REGISTER (Continued on next page) Time- Dated Material EDMUND G. BROWN, JR., GOVERNOR OFFICE OF ADMINISTRATIVE LAW 2018, NO. 39−Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW SEPTEMBER 28, 2018 PROPOSED ACTION ON REGULATIONS TITLE 2. FAIR POLITICAL PRACTICES COMMISSION Conflict−of−Interest Code — Notice File No. Z2018−0918−07 ........................................ 1687 Amendment Multi−County: Beaumont−Cherry Valley Water District TITLE 11. COMMISSION ON PEACE OFFICER STANDARDS AND TRAINING Amend Commission Regulation 1052 Requirements for Course Certification — Notice File No.

Z2018−0918−04 ................................................................ 1688 TITLE 13. AIR RESOURCES BOARD Heavy Duty Engine On−Board Diagnostic System Requirements — Notice File No. Z2018−0911−07 .......... 1690 TITLE 14. STATE MINING AND GEOLOGY BOARD Financial Assurance Cost Estimate Appeals — Notice File No. Z2018−0918−05 .......................... 1698 TITLE 14. STATE MINING AND GEOLOGY BOARD Inspections — Notice File No. Z2018−0918−06 .................................................... 1701 TITLE 15. DEPARTMENT OF CORRECTIONS AND REHABILITATION Flash Incarceration of Parolees — Notice File No.

Z2018−0918−10 .................................... 1705 TITLE 28. DEPARTMENT OF MANAGED HEALTH CARE Standard Prescription Drug Formulary Template — Notice File No. Z2018−0917−01 ...................... 1707 GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE Fish and Game Code

Section 1653 Consistency Determination Request for Miners Creek, Scott Valley, Siskiyou County, CA BDA Project (Tracking Number: 1653−2018−028−001−R1), Siskiyou County ............ 1720 DEPARTMENT OF FISH AND WILDLIFE Habitat Restoration and Enhancement Act Consistency Determination No. 1653−2018−025−R1, Lawrence Creek Off−Channel Pond 2.0 Project, Humboldt County ...................................... 1720

DEPARTMENT OF FISH AND WILDLIFE Habitat Restoration and Enhancement Act Consistency Determination No. 1653−2018−026−R1, Seldom Seen Diversion Fish Passage Improvement Project, Siskiyou County ............................. 1723 OCCUPATIONAL SAFETY AND HEALTH STANDARDS BOARD Public Meeting and Business Meeting ............................................................ 1725 DECISION NOT TO PROCEED EMPLOYMENT DEVELOPMENT DEPARTMENT Concerning Occupational Employment Statistics Survey (Previously Published in Notice Register 2017, No. 40−Z) ................................................................ 1725

SUMMARY OF REGULATORY ACTIONS Regulations filed with the Secretary of State ........................................................ 1725 Sections Filed, April 18, 2018 to September 19, 2018 ................................................ 1728 The California Regulatory Notice Register is an official state publication of the Office of Administrative Law containing notices of proposed regulatory actions by state regulatory agencies to adopt, amend or repeal regulations contained in the California Code of Regulations.

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

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

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1687 PROPOSED ACTION ON REGULATIONS Information contained in this document is published as received from agencies and is not edited by Thomson Reuters. TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION NOTICE IS HEREBY GIVEN that the Fair Political Practices Commission, pursuant to the authority vested in it by Sections 82011, 87303, and 87304 of the Gov- ernment Code to review proposed conflict−of−interest codes, will review the proposed/amended conflict−of− interest codes of the following: CONFLICT−OF−INTEREST CODE AMENDMENT MULTI−COUNTY: Beaumont−Cherry Valley Water District A written comment period has been established com- mencing on September 28, 2018, and closing on No- vember 12, 2018.

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

s) will be submitted to the Commission’s Executive Director for her review, unless any interested person or his or her duly autho- rized representative requests, no later than 15 days prior to the close of the written comment period, a public hearing before the full Commission. If a public hearing is requested, the proposed code(

s) will be submitted to the Commission for review. The Executive Director of the Commission will re- view the above−referenced conflict−of−interest code(s), proposed pursuant to Government Code Sec- tion 87300, which designate, pursuant to Government Code

Section 87302, employees who must disclose cer- tain investments, interests in real property and income. The Executive Director of the Commission, upon her or its own motion or at the request of any interested per- son, will approve, or revise and approve, or return the proposed code(

s) to the agency for revision and re− submission within 60 days without further notice. Any interested person may present statements, argu- ments or comments, in writing to the Executive Direc- tor of the Commission, relative to review of the pro- posed conflict−of−interest code(s). Any written com- ments must be received no later than November 12, 2018. If a public hearing is to be held, oral comments may be presented to the Commission at the hearing.

COST TO LOCAL AGENCIES There shall be no reimbursement for any new or in- creased costs to local government which may result from compliance with these codes because these are not new programs mandated on local agencies by the codes since the requirements described herein were mandated by the Political Reform Act of 1974. Therefore, they are not “costs mandated by the state” as defined in Govern- ment Code

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

REFERENCE Government Code Sections 87300 and 87306 pro- vide that agencies shall adopt and promulgate conflict− of−interest codes pursuant to the Political Reform Act and amend their codes when change is necessitated by changed circumstances. CONTACT Any inquiries concerning the proposed conflict−of− interest code(

s) should be made to Brianne Kilbane, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322−5660. A V AILABILITY OF PROPOSED CONFLICT OF INTEREST CODES Copies of the proposed conflict−of−interest codes may be obtained from the Commission offices or the re-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1688 spective agency. Requests for copies from the Commis- sion should be made to Brianne Kilbane, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322−5660. TITLE 11. COMMISSION ON PEACE OFFICER STANDARDS AND TRAINING Notice is hereby given that the Commission on Peace Officer Standards and Training (POST) proposes to amend regulations in Division 2 of Title 11 of the Cali- fornia Code of Regulations as described below in the In- formative Digest. A public hearing is not scheduled.

Pursuant to Government Code §11346.8, any interested person, or his/her duly authorized representative, may request a public hearing. POST must receive the written request no later than 15 days prior to the close of the public comment period. Public Comments Due by November 13, 2018.

Notice is also given that any interested person, or au- thorized representative, may submit written comments relevant to the proposed regulatory action by fax at (916) 227−4011 or by letter to: Commission on POST Attn: David Cheng 860 Stillwater Road, Suite 100 West Sacramento, CA 95605−1630 AUTHORITY AND REFERENCE This proposal is made pursuant to the authority vest- ed by Penal Code §13503 (authority of Commission on POST) and Penal Code §13506 (POST authority to adopt regulations). This proposal is intended to inter- pret, implement, and make specific Penal Code §13503(

e) which authorizes POST to develop and im- plement programs to increase the effectiveness of law enforcement, including programs involving training and education courses. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW In the spring of 2017, an internet survey and a series of workshops involving stakeholders was conducted to identify concerns with the POST course certification process. The survey and subsequent workshops exam- ined the course certification process in depth and found it to be unnecessarily detailed and rigid.

It was deter- mined that changes to the process would: — reduce the amount of time it took to certify a course — expand the types of certified professional training available to California law enforcement — provide flexibility to deliver adult centered learning — clarify presenters’ responsibilities for student and instructor safety In June of 2017, the Commission approved POST to conduct a 1−year Course Certification Pilot. The pilot incorporated recommended changes into the certifica- tion process and allowed volunteer participants to certi- fy courses with the new process.

After receiving certifi- cation of a course in the pilot program, the presenter completed a survey designed to measure “customer sat- isfaction” with the recommended changes. The survey results uniformly reflected a positive experience with the pilot. Participants experienced a significant reduc- tion in the amount of time and work required to certify a course and the ability to certify courses previously ex- cluded from certification. They expressed satisfaction with the reduced criteria for the hourly distribution schedules and the new certification types, Certification I and Certification II.

Certification II provided the op- portunity to use learning objectives and minimum top- ics in the expanded course outlines (ECO) instead of the traditional ECO to the third level of detail. The use of learning objectives and the reduced hourly criteria caused participants to comment on the flexibility this would provide them to focus on adult centered learning in the classroom. In addition to the above−mentioned changes, a safety attestation was developed to clarify presenters’ respon- sibilities regarding student and instructor safety in cour- ses that require manipulative skills.

The attestation is to be submitted in addition to a safety policy as part of the course certification process. The proposed amendments to Regulation 1052 re- flect the Course Certification Pilot Program process be- coming the standardized course certification method for every course except the basic course.

The specific benefits anticipated by the proposed amendments to the regulations will be shorter course certification times, certified professional training credit available for courses previously excluded, a tailored ap- proach to learning in the classroom, clarified presenter responsibilities for instructor and student safety, and the continued delivery of a high standard of training. These benefits will contribute to the increased effectiveness of law enforcement standards for peace officers in pre- serving peace, protection of public health and safety, and welfare of California.

During the process of developing these regulations and amendments, POST has conducted a search of any similar regulations on this topic and has concluded that

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1689 these regulations are neither inconsistent nor incompat- ible with existing state regulations. ADOPTION OF PROPOSED REGULATIONS Following the public comment period, the Commis- sion may adopt the proposal substantially as set forth without further notice, or the Commission may modify the proposal if such modifications remain sufficiently related to the text as described in the Informative Di- gest.

If the Commission makes changes to the language before the date of adoption, the text of any modified lan- guage, clearly indicated, will be made available at least 15 days before adoption to all persons whose comments were received by POST during the public comment pe- riod and to all persons who request notification from POST of the availability of such changes. A request for the modified text should be addressed to the agency of- ficial designated in this notice. The Commission will accept written comments on the modified text for 15 days after the date that the revised text is made available.

ESTIMATE OF ECONOMIC IMPACT Fiscal impact on Public Agencies including Costs or Savings to State Agencies or Costs/Savings in Federal Funding to the State: None. Non−Discretionary Costs/Savings to Local Agen- cies: None. Local Mandate: None. Costs to any Local Agency or School District for which Government Code §§ 17500−17630 require re- imbursement: None.

Significant Statewide Adverse Economic Impact Di- rectly Affecting California Businesses, including Small Business: The Commission on Peace Officer Standards and Training has made an initial determination that the amended regulations will not have a significant statewide adverse economic impact directly affecting California businesses, including the ability to compete with businesses in other states.

The Commission on Peace Officer Standards and Training has found that the proposed amendments will not affect California busi- nesses, including small businesses, because the Com- mission sets selection and training standards for law en- forcement which does not impact California business- es, including small businesses. Cost Impacts on Representative Private Persons or Businesses: The Commission on Peace Officer Stan- dards and Training 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.

Effect on Housing Costs: The Commission on Peace Officer Standards and Training has made an initial de- termination that the proposed regulations would have no effect on housing costs. RESULTS OF ECONOMIC IMPACT ASSESSMENT PER GOVERNMENT CODE § 11346.3(

b) The adoption of the proposed amendments of regula- tions will neither create, nor eliminate, jobs in the State of California, nor result in the elimination of existing businesses or create, or expand, businesses in the State of California. The proposed amendments of the regulations will in- crease the effectiveness of law enforcement standards for peace officers in preserving peace, protection of public health and safety, and welfare of California. Ad- ditionally, the proposed amendments make the regula- tions compliant with Penal Code § 13515.29 and § 13515.295.

There would be no impact that would af- fect worker safety or the state’s environment. COST IMPACT ON REPRESENTATIVE PRIV ATE PERSONS OR BUSINESSES The Commission 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.

CONSIDERATION OF ALTERNATIVES To take this action, the Commission must determine that no reasonable alternative considered by the Com- mission, or otherwise identified and brought to the Commission, would be more effective in carrying out the purpose for which the action is proposed; or would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost−effective to affected private persons and equally effective in implementing the statutory policy or other provision of law than the proposed action.

CONTACT PERSON Questions regarding this proposed regulatory action may be directed to Janna Munk or David Cheng, Com- mission on POST, 860 Stillwater Road, Suite 100, West Sacramento, CA 95605−1630, by phone at (916) 227−4829 or (916) 227−4855. General questions re- garding the regulatory process may be directed to Heidi Hernandez at (916) 227−2802. TEXT OF PROPOSAL Individuals may request copies of the exact language of the proposed regulations and of the initial statement

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1690 of reasons, and the information the proposal is based upon, from the Commission on POST at 860 Stillwater Road, Suite 100, West Sacramento, CA 95605−1630. These documents are also located on the POST Website at: http://www.post.ca.gov/regulatory−actions.aspx. A V AILABILITY AND LOCATION OF THE RULEMAKING FILE AND THE FINAL STATEMENT OF REASONS The rulemaking file contains all information upon which POST is basing this proposal and is available for public inspection by contacting the person(

s) named above. To request a copy of the Final Statement of Reasons once it has been prepared, submit a written request to the contact person(

s) named above. TITLE 13.

AIR RESOURCES BOARD NOTICE OF PUBLIC HEARING TO CONSIDER PROPOSED REVISIONS TO ON−BOARD DIAGNOSTIC SYSTEM REQUIREMENTS, INCLUDING THE INTRODUCTION OF REAL EMISSIONS ASSESSMENT LOGGING (REAL), FOR HEA VY−DUTY ENGINES, PASSENGER CARS, LIGHT−DUTY TRUCKS, AND MEDIUM−DUTY VEHICLES AND ENGINES The California Air Resources Board (CARB or Board) will conduct a public hearing at the time and place noted below to consider approving for adoption the proposed amendments to California’s Heavy Duty Engine On−Board Diagnostic System Requirements (HD OBD) and On−Board Diagnostic System Require- ments for Passenger Cars, Light−Duty Trucks, and Medium−Duty V ehicles and Engines (OBD II).

DATE: November 15, 2018 TIME: 9:00 a.m. LOCATION: California Environmental Protection Agency California Air Resources Board Byron Sher Auditorium 1001 I Street Sacramento, California 95814 This item will be considered at a meeting of the Board, which will commence at 9:00 a.m., November 15, 2018, and may continue at 8:30 a.m., on November 16, 2018. Please consult the agenda for the hearing, which will be available at least ten days before Novem- ber 15, 2018, to determine the day on which this item will be considered.

WRITTEN COMMENT PERIOD AND SUBMITTAL OF COMMENTS Interested members of the public may present com- ments orally or in writing at the hearing and may pro- vide comments by postal mail or by electronic submittal before the hearing. The public comment period for this regulatory action will begin on September 28, 2018. Written comments not physically submitted at the hear- ing must be submitted on or after September 28, 2018, and received no later than 5:00 p.m. on November 13, 2018.

CARB requests that when possible, written and email statements be filed at least 10 days before the hearing to give CARB staff and Board members addi- tional time to consider each comment. The Board also encourages members of the public to bring to the atten- tion of staff in advance of the hearing any suggestions for modification of the proposed regulatory action.

Comments submitted in advance of the hearing must be addressed to one of the following: Postal mail: Clerk of the Board California Air Resources Board 1001 I Street Sacramento, California 95814 Electronic submittal: http://www.arb.ca.gov/lispub/ comm/bclist.php Please note that under the California Public Records Act (Gov. Code, § 6250 et seq.), your written and oral comments, attachments, and associated contact infor- mation (e.g., your address, phone, email, etc.) become part of the public record and can be released to the pub- lic upon request.

Additionally, the Board requests but does not require that persons who submit written comments to the Board reference the title of the proposal in their comments to facilitate review. AUTHORITY AND REFERENCE This regulatory action is proposed under that authori- ty granted in Health and Safety Code, sections 38501, 38505, 38510, 39010, 39500, 39600, 39601, 39602.5, 40000, 43000.5, 43013, 43016, 43018, 43100, 43101, 43104, 43105, 43105.5, 43106, 43154, 43211, and 43212; and Engine Manufacturers Association v. Cali- fornia Air Resources Board (2014) 231 Cal.App.4th 1022.

This action is proposed to implement, interpret

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1691 and make specific sections 38501, 38505, 38510, 39002, 39003, 39010, 39018, 39021.5, 39024, 39024.5, 39027, 39027.3, 39028, 39029, 39031, 39032, 39032.5, 39033, 39035, 39037.05, 39037.5, 39038, 39039, 39040, 39042, 39042.5, 39046, 39047, 39053, 39054, 39058, 39059, 39060, 39515, 39600, 39601, 39602.5, 43000, 43000.5, 43004, 43006, 43013, 43016, 43018, 43100, 43101, 43102, 43104, 43105, 43105.5, 43106, 43150, 43151, 43152, 43153, 43154, 43155, 43156, 43204, 43211, and 43212 of the Health and Safety Code.

INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT OVERVIEW (GOV . CODE, § 11346.5, subd. (a)(3)) Sections Affected: Proposed amendments to Cali- fornia Code of Regulations (Cal. Code Regs.), title 13, sections 1968.2, 1971.1, and 1971.5. Documents Incorporated by Reference (Cal. Code Regs., tit. 1, § 20, subd. (c)(3)) The following documents and models would be in- corporated in the regulation by reference as specified by section: • EMFAC2014,

section 1971.5(b)(3)(A)(iv) • 40 Code of Federal Regulations (CFR) 86.004−28(i), August 21, 2018;

section 1971.1(d)(6) • 40 CFR 1065.680, August 21, 2018;

section 1971.1(d)(6) • International Organization for Standardization (ISO) 2575 “Road vehicles — Symbols for controls, indicators and tell−tales,” July, 2010;

section 1971.1(h)(1.12) • SAE International (SAE) J1699−3 — “Vehicle OBD II Compliance Test Cases,” July, 2017;

section 1971.1(h)(1.9) • SAE J1930 “Electrical/Electronic Systems Diagnostic Terms,

Definitions, Abbreviations, and Acronyms — Equivalent to ISO/TR 15031−2,” March, 2017;

section 1971.1(h)(1.1) • SAE J1930−DA “Electrical/Electronic Systems Diagnostic Terms,

Definitions, Abbreviations, and Acronyms Web Tool Spreadsheet,” March, 2017;

section 1971.1(h)(1.1.1) • SAE J1939 “Serial Control and Communications Heavy Duty Vehicle Network — Top Level Document,” August, 2013;

section 1971.1(h)(1.7.1) • SAE J1939−DA “J1939 Digital Annex of Serial Control and Communication Heavy Duty V ehicle Network Data,” February, 2018;

section 1971.1(h)(1.7.1)(A) • SAE J1939−1 “On−Highway Equipment Control and Communication Network,” November, 2012;

section 1971.1(h)(1.7.2) • SAE J1939−11 “Physical Layer, 250 Kbps, Twisted Shielded Pair,” December, 2016;

section 1971.1(h)(1.7.3) • SAE J1939−13 “Off−Board Diagnostic Connector,” October, 2016;

section 1971.1(h)(1.7.4) • SAE J1939−15 “Physical Layer, 250 Kbps, Un−Shielded Twisted Pair (UTP),” August, 2015;

section 1971.1(h)(1.7.5) • SAE J1939−21 “Data Link Layer,” March, 2016;

section 1971.1(h)(1.7.6) • SAE J1939−31 “Network Layer,” April, 2014;

section 1971.1(h)(1.7.7) • SAE J1939−71 “Vehicle Application Layer,” October, 2016;

section 1971.1(h)(1.7.8) • SAE J1939−73 “Application Layer — Diagnostics,” May, 2017;

section 1971.1(h)(1.7.9) • SAE J1939−81 “Network Management,” March, 2017;

section 1971.1(h)(1.7.10) • SAE J1939−84 “OBD Communications Compliance Test Cases for Heavy Duty Components and Vehicles,” October, 2017;

section 1971.1(h)(1.7.11) • SAE J1962 “Diagnostic Connector,” July, 2016;

section 1971.1(h)(1.2) • SAE J1979 “E/E Diagnostic Test Modes,” February, 2017;

section 1971.1(h)(1.4) • SAE J1979−DA “Digital Annex of E/E Diagnostic Test Modes,” February, 2017;

section 1971.1(h)(1.4.1) • SAE J2012 “Diagnostic Trouble Code

Definitions,” December, 2016;

section 1971.1(h)(1.5) • SAE J2012−DA “Digital Annex of Diagnostic Trouble Code

Definitions and Failure Type Byte

Definitions,” December, 2016;

section 1971.1(h)(1.5.1) • SAE J2403 “Medium/Heavy−Duty E/E Systems Diagnosis Nomenclature,” February, 2014;

section 1971.1(h)(1.8) • SAE J3162 “In−Use Monitor Performance Ratio (IUMPR) Data Collection Tool Process,” June, 2018;

section 1971.1(h)(1.11) • Data Record Reporting Procedures for Over−the−Air Reprogrammed Vehicles and Engines, August 16, 2018; sections 1971.1(h)(6) and 1968.2(g)

(8) CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1692 Background and Effect of the Proposed Regulatory Action: On−Board Diagnostic (OBD) systems serve an im- portant role in helping to ensure that engines and vehi- cles maintain low emissions throughout their full lives.

OBD systems monitor virtually all emission controls on engines and vehicles, including catalysts, particulate matter (PM) filters, exhaust gas recirculation systems, oxygen sensors, evaporative systems, fuel systems, and electronic powertrain components, and other compo- nents and systems that can affect emissions when mal- functioning. The systems also provide specific diagnos- tic information in a standardized format through a stan- dardized serial data link on−board the vehicles.

The use and operation of OBD systems ensure reductions of in− use motor vehicle and motor vehicle engine emissions through improvements in emission system durability and performance. The Board originally adopted comprehensive OBD regulations in 1990, requiring all 1996 and newer model year passenger cars, light−duty trucks, and medium− duty vehicles and engines to have OBD II systems.

The Board subsequently updated the OBD requirements in 2002 with the adoption of California Code of Regula- tions, title 13, sections 1968.2 and 1968.5, which estab- lished OBD II requirements (CCR, title 13, §1968.2) and enforcement requirements (Cal. Code Regs., title 13, §1968.5) for 2004 and subsequent model year vehi- cles. The Board has modified the OBD II regulation in several updates since initial adoption to address manu- facturers’ implementation concerns and, where needed, to strengthen specific monitoring requirements. In 2005, CARB adopted Cal. Code Regs., title 13,

section 1971.1, which established comprehensive OBD re- quirements for 2010 and subsequent model year heavy− duty engines and vehicles (i.e., vehicles with a gross ve- hicle weight rating greater than 14,000 pounds), re- ferred to as HD OBD. The Board subsequently updated the HD OBD regulation in 2009 and adopted HD OBD− specific enforcement requirements (Cal. Code Regs., ti- tle 13, §1971.5). The Board last adopted updates to the OBD II requirements in 2015 and to the HD OBD regu- lation in 2012 to address several concerns and issues re- garding the regulations.

Since then, CARB staff has identified a number of proposed amendments to the HD OBD regulations that it believes are warranted. Some of the proposed amend- ments address manufacturers’ implementation con- cerns and provide clarification on existing require- ments. Staff is also proposing amendments that it be- lieves are needed to ensure the integrity of the HD OBD systems and to provide valuable information for other CARB programs through the adoption of Real Emis- sions Assessment Logging (REAL).

The proposed amendments to the HD OBD regulation include: • Clarifying the requirements for intrusive diagnostics • Revising the in−use monitor performance ratio (IUMPR) requirements, including increasing the minimum required ratio, adding monitors required to track and report the in−use monitor performance ratio data, and revising the requirements to address plug−in hybrid electric vehicles • Revising the criteria manufacturers must meet to be exempt from monitoring the feedgas generation performance of the non−methane hydrocarbon (NMHC) catalyst and catalyzed particular matter (PM) filter • Revising the gasoline and diesel crankcase ventilation system monitoring requirements • Specifying more detailed monitoring requirements for hybrid vehicles • Updating the SAE International (SAE) and International Organization for Standardization (ISO) document references • Revising the readiness status requirements for exhaust gas/oxygen sensors and sensor heaters • Adding data collection requirements as part of over−the−air reprogramming events • Adding data stream parameters required to be reported to assist with CARB programs (e.g., REAL) • Revising the certification demonstration testing requirements to revise the test engine aging requirements, clarify the allowable test sequence procedure, and add more data to be collected during testing • Adding items required to be submitted as part of the certification application • Revising the fines applicable to deficiencies • Revising the production engine/vehicle evaluation testing requirements to require permanent fault code erasure testing and to collect more data from in−use engines/vehicles Staff is also proposing similar amendments to the OBD II regulation

section 1968.2, where necessary, for medium−duty diesel engines and vehicles to harmonize the requirements of the two regulations. Additionally, while staff was not planning to do an update to the OBD II regulation this year that would affect light−duty vehi- cles, staff has determined based on comments from manufacturers that a few additional regulation changes are needed immediately in order to ensure manufactur- ers are able to certify near future vehicles that comply with the OBD II regulation. Staff has also found an issue

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1693 related to the definition of “active off−cycle credit tech- nology” in the OBD II regulation and is proposing an amendment to address this. Staff is also proposing amendments to the HD OBD enforcement regulation (section 1971.5) to align with some of the proposed changes to the HD OBD regula- tion, correct some oversights and errors, and address manufacturers’ workload issues.

These include changes to the nonconforming criteria to account for the proposed revised in-use monitor performance ratios, re- laxations to the mandatory recall interim thresholds for alternate−fueled engines, and relaxations to the manu- facturer self−testing requirements. CARB may also consider other changes to the sec- tions affected, as listed above, during the course of this rulemaking process.

Objectives and Benefits of the Proposed Regulatory Action: The proposed HD OBD and OBD II amendments will provide manufacturers with greater compliance flexi- bility, and strengthen and clarify the performance re- quirements they are expected to meet in designing and developing robust OBD systems. This will encourage manufacturers to design and build more durable en- gines and emission-related components, all of which will help ensure that forecasted emission reduction ben- efits from adopted light−, medium−, and heavy−duty vehicle and engine emission control programs are achieved in−use.

The implementation of REAL through added nitrogen oxide and greenhouse gas emission tracking requirements will allow CARB to characterize emissions performance in−use, providing information that will allow for better modeling and technology per- formance evaluation to inform future program adjust- ments. Ultimately, the proposed action will further the goal of CARB which is to promote and protect public health, welfare and ecological resources through the ef- fective and efficient reduction of air pollutants, and pro- vide safe, clean air to Californians. No quantifiable ben- efit to worker safety is expected.

CARB developed the proposed regulatory actions through an extensive public process. The HD OBD reg- ulatory update process began in 2016, when CARB staff started having meetings with stakeholders (mainly engine manufacturers) to discuss the development of proposed amendments for the HD OBD regulations. CARB held a public workshop in El Monte on Novem- ber 2, 2017 to discuss the proposal and to seek com- ments. The workshop notice and workshop presenta- tion were posted on the OBD Program website prior to the workshop, and interested stakeholders participated in the workshop in person or via webinar.

Additionally, draft regulatory language was sent to members of the Truck and Engine Manufacturers Association (EMA), which represents the main stakeholders affected by the proposed rulemaking. CARB staff also presented and sought comments regarding elements of the upcoming proposed amendments to the HD OBD regulations dur- ing several SAE OBD symposiums, including sympo- siums held in March, 2016 (Stuttgart, Germany); Sep- tember, 2016 (Indianapolis, Indiana); March, 2017 (Turin, Italy); September, 2017 (Anaheim, California); and March, 2018 (Barcelona, Spain).

These sympo- siums were attended by vehicle and engine manufactur- ers, scan tool manufacturers, and individuals involved in various other aspects of the automotive industry. Throughout the rulemaking process, CARB staff held 17 meetings, including 1 in−person meeting with EMA held in El Monte, California, as well as numerous meet- ings and correspondences (comprising of teleconfer- ences, in−person meetings, and e−mail correspon- dences) with individual manufacturers.

CARB staff al- so participated in numerous teleconferences with SAE committee members to help develop the specifications related to the proposed new data stream parameter and tracking requirements in the SAE standards. The pro- posal was developed in close collaboration with these stakeholders. As a result of the comments received throughout the regulatory process, staff made signifi- cant changes to the proposed amendments to the HD OBD regulations, which are reflected in the final proposal. Comparable Federal Regulations: CARB initially adopted the HD OBD regulation in 2005.

A waiver for the regulation was granted by U.S. EPA in 2008. 1 CARB amended the regulation in 2010, and was granted another waiver action by U.S. EPA in 2012.2 On November 7, 2016, the U.S. EPA formally granted California’s request for a waiver regarding the HD OBD regulation, as last amended on June 26, 2013, 3 recognizing that the HD OBD regulation is at least as stringent in protecting public health and welfare as the federal regulation, and that unique circumstances exist in California necessitating the need for the State’s own motor vehicle regulations program. The U.S.

EPA has also adopted OBD requirements for vehicles and engines above 14,000 pounds, which is 1 California State Motor Vehicle Pollution Control Standards; Notice of Waiver of Clean Air Act Preemption; California’ s 2010 Model Y ear Heavy−Duty Vehicle and Engine On−Board Diagnos- tic Standards, 73 Fed. Reg. 52042 (September 8, 2008). 2 California State Motor Vehicle Pollution Control Standards; Notice of Waiver of Clean Air Act Preemption; California’ s 2010 Model Y ear Heavy−Duty Vehicle and Engine On−Board Diagnos- tic Standards, 77 Fed.

Reg. 73459 (December 10, 2012). 3 California State Motor Vehicle Pollution Control Standards; Malfunction and Diagnostic System Requirements for 2010 and Subsequent Model Year Heavy−Duty Engines; Notice of Deci- sion, 81 Fed. Reg. 78149 (November 7, 2016).

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1694 the weight range for California’s “heavy−duty” class. The federal regulation (40 CFR 86.010−18) was pub- lished on February 24, 2009, and subsequently amend- ed on September 15, 2011 and June 17, 2013. The federal regulation is consistent with CARB’s California regulation in the most important aspects. However, the California HD OBD regulation in general still establishes more comprehensive and stringent re- quirements than the federal OBD regulation.

For exam- ple, the HD OBD regulation generally requires Califor- nia OBD systems on diesel engines to detect malfunc- tions before emissions exceed more stringent thresh- olds than those required by the federal HD OBD regula- tion. Further, the federal regulation does not require the OBD system to detect diesel oxidation catalyst mal- functions before a specific emission threshold is ex- ceeded like the California OBD regulations — it is only required to detect a failure if the catalyst completely lacks NMHC conversion capability.

As another exam- ple, under the federal HD OBD regulation, the malfunc- tion thresholds for the emission threshold monitors are not required to be adjusted to account for emissions due to infrequent regeneration events. The proposed 2018 amendments would continue California’s efforts to require more comprehensive and robust monitoring of emission related systems and components than required by federal OBD regulations.

The amendments also incorporate some new require- ments (e.g., incorporation of REAL for new data pa- rameters required to be tracked by the engine) that would assist other California mobile source emissions programs. Although differences would exist between the state and federal requirements, heavy−duty OBD systems can be designed to comply with both the federal and California programs. In fact, U.S. EPA’s regulation directly allows acceptance of systems that have been certified to California’s HD OBD regulation and to date, all heavy−duty engine manufacturers have chosen this path for certification.

Concerning the OBD II regulation, in 2014, the U.S. EPA adopted Tier 3 regulations that include provisions that generally align federal OBD requirements for 2017 and subsequent model year light duty vehicles, light− duty trucks, medium−duty passenger vehicles, and complete heavy−duty vehicles between 8,501 and 14,000 lbs. GVWR with CARB’s California OBD II regulation, as last amended in 2013. Although the federal OBD regulation (40 CFR 86.1806−5) is now generally harmonized with Califor- nia’s OBD II regulation, the federal requirements differ from corresponding California OBD requirements in several respects.

California’s OBD II regulation still es- tablishes more comprehensive and stringent require- ments than the amended federal regulation. The OBD II regulation requires California OBD systems to comply with monitoring requirements earlier than federal OBD systems must comply with the federal OBD regulation.

For example, California’s OBD II regulation requires OBD systems in medium−duty diesel vehicles and en- gines to detect PM filter performance faults before emissions exceed 0.03 grams per brake−horsepower hour (g/bhp−hr) beginning in the 2013 model year, and allows exclusions of specific failure modes until the 2015 model year. However, the federal OBD regulation requires federal OBD systems to detect PM filter per- formance faults at these same levels beginning in the 2019 model year.

Therefore, California OBD systems must comply with this requirement (without excluding specific failure modes) at least three model years earlier than federal OBD systems.

Additionally, the federal OBD requirements do not incorporate the anti−tamper- ing provisions of the OBD II regulation (that prevent unauthorized modifications of the computer−coded en- gine operating parameters of the on−board computer) or the deficiency provisions of the OBD II regulation (that allow certification of vehicles with non−fully compli- ant OBD systems provided manufacturers demonstrate a good−faith effort to comply with OBD requirements as expeditiously as possible, pay fines, and provided the deficiency would not trigger an ordered recall for the OBD system).

The federal OBD regulations, however retain the provision that allows U.S. EPA to deem Cali- fornia−certified OBD II systems to comply with the federal OBD regulation. 4 Historically, virtually every vehicle sold in the U.S. is designed and certified to California’s OBD II require- ments in lieu of the federal OBD requirements. An Evaluation of Inconsistency or Incompatibility with Existing State Regulations (Gov.

Code, § 11346.5, subd. (a)(3)(D)): During the process of developing the proposed regu- latory action, CARB conducted a search of any similar regulations on this topic and concluded these regula- tions are neither inconsistent nor incompatible with ex- isting state regulations. DISCLOSURES REGARDING THE PROPOSED REGULATION Fiscal Impact/Local Mandate Determination Regarding the Proposed Action (Gov.

Code, § 11346.5, subds. (a)(5) & (6)): The determinations of the Board’s Executive Officer concerning the costs or savings incurred by public agencies and private persons and businesses in reason- able compliance with the proposed regulatory action are presented below. 4 40 CFR 86.1806−5(j).

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1695 Under Government Code sections 11346.5, subdivi- sion (a)(5) and 11346.5, subdivision (a)(6), the Execu- tive Officer must determine whether the proposed regu- latory action would create costs to any State agency or in federal funding to the State, costs or mandate to any local agency or school district, whether or not reim- bursable by the State under Government Code, title 2, division 4,

part 7 (commencing with

section 17500), or other nondiscretionary cost or savings to State or local agencies. Accordingly, the Executive Officer’s deter- mination is as follows: Cost to any Local Agency or School District Requiring Reimbursement under sections 17500 et seq.: The proposed amendments will not have any fiscal impacts on local agencies on the current year and the next two subsequent years because the earliest imple- mentation date for the proposal is the 2022 model year.

Beginning with the 2021/2022 fiscal year, however, lo- cal government agencies will pay a higher purchase price for new heavy− and medium−duty vehicles with engines covered by the proposed amendments if manu- facturers pass on costs. CARB’s EMFAC model indi- cates local government heavy− and medium−duty vehi- cles represent about 8.1 percent of the total State vehicle population. According to annual sales numbers provid- ed by engine manufacturers to CARB, approximately 34,735 heavy− and medium−duty vehicles are sold an- nually in California.

Assuming that local government fleets also purchase 8.1 percent of all new heavy− and medium−duty vehicles sold in California, a total of 2,814 of these vehicles are purchased annually (8.1% * 34,735 annual CA vehicles sales) by local government fleets. This indicates that approximately 16,884 vehi- cles (2,814 * 6) would be impacted over the six−year life of the proposal and the regulatory cost to local gov- ernment fleets is estimated to be approximately $119,500 per year (i.e., $42.46 * 2,814) on average in the 2021/2022 fiscal year and thereafter.

In addition, lo- cal agencies purchased 5,681 light−duty vehicles on av- erage for the past five years, according to interagency analysis of new vehicle registration records. Since the proposed amendments would increase the price of a new light−duty vehicle by $0.34, local agencies will in- cur additional annual cost of about $2,000 (i.e., $0.34 * 5,681). Therefore, the total annual costs to local agen- cies will amount to $121,500 (i.e., $119,500 + $2,000) beginning with the 2021/2022 fiscal year and thereafter.

Any cost to local government is not reimbursable by the State, pursuant to Government Code, title 2, divi- sion 4,

part 7 (commencing with

section 17500) be- cause the additional costs associated with the proposed amendments apply generally to all entities that pur- chase affected engines and vehicles, private fleets and owners as well as state and local agencies. The pro- posed amendments do not mandate a new program or higher level of service on any local government. Cost or Savings for State Agencies: The proposed amendments will not have any cost im- pacts on State agencies in the current fiscal year and next two subsequent fiscal years because the earliest implementation date for the proposed amendments is the 2022 model year.

Beginning with the 2021/2022 fis- cal year, however, State agencies would be expected to pay a higher purchase price for new heavy− and medi- um−duty vehicles like any other purchasers of these ve- hicles. According to CARB’s EMFAC model, the State government heavy− and medium−duty vehicle popula- tion is about 3.1 percent of the total State vehicle total.

Assuming that State government fleets also purchase 3.1 percent of all new heavy− and medium−duty vehi- cles sold in California, a total of 1,077 of these vehicles are purchased annually by State government fleets (i.e., 3.1% * 34,735 annual HD vehicles sold in CA). Thus, the regulatory cost to State government fleets is esti- mated to be $45,700 (i.e., $42.46 * 1,077) per year on average in the 2021/2022 fiscal year and thereafter. In addition, State agencies purchased 797 light−duty vehi- cles on average for the past five years, according to in- teragency analysis of new vehicle registration records.

Since the proposed amendments would increase the price of a new light−duty vehicle by $0.34, State agen- cies will incur additional annual cost of about $270 (i.e., $0.34 * 797). Therefore, the total annual costs to State agencies will amount to about $46,000 (i.e., $45,700 + $270) beginning with the 2021/2022 fiscal year and thereafter. The amendments may require negligible additional time for CARB staff to review HD OBD and OBD II ap- plications, but is not anticipated to require additional staff positions.

Other Non−Discretionary Costs or Savings on Local Agencies: No other non−discretionary costs or savings to local agencies are expected. Cost or Savings in Federal Funding to the State: No costs or savings in federal funding is anticipated. Housing Costs (Gov. Code,§ 11346.5, subd. (a)(12)): The Executive Officer has also made the initial deter- mination that the proposed regulatory action will not have a significant effect on housing costs. Significant Statewide Adverse Economic Impact Directly Affecting Business, Including Ability to Compete (Gov.

Code, §§ 11346.3, subd. (a), 11346.5, subd. (a)(7), 11346.5, subd. (a)(8)): The Executive Officer has made an initial determina- tion that the proposed regulatory action would not have a significant statewide adverse economic impact direct-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1696 ly affecting businesses, including the ability of Califor- nia businesses to compete with businesses in other states, or on representative private persons. Support for this determination is set forth in the Initial Statement of Reasons (ISOR). Results of The Economic Impact Analysis/Assessment (Gov.

Code, § 11346.5, subd. (a)(10)): NON−MAJOR REGULATION: Statement of the Results of the Economic Impact Assessment (EIA): Effect on Jobs/Businesses: The Executive Officer has determined that the pro- posed regulatory action would have a minor or no im- pact on the creation or elimination of jobs within the State of California, the creation of new businesses or elimination of existing businesses within the State of California, or the expansion of businesses currently do- ing business within the State of California.

A detailed assessment of the economic impacts of the proposed regulatory action can be found in the Economic Impacts Assessment in the ISOR. Benefits of the Proposed Regulation: The objective of the proposed amendments is to strengthen the HD OBD and OBD II requirements, pro- vide manufacturers with greater compliance flexibility, and clarify the performance requirements they are ex- pected to meet in designing and developing robust HD OBD and OBD II systems.

This will encourage manu- facturers to design and build more durable engines and emission−related components, all of which will help ensure that forecasted emission reduction benefits from adopted light−, medium−, and heavy− duty vehicle and engine emission control programs are achieved in−use. A

summary of these benefits is provided, please refer to “Objectives and Benefits”, under the Informative Di- gest of Proposed Action and Policy Statement Over- view Pursuant to Government Code 11346.5(a)(3) dis- cussion above. Business Report (Gov. Code, §§ 11346.5, subd. (a)(11); 11346.3, subd. (d)): In accordance with Government Code sections 11346.5, subdivisions (a)(11) and 11346.3, subdivision (d), the Executive Officer finds the reporting require- ments of the proposed regulatory action which apply to businesses are necessary for the health, safety, and wel- fare of the people of the State of California.

Cost Impacts on Representative Private Persons or Businesses (Gov. Code, § 11346.5, subd. (a)(9)): In developing this regulatory proposal, CARB staff evaluated the potential economic impacts on represen- tative private persons or businesses. For the proposed changes to the HD OBD regulation, the incremental cost to heavy− and medium−duty engine manufacturers is estimated to be $35.14 per engine. Similarly, the pro- posed changes to the OBD II regulations are estimated to increase the cost to light−duty and medium−duty gasoline vehicle manufacturers by $0.30 per vehicle.

These costs will likely be passed on to the consumer in the form of increases to the retail price of an engine. The incremental cost to consumers is estimated to range from $0.34 for purchasers of light− and medium−duty gasoline vehicles and $42.46 for purchasers of heavy− and medium− duty engines, which is negligible com- pared to the typical price of a vehicle or engine. Effect on Small Business (Cal. Code Regs., tit. 1, § 4, subds. (

a) and (b)): The Executive Officer has also determined under California Code of Regulations, title 1,

section 4, that the proposed regulatory action would affect small busi- nesses. Small businesses are estimated to include some heavy−duty engine manufacturers, heavy− and medium−duty engine repair shops, and the smaller heavy− and medium−duty vehicle fleets. The cost im- pact to the small businesses in these industries is expect- ed to range from zero to $582 assuming these business- es purchase zero to 20 engines per year.

Since small en- gine manufacturers purchase engines from large engine manufacturers for modifications before reselling them, small engine manufacturers would be expected to pass the higher engine purchasing costs on to the purchaser of their engine in the form of an increased retail price for the modified engine as noted above in the cost impacts on private persons or businesses. In addition, small ve- hicle fleets are expected to incur an incremental annual cost ranging from zero to $66.32 for a fleet purchasing zero to two vehicles. Engine repair shops may experi- ence increased business.

Alternatives Statement (Gov.

Code, § 11346.5. subd. (a)(13)): Before taking final action on the proposed regulatory action, the Board must determine that no reasonable al- ternative considered by the Board, or that has otherwise been identified and brought to the attention of the Board, would be more effective in carrying out the pur- pose for which the action is proposed, would be as ef- fective and less burdensome to affected private persons than the proposed action, or would be more cost− effective to affected private persons and equally effec- tive in implementing the statutory policy or other provi- sions of law.

Alternatives to the proposed rulemaking that were considered are described in the ISOR. STATE IMPLEMENTATION PLAN REVISION If adopted by CARB, CARB plans to submit the pro- posed regulatory action to the United States Environ- mental Protection Agency (U.S. EPA) for approval as a revision to the California State Implementation Plan

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1697 (SIP) required by the federal Clean Air Act (CAA). The adopted regulatory action would be submitted as a SIP revision because it amends regulations intended to re- duce emissions of air pollutants in order to attain and maintain the National Ambient Air Quality Standards promulgated by U.S. EPA pursuant to the CAA.

ENVIRONMENTAL ANALYSIS CARB, as the lead agency under the California Envi- ronmental Quality Act (CEQA), has reviewed the pro- posed regulatory amendments and concluded that the proposed action is exempt pursuant to CEQA Guide- lines § 15308, because the action is an action taken by regulatory agencies for the protection of the environ- ment. A brief explanation of the basis for reaching this conclusion is included in

Chapter IV of the ISOR. SPECIAL ACCOMMODATION REQUEST Consistent with California Government Code Sec- tion 7296.2, special accommodation or language needs may be provided for any of the following: • An interpreter to be available at the hearing; • Documents made available in an alternate format or another language; and • A disability−related reasonable accommodation. To request these special accommodations or lan- guage needs, please contact the Clerk of the Board at (916) 322−5594 or by facsimile at (916) 322−3928 as soon as possible, but no later than 10 business days be- fore the scheduled Board hearing.

TTY/TDD/Speech to Speech users may dial 711 for the California Relay Service. Consecuente con la sección 7296.2 del Código Gob- ierno de California, una acomodación especial o necesi- dades lingüísticas pueden ser suministradas para cualquiera de los siguientes: • Un intérprete que esté disponible en la audiencia; • Documentos disponibles en un formato alterno u otro idioma; y • Una acomodación razonable relacionados con una incapacidad.

Para solicitar estas comodidades especiales o necesi- dades de otro idioma, por favor llame a la oficina del Consejo al (916) 322−5594 o envié fax a (916) 322−3928 lo más pronto posible, pero no menos de 10 días de trabajo antes del día programado para la audien- cia del Consejo. TTY/TDD/Personas que necesiten este servicio pueden marcar el 711 para el Servicio de Re- transmisión de Mensajes de California.

AGENCY CONTACT PERSONS Inquiries concerning the substance of the proposed regulatory action may be directed to the agency repre- sentative Leela Rao, Manager, On−Board Diagnostics Program Development Section, at (626) 350−6469 or (designated back−up contact) Adriane Chiu, Air Re- sources Engineer, On−Board Diagnostics Program De- velopment Section, at (626) 350−6453. A V AILABILITY OF DOCUMENTS CARB staff has prepared a Staff Report: Initial State- ment of Reasons (ISOR) for the proposed regulatory ac- tion, which includes a

summary of the economic and environmental impacts of the proposal. The report is en- titled: Public Hearing to Consider the Proposed Revi- sions to the Malfunction and Diagnostic System Re- quirements for Heavy−Duty Engines (HD OBD) and Passenger Cars, Light−Duty Trucks, and Medium− Duty V ehicles and Engines (OBD II).

Copies of the ISOR and the full text of the proposed regulatory language, in underline and strikeout format to allow for comparison with the existing regulations, may be accessed on CARB’s website listed below, or may be obtained from the Public Information Office, Air Resources Board, 1001 I Street, Visitors and Envi- ronmental Services Center, First Floor, Sacramento, California, 95814, on September 25, 2018. Further, the agency representative to whom nonsub- stantive inquiries concerning the proposed administra- tive action may be directed is Chris Hopkins, Regula- tions Coordinator, (916) 445−9564.

The Board staff has compiled a record for this rulemaking action, which in- cludes all the information upon which the proposal is based. This material is available for inspection upon re- quest to the contact persons. HEARING PROCEDURES The public hearing will be conducted in accordance with the California Administrative Procedure Act, Government Code, title 2, division 3,

part 1,

chapter 3.5 (commencing with

section 11340). Following the public hearing, the Board may take ac- tion to approve for adoption the regulatory language as originally proposed, or with non−substantial or gram- matical modifications. The Board may also approve for adoption the proposed regulatory language with other modifications if the text as modified is sufficiently re- lated to the originally proposed text that the public was adequately placed on notice and that the regulatory lan- guage as modified could result from the proposed regu- latory action.

If this occurs, the full regulatory text, with the modifications clearly indicated, will be made avail- able to the public, for written comment, at least 15 days before final adoption.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1698 The public may request a copy of the modified regu- latory text from CARB’s Public Information Office, Air Resources Board, 1001 I Street, Visitors and Environ- mental Services Center, First Floor, Sacramento, Cali- fornia, 95814. FINAL STATEMENT OF REASONS A V AILABILITY Upon its completion, the Final Statement of Reasons (FSOR) will be available and copies may be requested from the agency contact persons in this notice, or may be accessed on CARB’s website listed below.

INTERNET ACCESS This notice, the ISOR and all subsequent regulatory documents, including the FSOR, when completed, are available on CARB’s website for this rulemaking at https://www.arb.ca.gov/regact/2018/hdobd2018/ hdobd18.htm . TITLE 14. STATE MINING AND GEOLOGY BOARD CALIFORNIA CODE OF REGULATIONS TITLE 14. NATURAL RESOURCES Division 2. Department of Conservation

Chapter 8. Mining and Geology Subchapter 1. State Mining and Geology Board

Article 7. Financial Assurances Appeal Procedures Office of Administrative Law Notice File Number: Z−2018−0918−05 NOTICE IS HEREBY GIVEN that the State Min- ing and Geology Board (SMGB) proposes to amend and adopt the regulations described below after consid- ering all comments, objections, or recommendations regarding the proposed action. PROPOSED REGULATORY ACTION The SMGB proposes to amend and adopt new sec- tions in

Article 7 of the California Code of Regulations (CCR), Title 14, Division 2,

Chapter 8, Subchapter 1 pertaining to financial assurances appeal procedures. Specifically, CCR sections 3680−3690 will be amended to conform appeal procedures to recent statutory amendments and new CCR sections 3691.1−3691.10 will be added to set forth procedures for the Department of Conservation, Division of Mine Reclamation’s (DMR) statutory authority to appeal lead agency ap- proved financial assurance cost estimates (FACEs).

WRITTEN COMMENT PERIOD AND PUBLIC HEARING Any person, or his or her authorized representative, may submit written statements, arguments, or com- ments related to the proposed regulatory action to the SMGB. Comments may be submitted by email to smgb@conservation.ca.gov, by facsimile (FAX) to (916) 445−0738, or by mail to: State Mining and Geology Board 801 K Street, MS 20−15 Sacramento, CA 95814 ATTN: FACE Appeals The written comment period closes at 5:00 p.m. on November 13, 2018. The SMGB will only consider comments received at the SMGB office by that time.

The SMGB will hold a hearing if it receives a written request for a public hearing from any interested person, or his or her authorized representative, no later than 15 days before the close of the written comment period. AUTHORITY AND REFERENCE The SMGB is proposing to amend and adopt new sec- tions of

Article 7 of Title 14, Division 2,

Chapter 8, Sub-

chapter 1 of the CCR pursuant to the authority granted in the Surface Mining and Reclamation Act of 1975 (Public Resources Code (PRC)

section 2710 et seq., hereinafter “SMARA”), specifically PRC sections 2755 and 2759, to implement, interpret, and make spe- cific PRC sections 2736 and 2770. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW On April 18, 2016, Governor Brown signed Assem- bly Bill (AB) 1142 (Gray) into law and thereby enacted significant reform to SMARA. In order to enact the re- visions to SMARA, SMGB must address these changes by way of regulations. SMARA was enacted in part to ensure that any signif- icant adverse impacts of mining to the environment are prevented or mitigated and public health and safety are protected.

Under SMARA, surface mining operators are required to submit to their respective local govern- ments (lead agency) for approval a plan for reclaiming lands disturbed by mining activities as well as proof of financial assurances to ensure that those disturbed lands are reclaimed in accordance with the approved reclama- tion plan. Lead agencies are responsible for ensuring their surface mining operators are in compliance with SMARA’s requirements, including permitting and con- ditions of approval that relate to the conduct of mining, the operation’s reclamation plan, and financial assur- ance requirements.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1699 Existing Law PRC

section 2736 provides that “Financial Assur- ances” means a current approved FACE and a financial assurance mechanism that is at least equal to the current approved F ACE. PRC

section 2770(e)(1) provides an appeals process to the SMGB for a person who can substantiate, based on evidence in the record, that the lead agency has either (1) failed to act according due process or has relied on considerations not related to the specific applicable re- quirements of PRC sections 2773.1, 2773.4, and the lead agency surface mining ordinance adopted pursuant to PRC

section 2774(

a) in reaching a decision to deny approval of a financial assurance for reclamation, or (2) failed to act within a reasonable time of receipt of a completed application, may appeal that action or inac- tion to the SMGB. PRC

section 2770(e)(2) provides authority for DMR to appeal a lead agency approved FACE to the SMGB where DMR has commented pursuant to PRC

section 2773.4 that the FACE is inadequate based on considera- tion of PRC

section 2773.1,

Article 11 (commencing with

section 3800) of Subchapter 1 of

chapter 8 of Divi- sion 2 of Title 14 of the CCR, and the SMGB’s financial assurance guidelines adopted pursuant to PRC

section 2773.1(f). PRC

section 2770(f)(1) provides that the SMGB may decline to hear an appeal if it determines that the appeal raises no substantial issues related to the lead agency’s decision to deny the approval of financial assurances, or the timeliness in reviewing a completed application. However, appeals filed by DMR must be heard by the SMGB. PRC

section 2770(f)(2) provides that if the SMGB takes up an appeal, the appeal shall be scheduled and heard at a public hearing within 45 days of filing of the appeal, or a longer period as may be mutually agreed to by the SMGB, the appellant, and the operator, or, if the appeal is filed by DMR, by the SMGB, DMR, and the operator. PRC

section 2770(g)(1)(

A) provides that when hear- ing an appeal filed pursuant to PRC

section 2770(e)(1) or (e)(2), the SMGB must determine whether the FACE substantially meets the applicable requirements of PRC sections 2773.1, 2773.4,

Article 11 (commencing with

section 3800) of Subchapter 1 of

Chapter 8 of Division 2 of Title 14 of the CCR and the lead agency’s surface mining ordinance adopted pursuant to PRC

section 2774(a). Additionally, the SMGB must approve or up- hold a FACE determined to meet those applicable re- quirements. PRC

section 2770(g)(1)(

B) provides that “substan- tially” means actual compliance in respect to the sub- stance and form requirements essential to the objectives of SMARA. PRC

section 2770(g)(3)(

A) provides that if the SMGB determines the lead agency’s approved FACE does not meet the requirements of PRC sections 2773.1 and 2773.4,

Article 11 (commencing with

section 3800) of Subchapter 1 of

Chapter 8 of Division 2 of Title 14 of the CCR, the SMGB’s financial assurance guidelines adopted pursuant to PRC

section 2773.1(f), the SMGB shall note the deficiencies and, based on the record, in- clude adequate cost estimates for each noted deficiency. PRC

section 2770(g)(3)(

B) provides that within 10 days of the hearing, the SMGB must provide notice via certified mail to the lead agency, the operator, and DMR of the SMGB’s determination with instructions to the operator to submit to the lead agency for approval a re- vised FACE consistent with the SMGB’s determina- tion. The instructions must include a reasonable sub- mission deadline of not less than 30 days. PRC

section 2770(g)(3)(

C) provides that the lead agency must approve the revised FACE and that ap- proval will supersede and void the prior approved FACE. PRC

section 2770(g)(3)(

D) provides that a financial assurance mechanism must be established by the opera- tor pursuant to PRC

section 2773.4(

e) following the ap- proval of the FACE. PRC

section 2770(g)(3)(

E) provides that the failure of the operator to submit to the lead agency a revised FACE consistent with the SMGB’s determination and deadline may be grounds for the issuance of an order to comply pursuant to PRC

section 2774.1(a). Sections 3680−3690 of CCR, Title 14, Division 2,

Chapter 8, Subchapter 1,

Article 7 govern procedures for appeals to the SMGB concerning financial assur- ances for reclamation of existing surface mining opera- tions under PRC

section 2770. Proposed Action Amend CCR sections 3680−3690. The proposed amended regulations implement the changes to SMARA as a result of AB 1142 (Gray) signed by Gov- ernor Brown on April18, 2016. Adopt new CCR sections 3691.1−3691.10. The pro- posed new regulations provide a process for filing, noticing, and hearing F ACE appeals made by DMR. The regulations provide specific procedures for DMR, SMGB, the lead agency, and the operator to follow throughout the appeal process, clarifying the responsi- bilities of each party, and providing timelines for each step.

The proposed new regulations closely follow the existing appeals processes available to persons under CCR sections 3680−3690 described above.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1700 Anticipated Benefits of the Proposed Regulatory Action The broad objective of the proposed regulatory action is to conform existing SMGB appeal processes to revi- sions to PRC

section 2770 and newly enacted PRC sec- tion 2736, caused by AB 1142 (Gray). Additionally, the language is intended to provide non−monetary benefits such as the prevention of discrimination, the promotion of fairness, and the openness and transparency in gov- ernment by strengthening the review and adequacy of FACEs with effective communication between local lead agencies, the state, and mine operators. CONSISTENCY WITH FEDERAL STATUTE AND REGULATION The proposed regulatory action does not duplicate or conflict with existing Federal statutes or regulations.

By Memorandum of Understanding with the Federal Bureau of Land Management, the United States Forest Service, the Department of Conservation, and the SMGB, SMARA and federal law are coordinated. CONSISTENCY WITH EXISTING STATE REGULATIONS The proposed regulatory action is not inconsistent or incompatible with existing regulations pertaining to FACE appeals. After conducting a review for any regu- lations that would relate to or affect this area, the SMGB has concluded that

Article 7 in Title 14, Division 2,

Chapter 8, Subchapter 1 of the CCR, contains the only regulations that concern FACE appeals for surface min- ing operations. CEQA COMPLIANCE The SMGB has determined that the proposed regula- tory action is not a project as defined in Title 14, CCR,

section 15378, and that the activity is not subject to the requirements of the California Environmental Quality Act (CEQA). DISCLOSURES REGARDING THE PROPOSED ACTION The SMGB has made the following initial determinations: Mandate on local agencies and school districts: None. Cost or savings to any state agency: None. Cost to any local agency or school district which must be r eimbursed in accordance with Govern- ment Code sections 17500 through 17630: None. Other nondiscretionary cost or savings imposed on local agencies: None. Cost or savings in federal funding to the state: None.

Costs impacts on a representative private person or business: The SMGB 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. Significant, statewide adverse economic impact directly affecting business, businesses and individu- als, including the ability of California businesses to compete with businesses in other states: The SMGB has determined that the proposed regulatory action will not have an adverse economic impact on businesses and individuals statewide, including small businesses.

The proposed regulatory action enacts new PRC

section 2736 and revisions to PRC

section 2770 caused by AB 1142 (Gray). The proposed regulation may affect small business. Significant effect on housing costs: None. Business reporting requirement: None. RESULTS OF THE ECONOMIC IMPACT ASSESSMENT/ANALYSIS Creation or elimination of jobs within California: The SMGB anticipates the proposed regulatory action will not have an impact on the creation of new, or the elimination of existing, jobs within California.

Creation of new businesses or the elimination of existing businesses within California: The SMGB an- ticipates the proposed regulatory action will not have an impact on the creation, expansion, or elimination of new or existing business within California.

Benefits to the health and welfare of California residents, worker safety, and the state’s environ- ment: The SMGB anticipates that the proposed regula- tory action will result in non−monetary benefits to pub- lic health and welfare, worker safety, and environmen- tal safety by ensuring the public will have sufficient and reliable funding to guarantee reclamation of mined lands. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5(a)(13), the SMGB must determine that no rea- sonable alternative it considered or that has otherwise been identified and brought to the attention of the SMGB would be more effective in carrying out the pur- pose for which the action is proposed, would be as ef- fective and less burdensome to affected private persons than the proposed action, or would be more cost− effective to affected private persons and equally effec-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1701 tive in implementing the statutory policy or other provi- sion of law. The SMGB invites interested persons to present statements or arguments with respect to alternatives to the proposed regulatory action during the written com- ment period or at any hearing scheduled to take state- ments or arguments that are relevant to the proposed action.

CONTACT PERSONS Inquiries concerning the substance of the proposed regulatory action should be directed to: Jeffrey Schmidt, Executive Officer State Mining and Geology Board 801 K Street, Suite 2015 Sacramento, California 95814 Phone: (916) 322−1082 Fax: (916) 445−0738 Jeffrey.schmidt@conservation.ca.gov OR Will Arcand, Senior Engineering Geologist State Mining and Geology Board 801 K Street, Suite 2015 Sacramento, CA 95814 Phone: (916) 322−1082 Fax: (916) 445−0738 Will.arcand@conservation.ca.gov Please direct requests for copies of the proposed text (the “express terms”) of this regulation, the initial state- ment of reasons, the modified text of the regulation, if any, or other information upon which this rulemaking is based to Jeffrey Schmidt at the above address.

A V AILABILITY OF INITIAL STATEMENT OF REASONS, TEXT OF PROPOSED REGULATION, AND RULEMAKING FILE The SMGB will have the entire rulemaking file avail- able for inspection and copying throughout the rule- making process at its office at the above address. Copies of the components of the rulemaking file may be ob- tained by contacting Jeffrey Schmidt at the address and phone number listed above.

A V AILABILITY OF CHANGED OR MODIFIED TEXT After the written comment period and any hearing that may be conducted by the SMGB to accept com- ments and evidence regarding the proposed regulatory action, the SMGB will consider all timely and relevant comments received. Thereafter, the SMGB may adopt the proposed amended and new regulations substantial- ly as described in this notice.

If the SMGB makes modi- fications that are sufficiently related to the original pro- posed text, it will make the modified text (with changes clearly indicated) available to the public for at least 15 days before the SMGB adopts the regulations as re- vised. Please send requests for copies of any modified regulations to the attention of Jeffrey Schmidt at the ad- dress indicated above. The SMGB will accept written comments on the modified text of the regulation for 15 days after the date on which they are made available.

A V AILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, copies of the Final Statement of Reasons may be obtained by contacting Jeffrey Schmidt at the above address. A V AILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Rulemaking Ac- tion, the Initial Statement of Reasons, and the proposed amended text of the regulation can be accessed through the SMGB website at: http://www.conservation. ca.gov/smgb. TITLE 14. STATE MINING AND GEOLOGY BOARD CALIFORNIA CODE OF REGULATIONS TITLE 14. NATURAL RESOURCES Division 2. Department of Conservation

Chapter 8. Mining and Geology Subchapter 1. State Mining and Geology Board

Article 1. Surface Mining and Reclamation Practice Office of Administrative Law Notice File Number: Z−2018−0918−06 NOTICE IS HEREBY GIVEN that the State Min- ing and Geology Board (SMGB) proposes to amend the regulation described below after considering all com- ments, objections, or recommendations regarding the proposed action. PROPOSED REGULATORY ACTION The SMGB proposes to amend

section 3504.5 of the California Code of Regulations (CCR), Title 14, Divi-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1702 sion 2,

Chapter 8, Subchapter 1,

Article 1, pertaining to conduct of surface mine inspections. Furthermore, the SMGB proposes to adopt a Notice of Completion of In- spection, form NOCI−1 (9/18) as well as repeal inspec- tion form MRRC−1 (4/97) in order to replace it with, and adopt, a revised inspection form, MRRC−1 (9/18) as described under Public Resources Code (PRC) sec- tion 2774(b). WRITTEN COMMENT PERIOD AND PUBLIC HEARING Any person, or his or her authorized representative, may submit written statements, arguments, or com- ments related to the proposed regulatory action to the SMGB.

Comments may be submitted by email to smgb@conservation.ca.gov, by facsimile (FAX) to (916) 445−0738, or by mail to: State Mining and Geology Board 801 K Street, MS 20−15 Sacramento, CA 95814 ATTN: Inspections The written comment period closes at 5:00 p.m. on November 13, 2018. The SMGB will only consider comments received at the SMGB office by that time. The SMGB will hold a hearing if it receives a written request for a public hearing from any interested person, or his or her authorized representative, no later than 15 days before the close of the written comment period.

AUTHORITY AND REFERENCE The SMGB is proposing to amend

section 3504.5 of Title 14, Division 2,

Chapter 8, Subchapter 1,

Article 1 of the CCR pursuant to the authority granted in the Sur- face Mining and Reclamation Act of 1975 PRC

section 2710 et seq., hereinafter “SMARA”), specifically PRC sections 2755 and 2759 to implement, interpret, and make specific PRC

section 2774. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW On April 18, 2016, Governor Brown signed Assem- bly Bill (AB) 1142 (Gray) into law and thereby enacted significant reform to SMARA. In order to enact the re- visions to SMARA, SMGB must address these changes by way of regulations. SMARA was enacted in part to ensure that any signif- icant adverse impacts of mining to the environment are prevented or mitigated and public health and safety are protected.

Under SMARA, surface mining operators are required to submit to their respective local govern- ments (lead agency) for approval, a plan for reclaiming lands disturbed by mining activities, as well as proof of financial assurances to ensure that those disturbed lands are reclaimed in accordance with the approved reclama- tion plan. Lead agencies are responsible for ensuring their surface mining operators are in compliance with SMARA’s requirements, including permitting and con- ditions of approval that relate to the conduct of mining, the operation’s reclamation plan, and financial assur- ance requirements.

The Department of Conservation’s (Department), Division of Mine Reclamation (DMR) and the SMGB provide lead agency assistance and oversight. Currently, the SMGB administers certain lead agency responsibilities under SMARA for 38 indi- vidual surface mining operations by conducting inspec- tions, reviewing and approving financial assurance cost estimates, and undertaking compliance and enforce- ment actions when necessary. Existing Law PRC

section 2774 requires inspections for surface mine operations to occur in intervals of no more than 12 months. It requires inspections to be conducted by a state−licensed geologist, state−licensed civil engineer, state−licensed landscape architect, state−licensed forester, or a qualified lead agency employee. A quali- fied lead agency employee may only conduct the in- spection if he/she has not been employed by the surface mining operation in any capacity during the previous 12 months, except that a qualified lead agency may inspect surface mining operations conducted by the local agen- cy.

The lead agency shall provide a notice of completion of the inspection, along with a copy of the inspection re- port to the director within 90 days of conducting the inspection.

Section 3504.5 of CCR, Title 14, Division 2,

Chapter 8, Subchapter 1,

Article 1 clarifies and makes specific the scope, nature, and frequency of a surface mine in- spection required under PRC

section 2774. Proposed Action Amend CCR

section 3504.5, Mine Inspections Per Calendar Y ear Repeal inspection form MRRC−1 (4/97) Forms Incorporated by Reference • Adopt form MRRC−1 (9/18), Surface Mining Inspection Report • Adopt form NOCI−1 (9/18) Notice of Completion of Inspection The proposed regulatory action ensures surface mine inspections are conducted by California state−licensed persons as well as qualified lead agency employees who have not been employed by the operator of the surface mining operation in any capacity during the previous 12 months, clarifies the term “qualified lead agency em- ployee,” and makes specific that those conducting sur-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1703 face mine inspections seek input from a California state−licensed person or specialist when an aspect or condition requires such. Additionally, it includes con- tract employees and those hired pursuant to third−party contracts to adhere to the ethical responsibilities of sur- face mine inspectors, and conforms the timeframe of when the notice of completion of inspection is provided to the appropriate parties pursuant to statute.

Further- more, the proposed action repeals inspection form, MRRC−1 (4/97), adopts and incorporates by reference the Surface Mining Inspection Report, form MRRC−1 (9/18), (a revised version of inspection form, MRRC−1 (4/97)), and adopts and incorporates by reference the Notice of Completion of Inspection, form NOCI−1 (9/18), as required by PRC

section 2774(b). Anticipated Benefits of the Proposed Regulatory Action The broad objective of the proposed regulatory action is to make procedural improvements and updates to the conduct of surface mine inspections based on statutory changes to PRC

section 2774 caused by AB 1142 (Gray). Furthermore, the proposed amended regulatory language is intended to provide non−monetary benefits such as protection of public health and safety, worker safety, and the environment as well as improve the in- tegrity of statutorily required inspections. CONSISTENCY WITH FEDERAL STATUTE AND REGULATION The proposed regulatory action does not duplicate or conflict with existing Federal statutes or regulations.

By Memorandum of Understanding with the Federal Bureau of Land Management, the United States Forest Service, the Department, and the SMGB, SMARA and federal law are coordinated. CONSISTENCY WITH EXISTING STATE REGULATIONS The proposed regulatory action is not inconsistent or incompatible with existing regulations pertaining to in- spections for surface mining operations. After conduct- ing a review for any regulations that would relate to or affect this area, the SMGB has concluded that

Article 1 in Title 14, Division 2,

Chapter 8, Subchapter 1 of the CCR, contains the only regulations that concern inspec- tions for surface mining operations. CEQA COMPLIANCE The SMGB has determined that the proposed regula- tory action is not a project as defined in CCR Title 14,

section 15378, and that this activity is not subject to the requirements of the California Environmental Quality Act (CEQA). DISCLOSURES REGARDING THE PROPOSED ACTION The SMGB has made the following initial determinations: Mandate on local agencies and school districts: None. Cost or savings to any state agency: None. Cost to any local agency or school district which must be r eimbursed in accordance with Govern- ment Code sections 17500 through 17630: None. Other nondiscretionary cost or savings imposed on local agencies: None. Cost or savings in federal funding to the state: None.

Costs impacts on a representative private person or business: The SMGB 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. Significant, statewide adverse economic impact directly affecting business, businesses and individu- als, including the ability of California businesses to compete with businesses in other states: The SMGB has determined that the proposed regulatory action will not have an adverse economic impact on businesses and individuals statewide, including small businesses.

Sur- face mining operations are statutorily required to be in- spected. The proposed regulatory action makes proce- dural improvements to the conduct of surface mine in- spections following statutory changes to SMARA from Assembly Bill 1142 (Gray). The proposed regulation may affect small business. Significant effect on housing costs: None. Business reporting requirement: The SMGB finds that it is necessary for the health, safety, or welfare of the people of this state that this regulation, which re- quires a report, apply to business.

RESULTS OF THE ECONOMIC IMPACT ASSESSMENT/ANALYSIS Creation or elimination of jobs within California: The SMGB anticipates the proposed regulatory action will not have an impact on the creation of new, or the elimination of existing, jobs within California. Creation of new businesses or the elimination of existing businesses within California: The SMGB an- ticipates the proposed regulatory action will not have an impact on the creation, expansion, or elimination of new or existing business within California. Benefits to the health and welfare of California residents, worker safety, and the state’s environ-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1704 ment: The SMGB anticipates that the proposed regula- tory action will result in non−monetary benefits to pub- lic health and welfare, worker safety, and environmen- tal safety by improving the integrity of statutorily re- quired surface mine inspections.

Surface mine inspec- tions are intended to ensure that mine operators are complying with their permits, conditions of approval that relate to the reclamation plan, and SMARA, even- tually making progress towards final reclamation of mined lands to a usable condition which is readily adaptable for alternative land uses. Additionally, in- spections prevent and/or minimize adverse environ- mental effects of surface mines and play a vital role in ensuring compliance with other environmental laws. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5(a)(13), the SMGB must determine that no rea- sonable alternative it considered or that has otherwise been identified and brought to the attention of the SMGB would be more effective in carrying out the pur- pose for which the action is proposed, would be as ef- fective and less burdensome to affected private persons than the proposed action, or would be more cost− effective to affected private persons and equally effec- tive in implementing the statutory policy or other provi- sion of law.

The SMGB invites interested persons to present statements or arguments with respect to alternatives to the proposed regulatory action during the written com- ment period or at any hearing scheduled to take state- ments or arguments that are relevant to the proposed action.

CONTACT PERSONS Inquiries concerning the substance of the proposed regulatory action should be directed to: Jeffrey Schmidt, Executive Officer State Mining and Geology Board 801 K Street, Suite 2015 Sacramento, California 95814 Phone: (916) 322−1082 Fax: (916) 445−0738 Jeffrey.schmidt@conservation.ca.gov OR Will Arcand, Senior Engineering Geologist State Mining and Geology Board 801 K Street, Suite 2015 Sacramento, CA 95814 Phone: (916) 322−1082 Fax: (916) 445−0738 Will.arcand@conservation.ca.gov Please direct requests for copies of the proposed text (the “express terms”) of this regulation, the initial state- ment of reasons, the modified text of the regulation, if any, or other information upon which this rulemaking is based to Jeffrey Schmidt at the above address.

A V AILABILITY OF INITIAL STATEMENT OF REASONS, TEXT OF PROPOSED REGULATION, AND RULEMAKING FILE The SMGB will have the entire rulemaking file avail- able for inspection and copying throughout the rule- making process at its office at the above address. Copies of the components of the rulemaking file may be ob- tained by contacting Jeffrey Schmidt at the address and phone number listed above.

A V AILABILITY OF CHANGED OR MODIFIED TEXT After the written comment period and any hearing that may be conducted by the SMGB to accept com- ments and evidence regarding the proposed regulatory action, the SMGB will consider all timely and relevant comments received. Thereafter, the SMGB may adopt the proposed amended regulation substantially as de- scribed in this notice.

If the SMGB makes modifica- tions that are sufficiently related to the original pro- posed text, it will make the modified text (with changes clearly indicated) available to the public for at least 15 days before the SMGB adopts the regulations as re- vised. Please send requests for copies of any modified regulations to the attention of Jeffrey Schmidt at the ad- dress indicated above. The SMGB will accept written comments on the modified text of the regulation for 15 days after the date on which they are made available.

A V AILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, copies of the Final Statement of Reasons may be obtained by contacting Jeffrey Schmidt at the above address. A V AILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Rulemaking Ac- tion, the Initial Statement of Reasons, and the proposed

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1705 amended text of the regulation can be accessed through the SMGB website at: http://www.conservation. ca.gov/smgb. TITLE 15. DEPARTMENT OF CORRECTIONS AND REHABILITATION NOTICE IS HEREBY GIVEN that the Secretary of the California Department of Corrections and Rehabili- tation (CDCR) proposes to amend

Section 3763, and adopt new

Section 3767, of the California Code of Reg- ulations, Title 15, concerning flash incarceration of parolees. PUBLIC HEARING Date and Time: November 14, 2018 — 10:00 a.m. to 11:00 a.m. Place: California Department of Corrections and Rehabilitation Conference Room 100N 1515 S Street, North Building Sacramento, CA 95811 Purpose: To receive comments about this action. PUBLIC COMMENT PERIOD The public comment period will close November 14, 2018, at 5:00 p.m.

Any person may submit written comments by mail addressed to the primary contact per- son listed below, or by email to rpmb@cdcr.ca.gov, be- fore the close of the comment period. For questions re- garding the subject matter of the regulations, call the program contact person listed below. CONTACT PERSONS Primary Contact Josh Jugum Telephone: (916) 445−2228 Regulation and Policy Management Branch P.O. Box 942883 Sacramento, CA 94283−000I Back−Up Y. Sun Telephone: (916) 445−2269 Regulation and Policy Management Branch P.O. Box 942883 Sacramento, CA 94283−0001 Program Contact C.

Bell Division of Adult Parole Operations (916) 324−9325 AUTHORITY AND REFERENCE Government Code

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

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

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

Section 5054 provides that commencing July 1, 2005, the supervision, management, and control of the State prisons, and the responsibility for the care, cus- tody, treatment, training, discipline, and employment of persons confined therein are vested in the Secretary of the CDCR. PC

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

Section 5058 authorizes the Director to prescribe and amend rules and regulations for the administration of prisons and for the administration of the parole of persons. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Effective July 1, 2013, Assembly Bill 117, Criminal Justice Realignment, added flash incarceration under Penal Code (PC)

Section 3000.08(e). Flash incarcera- tion is a period of detention, between one and ten con- secutive days, in a city or a county jail due to a violation of a parolee’s conditions of parole.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1706 This action will: • Establish the Department’s authority to impose upon parolees a period of incarceration of up to 10 days in a county jail, as a remedial sanction for a parole violation, pursuant to statute. • Establish a limit, with specified exceptions, of three flash incarceration periods during the term of parole. • Update specified Department forms.

FORMS INCORPORATED BY REFERENCE CDCR Form 1676 (Rev. 04/13), Parole Violation Report CDCR Form 1502−B (Rev. 05/15), Probable Cause Determination CDCR Form 2278 (Rev. 06/18), Arrest Report SPECIFIC BENEFITS ANTICIPATED BY THE PROPOSED REGULATIONS The safety of California residents may be enhanced through improved parole supervision that allows for short periods of local incarceration for minor parole vi- olations, rather than revocation of parole and return to prison, which may be beneficial for the rehabilitation of parolees.

EV ALUATION OF CONSISTENCY/COMPATIBILITY WITH EXISTING LAWS AND REGULATIONS Pursuant to Government Code 11346.5(a)(3)(D), the Department has determined the proposed regulations are not inconsistent or incompatible with existing regu- lations. After conducting a review, the Department has concluded that these are the only regulations that con- cern flash incarceration of parolees. LOCAL MANDATES This action imposes no mandates on local agencies or school districts, or a mandate which requires reim- bursement of costs or savings pursuant to Government Code Sections 17500−17630.

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

COST IMPACTS ON REPRESENTATIVE PRIV ATE PERSONS OR BUSINESSES The Department is not aware of any cost impacts that a representative private person or business would nec- essarily incur in reasonable compliance with the pro- posed action.

SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT ON BUSINESS The Department has made an initial determination that the proposed regulations 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, because the proposed regulations place no obligations or require- ments on any business. EFFECT ON SMALL BUSINESSES The Department has determined that the proposed regulations will not affect small businesses.

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

The Department has determined that the proposed regulations may benefit the welfare of California resi- dents by improving rehabilitative outcomes for parolees. CONSIDERATION OF ALTERNATIVES The Department must determine that no reasonable alternative considered by the Department or that has

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1707 otherwise been identified and brought to the attention of the Department would be more effective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private per- sons than the proposed regulatory action, or would be more cost−effective to affected private persons and equally effective in implementing the statutory policy or other provisions of law.

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

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

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

The Department will accept written com- ments on the modified regulations for at least 15 days after the date on which they are made available. TITLE 28. DEPARTMENT OF MANAGED HEALTH CARE DATE: September 28, 2018 ACTION: Notice of Proposed Regulatory Action SUBJECT: Standard Prescription Drug Formulary Template, Adding

Section 1300.67.205 to Title 28, California Code of Regulations, Control No. 2017−5229. Public Proceedings Notice is hereby given that the Director of the Depart- ment of Managed Health Care (Department) proposes to add a regulation under the Knox−Keene Health Care Service Plan Act of 1975 (Knox−Keene Act) and corre- sponding regulations contained in Title 28, California Code of Regulations (CCR). The proposed regulation implements Senate Bill (SB) 1052 1 by specifying a standardized prescription drug formulary template health care service plans (health plans) must utilize for their prescription drug coverage.

The proposed regula- tion provides the formulary template, clarifying terms and educational information relevant to the provision of prescription drug benefits. This rulemaking action proposes to add

section 1300.67.205, Standard Prescription Drug Formulary Template, to title 28 of the CCR. Before undertaking this action, the Director of the Department (Director) will conduct written public proceedings, during which time any interested person, or such person’s duly autho- rized representative, may present statements, argu- ments, or contentions relevant to the action described in this notice. PUBLIC HEARING The Department will hold a public hearing regarding this regulation on November 13, 2018.

The public hearing will begin at 10:00 a.m. and end when all public comments have been received or 12:00 p.m., which- ever is earlier. The location of the public hearing is: 980 Ninth Street, 6th Floor Room of Inspiration Sacramento, CA 95814 The facility is accessible to persons with mobility im- pairments. Persons with sight or hearing impairments are requested to notify the contact person for these hear- ings in order to make special arrangements. At the hear- ing, any person may present statements or arguments orally or in writing relevant to the proposed action de- scribed in the Informative Digest.

The Department re- 1 Sen. Bill No. 1052 (2013−2014 Reg. Sess.) Ch. 575.

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1708 quests but does not require that persons who make oral comments at the hearing also submit a written copy of their testimony at the hearing. WRITTEN COMMENT PERIOD Any interested person, or his or her authorized repre- sentative, may submit written statements, arguments, or contentions (hereafter referred to as comments) relating to the proposed regulatory action by the Department.

Comments must be received by the Department, Office of Legal Services, by 5:00 p.m. on November 13, 2018, which is hereby designated as the close of the written comment period. Please address all comments to the Department of Managed Health Care, Office of Legal Services, Atten- tion: Jennifer Willis, Attorney IV .

Comments may be transmitted by regular mail, fax, or email: Website: http://www.dmhc.ca.gov/ LawsRegulations.aspx#open Email: regulations@dmhc.ca.gov Mail: Department of Managed Health Care Office of Legal Services 980 Ninth Street, Suite 500 Attn: Jennifer Willis, Attorney IV Sacramento, CA 95814 Fax: (916) 322−3968 Please note: If comments are sent via email or fax, there is no need to send the same comments by mail de- livery. All comments, including via email, fax, or mail, should include the author’s name and a U.S.

Postal Ser- vice mailing address so the Department may provide commenters with notice of any additional proposed changes to the regulation text. Please identify the action by using the Department’s rulemaking title and control number, Standard Pre- scription Drug Formulary Template, Control No. 2017−5229, in any of the above inquiries.

CONTACTS Inquiries concerning the proposed adoption of this regulation may be directed to: Jennifer Willis Attorney IV Department of Managed Health Care Office of Legal Services 980 9th Street, Suite 500 Sacramento, CA 95814 (916) 324−9014 (916) 322−3968 fax jennifer.willis@dmhc.ca.gov OR Emilie Alvarez Regulations Coordinator Department of Managed Health Care Office of Legal Services 980 9th Street, Suite 500 Sacramento, CA 95814 (916) 445−9960 (916) 322−3968 fax emilie.alvarez@dmhc.ca.gov A V AILABILITY OF DOCUMENTS The Department prepared and has available for pub- lic review the Initial Statement of Reasons, text of the proposed regulation and all information upon which the proposed regulation is based (rulemaking file).

This in- formation is available by request to the Department of Managed Health Care, Office of Legal Services, 980 9th Street, Sacramento, CA 95814, Attention: Regula- tions Coordinator. The Notice of Proposed Rulemaking Action, the pro- posed text of the regulation, and the Initial Statement of Reasons are also available on the Department’s website at http://www.dmhc.ca.gov/LawsRegulations.aspx# open. You may obtain a copy of the final statement of rea- sons once it is completed by making a written request to the Regulation Coordinator named above.

A V AILABILITY OF MODIFIED TEXT The full text of any modified regulation, unless the modification is only non−substantial or solely gram- matical in nature, will be made available to the public at least 15 days before the date the Department adopts the regulation. A request for a copy of any modified regula- tion(

s) should be addressed to the Regulations Coordi- nator. The Director will accept comments via mail, fax, or email on the modified regulation(

s) for 15 days after the date on which the modified text is made available. The Director may thereafter adopt, amend, or repeal the foregoing proposal substantially as set forth without further notice. AUTHORITY AND REFERENCE Health and Safety Code

section 1341, subdivision (a), authorizes the Department to regulate health plans. Health and Safety Code

section 1341.9, vests the Di- rector of the Department with all duties, powers, pur- poses, responsibilities, and jurisdiction as they pertain to health plans and the health plan business. Health and Safety Code

section 1344 grants the Di- rector the authority to adopt, amend, and rescind such

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1709 rules, forms and orders as necessary to carry out the pro- visions of the Knox−Keene Act. Health and Safety Code

section 1363.01 requires health plans offering prescription benefits to provide notice of such benefits in their Evidence of Coverage form. Health plans must also provide specific informa- tion regarding how a health plan determines which pre- scription drugs are included or excluded in their bene- fits. If requested by a member of the public, health plans must provide notification that existence of a drug on a formulary does not guarantee that an enrollee will be prescribed that drug for a particular medical condition. Health and Safety Code

section 1367.20 requires health plans that provide coverage for prescription drug benefits and maintain a formulary to provide to a re- questing party the most current list of prescription drugs available on the formulary. The prescription drugs must be listed by major therapeutic category showing pre- ferred drugs. Health and Safety Code

section 1367.24 requires health plans maintain an expeditious process for pre- scribing providers to obtain authorization for a medical- ly necessary nonformulary prescription drug. Health and Safety Code

section 1367.241 sets forth the use and requirement of prior authorization and step− therapy exception request forms and the timeline for re- sponses to non−urgent and exigent prior authorization and step−therapy exception requests. Health and Safety Code

section 1367.205 requires the Department, along with the California Department of Insurance (CDI), to create a formulary template for use by health plans. This

section also requires health plans to publicly post on their websites complete pre- scription drug formularies for each of the health plans’ products including information such as cost sharing, tiers and utilization controls. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Senate Bill 1052 directs the Department, in conjunc- tion with CDI and with input from at least one stake- holder meeting, to develop a standard formulary tem- plate. Health and Safety Code

section 1367.205, re- quires the Department to take into consideration exist- ing requirements for the reporting of formulary infor- mation established by the Centers for Medicaid and Medicare Services (CMS) and, to the extent feasible, take into consideration cost sharing information for drugs, including for drugs subject to coinsurance, when drafting the proposed regulation. This proposed regulation sets forth the requirements of Health and Safety Code section1367.205 and imple- ments the goals of SB 1052 by providing a standard pre- scription drug formulary template for use by all health plans.

The formulary template will ensure enrollees are provided with uniform drug benefit information. This regulation also creates easier access for enrollees to their prescription drug coverage as required under the Knox−Keene Act. The regulation serves an important purpose in increasing transparency in the area of pre- scription drug formularies. The regulation implements the requirements of Health and Safety Code

section 1367.205, by mandating the health plans to publicly post on their websites complete prescription drug for- mularies for each of the health plans’ products, includ- ing cost sharing tiers and utilization controls, such as prior authorization and step therapy requests. Current- ly, health plans do not use a common organizational structure for formularies, causing prescription drug for- mulary comparisons between health plans to be diffi- cult. Many health plans post only their most commonly prescribed drugs, not the entire list of pharmaceutical drugs covered under the prescription drug benefit.

The requirements of this regulation will assist enrollees, es- pecially those with chronic conditions who rely on pre- scription drugs to manage their illness, to make an easi- er comparison of prescription drug coverage among dif- ferent health plans and health plan products. This rulemaking action implements the requirement of SB 1052 for the Department to develop a standard- ized prescription drug formulary template for use by the health plans and enrollees. BROAD OBJECTIVES AND SPECIFIC BENEFITS OF THE REGULATION Pursuant to Government Code

section 11346.5, sub- division (a)(3)(C), the broad objective of this regulation is to specify the standard prescription drug formulary template health plans must utilize for their prescription drug benefits pursuant to the requirements of Health and Safety Code

section 1367.205. The objective of proposed subdivision (

a) addresses the problem of ambiguity in key terms and phrases used to draft a formulary as required under

section 1367.205 of the Health and Safety Code. Without this subdivi- sion, health plans employ varying

definitions that take away from the goal of

section 1367.205 of the Health and Safety Code to create consistency amongst pharma- cy benefits. Senate Bill 1052 is intended to ensure all health plan formularies are substantially similar and to assist health plan enrollees in understanding prescrip- tion drug benefits. Uniformity in key terms has the ben- efit of clarity for regulated entities, as well as efficient compliance and enforcement review by the Department. Subdivision (a)(1) defines “coverage document” to include all documents that encompass the enrollee’s

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1710 health care coverage under a health plan contract. The broad objective is to ensure health plans provide consis- tent information regarding drug benefits in the health plan documents by defining the scope of a coverage document. The specific benefit is that this definition al- lows for a reference for health plans to use and creates a term easily understandable for an enrollee.

Subdivision (a)(2) defines “dosage form.” The broad objective of this definition is to provide a consistent and uniform understanding of this term that is based on the federal United States Food and Drug Administration (FDA) definition. The specific benefit is this term is vi- tal for both health plans and enrollees in providing clari- ty and understanding of the form in which a prescription drug is prescribed (e.g.: liquid vs. tablet) and ensures all health plans utilize the same terminology for types and forms of prescription drugs.

Subdivision (a)(3) defines “established name.” The broad objective of this definition is to ensure that all health plans are appropriately listing and uniformly la- beling a prescription drug as generic and/or the brand name drug. The specific benefit is to prevent any ambi- guity as to the name brand or generic of the prescription drug and assist health plans and enrollees in implement- ing and understanding the types of drugs available on their formularies.

Subdivision (a)(4) defines “exception request.” The broad objective of this definition is to assist health plans and enrollees in the understanding of this term by noting the relevant Health and Safety Code provisions that im- pact this term. The specific benefit is ensuring a consis- tent use and understanding of this term under the Knox− Keene Act as well as consistent application of this term by health plans.

Subdivision (a)(5) defines “exigent circumstances.” The broad objective of this definition is to ensure health plans and enrollees have a uniform understanding of this term and how it applies to specific circumstances that may exist for an enrollee and impact the enrollee’s access to prescription drugs. The specific benefit is en- suring consistent use and application of this term as de- fined in Health and Safety Code

section 1367.241, sub- division (h)(2). Subdivision (a)(6) defines “formulary.” The broad objective of this definition is requiring health plans pro- vide a uniform application of this term to better assist enrollees in understanding their available drug benefits. The specific benefit of this definition is ensuring all health plans are utilizing the definition of a formulary as set forth in

section 1367.205 of the Health and Safety Code. The definition of this term ensures consistency amongst various Knox−Keene Act provisions involv- ing pharmacy benefits. This term eliminates confusion for both health plans and enrollees that might be caused by inconsistent definition and application of this term. Subdivision (a)(7) defines “nonformulary.” The broad objective of this definition is ensuring uniform understanding of this term by health plans and enrollees for prescription drug benefits. The specific benefit of this definition is implementing subdivision (

i) of Health and Safety Code

section 1367.24 and ensuring consis- tency of terms within the Knox−Keene Act. This defini- tion is necessary for uniform compliance with the law and enabling enrollees to better understand their pre- scription drug rights when reviewing health plan for- mulary documents. Subdivision (a)(8) defines “prescription drug.” The broad objective of this definition is ensuring consistent application and understanding of this term by health plans and enrollees. The specific benefit is defining this term in a consistent manner with Health and Safety Code sections 1367.002 and 1367.25, and rule 1300.67.24.

This definition ensures consistency of this term under the provisions of the Knox−Keene Act and will enable health plans to better understand their obli- gations regarding enrollee access to prescription drug benefits. Subdivision (a)(9) defines “product.” The broad ob- jective of this definition is to ensure uniform under- standing and application of this term by all health plans. The specific benefit is to ensure compliance with sec- tion 1367.27 of the Health and Safety Code.

Section 1367.27 contains the uniform provider directory stan- dards requirements and requires health plans to provide information in their directories for each product the health plan markets. This further ensures uniform use of the term “product.” Defining this term also ensures con- sistent understanding of the standards throughout all health plan documents and alleviates potential confu- sion for both the health plans and the enrollees. Subdivision (a)(10) defines “quantity limit.” The broad objective of this definition is to ensure uniform understanding of this term by health plans and en- rollees.

The specific benefit is that this term furthers the implementation of Health and Safety Code

section 1367.205, which requires the formulary template to in- clude utilization control information for drug benefits. This term is defined consistently with the National As- sociation of Insurance Commissioners’ (NAIC) “Health Carrier Prescription Drug Benefit Manage- ment Model Act.” The Department is utilizing the defi- nition proposed by the NAIC as it has been vetted and reviewed by the NAIC for use with prescription drug coverage and is understood within the healthcare indus- try.

Defining quantity limit is essential to an enrollee’s understanding of their prescription drug benefits and any limits on the quantity of a prescription drug that are allowed under their coverage. Subdivision (a)(11) defines “strength”. The broad objective of this definition is to ensure uniform under-

CALIFORNIA REGULATORY NOTICE REGISTER 2018, VOLUME NO. 39-Z 1711 standing and application of this term and to allow for an easier understanding of this term by both the health plans and the enrollees. The specific benefit is that the definition ensures enrollees are provided a plain Eng- lish definition of the term’s meaning. The strength of a prescription drug is vital to an enrollee’s understanding of their prescription drug benefit and its application to their medical condition and ensuring the enrollee is clearly informed about how the term is used within a health plan formulary. Subdivision (

b) provides the overall format of a for- mulary and requires a formulary to be searchable by en- rollees. By setting forth the specific format and infor- mation required of health plans under subdivision (b), the formulary template provides enrollees with uniform and consistent information. This provision also requires all formularies to contain the following sections:

(1) Coverage Page;

(2) Table of Contents;

(3) Information- al Section;

(4) Categorical List of Prescription Drugs; and

(5) Index. The broad objectives and specific bene- fits for including these sections are discussed further below except for the table of contents requirement. The broad objective of the table of contents is to provide an- other easily understood method for enrollees to locate their prescription drugs and other information within the formulary. Subdivision (

c) sets forth the cover page require- ments of a formulary. The broad objective of this subdi- vision is to make available a cover page that provides uniform and consistent information to all enrollees. This also ensures all enrollees are viewing substantially similar formulary templates regardless of their health plan. The specific benefit implementing subdivision (b)(1) of the formulary template by setting out the spe- cific information that must be included in the cover page to meet the regulatory requirement.

This require- ment benefits both health plans and enrollees by setting forth specific criteria to be included in a drug formulary and easy understanding of the location of health plan in- formation contained in the formulary document. This subdivision is also supported by the California Health Care Foundation’s (CHCF) research.

A survey taken by the CHCF found that a cover page of a formulary is vital as three−quarters of individuals surveyed wanted the cover page of a formulary to specify the type of cover- age and product information. 2 Subdivision (c)(1) requires all formularies to contain the name of the document. The broad objective is to en- sure that all formularies are consistently and clearly identified by the name referenced in all health plan doc- uments. The specific benefit is that enrollees will be able to identify the formulary for each product of a health plan quickly and efficiently.

Subdivision (c)(2) requires all formularies to contain the name of the health plan. The broad objective is to make clear who is offering the particular formulary. The specific benefit is that this will ensure from the begin- ning that enrollees are aware of each health plan formu- lary. This will assist enrollees in determining whether a particular benefit is included in a health plan’s formula- ry, which may impact whether the enrollees choose a particular health plan.

Subdivision (c)(3) requires all health plans to name each health plan product applicable to a formulary and requires the product names to comply with the uniform provider directory standards set forth in Health and Safety Code

section 1367.27. Health and Safety Code

section 1367.26, subdivision (b), requires that health plans provide the directory or directories for the specif- ic network offered for each health plan product using a consistent product naming, numbering or other classifi- cation method. The broad objectives of this subdivision are to ensure all enrollees are able to determine the for- mularies that apply to specific health plan products and ensure conformity of the product names across all health plan coverage documents. The specific benefit is that this subdivision implements

section 1367.205, sub- division (a)(1). This subdivision of the statute requires health plans to post a formulary or formularies for each product offered by a health plan on the health plan’s website. This subdivision will also allow enrollees to compare formularies of different health plans in a man- ner that is easy and accessible. Subdivision (c)(4) requires a formulary to set forth the date the formulary was last updated.

The broad ob- jective is to ensure all health plans notify enrollees and prospective enrollees of the effective date to ensure en- rollees are reviewing the most accurate up−to−date in- formation. The specific benefits are ensuring enrollees are aware of the date when a formulary was last updated and enabling enrollees to understand they are reviewing the most recent formulary applicable to their health plan product. This provision also assists enrollees with com- paring the most recent versions of various health plan formularies when making coverage decisions.

Subdivision (c)(5) furthers the implementation of subdivision (c)(4) of the formulary template by requir- ing notification to enrollees that a formulary is subject to change and outdated copies of a formulary should be discarded by enrollees. The broad objective of this sub- division is to eliminate any misunderstanding or confu- sion for enrollees when accessing drug benefits for their plan product. The specific objectives are to ensure en- rollees understand they