Time- Dated Material GAVIN NEWSOM, GOVERNOR OFFICE OF ADMINISTRATIVE LAW California Regulatory Notice Register REGISTER 2023, NUMBER 11-Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW MARCH 17, 2023 PROPOSED ACTION ON REGULATIONS TITLE 2. FAIR POLITICAL PRACTICES COMMISSION Conflict–of–Interest Codes — Notice File Number Z2023–0307–10 ........................................ 249 AMENDMENT MULTI–COUNTY: Paso Robles Joint Unified School District STATE AGENCY: San Francisco Bay Conservation & Development Commission State Compensation Insurance Fund ADOPTION MULTI–COUNTY: Inland Library System TITLE 2.

STATE ALLOCATION BOARD The California Preschool, Transitional Kindergarten and Full–Day Kindergarten Facilities Grant Program — Notice File Number Z2023–0307–02 ......................................... 250 TITLE 3. DEPARTMENT OF PESTICIDE REGULATION Pesticide Determination Sites — Notice File Number Z2023–0302–01 ..................................... 257 TITLE 10. DEPARTMENT OF FINANCIAL PROTECTION AND INNOV ATION California Consumer Financial Protection Law Registration — Notice File Number Z2023–0307–08 ................................................................. 262 TITLE 11.

DEPARTMENT OF JUSTICE Bureau for Private and Postsecondary Education Exemption Verification — Notice File Number Z2023–0307–03 ................................................................ 267 TITLE 13. NEW MOTOR VEHICLE BOARD Representation in Protests or Petitions — Notice File Number Z2023–0302–02 ............................... 269 TITLE 14. FISH AND GAME COMMISSION Klamath River Basin Sport Fishing 2023 — Notice File Number Z2023–0307–04 ............................ 272 (Continued on next page)

TITLE 14. FISH AND GAME COMMISSION Central Valley Sport Fishing — Notice File Number Z2023–0307–05 ...................................... 277 TITLE 22. DEPARTMENT OF HEALTHCARE ACCESS AND INFORMATION Prescription Drug Pricing for Purchasers — Notice File Number Z2023–0301–01 ............................ 281 TITLE 22/MPP . DEPARTMENT OF SOCIAL SERVICES Protective Supervision Proration and Clarification — Notice File Number Z2023–0307–11 ..................... 285 TITLE 28.

DEPARTMENT OF MANAGED HEALTH CARE Average Contracted Rate; Inflation Adjustment — Notice File Number Z2023–0307–01 ........................ 287 GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE Consistency Determination No. 1653–2023–106–001–R1, Cottonwood Creek Accelerated Wood Recruitment Project Phase II, Siskiyou County, CA ................................................ 292 DEPARTMENT OF FISH AND WILDLIFE Consistency Determination No. 2080R–2023–001–01, Kopta Slough Multi–Benefit Project, Tehama County .............................................................................. 294 DEPARTMENT OF FISH AND WIDLIFE Consistency Determination No. 2080–2023–002–01, Humboldt Redwood Company – Habitat Conservation Plan for Northern California Summer Steelhead (Oncorhynchus mykiss), Humboldt County ............................................................ 297 DEPARTMENT OF HEALTHCARE SERVICES Proposed

Section 1115 Demonstration Application ..................................................... 300

SUMMARY OF REGULATORY ACTIONS Regulations filed with the Secretary of State ........................................................... 301 The California Regulatory Notice Register is an official state publication of the Office of Administrative Law containing notices of proposed regulatory actions by state regulatory agencies to adopt, amend or repeal regulations contained in the California Code of Regulations. The effective period of a notice of proposed regulatory action by a state agency in the California Regulatory Notice Register shall not exceed one year [Government Code § 11346.4(b)].

It is suggested, therefore, that issues of the California Regulatory Notice Register be retained for a minimum of 18 months. CALIFORNIA REGULATORY NOTICE REGISTER is published weekly by the Office of Administrative Law, 300 Capitol Mall, Suite 1250, Sacramento, CA 95814-4339. The Register is printed by Barclays, a subsidiary of West, a Thomson Reuters Business, and is offered by subscription for $205.00 (annual price). To order or make changes to current subscriptions, please call (800) 328−4880. The Register can also be accessed at https://oal.ca.gov .

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 249 PROPOSED ACTION ON REGULATIONS Information contained in this document is published as received from agencies and is not edited by Thomson Reuters. TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION NOTICE IS HEREBY GIVEN that the Fair Polit - ical Practices Commission, pursuant to the authority vested in it by Sections 82011, 87303, and 87304 of the Government Code to review proposed conflict–of– interest codes, will review the proposed/amended conflict–of–interest codes of the following: CONFLICT–OF–INTEREST CODES AMENDMENT M U LT I – COU N T Y: Paso Robles Joint Unified School District STAT E AGENCY: San Francisco Bay Conservation & Development Commission State Compensation Insurance Fund ADOPTION MULTI–COUNTY: Inland Library System A written comment period has been established commencing on March 17, 2023 and closing on May 1, 2023.

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

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

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

Any written comments must be received no later than May 1, 2023. If a public hearing is to be held, oral comments may be presented to the Commission at the hearing. COST TO LOCAL AGENCIES There shall be no reimbursement for any new or in- creased costs to local government which may result from compliance with these codes because these are not new programs mandated on local agencies by the codes since the requirements described herein were mandated by the Political Reform Act of 1974. There- fore, they are not “costs mandated by the state” as de- fined in Government Code

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

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

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 250 A VAILABILITY OF PROPOSED CONFLICT–OF–INTEREST CODES Copies of the proposed conflict–of–interest codes may be obtained from the Commission offices or the respective agency. Requests for copies from the Com- mission should be made to Daniel Vo, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sac- ramento, California 95811, telephone (916) 322–5660. TITLE 2.

STATE ALLOCATION BOARD RELATING TO THE CALIFORNIA PRESCHOOL, TRANSITIONAL KINDERGARTEN AND FULL–DAY KINDERGARTEN FACILITIES GRANT PROGRAM PROPOSED AMENDMENTS TO THE FOLLOWING REGULATION SECTIONS ● 1860.2, 1860.3, 1860.4, 1860.5, 1860.5.1, 1860.6, 1860.14, 1860.15, AND 1860.19 PROPOSED AMENDMENTS TO THE FOLLOWING FORMS: ● Form SAB 70–01, Application for Funding, (Rev. 09/22), which is incorporated by reference and referenced in Regulation

Section 1860.2 ● Form SAB 70–03, Expenditure Report , (Rev. 09/22), which is incorporated by reference and referenced in Regulation

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

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

h) of the Education Code; 16304 and 16304.1 of the Government Code. The proposals interpret and make specific reference Sections 17070.15, 17075.10, 17280, 17375, 17375(a), 17375(b), 17375(b)(3), 17375(b)(4), 17375(

h) of the Ed- ucation Code; 1771.5, Labor Code. INFORMATIVE DIGEST/POLICY OVERVIEW STATEMENT At its meeting on September 21, 2022, the SAB adopted on an emergency basis proposed regulatory amendments, as well as amendments to two associ - ated forms. Initially, the California Preschool, Tran - sitional Kindergarten and Full–Day Kindergarten Fa - cilities Grant Program (Program) was created through Assembly Bill (AB) 1808,

Chapter 32, Statutes of 2018, and included a one–time General Fund appropriation in the amount of $100 million for the sole purpose of providing classrooms for full–day kindergarten pro - grams. Since that time, however, several bills became law that appropriated, rescinded, and re–appropriated general fund dollars. The latest bill, AB 181,

Chapter 52, Statutes of 2022, was signed by the Governor on June 30, 2022, and made $100 million from the Gen - eral Fund available to the SAB for apportioning one– time grants to school districts that lack the facilities to provide full–day California preschool, transitional kindergarten and kindergarten programs. In addition to the $100 million, the Legislature has declared its intent to appropriate an additional $550 million from the General Fund in the 2023/24 fiscal year to the SAB for the same purposes.

The bill allows California com- munity colleges to apply for one–time grants for pre - school classrooms provided they meet the eligibility criteria. Funds Impacted ● General Fund appropriation in the amount of $100 million for the 2022/2023 fiscal year. Attached to this Notice is the specific regulatory language of the proposed regulations and two asso - ciated forms.

The proposed regulations and the two associated forms will be accessible and can be viewed on OPSC’s website at: https://www.dgs.ca.gov/OPSC/ Resources/Page–Content/Office–of–Public–School– Construction–Resources–List–Folder/Laws–and– Regulations, scroll down to “California Preschool, Transitional Kindergarten and Full–Day Kindergarten Facilities Grant Program, FDK Pending Regulatory Changes.” Copies of the proposed regulations and the two associated forms will be mailed to any person re -

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 251 questing this information by using OPSC’s contact in- formation set forth below in this Notice. The proposed regulations implement the Program’s Regulations un - der the California Code of Regulations, Title 2, Chap- ter 3, Subchapter 4, Group 1, State Allocation Board, Subgroup 5.8, Regulations relating to the California Preschool, Transitional Kindergarten and Full–Day Kindergarten Facilities Grant Program. Background and Problem Being Resolved As mentioned above, AB 1808,

Chapter 32, Statutes of 2018 [Committee on Budget. Education Finance: education omnibus trailer bill] was originally signed by the Governor on June 27, 2018 and included a one– time General Fund appropriation in the amount of $100 million for the sole purpose of providing full– day kindergarten classrooms. On July 1, 2019, the Governor signed Senate Bill (SB) 75,

Chapter 51, Stat- utes of 2019, into law [the Education Finance: Educa- tion Omnibus Trailer Bill]. This bill appropriated an additional $300 million from the General Fund to the SAB for the 2019/20 fiscal year. School districts that wished to convert part–day kindergarten programs to full–day kindergarten programs, and for those school districts lacking the facilities to provide full–day kin - dergarten instruction could apply for these one–time grants to construct new school facilities or retrofit ex - isting school facilities. On June 29, 2020, the Gover - nor signed SB 98,

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

Chapter 44, Statutes of 2021, provided $490 million from the General Fund for the 2021/22 fiscal year to the SAB to provide one–time grants. School districts that lacked the facilities to provide full–day California preschool, full–day transitional kindergarten, and/or full–day kindergarten programs could apply for these one–time grants to construct new school facilities and retrofit existing school facilities. The latest bill, AB 181,

Chapter 52, Statutes of 2022, provides $100 mil- lion in the 2022/23 fiscal year to the SAB to continue providing one–time grants for the construction of new school facilities and the retrofitting of existing school facilities for preschool, transitional kindergarten, and kindergarten pupils in full–day programs. It is the Legislature’s intent to appropriate an additional $550 million from the General Fund in the 2023/24 fiscal year for the same one–time purposes.

The bill also expands the Program to allow California communi - ty colleges to apply for one–time grants for preschool classrooms provided they meet the eligibility criteria. The problem being resolved is not a problem, but rather a funding opportunity in which the Program ex- pands to community colleges to construct new class - rooms or retrofit existing classrooms to house full– day California state preschool programs. In addition to the new Program funding, there are clarifications to Program requirements for the inclusion of community colleges, as well as changes to the dates for the fourth filing round.

Beginning February 1, 2023 through March 2, 2023 applicants will be able to submit ap - plications for the Program. OPSC and the California Department of Education (CDE) will work collabora - tively, on a project–by–project basis, to determine if an application should be limited to a retrofit project, or whether the applicant can choose between funding to retrofit existing facilities or to build new facilities. This will ensure a prudent use of general fund dollars, integrity of school projects, and prevents the funding from being expended to unnecessarily construct new classrooms.

OPSC performed a search on whether the proposed regulatory amendments are consistent and compat - ible with existing State laws and regulations. After performing the search, OPSC, on behalf of the SAB, has determined that AB 181,

Chapter 52, Statutes of 2022, [the Committee on Budget: Education Finance: Education Omnibus Budget Trailer Bill], was creat - ed to expand, clarify, and make modifications to the existing Program. There are no other programs or regulations in existence that provide one–time grants to school districts, or include California community colleges, for the purposes of constructing new school facilities or retrofitting existing school facilities in or- der to house full–day California preschool, full–day transitional kindergarten and full–day kindergarten programs.

Therefore, the proposed regulatory amend - ments are determined to be consistent and compatible with existing State laws and regulations. Proceeding with the implementation of the proposed regulatory amendments and the two associated forms will en - hance applicants’ awareness when partnering with the State and will help to maintain Program integrity. Anticipated Benefits of the Proposed Regulations There are benefits associated with the proposed amendments.

School districts will benefit in order to provide kindergarten classrooms if they lack the facil- ities and have the need to operate full–day transition - al kindergarten and full–day kindergarten programs. School districts, county offices of education, and community colleges will also benefit in order to build new or expand existing classrooms to house full–day California state preschool programs.

In addition, the State of California will benefit from the proposed reg- ulations as the regulations may generate the need for school construction–related industries to expand their businesses, or in some cases may create new busi - nesses, based on the demand on these industries when general fund dollars are released to school districts,

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 252 county offices of education, and community colleges to complete their projects. The proposed regulations are therefore determined to be consistent and compatible with existing State laws and regulations. As stated above, OPSC per - formed a search on whether the proposed regulations were consistent and compatible with existing State laws and regulations. After performing the search, OPSC, on behalf of the SAB, has determined that AB 181,

Chapter 52, Statutes of 2022, [the Committee on Budget. Education Finance: Education Omnibus Bud- get Trailer Bill], was created to expand, clarify, and make modifications to the existing Program. There are no other programs or regulations in existence that provide one–time grants to school districts, or include California community colleges, for the purposes of constructing new school facilities or retrofitting exist- ing school facilities in order to house full–day Califor- nia preschool, full–day transitional kindergarten and full–day kindergarten programs.

Therefore, the proposed regulations are determined to be consistent and compatible with existing State laws and regulations. Proceeding with the implemen - tation of the proposed regulatory amendments and the two associated forms will enhance applicants’ awareness when partnering with the State while defin- ing the responsibilities of funding applicant projects. This will ensure program oversight and expenditure accountability.

The proposed regulations and the two associat - ed forms will not have a negative impact to various business, manufacturing, and construction–related in - dustries such as architecture, engineering, trades and municipalities. In addition, the proposed regulations will not impact the creation of jobs, the creation of new businesses, and the expansion of businesses in California. It is not anticipated that the proposed reg - ulations will result in the elimination of existing busi - nesses or jobs within California.

Summary of the Proposed Regulatory Amendments A

summary of the proposed regulatory amend - ments, including the two associated forms, are as follows: Existing Regulation

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

definitions provide clarity to OPSC and school districts on program concepts and requirements. The proposed amendments expand the definition of “School District” by including commu - nity college districts that operate a preschool program on behalf of, or in lieu of, a school district or county office of education. This is in alignment with the stat - ute. Two of the Program forms (SAB 70–01 and SAB 70–03) are being revised which changes the revision dates. Existing Regulation

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

section of the Form SAB 70–01. The proposed amend- ments set forth the statute by which these amendments are being made and sets forth the General Fund appro- priation for the expanded Program. Existing Regulation

Section 1860.4 provides gen - eral funding guidelines for the program that apply to all applicants that participate in the program. The proposed amendments specify where the funding is being made available [subsection (

c) is for the 2022/23 Budget Act and subsection (

d) is for the 2023/24 Bud- get Act] and sets forth the date by which the fund - ing must be encumbered (June 30, 2025 and June 30, 2026, respectively). It is further clarified that any funds returned prior to this date will be returned to the program account, while funds returned after this date will be returned to the General Fund. The encumbered dates of June 30, 2025 and June 30, 2026 are subject to statute, specifically Government Code Sections 16304 and 16304.1. Existing Regulation

Section 1860.5 sets forth eligi - bility criteria that school districts must meet in order to apply for full–day kindergarten program funding. The proposed amendments set forth requirements that kindergarten classrooms must meet in order to ensure new construction and/or retrofit funding is used to construct classrooms that match Title 5 requirements. To ensure funding is provided for full–day kinder - garten classrooms that can be repurposed if needed, the regulations require newly constructed and retrofit classrooms to be 1,350 square feet, unless an exemp - tion is provided by CDE. In no case may a classroom be less than 1,250 square feet. Existing Regulation

Section 1860.5.1 sets forth el - igibility criteria that school districts must meet in order to apply for transitional kindergarten program funding. The proposed amendments set forth require - ments that kindergarten classrooms must meet in or - der to ensure new construction and/or retrofit funding is used to construct classrooms that match Title 5 re - quirements. To ensure funding is provided for transi - tional kindergarten classrooms that can be repurposed if needed, the regulations require newly constructed and retrofit classrooms to be 1,350 square feet, unless an exemption is provided by CDE. In no case may a classroom be less than 1,250 square feet. Existing Regulation

Section 1860.6 sets forth the application submittal process, which established two 30–calendar day funding rounds for school districts to request apportionments of available program funds.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 253 The proposed amendments change the fourth funding round in subsection (

d) from April 1, 2023 and on or before April 30, 2023 to February 1, 2023 and on or before March 2, 2023. This change allows for addi - tional time to review the applications received because there is $100 million in General Fund allocations from the 2022/23 Budget Act that will has been appropriat- ed to projects in this filing round. Existing Regulation

Section 1860.14 sets forth cri - teria for school districts applying for financial hard - ship, as allowed in Education Code

Section 17375(b) (2)(A). If a school district is unable to meet the finan - cial requirements for either all or a portion to match their share of the project with the state and can prove a financial hardship, then they may qualify for hard - ship assistance pursuant to Education Code

Section 17075.10. This

Section is identical to the financial hardship provisions as defined in the SFP Regulations. OPSC will review financial records of the school dis - trict to determine if the school district qualifies for fi - nancial hardship. The analysis will include all capital facility accounts, including but not limited to devel - oper fees, Certificates of Participation, federal grants, bond funds either encumbered, unencumbered or authorized but not sold, etc. Any funds that have not been encumbered, either through contracts or other - wise, will be considered available funds for the match- ing share.

The proposed amendment deletes the lan - guage in subsection (a)(4) that allows school districts to request financial hardship using “other evidence” as approved by the SAB and adds County Superin - tendent of Schools to qualify automatically for finan - cial hardship status. This is consistent with Education Code

Section 17375(b)(2)(A). Existing Regulation

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

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

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

Points begin at four points for 60–65 percent of students eligible for FRMP, while 40 points will be earned if 100 percent of students within the school dis- trict qualify for FRPM. If a school district has been qualified for financial hardship by OPSC and is unable to contribute a portion or all of its matching share, the school district earns 40 points. The proposed amend - ments in subsection (b)(1) adds community colleges as part of the funding criteria for the calculation of pref - erence points. This is in alignment with the statute. The stand–alone sentence under subsection (b)(1) has been numbered as (2).

This is considered a non–sub - stantive change. Existing Regulation

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

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

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

Section 1860.3(

b) and 1860.3(

c) are not required to return savings, including interest earned on State funds, if expended or encumbered for profes- sional development or instructional materials to build capacity for the implementation of a California State preschool program, transitional kindergarten pro - gram, a full–day kindergarten program, or high pri - ority capital outlay purposes identified by the school district. Existing Form SAB 70–01, Application for Fund - ing, (which is incorporated by reference) is used by school districts to apply for program funding.

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

Section 1860.6. OPSC will use this form in order to collect the information necessary to cal - culate the amount of grants applicable to the project and to determine project funding order. The proposed amendments: 1) page 1, under “Specific Instructions” #1.a. A New Construction Grant, fourth and fifth (new) bullets, as well as #1.c. A Retrofit Grant, fourth and fifth (new) bullets are being added as these are

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 254 documents the SAB requires in order to support the funding of projects and to efficiently administer the Program; and 2) page 2, #2. School Site Enrollment Data, 5th and 7th sentences: adding the “T” before K–12 and the “P” before K–12 refers to Transitional Kinder- garten and PreK (preschool). Existing Form SAB 70–03, Expenditure Report, (which is incorporated by reference) is used by school districts to report their project savings and unexpend - ed funds.

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

The proposed amendments: 1) page 1, 2 nd column, last sentence “through OPSC Online or to” was added to inform applicants that document sub - mittals could be submitted electronically through the OPSC Online system; and 2) page 2, #4. the fourth bullet was struck out and relocated as the last bullet.

After conducting a review, the SAB has concluded that these are the only regulations on this subject area (construction of and/or retrofit of existing school facil- ities for the sole purpose of providing preschool, tran- sitional kindergarten and kindergarten classrooms), and therefore, the proposed regulations are neither inconsistent nor incompatible with existing State laws and regulations. The proposed regulations are within the SAB’s authority to enact regulations for the Pro - gram under Education Code

Section 17375(

h) and Government Code

Section 15503. Statutory Authority and Implementation Education Code

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

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

Section 11340) of

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

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

Determination of Inconsistency or Incompatibility with Existing State Regulations As mentioned on page 1, the Program was created through AB 1808,

Chapter 32, Statutes of 2018, and included a one–time General Fund appropriation in the amount of $100 million for the sole purpose of pro- viding full–day kindergarten classrooms. Since that time, however, several bills became law that appro - priated, rescinded, and re–appropriated general fund dollars. The latest bill, AB 181,

Chapter 52, Statutes of 2022, was signed by the Governor on June 30, 2022, and made $100 million from the General Fund avail - able to the SAB for apportioning one–time grants to school districts that lack the facilities to provide full– day California preschool, transitional kindergarten and kindergarten programs. In addition to the $100 million, the Legislature has declared its intent to ap - propriate an additional $550 million from the Gen - eral Fund in the 2023/24 fiscal year to the SAB for the same purposes.

In addition to the new Program funding, there are clarifications to Program require - ments for the inclusion of community colleges, as well as changes to the dates for the fourth filing round. Beginning February 1, 2023 through March 2, 2023 applicants will be able to submit applications for the Program. OPSC and the CDE will work collabora - tively, on a project–by–project basis, to determine if an application should be limited to a retrofit project, or whether the applicant can choose between funding to retrofit existing facilities or to build new facilities.

This will ensure a prudent use of general fund dollars, integrity of school projects, and prevents the funding from being expended to unnecessarily construct new classrooms. OPSC performed a search on whether the proposed regulatory amendments are consistent and compat - ible with existing State laws and regulations. After performing the search, OPSC, on behalf of the SAB, has determined that AB 181,

Chapter 52, Statutes of 2022, [the Committee on Budget: Education Finance: Education Omnibus Budget Trailer Bill], was creat - ed to expand, clarify, and make modifications to the existing Program. There are no other programs or regulations in existence that provide one–time grants to school districts, or include California community colleges, for the purposes of constructing new school facilities or retrofitting existing school facilities in or- der to house full–day California preschool, full–day transitional kindergarten and full–day kindergarten programs.

Therefore, the proposed regulatory amend - ments are determined to be consistent and compatible with existing State laws and regulations. Proceeding with the implementation of the proposed regulatory

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 255 amendments and the two associated forms will en - hance applicants’ awareness when partnering with the State and will help to maintain Program integrity. This will also ensure program oversight and expendi - ture accountability. Forms Incorporated by Reference ● Form SAB 70–01, Application for Funding, (Rev. 09/22), which is incorporated by reference and referenced in Regulation

Section 1860.2 ● Form SAB 70–03, Expenditure Report , (Rev. 09/22), which is incorporated by reference and referenced in Regulation

Section 1860.2 IMPACT ON LOCAL AGENCIES OR SCHOOL DISTRICTS The Executive Officer of the SAB has determined that the proposed regulations, along with two associ - ated forms, do not impose a mandate or a mandate re- quiring reimbursement by the State pursuant to

Part 7 (commencing with

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

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

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

RESULTS OF THE ECONOMIC I M PACT A NA LYSIS Impact to Businesses and Jobs in California The proposed regulations expand the Program to not only include California preschool and transitional kindergarten classrooms in addition to full–day kin - dergarten classrooms but allows California communi- ty colleges to apply for one–time grants for preschool classrooms provided they meet the eligibility criteria. School districts benefit in order to provide kindergar - ten classrooms if they lack the facilities and have the need to operate full–day transitional kindergarten and full–day kindergarten programs.

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

The proposed regulations and the two associated forms will not have a negative impact to various busi- ness, manufacturing, and construction-related indus - tries such as architecture, engineering, trades and mu- nicipalities. In addition, the proposed regulations will not negatively impact the creation of jobs, the creation of new businesses, and the expansion of businesses in California. It is not anticipated that the proposed regulations will result in the elimination of existing businesses or jobs within California.

Benefits to Public Health and Welfare, Worker’s Safety, and the State’s Environment ● The proposed regulations promote fairness and/ or social equity by providing general fund dol - lars to those school districts, county offices of ed- ucation and California community colleges that may be able to construct new facilities or retro - fit existing facilities in an effort to provide pre - school, transitional kindergarten and/or kinder - garten programs. ● The State of California will benefit because its in- ventory of school facilities will increase due to the expansion of the Program to include California community colleges. ● There are benefits to health, safety, and welfare of California residents (school children and school faculty) because California preschool, transition - al kindergarten and kindergarten facilities would be built stronger and safer.

There are continued benefits to the health and welfare of California residents and worker safety. School districts uti - lize construction and trades employees to work

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 256 on school construction projects and although the proposed regulations would not directly impact worker’s safety, existing law provides for the availability of a skilled labor force. Further, pub - lic health and safety would be enhanced because a properly paid and trained workforce will build school construction projects that are higher qual - ity, structurally code–compliant and safer for use by pupils, staff, and other occupants on the site. ● There is no impact to the State’s environment from the proposed regulations.

The SAB finds the proposed regulations fully con - sistent with the stated purposes and benefits. EFFECT ON SMALL BUSINESSES It has been determined that the proposed regulations will not have a negative impact on small businesses in the ways identified in subsections (a)(1)–(4) of

Section 4, Title 1, CCR. The proposed regulations expand the Program to include California community colleges for the purposes of constructing new school facilities or retrofitting existing school facilities in order to house full–day California preschool programs SUBMISSION OF COMMENTS, DOCUMENTS AND ADDITIONAL INFORMATION Any interested person may present statements, ar - guments or contentions, in writing, submitted via U.S. mail, email or fax, relevant to the proposed regulato - ry action. Written comments submitted via U.S. mail, email or fax must be received at OPSC no later than May 1, 2023.

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

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

If Ms. Jones is unavail- able, these questions may be directed to the backup contact person, Mr. Michael Watanabe, Chief of Ad - ministrative Services, at (279) 946–8463. ADOPTION OF REGULATIONS Please note that, following the public comment pe - riod, the SAB may adopt the regulations substantially as proposed in this notice or with modifications, which are sufficiently related to the originally proposed text and notice of proposed regulatory activity.

If modifi - cations are made, the modified text with the changes clearly indicated will be made available to the public for at least 15 days prior to the date on which the SAB adopts the regulations. The modified regulation(

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

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

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

The file is available for public inspection at OPSC during normal working hours. Items 1 through 3 are also available on OPSC’s Internet Web site at: https://www.dgs.ca.gov/OPSC/

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 257 Resources/Page–Content/Office–of–Public–School– Construction–Resources–List–Folder/Laws–and– Regulations, scroll down to “California Preschool, Transitional Kindergarten and Full–Day Kindergarten Facilities Grant Program,” then “California Preschool, Transitional Kindergarten and FDK Pending Regula - tory Changes” and click on one of the linked docu- ments, such as the 45–day Public Notice, the Initial Statement of Reasons, the proposed regulatory text and the two associated forms. ALTERNATIVES In accordance with Government Code

Section 11346.5(a)(13), the SAB must determine that no rea - sonable alternative it considered or that has otherwise been identified and brought to its attention would be more effective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private persons than the pro - posed action, or would be more cost–effective to af - fected private persons and equally effective in imple - menting the statutory policy or other provision of law. No alternatives were considered. Statute requires the implementation of this Program through regulations.

If no regulations, the SAB would be in violation of the statute. A VAILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, the Final Statement of Reasons will be made available and copies may be requested from the agency’s regulation coordinator named in this notice or may be accessed on the website listed above. TITLE 3. D EPARTMENT OF PESTICIDE REGULATION PESTICIDE DECONTAMINATION SITES DPR REGULATION NO. 23–001 The Department of Pesticide Regulation (DPR) pro- poses to amend Title 3, California Code of Regulations (3 CCR) sections 6720, 6732, 6734, 6738.4, 6771, and 6793.

This proposal will affect pesticide regulatory program activities pertaining to pesticide worker safe- ty. In

summary, the proposed action will amend de - contamination requirements for employees handling pesticides, improve eyewash regulation compliance, and clarify language between sections that mention eyewash equipment or decontamination supplies. This proposed action will require that employees, who han- dle pesticides having a high potential for eye injury, have access to an eyewash station that meets the re - quirements found in the American National Standards Institute (ANSI) Z358.1–2014 standard.

Additionally, it will require employers of employees handling pes - ticides for uses other than the commercial or research production of an agricultural plant commodity to pro - vide a decontamination site at the mixing/loading site or fumigation site for employees, regardless of the pesticide signal word. The proposed action will also clarify language pertaining to decontamination equip- ment, remove duplicative requirements, and ensure standardization. Lastly, the proposed action will clar - ify a personal protective equipment (PPE) exemption that applies when handling liquid fumigants.

SUBMITTAL OF COMMENTS Any interested person may present comments in writing about the proposed action to the agency con - tact person named below. Written comments must be received no later than 5:00 p.m. on May 2, 2023. Comments regarding this proposed action may also be transmitted via email to < dpr23001@cdpr.ca.gov> or by facsimile at 916–324–1491. A public hearing is not scheduled.

However, one will be scheduled if any interested person submits a written request to DPR no later than 15 days prior to the close of the written comment period. 1 EFFECT ON SMALL BUSINESS DPR has determined that the proposed regulatory action does affect small businesses. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW DPR’s mission is to protect public health and the en- vironment from adverse effects of pesticide use.

DPR regulates pesticide product evaluation and registra - tion, statewide licensing of commercial and private pesticide applicators, pest control businesses, dealers, and advisers, conducts environmental monitoring, and pesticide residue testing of fresh produce. This statu - tory scheme is set forth primarily in Food and Agri - cultural Code (FAC) Divisions 6 and 7. FAC sections 12980 and 12981 specifically require that DPR adopt regulations to ensure safe working conditions for persons handling pesticides and work - ing in and about pesticide–treated areas.

DPR’s cur - rent regulatory requirements for decontamination are designed to reduce the risk of pesticide exposure and 1 If you have special accommodation or language needs, please include this in your request for a public hearing. TTY/TDD speech–to–speech users may dial 7–1–1 for the California Relay Service.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 258 injuries among employees who handle pesticides and other workers who may be exposed to pesticides in treated areas. The U.S. Environmental Protection Agency (U.S. EPA) acts under the authority and mandate of the Federal Insecticide, Fungicide, and Rodenticide Act. U.S. EPA protects agricultural workers and agricul - tural pesticide handlers from exposure to pesticides through the Worker Protection Standard (WPS), which is in Title 40 of the Code of Federal Regulations (40 CFR),

part 170, Agricultural WPS. In 2017, U.S. EPA updated the WPS to further reduce agricultur - al worker and agricultural pesticide handler exposure to pesticides. To ensure DPR’s existing worker safety regulations remained consistent with the revised fed - eral WPS, DPR adopted and amended certain regula - tions in 3 CCR. These regulations became effective on January 2, 2017, and included modifications to decon- tamination requirements for pesticide handlers and added prescriptive requirements for eyewash facilities (3 CCR

section 6734). Under existing law, DPR has established require - ments to ensure and protect the safety of workers who handle, store, or transport pesticides, or may be ex - posed by working in areas treated with pesticides (3 CCR

section 6700 et seq.). Existing regulations rec - ognize compliance with applicable 8 CCR regulations (3 CCR

section 6720), require employers to provide change areas (3 CCR

section 6732) and decontamina- tion facilities to these workers (3 CCR

section 6734), establish PPE exemptions (3 CCR

section 6738.4) and requirements for early entry of a treated field (3 CCR

section 6771), and provide safety use requirements for handlers working with minimal exposure pesticides (3 CCR

section 6793).

Section 6734(b)(6) requires em - ployers of employees handling pesticides for produc - tion agriculture uses to provide an eyewash station that meets prescriptive requirements if the product labeling requires protective eyewear or if a closed mixing sys - tem is used. In

section 6734(c), employers are required to provide a decontamination site within 100 feet of the mixing/loading site if the pesticide label bears a signal word (indicating the level of toxicity) of “DAN- GER” and “WARNING” for employees handling pes- ticides for uses other than the commercial or research production of an agricultural plant commodity. The proposed regulations modify current require - ments in ways that will improve worker protections.

Specifically, the proposed regulations will require eyewash stations that meet the ANSI Z358.1–2014 standard if the pesticide product labeling requires em- ployees who are mixing or loading pesticides or han - dling a liquid fumigant to wear protective eyewear, or if employees are using a closed system. In addition, eyewash station requirements will be relocated from subsection 6734(

b) to subsection 6734(

a) so that they will apply to all employees handling pesticides and not just employees handling pesticides for production agriculture uses, and so decontamination site require - ments will be expanded to apply to pesticide uses oth- er than those for the commercial or research produc - tion of an agricultural commodity, including, but not limited to, structural pest control, landscape mainte - nance, applications to rights–of–way, vertebrate pest control, and fumigation of food and non–food com - modities, regardless of signal word.

The proposed regulations also make a number of editorial changes intended to clarify the meaning of the regulatory text, remove redundancies, add consistency, and improve enforceability. Additionally, the proposed action in - corporates some terms and standards from the ANSI standard into the proposed regulations, including what qualifies as eyewash fluid and a technical clari - fication of a temperature range for eyewash fluid that will not cause injury or illness to the user. As a result of the proposed amendments to

section 6734,

section 6720(c), which recognizes compliance with appli - cable sections in 8 CCR, under the authority of the California Department of Industrial Relations (DIR), as compliant with 3 CCR pesticide worker safety re - quirements, will be modified to add the equivalent 8 CCR regulation for emergency eyewash requirements (8 CCR

section 5162). Additionally, as a result of pro- posed amendments to

section 6734, cross–references in

section 6732 will be updated accordingly,

section 6771 will be reworded to align with proposed changes to

section 6734 and the ANSI standard, and a dupli - cative requirement concerning washing facilities will be removed from

section 6793(b). Lastly, the proposed action will clarify that the PPE exemption in

section 6738.4 applies when handling liquid fumigants. The proposed regulations will benefit employees who handle pesticides. This proposal is likely to result in more worker protection from potential exposure to pesticides, including pesticides that could cause eye injury. The federal WPS requirements for eye decon - tamination that were incorporated into 3 CCR in 2017 will be enhanced by requiring equipment that meets the ANSI Z358.1 standard.

Eyewash equipment re - quired by the current regulation omits an essential safety feature of an ANSI Z358.1–2014–compliant eyewash station: once activated, the eyewash station must be able to perform without the use of the opera - tor’s hands. This function is necessary so that the op - erator can use their hands to hold their eyes open while flushing. The equipment required by the proposed regulation provides additional worker protection mea- sures including hands–free operation.

Additionally, requiring an ANSI Z358.1–2014–compliant eyewash station will help enforce the safety and welfare of pes- ticide workers by way of standardization. Employees who mix and load pesticides for uses other than the

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 259 commercial or research production of an agricultural plant commodity will benefit from these regulations by having access to a decontamination site, regardless of the signal word of the pesticide in use. The ability to properly decontaminate and change clothes in the event of an accidental exposure should decrease the severity of injuries and illnesses for these workers.

During the development of the proposed regula - tions, DPR conducted a search for similar regulations on this topic and concluded that the proposed regu - lations are neither inconsistent nor incompatible with existing state regulations. Although DPR and DIR’s Division of Occupational Safety and Health both have regulatory mandates to protect workers from health and safety hazards in workplaces, DPR enforces pes - ticide laws in workplaces where pesticides are used.

IMPACT ON LOCAL AGENCIES OR SCHOOL DISTRICTS DPR determined that the proposed regulatory ac - tion does not impose a mandate on local agencies or school districts. DPR also determined that there are no costs to any local agency or school district requiring reimbursement pursuant to Government Code

section 17500 et seq. OTHER NONDISCRETIONARY COST OR SA VINGS IMPOSED UPON LOCAL AGENCIES DPR has determined that some nondiscretion - ary costs or savings imposed upon local agencies or school districts may result from the proposed regula - tory action. Based on school site pesticide use data, some school districts and local agencies currently apply pesticide products that would necessitate the availability of an eyewash station and/or the avail - ability of a decontamination site under the proposed regulations.

If these school districts and local agencies continue to use these pesticide products, there may be costs related to the purchase of an ANSI Z358.1– compliant eyewash station, including eyewash fluid, or decontamination site supplies. In some cases, al - ternative pesticide products and/or revised pest man - agement practices may negate the need for the pro - curement of an eyewash station or decontamination supplies. On average, the cost of an ANSI Z358.1–compliant eyewash station is $250.

Regarding eyewash fluid, costs may be negligible if using potable water or may be an average of $50 annually if using buffered saline solution. Based on school site pesticide use data, DPR estimates that the mitigation and other regulatory costs of the proposed regulations will initially be $181,000 for all school sites if they choose to use potable water and up to $217,200 for all school sites if they choose to use buffered saline solution.

Over the lifetime of these regulations, mitigation and other regulatory costs are anticipated to be $181,000 for all school sites if they choose to use potable water and up to $362,000 if they choose to use preserved buffered saline solution. Based on local agency pesticide use data, DPR estimates that the mitigation and other regulatory costs of the pro - posed regulations that necessitate the procurement of an eyewash station will initially be $581,250 for local agencies if they choose to use potable water and up to $697,500 if they choose to use preserved buffered saline solution.

Over the lifetime of these regulations, mitigation and other regulatory costs are anticipated to be $581,250 for all local agencies if they choose to use potable water and up to $1,162,500 if they choose to use preserved buffered saline solution. The average cost of decontamination supplies is $55. Additionally, if all decontamination supplies are replaced annually, with the exception of water con - tainers, DPR estimates an equal cost of $35 per decon- tamination site per year.

Based on school site pesticide use data, DPR estimates that the mitigation and oth - er regulatory costs of the proposed decontamination site regulations will initially be $193,105 for all school sites. Over the lifetime of these regulations, mitiga - tion and other regulatory costs are anticipated to be $684,645 for all school sites. Based on local agency pesticide use data, DPR estimates that the mitigation and other regulatory costs of the proposed decontami- nation site regulations will initially be $108,625 for all local agencies.

Over the lifetime of these regulations, mitigation and other regulatory costs are anticipated to be $385,125 for all local agencies. COSTS OR SA VINGS TO STATE AGENCIES DPR anticipates some increased costs to state agen- cies will result from the proposed regulatory action. A total of 12 state agencies are estimated to current - ly use pesticide products that would necessitate the availability of an ANSI Z358.1–compliant eyewash station or decontamination site supplies under the pro- posed regulations. On average, the cost of an ANSI Z358.1–compliant eyewash station is $250.

Regarding eyewash fluid, costs may be negligible if using potable water or may be an average of $50 per year if using a costlier option like buffered saline solution. Based on state agency pesticide use data, DPR estimates that the mitigation and other regulatory costs of the proposed eyewash station regulations will initially be $310,000 for all state agencies if they choose to use potable water and up to $372,000 for all state agencies if they choose to use buffered saline solution.

Over the lifetime of these regulations, mitigation and other regulatory costs associated with the eyewash station regulations are anticipated to be $310,000 for all state

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 260 agencies if they choose to use potable water and up to $620,000 if they choose to use preserved buffer saline solution. Regarding the decontamination site requirements, an equal cost of $55 for decontamination supplies is estimated for a decontamination site. Additionally, as- suming all decontamination supplies will be replaced annually, with the exception of water containers, an equal cost of $35 per decontamination site per year is anticipated.

Based on state agency pesticide use data, DPR estimates that the mitigation and other regulatory costs of the proposed decontamination site regulations will initially be $104,500 for all state agencies. Over the lifetime of these regulations, mitigation and other regulatory costs associated with the decontamination site regulations are anticipated to be $370,500. EFFECT ON FEDERAL FUNDING TO THE STATE DPR determined that no costs or savings in feder - al funding to the state will result from the proposed action.

EFFECT ON HOUSING COSTS DPR made an initial determination that the pro - posed action will have no effect on housing costs. SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT DIRECTLY AFFECTING BUSINESSES DPR made an initial determination that adoption of these regulations will not have a significant statewide adverse economic impact directly affecting business - es, including the ability of California businesses to compete with businesses in other states.

COST IMPACTS ON REPRESENTATIVE PRIVATE PERSONS OR BUSINESSES In reasonable compliance with the proposed regu - lations, farmers and pest control businesses may be affected by the proposed amendments to the eyewash station requirement. Some businesses affected by this requirement may already have ANSI–compliant eye - wash stations. However, those that do not already have these stations will have to purchase them and may in - cur initial costs of approximately $250 per eyewash station.

The recurring costs of upkeep may be negligi- ble if using potable water, or may be minor (approxi - mately $50 per year) if using supplemental additives to sterilize the eyewash fluid. Pest control businesses, who handle pesticides for purposes other than the commercial or research pro - duction of an agricultural plant commodity, and that do not currently use pesticides with the signal word “DANGER” or “WARNING,” may be affected by the proposed requirements that update decontamina - tion site supply and location requirements.

The pro - posed action will require decontamination sites to be available for employees using any pesticide, regard - less of signal word. Many businesses affected by this requirement already have decontamination sites. For those who do not have decontamination sites, the cost of decontamination supplies (excluding eyewash flu - ids) is estimated to be $55 for pest control businesses, and would only need to be replenished if used. The recurring costs of replenishing the decontamination supplies is estimated to be $35 annually.

RESULTS OF THE ECONOMIC I M PACT A NA LYSIS Impact on the Creation, Elimination, or Expansion of Jobs/Businesses: DPR determined that it is not like- ly that the proposed regulatory action will impact the creation or elimination of jobs, the creation of new businesses or the elimination of existing businesses, or the expansion of businesses currently doing business with the State of California. This action clarifies the existing eyewash equipment requirement and aligns it with other standards and regulations that are currently in place for other similar industries.

The decontamina- tion facility expansion is expected to cost $100 or less for most businesses that use pesticides for purposes other than the commercial or research production of an agricultural plant commodity and is therefore not expected to affect creation, elimination, or expansion of jobs/businesses. The Benefits of the Regulation to the Health and Welfare of California Residents, Worker Safety, and the State’s Environment: The proposed regulations will benefit employees who handle pesticides.

This proposal is likely to result in more worker protection from potential exposure to pesticides, including pes - ticides that could cause eye injury. The federal WPS requirements for eye decontamination that were in - corporated into 3 CCR in 2017 will be enhanced by requiring equipment that meets the ANSI Z358.1 stan- dard. This equipment provides additional worker pro - tection measures including hands–free operation. Ad - ditionally, requiring equipment that meets the ANSI standard will help reinforce the safety and welfare of pesticide workers.

Employees who mix and load pes - ticides for uses other than the commercial or research production of an agricultural plant commodity will benefit from these regulations by having access to a decontamination site, regardless of the signal word of the pesticide in use. The ability to properly decontam- inate and change clothes after an accidental exposure

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 261 should decrease the severity of injuries and illnesses for these workers. The proposed regulations will not affect the health and welfare of California residents or the state’s environment.

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

The proposed amendments will bring DPR’s worker safety regulations into align- ment with DIR’s eyewash regulations in 8 CCR sec - tion 5162, which requires an ANSI eyewash station, while maintaining equivalency with U.S. EPA ’s WPS, 40 CFR,

part 170. Additionally, the proposed changes to decontamination facility requirements for uses oth - er than the commercial or research production of an agricultural plant commodity will provide increased worker protection that is not found in other laws or regulations. AUTHORITY This regulatory action is taken pursuant to the authority vested by FAC sections 11456 and 12981. REFERENCE This regulatory action is to implement, interpret, or make specific FAC sections 11501, 12973, 12980, and 12981.

A VAILABILITY OF STATEMENT OF REASONS AND TEXT OF PROPOSED REGULATIONS DPR prepared an Initial Statement of Reasons and is making available the express terms of the proposed action, all of the information upon which the proposal is based, and a rulemaking file. A copy of the Initial Statement of Reasons and the proposed text of the regulations may be obtained from the agency contact person named in this notice. The information upon which DPR relied in preparing this proposal and the rulemaking file are available for review at the address specified below.

A VAILABILITY OF CHANGED OR MODIFIED TEXT After the close of the comment period, DPR may make the regulations permanent if they remain sub - stantially the same as described in the Informative Digest. If DPR does make substantial changes to the regulations, the modified text will be made available for at least 15 days prior to adoption. Requests for the modified text should be addressed to the agency contact person named in this notice. DPR will accept written comments on any changes for 15 days after the modified text is made available.

AGENCY CONTACT Written comments about the proposed regulatory action; requests for a copy of the Initial Statement of Reasons, and the proposed text of the regulations; and inquiries regarding the rulemaking file may be direct - ed to: Lauren Otani, Senior Environmental Scientist (Specialist) Department of Pesticide Regulation 1001 I Street, P.O.

Box 4015 Sacramento, California 95812–4015 (916) 445–5781 Note: In the event the contact person is unavailable, questions on the substance of the proposed regulatory action may be directed to the following back–up per - son at the same address as noted below: Emily Bryson, MPH, Senior Environmental Scientist (Supervisory) Worker Health and Safety Branch (916) 324–6344 This Notice of Proposed Action, the Initial State - ment of Reasons, and the proposed text of the regula - tions are also available on DPR’s Internet Home Page <http://www.cdpr.ca.gov>.

Upon request, the docu - ments can be made available in another language, or an alternate form as a disability–related accommodation. A VAILABILITY OF FINAL STATEMENT OF REASONS Following its preparation, a copy of the Final State- ment of Reasons mandated by Government Code sec- tion 11346.9(

a) may be obtained from the contact per- son named above. In addition, the Final Statement of Reasons will be posted on DPR’s Internet Home Page and accessed at <http://www.cdpr.ca.gov>.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 262 TITLE 10. DEP ARTMENT OF FINANCIAL PROTECTION AND INNOV ATION UNDER THE CALIFORNIA CONSUMER FINANCIAL PROTECTION LAW AND THE CALIFORNIA FINANCING LAW, CALIFOR- NIA DEFERRED DEPOSIT TRANSACTION LAW, AND CALIFORNIA STUDENT LOAN SERVICING ACT PRO 01–21 The Department of Financial Protection and Inno - vation (“Department”) proposes to adopt the follow - ing sections to Title 10,

Chapter 3, of the California Code of Regulations: ● Sections 1000, 1001, 1002, 1003, 1004, 1010, 1011, 1012, 1020, 1021, 1022, 1023, 1024, 1025, 1026, 1030, 1031, 1032, 1033, and 1034 to

Article 1, Sections 1040, 1041, 1042, 1043, 1044, and 1045 to

Article 2, and Sections 1048, 1050, 1051, and 1052 to

Article 3 of Subchapter 4; ●

Section 1430.1 to

Article 3, and Sections 1461, 1462, 1462.5, 1463, 1464, 1465, and 1466 to

Article 4 of Subchapter 6; ●

Section 2030.5 to

Article 3 of Subchapter 13; and ●

Section 2044.1 to

Article 6 of Subchapter 15. The proposed regulations implement, interpret, and make specific the registration requirements for cov - ered persons under Financial Code

section 90009 of the California Consumer Financial Protection Law (CCFPL) 1 and the requirements for exemption from registration under the CCFPL for licensees under the California Financing Law (CFL), California Deferred Deposit Transaction Law (CDDTL), and Student Loan Servicing Act (SLSA), and clarify the regulation of advances pursuant to Financial Code

section 22150 of the CFL 2 administered by the Department. AUTHORITY Financial Code sections 22150, 22154, 22159, 23015, 23026, 28106, 28146, 90007, 90009, and 90010; and Government Code

section 7929.000. REFERENCE Financial Code sections 22100, 22154, 22159, 22200, 22203, 22307, 22335, 23026, 28146, 90003, 90005, 90006, 90007, 90009, 90009.5, 90010, 90015, 90018; and Government Code

section 7929.000. 1 Financial Code, § 90000 et seq. 2 Financial Code, § 22000 et seq. PUBLIC HEARING The Department has not scheduled a public hear - ing on this proposed action but will hold one if any interested person or authorized representative makes a written request for a hearing to the Department’s designated contact person below, no later than 15 days prior to the close of the written comment period.

WRITTEN COMMENT PERIOD Any interested person or authorized representative may submit written comments regarding this pro - posed regulatory action to the Department, addressed as follows, by postal or electronic mail: By Postal Mail Department of Financial Protection and Innovation Attention: Araceli Dyson 2101 Arena Boulevard Sacramento, California 95834 By Electronic Mail Comments may be submitted electronically to regulations@dfpi.ca.gov with a copy to Peggy. Fairman@dpfi.ca.gov. Please identify the comments as PRO 01–21 in the subject line. Written comments must be submitted by May 2, 2023.

INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW On September 25, 2020, Governor Newsom signed Assembly 1864 3 establishing the CCFPL, 4 which en - hanced the Department’s oversight authority to cover business activity that was previously unregulated, 5 in- cluding, but not limited to, debt collection, debt set - tlement, credit repair, check cashing, rent–to–own contracts, retail sales financing, consumer credit re - porting, and lead generation. 6 Among other things, the Legislature intended for the CCFPL to protect consumers from discrimination and unfair, unlawful, deceptive, and abusive acts and practices by covered persons in connection with financial products and services. 7 3 Stats. 2020, ch. 157 (Assem.

Bill No. 1864), § 7, eff. Jan. 1, 2021. 4 Financial Code, § 90000 et seq. 5 This is a

summary of the state–of–affairs before the CCFPL’s enactment. It is not intended to represent a determination of law that the listed activities, or others covered by the CCFPL, are not subject to other laws under the Department’s jurisdiction. 6 Sen. Banking and Financial Institutions Com., Rep. on Assem. Bill No. 1864 (2019–2020 Reg. Sess.) as amended Aug. 25, 2020, p. 4. 7 Financial Code, § 90000, subdivision (b)(3).

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 263 The CCFPL empowers the Department to require registration of covered persons engaged in the busi - ness of offering and providing a consumer financial product or service, but it does not specify requirements for registration. Financial Code

section 90009 of the CCFPL leaves it to the Department to prescribe rules regarding these requirements. The proposed regula - tions would clarify and make specific the registration of covered persons, including specifying the persons who are subject to regulation under the CCFPL, es - tablishing the registration application and application process, and specifying the application fee and annual renewal fee. Financial Code

section 90009, subdivision (a)(2)(A), of the CCFPL exempts from registration certain cov - ered persons who provide consumer financial products or services within the scope of their licenses issued under other Department laws. The code section, how - ever, does not specify who is exempt from registration. The proposed regulations would specify the persons who are exempt and the conditions for exemption. Financial Code

section 90009, subdivision (f)(2), of the CCFPL provides that the Department may require registrants to file annual reports to enable the Depart - ment to fulfill its responsibilities to monitor, assess, and report on the activities of registrants. The code

section does not specify the requirements and leaves it to the Department’s discretion to prescribe the form of the report and other reporting requirements. The proposed regulations would establish annual reporting requirements and the process for filing annual reports with the Department, including the reporting period, and specify the information that registrants must pro - vide in the reports. Financial Code

section 90007, subdivision (b), of the CCFPL provides that the Department may charge registrants an annual registration fee for the reason - able costs of the registration program, which may be based on the size or market participation of the reg - istrant. The code section, however, does not speci - fy the amount of the fee, the process for paying the fee, or other requirements. The proposed regulations would establish the annual assessment fee and spec - ify the requirements for paying the assessment to the Department. Financial Code

section 22150 authorizes the Com - missioner to make rules and regulations to enforce the CFL. The proposed regulations would clarify certain provisions of the CFL relating to advances to be repaid from a consumer’s future earned or unearned pay.

Anticipated Benefits of the Proposed Regulations This regulatory action implements the Legislature’s broad intent in enacting the CCFPL: to strengthen consumer protections by expanding the ability of the Department to improve accountability and transparen- cy of financial products and services and protect con- sumers from unfair, unlawful, deceptive, or abusive financial practices, while prioritizing the prevention of unethical businesses from harming the most vul - nerable populations. 8 The specific benefits anticipated from the proposed regulations are increased protec - tion of consumers, particularly vulnerable consumers, from unfair or illegal business practices by requiring persons who provide debt settlement, student debt re - lief, education financing, and income–based advances products and services to register and report on their business practices, the products and services they are providing to consumers, where they are operating, and how they are providing the products and services to consumers, and by limiting higher costs to consumers who take out income–based advances.

Summary of Existing Laws and Regulations, and Effect of Proposed Action Existing law authorizes the Department to prescribe the registration requirements for covered persons en - gaged in the business of offering or providing a con - sumer financial product or service. 9 This proposed regulatory action implements the statutory require - ments by: ● D efining the terms used in the proposed rules; ● I dentifying the persons who must register under the proposed rules as persons who provide the following products and services: debt settlement, student debt relief, education financing, and in - come–based advances; ● R equiring separate registration for each subject product offered or provided by an applicant; ● C larifying the prohibitions against making false or misleading statements in an application or an - nual report and making any representation that a registrant’s practices or business has been ap - proved by the Department; ● E stablishing the process for registering with the Department, including the application form and the information that must be submitted as part of the application, requiring the applica- tion to be submitted to the Department through the Nationwide Multistate Licensing System and Registry (“NMLS”), and requiring registrants to pay an application fee of $350; ● E stablishing the processes, including time frames, for approving registrations and the aban - donment of registrations; ● E stablishing the process for registrants to re - port changes to the application information to the Department and the time frames for reporting the information; 8 Financial Code, § 90000, subdivision (a)(4). 9 Financial Code, § 90009, subdivision (a)(1).

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 264 ● Requiring registrants to establish a designated email address to enable the Department to send notices and other communications to registrants; ● Providing that the applications and annual re - ports are not subject to public disclosure; and ● Establishing the requirements for revoking and surrendering registrations.

Existing law exempts from CCFPL registration cer- tain licensees who provide consumer financial prod - ucts or services “within the scope of” their licenses issued under other Department laws. 10 This proposed regulatory action clarifies the meaning of “within the scope of” and specifies that licensees under the CFL and the CDDTL are exempt from registering under the CCFPL and requires exempt licensees who provide products or services that would otherwise be subject to registration under the CCFPL to submit supplemen- tal information on these activities in their annual re - ports required under their license.

Although an SLSA license does not confer upon a licensee the authority to originate financing within the scope of their license, the regulations exempt SLSA licensees from registration requirements for education financing when they meet specified requirements.

Existing law authorizes the Department to require reports from registrants to obtain information about their activities and to detect and assess risks to con- sumers and markets. 11 This proposed regulatory ac - tion requires each registrant to submit annual reports to the Department by March 15 of each year, begin - ning March 15, 2025, and specifies the information that must be included in the annual report, provides that the Department may summarily revoke a regis - tration for failing to file an annual report, and permits a registrant whose registration is revoked to reinstate their registration by submitting a written request and paying an administrative fine, and establishes the time frames for submitting written requests and the amount of the administrative fines.

Existing law authorizes the Department to set and collect an annual registration fee from each regis - trant. 12 This proposed regulatory action establishes the amount of the annual assessment and sets forth the process and time frames for paying the assessment to the Department with the first assessment payment due by December 31, 2024, provides that the Department may by order summarily revoke a registration for fail- ure to payment the annual assessment, and permits a registrant whose registration is revoked to reinstate their registration by submitting a written request and paying an administrative fine, and establishes the time 10 Financial Code, § 90009, subdivision (a)(2)(A). 11 Financial Code, § 90009, subdivision (f)(2). 12 Financial Code, § 90007, subdivision (b). frames for submitting written requests and the amount of the administrative fines.

Existing Law authorizes the Department to promul- gate rules under the CFL. 13 This proposed regulatory action clarifies the applicability of the CFL to certain activities by: ● Clarifying that an advance of funds to be repaid from a consumer’s future earned or unearned pay is a loan subject to the CFL; ● Exempting from licensure under the CFL provid- ers of income–based advances and education fi - nancing who are registered under the CCFPL and whose charges do not exceed the charges permit- ted under the CFL; ● Clarifying that the prohibition on collecting loan payments within 15 days of the date of originat - ing the loan does not apply to loans that are col - lected in a single payment; ● Clarifying that monthly subscription fees are not charges under the CFL if the fees meet certain consumer protection requirements; ● Clarifying that tips or other voluntary payments are charges under the CFL; and ● Clarifying that a loan contract complies with the CFL ’s requirement of equal periodic payments if the contract provides the borrower with the option of making payments based on a fixed percentage of the borrower’s income or making equal period- ic payments; and ● Clarifying that a contract complies with the CFL ’s requirement that the first loan payment be within one month and 15 days from the date the loan is made if the loan contract does not accrue charges during the period of forbearance.

Existing Federal Regulation or Statute There are no comparable federal registration or annual information reporting requirements. The pro - posed regulatory action is not inconsistent with exist - ing federal statutes and regulations.

Determination Concerning Inconsistency/ Incompatibility with Existing State Regulations The Department evaluated the proposed regulations for consistency and compatibility with existing state regulations and has concluded that these are the only regulations pertaining to registration and regulation of covered persons under the CCFPL or the regulation of advances to be repaid from a consumer’s earned or unearned pay under the CFL. Therefore, the proposed regulations are neither inconsistent nor incompatible with existing state regulations. 13 Financial Code, § 22150.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 265 Forms Incorporated by Reference This proposed regulatory action incorporates the following forms by reference: NMLS Company Form, Version 11.0, dated 09/12/15; and NMLS Individual Form, Version 9, dated 9/12/2016. The Department has determined that it would be cumbersome, burdensome, and impractical to pub - lish the NMLS forms in the California Code of Reg - ulations because the forms are lengthy with specific formatting requirements.

The forms are uniform for every Department law that requires the use of NMLS and therefore it would be impractical and unduly ex - pensive to include the same uniform forms within each law’s regulations. The application forms are the basis for an interactive electronic filing of the informa- tion contained in the forms and publishing the forms in the California Code of Regulations may confuse an applicant or registrant and result in the applicant or registrant attempting to file the form rather than submitting the information electronically.

Further, NMLS provides extensive information to applicants and registrants on how to navigate the NMLS system and file or upload the requested information and pub - lishing the forms may confuse an applicant or regis - trant seeking information on how to submit the infor - mation. The forms are readily available to the public through the NMLS website. Live links to the forms are provided on the Department’s website and both the Department and NMLS maintain call centers to assist applicants and registrants in accessing the uni - form forms.

Applicants who operate financial services businesses in other states are likely already familiar with the NMLS forms because many states require registration or licensure of financial services provid - ers through NMLS. DISCLOSURES REGARDING THE PROPOSED ACTION The Department has made the following initial determinations: Mandate on local agencies or school districts: None. Cost to any local agency or school district which must be reimbursed in accordance with Government Code sections 17500 through 17630: None.

Cost or savings to any state agency: Costs to imple- ment the proposed regulations are absorbable within existing resources. Ongoing costs are estimated to be $9,032,644 and are recoverable via registration and annual assessment fees. Other nondiscretionary cost or savings imposed on local agencies: None. Cost or savings in federal funding to the state: None. Effect on housing costs: No significant effect.

ADVERSE ECONOMIC IMPACT ON BUSINESS The Department has made an initial determination this proposed regulatory action will not have a signif - icant, statewide, adverse, economic impact directly affecting business, including the ability of California businesses to compete with businesses in other states. EFFECT ON SMALL BUSINESS This regulatory action may impact small business. COST IMPACTS ON REPRESENTATIVE PRIVATE PERSON OR BUSINESS Applicants will likely incur initial costs estimated at $5,790 to register with the Department.

The initial costs include a $350 Department application fee and estimated costs of $1,680 to prepare the application and $3,760 to develop an annual reporting system. The costs to complete and file an application are an - ticipated to be reasonable for applicants because the Department is not requiring applicants to provide fin - gerprints of their key personnel, submit to criminal background investigations, or register their branch of- fices.

Costs may be less for those applicants who are registered or licensed with other states through NMLS because they are already familiar with the NMLS ap - plication and filing protocols. Registrants will likely incur annual estimated costs of approximately $12,944 to comply with the require- ments to maintain a registration.

Annual costs include a $100 annual fee to renew the registration through NMLS and estimated costs of $544 to prepare and file the annual report with the Department and to report changes to the information in the registrant’s appli - cation to the Department, if any, and the annual as - sessment, which is set at a minimum amount of $500 each year. The Department estimates that the amount of the annual assessment is $12,300, based on 385 reg- istrants and assuming the same gross income for all registrants.

The actual amount of the annual assess - ment for each registrant, however, will depend on the number of registrants, the Department’s costs of ad - ministering the registration program for the year, and the registrant’s gross income for the year. There is no fee for filing an annual report or reporting changes to the application information. RESULTS OF THE ECONOMIC I M PACT A NA LYSIS The Department has determined: ● The proposed action is unlikely to create or elim- inate jobs within California;

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 266 ● The proposed action is unlikely to create new businesses or eliminate existing businesses with - in California; ● The proposed action is unlikely to affect the ex - pansion of businesses currently doing business within California; ● The proposed action may benefit the health and welfare of California residents by improving ac - countability and transparency of financial prod - ucts and services and protecting consumers from abusive business practices and high cost prod - ucts; and ● No benefits or adverse impacts to worker safety or to the state’s environment are anticipated from this regulatory action.

BUSINESS REPORTING REQUIREMENT The Department has determined it is necessary for the health, safety, or welfare of the people of this state that the reports required in this regulatory action ap - ply to businesses.

CONSIDERATION OF ALTERNATIVES The Department must determine that no reasonable alternative it considered or that has otherwise been identified and brought to its attention would be more effective in carrying out the purpose for which the ac- tion is proposed, would be as effective and less bur - densome to affected private persons than the proposed action, or would be more cost–effective to affected pri- vate persons and equally effective in implementing the statutory policy or other provision of law.

A VAILABILITY OF THE NOTICE, STATEMENT OF REASONS, TEXT OF PROPOSED REGULATIONS AND RULEMAKING FILE The Department will make the entire rulemak - ing file, including this notice, the initial statement of reasons, and the proposed text of the regulations, available for inspection and copying throughout the rulemaking process at the address provided, and from the persons identified, in the “Contact Persons” sec - tion of this notice. A VAILABILITY OF THE DOCUMENTS ON THE INTERNET The notice, initial statement of reasons, and pro - posed text are also available on the Department’s website at www.dfpi.ca.gov.

To access the documents from the Department’s website, click on “Laws and Regulations” under the “Licensees” tab at the top of the home page, then on the “Regulations/Rulemaking” link, and then on the “California Consumer Financial Protection Law” link. A VAILABILITY OF CHANGED OR MODIFIED TEXT After holding the hearing, if scheduled, and consid- ering all timely and relevant comments, the Depart - ment may adopt the proposed regulations substantially as described in this notice.

If the Department makes modifications 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 prior to adopting the revised regulations. Requests for a copy of any modified regulation(

s) must be addressed to the contact persons named in this no - tice. The Department will accept written comments on the modified regulations for at least 15 days after the date they are made available. A VAILABILITY OF THE FINAL STATEMENT OF REASONS The Final Statement of Reasons will be available when completed. Copies may be requested from the contact person named in this notice or accessed on the website listed above.

CONTACT PERSONS Please direct all inquiries concerning the proposed rulemaking action (including requests for copies of the proposed text of the regulations, the initial state - ment of reasons, or the modified text of the regulation, and questions regarding the timelines or rulemaking status) to: Araceli Dyson Department of Financial Protection and Innovation 2101 Arena Boulevard Sacramento, California 95834 Telephone: (916) 576–8620 email: regulations@dfpi.ca.gov The backup contact person for these inquiries is: Peggy Fairman Department of Financial Protection and Innovation 2101 Arena Boulevard Sacramento, California 95834 Telephone: (916) 576–4959 email: Peggy.Fairman@dfpi.ca.gov Dated: March 7, 2023 Sacramento, California

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 267 TITLE 11. D EPARTMENT OF JUSTICE DIVISION 1. A TTORNEY GENERAL

CHAPTER 10. B UREAU FOR PRIVATE AND POSTSECONDARY EDUCATION EXEMPTION VERIFICATION The Department of Justice (Department) proposes to adopt

section 940 of title 11, division 1,

chapter 10 of the California Code of Regulations concerning the Attorney General’s verification of an institution of higher education’s nonprofit status. PUBLIC HEARING The Department has not scheduled a public hear - ing on this proposed regulatory action. However, the Department will hold a hearing if it receives a written request for a public hearing from any interested per - son, or their authorized representative, no later than 15 days before the close of the written comment period.

WRITTEN COMMENT PERIOD Any interested person or their authorized represen - tative may submit written comments relevant to the proposed regulatory action. The written comment pe - riod closes on May 2, 2023, at 5:00 p.m. Only written comments received by that time will be considered. Please submit written comments to: Department of Justice Office of the Attorney General Charitable Trusts

Section Attention: Scott Chan, Deputy Attorney General 455 Golden Gate Avenue, Suite 11000 San Francisco, CA 94102–7004 (415) 510–3430 Scott.Chan@doj.ca.gov NOTE: Written and oral comments, attachments, and associated contact information (e.g., address, phone, email, etc.) become part of the public record and can be released to the public upon request. AUTHORITY AND REFERENCE Authority:

Section 94874.1, Education Code. Reference: Sections 94874.1 and 94874.9, Education Code. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW

Summary of Existing Laws and Regulations: In 2009, the Legislature passed the Private Post - secondary Education Act (the “Act”) creating a new oversight board within the Department of Consumer Affairs, the Bureau for Private Postsecondary Edu- cation (the “Bureau”). (See https://www.bppe.ca.gov.) The Bureau is generally responsible for protecting consumers and students against fraud, misrepresenta - tion, and other business practices that may lead to loss of students’ tuition and related educational funds; and for imposing minimum standards for ethical business practices, fiscal integrity, and instructional quality of private postsecondary education institutions. (Educa- tion Code, § 94800 et seq.)1 The Bureau oversees in–state institutions, as well as certain out–of–state institutions offering online instruction to California residents.

The Act exempts certain types of institutions from the Bureau’s regu- latory oversight if specific criteria are met. (§ 9 4874.) Institutions meeting the Act’s definition of “nonprofit corporation” or “public institution of higher educa- tion” are exempt from certain requirements imposed on out–of–state institutions. (§ 94801.5.) Effective January 1, 2022, the Bureau is prohibit - ed from verifying the exemption of, or contracting to handle complaints for, a nonprofit institution if it op - erated as a for–profit institution during any period on or after January 1, 2010, unless the Attorney General verifies specified information about the conversion. (§ 9 4874.1, subdivision (a).) The Attorney General must provide written notification of its verification to the institution and to the Bureau within 90 days of receipt of all information the Attorney General deter - mines is necessary for the verification. ( Id., subdivi- sion (d).) The Attorney General’s verification notice may be appealed to the superior court. ( Id., subdivi- sion (b).) Effect of the Proposed Rulemaking: The proposed regulation creates a procedure for the Attorney General to verify the nonprofit status of an institution of higher education.

The “Application for Verification,” Form CT–SCHOOL–1, has been created for this purpose. Anticipated Benefits of the Proposed Regulations: Financial restrictions at nonprofit and public col - leges make it difficult for school leaders to profit from bad behavior. Being a nonprofit has traditionally re - quired an institution to devote all of its revenues to its educational purpose, and prohibit any form of prof - it–taking, so that those in control are not tempted to take advantage of students or the public.

These restric- tions have been so effective in protecting students that state and federal laws frequently provide funding only to nonprofit and public institutions, or apply stricter guidelines if for–profit colleges seek access to taxpay- er funds. 1 All references are to the Education Code unless otherwise in - dicated.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 268 The Legislature amended the Act in 2020 because some for–profit colleges deceptively converted and claimed nonprofit or public status to lure new students and escape regulatory oversight. These colleges used complicated financial schemes and shell corporations to wrongfully claim nonprofit status without adopting the restrictions that actually protect students.

By cre - ating a procedure for the Attorney General to verify the nonprofit status of a higher education institution that once operated as a for–profit entity, the proposed regulation protects students and ensures that appropri- ate oversight remains. Comparable Federal Regulations: There are no existing federal regulations or statutes comparable to these proposed regulations. Determination of Inconsistency/Incompatibility with Existing State Regulations: The Department has determined that these proposed regulations are not inconsistent or incompatible with existing State regulations.

After conducting a review for any regulations that would relate to or affect this area, the Department has concluded that these are the only regulations that concern the Attorney General’s verification of an institution of higher education’s non- profit status. Forms Incorporated by Reference: None. Other Statutory Requirements: None. DISCLOSURES REGARDING THE PROPOSED ACTION The Department’s Initial Determinations: Mandate on local agencies or school districts: None. Cost or savings to any state agency: The regulations are expected to have an ongoing fiscal impact on the Department of $41,250 per year.

Cost to any local agency or school district which must be reimbursed in accordance with Government Code sections 17500 through 17630: None. Other non–discretionary costs or savings imposed on local agencies: None. Cost or savings in federal funding to the state: None. Cost impacts on representative person or business: The Department has determined that any cost impact to businesses from the proposed regulations would be minimal. The Department estimates that it will take no more than an hour to complete and submit the re - quired form or any additional information requested by the Attorney General.

Significant effect on housing costs: None. Significant, statewide adverse economic impact di - rectly affecting businesses, including ability to com - pete: The Department has made an initial determina - tion that that the proposed action will not have a sig - nificant, statewide adverse economic impact directly affecting businesses, including the ability of California businesses to compete with businesses in other states.

Results of the Economic Impact Assessment (EIA): The Department concludes that it is (1) unlikely that the proposal will create or eliminate jobs within the state, (2) unlikely that the proposal will create new businesses or eliminate existing businesses within the state, (3) unlikely that the proposal will result in the expansion of businesses currently doing business within the state. The Department also concludes that:

(1) The proposal would benefit the health and wel - fare of California residents by verifying the non - profit status of institutions of higher learning and ensuring that students and taxpayers are not mis - lead by untruthful claims.

(2) The proposal would not benefit worker safety be- cause it does not regulate worker safety standards.

(3) The proposal would not benefit the state’s envi - ronment because it does not change any applica - ble environmental standards. Business report requirement:

Section 94874.1, subdivision (a), requires the At - torney General to verify specified information before the Bureau verifies the nonprofit institution is exempt from the Act. The “Application for Verification,” Form CT–SCHOOL–1, has been created for this purpose. The Department finds it is necessary for the health, safety or welfare of the people of this state that pro - posed

section 940, which requires a report, applies to businesses. Small business determination: The Department has determined that this proposed action does not affect small businesses because nonprofits are exempt from the definition of “small business.” (Government Code, § 11342.610, subdivision (b)(6).) CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5, subdivision (a)(13), the Department must de- termine that no reasonable alternative considered by the Department or that has otherwise been identified and brought to the attention of the Department would be more effective in carrying out the purpose for which the action is proposed or would be as effective and less burdensome to affected private persons than the proposed action or would be more cost–effective to affected private persons and equally effective in im- plementing the statutory policy or other provision of law. The Department has determined that the proposed regulations are the most effective way to verify an in -

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 269 stitution of higher education’s nonprofit status. A sim- ple form was created for the institution to provide the necessary information to the Department. The appli - cant has to answer only four “yes” or “no” questions on the form and provide a narrative description of the transaction. A narrative description of the transaction should already be readily available to the applicant because the salient details of the transaction should be memorialized in transaction documents or the minutes of board of director meetings.

The proposed procedures and form are the least burdensome way to ensure that the institution provides all required infor - mation to the Department. CONTACT PERSONS Inquiries concerning the proposed administrative action may be directed to: Department of Justice Office of the Attorney General Charitable Trusts

Section Attention: Scott Chan, Deputy Attorney General 455 Golden Gate Avenue, Suite 11000 San Francisco, CA 94102–7004 (415) 510–3430 Scott.Chan@doj.ca.gov Questions regarding procedure, comments, or the substance of the proposed action should be addressed to the above contact person. In the event the contact person is unavailable, inquiries regarding the pro - posed action may be directed to the following backup contact person: Marlon Martinez Department of Justice 300 S.

Spring Street, Suite 1702 Los Angeles, CA 90013 (213) 269–6437 regulations@doj.ca.gov A VAILABILITY OF STATEMENT OF REASONS, TEXT OF PROPOSED REGULATIONS, AND RULEMAKING FILE The Department will have the entire rulemaking file available for inspection and copying throughout the rulemaking process upon request to the contact person above.

As of the date this Notice of Proposed Rulemaking (Notice) is published in the Notice Reg - ister, the rulemaking file consists of this Notice, the Text of Proposed Regulations (the “express terms” of the regulations), the Initial Statement of Reasons, and any information upon which the proposed rulemaking is based. The text of this Notice, the express terms, the Initial Statement of Reasons, and any informa - tion upon which the proposed rulemaking is based are available on the Department’s website at https:// oag.ca.gov/charities/laws.

Please refer to the contact information listed above to obtain copies of these documents. A VAILABILITY OF CHANGED OR MODIFIED TEXT After the Department analyzes all timely and rel - evant comments received during the 45–day public comment period, the Department will either adopt these regulations substantially as described in this notice or make modifications based on the comments.

If the Department makes modifications which are sufficiently related to the originally–proposed text, it will make the modified text (with the changes clearly indicated) available to the public for at least 15 days before the Department adopts the regulations as re - vised. Please send requests for copies of any modified regulations to the attention of the name and address indicated above. The Department will accept written comments on the modified regulations for 15 days af - ter the date on which they are made available.

A VAILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, a copy of the Final Statement of Reasons will be available on the Department’s web- site at https://oag.ca.gov/charities/laws. Please refer to the contact information included above to obtain a written copy of the Final Statement of Reasons. A VAILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Rulemaking, the express terms, the Initial Statement of Reasons, and any information upon which the proposed rulemaking is based are available on the Department’s website at https://oag.ca.gov/charities/laws. TITLE 13.

NEW MOTOR VEHICLE BOARD NOTICE IS HEREBY GIVEN t h a t t h e C a l i f o r- nia New Motor Vehicle Board (“Board”), pursuant to the authority vested in the Board by subdivision (

a) of Vehicle Code

section 3050 proposes to adopt the proposed regulation as described below, after consid - ering all comments, objections, and recommendations regarding the proposed regulatory action.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 270 PROPOSED REGULATORY ACTION The Board proposes to add

section 551.26 of Title 13 of the California Code of Regulations pertaining to representation in protests and petitions. PUBLIC DISCUSSIONS PRIOR TO NOTICE Prior to the publication of this notice, the Board considered and adopted the proposed regulation at a noticed General Meeting held on November 7, 2022. Fourteen (14) days prior to the meeting, a detailed agenda including the consideration of the proposed text of the regulation was mailed to all individuals and entities on the Board’s Public Mailing list, Electronic Public Mailing list, and website subscription list.

The agenda was also posted on the Board’s website. No comments by the public were received at the November 7, 2022, General Meeting in relation to the regulation in this notice, and no further public discus - sion was held prior to publication of the notice. PUBLIC HEARING The Board has not scheduled a public hearing on this proposed action. However, the Board will hold a hearing if it receives a written request for a public hearing from any interested person, or their autho - rized representative, no later than 15 days before the close of the written comment period.

WRITTEN COMMENT PERIOD Any person interested, or their authorized represen- tative, may submit written comments relevant to the proposed regulatory action to the Board by e–mail at danielle.phomsopha@nmvb.ca.gov or nmvb@nmvb. ca.gov. The written comment period closes at mid - night on May 2, 2023. The Board will only consider comments received at the Board’s offices by that time. Submit comments to: Danielle R.

Phomsopha, Senior Staff Counsel New Motor Vehicle Board 2415 1st Avenue, MS L242 Sacramento, CA 95818 (916) 244–6777 Teams/direct line (916) 445–1888 main line danielle.phomsopha@nmvb.ca.gov AUTHORITY AND REFERENCE Vehicle Code

section 3050, subdivision (a), autho - rizes the Board to amend the proposed regulation. The proposed regulation implements, interprets, and makes specific Vehicle Code

section 3050.

INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW The adopted mission of the Board is to “enhance relations between dealers and manufacturers through - out the State by resolving disputes in the new motor vehicle industry in an efficient, fair and cost–effective manner.” The adopted vision statement provides that the Board “demonstrate professionalism, integrity, and accountability in securing fair resolutions to mo - tor vehicle industry disputes.” While the Board’s current regulations include refer- ences to attorneys, agents, and representatives, which implicitly suggests that non–attorney representatives are allowed, the regulations lack a clear authorization for non–attorney representatives, such as other agen - cies have adopted by regulation or through statutory authority.

Consequently, promulgation of a new reg - ulation that makes this exercise of discretion explicit would be beneficial. Non–California–attorney representatives have ap - peared before the Board for decades. A revised prac - tice expressly allowing for non–attorney representa - tives, including out–of–state attorneys, would benefit parties, particularly those that often retain counsel who specialize in this practice area but are located outside of California and are not licensed by the Cali - fornia State Bar.

In the absence of a regulation, the Board has relied on the pro hac vice provisions in the California Rules of Court with out–of–state attorneys submitting an ap- plication to appear pro hac vice identifying associated California counsel. The Board is seeking to eliminate this process by proposing to add

Section 551.26 to Ti- tle 13 of the California Code of Regulations. OBJECTIVE AND ANTICIPATED BENEFITS OF THE PROPOSED REGULATION The broad objective of the regulation is to clarify for litigants that appear before the Board the information necessary to effectively represent themselves or their clients. The specific benefit anticipated from the regulation is promoting the expeditious and economical resolu - tion of statutorily enumerated disputes between new motor vehicle dealers (franchisees) and their manufac- turers or distributors (franchisors).

The Board keeps these types of cases from further clogging our already congested courts. It provides a uniformity of decisions across the state, allowing franchisors and their dealers to conduct their business in compliance with Califor - nia law.

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 271 EVALUATION OF INCONSISTENCY/ INCOMPATIBILITY WITH EXISTING STATE REGULATIONS The Board conducted an evaluation of the proposed regulation’s potential inconsistency or incompatibility with existing state regulations and has found that they are neither inconsistent nor incompatible with existing state regulations.

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

RESULTS OF THE ECONOMIC IMPACT ANALYSIS/ASSESSMENT The Board concludes that the proposed regulation will not (1) create any jobs within the State of Califor- nia, (2) eliminate any jobs within the State of Califor - nia, (3) create any new businesses within the State of California, (4) eliminate any existing businesses with- in the State of California, or (5) cause the expansion of businesses currently doing business within the State of California.

BENEFITS OF THE REGULATION The proposed regulation will promote the expedi - tious and economical resolution of disputes between new motor vehicle dealers and their manufacturers or distributors. The proposed regulation is not expected to affect worker safety or the state’s environment. SMALL BUSINESS DETERMINATION The Board has determined that the proposed reg - ulation will have no effect on small businesses.

This determination was made because no small business - es are legally required to comply with the regulation, are legally required to enforce the regulation, or de - rive a benefit from or incur an obligation from the en- forcement of the regulation. The proposed regulation merely clarifies case management for franchised new motor vehicle dealers and their franchisors (new vehi- cle manufacturers or distributors) who choose to file a protest or petition with the Board. CONSIDERATION OF ALTERNATIVES In accordance with Government Code

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

The Board invites interested persons to present comments, statements or arguments with respect to al- ternatives to the proposed regulation, during the writ - ten comment period or at the public hearing, if one is requested. CONTACT PERSONS Please direct requests for copies of the proposed text (the “express terms”) of the regulation, the initial state- ment of reasons, the modified text of the regulation, if any, or other information upon which the rulemaking is based to Ms. Phomsopha at the following address: Danielle R.

Phomsopha, Senior Staff Counsel New Motor Vehicle Board 2415 1st Avenue, MS L242 Sacramento, CA 95818 (916) 244–6777 Teams/direct line (916) 445–1888 main line danielle.phomsopha@nmvb.ca.gov The backup contact person for these inquiries is:

CALIFORNIA REGULATORY NOTICE REGISTER 2023, VOLUME NUMBER 11-Z 272 Robin P. Parker, Chief Counsel New Motor Vehicle Board 2415 1st Avenue, MS L242 Sacramento, CA 95818 (916) 244–6776 Teams/direct line (916) 445–1888 main line robin.parker@nmvb.ca.gov A VAILABILITY OF STATEMENT OF REASONS, TEXT OF PROPOSED REGULATION, AND RULEMAKING FILE The Board will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its offices by appointment. Please contact the contact persons listed above should you wish to make an appointment for in–office inspec- tion and copying.

As of the date this notice is pub - lished in the Notice Register, the rulemaking file con- sists of this notice, the proposed text of the regulation, the initial statement of reasons, the Economic and Fiscal Impact Statement, and all the information upon which the proposal is based. Copies may be obtained by contacting the contact persons identified above. A VAILABILITY OF CHANGED OR MODIFIED TEXT After considering all timely and relevant comments received, the Board may adopt the proposed regulation substantially as described in this notice.

If the Board makes modifications which are sufficiently related to the originally proposed text, it will make the modified text (with the changes clearly indicated) available to the public for at least 15 days before the Board adopts the regulation as revised. Requests for copies of any modified regulation should be addressed to the Board contact person or back–up contact person at the ad - dresses indicated above. The Board will accept writ - ten comments on the modified regulation for 15 days after the date on which they are made available to the public.

A VAILABILITY OF THE FINAL STATEMENT OF REASONS Upon completion of the Final Statement of Reasons, copies thereof may be obtained by contacting Ms. Phomsopha or Ms. Parker at the above address. A VAILABILITY OF DOCUMENTS ON THE INTERNET Copies of the Notice of Proposed Action, the Initial Statement of Reasons, and the text of the regulation in underline and strikeout font can be accessed through the Board’s website at www.nmvb.ca.gov. TITLE 14. FISH AND GAME COMMISSION NOTICE IS HEREBY GIVEN that the Fish and Game Commission (Commission), pursuant to the authority vested by

Section 200, 205, 265, 270, 315, 316.5, 399 and 2084 of the Fish and Game Code and to implement, interpret or make specific Sections 200, 205, 265, 270, 316.5 and 2084 of said Code, proposes to amend Sections 5.87 and 7.40, Title 14, California Code of Regulations, relating to Klamath River Basin Sport Fishing 2023. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Unless otherwise specified, all

section references in this document are to Title 14 of the California Code of Regulations. The Klamath River Basin, which consists of the Klamath River and Trinity River systems, is man - aged for fall–run Chinook Salmon (Oncorhynchus tshawytscha) through a cooperative system of state, federal, and tribal management agencies. Salmonid regulations are designed to meet natural and hatchery escapement needs for salmonid stocks, while provid - ing equitable harvest opportunities for ocean sport, ocean commercial, river sport, and tribal fisheries.

The Pacific Fishery Management Council (PFMC) is responsible for adopting recommendations for the management of sport and commercial ocean salmon fisheries in the Exclusive