GAVIN NEWSOM, GOVERNOR OFFICE OF ADMINISTRATIVE LAW REGISTER 2019, NUMBER 44−Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW NOVEMBER 1, 2019 PROPOSED ACTION ON REGULATIONS TITLE 2. CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Social Security Administrative Fees — Notice File Number Z2019−1022−06 .............................. 1497 TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION Conflict−of−Interest Code — Notice File Number Z2019−1022−05 ...................................... 1499 Amendment State Agency: Department of State Hospitals Department of Consumer Affairs Adoption Multi−County: John Adams Academy TITLE 5. COMMISSION ON TEACHER CREDENTIALING Fees — Notice File Number Z2019−1022−02 ....................................................... 1501 TITLE 8. CALIFORNIA APPRENTICESHIP COUNCIL Public Works Apprenticeship Requirements — Notice File Number Z2019−1022−01 ........................ 1504 TITLE 14.

STATE MINING AND GEOLOGY BOARD Appeals of Orders to Comply with Surface Mining and Reclamation Act (SMARA) — Notice File Number Z2019−1017−03 ..................................... 1508 TITLE 14. STATE MINING AND GEOLOGY BOARD Forfeiture of Financial Assurance Mechanisms — Notice File Number Z2019−1017−02 ..................... 1512 TITLE 14. STATE MINING AND GEOLOGY BOARD Reclamation Plan Appeals — Notice File Number Z2019−1017−01 ..................................... 1516 (Continued on next page) Time- Dated Material

TITLE 23. CALIFORNIA WATER COMMISSION Procedure for Water Infrastructure Improvements for the Nation (WIIN) Act Determination — Notice File Number Z2019−1022−04 ................................ 1519 TITLE 23.

STATE WATER RESOURCES CONTROL BOARD Underground Storage Tank Regulations — Notice File Number Z2019−1021−01 ........................... 1524 GENERAL PUBLIC INTEREST DEPARTMENT OF REAL ESTATE Annual Fee Review Hearing .................................................................... 1528 OCCUPATIONAL SAFETY AND HEALTH STANDARDS BOARD Public Meeting and Business Meeting ............................................................. 1529 OFFICE OF ENVIRONMENTAL HEALTH HAZARD ASSESSMENT Initiation of Process to Develop Public Health Goals (PHGs) .......................................... 1530 DISAPPROV AL DECISION DEPARTMENT OF JUSTICE California Pawn and SecondhandDealer System Regulations .......................................... 1530

SUMMARY OF REGULATORY ACTIONS Regulations filed with the Secretary of State ........................................................ 1531 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 2019, VOLUME NUMBER 44-Z PROPOSED ACTION ON REGULATIONS Information contained in this document is published as received from agencies and is not edited by Thomson Reuters. TITLE 2. CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM NOTICE IS HEREBY GIVEN that the Board of Ad- ministration (Board) of the California Public Employ- ees’ Retirement System (CalPERS) proposes to take the regulatory action described below in the Informative Digest after considering public comments, objections, or recommendations regarding the proposed regulatory action. I. PROPOSED REGULATORY ACTION In this filing, the Board proposes adding

Article 1.5, “Administration”, to Subchapter 2 of

Chapter 2 of Divi- sion 1 of Title 2 of the California Code of Regulations and proposes adding

section 592.1, “Social Security Administrative Fees” under

Article 1.5. The proposed regulatory action seeks to establish fees payable by cer- tain public agencies per Government Code (GC) sec- tions 22551, 22552, and 22560, which is necessary for the continued administration of the State Social Securi- ty Administrator (SSSA) program. II. WRITTEN COMMENT PERIOD Any interested person, or his or her authorized repre- sentative, may submit written comments relevant to the proposed regulatory action. The written comment peri- od has been established commencing on November 1, 2019 and closing on December 17, 2019.

The Regula- tion Coordinator must receive all written comments by the close of the comment period. Comments may be submitted by e−mail to Regulation_Coordinator@ calpers.ca.gov, or mailed to the following address: Hoang Tran, Regulation Coordinator California Public Employees’ Retirement System P.O. Box 942702 Sacramento, CA 94229−2702 Telephone: (916) 795−3038 III.

PUBLIC HEARING A public hearing will not be scheduled unless an in- terested person, or his or her duly authorized represen- tative, submits a written request for a public hearing to CalPERS no later than 15 days before the close of the written comment period. Notice of the time, date, and place of the hearing will be provided to every person who has filed a request for notice with CalPERS. IV .

ACCESS TO HEARING ROOM The hearing room will be accessible to persons with mobility impairments, and the room can be made acces- sible to persons with hearing or visual impairments up- on advance request to the CalPERS Regulation Coordinator. V . AUTHORITY AND REFERENCE Under GC

section 22500, the Board has authority to take regulatory action to carry into effect the provisions of

Part 4, “Federal Old Age and Survivors’ Insurance”, under Division 5 of Title 2 of the Government Code. The proposed regulation establishes a fee to administer the SSSA program per GC sections 22551, 22552, and 22560. VI. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW In 1955, the Governor’s Office designated CalPERS as the SSSA for the State of California per GC sections 22200 and 22204. The Social Security Administration (SSA) requires each state to designate an official to ad- minister the state’s

Section 218 Agreement. A

Section 218 Agreement is a voluntary agreement between the state and the SSSA to provide Social Security and Medicare coverage for state and local government em- ployees. CalPERS’ SSSA program processes requests from public agencies for coverage under the State of California’s

Section 218 Agreement and for modifica- tions thereto, executes annual employer information re- quests, responds to employer inquiries, and performs education and outreach. Between 1955 and 1986, the SSSA was also responsi- ble for collecting Social Security and Medicare taxes from all public agencies in California. CalPERS stopped collecting taxes from public agencies when the Omnibus Budget Reconciliation Act of 1986 moved the responsibility of collecting taxes from CalPERS to the Internal Revenue Service. The SSSA has been operat- ing since 1987 using the interest that was earned in the Old Age and Survivors’ Insurance (OASI) Revolving Fund per GC

section 22601. The OASI Fund reserves 1497

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z have diminished and SSA does not provide any funding for the SSSA program. GC sections 22551, 22552, and 22560, however, authorize CalPERS to collect fees from public agencies to cover the costs associated with administering the SSSA program. This proposed regulation would establish a new fee structure to fund the SSSA program for public agencies whose employees are or will be covered by the State’s

Section 218 Agreement. Consistency Evaluation CalPERS conducted a review for any related State regulation and found that there are no other State regu- lations concerning the implementation of fees for the SSSA program. Therefore, CalPERS has determined that the proposed regulation is not inconsistent or in- compatible with existing regulations. Anticipated Benefit Adoption of this regulation will benefit public agen- cies by providing a sustainable funding source for the SSSA program, a transparent fee structure, and an infla- tion adjustment calculation. VII.

PRENOTICE CONSULTATION WITH THE PUBLIC No prenotice consultation with the public was done, as all public comments and hearing requests can be sub- mitted during the written comment period. VIII. EFFECT ON SMALL BUSINESS The regulatory action does not affect small private businesses. The proposed regulation only applies to public agencies that have requested or that will request that their employees be covered under the State’s Sec- tion 218 Agreement. IX. DISCLOSURES REGARDING THE PROPOSED REGULATORY ACTION The Board has made the following initial determinations: A.

MANDATE ON LOCAL AGENCIES AND SCHOOL DISTRICTS: The proposed regulatory action does not impose mandates on local agencies and school districts. B. COSTS OR SA VINGS TO ANY STATE AGENCY: State agencies covered under the State’s

Section 218 Agreement will incur costs associated with this proposed regulation. There is an annual fee ranging from $200 to $2,500 depending on the number of employees per state agency. C. COST TO ANY LOCAL AGENCY OR SCHOOL DISTRICT: Local agencies and school districts that have requested or that will request to have their employees be covered under the State’s

Section 218 Agreement will incur costs associated with this proposed regulatory action. There is a $650 fee to establish coverage or modify an existing coverage under the State’s

Section 218 Agreement and an annual fee ranging from $200 to $2,500 depending on the number of employees per local agency or school district. D. NONDISCRETIONARY COSTS OR SA VINGS IMPOSED ON LOCAL AGENCIES: Local agencies that have requested or that will request to have their employees be covered under the State’s

Section 218 Agreement will incur costs associated with this proposed regulation. There is a $650 fee to establish coverage or modify an existing coverage under the State’s

Section 218 Agreement and an annual maintenance fee ranging from $200 to $2,500 depending on the number of employees per local agency. E. COSTS OR SAVINGS IN FEDERAL FUNDING TO THE STATE: The proposed regulatory action will not result in costs or savings in federal funding to the State of California. F. ADVERSE ECONOMIC IMPACT: The proposed regulatory action will not have a significant statewide adverse economic impact affecting businesses including the ability of businesses in California to compete with businesses in other states. G.

COST IMPACT ON REPRESENTATIVE PRIV ATE PERSONS OR BUSINESSES: CalPERS is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed regulatory action because the proposed regulatory action only applies to public agencies that have requested or that will request to have their employees be covered under the State’s

Section 218 Agreement. H. RESULTS OF THE ECONOMIC IMPACT ANALYSIS: The primary benefit of the proposed regulatory action is that it will generate needed revenue for the SSSA program while providing transparency and clarity for public agencies that have requested or that will request to have their employees be covered under the State’s

Section 218 Agreement. The proposed regulatory action is not intended to create or eliminate jobs within California; and will not: (1) create new businesses or eliminate existing businesses within California; (2) affect the expansion of businesses currently 1498

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z doing business within California; or (3) affect the health and welfare of California residents, worker safety, or the State’s environment. I. EFFECT ON HOUSING COSTS: The proposed regulatory action has no effect on housing costs. J. COST TO ANY LOCAL AGENCY OR SCHOOL DISTRICT WHICH MUST BE REIMBURSED IN ACCORDANCE WITH GC

SECTION 17500 THROUGH

SECTION 17630: There are no costs to any local agency or school district which must be reimbursed in accordance with GC

section 17500 through

section 17630. X. CONSIDERATION OF ALTERNATIVES In accordance with GC

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

The Board invites interested persons to present state- ments or arguments with respect to alternatives to the proposed regulations at a hearing or during the written comment period. XI. CONTACT PERSON Inquiries concerning the proposed administrative ac- tion may be delivered to: Hoang Tran, Regulation Coordinator California Public Employees’ Retirement System P.O. Box 942702 Sacramento, CA 94229−2702 Telephone: (916) 795−3038 The backup contact person for these inquiries is: Anthony Martin California Public Employees’ Retirement System P.O.

Box 942702 Sacramento, CA 94229−2702 Telephone: (916) 795−3038 Please direct requests for copies of the proposed text of the regulation, the Initial Statement of Reasons, the modified text of the regulation, if any, or other informa- tion upon which the rulemaking is based to Hoang Tran, Regulation Coordinator at the above address. XII. A V AILABILITY OF THE INITIAL STATEMENT OF REASONS AND TEXT OF PROPOSED REGULATION, AND RULEMAKING FILE The Board will have the entire rulemaking file avail- able for inspection and copying throughout the rule- making process at its office at 400 Q Street, Sacramen- to, CA 95811.

As of the date this notice is published in the Notice Register, the rulemaking file consists of this notice, the proposed text of the regulation, and the Ini- tial Statement of Reasons. Copies may be obtained by contacting the CalPERS Regulation Coordinator at the mailing address or phone number listed shown in Sec- tion XI. For immediate access, the regulatory material regard- ing this action can be accessed at CalPERS’ website at https://www.calpers.ca.gov/page/about/laws− regulations/regulatory−actions. XIII.

A V AILABILITY OF CHANGED OR MODIFIED TEXT After receiving comments from the public and con- sidering all timely and relevant comments received, the Board may adopt the proposed regulation substantially as described in this notice. If the Board makes modifica- tions which are sufficiently related to the originally pro- posed text, it will make the modified text (with the changes clearly indicated) available to the public for at least 15 days before the Board adopts the regulation as revised.

Please send requests for copies of any modified regulation to the attention of the CalPERS Regulation Coordinator at the mailing address shown in

Section XI. The Board will accept written comments on the modi- fied regulation for 15 days after the date on which it is made available. XIV . A V AILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, copies of the Final Statement of Reasons may be obtained by contacting the CalPERS Regulation Coordinator at the mailing address shown in

Section XI. 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- 1499

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z 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 STATE AGENCY: Department of State Hospitals Department of Consumer Affairs ADOPTION MULTI−COUNTY: John Adams Academy A written comment period has been established com- mencing on November 1, 2019 and closing on Decem- ber 16, 2019.

Written comments should be directed to the Fair Political Practices Commission, Attention Amanda Apostol, 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 December 16, 2019. 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 Amanda Apostol, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 324−3854. 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- spective agency. Requests for copies from the Commis- sion should be made to Amanda Apostol, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322−5660. 1500

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z TITLE 5. COMMISSION ON TEACHER CREDENTIALING The Commission on Teacher Credentialing (Com- mission) proposes to take the regulatory action de- scribed below after considering all comments, objec- tions, and recommendations regarding the proposed ac- tion. A copy of the proposed regulations is attached with the added text underlined and the deleted text lined out. The Commission has not scheduled a public hearing on this proposed action.

However, the Commission will hold a hearing if it receives a written request for a public hearing from any interested person, or his or her autho- rized comment period. WRITTEN COMMENT PERIOD Any interested person, or his or her authorized repre- sentative, may submit written comments by fax, through the mail, or by email relevant to the proposed action. The written comment period closes on Decem- ber 16, 2019. Comments must be received by that time. You may fax your response to (916) 322−0048; write to the Commission on Teacher Credentialing, attn.

Vanessa Ragudo, 1900 Capitol Avenue, Sacramento, California 95811; or submit an email to vragudo@ctc.ca.gov. AUTHORITY AND REFERENCE Education Code

section 44225 authorizes the Com- mission to adopt the proposed regulations. The pro- posed regulations implement, interpret, and make spe- cific Education Code

section 44235 pertaining to fees. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW This rulemaking action proposes amendments to Title 5 of the California Code of Regulations (CCR) re- lated to credential fees as approved by the Commission at the August 2019 meeting. The proposed amendments also include general clean−up of the regulation section. The proposed amendments to Title 5 of the California Code of Regulations (CCR) will align the application processing fee with that originally set in the 2015−16 Budget Act (AB 104, Chap. 13, Stats. 2015).

In addi- tion, the proposed amendments update the fee required for processing fingerprints through the Federal Bureau of Investigation and delete all references to duplicate documents and name changes. The Commission on Teacher Credentialing (Com- mission) is referred to as a “special fund” agency be- cause the daily operations of the agency are supported by two special funds:

(1) Teacher Credentials Fund; and

(2) Test Development and Administration Account. The Commission does not receive a General Fund allo- cation to support its daily operations. The support comes from the fees collected as the result of issuing credentials and administering the various educator preparation examinations for candidates. The credential fee, established annually in the Budget Act, had fallen below the statutory limit of $70 at the di- rection of the Administration and the Legislature since 1998, and was at $55 from 2000−2012.

The credential processing fee restoration included in the 2012−2013 Budget Act (AB 1464, Chap. 21, Stats. 2012) aligned the credential fee with the statutory limit of $70. How- ever, as noted at the June 2013 Commission meeting, this action would only partially address the deficit issue and additional measures required at the time to address the deficit would only provide a temporary solution to the issue of maintaining a stream of revenue sufficient to support the operating budget of the Commission. The 2015−16 Budget Act amended Education Code (EC)

section 44235 and set the statutory limit for credential fees at $100. Aligning the credential application fee in regulations with the current limit will allow the Com- mission to maintain the essential functions of the agency.

BENEFITS OF THE REGULATIONS The Commission anticipates that the proposed amendments will benefit the welfare of students attend- ing public schools in the State of California by allowing the Commission to maintain the essential functions of the agency, and fulfill its mission to ensure integrity, rel- evance, and high quality in the preparation, certifica- tion, and discipline of the educators who serve all of California’s diverse students.

The Commission does not anticipate that the proposed regulations will result in the protection of public health and safety, worker safety, or the environment, the prevention of social in- equity or an increase in openness and transparency in business and government. EV ALUATION OF INCONSISTENCY/INCOMPATIBILITY WITH EXISTING STATE REGULATIONS The proposed amendments are not inconsistent or in- compatible with existing regulations. After conducting a review for any regulations that would relate to or af- fect this area, these are the only regulations that concern credential fees as approved by the Commission. 1501

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z PROPOSED AMENDMENTS TO REGULATIONS

Section 80487 (a)(1): Proposed amendments to this subsection amend the application processing fee to the current statutory limit of $100.00 to align with EC

section 44235 and add “a” before “credential” to correct a for- mer typographical error. (a)(2): Proposed amendments delete all references to requests for duplicate documents as well as the lan- guage pertaining to lost or destroyed documents as the Commission discontinued the printing of documents on September 1, 2008. The official record of credentials, permits, authorizations, and certificates is the Commis- sion’s website per 5 CCR

section 80001(e). The pro- posed amendments also delete the processing fee for name change requests, which can be done at no cost but still require a physical application and submission of pertinent legal documentation. Individuals may now update their other personal information (address, tele- phone number, and email address) free of charge via the CTC Online system implemented May 29, 2012.

Proposes adding the phrase “upgrading a Certificate of Eligibility to a preliminary” to make specific the process of how to change the certificate into a valid cre- dential eligible for employment use. (a)(5): Proposed amendments to this subsection align the fee with the current charges assessed by the Federal Bureau of Investigation. (b): Proposed amendments delete all references to re- quests for duplicate documents as well as the language pertaining to lost or destroyed documents as the Com- mission discontinued the printing of documents on Sep- tember 1, 2008.

The official record of credentials, per- mits, authorizations, and certificates is the Commis- sion’s website per 5 CCR

section 80001(e). The pro- posed amendments also delete the processing fee for name change requests, which can be done at no cost but still require a physical application and submission of pertinent legal documentation. Individuals may now update their other personal information (address, tele- phone number, and email address) free of charge via the CTC Online system implemented May 29, 2012. (e): Proposed addition of the word “met” for clarity. Note: Proposing deletion of EC

section 44352 as a Reference as that statute pertains to duplicate docu- ments, but the Commission discontinued the printing of documents on September 1, 2008. The official record of credentials, permits, authorizations, and certificates is the Commission’s website per 5 CCR

section 80001(e). In addition, proposing the deletion of EC sections 44253.10 and 52178 as References, which should have been deleted when

section 80487 was last amended in 2007 (section 44253.10 pertains to issuance of the Cer- tificate of Completion of Staff Development and sec- tion 52178 pertains to bilingual education — topics no longer included in 5 CCR

section 80487). Also propos- ing the deletion of EC

section 52134 as a Reference as this

section of EC was repealed with the passage of As- sembly Bill 2587 (Chapter 922, Statutes 1994). DOCUMENTS RELIED UPON IN PREPARING REGULATIONS August 2019 Commission agenda item 4A: https:// www.ctc.ca.gov/docs/default−source/commission/ agendas/2019−08/2019−08−4a.pdf. June 2015 Commission agenda item 4A: http:// www.ctc.ca.gov/commission/agendas/2015−06/ 2015−06−4A.pdf. Coded Correspondence 15−04: http://www.ctc.ca. gov/notices/coded/2015/1504.pdf. DISCLOSURES REGARDING THE PROPOSED ACTIONS The Commission has made the following initial determinations: Mandate to local agencies or school districts: None.

Other non−discretionary costs or savings imposed upon local agencies: None. Cost or savings to any state agency: None. Cost or savings in federal funding to the state: None. Significant effect on housing costs: None. Significant statewide adverse economic impact di- rectly affecting businesses including the ability of Cali- fornia businesses to compete with businesses in other states: None. These proposed regulations will not impose a man- date on local agencies or school districts that must be re- imbursed in accordance with

Part 7 (commencing with

section 17500) of the Government Code. Cost impacts on a representative private person or business: The Commission 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. In accordance with Government Code

section 11346.3(b), the Commission has made the following assessments regarding the proposed regulation amendments: Creation or Elimination of Jobs Within the State of California The proposed amendments pertain to teaching cre- dentials that authorize service in California’s public schools. The proposed amendments will not create or eliminate jobs in California. 1502

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z Creation of New or Elimination of Existing Businesses Within the State of California The proposed amendments pertain to teaching cre- dentials that authorize service in California’s public schools. The proposed amendments will not create or eliminate existing businesses in California. Expansion of Businesses or Elimination of Existing Businesses Within the State of California The proposed amendments pertain to teaching cre- dentials that authorize service in California’s public schools.

As a result of the proposed amendments, no ex- isting businesses in California will be expanded or eliminated. Benefits of the Regulations The Commission anticipates that the proposed amendments will benefit the welfare of students attend- ing public schools in the State of California by allowing the Commission to maintain the essential functions of the agency, and fulfill its mission to ensure integrity, rel- evance, and high quality in the preparation, certifica- tion, and discipline of the educators who serve all of California’s diverse students.

The Commission does not anticipate that the proposed regulations will result in the protection of public health and safety, worker safety, or the environment, the prevention of social in- equity or an increase in openness and transparency in business and government. Effect on Small Businesses The proposed amendments do not affect small busi- nesses because they only apply to individuals seeking teaching credentials that authorize service in Califor- nia’s public schools. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5, subdivision (a)(13), the Commission must de- termine that no reasonable alternative considered by the agency or that has otherwise been identified and brought to the attention of the agency would be more ef- fective in carrying out the purpose for which the action is proposed, would be as effective as and less burden- some to affected private persons than the proposed ac- tions, or would be more cost−effective to affected pri- vate persons and equally effective in implementing the statutory policy or other provision of law.

No alterna- tives have yet been proposed that will be less burden- some and equally effective. Evidence Relied Upon to Support the Initial De- termination That the Regulation Will Not Have a Significant Adverse Economic Impact on Business: The proposed regulations will not have a significant ad- verse economic impact upon business. The proposed regulations apply only to individuals seeking teaching credentials that authorize service in California’s public schools.

CONTACT PERSON/FURTHER INFORMATION/A V AILABILITY OF THE INITIAL STATEMENT OF REASONS AND TEXT OF PROPOSED REGULATIONS General or substantive inquiries concerning the pro- posed action may be directed to Vanessa Ragudo by telephone at (916) 323−8758 or Vanessa Ragudo, Com- mission on Teacher Credentialing, 1900 Capitol Av- enue, Sacramento, CA 95811. General question in- quiries may also be directed to David Crable at (916) 323−5119 or at the address mentioned in the previous sentence.

Upon request, a copy of the express terms of the proposed action and a copy of the initial statement of reasons will be made available. This information is also available on the Commission’s website at www.ctc.ca.gov. In addition, all the information on which this proposal is based is available for inspection and copying. A V AILABILITY OF THE RULEMAKING FILE The entire rulemaking file is available for inspection and copying throughout the rulemaking process at the Commission office at the above address. Copies may be obtained by contacting Vanessa Ragudo at the address or telephone number provided above.

MODIFICATION OF PROPOSED ACTION If the Commission proposes to modify the actions hereby proposed, the modifications (other than nonsub- stantial or solely grammatical modifications) will be made available for public comment for at least 15 days before they are adopted. A V AILABILITY OF FINAL STATEMENT OF REASONS The Final Statement of Reasons is submitted to the Office of Administrative Law as part of the final rule- making package, after the public comment period. Up- on its completion, copies of the Final Statement of Rea- sons may be obtained by contacting Vanessa Ragudo.

A V AILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Rulemaking, the Initial Statement of Reasons, and the text of the regula- 1503

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z tions in underline and strikeout can be accessed through the Commission’s website at www.ctc.ca.gov. TITLE 8. CALIFORNIA APPRENTICESHIP COUNCIL SECTIONS 202, 205, 227, 228, 229 and 230.1, and 231−232.7 Notice is hereby given that the California Appren- ticeship Council (“Council”) proposes to amend sec- tions 202, 205, 227, 228, 229 and 230.1, and to repeal sections 231 through 232.7 of its regulations in Division 1,

Chapter 2, of Title 8 of the California Code of Regula- tions. The Council proposes to amend and repeal these regulations pursuant to its general rulemaking authority under Labor Code

Section 3071 and its specific rule- making authority under Labor Code

Section 1777.7, with respect to the employment of registered appren- tices on public works. The Council is proposing amend- ments for the purpose of implementing, interpreting, and making more specific the requirements of Labor Code Sections 1777.5 and 1777.7. These amendments will revise the definition of “apprenticeable occupa- tion,” add

definitions of “work process” and “registered apprentice,” restate the scope of apprenticeship public works regulations, delete a definition of “worker,” re- state and clarify the requirements for employing ap- prentices at apprentice rates, including related notifica- tion requirements. The Council also proposes to amend two sections in order to revise cross−references to other procedural regulations, and it proposes to repeal a full set of hearing regulations rendered obsolete by the 2012 and 2014 amendments to

Section 1777.7. (Stat. 2012, ch. 46,

section 96 (SB 1038) and Stat. 2014, ch. 297 sec- tion 3 (AB 2744).) In addition, the Council is proposing additional amendments to sections 205 and 212.2 that are part of a separate rulemaking on Apprenticeship Program Ap- plications, Evaluations, and Reporting to implement SB 56 (2011) and certain parts of AB 235 (2018). Those amendments are included here to insure the public is aware of all changes under consideration and avoid the possibility of the Council adopting different versions of the same sections.

PUBLIC HEARINGS The Council will hold public hearings on these pro- posals as follows: December 12, 2019 at 10:00 a.m. until all comments have been received. Junipero Serra State Building, Carmel Room 320 W. Fourth Street Los Angeles, CA 90013 December 16, 2019 at 10:00 a.m. until all comments have been received. Elihu Harris Oakland State Building, Room 12 1515 Clay Street Oakland, CA 94612 At the hearing, any person may present statements or arguments, orally or in writing, relevant to the propos- als.

The Council requests but does not require that per- sons who make oral comments at the hearing also sub- mit a written copy of their testimony at the hearing. WRITTEN COMMENT PERIOD Any person or authorized representative may submit written comments relevant to the proposals by mail or delivery to Eric Rood, Council Secretary and Chief, Di- vision of Apprenticeship Standards (“DAS”), 1515 Clay Street, Suite 301, Oakland, CA 94612 or by email to CACsuggest@dir.ca.gov. To be considered, written comments must be received by the Council no later than 5:00 p.m. on December 18, 2019.

AUTHORITY AND REFERENCE Authority: Labor Code Sections 1777.7 and 3071. Reference: Labor Code Sections 1777.5, 1777.6, 1777.7, 3073.1, 3075, 3075.5, 3075.6 and 3075.7 of the Labor Code. INFORMATIVE DIGEST AND POLICY STATEMENT OVERVIEW The Council and DAS oversee and regulate appren- ticeship programs in the State of California. The Coun- cil’s responsibilities include adopting regulatory stan- dards governing the approval and operation of building and construction industry trades and firefighter pro- grams, consistent with statutory requirements.

The DAS’s responsibilities include approving and auditing programs, in accordance with standards adopted by the Council, to give workers skills and training needed to obtain well−paying jobs and provide employers with a highly skilled and experienced workforce. This rulemaking focuses on the employment of ap- prentices on public works, which is governed by re- quirements and procedures set forth in Labor Code Sec- tions 1777.5, 1777.6, and 1777.7. The Council’s regula- tory authority with respect to these requirements is set 1504

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z forth in subdivision (

g) of

Section 1777.7, as follows. “The

interpretation of

Section 1777.5 and the substan- tive requirements of this

section applicable to contrac- tors or subcontractors shall be in accordance with the regulations of the California Apprenticeship Council.” In other words, the Council establishes the rules on how to interpret and comply with statutory requirements. Hearing Regulations: Historically, the DAS enforced the statutory and regulatory requirements governing the employment of apprentices on public works, through a penalty assessment and appeals process prescribed in prior versions of

Section 1777.7. However, a 2012 amendment to that

section (Stat. 2012, ch. 46,

section 96 (SB 1038)) shifted these enforcement responsibili- ties from DAS to the Division of Labor Standards En- forcement (DLSE), which historically had authority to enforce all other public works requirements in the La- bor Code. The same amendment eliminated the sepa- rate appeal process for DAS determinations in

Section 1777.7, and required instead that determinations and appeals follow the same procedures prescribed for civil wage and penalty assessments and appeals (for prevail- ing wage violations) in Labor Code

Section 1742. In 2014,

Section 1777.7 was rewritten to more closely re- semble the prevailing wage enforcement and appeal procedures, including a requirement for DLSE to issue a civil wage and penalty assessment in accordance with Labor Code

Section 1741, when determining and as- sessing penalties for public works apprenticeship viola- tions. (Stat. 2014, ch. 297

section 3 (AB 2744).) These statutory amendments to Labor Code

Section 1777.7 made the Council’s regulations on hearings and appeals from DAS determinations obsolete. Accord- ingly, the Council proposes to repeal those regulations at sections 232 through 234.2 of title 8. Most of these regulations are wholly superseded by the statutory amendments, making the repeal of those regulations “changes without regulatory effect” as defined in 1 Cal. Code Reg.

section 100(a)(6). In addition, while repeal of 8 Cal. Code Reg. sections 229, 231, 234.1, and 234.2 is not compelled by the legislative changes, the Council believes those sections are unnecessary and redundant to other statutory and regulatory provisions. Finally, other regulations need to be amended in order to cross− reference the prevailing wage hearing regulations at 8 Cal. Code Reg.

section 17201 et seq. rather than the ob- solete hearing regulations being repealed through this rulemaking.

Definitions and Notice Requirements : Labor Code

Section 1777.5 encourages contractors and subcontrac- tors to employ registered apprentices on public works projects, including by authorizing payment of appren- tice wage rates in lieu of the substantially higher jour- ney level prevailing wages. To qualify for the lower wage rates, apprentices must be registered with DAS, training under DAS−approved apprenticeship stan- dards (i.e. with a DAS/CAC−approved program), and at specified minimum ratio of apprentices to journey- worker. Apprentices may only be employed at the work of the craft or trade to which they are registered.

A contractor who employs workers in an “apprentice- able craft or trade” can have apprentices dispatched to a public works project by applying “to any apprentice program in the craft or trade that can provide appren- tices to the site” or by obtaining them from an approved program that already covers the contractor’s work. The statute defines “apprenticeable craft or trade” as “a craft or trade determined as an apprenticeable occupation in accordance with rules and regulations prescribed by the California Apprenticeship Council.” (section 1777.5(d).) Subdivision (

e) of

Section 1777.5 requires contrac- tors to send public works contract award information to apprenticeship programs that can supply apprentices to the work site. Notice requirements and time limits are spelled out in greater detail in 8 Cal. Code Reg.

section 230. The following

section 230.1, sets forth, among other things, requirements and time frames for request- ing a program to dispatch apprentices to a job site. 1 A large number of penalty assessments under Labor Code

Section 1777.7 arise from violations of these require- ments, which have the effect of depriving apprentices of training opportunities on public works. This rulemak- ing seeks to address specific issues that have come to light over the last several years, that make these require- ments difficult to enforce and are attributable to a lack of clear or specific regulatory standards.

The statutory definition of “apprenticeable craft or trade” offers no guidance on what craft or trade an apprentice belongs to when performing a particular type of work and what wage must be paid to that apprentice on a public works project. As consequence, the Council, on October 30, 2014, adopted a Resolution on Employment of Appren- tices on Public Works, which interpreted

Section 1777.5 as requiring that the work process in which the apprentice is engaged be part of the apprenticeship pro- gram’s approved training standards, in order to qualify for the lower apprentice wage rate. 2 The Council now proposes to do by adopting regulatory

definitions of 1 Contractors typically use the DAS Form 140 to comply with sec- tion 230, and the DAS Form 142 to comply with

section 230.1, and the form numbers sometimes serve as a shorthand designation for the required notification procedures. 2 A worker who does not meet the prescribed standards for receiv- ing apprentice wages must be paid the journey level prevailing wage, regardless of qualifications or experience, consistent with the public works law’s overall objectives of protecting and bene- fiting workers on public works project and in turn providing the public with the skills and efficiency of well−paid workers. (Lusar- di Construction v. Aubry , 1 Cal.4th 976 at 987 (1992).) 1505

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z “apprenticeable occupation,” “work process” and “reg- istered apprentice,” as well as more specific standards on the use of apprentices. In addition, the Council pro- poses to delete a definition of “worker” in 8 Cal. Code Reg.

section 228 that is both unnecessary and potential- ly in conflict with the broader understanding of that term in prevailing wage law. DLSE has also run into difficulty enforcing the con- tract award information requirements in 8 Cal. Code Reg.

section 230 and the request for dispatch of appren- tice requirements in

section 230.1, due to the lack of in- structions in

section 230 on how that notice must be transmitted, and the absence of any standards in either regulation concerning what constitutes proof that the required notice or request was actually sent to the in- tended recipient. These proposals address those con- cerns by establishing clear service and record retention requirements for both items, and by giving the contrac- tor or subcontractor the burden of showing the required item was sent.

Conforming amendments: One of the sections that the Council proposes to amend, 205, is the subject of a separate Council rulemaking to implement application, reporting, and evaluation requirements adopted in SB 56 and AB 235. The proposed amendments from that rulemaking included here for informational purposes and to avoid the possibility of the Council adopting in- consistent versions of these sections at the conclusion of this rulemaking.

EV ALUATION OF INCONSISTENCY/INCOMPATIBILITY WITH EXISTING STATE REGULATIONS After conducting an evaluation of other regulations in this area, the Council has concluded that these are the only regulations concerning employment of appren- tices on Public Works. Therefore, the proposed regula- tions are neither inconsistent nor incompatible with ex- isting state regulations. SPECIFIC PROPOSALS

Section 202: This

section governs investigations, hearings, and determinations on apprenticeship com- plaints outside the context of public works. The Council proposes to change the cross−reference in subsection (c)(3) so that it refers to the prevailing wage hearing regulations (8 Cal. Code Reg.

section 17201 et seq.) rather than the obsolete regulations (section 232 et seq.) being repealed.

Section 205 sets forth regulatory

definitions for the subchapter on Apprenticeship in Title 8. The Council proposes to add an additional sentence to the definition of “apprenticeable occupation” and to adopt new regu- latory

definitions of the terms “work process” and “reg- istered apprentice.” These proposals also carry over two changes from the SB 56 rulemaking: changing the term “journeyman” to “journeyworker” and adding a new definition of “acceptable electronic format” for purposes of meeting statutory electronic submission re- quirements imposed on building and construction trades industry programs.

Section 227 sets forth the Scope and Application of the regulations in

Article 10 on the use of apprentices on public works. The Council proposes to restate this sec- tion, consistent with the other substantive proposals in- cluded in this rulemaking.

Section 228 is another set of

definitions applicable to the public works apprenticeship regulations. The Coun- cil proposes to delete this section’s definition of “worker.”

Section 229 governs Service, Notice, and Computa- tion of Time requirements for notices required by the public works apprenticeship regulations. The Council proposes to make minor clarifying edits to the existing text of subsections (a), (b), and (c), and to add a new subsection (

d) to set forth specific service, record reten- tion, and burden of proof requirements for the contract award information and request for dispatch of appren- tice required under sections 230 and 230.1. The Council also proposes to add a new subsection (

e) clarifying that requests for review of a civil wage and penalty assess- ment are governed by the prevailing wage hearing regu- lations at 8 Cal. Code Reg.

section 17201 et seq. rather than this section.

Section 230.1 governs the Employment of Appren- tices on Public Works. The Council proposes to redraft subsection (

c) to set forth its

interpretation of the statu- tory requirements with more specificity, including that apprentices be training under program standards that in- clude the work processes the apprentice is performing and that they not be assigned work outside those work processes.

Section 231 governed complaints and determinations on public works apprenticeship violations prior to the 2012 and 2014 amendments to Labor Code

Section 1777.7. The Council proposes to repeal this section. Sections 232 through 232.70 are obsolete sections governing appeals and hearings on public works ap- prenticeship violations prior to the 2012 and 2014 amendments to Labor Code

Section 1777.7. The Coun- cil proposes to repeal these sections. 1506

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z DISCLOSURES REGARDING THE PROPOSED ACTION The Council has made the following initial determi- nations with respect to these proposals and invites fur- ther comment on these specific impacts:  Costs or savings for state agencies: These proposals are expected to save DLSE the cost of investigating and enforcing complaints over dispatch violations in which the contractor has failed to maintain copies of required notices.

The anticipated savings are approximately $17,000 per year (based on a reduction of 10 complaints a year, which is 1/6 the caseload of a DLSE investigator at a median cost of $100,000 per year).  Local Mandate: None.  Cost to any local agency or school district that is required to be reimbursed under

Part 7 (commencing with

Section 17500) of Division 4 of the Government Code: None.  Other nondiscretionary costs or savings imposed upon local agencies: None.  Costs or savings in federal funding to the state: None.  Significant, statewide adverse economic impact directly affecting business, including the ability of California businesses to compete with businesses in other states: None.  Impact on the creation or the elimination of jobs or business, and the expansion of businesses within the State of California, or effect on small businesses: None.  Significant effect on housing costs: None.  Cost impacts on representative private person or small business: None.

The Council is not aware of any cost impacts that a representative private person or small business would necessarily incur in reasonable compliance with these proposals. The cost impacts of these proposals are limited to public works contractors and subcontractors engaged in apprenticeable trades.

These proposals impose an express record retention requirement on all such contractors, something that is already a commonplace and prudent practice for the vast majority (98 percent or more) of them, in order to eliminate investigation and proof problems with those who claim either to have lost or never to have copied the notices.

The other potential and significant cost element of these proposals is limited to a handful of contractors who may be using registered apprentices to perform specific work processes in which the apprentices are not being formally trained, that is, a contractor using registered apprentices and paying them apprentice rates for specific work processes in which the apprentices are not being formally trained. The Council believes the maximum collective impact on this handful of contractors is well under $1 million annually and may be none at all when offset by increased productivity of better trained workers.

RESULTS OF THE ECONOMIC IMPACT ANALYSIS/ASSESSMENT The Council has made initial determinations that these proposals: (1) will not create or eliminate any jobs; (2) will not create new businesses or eliminate ex- isting businesses within the State of California; (3) will not affect the expansion of businesses currently doing business within the State of California; and (4) will not impact the regulation of health and welfare of Califor- nia residents and worker safety.

BENEFITS OF THE PROPOSED ACTION These regulations will clarify and make compliance with public works apprenticeship requirements easier, for the benefit of contractors, apprentices, and the pub- lic alike. They should also help curb the use of appren- tices as cheap labor for work that is not part of their structured and approved training program. In addition, these regulations will make it easier for DLSE to en- force these requirements and save now devoted to adju- dicating “my word against your word” disputes over whether and when required notices were sent.

CONSIDERATION OF ALTERNATIVES In accordance with Government Code

Section 11346.5(a)(13), the Council must determine that no rea- sonable alternative considered by the Council or that has otherwise been identified and brought to the Coun- cil’s attention (1) would be more effective in carrying out the purpose for which the action is proposed; (2) would be effective and less burdensome to affected pri- vate persons than the proposed action; or (3) would be more cost−effective to affected private persons and equally effective in implementing the statutory policy or other provision of law.

The Council invites interested persons to present statements or arguments with respect to alternatives to the proposed regulations at the sched- uled hearing or during the written comment period. 1507

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z CONTACT PERSONS Inquiries concerning the proposed administrative ac- tion may be directed to: Deneen Phillips California Apprenticeship Council 1515 Clay Street, Suite 301 Oakland, California 94612 Telephone: (510) 879−3966 Please direct requests for copies of the proposed text (the “express terms”) of the regulations, the initial state- ment of reasons, the modified text of the regulations, or other information upon which the rulemaking is based to Ms. Phillips at the above address.

The backup contact person for these inquiries is: Glen Forman, Deputy Chief Division of Apprenticeship Standards 1515 Clay Street, Suite 301 Oakland, CA 94612 Telephone: (510) 879−3965 A V AILABILITY OF INFORMATION PERTAINING TO THE PROPOSALS The Council will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its office located at the above address.

Website: Principal rulemaking documents, including the text, this notice, and the Initial Statement of Reasons may also be accessed through the Department of Indus- trial Relations’ website at www.dir.ca.gov/ Rulemaking/DIRProposed.html. A V AILABILITY OF CHANGED OR MODIFIED TEXT After holding the hearing and considering all timely and relevant comments received, the Council may adopt the proposed regulations substantially as de- scribed in this notice.

If the Council makes modifica- tions which are sufficiently related to the originally pro- posed text, it will make the modified text (with the changes clearly indicated) available to the public for at least 15 days before the Council adopts the regulations as revised. Any such modifications will also be posted on the Department of Industrial Relations’ website list- ed above. Requests for copies of any modified regulations may be sent to the attention of the contact person(

s) listed above. The Council will accept written comments on the modified regulations for 15 days after the date on which they are made available. A V AILABILITY OF THE FINAL STATEMENT OF REASONS AND THE RULEMAKING FILE Upon its completion, the Final Statement of Reasons will be available and copies may be requested from the Council at the address indicated above, or accessed on the Department of Industrial Relations’ website listed above. TITLE 14. STATE MINING AND GEOLOGY BOARD

ARTICLE 14. APPEALS OF ORDERS TO COMPLY WITH SMARA NOTICE IS HEREBY GIVEN that the State Min- ing and Geology Board (hereinafter referenced as “SMGB” or “Board”) proposes to amend the regulation described below after considering all comments, objec- tions, or recommendations regarding the proposed action. PROPOSED REGULATORY ACTION The SMGB proposes to amend sections 3940−3948 of Title 14 of the California Code of Regulations (CCR), Division 2,

Chapter 8, Subchapter 1,

Article 14, pertaining to appeals of orders to comply with the Sur- face Mining and Reclamation Act of 1975 (SMARA) as provided for in Public Resources Code (PRC)

section 2774.1. WRITTEN COMMENT PERIOD AND PUBLIC HEARING Any person, or an authorized representative, may submit written statements, arguments, suggestions, or comments related to the proposed regulatory action to the SMGB. These may be submitted by email to smgb@conservation.ca.gov or by mail to: State Mining and Geology Board 801 K Street, MS 20−15 Sacramento, CA 95814 ATTN: Appeals of Orders to Comply The 45−day written comment period closes on De- cember 16, 2019. The SMGB will only consider com- ments received at the SMGB office by that date. Pursuant to Government Code (GC)

section 11346.8, the SMGB will hold a public hearing if it receives a 1508

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z written request for a public hearing from any interested person, or an authorized representative, no later than 15 days before the close of the written comment period. AUTHORITY AND REFERENCE The SMGB is proposing to amend sections 3940−3948 of Title 14 of the CCR, Division 2,

Chapter 8, Subchapter 1,

Article 14 pursuant to the authority granted in SMARA, PRC

section 2710 et seq., specifi- cally PRC sections 2755 and 2759 to implement, inter- pret, and make specific PRC

section 2774.1. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW On April 18, 2016, Governor Brown signed Assem- bly Bill (AB) 1142 (Gray) into law and thereby enacted significant revisions to SMARA. To fully enact the re- visions to SMARA, the SMGB must address these changes by way of amending regulations associated with these statutory changes. 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 the surface mining operations within their jurisdictions follow SMARA’s requirements, including permitting and conditions of approval that relate to the conduct of mining, the operation’s reclamation plan, and financial assurance requirements.

The Department of Conservation’s (DOC), Division of Mine Reclamation (DMR) and the SMGB respec- tively provide lead agency assistance and oversight. Currently, the SMGB administers certain lead agency responsibilities under SMARA for 38 individual sur- face mining operations by conducting inspections, re- viewing and approving financial assurance cost esti- mates, and undertaking compliance and enforcement actions when necessary. EXISTING LAW PRC

Section 2207(

e) explains that the lead agency, or the Board when acting as the lead agency, may impose a fee upon each mining operation to cover the reasonable costs incurred in implementing

Section 2207(

e) and SMARA. PRC

Section 2774.1(a)(1) provides the conditions for a lead agency, the Board acting as a lead agency, or the Division on Mine Reclamation (DMR) to initiate an en- forcement action, beginning with the issuance of a no- tice of violation to a mine operator. PRC

Section 2774.1(a)(2) provides the circum- stances for a mine operator and a lead agency, the Board acting as a lead agency or DMR, to enter into a stipulat- ed order to comply. A stipulated order to comply must include a

schedule and time for compliance that is deter- mined to be reasonable after considering the actions and legal processes required to correct the noticed violation. PRC

Section 2774.1(a)(3)(

A) provides the process of issuing an order to comply to mine operators that do not comply with a notice of violation issued by a lead agen- cy, the Board acting as a lead agency, or DMR. If the no- ticed operator does not comply with the notice of viola- tion or commit to enter into a stipulated order to comply within 30 days of being served the notice, the lead agen- cy, the Board acting as a lead agency, or the Supervisor may issue an order to comply requiring the operator to comply with SMARA. Moreover, if the operator is found to not have an approved reclamation plan or fi- nancial assurance they shall cease all further surface mining activities. PRC

Section 2774.1(a)(3)(

B) further provides that an order to comply shall take effect 30 days following the service of the order to comply unless within the 30−day time span the operator appeals the order and requests a hearing before the lead agency, if the lead agency issued the order, or the Board, if the Supervisor issued the or- der. An order to comply is required to include which as- pects of the mine are inconsistent with SMARA, a time for compliance determined to be reasonable, and the ac- tions and legal processes required to correct the alleged violation. PRC

Section 2774.1(a)(3)(

C) explains that an appeal of an order to comply shall be noticed and heard at a public hearing within 45 days of the filing of the appeal or a longer period as may be mutually agreed upon by the operator. PRC

Section 2774.1(

c) provides the process for when an operator fails to comply with an order to comply or fails to submit a report or pay annual fees to the supervi- sor or lead agency as required in PRC

Section 2207. This includes, an administrative penalty of no more than $5,000 a day may be imposed by the supervisor or the lead agency on the operator that fails to comply. The penalty may be imposed administratively and can be determined by the nature, circumstances, extent, and gravity of the violation or violations, etc. Penalties that are collected must be used for purposes that cover the reasonable costs incurred by the Division or lead agen- cy in implementing SMARA. 1509

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z PRC

Section 2774.1(

d) provides circumstances for operators that violate or fail to comply with an order to comply or stipulated order to comply to be removed from the 3098−list published by the Division of Mine Reclamation. Also, the operator shall be removed from the list 10 days following a denial of an appeal at a pub- lic hearing unless the operator enters into a stipulated order to comply with a lead agency or the Division. PRC

Section 2774.4 provides the process for the Board to assume a lead agencies’ authority under SMARA. The

section authorizes the Board to exercise some or all of a lead agency’s powers under SMARA if the lead agency has approved reclamation plans that are inconsistent with SMARA, failed to inspect mining op- erations, failed to seek forfeiture of financial assurances when necessary, failed to take proper enforcement ac- tion, or intentionally misrepresented the results of in- spections required under SMARA. PRC

Section 2774.5 provides the process for the Board to act as a lead agency by default. The

section provides that where a lead agency has at least one min- ing operation within its jurisdiction, but has no mining ordinance certified by the Board, the Board shall as- sume all duties of a lead agency as specific under SMARA. PROPOSED ACTION Amend Title 14 of the CCR, Sections 3940−3948, Appeals of Orders to Comply with SMARA The proposed regulatory action ensures the process of appealing orders to comply with SMARA are clearly and plainly explained to reflect changes to statute re- sulting from AB 1142.

The purpose of the amended reg- ulation is to define the procedures governing the appeal to the Board of orders to comply with SMARA issued by the supervisor of DMR, or by the Board when acting in the capacity of lead agency pursuant to PRC

Section 2774.4 and 2774.5. These sections govern the appeal process including filing the appeal, determining juris- diction over the appeal, the content of the administra- tive record, and the various steps involved in the hear- ing procedures that accompany the appeal of an order to comply. ANTICIPATED BENEFITS OF THE PROPOSED REGULATORY ACTION The broad objective of the proposed regulatory action is to make procedural revisions and improvements to the appeals of orders to comply with SMARA process based primarily on statutory changes to PRC

section 2774.1 caused by AB 1142. Furthermore, the proposed amended regulatory language is intended to ensure mine operator accountability in cases where their min- ing operation does not comply with SMARA. The proposed regulation defines the appeals process of orders to comply with SMARA to ensure due process.

The SMGB also anticipates that the proposed regulatory action will benefit the environment and pro- tect public health by providing a clear and consistent ap- peals process to ensure that enforcement actions are heard fairly and timely when addressing allegations of non−compliance with SMARA and the mining opera- tion’s approved reclamation plan. 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 ap- peals of orders to comply with SMARA. After conduct- ing a review for any regulations that would relate to or affect this area, the SMGB has concluded that

Article 14 of Title 14 of the CCR, Division 2,

Chapter 8, Sub-

chapter 1, contains the only regulations that concern ap- peals of orders to comply with SMARA. CEQA COMPLIANCE The SMGB has determined that the proposed regula- tory action is not a project as defined in Title 14 of the CCR,

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 reimbursed in accordance with Govern- ment Code sections 17500 through 17630: None. Other nondiscretionary cost or savings imposed on local agencies: None. 1510

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z 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, including the ability of California businesses to compete with businesses in other states: The SMGB has determined that the pro- posed regulatory action will not have an adverse eco- nomic impact on businesses and individuals statewide, including small businesses. Surface mining operations are statutorily required to adhere to SMARA and can be the subject of an enforcement action upon discovery of the violation(s). If the operation does not correct the no- ticed violation(

s) in a timely manner, the lead agency is statutorily allowed to issue an order to comply. The pro- posed regulations simply amend the procedures for an operator appealing an order to comply issued by a lead agency or DMR. The proposed changes to existing reg- ulations may affect small mining business only if the operator fails to comply with SMARA. Significant effect on housing costs: None. Business reporting requirement: The SMGB finds that this regulation does not impose reporting require- ments on businesses.

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. Operators and lead agencies are already fa- miliar with existing processes for appealing orders to comply. The proposed regulatory action conforms existing procedural requirements with changes made to the un- derlying statutory procedures that were revised because of AB 1142, and includes a new

section outlining the steps for filing the intent to appeal. Providing a specific and timely appeals process allows for due process for all parties and a thorough review of the grounds for the is- suance of the order to comply. This will add benefit to public health and the protection of the environment by ensuring timely resolution of alleged violations at min- ing operations found throughout the State. 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 alternative to the proposed regulatory amend- ments of producing no action would conflict with statu- tory requirements set forth by AB 1142 and could result in confusion by appellants of an order to comply at- tempting to reconcile existing public hearing proce- dures with the applicable revised statutory require- ments. A public hearing is a statutory right for a mine operator that has been ordered to comply with a notice of violation but would like to appeal the decision.

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: Matthew Livers, Regulatory Specialist State Mining and Geology Board 801 K Street, Suite 2015 Sacramento, California 95814 Phone: (916) 319−9032 Matthew.Livers@conservation.ca.gov Jeffrey Schmidt, Executive Officer State Mining and Geology Board 801 K Street, Suite 2015 Sacramento, California 95814 Phone: (916) 322−1082 Jeffrey.Schmidt@conservation.ca.gov Please direct requests for copies of the proposed text (the “express terms”) of this regulation, the Initial State- 1511

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z ment of Reasons, the modified text of the regulation, if any, or other information upon which this rulemaking is based to Matthew Livers 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 Matthew Livers 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 through a system of underlines and strikethroughs) 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 Matthew Livers 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 Matthew Liv- ers 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

ARTICLE 11.5. FORFEITURE OF FINANCIAL ASSURANCE 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 sections 3810−3817 of the California Code of Regulations (CCR), Title 14, Division 2,

Chapter 8, Subchapter 1,

Article 11.5, per- taining to the forfeiture of financial assurance mecha- nisms as provided for in Public Resources Code (PRC)

Section 2773.1, subdivision (b). WRITTEN COMMENT PERIOD AND PUBLIC HEARING Any person, or an authorized representative, may submit written statements, arguments, or comments re- lated to the proposed regulatory action to the SMGB. Comments may be submitted by email to smgb@conservation.ca.gov or by mail to: State Mining and Geology Board 801 K Street, MS 20−15 Sacramento, CA 95814 ATTN: Financial Assurance Forfeiture The written comment period closes on December 16, 2019. The SMGB will only consider comments re- ceived at the SMGB office by that time. Pursuant to Government Code (GC)

section 11346.8, the SMGB will hold a public hearing if it receives a written request for a public hearing from any interested person, or an authorized representative, no later than 15 days before the close of the written comment period. AUTHORITY AND REFERENCE The SMGB is proposing to amend sections 3810−3817 of Title 14, Division 2,

Chapter 8, Subchap- ter 1,

Article 11.5 of the CCR pursuant to the authority granted in the Surface Mining and Reclamation Act of 1975 (SMARA), Public Resources Code (PRC)

section 2710 et seq., specifically PRC sections 2755 and 2759 to implement, interpret, and make specific PRC

section 2773.1(b). INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW On April 18, 2016, Governor Brown signed Assem- bly Bill (AB) 1142 (Gray) into law and thereby enacted 1512

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z significant revisions to SMARA. To enact the revisions to SMARA, the 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 follow SMARA’s re- quirements, including permitting and conditions of ap- proval that relate to the conduct of mining, the opera- tion’s reclamation plan, and financial assurance requirements.

The Department of Conservation’s (DOC), 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 individual surface mining opera- tions by conducting inspections, reviewing and approv- ing financial assurance cost estimates, and undertaking compliance and enforcement actions when necessary. EXISTING LAW PRC

section 2773.1(

a) provides that lead agencies must require financial assurances for each surface min- ing operation within its jurisdiction to ensure reclama- tion is performed in accordance with the surface mining operation’s approved reclamation plan. PRC

section 2736 provides that “Financial Assur- ances” means a current approved financial assurance cost estimate (FACE) and a financial assurance mecha- nism that is at least equal to the current approved FACE. PRC

section 2773.1(b)(1) provides the lead agency, or the Board when acting as the lead agency, has evi- dence that an operator may be financially incapable of completing reclamation in accordance with their ap- proved reclamation plan or the operator has abandoned the surface mining operation without completing recla- mation shall hold a public hearing to address the issue. The hearing will determine whether the operator is fi- nancially capable of completing reclamation or has abandoned the mining operation. The mine operator must receive at least 30 days’ notice prior to the hearing. PRC

section 2773.1(b)(2) provides the steps neces- sary if, following the public hearing, it is determined that the operator is financially incapable of performing reclamation in accordance with its approved reclama- tion plan or has abandoned its surface mining operation without completing reclamation. The lead agency or the supervisor shall notify the operator that they intend to take appropriate action to forfeit the financial assur- ances and must specify the reasons for doing so.

They must then take the appropriate steps to seize and then use proceeds from the forfeited financial assurance mechanisms to conduct and complete reclamation in accordance with the approved reclamation plan. The operator is responsible for all costs of completing recla- mation that exceed the proceeds from the forfeited fi- nancial assurance mechanisms. PRC

section 2773.1(

d) provides the lead agency or the Board acting as a lead agency primary responsibility to seek forfeiture of the financial assurance mecha- nisms and to reclaim the mine site pursuant to PRC 2773.1(b). The Division of Mine Reclamation has sec- ondary authority to seek forfeiture of the financial as- surance mechanisms and to reclaim the mine site pur- suant to PRC 2773.1(

b) if the financial incapability of the operator or the abandonment of the surface mining operation has come to the attention of the supervisor and the supervisor provides notice of intent to the lead agency to take such action. Sections 3810−3817 of CCR, Title 14, Division 2,

Chapter 8, Subchapter 1,

Article 11.5 govern proce- dures that lead agencies, including the SMGB when act- ing as a lead agency, must follow when seeking forfei- ture of financial assurance mechanisms. The regula- tions detail the steps of the hearing procedures to ensure that mine operators, lead agencies, regulatory agencies and the general public, are aware of the process and are designed at a minimum to provide due process to all parties.

PROPOSED ACTION Amend CCR sections 3810−3817, Forfeiture of Financial Assurance The proposed regulatory action ensures the process of forfeiting financial assurance mechanisms is clearly and plainly explained to reflect changes to statute re- sulting from AB 1142. The purpose of the amended reg- ulation is to define the procedures to be followed by the lead agency or the Board acting as the lead agency pur- suant to PRC

Section 2773.1(b). These sections offer guidance on determining whether a surface mining op- eration can perform reclamation in accordance with its approved reclamation plan or has abandoned its surface mining operation without completing reclamation and should therefor forfeit its financial assurance mecha- nisms pursuant to PRC

Section 2773.1(b). 1513

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z ANTICIPATED BENEFITS OF THE PROPOSED REGULATORY ACTION The broad objective of the proposed regulatory action is to make procedural revisions and improvements to the financial assurance forfeiture process based primar- ily on statutory changes to PRC

section 2773.1(

b) caused by AB 1142 (Gray). Furthermore, the proposed amended regulatory language is intended to ensure mine operator accountability in cases where forfeiture is necessary and provide due process prior to seizing an operator’s financial assurance mechanism. 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 forfeiture of financial assurance mechanisms for sur- face mining operations. After conducting a review for any regulations that would relate to or affect this area, the SMGB has concluded that

Article 11.5 in Title 14, Division 2,

Chapter 8, Subchapter 1 of the CCR, con- tains the only regulations that concern the forfeiture of financial assurance mechanisms under SMARA. 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 reimbursed 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, including the ability of California businesses to compete with businesses in other states: The SMGB has determined that the pro- posed regulatory action will not have an adverse eco- nomic impact on businesses and individuals statewide, including small businesses.

Surface mining operations are statutorily required to maintain financial assurance mechanisms during the life of the mining operation and that these financial assurance mechanisms may be for- feited if certain conditions within the statutory criteria arise. The proposed changes to existing regulations may affect small business, however, the proposed amendments address changes made to statutory re- quirements and are aimed primarily at conforming the existing regulatory hearing process to the statutory changes. Significant effect on housing costs: None.

Business reporting requirement: The SMGB finds that this regulation does not impose reporting require- ments on businesses. 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.

Operators and lead agencies are already fa- miliar with existing processes for forfeiture of financial assurance mechanisms for surface mining operations. 1514

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z Reducing the amount of time the lead agency has to seize the financial assurance mechanisms (FAM) fol- lowing the hearing will avoid the expiration or lapse of the FAM, depending on the type of FAM established by the operator. The proposed regulatory action conforms existing procedural requirements with changes made to the underlying statutory procedures that were revised because of AB 1142. 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 alternative of no action would conflict with statu- tory requirements set forth by AB 1142 and could result in confusion by appellants attempting to reconcile ex- isting hearing procedures with the applicable revised statutory requirements. 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: Matthew Livers, Regulatory Specialist State Mining and Geology Board 801 K Street, Suite 2015 Sacramento, California 95814 Phone: (916) 319−9032 Matthew.Livers@conservation.ca.gov Jeffrey Schmidt, Executive Officer State Mining and Geology Board 801 K Street, Suite 2015 Sacramento, California 95814 Phone: (916) 322−1082 Jeffrey.Schmidt@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 Matthew Livers 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 Matthew Livers 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 Matthew Livers 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 Matthew Livers 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. 1515

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z TITLE 14. STATE MINING AND GEOLOGY BOARD

ARTICLE 5. RECLAMATION PLAN APPEALS 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 sections 3650−3659 of the California Code of Regulations (CCR), Title 14, Division 2,

Chapter 8, Subchapter 1,

Article 5, pertain- ing to the reclamation plan appeals process as provided for in Public Resources Code (PRC)

Section 2770, sub- divisions (

e) through (g). WRITTEN COMMENT PERIOD AND PUBLIC HEARING Any person, or an authorized representative, may submit written statements, arguments, or comments re- lated to the proposed regulatory action to the SMGB. Comments may be submitted by email to smgb@conservation.ca.gov or by mail to: State Mining and Geology Board 801 K Street, MS 20−15 Sacramento, California 95814 ATTN: Reclamation Plan Appeals The written comment period closes on December 16, 2019. The SMGB will only consider comments re- ceived at the SMGB office by that time. Pursuant to Government Code (GC)

section 11346.8, the SMGB will hold a public hearing if it receives a written request for a public hearing from any interested person, or an authorized representative, no later than 15 days before the close of the written comment period. AUTHORITY AND REFERENCE The SMGB is proposing to amend sections 3650−3659 of Title 14, Division 2,

Chapter 8, Subchap- ter 1,

Article 5 of the CCR pursuant to the authority granted in the Surface Mining and Reclamation Act of 1975 (SMARA), Public Resources Code (PRC)

section 2710 et seq., specifically PRC sections 2755 and 2759 to implement, interpret, and make specific PRC

section 2770(e)−(g). 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. To enact the revisions 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 follow SMARA’s re- quirements, including permitting and conditions of ap- proval that relate to the conduct of mining, the opera- tion’s reclamation plan, and financial assurance requirements.

The Department of Conservation’s (DOC), 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 individual surface mining opera- tions by conducting inspections, reviewing and approv- ing financial assurance cost estimates, and undertaking compliance and enforcement actions when necessary. EXISTING LAW PRC

section 2733 provides that “reclamation” means the combined process of land treatment that minimizes water degradation, air pollution, damage to aquatic or wildlife habitat, flooding erosion, and other adverse ef- fects from surface mining operations, including adverse surface effects incidental to underground mines, so that mined lands are reclaimed to a useable condition that is readily adaptable for alternate land uses and create no danger to public health and safety. The process may ex- tend to affected lands surrounding mined lands, and may require backfilling, grading, resoiling, revegeta- tion, soil compaction, slope stabilization, or other measures. PRC

section 2770(

a) provides the requirements to conduct surface mining operations within the State of California. A person shall not conduct surface mining operations unless a permit is obtained from, a reclama- tion plan has been submitted to and approved by, and fi- nancial assurances for reclamation have been approved by the lead agency for the operation. PRC

section 2770(e)(1) provides an reclamation plan appeals process to the SMGB for a person who can sub- 1516

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z stantiate, 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 requirements 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 reclamation plan, 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(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 a reclamation plan, or the timeliness in reviewing a completed application. 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 the SMGB’s receipt of a complete administrative record, 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 recla- mation plan substantially meets the applicable require- ments of PRC sections 2773.1, 2773.4,

Article 11 (com- mencing with

section 3800) of Subchapter 1 of

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

section 2774(a). Additionally, the SMGB must approve or uphold a reclamation plan determined to meet those applicable requirements. PRC

section 2770(g)(2)(

A) states that a reclamation plan determined not to meet the applicable require- ments of Sections 2772, 2772.1, 2773, 2773.1, 2773.3, and 2773.4;

Article 1 (commencing with

Section 3500),

Article 9 (commencing with

Section 3700), and

Article 11 (commencing with

Section 3800) of Subchapter 1 of

Chapter 8 of Division 2 of Title 14 of the California Code of Regulations; and the lead agency’s surface mining ordinance adopted pursuant to subdivision (

a) of

Section 2774 shall be returned to the operator with a notice of deficiencies. PRC

section 2770(g)(2)(

B) provides that within 10 days of the hearing, the Board shall provide notice via certified mail to the lead agency, the operator, and the DMR of the Board’s determination. The notice shall in- clude instructions to the operator to submit to the lead agency for approval a revised reclamation plan consis- tent with the Board’s determination. Sections 3650−3659 of CCR, Title 14, Division 2,

Chapter 8, Subchapter 1,

Article 5 govern procedures for appeals to the SMGB concerning denial of approval of reclamation plans under PRC 2770. PROPOSED ACTION Amend CCR sections 3650−3659, Reclamation Plan Appeals The proposed regulatory action ensures the process of appealing a lead agency’s denial of a reclamation plan or plan amendment or failure to act upon receipt of a proposed reclamation plan or plan amendment of a surface mining operation within the State is clearly and plainly explained to reflect changes to statute from AB 1142 and generally provide the participants with an ap- propriate level of due process.

These sections provide the necessary steps to determine jurisdiction, producing an administrative record, and conducting the public hearing as required in PRC 2770. The amended regula- tions provide a detailed explanation of the procedures and criteria for the SMGB when scheduling the hearing, noticing the hearing, the aspects of the hearing’s record, the sequence of the procedures, and the determination following receipt of any testimony. Additionally, the amended regulation makes non−substantive fixes to language.

To ensure gender neutrality, pronouns are re- moved from the language and inclusive language is used, “Chairman” becomes “Chair” and “his or her” is removed. ANTICIPATED BENEFITS OF THE PROPOSED REGULATORY ACTION The broad objective of the proposed regulatory action is to make procedural improvements and revisions to the reclamation plan appeals process based on statutory changes to PRC

section 2770 caused by AB 1142. Fur- thermore, the proposed amended regulatory language is intended to ensure proper review of reclamation plans or plan amendments for surface mining operations and provide mine operators with a simple administrative ap- peals process prior to taking civil action against lead agencies. Proper review can in−turn ensure that the nec- essary review and approval of reclamation plans, or plan amendments is taken to consider the effects on health and safety of communities and the environment.

An administrative appeals process before the SMGB ensures mine operators can seek remedial actions con- cerning reclamation plan denials or the inaction of a lead agency when processing an operator’s reclamation plan or plan amendment. 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 1517

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z 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 the appeal of denied reclamation plans or plan amendments by lead agencies, or a lead agency’s failure to act upon an application for these entitlements. After conducting a review for any regulations that would relate to or af- fect this area, the SMGB has concluded that

Article 5 in Title 14, Division 2,

Chapter 8, Subchapter 1 of the CCR, contains the only regulations that concern admin- istrative appeals to the SMGB over actions or inactions by lead agencies. 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 reimbursed 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: None. Statewide adverse economic impact directly af- fecting businesses and individuals: The SMGB has determined that the proposed regulatory action will not have an adverse economic impact on businesses and in- dividuals statewide, including small businesses be- cause the proposed action provides necessary steps to determine jurisdiction, producing an administrative record, and conducting the public hearing as required in PRC 2770 and also changes in new PRC

section 2736, and caused by AB 1142. 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, and environmental safety by en- suring the public that SMARA compliant reclamation plans or plan amendments will be timely and appropri- ately approved or where reclamation plans or plan amendments are non−compliant with SMARA, opera- tors and lead agencies will have sufficient instructions on what would constitute an appropriate reclamation plan or plan amendment for the particular mining operation.

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 alternative of no action would be in direct con- flict with statutory requirements set forth by AB 1142 and would result in confusing regulatory processes re- maining in publication. This would further delay the ap- propriate approval or denial of reclamation plans or plan amendments designed to ensure an efficient enti- tlement approval process so that mining operations can continue to provide needed mined materials throughout California and be governed by SMARA compliant reclamation plans.

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- 1518

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z 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: Matthew Livers, Regulatory Specialist State Mining and Geology Board 801 K Street, Suite 2015 Sacramento, California 95814 Phone: (916) 319−9032 Matthew.Livers@conservation.ca.gov Jeffrey Schmidt, Executive Officer State Mining and Geology Board 801 K Street, Suite 2015 Sacramento, California 95814 Phone: (916) 322−1082 Jeffrey.Schmidt@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 Matthew Livers 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 Matthew Livers 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 Matthew Livers 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 Matthew Liv- ers 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 23.

CALIFORNIA WATER COMMISSION The California Water Commission (Commission) will conduct a public hearing at the time and place noted below to consider the adoption of the Procedure for Wa- ter Infrastructure Improvements for the Nation Act De- termination regulations. The proposed regulations would allow the California Water Commission to im- plement a process to determine whether a project is con- sistent with Proposition 1, AB 1471, Stats 2014, to ob- tain federal funding. OPPORTUNITY FOR PUBLIC COMMENT Public Hearings. The hearing will be held in accor- dance with the requirements set forth in Government Code

section 11346.8. The hearing details are as follows: Date: December 18, 2019 Time: 9:30 a.m. This item may be considered at any time during the regularly scheduled meeting of the Commission. Please consult the agenda, which will be available at least ten (10) days before December 18, 2019, to confirm the time at which this item will be considered. The agenda will be posted at http://cwc.ca.gov. Location: Resources Building First Floor Auditorium 1416 Ninth Street Sacramento, California 95814 Sections Affected: Proposed adoption of California Code of Regulations, title 23, new

article 2, which con- tains new sections 6100, 6101, 6102, and 6103. 1519

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z 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 November 1, 2019.

To be considered by the Commission, written comments not physically submitted at the hearing, must be submit- ted on or after November 1, 2019 and received no later than 5:00 p.m. on December 18, 2019 and must be ad- dressed to the following: California Water Commission 901 P Street, Room 314 P.O. Box 924836 Sacramento, CA 94236 cwc@water.ca.gov Please note that under the California Public Records Act (Government Code

section 6250 et seq.), written and oral comments, attachments, and associated con- tact information (e.g., address, phone, email, etc.) be- come part of the public record and can be released to the public upon request. The Commission requests, but does not require, that written and email statements on this item be filed at least 10 days prior to the hearing so that Commission staff and Commissioners have additional time to con- sider each comment.

The Commission encourages members of the public to bring to the attention of staff, in advance of the hearing, any suggestions for modifica- tion of the proposed regulatory action. Additionally, the Commission requests, but does not require, that persons who submit written comments to the Commission reference the title of the proposal in their comments to facilitate review. AUTHORITY AND REFERENCE Authority Cited: 114 P.L. 322, 130 Stat. 1628, 2016 Enacted S. 612, 114 Enacted S. 612, 114 P.L. 322, 130 Stat. 1628, 2016 Enacted S. 612, 114 Enacted S. 612, Water Code

section 150. Reference: 114 P.L. 322, 130 Stat. 1628, 2016 Enact- ed S. 612, 114 Enacted S. 612, 114 P.L. 322, 130 Stat. 1628, 2016 Enacted S. 612, 114 Enacted S. 612. DOCUMENTS INCORPORATED BY REFERENCE No documents are incorporated by reference in the regulations. INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT OVERVIEW PURSUANT TO GOVERNMENT CODE

SECTION 11346.5(a)

(3) BACKGROUND AND EFFECT OF THE PROPOSED RULEMAKING The Water Infrastructure Improvements for the Na- tion (WIIN) Act was enacted by Congress on December 16, 2016. The WIIN Act is codified as 114 P .L. 322, 130 Stat. 1628, 2016 Enacted S. 612, 114 Enacted S. 612, 114 P .L. 322, 130 Stat. 1628, 2016 Enacted S. 612, 114 Enacted S. 612 of the United States Code. The purposes of the WIIN Act include improving water infrastructure across the country.

Section 4007 addresses water projects in California and makes funding available to build water storage projects in California. The proposed regulations provide the process for a project proponent to obtain the California Water Com- mission’s determination that the project is consistent with Proposition 1, which was codified as Division 26.7 of the California Water Code and approved by voters in November 2014.

OBJECTIVES, BENEFITS, AND POLICY STATEMENT EXPLAINING THE SPECIFIC BENEFITS ANTICIPATED FROM THE PROPOSED REGULATORY ACTION This proposed regulation will establish the procedure for proponents of water projects to obtain the Commis- sion’s determination of consistency with Proposition 1. The proposed regulations will ensure a fair and consis- tent process for each proponent and promote trans- parency by making the process the same for each and every project proponent. DETERMINATION OF INCONSISTENCY AND INCOMPATIBILITY WITH EXISTING STATE REGULATIONS Pursuant to Government Code

section 11346.5(a)(3)(

D) The proposed regulations establish a procedure for water storage proponents to obtain a determination from the California Water Commission that a project is consistent with the requirements of Proposition 1. None of the proposed regulations are inconsistent or incom- patible with existing state regulation. The Commission has developed these regulations in alignment with ex- isting state law and regulations that govern an open and transparent process for addressing state governmental agencies. 1520

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z The Commission developed the proposed regulations to be consistent with the following sections of Califor- nia Code: Government Code sections 11340.5 and 11342.600 requiring any rule of general application to be adopted as a regulation. The proposed regulations are uniquely applicable to the applicants applying for funds pursuant to the WIIN Act.

In addition to the consistency of the regulatory policies with the implementing statute, the policies are also consistent with existing laws and regulations that relate to the specific policies discussed below. During the process of developing the proposed regu- latory action, Commission staff has conducted a search of any similar regulations on this topic and has conclud- ed that these regulations are neither inconsistent nor in- compatible with existing state regulations.

MANDATED BY FEDERAL LAW OR REGULATIONS The proposed regulations are not mandated by feder- al law or regulations but are required because of duties imposed on the California Water Commission via fed- eral law. COMPARABLE FEDERAL REGULATIONS The proposed regulation implements a new process for water projects to obtain the California Water Com- mission’s determination that the water project is consis- tent with Proposition 1.

Although the authority to make the determination necessary is implied from federal law, these regulations do not have a federal counterpart, and do not impact, duplicate, or conflict with Federal regulations or statutes. The commission has reviewed federal regulations and standards specifically regarding the authorization to make the determination.

SUMMARY OF EXISTING LAWS AND REGULATIONS RELATED DIRECTLY TO THE PROPOSED RULEMAKING The WIIN Act, codified at 114 P.L. 322, 130 Stat. 1628, 2016 Enacted S. 612, 114 Enacted S. 612, charges the Commission with making a determination that Cali- fornia State led water storage projects applying for fed- eral funding under the WIIN Act are consistent with Proposition 1. Specifically, the commission is directed in

Section 4007(

f) to make such a determination. To be consistent with California Government Code

section 11340 et seq., the Commission is required to adopt reg- ulations governing the process water projects must complete to obtain the Commission’s determination. OTHER STATUTORY AND LEGAL REQUIREMENTS California Government Code

section 11340.5 states: (

a) No state agency shall issue, utilize, enforce, or attempt to enforce any guideline, criterion, bulletin, manual, instruction, order, standard of general application, or other rule, which is a regulation as defined in

Section 11342.600, unless the guideline, criterion, bulletin, manual, instruction, order, standard of general application, or other rule has been adopted as a regulation and filed with the Secretary of State pursuant to this chapter. California Government Code

section 11342.600 de- fines a regulation as: . . . [E]very rule, regulation, order, or standard of general application or the amendment, supplement, or revision of any rule, regulation, order or standard adopted by any state agency to implement, interpret, or make specific the law enforced or administered by it, or to govern its procedure. Because the WIIN Act conferred a power on the Cali- fornia Water Commission, the Commission needs to undertake a rulemaking to ensure the process it imple- ments is consistent with Government Code

section 11340.5. FISCAL IMPACT DETERMINATION REGARDING THE PROPOSED ACTION LOCAL MANDATE (Government Code

section 11346.5(a)(5)) Pursuant to Government Code sections 11346.5(a)(5) and (a)(6), the Executive Officer has de- termined that the proposed regulatory action would not create costs to covered State agencies. The proposed regulatory actions would not create costs or savings in federal funding to the State, costs or mandate to any lo- cal agency or school district, whether or not reim- bursable by the State pursuant to Government Code, Ti- tle 2, division 4,

part 7 (commencing with

section 17500) or other nondiscretionary costs of savings to State or local agencies. The regulation does not impose a mandate on any pri- vate individual, business or local government. Applica- tion to the federal government for WIIN Act funding is entirely voluntary. Participation is open to California water agencies promoting water storage projects. The determinations of the Commission’s Executive Officer concerning the costs or savings necessarily in- curred by public agencies and private persons and busi- 1521

CALIFORNIA REGULATORY NOTICE REGISTER 2019, VOLUME NUMBER 44-Z nesses in reasonable compliance with the proposed reg- ulatory action are presented below:  Cost to any Local Agency or School District Requiring Reimbursement Pursuant to Government Code

section 17500 et seq.: None.  Cost or Savings for State Agencies: None.  Other Non−discretionary Costs or Savings on Local Agencies: None. SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT DIRECTLY AFFECTING BUSINESS, INCLUDING ABILITY TO COMPETE The Executive Officer has made an initial determina- tion that the proposed regulatory action would not have a significant statewide adverse economic impact direct- ly affecting businesses, including the ability of Califor- nia businesses to compete with businesses in other states, or on representative private persons.

COST IMPACTS ON REPRESENTATIVE PRIV ATE PERSONS OR BUSINESSES In developing this regulatory proposal, Commission staff evaluated the potential economic impacts on rep- resentative private persons or businesses. The commis- sion is not aware of any cost impacts that a representa- tive private person or business would necessarily incur in reasonable compliance with the proposed action. EFFECT ON SMALL BUSINESS The Executive Officer has also determined, pursuant to California Code of Regulations, title 1,

section 4, that the proposed regulatory action would not affect small businesses because the projects that would apply for WIIN Act funding do not meet the qualifications of a small business. BUSINESS REPORTING REQUIREMENTS The administrative requirements of the proposed reg- ulations do not apply to business or private individuals. Therefore, there is no reporting requirement that ap- plies to businesses. HOUSING COSTS The Executive Officer has also made the initial deter- mination that the proposed regulatory action will not have a significant effect on housing costs. RESULTS OF THE ECONOMIC IMPACT ANALYSIS/ASSESSMENT PREPARED PURSUANT TO GOVERNMENT CODE

SECTION 11346.3(

b) EFFECT ON JOBS/BUSINESSES The Executive Officer has determined that the pro- posed regulatory action would not affect 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 expan- sion of businesses currently doing business within the State of California.

BENEFITS OF THE PROPOSED REGULATION The objective of the proposed regulations is to ensure a level playing field and a consistent process for any California water storage project proponent seeking funding through the federal WIIN Act in obtaining a de- termination from the Commission of whether the project is consistent with Proposition 1. A detailed explanation of the benefits of the proposed regulation is in the Initial Statement of Reasons, under “Purpose of Proposed Regulations.” DISCLOSURES REGARDING THE PROPOSED ACTION The proposed regulation does not award funding from WIIN Act sources.

Rather, it ensures water projects from California that apply for funding from the Federal government pursuant to the WIIN Act are con- sistent with California’s stated goals and policies relat- ed to water storage. The following summarizes the sections of the pro- posed regulation and the potential categories of eco- nomic and