Bus. & Prof. Code, § 26307

The Governor is exempt from the rulemaking procedures and requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) when entering into agreements or amendments to agreements, provided that prior to execution of an agreement or amendment to an agreement, the Governor shall do both of the following:

(a) Submit the proposed agreement or amendment to the Joint Legislative Budget Committee for review and comment. The committee shall have 60 days to review the proposed agreement or amendment and to submit written recommendations to the Governor. The committee shall only submit a recommendation to the Governor if a majority of the members agree to that recommendation. The Governor shall consider all recommendations submitted by the committee and may revise the proposed agreement or amendment to incorporate the recommendations. If the Governor does not incorporate any recommendation submitted by the committee, the Governor shall set forth, in writing, the reasons for not incorporating that recommendation.

(b) Post the proposed agreement or amendment on the department’s internet website for public comment for 30 days. The comments received shall be considered by the Governor.