Time- Dated Material GAVIN NEWSOM, GOVERNOR OFFICE OF ADMINISTRATIVE LAW California Regulatory Notice Register REGISTER 2023, NUMBER 14-Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW APRIL 7, 2023 PROPOSED ACTION ON REGULATIONS TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION Conflict–of–Interest Codes — Notice File Number Z2023–0328–18 ........................................ 401 AMENDMENT MULTI–COUNTY: Southern California Association of Governments STATE AGENCY: California Environmental Protection Agency Governor’s Office of Business and Economics Development (GO–Biz) ADOPTION MULTI COUNTY: Panoche Financing Authority TITLE 2. GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT Conflict–of–Interest Code — Notice File Number Z2023–0324–01 ......................................... 402 TITLE 4.

GAMBLING CONTROL COMMISSION Surveillance — Notice File Number Z2023–0328–17 .................................................... 402 TITLE 4. DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL Administration of Music Venue Licenses — Notice File Number Z2023–0328–16 .............................. 415 TITLE 13. DEPARTMENT OF MOTOR VEHICLES Specialized License Plates — Notice File Number Z2023–0323–02 ........................................ 417 TITLE 17.

DEPARTMENT OF PUBLIC HEALTH California Conference of Local Health Officers Public Comment Period Limit — Notice File Number Z2023–0327–03 ................................................................. 421 TITLE 24. BUILDING STANDARDS COMMISSION Intervening Code Adoption Cycle Submittal (BSC 01/22) — Notice File Number Z2023–0327–01 ................ 424 (Continued on next page) (Continued on next page)

(Continued on next page) TITLE 24. BUILDING STANDARDS COMMISSION Intervening Code Adoption Cycle Amendments to the 2022 California Existing Building Code (CEBC) (BSC 03/22) — Notice File Number Z2023–0327–02 ................................. 427 TITLE 24. BUILDING STANDARDS COMMISSION/ DIVISION OF THE STATE ARCHITECT California Building Code,

Part 2 (DSA–SS/CC 03/22) — Notice File Number Z2023–0328–03 .................. 430 TITLE 24. BUILDING STANDARDS COMMISSION/ DIVISION OF THE STATE ARCHITECT California Existing Building Code,

Part 10 (DSA–SS/CC 04/22) — Notice File Number Z2023–0328–04 ................................................................. 434 TITLE 24. BUILDING STANDARDS COMMISSION/DIVISION OF THE STA TE ARCHITECT 2022 California Administrative Code/California Code of Regulations,

Part 1 (DSA–SS/CC 02/22)— Notice File Number Z2023–0328–05 ................................................................. 437 TITLE 24. BUILDING STANDARDS COMMISSION/DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT California Building Code,

Part 2 (HCD 03/22) — Notice File Number Z2023–0328–06 ........................ 440 TITLE 24. BUILDING STANDARDS COMMISSION/OFFICE OF STA TEWIDE HEALTH PLANNING AND DEVELOPMENT 2022 Intervening Code Adoption Cycle,

Part 1 (OSPHD 01/22) — Notice File Number Z2023–0328–07 ........... 445 TITLE 24. BUILDING STANDARDS COMMISSION/OFFICE OF STA TEWIDE HEALTH PLANNING AND DEVELOPMENT 2022 Intervening Code Adoption Cycle,

Part 2, Volume 1 (OSHPD 02/22) — Notice File Number Z2023–0328–08 ................................................................. 448 TITLE 24. BUILDING STANDARDS COMMISSION/OFFICE OF STA TEWIDE HEALTH PLANNING AND DEVELOPMENT 2022 Intervening Code Adoption Cycle,

Part 2, Volume 2 (OSHPD 03/22) — Notice File Number Z2023–0328–09 ................................................................. 452 TITLE 24. BUILDING STANDARDS COMMISSION/OFFICE OF STA TEWIDE HEALTH PLANNING AND DEVELOPMENT 2022 California Existing Building Code,

Part 10 (OSHPD 07/22) — Notice File Number Z2023–0328–10 ................................................................. 455

(Continued on next page) TITLE 24. BUILDING STANDARDS COMMISSION/OFFICE OF STA TE FIRE MARSHAL 2022 Intervening Code Adoption Cycle,

Part 1 (SFM 01/22) — Notice File Number Z2023–0328–11 .............. 458 TITLE 24. BUILDING STANDARDS COMMISSION/OFFICE OF STA TE FIRE MARSHAL 2022 Intervening Code Adoption Cycle,

Part 2 (SFM 02/22) — Notice File Number Z2023–0328–12 ............. 463 TITLE 24. BUILDING STANDARDS COMMISSION/OFFICE OF STA TE FIRE MARSHAL 2022 Intervening Code Adoption Cycle,

Part 2.5 (SFM 03/22) — Notice File Number Z2023–0328–13 ............ 469 TITLE 24. BUILDING STANDARDS COMMISSION/OFFICE OF STA TE FIRE MARSHAL 2022 Intervening Code Adoption Cycle,

Part 9 (SFM 07/22) — Notice File Number Z2023–0328–14 ............. 475 TITLE 24. BUILDING STANDARDS COMMISSION/OFFICE OF STA TE FIRE MARSHAL 2022 Intervening Code Adoption Cycle,

Part 10 (SFM 08/22) — Notice File Number Z2023–0328–15 ............ 482 TITLE 27.

ENVIRONMENTAL PROTECTION AGENCY Specific Regulatory Levels Posing No Significant Risk: Ethylene Oxide — Notice File Number Z2023–0328–01 ..... 488 GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE Proposed Research on Fully Protected Species — Northern California Condor Recovery Program Release and Rehabilitation ......................................................................... 492 DEPARTMENT OF FISH AND WILDLIFE Consistency Determination Number 1653–2023–108–001–R3, Little Fallon Creek Restoration Project, Marin County .............................................................................. 492 DEPARTMENT OF FISH AND WILDLIFE Consistency Determination Request for Green Diamond Aquatic Habitat Conservation Plan, 080–2023–004–01, Del Norte and Humboldt Counties .................................................. 494 DEPARTMENT OF FISH AND WILDLIFE Consistency Determination Request for The Nature Conservancy Santa Clara River Restoration Project, 2080R–2023–005–05, Ventura County .............................................. 495 OFFICE OF ENVIRONMENTAL HEALTH HAZARD ASSESSMENT Air Toxics Hot Spots Program — Notice of Public Comment Period and Workshops on a Draft Cancer Inhalation Unit Risk Factor for Ethylene Oxide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 495

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 . PETITION DECISION DEPARTMENT OF HEALTH CARE SERVICES Regarding Petition from Daniel O. Jamison Concerning Title 9,

Section 3400(b)(2), Allowable Costs and Expenditures Under the Mental Health Services Act ................................... 496

SUMMARY OF REGULATORY ACTIONS Regulations filed with the Secretary of State ........................................................... 497

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 401 PROPOSED ACTION ON REGULATIONS Information contained in this document is published as received from agencies and is not edited by Thomson Reuters. TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION NOTICE IS HEREBY GIVEN that the Fair Polit- ical Practices Commission, pursuant to the authority vested in it by Sections 82011, 87303, and 87304 of the Government Code to review proposed conflict–of– interest codes, will review the proposed/amended conflict–of–interest codes of the following: CONFLICT–OF–INTEREST CODES AMENDMENT M U LT I – COU N T Y: Southern California Association of Governments STAT E AGENCY: California Environmental Protection Agency Governor’s Office of Business and Economic Development (GO–Biz) ADOPTION M U LT I – COU N T Y: Panoche Financing Authority A written comment period has been established commencing on April 7, 2023 and closing on May 22, 2023.

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

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

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

Any written comments must be received no later than May 22, 2023. If a public hearing is to be held, oral comments may be presented to the Commission at the hearing. COST TO LOCAL AGENCIES There shall be no reimbursement for any new or in- creased costs to local government which may result from compliance with these codes because these are not new programs mandated on local agencies by the codes since the requirements described herein were mandated by the Political Reform Act of 1974. There- fore, they are not “costs mandated by the state” as de- fined in Government Code

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

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

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 402 A V AILABILITY OF PROPOSED CONFLICT–OF–INTEREST CODES Copies of the proposed conflict–of–interest codes may be obtained from the Commission offices or the respective agency. Requests for copies from the Com- mission should be made to Daniel Vo, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sac- ramento, California 95811, telephone (916) 322–5660. TITLE 2. GOVERNORS OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT NOTICE IS HEREBY GIVEN that the Governor’s Office of Business and Economic Development, pur- suant 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 April 7, 2023 and closing on May 22, 2023. All inquiries should be directed to the contact listed below. The Governor’s Office of Business and Econom- ic Development proposes to amend its conflict–of– interest code to include employee positions that in- volve the making or participation in the making of de- cisions 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 amend- ment carries out the purposes of the law and no other alternative would do so and be less burdensome to af- fected persons.

Changes to the conflict–of–interest code include: updating the list of designated positions to reflect re- moved and added GO–Biz positions, updating and organizing GO–Biz’s departments to reflect the cur- rent makeup of the agency, updating the disclosure categories to differentiate between reportable interests related to the tourism and entertainment industries for the Office of Tourism and the California Film Com- mission, and other technical changes. The proposed amendment and explanation of the reasons is attached to this email.

Any interested person may submit written com- ments relating to the proposed amendment by submit- ting them no later than May 22, 2023, or at the con - clusion of the public hearing, if requested, whichever comes later. At this time, no public hearing is sched- uled. A person may request a hearing no later than May 8, 2023. The Governor’s Office of Business and Econom- ic Development 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: Hannah Goldsmith, Counsel, Legal Affairs, (916) 715–5697, hannah.goldsmith@gobiz. ca.gov. TITLE 4.

GAMBLING CONTROL COMMISSION SURVEILLANCE CGCC–GCA–2023–01–R NOTICE IS HEREBY GIVEN that the Califor - nia Gambling Control Commission (Commission) is proposing to take the action described in the Infor- mative Digest after consideration of all relevant public comments, objections, and recommendations received concerning the proposed action.

Comments, objec- tions, and recommendations may be submitted as follows: WRITTEN COMMENT PERIOD Any interested person, or his or her authorized rep- resentative, may submit written comments relevant to the proposed regulatory action to the Commission at any time during the 45–day public comment period, which closes on May 22, 2023 . Written comments relevant to the proposed regulatory action may be sent by mail, facsimile, or email, directed to one of the individuals designated in this notice as a contact person.

To be eligible for the Commission’s consid- eration, all written comments must be received at its office no later than May 22, 2023. Comments sent to persons and/or addresses other than those spec - ified under Contact Persons, or received after the date and time specified above, will be included in the record of this proposed regulatory action, but will not be summarized or responded to regardless of the manner of transmission.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 403 PUBLIC H EARING The C ommission h as n ot s cheduled a p ublic h ear- ing o n t his m atter. A ny i nterested p erson, o r h is o r h er authorized r epresentative, m ay r equest a h earing p ur- suant to Government Code

section 11346.8. A request for a h earing s hould b e d irected t o t he p erson(

s) l isted under Contact Persons n o l ater t han 1 5 d ays p rior t o the close of the written comment period. ADOPTION OF PROPOSED ACTION After t he c lose o f t he p ublic c omment p eriod, t he Commission, up on i ts o wn m otion o r a t t he i nstance of a ny i nterested pa rty, m ay t hereafter f ormally a dopt the p roposals s ubstantially a s d escribed b elow o r m ay modify s uch p roposals i f s uch m odifications a re s uffi- ciently r elated t o t he o riginal t ext.

W ith t he e xception of technical or grammatical changes, the full text of any m odified p roposal w ill b e a vailable f or 1 5 d ays prior t o i ts a doption f rom t he p erson d esignated i n t his Notice a s c ontact p erson a nd w ill b e m ailed t o t hose persons w ho s ubmit o ral o r w ritten t estimony r elated to t his p roposal o r w ho h ave r equested n otification o f any changes to the proposal.

AUTHORITY AND REFERENCE Pursuant t o t he a uthority v ested b y se ctions 1 9840, 19841 a nd 1 9924 o f t he B usiness a nd P rofessions Code; a nd t o i mplement, i nterpret o r m ake s pecific sections 1 9827, 1 9841, 1 9922 a nd 1 9924 o f t he B usi- ness a nd P rofessions C ode; t he C ommission is p ro- posing t o a dopt t he f ollowing c hanges t o C hapter 7 o f Division 1 8 o f T itle 4 o f t he C alifornia C ode o f R egu- lations ( CCR): INFORMATIVE DIGEST AND POLICY STATEMENT Introduction: The C ommission is t he s tate ag ency c harged w ith t he administration a nd i mplementation o f t he G ambling Control Ac t ( Act).1 T he C ommission is a uthorized t o adopt r egulations g overning t he o peration o f ga mbling establishments i n C alifornia a nd t o t he e xtent a ppro- priate, m ust t ake i nto c onsideration t he o perational differences o f l arge a nd s mall e stablishments.2 In part, the C ommission is m andated t o a dopt r egulations p re- scribing m inimum p olicies a nd p rocedures f or a dop- tion b y o wner l icensees ( cardroom b usiness l icensees) to e xercise e ffective c ontrol o ver t heir ga mbling a f- fairs, a s w ell a s r egulations t hat r estrict, l imit, o r o th- 1 B usiness a nd P rofessions C ode, D ivision 8 , C hapter 5 , s ection 19800 et seq. 2 Business and Professions Code

section 19840. erwise r egulate a ny a ctivity r elated t o t he c onduct o f controlled ga mbling.3 T he A ct a lso r equires ca rdroom business l icensees t o m aintain se curity c ontrols o ver the ga mbling p remises a nd a ll o perations t herein r elat- ed t o ga mbling, a nd s pecifies t hose se curity c ontrols are s ubject t o t he a pproval o f t he C ommission.4 The Department o f J ustice, B ureau o f G ambling C ontrol (Bureau) is t he ag ency r esponsible f or p erforming a ll investigatory f unctions r equired b y t he A ct.5 This in- cludes i nvestigating s uspected c riminal v iolations a nd the v iolation o f s tate l aws r elated t o ga mbling, i nclud- ing a ny a ctivity p rohibited b y C hapters 9 o r 1 0 o f T itle 9 of

Part 1 of the Penal Code. Existing California Law And Regulation: Business and Professions Code

section 19827 p ro - vides t he B ureau h as a ll p owers n ecessary a nd p roper to e nable i t t o ca rry o ut t he d uties a nd r esponsibilities of the Bureau specified in the Act.

In part, the investi- gatory p owers o f t he B ureau i nclude, b ut a re n ot l im- ited t o, t aking t he f ollowing a ctions up on a pproval o f the chief, without notice or warrant: ● Visit, i nvestigate, a nd p lace e xpert a ccountants, technicians, a nd a ny o ther p erson, a s i t m ay d eem necessary, i n a ll a reas o f t he p remises w herein controlled ga mbling is c onducted f or t he p urpose of d etermining c ompliance w ith t he r ules a nd regulations adopted pursuant to the Act; ● Inspect a ll e quipment a nd s upplies i n a ny ga m- bling establishment; ● Summarily se ize, r emove, a nd i mpound a ny equipment, s upplies, d ocuments, o r r ecords f rom any l icensed p remises f or t he p urpose o f e xam- ination a nd i nspection.

H owever, up on r eason- able d emand b y t he l icensee o r t he l icensee’s a u- thorized r epresentative, a c opy o f a ll d ocuments and r ecords se ized s hall b e m ade a nd l eft o n t he premises; and, ● Demand a ccess t o, a nd i nspect, e xamine, p hoto- copy, a nd a udit a ll pa pers, b ooks, a nd r ecords o f an o wner l icensee o n t he ga mbling p remises i n the presence of the licensee or his or her agent.

Additionally, t he B ureau m ay i nvestigate, f or p ur- poses o f p rosecution, a ny s uspected c riminal v iolation of t he A ct a nd is sue s ubpoenas t o r equire t he a tten- dance a nd t estimony o f w itnesses a nd t he p roduction of books, records, documents, and physical materials. Business and Professions Code

section 19840 p ro - vides t he C ommission m ay a dopt r egulations f or t he administration a nd e nforcement o f t he A ct. T o t he e x- tent a ppropriate, r egulations o f t he C ommission a nd 3 Business and Professions Code

section 19841, subdivisions (

h) and (o). 4 Business and Professions Code

section 19924. 5 Business and Professions Code

section 19826.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 404 the Bureau shall take into consideration the operation- al differences of large and small establishments. Business and Professions Code

section 19841 re- quires, in part, the Commission adopt regulations that prescribe minimum procedures for adoption by owner licensees to exercise effective control over their inter- nal fiscal and gambling affairs, which must include, but not be limited to: ● Requirements for the safeguarding of assets and revenues, including the recording of cash and ev- idences of indebtedness; and, ● The provision of reliable records, accounts, and reports of transactions, operations, and events, including reports to the Bureau. Business and Professions Code

section 19922 pro- vides that no owner licensee will operate a gambling enterprise in violation of any provision of the Act or any regulation adopted pursuant to the Act. Business and Professions Code

section 19924 re- quires each owner licensee to maintain security con- trols over the gambling premises and all operations therein related to gambling, and specifies that those security controls are subject to the approval of the Commission. Title 4, CCR, Division 18,

Section 12380 provides “Minimum Internal Control Standards,” or “MICS,” are the minimum requirements to operate a gambling establishment as set forth in

Chapter 7, and include, but are not limited to, administration controls, and controls requiring segregation of duties. A cardroom business licensee must meet or exceed these require- ments in controlling their gambling operation. The purposes of the MICS are to better ensure the maintenance of accurate records, the recording of all income, the safeguarding of assets and records of the gambling establishment, operational efficiency and integrity, and adherence to prescribed policies and procedures. Failure by a cardroom business licensee to comply with the requirements of

Article 3 constitutes an un- suitable method of operation and is a ground for disci- plinary action. This

section also defines the five different licensee Tiers for gambling establishments as follows: ● Tier I licensee — a cardroom business licensee authorized to operate one to five tables. ● Tier II licensee — a cardroom business licensee authorized to operate six to ten tables. ● Tier III licensee — a cardroom business licensee authorized to operate eleven to thirty tables. ● Tier IV licensee — a cardroom business licensee authorized to operate thirty–one to sixty tables. ● Tier V licensee — a cardroom business licensee authorized to operate sixty–one or more tables. Title 4, CCR, Division 18,

Section 12395 requires, in part, the policies and procedures of all Tiers must meet or exceed the following standards for security: ● Access to restricted areas of the gambling es- tablishment, including but not limited to cages, count rooms, vaults, security offices and surveil- lance rooms, must be limited to authorized per- sonnel in the performance of their duties and must be closely controlled. ● For the purpose of video surveillance recordings, gambling establishments must provide adequate lighting of all public areas, entrances and exits, and for all adjoining parking areas owned, op- erated or otherwise controlled by the cardroom business licensee for use by its patrons. ● In addition to the requirements for all Tiers, the policies and procedures for Tiers IV and V must meet or exceed the following standards for security: ○ Cardroom business licensees must install and maintain a backup generator that is suf- ficient, during power outages, to provide for the operation of lighting systems, informa- tion systems, and surveillance and record- ing systems for a time necessary to protect the safety and security of patrons and em- ployees, patrons’ property, and the card- room business licensee’s assets and proper- ty while gambling operations are terminated and patrons exit the premises. ○ Any gambling establishment that elects to continue gambling operations during a pow- er outage must install and maintain a back- up generator that is sufficient to provide for the full and continued operation of all light- ing systems, all information systems, and all surveillance and recording systems.

CONSISTENCY WITH THE GAMBLING REGULATIONS OF OTHER STATES Nevada Gaming Regulations The Nevada Gaming Commission’s Surveillance Standards for Non–restricted Licensees specify the following categories based on annual gross gaming revenue during the preceding calendar year (NVGC Regulation 5,

Section 1.020 [Rev. 11/21]): ● Category A — $40 million or more; ● Category B — $15 million or more, but less than $40 million; ● Category C — $3 million or more, but less than $15 million; and ● Category D — Less than $3 million.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 405 Pursuant to NVGC Regulation 5,

Section 2.010 (Rev. 11/21), surveillance equipment standards require that: ● For all category “ A ” and “B” licensees, the sur- veillance system must be maintained and oper- ated from a “surveillance room” (defined as a secure location(

s) in a licensed gaming establish- ment used primarily for casino surveillance). ● The entrance to the surveillance room or secured location must be located so that it is not readi- ly accessible by either casino employees who work primarily on the casino floor, or the general public. ● Access to a surveillance room must be limited to surveillance personnel, key employees, and oth- er personnel authorized in accordance with the licensee’s policy as set forth in its written surveil- lance system plan.

Immediately upon request and presentation of proper identification presented to any authorized person, any agent of the Nevada Gaming Control Board (Board) must be provided access. ● For all category “ A ” licensees, in the event of power loss to the surveillance system, an auxil- iary or backup power source must be available and capable of providing immediate restoration of power to all elements of the surveillance sys- tem that enable surveillance personnel to observe the table games remaining open for play and all areas covered by dedicated cameras. ● For all category “ A ” and “B” licensees, the sur- veillance room must be attended at all times by personnel trained in the use of the equipment, knowledge of the games, and house rules.

When necessary, surveillance rooms may be unattended for periods of time not to exceed one hour in any eight–hour period to allow appropriate meal and rest breaks. ● Reasonable effort must be made to repair each malfunction of surveillance system equipment required by these standards within 72 hours after the malfunction is discovered. Standard 2. Required Surveillance Coverage: Table Games.

The surveillance system of all licensees operating three or more table games must possess the capability to monitor and record: ● Each table game area, with sufficient clarity to identify patrons and dealers; and, ● Each table game surface, with sufficient coverage and clarity to simultaneously view the table bank and determine the configuration of wagers, card values, and game outcome. Standard 3. Required Surveillance Coverage: Card Games.

The surveillance system of category “ A,” “B,” and “C” licensees must possess the capability to monitor and record each card game area, with sufficient cover- age to view patrons, dealers, and activities on the card table surfaces. Standard 7. Required Surveillance Coverage: Count Rooms.

The surveillance system of category “ A,” “B,” and “C” licensees must possess the capability to monitor and record all areas where coin may be stored or count- ed, including the hard count room, all doors to the hard count room, all scales and wrapping machines and all areas where uncounted coin may be stored during the drop and count process. Standard 9. Records.

Surveillance records requirements: ● All video recordings of coverage provided by the dedicated cameras or motion–activated dedicat- ed cameras required by these standards must be retained for a minimum of seven days, except for recordings of detentions and questioning by secu- rity personnel, which must be retained for a mini- mum of 30 days. All other recordings must be re- tained a minimum of three days. ● Category “ A ” and “B” licensees must have the ca- pability to produce a still copy or photograph of the images depicted on a video recording, which must be provided to a board agent upon request.

This may be accomplished using a video printer, still camera or other available means. ● Each licensee must maintain a log that documents each malfunction and surveillance system repair. The log must state: ○ The time, date, and nature of each malfunction; ○ The efforts expended to repair the malfunc- tion and the date of each effort; ○ The reasons for any delays in repairing the malfunction; and, ○ The date the malfunction is repaired and, where applicable, any alternative security measures that were taken. Standard 12. Digital Video Recording Standards.

Digital video recording (DVR) standards: ● All DVR equipment and systems used by a licens- ee in their surveillance system to comply with the Surveillance Standards requirements, must: ○ Be capable of recording and thereafter, be- ing viewed, at a minimum of 30 images per second, full screen, in real time.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 406 ○ Have visual resolution of sufficient clarity to meet all published Surveillance Standards (e.g., identifying patrons, dealers, other em- ployees, wagers, game outcomes, etc.). ○ Maintain for a period of not less than sev- en days, all images obtained from the video cameras. ○ Have a failure notification system that pro- vides an audible, as well as a visual notifica- tion of any failure in the surveillance system or the DVR media storage system. ○ Have a media storage system that is config- ured so that a failure of any single compo- nent will not result in the loss of any data from the media storage system. ○ Any part of a Category “ A,” “B,” or “C” licensee’s surveillance system that uses a DVR, must not have more than eight cam - eras required by the published surveillance standards in the first stage of concentration, unless the licensee has a fault tolerant or re - dundant system so there is no loss of data in the event of a failure of a single first stage of concentration. ○ All digital video disks or other storage media produced from the DVR system must con- tain the data with the time and date it was re- corded superimposed, the media player that has the software necessary to view the DVR images, as well as a video verification en- cryption code (also known as a watermark). ○ A video verification encryption code (water- mark), must be submitted to the Board, at no cost to the Board, before the Board’s inspec- tion and approval of the DVR system. ○ Any failure of a DVR storage media system, must be repaired or replaced within eight hours of the failure. ○ All DVR equipment must be located in the surveillance room of Category “ A ” and “B” licensees, and the secure location re- quired of Category “C” and “D” licensees by Surveillance Standard 2.010(2), and the Surveillance Department shall be ultimate- ly responsible for its proper operation and maintenance.

Standard 13. Surveillance System Standards. The surveillance system of a category “ A,” “B,” or “C” licensee, must be established and thereafter, maintained, so that a failure of any part or component will not result in the cessation of more than 50 percent of the surveillance coverage of the gaming area. Mississippi Gaming Regulations — Title 13,

Part 3,

Chapter 6 Rule 6.2. Access to Monitor Rooms. ● Access to “monitor rooms” (defined as the des- ignated room(

s) on the licensee’s property that houses the surveillance system, used exclusive- ly for casino surveillance purposes and dedicat- ed to providing the coverage prescribed by this regulation) shall be limited to only those person- nel who are employed exclusively for surveillance purposes and those personnel whose names ap- pear on the monitor room access list approved by the Executive Director. ● Additional personnel may be granted access, with prior written approval from the Executive Director, for management purposes, or to re- pair, install or maintain equipment residing in the monitor room.

Any person that is not employed exclusively for surveillance purposes, must, upon entry to the monitor room, enter their name, the date, the reason for their visit and the time they arrived and departed from the monitor room on a visitor’s log. Rule 6.3.

Surveillance Systems: General Requirements and Minimum Standards. ● Every licensee shall install, maintain and oper- ate at all times a surveillance system either com - prised of cameras, monitors, video recorders and a video printer; or an alternative system approved by the Executive Director that provides the cover- age required by this regulation. ● The entrance to the monitor room must be located away from the view of casino employees and the general public. ● The monitor room must be staffed and the sur- veillance equipment monitored at all times by trained surveillance personnel. ● The individual responsible for the operation of the Surveillance Department shall not share any duties with the individual responsible for the op- eration of the Security Department.

The duties of the Security and Surveillance Departments shall be separate and distinct and neither department nor individual responsible for either department shall have supervisory authority over the other. Rule 6.5. Surveillance Systems: Table Games and Card Rooms. ● Every licensee who operates table games or a card room shall install, maintain and operate at all times a surveillance system that shall possess the capacity to monitor and record clear and un- obstructed views of all active table games or card table surfaces, including table bank trays, with sufficient clarity to permit identification of all

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 407 chip, cash, dice and card values and the outcome of the game. ● Every licensee who operates table games or a card room shall install, maintain, and operate at all times a surveillance system that shall possess the capability to monitor and record clear and un- obstructed views of the following: ○ All table game and card room areas with sufficient clarity to permit identification of all dealers, patrons, spectators and pit personnel; ○ All drop boxes and table numbers; and, ○ Simultaneous coverage of both the table game area and the table game surface.

Rule 6.9 Casino Surveillance System Equipment Malfunctions. ● Every licensee shall establish and maintain a log, in a format approved by the Executive Director, of any and all casino surveillance system equip- ment malfunctions, and retain the log for a period of three years. ● Each malfunction of the surveillance system must be repaired within 24 hours of the mal- function. If, after 24 hours, activity in the affect- ed area cannot be monitored, the game(

s) or ma- chine(

s) shall be closed until such coverage can be provided. A record of all malfunctions shall be kept and reported to the Executive Director each day. In the event of a dedicated coverage malfunction, the licensee must immediately pro- vide alternative camera coverage or other secu- rity measures that will protect the subject ac- tivity. If other security measures are taken, the licensee must immediately notify the Executive Director. The Executive Director may, in his or her discretion, determine whether the other secu- rity measures are adequate. Further, all activity in the area(

s) affected by the malfunction will be suspended pending repair if adequate alternative coverage cannot be provided.

Rule 6.10 Surveillance System Recording Requirements. ● Every licensee shall record and maintain a shift activity log of all specific activities observed by casino surveillance personnel, and any activities that appear unusual or irregular, or that violate or appear to violate the Mississippi Gaming Control Act, the regulations promulgated thereunder, an internal control or procedure, or any common- ly known criminal statute of Mississippi or the United States, and notify the Executive Director by telephone immediately. The log entry shall be recognized by a unique number or identifier by the employee(

s) making the entry in digital systems and signed by the employee(

s) that utilize an analog system. ● All recordings produced by a surveillance system must present a clear and unobstructed view of the scene depicted thereon. ● Every licensee must retain all video recordings for at least 14 days after the recording is pro- duced, unless a shorter time period is allowed by another

section of this regulation, or by order of the Executive Director, the Commission, or a court of competent jurisdiction. Louisiana Gaming Regulations — Title 42,

Part III,

Chapter 33

Section 3301.

Required Surveillance Equipment. ● All cameras shall be installed in fixed positions with matrix control or with pan, tilt and zoom ca- pabilities, concealed from public and non–sur- veillance personnel view, to effectively and clan- destinely monitor activity in detail, from various vantage points. ● Cameras, as approved by the division, shall mon- itor in detail, from various vantage points, the following: ○ The entrance and exits to the casino and the count rooms; ○ For all live games regardless of patron or employee position: ▪ Hands of all gaming patrons and dealers; ▪ Tray; and, ▪ The overall layout of the table area ca- pable of capturing clear individual im- ages of gaming patrons and dealers, inclusive of, without limitation, fa- cial views and the playing surface so that the outcome of each game may be clearly observed.

Section 3302. Digital Video Recording Standards. ● Pursuant to the division’s specifications and at the licensee’s or casino operator’s costs, the licensee or casino operator shall provide the division with the necessary software and hardware, to review a downloaded recording and the video verification encryption code or watermark, before the divi- sion’s inspection and approval of the digital video system.

Section 3304. Surveillance Personnel Employment Provisions. ● Surveillance department employees must be in- dependent of all other departments and must re- port directly to the general manager or higher corporate official.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 408 ● Licensee or casino operator employees assigned to monitoring duties in the surveillance room are prohibited from being concurrently employed in any other capacity by the licensee or casino op- erator, or any affiliate of the licensee or casino operator.

Section 3305. Surveillance and Division Room Requirements. ● Employees of the licensee or casino operator as- signed to monitoring duties in the surveillance room shall have no other duties. ● The surveillance room shall be manned at all times by a sufficient number of surveillance op- erators as approved in the internal controls. The division may require additional surveillance per- sonnel should it be determined that an inadequa- cy of surveillance monitoring exists.

Section 3309. Surveillance Logs. ● The licensee and the casino operator shall main- tain a division–approved surveillance log. The log shall be maintained by surveillance room personnel in the surveillance room. The division shall have access to the log at all times. A log en- try shall be made in the surveillance log of each surveillance activity. Each log entry shall include the following: ○ The identity of any person entering and exit- ing the surveillance room; ○ A

summary, including date, time and dura- tion, of each surveillance activity; ○ A record of any equipment or camera malfunctions; ○ A description of any unusual events occur- ring; and ○ Any additional information as required by the division.

Section 3315. Maintenance and Testing. ● Any malfunction of surveillance equipment shall necessitate the immediate replacement of the faulty equipment. If immediate replacement is not possible, alternative live monitoring shall be provided by security personnel. ● The division shall determine if gaming should continue with live monitoring and shall have au- thority to cease gaming operations not monitored by the surveillance system. Washington State Gambling Regulations — WAC, Title 230,

Chapter 15

Section 430. Internal Control Requirements. ● Licensees must establish separate departments or functions that must be independent from each other. At a minimum, these departments or func- tions must include: ○ Surveillance; ○ Security; ○ Gambling; and, ○ Accounting. New Jersey State Gaming — NJAC, Title 13,

Chapter 69D

Section 1.10. Closed circuit television system; surveillance department control; surveillance department restrictions. ● Each casino licensee must install in its establish- ment a closed circuit television (CCTV) system that must be under the surveillance department’s exclusive control. ● Each casino licensee must maintain a surveil- lance log of all surveillance activities in the mon- itoring room.

At a minimum, the following infor- mation shall be recorded in a surveillance log: ○ The date and time each surveillance commenced; ○ The name and license credential number of each person who initiates, performs or su- pervises the surveillance; ○ The reason for surveillance, including the name, if known, alias or description of each individual being monitored, and a brief de- scription of the activity in which the person being monitored is engaging; ○ The times at which each video or audio re- cording is commenced and terminated; ○ The time at which each suspected criminal offense is observed, along with a notation of the reading on the meter, counter or device (as specified) that identifies the point on the video recording at which such offense was recorded; ○ The time of termination of surveillance; and ○

Summary of results of the surveillance. ● Surveillance department employees assigned to monitor the activities must be independent of all other departments. EFFECT OF REGULATORY ACTION The Commission is proposing to amend its MICS regulations concerning surveillance requirements for gambling establishments, which take into account the variations in size of different gaming operations in existing cardroom business licensee Tiers I through V that are based on the number of gaming tables a cardroom business licensee is licensed to operate.

The proposed amendments make specified surveil- lance requirements currently only applicable to Tier V cardroom business licensees additionally applicable to Tier IV cardroom business licensees. Specifically,

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 409 these proposed regulations require a Tier IV cardroom business licensee to have a separate surveillance unit with dedicated staff, a dedicated camera installed at each gambling table, and one Pan/Tilt/Zoom camera installed at every ten or fewer authorized tables pres- ent in the gambling operations area, as specified. The amendments also make necessary updates to require- ments for all Tiers concerning the quality and format of video recordings consistent with modern–day digi- tal surveillance technologies.

ANTICIPATED BENEFITS FROM THE PROPOSED REGULATIONS The proposed amendments would add Tier IV card- room business licensees to specified surveillance re- quirements previously reserved only for Tier V card- room business licensees; namely requiring a separate surveillance unit to be staffed during all hours while gambling operations are taking place and dedicated surveillance cameras at all gaming tables. Doing so will strengthen internal controls for Tier IV cardroom business licensees and provide an extra layer of safe- ty and security.

Adding Tier IV cardroom business licensees to the more stringent surveillance require- ments previously reserved for Tier V cardroom busi- ness licensees will make California’s standards similar to those found in other states, including Nevada and New Jersey. For all cardroom business license Tiers, requiring digital surveillance recordings be captured, recorded, copied, and stored with sufficient clarity will better assist the Bureau and local law enforcement in conducting investigations.

Further, the proposed ac- tion will benefit cardroom business licensees in fur- ther safeguarding their assets, protecting patrons and their property, while maintaining the integrity of con- trolled gambling. The proposal will also increase pub- lic trust in gaming throughout California. SPECIFIC PROPOSAL This proposed action will make changes within the California Code of Regulations, Title 4, Division 18, as follows: General Changes A general change has been made in the proposal to replace the word “shall” with other words less sub- ject to

interpretation. Shall is a potentially ambiguous word. In most connotations it is used to convey an ob- ligation. However, the word has been used in a vari- ety of contexts to convey a range of ideas including “may,” defining a term, meaning “should,” compel- ling as “must,” etc. In an effort to foreclose any such ambiguity, shall is replaced throughout the text with other words subject to less

interpretation. These are non–substantive, clarifying changes to syntax within the meaning of

Section 100(a)(4), Title 1 of the CCR.

Chapter 7. Conditions of Operation for Gambling Establishments.

Article 3. Minimum Internal Control Standards (MICS) for Cardroom Business Licensees. Amend

Section 12396. Surveillance. In general, this

section requires cardroom business licensees to adopt specified minimum policies and procedures concerning surveillance. The require- ments increase throughout this

section based on the relative size (Tier) of the gambling establishment, which is determined by the number of tables the card- room business licensee is authorized to operate. Exist- ing

Section 12380(

d) defines the five different license Tiers as follows: ● Tier I licensee — a cardroom business licensee authorized to operate one to five tables. ● Tier II licensee — a cardroom business licensee authorized to operate six to ten tables. ● Tier III licensee — a cardroom business licensee authorized to operate eleven to thirty tables. ● Tier IV licensee — a cardroom business licensee authorized to operate thirty–one to sixty tables. ● Tier V licensee — a cardroom business licensee authorized to operate sixty–one or more tables. Subsection (

a) provides minimum surveillance system requirements applicable to cardroom business licensees in all Tiers. Paragraph (1) requires all cardroom business licensees to install and maintain on site in the gam- bling establishment, a surveillance system with vid- eo recording and CCTV monitoring capabilities. The surveillance system is required to record the gambling establishment’s critical gambling operation areas and activities (as specified) as well as the interior of the entrances and exits with reasonable coverage and clar- ity.

Additionally, the video recording equipment must meet specified parameters in displaying the current date and time of recorded events. Although remote, off–site access capabilities are allowed for the surveil- lance system, those capabilities may only be used for secondary support of any required on–site systems. This paragraph is proposed for amendment to add card values, wagers, and game outcomes to the list of things that must be recorded with reasonable coverage and clarity by the surveillance system; applicable to all cardroom business license Tiers.

Additionally, lan- guage is added to clarify that an overhead view of the card values, wagers, and game outcomes is acceptable, and to exempt specified demonstration and instruc- tional tables from the requirement when cash or prizes are not involved. The proposed change would make these requirements and exemptions, which already ex-

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 410 ist for cardroom business licensees in Tiers II through V [see subsection (b)(2)], applicable to Tier I cardroom business licensees. Paragraph (2) requires all surveillance recordings to be made in real time mode, or at a speed sufficient to capture and record the actions of all individuals being observed. The provision provides an exemption that allows for gambling establishment entrances, exits, and parking areas to be recorded in time lapse mode at a minimum speed of 15 frames per second.

This paragraph is proposed for amendment to re- move the exemption that currently allows gambling establishment entrances, exits, and parking areas to be recorded in time lapse mode at a minimum of 15 frames per second. Paragraph (4) requires surveillance system op- eration to be checked on a daily basis to ensure that the equipment is functioning properly. Reasonable ef- forts must be made to repair malfunctioning surveil- lance equipment within 72 hours of the discovery of a malfunction.

This paragraph is proposed for amendment to add “or replace” after “repair.” Additionally, this paragraph is proposed for amend- ment to add language that specifies if the surveillance system ceases to be able to record any area of the gam- bling establishment that is required to be recorded by this Article, the cardroom business licensee must take lawful steps to ensure the area is not used for any ac- tivity subject to the surveillance requirements until the surveillance system is able to record the area.

The provision provides an exemption for parking lots and a sentence is added to clarify the term “lawful” means in accordance with federal, state, and local requirements. Paragraph (5) provides specific standards if the surveillance system utilizes a DVR system. Currently, this paragraph is permissive and provides standards that are only applicable if DVRs are used. This paragraph is proposed for amendment to re- quire the surveillance system utilize a DVR, network video recorder (NVR), or equivalent system, which is consistent with current surveillance industry stan- dards and practice.

The requirement to utilize a DVR, NVR, or equivalent system will effectively prohibit the use videocassette recorders (VCRs) in surveillance systems. Further, language is proposed to apply exist- ing DVR standards to NVRs or equivalent systems. Additionally, subparagraph (

C) is proposed for amendment to allow portable digital storage devices to be used in addition to digital video discs (DVDs) when reproducing or copying surveillance data stored on a media storage system. Other non–substantive amendments proposed throughout this paragraph are technical in nature. Paragraph (7) establishes retention requirements for surveillance recordings. This paragraph is proposed to be amended with non–substantive changes concerning the minimum timeframe recordings must be retained (unless oth- erwise requested by the Bureau), which increased on June 1, 2013, from 7 to 14 days.

Now that the imple- mentation date has passed, the current requirement is being appropriately codified along with the repeal of the sunrise clause in subparagraph (B). Paragraph (8) a u t h o r i z e s B u r e a u s t a ff , w i t h a p- proval of the chief, to demand immediate access to the surveillance room and any area of the gambling estab- lishment in which surveillance equipment is installed or maintained or where surveillance video recordings are stored, at any time during the gambling establish- ment’s actual hours of operation.

Additionally, para- graph (8) requires cardroom business licensees or their authorized representatives to provide such access to Bureau staff. Furthermore, this paragraph autho- rizes the Bureau to take custody of and remove from the gambling establishment original video recordings or copies of digital recordings that are required to be made and maintained pursuant to the Act or regula- tions, limits disclosure of surveillance video record- ings by the Bureau, and provides a process for Bureau staff to make copies of surveillance recordings taken into Bureau custody upon reasonable request.

This paragraph is proposed for amendment to di- vide the paragraph into two subparagraphs (A and B), which provides for better readability. A non–substan- tive change to capitalize the word “chief” in subpara- graph (

A) is proposed for consistency with the term as defined in

Chapter 1. Further, two clauses are proposed to be added to subparagraph (B). Clause (

i) would require digital cop- ies to be a clear representation of the original. Clause (ii) requires the cardroom business licensee to provide the Bureau with any software that may be necessary to view the digital copies or in a format that is acceptable to the Bureau. Subsection (

b) provides surveillance standards for cardroom business licensees in Tiers II through V in addition to the requirements of subsection (a). Paragraph (1) requires the surveillance system to, at a minimum, record both the interior and exterior of the gambling establishment entrances and exits.

This paragraph is proposed for amendment to re- quire the surveillance system of a Tier II through V cardroom business licensee to have dedicated camer- as for monitoring and recording the gambling estab- lishment entrances and exits with sufficient clarity to afford reasonable opportunity to identify persons en- tering and exiting. The existing requirement, which specifies the “interior and exterior” of the entrances and exits must be recorded, is proposed to be modified to meet the intended performance goal of the regula-

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 411 tion concerning video clarity while ensuring compli- ance is achievable. Paragraph (2) requires the surveillance system to have a sufficient number of cameras dedicated to gam- bling tables for viewing and recording patrons, deal- ers, wagers, cards, and game outcomes at each table. This paragraph is proposed for amendment to re- place the term “cards” with “card values,” which aligns with the proposed language in

Section 12396(a) (1). Subsection (

c) requires, in addition to the require- ments of subsections (

a) and (b), the surveillance sys- tem for a Tier III through V cardroom business licens- ee to include coverage and recording of all adjoining patron parking areas owned, operated, or otherwise controlled by the cardroom business licensee. This subsection is proposed for amendment to be more specific by requiring the coverage and recording to be done with sufficient clarity to provide opportuni- ty to obtain a description of the vehicles entering and exiting the parking areas. Notably, existing

Section 12395(a)(2) already requires all gambling establish- ments to provide adequate lighting of all public areas, including adjoining parking areas, for the purpose of video surveillance recordings. Subsection (

d) provides, in addition to the require- ments of subsections (a), (b), and (c), the policies and procedures of a Tier IV cardroom business licensee must require, during all hours of operation, a card- room owner type licensee or key employee licensee who has the ability to access live and previous surveil- lance video recordings, to be on duty at the gambling establishment. This subsection is proposed to be repealed. The amendment proposed to former subsection (e), rela- beled as subsection (

d) in the proposed regulations, makes the surveillance requirements previously re- served only for Tier V cardroom business licensees additionally applicable to Tier IV cardroom business licensees. In part, this would require Tier IV cardroom business licensees to have at least one surveillance employee present in the surveillance room during all hours of operation. The existing requirement for Tier IV cardroom business licensees is being expanded upon under the changes proposed in subsection (e). Please see that

section for more details on the addi- tional requirements. Subsection (e), which has been renumbered to sub-

section (d), provides surveillance requirements specif- ic to Tier V cardroom business licensees in addition to the requirements of subsections (a), (b), (c), and (d). Paragraph (1) requires Tier V cardroom business licensees to establish a surveillance unit separate and apart from the security department with dedicated staff that have no other gambling–related duties.

Paragraph (2) requires Tier V cardroom business licensees to establish and maintain a separate surveil- lance room with controlled access through a secured door or doors, which is under constant recorded video surveillance, and with no entrance or exit door readily observable or accessible from the gambling operation area. Paragraph (3) provides that routine access and en- try to the surveillance room must be limited to on– duty surveillance unit employees assigned to monitor gambling operations.

However, access may be grant- ed to other cardroom employee type licensees for the purpose of performing their duties, and other persons may be granted limited access for educational, investi- gative or maintenance purposes, if accompanied at all times by a surveillance unit employee. Paragraph (4) requires at least one surveillance em- ployee to be present in the surveillance room and ac- tively monitoring the gambling operations during all hours of operation.

Although the provision allows the surveillance room to be unattended for a maximum total of one hour during any shift or eight–hour period for required meal and rest breaks, no controlled gam- bling may take place when a surveillance employee is not present and on duty in the establishment, whether on a break or not. Paragraph (5) requires the surveillance of the count room to include CCTV monitoring and video recording. Paragraph (6) requires Tier V cardroom business licensees to maintain a surveillance activity log of all surveillance room activity that occurs during a sur- veillance period or shift.

Entries in the surveillance activity log must be made by on–duty surveillance personnel and include the following: (

A) The date and time of commencement of the sur- veillance period or shift; (

B) The printed name(

s) of the person(

s) conducting the surveillance; (

C) The date and time of termination of the surveil- lance period or shift; (

D) A

summary of the results of the surveillance, in- cluding a notation of the time of recording of any event, activity, occurrence, process or procedure that was monitored during the surveillance peri- od or shift, whether the recording or monitoring was required or not; (

E) A notation of the time of the discovery or occur- rence of any equipment or camera malfunctions during the surveillance period or shift; (

F) A notation of the time of the correction or repair of any equipment or camera malfunctions occur- ring during the surveillance period or shift, if corrected or repaired during that period or shift;

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 412 (

G) A notation of the time of the correction or repair of any equipment or camera malfunctions discov- ered and noted in a previous surveillance period or shift, if corrected or repaired during the cur- rent period or shift; (

H) A notation of the time of occurrence of any med- ical emergency event or law enforcement event, including any incident number generated by the responding entity, if available; (

I) A notation of the time(

s) of drop box collection occurring during the surveillance period or shift; (

J) A notation of the time of drop count procedure(

s) occurring during the surveillance period or shift; and, (

K) A notation of the times of patron disputes occur- ring during the surveillance period or shift that required the intervention of the security depart- ment, if any. Paragraph (7) requires Tier V cardroom business licensees to have a dedicated camera at each gambling table that records in real time mode or at a speed suffi- cient to capture and record the actions of all individuals being observed. These gambling table cameras must provide clear surveillance coverage of all controlled gambling at all hours of operation.

Additionally, one Pan/Tilt/Zoom camera must be installed for every ten or fewer authorized tables present in any gambling operations area of the gambling establishment, and a reasonable attempt must be made to pan the faces of patrons and dealers for identification at least once per work shift of surveillance unit employees. This subsection is proposed to be relabeled as sub-

section (

d) to conform to the proposed repeal of exist- ing subsection (d), which is a nonsubstantive change. Additionally, this subsection is proposed to be amend- ed to make the minimum surveillance standards cur- rently required for the policies and procedures of Tier V cardroom business licensees (discussed above) ad- ditionally applicable to Tier IV cardroom business licensees.

Further, amendments are proposed to existing para- graph (4) of this subsection to establish an exception for Tier IV cardroom business licensees concerning the requirement for at least one surveillance employ- ee to be present in the surveillance room and actively monitoring the gambling operations during all hours of operation, as specified.

This exception allows Tier IV cardroom business licensees to utilize a contingen- cy plan previously approved by the Bureau to use a cardroom employee type licensee to fulfill the require- ments of this paragraph when a surveillance employ- ee is unavailable due to unforeseen exigencies. Addi- tionally, subparagraphs (

A) through (

C) are proposed to be added. These provisions provide a process for a Tier IV cardroom business licensee to submit a writ- ten request for the Bureau’s review and approval of its contingency plan and provide automatic approval of the plan if not disapproved by the Bureau in writing within 30 calendar days of the Bureau’s receipt of the request. A Tier IV cardroom business licensee is re- quired to notify the Bureau in writing within five cal- endar days after utilizing the contingency plan option.

CONSISTENCY OR COMPATIBILITY WITH EXISTING STATE REGULATIONS The Commission has evaluated this regulatory ac- tion and determined that the proposed regulations are neither inconsistent nor incompatible with any other existing state regulations. COMPARABLE FEDERAL LA W There are no existing federal regulations or statutes comparable to the proposed regulations. FISCAL IMPACT ESTIMATES Fiscal Impact On Public Agencies Including Costs Or Savings To State Agencies Or Costs/ Savings In Federal Funding To The State: The proposed action is estimated to have no fiscal impact to the Commission.

The Bureau has determined that the proposed ac- tion will result in a minor, absorbable fiscal impact to make copies of the digital media, which includes additional costs of approximately $600 per year for purchasing external hard drives. The Bureau suggests that gambling establishments are required to supply a minimum of two copies (one evidentiary copy and one working copy) to the Bureau of digital media. This would increase efficiency for evidence collection and result in cost savings for the Bureau. There are no costs or savings in federal funding to the state.

Non–Discretionary Cost Or Savings Imposed Upon Local Agencies: None. Mandate Imposed On Any Local Agency Or School District For Which

Part 7 (Commencing With

Section 17500) Of Division 4 Of The Government Code Requires Reimbursement: None. Cost To Any Local Agency Or School District For Which

Part 7 (Commencing With

Section 17500) Of Division 4 Of The Government Code Requires Reimbursement: None. Effect On Housing Costs: None.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 413 Impact On Business: The Commission has made a determination that the proposed regulatory action would have no signif- icant statewide adverse economic impact directly af- fecting businesses, including the ability of California businesses to compete with businesses in other states. This determination is based on the following facts or evidence/documents/testimony: The proposed action updates existing MICS re- quirements concerning surveillance at gambling es- tablishments and takes into account the variations in size of different gaming operations.

The proposed action makes specified surveillance requirements cur- rently only applicable to Tier V cardroom business licensees (authorized to operate 61 or more gaming ta- bles) additionally applicable to Tier IV cardroom busi- ness licensees (authorized to operate 31 to 60 gaming tables).

Specifically, this would require a Tier IV cardroom business licensee to establish a separate surveillance unit with dedicated surveillance staff and provide a dedicated camera installed at each gambling table and one Pan/Tilt/Zoom camera installed at every ten or fewer authorized tables present in the gambling oper- ations area, as specified. The amendments also make necessary updates to the requirements for cardroom business licensees in all Tiers concerning the quality and format of video recordings consistent with mod- ern–day digital surveillance technologies.

To provide cardroom business licensees enough time to upgrade their existing surveillance systems in compliance with the regulatory changes, these regulations will be sub- mitted to the Office of Administrative Law for final review with a request for a delayed effective date of 12 months from the date of filing with the Secretary of State. Although there are 84 licensed cardrooms, only 61 are active and impacted by this proposed action. Out of the 61 cardrooms that are impacted, 50 are small businesses and 11 are typical businesses.

The total statewide dollar costs that businesses may incur to comply with this regulation over its lifetime is es- timated to include average initial one–time costs of $63,776 per small business cardroom and $150,976 per typical business cardroom in the first year, and aver- age annual ongoing costs of $30,571 per small business cardroom and $79,635 per typical business cardroom in all subsequent years. This results in an estimated industry–wide total cost of $4,849,524 in the first year and an ongoing cost of $2,404,516 per year thereafter.

Notably, the actual industry–wide total costs may be substantially lower, as many cardrooms already meet the proposed requirements. These costs will not inhibit a California business from competing with businesses in other states as the gambling industry does not cross state lines and the amounts involved are not significant enough to affect industry competitiveness. Furthermore, the proposed changes would make the surveillance standards for California cardrooms consistent with the surveillance requirements of similar–sized gaming facilities found in other states, including Nevada and New Jersey.

Cost Impact on Representative Private Person or Business: The Commission anticipates a cost impact on a typ- ical cardroom business licensee resulting from the proposed requirements for cardroom business licens- ees in all Tiers concerning the quality and format of video recordings, and additional surveillance–related requirements for Tier IV cardroom business licensees. As noted above, the Commission estimates that the proposed action will have an average initial cost of $150,976 per typical business in the first year and an average ongoing cost of $79,635 per typical business in each subsequent year.

Notably, the actual industry– wide total costs may be substantially lower, as many cardrooms already meet the proposed requirements. The proposed regulation will have no impact on a representative private person. Effect on Small Business: The Commission has determined that the proposed regulatory action will have a similar impact on small business to comply with the proposed regulations.

As noted above, the Commission estimates that the proposed action will have an average initial cost of $63,776 per small business in the first year and an av- erage ongoing cost of $30,571 per small business in each subsequent year. Notably, the actual industry– wide total costs may be substantially lower, as many cardrooms already meet the proposed requirements.

RESULTS OF ECONOMIC IMPACT ASSESSMENT/ANALYSIS Impact on Jobs/New Businesses: The Commission has determined that this regula- tory proposal will not have a significant impact on the creation of new jobs or businesses, the elimina- tion of jobs or existing businesses, or the expansion of businesses in California. For this purpose, the federal Small Business Administration (SBA) definition of a small business was utilized. An average annual gross gaming revenue of $30 million per year was used as the threshold, as specified in the North American In- dustry Classification System Code

section 713210 and referenced by the SBA in

Section 121.201 of Title 13

Part 121 of the Electronic Code of Federal Regulations. Cardroom business licensees having a three–year av- erage annual gross gaming revenue of no more than $30 million were identified as small businesses. Due to mandatory closures resulting from the COVID–19

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 414 pandemic, 2019 was the last full year of operation; in- formation from 2020 and 2021 was not used. The proposed action may result in a small increase in the number of surveillance jobs available at Tier IV cardroom business licensees due to requiring Tier IV cardroom business licensees to establish a separate surveillance unit that is independent and apart from the security department and staffed with personnel that have no other gambling–related duties.

Howev- er, the increase in jobs is difficult to quantify because many Tier IV cardroom business licensees already meet the proposed requirement. Additionally, due to the limited number of gaming tables a Tier IV card- room business licensee is allowed to operate (31 to 60 gaming tables), the statewide increase in new jobs would not be significant. Benefits of Proposed Regulation: The proposed regulation will benefit cardroom busi- ness licensees in further safeguarding their assets, protecting patrons and their property, while maintain- ing the integrity of controlled gambling.

The proposal will also increase public trust in gaming throughout California. For all cardroom business license Tiers, requiring digital surveillance recordings be captured, recorded, copied, and stored with sufficient clarity will better assist the Bureau and local law enforcement in conducting investigations. Health and Welfare of California Residents: It has been determined that the proposed action will protect the health, safety, and general welfare of Cal- ifornia residents by aiding and preserving the integri- ty of the controlled gambling industry.

Strengthening the capabilities of cardroom surveillance and security controls will provide an additional deterrent against illegal activity, better protect patron assets, and better assist the Bureau and other law enforcement agencies in conducting thorough investigations. Worker Safety: It has been determined that the proposed action will not affect worker safety because it does not pertain to working conditions or worker safety issues. State’s Environment: It has been determined that the proposed action will not affect the state’s environment because it does not pertain to environmental issues.

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

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

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

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

Contact Persons: All comments and inquiries concerning the sub- stance of the proposed action should be directed to the following primary contact person: Alex Hunter, Legislative and Regulatory Specialist Legislative and Regulatory Affairs Division California Gambling Control Commission 2399 Gateway Oaks Drive, Suite 220, Sacramento, CA 95833–4231 Telephone: (916) 263–1301 Fax: (916) 263–0499 Email: ahunter@cgcc.ca.gov Requests for a copy of the Initial Statement of Rea- sons, proposed text of the regulation, modified text of the regulation, if any, or other technical information upon which the proposed action is based should be di- rected to the following backup contact person:

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 415 Joshua Rosenstein, Legislative and Regulatory Specialist Legislative and Regulatory Affairs Division California Gambling Control Commission 2399 Gateway Oaks Drive, Suite 220, Sacramento, CA 95833–4231 Telephone: (916) 274–5823 Fax: (916) 263–0499 Email: jrosenstein@cgcc.ca.gov Website Access: Materials regarding this proposed action are also available on the Commission’s Website at www .cgcc. ca.gov. TITLE 4.

DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL The Department of Alcoholic Beverage Control (ABC) proposes to adopt the proposed regulations de- scribed below after considering all comments, objec- tions, and recommendations regarding the proposed action. PUBLIC HEARING ABC has not scheduled a public hearing on this proposed action. However, the department will hold a hearing if it receives a written request for a public hearing from any interested person, or his or her au- thorized representative, no later than 15 days before the close of the written comment period.

WRITTEN COMMENT PERIOD Any interested person, or his or her authorized rep- resentative, may submit written comments relevant to the proposed regulatory action to ABC. The written comment period closes at 12:00 p.m. on 05/23/2023. ABC will consider only comments received at ABC Headquarters by that time. Submit comments to: Law and Policy Unit Department of Alcoholic Beverage Control 3927 Lennane Drive, Suite 100 Sacramento, CA 95834 Comments may also be submitted by email to rpu@ abc.ca.gov, please include “Music Venue Licenses” in the subject line of your email.

AUTHORITY AND REFERENCE Business and Professions Code

section 23552 au- thorizes ABC to adopt these proposed regulations to implement the new law. The proposed regulations implement, interpret, and make specific Business and Professions Code sections 23550, 23552, 23958, 25616, and 25753. INFORMATIVE DIGEST/ POLICY STATEMENT OVERVIEW ABC is statutorily and constitutionally responsible for the administration, issuance, oversight, and en- forcement of all alcoholic beverage licenses through- out the state.

There are many varied and different types of licenses, each with differing requirements for issuance, and they confer privileges for certain actions that are illegal without a proper license. SB 793 creat- ed a new license type called a “Music Venue License” which allows for a “Music Entertainment Facility” to be licensed to serve beer, wine, and spirits to patrons two hours prior to, during, and one hour after a live performance, subject to

Section 25631 of the Business and Professions Code. It allows this privilege without the requirement that food be served while also allow- ing for minors to be on the licensed premises while alcoholic beverages are served. This combination of privileges and requirements, or anything similar, has never been available pursuant to any previous alcohol- ic beverage license. SB 793 also created an exchange program to allow certain license holders to exchange their current license for one of the new music venue licenses.

Although standards of privileges, based on live performances, and requirements for the license are established in the statutory language, there are some provisions that are ambiguous and require clari- fication through regulatory action. ABC seeks to clarify and make plain ambiguities in the statutory language established by SB 793 which creates the new Music Venue License and the require- ments to hold one at a licensed premises, as well as the exchange process. The Legislature anticipated the need for ABC to promulgate regulations by giv- ing ABC express statutory authority to do so.

ABC, through this regulatory action, will clarify to the pub- lic, licensees, potential licensees, and ABC staff, how a Music Venue License should be overseen to ensure only a qualifying “Music Entertainment Facility” is issued a Music Venue License, and that the licensed premises must continue to act in a bona fide man- ner when serving alcoholic beverages only prior to, during, and after a live event as outlined in Business and professions Code sections 23550 and 23552.

Summary of Existing Laws and Regulations Business and Professions Code sections 23300 and 23355 provide that any person seeking to engage in the manufacture or sale of alcoholic beverages must hold a license and that they may only exercise such privileges as are established by the Legislature for each specific license type at the premises for which the license is is- sued. The Legislature has established over 75 different

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 416 license types pertaining to the manufacture, distribu- tion, and retail sale of alcoholic beverages, each with their own requirements and privileges within Division 9 of the Business and Professions Code (ABC Act). Business and Professions Code

section 23958 re- quires the Department to conduct a thorough inves- tigation to determine if an applicant and proposed licensed premises meet the qualifications and require- ments for the requested license type and to ensure that the normal operation of the licensed premises does not negatively impact the public welfare and morals. Business and Professions Code Division 9,

Chapter 7, commencing with

section 24200, establishes ABC’s authority to take disciplinary actions against licenses where a violation of the ABC Act or Title 4, Division 1 of the California Code of Regulations (ABC Regula- tions) occurs. The keeping of certain records pertain- ing to the operation of a licensed business and provid- ing such records to the Department in accordance with its regulatory oversight obligations are required pur- suant to sections 25616 and 25753. The Department may suspend or revoke a license for violations of the ABC Act, among other things.

With the addition of a new license type created by the Legislature, the existing ABC Act and ABC reg- ulations regarding applications, licensing, oversight, and enforcement all apply to the new license type. Al- though the license is new, the process for the applica- tion, issuance, due process of ABC decisions, and on- going oversight of issued licenses remains unchanged.

Summary of Effect of Proposed Action on Existing Laws and Regulations ABC must ensure that all aspects of the new music venue license are consistent with the rest of the ABC Act and that ambiguities on matters such as expiration dates for an exchanged license, the exchange program procedures, or any terms in need of further clarifica- tion are all clarified prior to the issuance of the new license type.

The proposed regulatory action will en- sure public notice of ABC actions regarding applica- tions for the new license type and how the privileges and requirements, where ambiguous in statute, will be determined by ABC for the issuance and oversight of the new licenses.

Specifically, the proposed regula- tion clarifies how ABC will administrate exchanges of existing licenses for the new license, how license expiration dates will be affected in an exchange, and how ABC will determine compliance with the statuto- ry requirements (such as the required equipment, what constitutes a “live performance,” and what “paid tick- ets or cover charges” are). Comparable Federal Statute or Regulations The ABC has determined that this proposed regu- lation does not have a comparable federal statute or regulation.

Policy Statement Overview This regulation promotes ABC’s mission, which is to protect the health, safety, and welfare of the public while implementing legislatively mandated licenses to allow for the public manufacture, sale, and consump- tion of alcoholic beverages. With new license types, ABC must endeavor to protect the health, safety, and welfare of the public, and ensure that the statu- torily mandated requirements and privileges for the new license type are effectively issued and overseen by ABC.

When statutory requirements and privileg- es of licensees are not plain or require clarity, ABC must establish standards by regulation to ensure the public, licensees, and ABC staff are aware of unified statewide standards for implementation, issuance of licenses, and oversight of conduct by licenses for any potential enforcement. Benefits Anticipated The proposed regulatory action will ensure the public, licensees, and ABC staff are aware of unified statewide standards for issuance of this new license type and for licensee conduct.

Clarity and uniformi- ty of implementation of the new music venue license type will save resources and provide clarity in the li- censing and oversight processes of ABC. Determination of Inconsistency/Incompatibility with Existing State Regulations ABC reviewed the existing state regulations and statutes currently enforced and has determined that this proposed regulatory action is not inconsistent or incompatible with existing state regulations. Effect Upon Small Businesses in California The ABC has determined that this proposed regu- latory action does not target small businesses.

While some ABC licensees are small businesses, and some potential Music Venue License may be issued to small businesses, this regulation applies to all license ex- changes for Music Venue Licenses, or any “Music Entertainment Venue” that is originally licensed pur- suant to a new application for a Music Venue License. Disclosures Regarding the Proposed Action The ABC has made the following initial determinations: 1. Mandate on local agencies or school districts: None. 2. Costs or Savings to any state agency: None. 3.

Cost to any local agency or school district that is required to be reimbursed by the state: None. 4. Other nondiscretionary cost or savings imposed on local agencies: None. 5. Cost or savings in federal funding to the state: None. 6. Cost impacts on housing costs: None.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 417 Determination of Statewide Adverse Economic Impact on Business The ABC has made an initial determination the adoption of this regulation will not have a significant, statewide adverse economic impact directly affecting business, including the ability of California businesses to compete with businesses in other states. There is no foreseeable impact on businesses based on the policy laid out in the proposed regulation.

Results of the Economic Impact Assessment: ABC concludes that it is (1) unlikely that the propos- al will eliminate any jobs, (2) that the proposal will not likely create additional jobs, (3) that the proposal will not likely create additional new businesses, (4) unlike- ly that the proposal will eliminate any existing busi- nesses, and (5) unlikely that the proposed regulations will result in the expansion of businesses currently doing business within the state, (6) unlikely that the proposal will impact worker safety.

As stated above under “Benefits Anticipated,” the implementation of the proposed new music venue license regulations will benefit the health, welfare and public safety of California residents through the uniform statewide standards for issuance of licenses and oversight of conduct by licenses for any potential enforcement. ABC has determined this proposed regulation will have no effect upon the environment.

Description of All Economic Impacts That a Representative Private Person or Business Would Necessarily Incur in Reasonable Compliance with the Proposed Action The ABC has made an initial determination that the adoption of this regulation will have negligible eco- nomic impact on private persons or businesses. There is no foreseeable impact on private persons or busi- nesses based on the process laid out in the proposed regulation. Thus, ABC is not aware of any cost im- pacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action.

Required Reports from Businesses The proposed regulation does not require any re- ports from ABC licensees or any other business. It does require the keeping of records in compliance with the ABC Act to ensure licensed premises con- tinue to qualify as a music entertainment facility after the license is issued.

Consideration of Alternatives ABC must determine that no reasonable alternative considered by the department or that has otherwise been identified and brought to the attention of the de- partment would be more effective in carrying out the purpose for which the action is proposed, or would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost–effective to affected private persons and equally effective in implementing the statutory policy or oth- er provision of law.

ABC invites interested persons to present statements or arguments with respect to alter- natives to the proposed regulation during the written comment period. Agency Contact Person Inquiries concerning the proposed regulatory action may be directed to the agency representative Robert de Ruyter, Assistant General Counsel, (916) 419–8958, (designated backup contact) Sarah Easter, Associate Governmental Program Analyst, Law and Policy Unit, (916) 823–1310 or via email at rpu@abc.ca.gov. Availability of Documents The ABC prepared an Initial Statement of Reasons for the proposed action.

Copies of the Initial Statement of Reasons, and the full text of the proposed regula- tions may be accessed on ABC’s website listed below or may be obtained from the Law and Policy Unit, De- partment of Alcoholic Beverage Control, 3927 Len- nane Drive, Suite 100, Sacramento, CA 95834, on or after April 7th, 2023. ABC staff has compiled a record for this rulemak- ing action, which includes all the information upon which the proposal is based. This material is available for inspection upon request to the contact persons.

Change to the Proposed Full Text of the Regulation Action If there is any change to the proposed full text of the regulation action in a substantial, or sufficiently relat- ed way, it will be made available for comment for at least 15 days prior to the date on which the department adopts the resulting regulation. Final Statement of Reasons Availability Upon its completion, the Final Statement of Reasons will be available, and copies may be requested, from the department contact persons in this notice or may be accessed on ABC’s website listed below.

Internet Access This notice, the Initial Statement of Reasons, and all subsequent regulatory documents, including the Final Statement of Reasons, when completed, are available on ABC’s website for this rulemak- ing at https://www.abc.ca.gov/law–and–policy/ regulations–rulemaking/ . TITLE 13. DEPARTMENT OF MOTOR VEHICLES The Department of Motor Vehicles (department) proposes to amend Sections 160.00, 160.02, 160.04, and 161.06 in

Article 3.1,

Chapter 1, Division 1, Title 13 of the California Code of Regulations, regarding the Specialized License Plate Programs to implement

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 418 provisions relating to sections 4466, 4609, 4850, 4851, 5024, 5105, 5155, 5156, 5159, and 5160 of the Vehicle Code. PUBLIC HEARING A public hearing regarding this proposed regulato- ry action is not scheduled. However, a public hearing will be held if any interested person or their duly au- thorized representative requests a public hearing to be held relevant to the proposed action by submitting a written request to the contact person identified in this notice no later than fifteen (15) days prior to the close of the written comment period.

DEADLINE FOR WRITTEN COMMENTS Any interested party or their duly authorized rep- resentative may submit written comments relevant to the proposed regulations to the contact person identi- fied in this notice. All written comments must be re- ceived at the department no later than May 23, 2023, the final day of the written comment period, in order for them to be considered by the department before it adopts the proposed regulation. AUTHORITY AND REFERENCE The department proposes to adopt these regulations under the authority granted by Vehicle Code

section 1651 and 5110 in order to implement, interpret, or make specific Vehicle Code sections 5155, 5156, and 5159. INFORMATIVE DIGEST/ POLICY STATEMENT OVERVIEW License plate designs and messages are government speech, and the government may convey any message it selects in that communication. In 2015, the U.S. Su- preme Court clarified that the designs a State places on license plates are government speech. In Walker v. Texas Div., Sons of Confederate Veterans (Jun. 18, 2015) 576 U.S. 200, the U.S.

Supreme Court conclud- ed there is no First Amendment right in any person permitting them to dictate the content of license plate design images and statements. Neither the Walker case, nor this rulemaking, concern the First Amend- ment implications of personalization of a registration number. The department registers vehicles and authoriz- es their use on the road by assigning a registration number to each vehicle and producing a license plate displaying that registration number (Veh. Code sec- tion 4850). The license plate must be attached to the vehicle for it to lawfully operate on California public roads.

The visibility and placement of the license plate bearing this registration number are critical to law enforcement’s efforts to maintain driver compliance with the rules of the road. Also, the visibility of the registration number is a critical component of bridge and toll road authorities’ ability to automate revenue collection. The visibility of the registration number is also relied on by parking facilities across the state to ensure fee collection.

Additionally, the license plate has become a source of revenue for many State agencies and public institu- tion programs through sponsorship of a Specialized license plate (SLP). The Specialized license plate pro- grams raise needed funds by displaying a desirable decorative image on the license plate, in addition to the registration number for a fee. Vehicle registrants will pay an extra fee for the decorative image, know- ing they are contributing to specified public programs. For many years, the California Legislature has cre - ated various license plate design programs to fund specific State endeavors.

The current program is the Specialized License Plate (SLP) program under which any state agency may apply to the department to have a license plate series design created (Division 3, Chap- ter 1,

Article 8.6, Vehicle Code sections 5151–5169.) A minimum level of participation by the public is required to start up and maintain the availability of a Specialized license plate program and expenditure rules and reporting requirements apply to the spon- soring agency. The minimum level of participation, established in the Vehicle Code, is met when 7500 unique vehicle registrants pay the SLP fee and “en- roll” in the proposed license plate program.

This level of enrollment participation must occur during the 12– month (or up to 24–months, if requested) period after the sponsoring agency’s initial application is approved by the department. This requirement serves to moti- vate a sponsoring agency to market the license plate and demonstrate its popularity and long–term viabili- ty before the expense of producing the license plates is incurred by the department. An agency sponsor who fails to secure the requisite participation level will not successfully create a license plate program and will be required to refund the SLP fee to all enrollees.

Only after the participation level reaches the 7500– enrollee level will the department develop needed pro- gramming in the license plate production system to produce the license plate and assign the registration number for manufacture at the production facility. All revenue generated from the sale of a Specialized li- cense plate, less department costs in administering the license plate program is deposited into the Specialized License Plate Fund established in Vehicle Code sec- tion 5157. Details of the plate sponsorship application process are delegated to the department in the SLP program legislation.

In 2017, the department adopted an ini-

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 419 tial set of regulations setting forth the information an agency must provide to the department in its applica- tion (OAL #2017–1013–08.) Those rules resulted in a clear and streamlined process State agencies and other license plate program sponsors, such as colleges and universities, can follow to establish a license plate pro- gram. Some changes are being proposed at this time to further enhance the SLP program.

These proposals will expand the design options available to State agen- cy sponsors, add clarity to potential enrollee commu- nications, and improve department oversight activity by requiring more detailed expenditure reports. ANTICIPATED BENEFITS OF THE PROPOSED REGULATION First, regarding annual financial reporting, the department has received reports that are lacking in detail and inadequate for oversight purposes.

Specif- ically, some reports just state “administrative expens- es” without any additional details which prevents the department from reviewing the activities undertaken that a sponsor determines to be allowable “adminis- trative” expenses. To conduct a meaningful oversight review of the report, the department needs added de- tails such as the amount spent on marketing, website advertising, staff time to promote the program, etc. to be included in the report. Vehicle Code

section 5159 in conjunction with

section 5160 requires the department to suspend a SLP program when administrative costs exceed 25% of plate program revenue. The revised regulation requires the sponsor to provide the need- ed details in its annual report so that the department can accurately exercise its oversight duty regarding a SLP program that fails to achieve the legislative pur- pose, which is to raise revenue for agency sponsored programs. Second, this proposal permits the use of intellectual property, i.e., trademarked or copyrighted images, as part of a SLP design.

The previous concerns with us- ing such images on license plate designs arose from past difficulties State agency sponsors faced in obtain- ing adequate licensing authority for use of intellectual property on a license plate. For that reason, the depart- ment adopted a rule requiring legislative authorization to use privately owned images on a SLP.

However, the success of the “Snoopy” license plate, which incor- porates intellectual property pursuant to appropriate licensing agreements, shows that the risks associated with the department approving license plate designs containing intellectual property can be adequately re- duced when appropriate licensing agreements are in place. The “Snoopy” license plate experience shows that the appeal of license plates bearing copyrighted/ trademarked images is high and increases the revenue potential for sponsor agencies’ programs.

Finally, regarding the marketing materials a SLP sponsor develops to garner interest and enrollment in their SLP program, the department has continued to field customer questions arising out of inaccurate or incomplete marketing materials used by license plate sponsors during the initial enrollment period. Under the current regulations, the sponsor need only provide the department with a marketing plan. This require- ment has proven inadequate to generate efficient en- rollment.

By requiring a SLP sponsor to develop and submit all marketing materials to the department as part of their application process, the department can provide meaningful feedback related to the marketing materials, based on previous experience, to the spon- sor before they are put into use. CONSISTENCY AND COMPATIBILITY WITH STATE REGULATIONS The department conducted a review of other state regulations and has concluded there are no other reg- ulations that establish plate sponsor guidelines for the special interest or specialized license plate pro- grams.

Therefore, the proposed regulations are nei- ther inconsistent nor incompatible with existing state regulations. COMPARABLE FEDERAL STATUTES OR STATE REGULATIONS The proposed regulations are not mandated by fed- eral law or regulations. DOCUMENTS INCORPORATED BY REFERENCE There are no documents incorporated by reference.

ECONOMIC AND FISCAL IMPACT DETER MI NATIONS The department has made the following initial de- terminations concerning the proposed regulatory action: ● Cost or Savings to Any State Agency: None. ● Other Non–Discretionary Cost or Savings to Local Agencies: None. ● Costs or Savings in Federal Funding to the State: None. ● Effects on Housing Costs: None. ● Cost to any local agency or school district re - quiring reimbursement pursuant to Government Code

section 17500 et seq.: None. ● Cost Impact on Representative Private Persons or Businesses: The department is not aware of

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 420 any cost impacts that a representative private per- son or business would necessarily incur in rea- sonable compliance with the proposed action. ● Small Business Impact : This proposed action may impact small businesses. ● Local Agency/School District Mandate: The pro- posed regulatory action will not impose a man- date on local agencies or school districts, or a mandate that requires reimbursement pursuant to

Part 7 (commencing with

Section 17500) of Division 4 of the Government Code. ● Significant statewide adverse economic impact directly affecting businesses, including the abil - ity of California businesses to compete with busi- nesses in other states : The department has made the initial determination that this action will not have a significant statewide adverse econom- ic impact directly affecting businesses nor will it impact the ability of California businesses to compete with businesses in other states.

RESULTS OF THE ECONOMIC IMPACT STATEMENT The department has made the following determina- tions when assessing the economic impact associated with this proposed regulation: ● Creation or elimination of jobs or creation of new businesses or elimination of existing busi- nesses within the State of California: As these proposed regulations for Specialized License Plates make clarifying amendments, the depart- ment has determined that this proposed action will neither create nor eliminate jobs within the State of California, nor will the proposal create new businesses or eliminate existing businesses within California. ● The Expansion of Businesses Currently Doing Business Within the State of California: These regulations are unlikely to expand businesses within the State of California. ● Benefits of the Regulations to the Health and Welfare of California Residents, Worker Safety, and the State’s Environment: T hese pro- posed regulations refine, the application process- es a state agency must complete for Specialized License Plates and make clarifying amendments.

As a result, this action is unlikely to produce ben- efits to worker safety or the State’s environment. However, the welfare of California residents may benefit when applicants for a Special Interest or Specialized license plate are clear on how to ap- ply and the department is able to process those applications expediently and accurately. PUBLIC DISCUSSIONS OF PROPOSED REGULATIONS A pre–notice workshop, pursuant to Government Code

section 11346.45, is not required because the is- sues addressed in the proposal are not so complex or large in number that they cannot easily be reviewed during the comment period.

ALTERNATIVES CONSIDERED 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, or would be as effective and less burdensome to affect- ed private persons than the proposed action, or would be more cost–effective to affected private persons and equally effective in implementing the statutory policy or other provisions of law.

CONTACT PERSON Any inquiries or comments concerning the pro- posed rulemaking action may be addressed to: Tracy Brazil, Regulations Analyst Department of Motor Vehicles Legal Affairs Division P .O.

Box 932382, MS C–244 Sacramento, CA 94232–3820 Any inquiries or comments concerning the pro- posed rulemaking action requiring more immediate response may use: Telephone: (916) 657–6469 Facsimile: (916) 657–6243 Email: LADRegulations@dmv.ca.gov In the event the contact person is unavailable, in- quiries should be directed to the following back–up person: Shelly Johnson Marker, Chief of Staff Department of Motor Vehicles Telephone: (916) 657–6469 A V AILABILITY OF STATEMENT OF REASONS AND TEXT OF PROPOSED REGULATIONS The department has prepared an Initial Statement of Reasons for the proposed regulatory action and has available all the information upon which the proposal is based.

The contact person identified in this notice shall make available to the public upon request the Ex-

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 421 press Terms of the proposed regulatory action using underline or italics to indicate additions to, and strike- out to indicate deletions from the California Code of Regulations. The contact person identified in this notice shall also make available to the public, upon request, the Final Statement of Reasons and the location of pub- lic records, including reports, documentation and other materials related to the proposed action.

In addition, the above–cited materials (the Notice of Proposed Regulatory Action, the Initial State- ment of Reasons, and Express Terms) may be ac- cessed at https://www.dmv.ca.gov/portal/about– the–california–department–of–motor–vehicles/ california–dmv–rulemaking–actions. A V AILABILITY OF MODIFIED TEXT Following the written comment period, and the hearing if one is held, the department may adopt the proposed regulations substantially as described in this notice.

If modifications are made which are sufficient- ly related to the originally proposed text, the fully modified text, with changes clearly indicated, shall be made available to the public for at least 15 days prior to the date on which the department adopts the resulting regulations. Request for copies of any modified regu- lations should be addressed to the department contact person identified in this notice. The department will accept written comments on the modified regulations for 15 days after the date on which they are first made available to the public. TITLE 17.

DEPARTMENT OF PUBLIC HEALTH CCLHO PUBLIC COMMENT PERIOD LIMIT (DPH–22–06–00013) Notice is hereby given that the California Depart- ment of Public Health (Department) is proposing the regulation described below. This notice of proposed rulemaking commences a rulemaking to make the regulations permanent after considering all com- ments, objections, and recommendations regarding the regulation.

PUBLIC PROCEEDINGS The Department is conducting a 45–day written public proceeding during which time any interested person or such person’s duly authorized representative may present statements, arguments or contentions (all of which are hereinafter referred to as comments) rele- vant to the action described in the Informative Digest/ Policy Statement Overview

section of this notice. To request copies of the regulatory proposal in an alternate format, please write or call: Veronica Rollin, Office of Regulations, 1415 L Street Suite 500, Sacra- mento, CA 95814, at (279) 217–0836, email to veronica. rollin@CDPH.ca.gov or use the California Relay Ser - vice by dialing 711. PUBLIC HEARING A public hearing has not been scheduled for this rulemaking. However, the Department will conduct a public hearing if a written request for a public hearing is received from any interested person, or his or her authorized representative, no later than 15 days prior to the close of the written comment period, pursuant to Government Code

Section 11346.8. WRITTEN COMMENT PERIOD Written comments pertaining to this proposal, re- gardless of the method of transmittal, must be received by Office of Regulations by May 22, 2023, which is hereby designated as the close of the written comment period. Comments received after this date will not be considered timely. Written comments must be submitted as follows: 1. By email to: regulations@cdph.ca.gov.

It is re - quested that email transmission of comments, particularly those with attachments, contain the regulation package identifier “DPH–22–06– 00013” in the subject line; to facilitate timely identification and review of the comment; 2. By fax transmission to: (916) 636–6220; 3. By postal service or hand delivered to: California Department of Public Health, Office of Regulations, 1415 L Street, Suite 500, Sacramento, CA 95814.

All comments, including email or fax transmis- sions, should include the regulation package identifier, DPH–22–06–00013 “CCLHO Public Comment Pe- riod Limit,” along with your name and your mailing address or email address in order for the Department to provide copies of any notices for proposed changes to the regulation text on which additional comments may be solicited. AUTHORITY AND REFERENCE The Department proposes to adopt the regulation sections identified under the authority provided in sections 100925 and 100950 of the Health and Safe- ty Code (HSC).

This proposal implements, interprets, or makes specific, Sections: 11121 and 11125.7 of the Government Code (GC).

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 422 INFORMATIVE DIGEST/ POLICY STATEMENT OVERVIEW

Summary of Proposal The California Conference of Local Health Officers (CCLHO), administered by the California Department of Public Health (CDPH), proposes a new Chapter, 14 to Division 1 of Title 17, Public Participation at Meetings, to specify meeting processes in regulation to make meetings more efficient and establish a clear set of expectations for CCLHO, stakeholders, and the public. Problem Statement Currently, CCLHO does not have regulations on public comment and instead relies on existing in- formal meeting processes. The proposed addition of

Chapter 14,

Article 1,

section 40100 will allow CCLHO to establish rules and procedures governing public comment at meetings of CCLHO and its com- mittees, subject to the Bagley–Keene Open Meeting Act (Bagley–Keene) (Government Code

section 11120 et seq.). All CCLHO meetings are subject to Bagley– Keene, which facilitates transparency of government activities and protects the rights of citizens to partic- ipate in state government deliberations. The existing law requires that a state body must provide an oppor- tunity for members of the public to directly provide comment on each agenda item for discussion or con- sideration, with specific exceptions.

While ensuring the broad public right to be heard at public meetings, Bagley–Keene implicitly recognizes the need for effi- ciency in the conduct of the people’s business through limitations on public comment and through the estab- lishment of meeting frameworks. These practices are reasonable and have been adopted by other govern- mental bodies and upheld by California courts. Public comment and overall meeting frameworks promote transparency of process and efficiency of CCLHO and committee meetings to help ensure the public’s busi- ness is not delayed or incomplete. The proposed addi- tion of

Chapter 14,

Article 1,

section 40100 will ensure that CCLHO and its committees are able to conduct transparent, efficient, and orderly meetings. OBJECTIVES (GOALS) OF THE REGULATION Anticipated Benefits The proposed addition of

Chapter 14,

Article 1 will allow CCLHO to establish various rules regarding public hearing procedures, including public com- ment limitations allocated to individual speakers, and provide clarity on organization and order. This will ensure that all members of the public are afforded an equal opportunity to address CCLHO during public comment. It will also provide clarity about the rules applicable to public comment and serve the public in- terest in conserving time at CCLHO meetings, ensur - ing that CCLHO is able to complete the work on its agendas in a reasonably efficient manner.

Evaluation as to Whether the Proposed Regulations Are Inconsistent or Incompatible with Existing State and Federal Regulations The Department evaluated whether the regulations are inconsistent or incompatible with existing state regulations. This evaluation included a review of the Department’s existing state regulations and those regulations specific to CCLHO regulations.

An inter- net search of other state agency regulations was also performed, and it was determined that no other state agency regulation addressed the same subject matter, and that this proposal is not inconsistent or incompati- ble with other state regulations. Therefore, the Depart- ment has determined that the regulations is not incon- sistent or incompatible with existing state regulations. DOCUMENTS INCORPORATED BY REFERENCE None. MANDATED BY FEDERAL LA W OR REGULATIONS None. OTHER STATUTORY REQUIREMENTS None. LOCAL MANDATE None.

DISCLOSURES REGARDING THE PROPOSED ACTION Fiscal Impact Estimates Cost to any local agencies or school districts that must be reimbursed pursuant to

Section 17561 of Government Code: None. The cost or savings to any state agency None. Other Nondiscretionary Cost or Savings Imposed on Local Agencies: None. Cost or Savings in Federal Funding to the State: None. Housing Costs The Department has determined that the proposed reg ulations would not have an impact on housing costs.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 423 Statewide Adverse Economic Impact Directly Affecting Business, Including Ability to Compete The Department has made an initial determination that the regulations would not have a statewide ad- verse economic impact directly affecting businesses, including the ability of California businesses to com- pete with businesses in other states. Results of the Economic Impact Assessment The Department has determined that the proposed regulations would not affect the following: A. The creation or elimination of jobs within the state. B.

The creation of new businesses or the elimination of existing businesses within the state. C. The expansion of businesses currently doing business within the state. D. The adoption of the proposed regulation will ben- efit the health and welfare of California residents by facilitating participation by members, stake- holders, and other members of the public by es- tablishing a regulation over public comment and will ensure that CCLHO and its committees can complete their work efficiently. These regula- tions do not benefit worker safety or the state’s environment.

Cost Impacts on Representative Person or Business The agency is not aware of any cost impacts that a representative private person or business would nec- essarily incur in reasonable compliance with the pro- posed action. Business Reporting Requirements None. Effect On Small Business The proposed regulation will not have an effect on small business as it only pertains to the length of the public comment period for the CCLHO. Specific Technologies or Equipment None. Alternatives Considered In accordance with Government Code

Section 11346.5(a)(13), 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 effec- tive in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private persons than the proposed action or would be more cost effective to affected private per- sons and equally effective in implementing the statu- tory policy or other provision of law.

The Department itself has made an initial determi- nation that there are no acceptable alternatives to the regulations to protect the public interest. However, the Department invites interested persons to present al- ternatives with respect to the proposed regulation ei- ther during the public comment period or at the public hearing (if scheduled). TECHNICAL, THERETICAL, AND/OR EMPIRICAL STUDIES, REPORTS OR DOCUMENTS RELIED UPON None. CONTACT PERSON Inquiries regarding the substance of the proposed regulations described in this notice may be directed to Jake Hanson of the CCLHO.

All other inquiries concerning the action described in this notice may be directed to Veronica Rollin, Of- fice of Regulations, at (279) 217–0836, or to the desig- nated backup contact person, Christy Correa at (279) 217–0674. In any inquiries or written comments, please identify the action by using the Department regu- lation package identifier, DPH–22–06–00013.

A V AILABILITY STATEMENTS The Department has prepared and has available for public review an initial statement of reasons for the proposed regulations, all the information upon which the proposed regulations are based, and the text of the proposed regulations. The Office of Regulations, 1415 L Street, Suite 500, Sacramento, CA 95814, will be the custodian of public records, including reports, docu- mentation, and other material related to the proposed regulations (rulemaking file).

In order to request that a copy of this public notice, the regulation text, and the initial statement of reasons or alternate formats for these documents be mailed to you, please call (279) 217–0836 (or the California Relay Service at 711), send an email to regulations@ cdph.ca.gov, or write to the Office of Regulations at the address previously noted. Upon specific request, these documents will be made available in Braille, large print, audiocassette, or computer disk.

The full text of any regulation which is changed or modified from the express terms of the proposed ac- tion will be made available by the Department’s Of- fice of Regulations at least 15 days prior to the date on which the Department adopts, amends, or repeals the resulting regulation. Final Statement of Reasons A copy of the final statement of reasons (when pre- pared) will be available upon request from the Office of Regulations.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 14-Z 424 INTERNET ACCESS Materials regarding the action described in this no- tice (including this public notice, the text of the pro- posed regulations, and the initial statement of reasons) that are available via the Internet may be accessed at the Department website by clicking on these links, in the following order: Decisions Pending & Opportu- nities for Public Participation, Proposed Regulations. TITLE 24.

BUILDING STANDARDS COMMISSION BSC 01/22 Notice is hereby given that the California Build- ing Standards Commission (CBSC) on behalf of it- self, proposes to adopt, approve, codify, and publish changes to building standards contained in the Cal- ifornia Code of Regulations (CCR), Title 24,

Part 1. The CBSC is proposing building standards related to public comment limits in the California Administra- tive Code. PUBLIC COMMENT PERIOD Reference: Government Code

Section 11346.5(a)(17). A public hearing has not been scheduled; howev- er, written comments will be accepted from April 7, 2023, until midnight on May 22, 2023. Comments may be submitted to CBSC via: e–Comment form: dgs.ca.gov/BSC/e–comments U.S. Mail postmarked no later than May 22, 2023: California Building Standards Commission Attention: Public Comments 2525 Natomas Park Drive, Suite 130 Sacramento, CA 95833 Note: Only comments received in an accessible for- mat will be viewable via CBSC’s website. Use the e– Comment form to ensure accessibility.

Any interested person, or his or her duly authorized representative, may request no later than 15 days prior to the close of the written comment period that a pub- lic hearing be held. The public will have an opportunity to provide writ- ten and oral comments regarding the proposed action on building standards at a public meeting to be con- ducted by CBSC to be scheduled at a date near the end of the current adoption cycle. A meeting notice will be issued announcing the date, time and location of the public meeting. POST–HEARING MODIFICATIONS TO THE TEXT OF THE REGULATIONS Reference: Government Code

Section 11346.5(a)(18). Following the public comment period, CBSC may adopt the proposed building standards substantially as proposed in this notice or with modifications that are sufficiently rela