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  • ARNOLD SCHWARZENEGGER, GOVERNOR OFFICE OF ADMINISTRATIVE LAW

    California Regulatory Notice RegisterREGISTER 2005, NO. 40-Z OCTOBER 7, 2005PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW

    PROPOSED ACTION ON REGULATIONSTITLE 2. STATE ALLOCATION BOARD PageLeroy F. Greene School Facilities Act of 1998Notice File No. Z05-0927-06................................................... 1435

    TITLE 8. DEPARTMENT OF INDUSTRIAL RELATIONSClaims Handling and TPA Licensing and Exam FeesNotice File No. Z05-0923-03 ........................................ 1438

    TITLE 8. DEPARTMENT OF INDUSTRIAL RELATIONSWorkers Compensation Information SystemNotice File No. Z05-0926-01 ...................................................... 1441

    TITLE 13. DEPARTMENT OF MOTOR VEHICLESTraffic Violator SchoolsNotice File No. Z05-0927-01 .................................................................................... 1446

    TITLE 14. DEPARTMENT OF BOATING AND WATERWAYSPublic Small Craft Harbor Loan RegulationsNotice File No. Z05-0921-01 ................................................... 1448

    TITLE 15. DEPARTMENT OF CORRECTIONS AND REHABILITATIONFood ServiceNotice File No. Z05-0927-03 .................................................................................................... 1450

    TITLE 15. DEPARTMENT OF CORRECTIONS AND REHABILITATIONGang Management ValidationNotice File No. Z05-0923-02 ........................................................................... 1452

    GENERAL PUBLIC INTERESTAIR RESOURCES BOARDNotice of PostponementLSI Engines ............................................................................................................ 1454

    DEPARTMENT OF FAIR EMPLOYMENT AND HOUSINGProspective Contractors are Ineligible to Enter into State Contracts ................................................................ 1455

    DEPARTMENT OF TOXIC SUBSTANCES CONTROLFinancial Assurance and Postclosure Care ...................................................................................................... 1455

    (Continued on next page)

    Time-Dated

    Material

  • DECISION NOT TO PROCEEDDEPARTMENT OF CONSERVATION(Published July 1, 2005, in the California Regulatory Notice Register, Notice File No. Z05-0614-13) ............... 1457

    SUMMARY OF REGULATORY ACTIONSRegulations filed with the Secretary of State.................................................................................................... 1457Sections Filed, May 4, 2005 to September 28, 2005......................................................................................... 1459

    The California Regulatory Notice Register is an official state publication of the Office of Administrative Law containingnotices of proposed regulatory actions by state regulatory agencies to adopt, amend or repeal regulations contained in theCalifornia Code of Regulations. The effective period of a notice of proposed regulatory action by a state agency in theCalifornia 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 (ISSN 1041-2654) is published weekly by the Office ofAdministrative Law, 300 Capitol Mall, Suite 1250, Sacramento, CA 95814-4339. The Register is printed by the Office of StatePublishing and is offered by subscription for $302.00 (annual price). To order or make changes to current subscriptions, pleasecall (916) 445-5353 or (916) 445-5386. For outside of the Sacramento area, call (800) 963-7860. Periodicals postage paid atSacramento, CA and additional mailing offices. POSTMASTER: Send address changes to the: CALIFORNIAREGULATORY NOTICE REGISTER, Customer Coordinator, Office of State Publishing, 344 N. 7th Street, MassMail/Addressing Services, Sacramento, CA 95814-0212. The Register can also be accessed at http://www.oal.ca.gov.

  • PROPOSED ACTION ONREGULATIONS

    Information contained in this document ispublished as received from agencies and isnot edited by the Office of State Publishing.

    TITLE 2. STATEALLOCATION BOARD

    NOTICE OF PROPOSED REGULATORY ACTION

    THE STATE ALLOCATION BOARD PROPOSESTO ADOPT AND AMEND THE FOLLOWINGREGULATION SECTIONS, ALONG WITH ANASSOCIATED FORM, TITLE 2, CALIFORNIA

    CODE OF REGULATIONS, RELATING TOLEROY F. GREENE SCHOOL

    FACILITIES ACT OF 1998

    PROPOSED AMENDMENTS TO REGULATIONSECTIONS: 1859.2, 1859.61, 1859.74, 1859.77.1,

    1859.79, 1859.79.2, 1859.83 AND 1859.104

    REGULATION SECTIONS PROPOSED FORADOPTION: 1859.70.3, 1859.71.5, 1859.78.9,

    1859.93.2 AND 1859.93.3NOTICE IS HEREBY GIVEN that the State

    Allocation Board (SAB) proposes to adopt and amendthe above-referenced regulation sections, along withan associated form, contained in Title 2, CaliforniaCode of Regulations (CCR). A public hearing is notscheduled. A public hearing will be held if anyinterested person, or his or her duly authorizedrepresentative, submits a written request for a publichearing to the Office of Public School Construction(OPSC) no later than 15 days prior to the close of thewritten comment period. Following the public hearingif one is requested, or following the written commentperiod if no public hearing is requested, the OPSC, atits own motion or at the instance of any interestedperson, may adopt the proposals substantially as setforth above without further notice.

    AUTHORITY AND REFERENCE CITATIONSThe SAB is proposing to adopt and amend these

    regulations under the authority provided by Sections17070.35, 17072.13, 17075.15 and 17078.64 of theEducation Code. The proposals interpret and makespecific Sections 17070.15, 17070.35, 17070.51,17070.99, 17071.25, 17072.10, 17072.12, 17072.13,17072.15, 17072.20, 17072.30, 17072.32, 17073.15,

    17074.10, 17074.15, 17074.16, 17074.25, 17074.32,17075.10, 17075.15, 17076.10, 17077.10, 17077.40,17077.42, 17077.45, 17251 and 100420(c) of theEducation Code.

    INFORMATIVE DIGEST/POLICYOVERVIEW STATEMENT

    The Leroy F. Greene School Facilities Act of 1998established, through Senate Bill 50, Chapter 407,Statutes of 1998, the School Facility Program (SFP).The SFP provides a per-pupil grant amount toqualifying school districts for purposes of constructingschool facilities and modernizing existing schoolfacilities. The SAB adopted regulations to implementthe Leroy F. Greene School Facilities Act of 1998,which were approved by the Office of AdministrativeLaw and filed with the Secretary of State onOctober 8, 1999.

    Assembly Bill (AB) 1465, Chapter 894, Statutes of2004, created a pilot program known as the SmallHigh School Program and required that it beimplemented into the SFP Regulations. A small highschool is defined as having an enrollment of 500pupils or less. The program provides school districtsaccess to $20 million of new construction funding tobuild small high schools, and $5 million of modern-ization funding to reconfigure existing high schoolsinto two or more small high schools, upon CaliforniaDepartment of Education (CDE) approval.

    For purposes of new construction funding, thisprogram provides a 20 percent increase to the SFP newconstruction per-pupil grant. The State/local matchingshare percentage of the total project cost is changedfrom 50/50 to 60/40, respectively. The program will bein effect from January 1, 2006 until January 1, 2008,unless extended by statute.

    Statute requires the Board to conduct an evaluationon the cost of new construction and modernization ofsmall high schools funded under this program. Theinformation gained from these evaluations will be usedin structuring future school facilities construction andrelated bond measures.

    The SAB on July 27, 2005 approved amendmentsand adopted new sections to the SFP regulations forthese purposes, and they are as follows:

    Existing Regulation Section 1859.2 represents a setof defined words and terms used exclusively for theseregulations. The proposed amendments add definitionsof Reconfiguration, Small High School, andSmall High School Program. References to FormSAB 50-04 are amended to reflect the new reviseddate of the form.

    Existing Regulation Section 1859.61 sets forthcriteria that allow for making adjustments to a schooldistricts modernization baseline eligibility. The pro-posed amendment adds an additional criterion that

    CALIFORNIA REGULATORY NOTICE REGISTER 2005, VOLUME NO. 40-Z

    1435

  • adjusts a districts modernization baseline eligibility asa result of the reconfiguration of an existing highschool under the Small High School Program.

    Proposed adoption of Regulation Section 1859.70.3sets aside $20 million of new construction funding toconstruct small high schools pursuant to EducationCode Section 17072.10(c), and makes $5 million ofmodernization funding available to assist in reconfig-uring large high schools pursuant to Education CodeSection 17074.32.

    Proposed adoption of Regulation Section 1859.71.5provides a 20 percent increase to the per-pupil grantfor Small High School Program projects fundedpursuant to Regulation Sections 1859.93.2 and1859.93.3, and other funding increases authorized bythese Regulations to ensure that Apportionmentsrepresent 60 percent of the total project cost.

    Existing Regulation Section 1859.74 authorizes anadditional grant to school districts for site acquisitioncosts for approved SFP new construction projects,according to specific criteria. The proposed amend-ment limits the amount of funds for a site on a proratedbasis for sites that exceed the recommended site sizefor a small high school (500 pupils or less).

    Existing Regulation Section 1859.77.1 requires thatfor SFP new construction projects, school districtsmust make a matching share contribution on adollar-for-dollar basis for any State funding providedunder these Regulations, with certain specified excep-tions. The proposed amendments add another excep-tion, that the required district matching share must beequal to at least 40 percent of the total project cost forapproved Small High School Program new construc-tion project funding.

    Proposed adoption of Regulation Section 1859.78.9authorizes an additional modernization grantapportionment, not to exceed an aggregateof $500,000, for each approved Small High SchoolProgram Reconfiguration project submitted by Sep-tember 30, 2007 and meeting other listed requirementsfor enrollment, CDE approval, use of funding, andeligibility adjustment.

    Existing Regulation Section 1859.79 requires thatfor SFP modernization projects, school districts mustmake a matching share contribution equal to at least20 percent (for applications on or before April 29,2002) or 40 percent (for applications after April 29,2002) of the total project cost. The proposedamendments provide that the modernization grant forReconfiguration is not subject to the modernizationmatching share requirement. In addition, a sentence isadded that distinguishes the matching share and theReconfiguration costs as separate to avoid duplicatefunding.

    Existing Regulation Section 1859.79.2 specifies thepermissible and impermissible uses of ModernizationGrant Funds. The proposed amendment adds anadditional impermissible use of modernization fundsfor costs associated with Reconfiguration pursuant toSection 1859.78.9.

    Existing Regulation Section 1859.83 sets forthdistrict eligibility criteria for excessive cost hardshipgrant funding as a result of specified unusualcircumstances, in four categories of excessive costs:geographic location, small size projects, new schoolprojects, and projects meeting criteria of urbanlocation, security requirements, or impacted site. Theproposed amendments establish a table authorizingNew Construction Excessive Cost Hardship Grantsexclusively for Small High School projects to be builton a site with no existing facilities, based on thenumber of classrooms in the project, not to exceedhousing 500 pupils.

    Proposed adoption of Regulation Section 1859.93.2establishes the application criteria school districtsmust meet in order to participate in the Small HighSchool Program.

    Proposed adoption of Regulation Section 1859.93.3sets forth the criteria by which projects will beprioritized and funded.

    Existing Regulation Section 1859.104 sets forthdocument submittal requirements for school districtsreceiving funds under the Leroy F. Greene SchoolFacilities Act of 1998 (School Facility Program). Theproposed amendments set forth document submittalrequirements to districts receiving Small High SchoolProgram funding.

    Existing SAB Form 50-04, Application for Funding,is used when a school district applies for SFP fundingfor a new construction or modernization project. Theproposed amendments incorporate into the applicationform the necessary data fields, submittal instructions,and certifications of program compliance that arereflected in the regulatory text.

    IMPACT ON LOCAL AGENCIESOR SCHOOL DISTRICTS

    The Executive Officer of the SAB has determinedthat the proposed regulations do not impose a mandateor a mandate requiring reimbursement by the Statepursuant to Part 7 (commencing with Section 17500)of Division 4 of the Government Code. It will notrequire local agencies or school districts to incuradditional costs in order to comply with the proposedregulations.

    ECONOMIC IMPACTThe Executive Officer of the SAB has assessed the

    potential for significant statewide adverse economicimpact on businesses or private persons that mightresult from the proposed regulatory action and the

    CALIFORNIA REGULATORY NOTICE REGISTER 2005, VOLUME NO. 40-Z

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  • following determinations have been made relative tothe required statutory categories:

    The SAB has made an initial determination thatthere will be no significant, statewide adverseeconomic impact directly affecting business, includ-ing the ability of California businesses to competewith businesses in other states.

    There will be no impact in the creation orelimination of jobs within the State, the creation ofnew businesses or the elimination of existingbusinesses or the expansion of businesses inCalifornia.

    The SAB is not aware of any cost impacts that arepresentative private person or business wouldnecessarily incur in reasonable compliance with theproposed action.

    There will be no non-discretionary costs or savingsto local agencies.

    There will be no costs to school districts except forthe required district contribution toward eachproject as stipulated in statute.

    There will be no costs or savings in federal fundingto the State.

    There are no costs or savings to any State agency. The SAB has made an initial determination that

    there will be no impact on housing costs.

    EFFECT ON SMALL BUSINESSESIt has been determined that the adoption of the

    regulation sections will not affect small businesses inthe ways identified in subsections (a)(1)(4) of Section4, Title 1, CCR. These regulations only apply to schooldistricts for purposes of funding school facilityprojects.

    SUBMISSION OF COMMENTS, DOCUMENTSAND ADDITIONAL INFORMATION

    Any interested person may present statements,arguments or contentions, in writing, sub...

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