMENT OF REASONS The department has prepared and will make avail - able the text and the Initial Statement of Reasons (ISOR) of the proposed regulations.

The rulemaking file for this regulatory action, which contains those items and all information on which the proposal is based (i.e., rulemaking file) is available to the public upon request directed to the department’s contact per- son. The proposed text, ISOR, and Notice of Proposed Regulations will also be made available on the depart- ment’s website: www.cdcr.ca.gov. A VAILABILITY OF THE FINAL STATEMENT OF REASONS Following its preparation, a copy of the Final State- ment of Reasons may be obtained from the depart - ment’s contact person.

A VAILABILITY OF CHANGES TO PROPOSED TEXT After considering all timely and relevant comments received, the department may adopt the proposed reg- ulations substantially as described in this Notice. If the department makes modifications which are sufficient- ly related to the originally proposed text, it will make the modified text, with the changes clearly indicated, available to the public for at least 15 days before the department adopts, amends or repeals the regulations as revised. Requests for copies of any modified reg - ulation text should be directed to the contact person indicated in this Notice.

The department will accept written comments on the modified regulations for at least 15 days after the date on which they are made available. TITLE 15. DEPARTMENT OF CORRECTIONS AND REHABILITATION NOTICE IS HEREBY GIVEN t h a t t h e S e c r e- tary of the California Department of Corrections and Rehabilitation (CDCR or department), proposes to amend Sections 3000, 3375, 3376.1, 3377.2, and 3379 into Title 15, Division 3,

Chapter 1, regarding the Cal- ifornia Out–of–State Correctional Facility Program. PUBLIC COMMENT PERIOD The public comment period begins July 22, 2022 and closes on September 9, 2022. Any person may submit written comments by mail addressed to the primary contact person listed below, or by email to rpmb@cdcr.ca.gov, before the close of the comment period. For questions regarding the subject matter of the regulations, call the program contact person listed below. CONTACT PERSONS Primary Contact Renee Rodriguez Telephone: (916) 445–2220 Regulation and Policy Management Branch P.O.

Box 942883 Sacramento, CA 94283–0001 Back–Up Y. Su n Telephone: (916) 445–2269 Regulation and Policy Management Branch P.O. Box 942883 Sacramento, CA 94283–0001 Program Contact Carolyn Flores Telephone: (916) 341–6935 PUBLIC HEARING Date and Time: September 9, 2022 10:00 a.m.–11:00 a.m. Place: Department of Corrections and Rehabilitation Conference Room 128N 1515 S Street — North Building Sacramento, CA 95811 AUTHORITY AND REFERENCE Government Code

Section 12838.5 provides that commencing July 1, 2005, CDCR succeeds to, and is vested with, all the powers, functions, duties, respon - sibilities, obligations, liabilities, and jurisdiction of abolished predecessor entities, such as Department of Corrections, Department of the Youth Authority, and Board of Corrections. Penal Code (PC)

Section 5000 provides that com- mencing July 1, 2005, any reference to Department of

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 834 Corrections in this or any code, refer to the CDCR, Division of Adult Operations. PC

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

Section 5054 provides that commencing July 1, 2005, the supervision, management, and control of the State prisons, and the responsibility for the care, custody, treatment, training, discipline, and employ - ment of persons confined therein are vested in the Sec- retary of the CDCR. PC

Section 5055 provides that commencing July 1, 2005, all powers and duties pre - viously granted to and imposed upon the Department of Corrections shall be exercised by the Secretary of the CDCR. PC

Section 5058 authorizes the Director to prescribe and amend rules and regulations for the administration of prisons and for the administration of the parole of persons. PC

Section 5058.3 authorizes the Director to certify in a written statement filed with Office of Administrative Law that operational needs of the Department require adoption, amendment, or repeal of regulation on an emergency basis. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW The department proposes to amend Sections 3000, 3375, 3376.1, 3377.2, and 3379 of the California Code of Regulations (CCR), Title 15, Division 3 regarding the California Out–of–State Correctional Facilities (COCF) Program.

In April of 2011, the passage of Assembly Bill 109 (AB 109) established the California Public Safety Realignment Act of 2011, which allows for current non–violent, non–serious and non–sex offenders to be supervised at the local county level after they are re - leased from California State prison. It was developed to meet the order of the Three–Judge Panel, which was upheld by the United States Supreme Court in 2011 to reduce the prison population. Additionally, AB109 mandated that individuals sentenced to non–serious, non–violent, or non–sex offenses serve their sentences in county jails instead of state prison.

In November 2016, California voters passed Prop - osition 57, known as the Public Safety and Rehabil - itation Act of 2016. Since the passage of Proposition 57, CDCR has incentivized inmates to take responsi - bility for their own rehabilitation by providing credit– earning opportunities for sustained good behavior, as well as in–prison program and activities participation. As of July 1, 2019, due to the implementation of AB 109 and Proposition 57, and the reduction in the prison population, the use of out–of–state facilities program is no longer needed. Accordingly, the department closed all COCF programs.

This action will: Amend the CCR, Title 15 to reflect that the Califor- nia Out–of–State Facility Program is no longer needed and the department has closed all COCF programs, because of the reduction in the prison population due to the implementation of AB 109 and Proposition 57. DOCUMENTS INCORPORATED BY REFERENCE None. SPECIFIC BENEFITS ANTICIPATED BY THE PROPOSED REGULATIONS The proposed regulatory action will align the reg - ulations with department’s current practice as the COCF program has been closed and no longer exists.

Additionally, by eliminating the COCF program and affected regulations, California tax dollars and jobs will remain within the state of California and further provide savings to taxpayers as realized in the Fiscal Year 2019–2020 Governor’s Budget. EVALUATION OF INCONSISTENCY/ INCOMPATIBILITY WITH EXISTING LAWS AND REGULATIONS Pursuant to Government Code 11346.5(a)(3)(D), the department has determined the proposed regulations are not inconsistent or incompatible with existing reg- ulations.

After conducting a review for any regulations that would relate to or affect this area, the department has concluded that these are the only regulations that concern the California Out–of–State Correctional Fa - cilities (COCF). LOCAL MANDATES This action imposes no mandates on local agencies or school districts, or a mandate, which requires reim- bursement of costs or savings pursuant to Government Code Sections 17500–17630.

FISCAL IMPACT STATEMENT ● Cost or savings to any state agency: None. ● Cost to any local agency or school district that is required to be reimbursed: None. ● Other nondiscretionary cost or savings imposed on local agencies: None. ● Cost or savings in federal funding to the state: None.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 835 EFFECT ON HOUSING COSTS The department has made an initial determination that the proposed action will have no significant effect on housing costs. COST IMPACTS ON REPRESENTATIVE PRIVATE PERSONS OR BUSINESSES The department is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action.

SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT ON BUSINESS The department has made an initial determination that the proposed regulations will not have a signifi - cant statewide adverse economic impact directly af - fecting business, including the ability of California businesses to compete with businesses in other states, because the proposed regulations place no obligations or requirements on any business. EFFECT ON SMALL BUSINESSES The department has determined that the proposed regulations will not affect small businesses.

This ac - tion has no significant adverse economic impact on small businesses because they place no obligations or requirements on any business. RESULTS OF THE ECONOMIC IMPACT ASSESSMENT The department has determined that the proposed regulation will have no effect on the creation of new, or the elimination of existing, jobs or businesses with- in California, or affect the expansion of businesses currently doing business in California. The depart - ment has determined that the proposed regulation will have no effect on worker safety or the state’s environ- ment.

The closure of out–of–state facilities may bene- fit the welfare of the prison population and their fami- lies, as it will be easier for family and friends to visit, which is conducive to rehabilitation, thereby reducing recidivism.

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

Interested persons are invit- ed to present statements or arguments with respect to any alternatives to the changes proposed at the sched - uled hearing or during the written comment period. A VAILABILITY OF PROPOSED TEXT AND INITIAL STATEMENT OF REASONS The department has prepared and will make avail - able the text and the Initial Statement of Reasons (ISOR) of the proposed regulations.

The rulemaking file for this regulatory action, which contains those items and all information on which the proposal is based (i.e., rulemaking file) is available to the public upon request directed to the Department’s contact per- son. The proposed text, ISOR, and Notice of Proposed Regulations will also be made available on the depart- ment’s website: www.cdcr.ca.gov. A VAILABILITY OF THE FINAL STATEMENT OF REASONS Following its preparation, a copy of the Final State- ment of Reasons may be obtained from the depart - ment’s contact person.

A VAILABILITY OF CHANGES TO PROPOSED TEXT After considering all timely and relevant comments received, the department may adopt the proposed reg- ulations substantially as described in this Notice. If the department makes modifications, which are sufficient- ly related to the originally proposed text, it will make the modified text, with the changes clearly indicated, available to the public for at least 15 days before the department adopts, amends or repeals the regulations as revised. Requests for copies of any modified reg - ulation text should be directed to the contact person indicated in this Notice.

The department will accept written comments on the modified regulations for at least 15 days after the date on which they are made available.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 836 GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE FISH AND GAME CODE

SECTION 1653 CONSISTENCY DETERMINATION REQUEST FOR SFTR SPRING RUN CHINOOK SALMON RESTORATION PROJECT PHASE 2 (TRACKING NUMBER: 1653–2022–095–001–R1) TRINITY COUNTY California Department of Fish and Wildlife (CDFW) received a Request to Approve on 7/12/2022, that the Watershed Research and Training Center proposes to carry out a habitat restoration or enhancement project pursuant to Fish and Game Code

section 1653. The proposed project involves installing around 310 whole trees in the active channel through helicopter and yard- ing methods. The proposed project will be carried out on South Fork Trinity River (SFTR), upstream of the Highway 36 bridge, Forest Glen, Trinity, California.

On 4/19/2022, the North Coast Regional Water Quality Control Board (Regional Water Board) re - ceived a Notice of Intent (NOI) to comply with the terms of, and obtain coverage under, the General 401 Water Quality Certification Order for Small Habi - tat Restoration Projects (General 401 Order) for the SFTR Spring Run Chinook Salmon Restoration Proj - ect Phase 2.

The Regional Water Board determined that the Project, as described in the NOI, was categor- ically exempt from California Environmental Quality Act (CEQA) review (section 15333 — Small Habitat Restoration Projects) and met the eligibility require - ments for coverage under the General 401 Order. The Regional Water Board issued a Notice of Applicability (WDID Number 1A22053WNTR; ECM PIN Number CW–880743) for coverage under the General 401 Or- der on 6/21/2022.

The Watershed Research and Training Center is re - questing a determination that the project and associat- ed documents are complete pursuant to Fish and Game Code

section 1653 subdivision (d). If CDFW deter - mines the project is complete, the Watershed Research and Training Center will not be required to obtain an incidental take permit under Fish and Game Code

section 2081 subdivision (

b) or a Lake or Streambed Alteration Agreement under Fish and Game Code sec- tion 1605 for the proposed project. In accordance with Fish and Game Code

section 1653 subdivision (e), if CDFW determines during the review, based on substantial evidence, that the request is not complete, the Watershed Research and Training Center will have the opportunity to submit under Fish and Game Code

section 1652. PETITION DECISION BUREAU OF AUTOMOTIVE REPAIR DECISION ON PETITION TO AMEND OR REPEAL MOTOR VEHICLE INSPECTION PROGRAM REGULATIONS AND OR PROPOSED REGULATIONS (DECISION) On June 3, 2022, a Request for Amendment or Re - peal of a Regulation and or Proposed Regulations pur- suant to Government Code

section 11346 was sent to the generic Department of Consumer Affairs email address from William D. Ferreira, Esq. as attorney for interested parties (Petitioners) and subsequently received by the Bureau of Automotive Repair (BAR) on June 6, 2022. Specifically, Petitioners’ request that California Code of Regulations, title 16,

section 3392.4 be repealed entirely as written or that

section 3392.4, subdivision (

d) be amended to apply a stay of suspen- sion of STAR certification pending the outcome of an Administrative Review pursuant to

Chapter 5 (com - mencing with

Section 11500) of

Part 1 of Division 3 of Title 2 of the Government Code. Although not specifically cited by Petitioners, Pe - titioners’ request contains the elements required of a petition under Government Code

section 11340.6. In accordance with Government Code

section 11340.7, which prescribes BAR’s response, this docu- ment serves as BAR’s response to the petition. PROVISIONS OF THE CALIFORNIA CODE OF REGULATIONS REQUESTED TO BE AFFECTED California Code of Regulations title 16,

section 3392.4 et al. or California Code of Regulations title 16,

section 3394.2, subdivision (d). REFERENCE TO AUTHORITY TO TAKE THE REQUESTED ACTION Petitioners reference Health and Safety Code sec - tions 44002, 44016, and 44030. However, petitioners appear to be incorrect in this reference as well. The statutory authority applicable to California Code of Regulations title 16,

section 3392.4 is as follows:

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 837 Authority cited: Sections 44001.5, 44014.2 and 44014.5, Health and Safety Code. AGENCY DETERMINATION The petition is denied. REASONS SUPPORTING THE AGENCY DETERMINATION BAR is required by Health and Safety Code (HSC)

section 44001, subdivision (b)(5)(

E) to administer a program that adheres to federal and state performance standards and that includes a vigorous and effective enforcement program utilizing performance moni - toring of Smog Check stations and technicians. This mandate is further supported in HSC

section 44014.2, subdivision (

a) which requires BAR to establish inspection–based performance standards that all sta - tions are required to meet to be eligible to issue cer - tificates of compliance to directed vehicles or vehicles identified as gross polluters. The program initially developed to meet the requirements of HSC sec - tion 44014.2, subdivision (

a) was the “Gold Shield” program. Assembly Bill 2289, statutes of 2010, amended HSC

section 44014.5, subdivision (d)(2) to establish inspec- tion–based performance standards that test–only sta - tions would be required to meet to issue certificates of compliance to directed vehicles and vehicles iden - tified as gross polluters. While similar to HSC sec - tion 44014.2, subdivision (a), HSC

section 44014.5, subdivision (d)(2)(

A) specifically applies to test–only stations and specifically provides that “failure at any time to meet these [inspection–based performance] standards shall result in suspension of the certifica - tion to test these vehicles granted by the department [BAR]”. To ensure consistency between test and re - pair and test–only stations, the inspection–based per - formance standards established in regulation apply to all stations as stated in HSC 44014.2, subdivision (

a) in addition to test–only stations as stated in HSC

section 44014.5, subdivision (d)(2)(A). Although the statute clearly mandates an immedi - ate suspension for stations failing to meet the required inspection–based performance criteria, HSC

section 44014.5, subdivision (d)(2)(

B) provides a requirement for notice and appeal of the suspension. Specifically, HSC

section 44014.5, requires BAR to provide the station written or electronic notice prior to the suspen- sion and that within five days of receipt of the notice the station may request a hearing [emphasis added] before the chief of the bureau or his or her designee to contest the suspension. HSC 44014.5, subdivision (d)(2)(

B) continues by directing that receipt of a hear- ing request shall stay the suspension pending the out - come of the hearing. HSC 44014.5, subdivision (d)(2)(

C) continues in es- tablishing the timeframes required in the hearing and specifically excluding the hearing process from the hearing requirements of HSC

section 44072. Subdi - vision (d)(2)(

C) concludes by allowing stations to seek an administrative review, before an administrative law judge, of the decision of the chief of the bureau. The statutory scheme described herein clearly de - scribes the inspection–based performance standards that all stations are required to meet to be certified to issue certificates of compliance to directed vehicles and vehicles identified as gross polluters and directs that any station failing to meet those requirements shall be suspended from certifying those vehicles.

Re- pealing the suspension provisions or applying the stay of suspension while awaiting administrative review would completely undermine the intent of the program and would likely result in increased vehicular emis - sions statewide due to under–performing stations and technicians continuing to issue certificates of compli - ance to likely high polluting vehicles.

This petition asks BAR to deviate substantially from its statutory mandate to vigorously and effective- ly enforce the Smog Check program, and due to the potential adverse impact on vehicular emissions, the request that California Code of Regulations title 16,

section 3392.4 be repealed entirely as written or that

section 3392.4, subdivision (

d) be amended to apply a stay of suspension of STAR certification pending the outcome of an Administrative Review pursuant to

Chapter 5 (commencing with

Section 11500) of

Part 1 of Division 3 of Title 2 of the Government Code is denied. AGENCY CONTACT PERSON: Holly O’Connor Bureau of Automotive Repair 10949 North Mather Boulevard Rancho Cordova, CA 95670 Telephone: (916) 403–8600 E–mail: Holly.O’Connor@dca.ca.gov NOTICE TO INTERESTED PERSONS Any interested persons have the right to obtain a copy of the petition that is the subject of this decision by sending a request to the above–referenced agency contact person. DATE OF DECISION July 1, 2022

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 838

SUMMARY OF REGULATORY ACTIONS REGULATIONS FILED WITH THE SECRETARY OF STATE This

Summary of Regulatory Actions lists regula - tions filed with the Secretary of State on the dates in - dicated. Copies of the regulations may be obtained by contacting the agency or from the Secretary of State, Archives, 1020 O Street, Sacramento, CA 95814 (916) 653−7715. Please have the agency name and the date filed (see below) when making a request.

Commission on State Mandates File # 2022–0527–05 Digital Signatures and General Cleanup This timely certificate of compliance makes perma- nent emergency regulations requiring electronically filed Commission forms to be digitally signed, clarifies the procedure for submitting late written comments to Commission meetings held via teleconference, and makes additional nonsubstantive changes for consis - tency with the emergency regulation. This action is exempt from review by the Office of Administrative Law pursuant to Government Code

section 17527(g). Title 02 Amend: 1181.1, 1181.3, 1181.10, 1182.2, 1183.17, 1185.1, 1185.4, 1186.6, 1187.8 Filed 07/11/2022 Effective 10/01/2022 Agency Contact: Jill Magee (916) 323–3562 Fish and Game Commission File # 2022–0527–03 Clam, Sand Crab, and Shrimp Gear Restrictions This action by the Fish and Game Commission makes permanent, with amendments, emergency reg - ulations that prohibit hydraulic pumps for the recre - ational harvest of clams, sand crabs, and shrimp.

Title 14 Amend: 29.05, 29.20, 29.80 Filed 07/11/2022 Effective 07/11/2022 Agency Contact: David Haug (916) 902–9286 Department of Food and Agriculture File # 2022–0629–01 Industrial Hemp In this resubmitted emergency action, the Department amends regulations to align with stat - utory changes made by Senate Bill 292 (Stats. 2021,

chapter 485). The Department also adopts regulations to consolidate

definitions in one section, establish requirements related to planting locations and move - ment of industrial hemp nursery stock, put in place procedures for corrective action plans, and set forth an appeals process to challenge a determination by the commissioner that a violation has occurred.

Title 03 Adopt: 4890, 4936, 4943, 4951, 4952 Amend: 4900, 4901, 4902, 4930, 4935, 4934, 4940, 4941, 4942, 4944, 4946, 4950, 4950.1 Filed 07/11/2022 Effective 07/11/2022 Agency Contact: Rachel Avila (916) 403–6813 Department of Housing and Community Development File # 2022–0616–04 Conflict–of–Interest Code This is a Conflict–of–Interest code that has been ap- proved by the Fair Political Commission and is being submitted for filing with the Secretary of State and printing only.

Title 25 Amend: 6500 Filed 07/06/2022 Effective 08/05/2022 Agency Contact: Eric Nguyen (916) 820–1204 California Prison Industry Authority File # 2022–0607–03 Executive Staff In this non–substantive action, the California Prison Industry Authority updates one

section to correct the capitalization of the term Chief Executive Officer. Title 15 Amend: 8100 Filed 07/13/2022 Agency Contact: Moira Doherty (916) 413–1140 Department of Motor Vehicles File # 2022–0523–01 Annual Fee Adjustment

(2023) This change without regulatory effect by the Department of Motor Vehicles adjusts various Vehicle Code and Revenue and Taxation Code authorized fees relating to motor vehicles in amounts equal to the in - crease in the California Consumer Price Index for the prior year pursuant to Vehicle Code

section 1678(

b) and Revenue and Taxation Code

section 11502(b).

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 29-Z 839 Title 13 Amend: 423.00 Filed 07/06/2022 Effective 01/01/2023 Agency Contact: Randi Calkins (916) 282–7294 State Water Resources Control Board File # 2022–0527–01 Reference Corrections This action without regulatory effect makes non– substantive changes to correct inaccurate references. Title 22 Amend: 64426.8, 64481, 64558, 64650 Filed 07/12/2022 Agency Contact: Melissa Hall (916) 323–0373 Bureau for Private Postsecondary Education File # 2022–0526–02 Annual Reports Submissions and Labor Market Identification Data Assembly Bill 1340 (Stats. 2019,

Chapter 519) (“A.B. 1340”) requires an institution subject to the California Private Postsecondary Education Act of 2009 (Education Code

section 94800, et seq.) to col - lect and retain for each graduate completing a pro - gram at the institution on or after January 1, 2020, individual identifying information, the program the graduate was enrolled in, and specified student loan d