BILL NUMBER: SB 856 CHAPTERED
BILL TEXT
CHAPTER 719
FILED WITH SECRETARY OF STATE OCTOBER 19, 2010
APPROVED BY GOVERNOR OCTOBER 19, 2010
PASSED THE SENATE OCTOBER 7, 2010
PASSED THE ASSEMBLY OCTOBER 7, 2010
AMENDED IN ASSEMBLY OCTOBER 7, 2010
AMENDED IN ASSEMBLY OCTOBER 7, 2010
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 11, 2010
An act to amend Sections 159.5, 160, 23399, and 23954.5 of, and to
add Sections 154.2 and 210 to, the Business and Professions Code, to
amend Section 337.5 of, and to add Section 348.5 to, the Code of
Civil Procedure, to amend Section 94949 of, and to add and repeal
Section 94874.3 of, the Education Code, to amend Sections 927, 927.2,
927.3, 927.5, 927.6, 927.7, 927.9, 7076, 7097.1, 7114.2, 7591, 7592,
11544, 16429.1, 17556, and 17557 of, to add Sections 927.13, 7072.3,
11546.4, 17570, and 17570.1 to, to repeal Sections 926.16 and 926.19
of, and to repeal Chapter 2 (commencing with Section 13996) of Part
4.7 of Division 3 of Title 2 of, the Government Code, to amend
Section 50199.9 of the Health and Safety Code, to amend Sections
62.9, 1771.3, 1771.5, 1771.7, 1771.75, 1771.8, and 1777.5 of the
Labor Code, to add Section 11105.8 to the Penal Code, to amend
Section 5164 of the Public Resources Code, to amend Sections 11006
and 19558 of the Revenue and Taxation Code, to amend Sections 1088,
1112.5, 1113.1, 1275, 13021, and 13050 of, and to add Article 9
(commencing with Section 1900) to Chapter 7 of Part 1 of Division 1
of, the Unemployment Insurance Code, to amend Section 1673.2 of the
Vehicle Code, and to amend and supplement the Budget Act of 2009
(Chapter 1 of the 2009-10 Third Extraordinary Session) by amending
Item 0820-001-3086 of Section 2.00 of that act, relating to state
government, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 856, Committee on Budget and Fiscal Review. State government.
(1) Existing law provides for the regulation of various
professions and vocations by regulatory boards within the Department
of Consumer Affairs. Existing law creates in the department a
Division of Investigation and authorizes the Director of Consumer
Affairs to employ investigators, inspectors, and deputies as are
necessary to investigate and prosecute all violations of any law, the
enforcement of which is charged to the department or to any board in
the department. Inspectors used by the boards are not required to be
employees of the Division of Investigation, but may be employees of,
or under contract to, the boards. Investigators of the Division of
Investigation and of the Medical Board of California and the Dental
Board of California have the authority of peace officers and are in
the division and appointed by the director.
This bill would authorize specified healing arts boards to employ
individuals to serve as experts and would authorize those boards and
the Division of Investigation to employ individuals who are not peace
officers to provide investigative services. The bill would also
provide that investigators of the Medical Board of California and the
Dental Board of California who have the authority of peace officers
are not required to be in the division.
(2) According to the strategic plan of the Department of Consumer
Affairs, the BreEZe system is an integrated, enterprisewide
enforcement and licensing system. Under existing law, the office of
the State Chief Information Officer is responsible for, among other
things, the approval and oversight of specified information
technology projects.
This bill would authorize the department to enter into a contract
with a vendor for the BreEZe system no sooner than 30 days after
written notification to certain committees of the Legislature. The
bill would require the amount of contract funds for the system to be
consistent with costs approved by the office of the State Chief
Information Officer, based on information provided by the department
in a specified manner. The bill would provide that this cost
provision is applicable to all Budget Act items for the department
with an appropriation for the BreEZe system. If the department enters
into a contract for the system, the bill would also require the
department, by December 1, 2014, to submit to the Legislature and
specified committees a report analyzing the workload of certain
licensing personnel employed by boards participating in the BreEZe
system.
(3) The Alcoholic Beverage Control Act authorizes the issuance of
an event permit that allows specified licenses to sell beer, wine,
and distilled spirits and requires an annual fee of $100 for an event
permit and a fee of not more than $10 for each event authorization.
This bill would increase the fee for each event authorization to
not more than $25.
(4) Under existing law, the Alcoholic Beverage Control Act
establishes various types of licenses and various annual fees for
different categories of licensees. Existing law establishing a fee
for an original on-sale general license or an original off-sale
general license as $12,000.
This bill would increase that fee to $13,800 and would permit
adjustment of the fee, as specified.
(5) Existing law provides that the period for commencement of
action upon any bonds or coupons issued by the State of California is
10 years.
This bill would delete that provision and instead provide that the
period for commencement of an action upon any bonds or coupons
issued by the State of California shall have no limitation.
(6) Existing law establishes the California Private Postsecondary
Education Act of 2009, which, among other things, provides for
student protections and regulatory oversight of private postsecondary
schools in the state. Existing law establishes the Bureau for
Private Postsecondary Education to regulate private postsecondary
institutions through the powers granted, and the duties imposed, by
the act.
This bill would prohibit the bureau, for the period July 1, 2010,
to July 1, 2011, inclusive, from enforcing the act against
institutions that offer flight instruction or institutions that offer
Federal Aviation Administration certified educational programs in
aircraft maintenance. The bill would also require those institutions
to notify the bureau if they operate during that period.
(7) Existing law also requires the Bureau for Private
Postsecondary Education (bureau) to contract with the Bureau of State
Audits to conduct a performance audit to evaluate the effectiveness
and efficiency of the bureau's operation, on or before August 1,
2013, consistent with the requirements of the act. The act requires
the Bureau of State Audits to report the results of the performance
audit to the Legislature and the Governor.
This bill would additionally require the performance audit to
include an evaluation of whether the bureau's staffing level and
expertise are sufficient to fulfill their statutory responsibilities.
(8) The California Prompt Payment Act provides that a state agency
that fails to make a payment for goods and services to certain
entities pursuant to a contract is subject to an interest penalty
fee, according to specified criteria. Existing law provides that in
order to avoid late payment penalties, state agencies shall pay
promptly submitted, undisputed invoices within 45 days, and specifies
procedures and exclusions relating to that requirement. Existing law
provides that penalties for late payments to certain small and
nonprofit businesses accrue at 0.25% of the amount due, per calendar
day.
Existing law provides that, subject to specified exceptions, a
state agency that fails to pay a person an undisputed payment or
refund due to that person within 31 days after the agency provides
notice to that person that the payment is due is liable for interest
on the undisputed amount.
This bill would revise and recast these provisions by requiring
state agencies to pay refunds or other undisputed payments due to
individuals within 45 days after receipt of a notice of refund or
undisputed payment due, and would specify procedures and exclusions
related to that requirement. The bill would also provide that
penalties for late payments to certain small and nonprofit businesses
accrue at a rate of 10% above the United States Prime Rate on June
30 of the prior fiscal year.
This bill would also delete obsolete provisions, cross-references,
and references to the Year 2000 Problem.
(9) Existing law prescribes the duties and responsibilities of the
Department of Housing and Community Development in connection with
the establishment of various economic development areas, including
enterprise zones, manufacturing enhancement areas, targeted tax
areas, and local agency military base recovery areas. Existing law
authorizes the department to assess each of these economic
development areas a fee of not more than $10 for each application it
accepts for the issuance of a specified tax certificate issued by a
local government.
This bill would revise these provisions to require the department
to collect a fee of $15 for each application it accepts for the
issuance of the specified tax certificate. The bill would require the
fees to be deposited in the Enterprise Zone Fund, which the bill
would create. These funds would be available to the department, upon
appropriation by the Legislature, for the costs of administering the
programs relating to each economic development area.
(10) Existing law appropriated $15,000,000 to the Trade and
Commerce Agency for a loan for allocation over 3 years in 3 equal
amounts to that nonprofit organization currently named the San Diego
National Sports Training Foundation for purposes of developing and
constructing a California Olympic Training Center. Existing law
provides that these loan allocations be repaid in full no later than
20 years from the date of receipt, as specified. Existing law creates
the California Olympic Training Account in the General Fund for the
receipt of moneys from fees paid for commemorative olympic license
plates, which are to be used for repayment of the loan described
above.
This bill would cancel any of the outstanding balance and any
accrued interest on the loan for the California Olympic Training
Center described above. The bill would require the Controller to
annually transfer the moneys from fees paid for commemorative olympic
license plates to the General Fund.
(11) Existing law creates the Technology Services Revolving Fund,
administered by the State Chief Information Officer, for the purpose
of receiving revenue from the sale of technology or technology
services, and for payment, upon appropriation by the Legislature, of
specified costs. The Governor's Reorganization Plan No. 1 of 2009
renamed and transferred the Department of Technology Services in the
State and Consumer Services Agency to the Office of the Department of
Technology Services within the office of the State Chief Information
Officer, and renamed the Department of Technology Services Revolving
Fund the Technology Services Revolving Fund, and made conforming
changes. The plan also transferred duties relating to the state's
procurement of information technology from the Department of Finance,
the Department of General Services, and the Department of
Information Technology to the office of the State Chief Information
Officer.
This bill would make certain statutory codification changes made
necessary by the Governor's Reorganization Plan No. 1 of 2009 in
connection with the Technology Services Revolving Fund. This bill
would also authorize the fund to receive revenues for other services
rendered by the office of the State Chief Information Officer and to
pay for other specified costs. The bill would authorize the office of
the State Chief Information Officer to collect payments from public
agencies for services requested from, rather than contracted for, the
office of the State Chief Information Officer, as specified. The
bill would also revise the conditions used to determine whether a
balance remains in the Technology Services Revolving Fund at the end
of a fiscal year to limit the amount that is used to determine a
reduction in billing rates. The bill would provide that these
provisions apply to all revenue earned on or after July 1, 2010.
(12) Existing law imposes a duty on the office of the State Chief
Information Officer to be responsible for the approval and oversight
of information technology projects, including, but not limited to,
consulting with agencies during initial project planning to ensure
that identified needs and benefits are consistent with statewide
strategies, policies, and procedures.
This bill would, notwithstanding any other law, require the office
to review, approve, and oversee any service contract proposed to be
entered into by an agency that contains an information technology
component, as specified.
(13) Existing law establishes the Manufacturing Technology Program
within the Business, Transportation and Housing Agency, requires the
agency to adopt regulations to implement the program, and requires
the program to award grants, as specified, and to provide technical
assistance to California nonprofit organizations and public agencies
for the performance of specified functions relating to the
improvement of the competitiveness and viability of specified
manufacturing industries.
This bill would repeal these laws thereby eliminating the
Manufacturing Technology Program.
(14) Existing law establishes the Local Agency Investment Fund, in
trust in the custody of the Treasurer, to which specified local
governmental individuals and entities, with the required consent, may
remit money in its treasury that is not required for immediate needs
for the purpose of investment. Existing law requires, immediately at
the conclusion of each calendar quarter, that all interest earned
and other increment derived from investments be distributed by the
Controller to the contributing governmental units or trustees or
fiscal agents, nonprofit corporations, and quasi-governmental
agencies in amounts directly proportionate to the respective amounts
deposited in the fund and the length of time the amounts remained
therein. Existing law requires, however, that an amount equal to the
reasonable costs incurred in carrying out duties related to the
administration of the fund, not to exceed 1/2 of 1% of the earnings
of the fund, be deducted from the earnings prior to distribution, and
that this amount be credited as reimbursements to the state agencies
having incurred costs in carrying out duties related to the
administration of the fund.
This bill would increase the amount authorized to be deducted from
earnings prior to distribution to be an amount equal to the
reasonable costs incurred in carrying out these provisions, not to
exceed a maximum of 5% of the earnings of the fund and not to exceed
the amount appropriated in the annual Budget Act for this function.
(15) Under the California Constitution, whenever the Legislature
or a state agency mandates a new program or higher level of service
on any local government, including school districts, the state is
required to provide a subvention of funds to reimburse the local
government, with specified exceptions. Existing law establishes a
test claim procedure for local governmental agencies to file claims
for reimbursement of these costs with the Commission on State
Mandates.
This bill would authorize specified entities to request that the
commission adopt a new test claim decision to supersede a previously
adopted test claim. This bill would authorize the commission to adopt
a new test claim decision only upon a showing that the state's
liability for the previously adopted test claim decision has been
modified based upon a subsequent change in law, as defined.
This bill would require that the commission adopt procedures for
receiving these requests and for providing notice and a hearing on
those requests, as prescribed, including a requirement that the
submitted request be signed under penalty of perjury. Because this
bill would expand the scope of an existing crime, this bill would
impose a state-mandated local program.
(16) Existing law prohibits the commission from determining that
certain costs in a test claim are mandated by the state if the costs
meet specified conditions, including, among others, where the
challenged costs result from a statute or executive order that
imposes requirements mandated by federal law or regulation. Existing
law provides that this prohibition applies regardless of whether the
federal mandate was enacted before or after the statute or executive
order.
This bill would provide that the exceptions for the other
specified conditions likewise remain applicable regardless of whether
the conditions occurred before or after the enactment of the statute
or the adoption of the executive order that is the subject of the
test claim.
(17) Existing law requires that the commission adopt parameters
and guidelines for the reimbursement of approved test claims.
Existing law authorizes a local agency, school district, or the state
to file a written request with the commission to amend, modify, or
supplement the parameters and guidelines, as specified.
This bill would authorize these entities to file a written request
with the commission to amend the parameters and guidelines, and
prescribe the types of changes for which the request may be filed,
including, among others, deleting a reimbursable activity that has
been repealed by statute or executive order.
(18) Existing law requires the California Tax Credit Allocation
Committee to allocate specified tax credits for purposes of
low-income housing projects. Existing law requires the committee to
establish and charge fees it determines are reasonably sufficient to
cover the costs in carrying out the responsibilities related to the
low-income housing credit program and to deposit these fees in the
Tax Credit Allocation Fee Account and the Occupancy Compliance
Monitoring Account for specified purposes.
Existing law also authorizes the Governor, in certain
circumstances, to direct the Controller to make transfers of money
from any special funds and other accounts to the General Cash
Revolving Fund.
This bill would authorize the Controller to use the fees deposited
in the Tax Credit Allocation Fee Account and the Occupancy
Compliance Monitoring Account for daily cash flow loans to the
General Fund or the General Cash Revolving Fund in accordance with
specified provisions of existing law.
(19) Existing law establishes a workers' compensation system,
administered by the Administrative Director of the Division of
Workers' Compensation, to compensate an injured employee for injuries
sustained in the course of his or her employment. Existing law
requires that the Director of Industrial Relations levy and collect
assessments from employers in an amount determined by the director to
be sufficient to fund specified workers' compensation programs
implemented in the state. In that connection, existing law requires
the director to include in the total assessment amount the Department
of Industrial Relations' costs for administering the assessment,
including the collections process and the cost of reimbursing the
Franchise Tax Board for its cost of collection activities.
This bill would also require the director to include in the total
assessment amount the department's costs for administering the
assessment, including the collections process and the cost of
reimbursing another agency or department other than the Franchise Tax
Board.
(20) Existing law authorizes the Director of Industrial Relations,
with the approval of the Director of Finance, to determine and
assess a fee on any awarding body using funds derived from any bond
issued by the state to fund public works projects, and requires the
fees collected to be deposited in the State Public Works Enforcement
Fund, a continuously appropriated fund.
This bill would require the fee to be payable by the board,
commission, department, agency, or official responsible for the
allocation of bond proceeds from the bond funds awarded to each
project, at the time the funds are released to the project or any
other time agreed upon by the department and the allocating entity.
(21) Existing law requires an awarding body that chooses to use
funds from the Kindergarten-University Public Education Facilities
Bond Act of 2002 or the Kindergarten-University Public Education
Facilities Bond Act of 2004 for a public works project to pay a fee
to the Department of Industrial Relations sufficient to support the
department's costs in ensuring compliance with and enforcing
prevailing wage requirements on the project and labor compliance, and
requires the fees collected to be deposited in the State Public
Works Enforcement Fund. Existing law requires the department to
notify the State Allocation Board of awarding bodies that have paid
the fee.
This bill would instead require the State Allocation Board to
notify the department of awarding bodies that are awarded funds
subject to the fee. This bill would also require the State Allocation
Board to pay the fee to the department at the time bond funds are
released to the awarding body.
(22) Existing law authorizes the awarding body for a public works
project to not require the payment of the general prevailing rate of
per diem wages on public works projects of specified sizes and types
of work if the awarding body elects to meet certain requirements with
regard to any public works project under its authority, including
payment of a fee to the Department of Industrial Relations for the
enforcement of prevailing wage obligations, in lieu of authorizing
the awarding body to initiate and enforce a labor compliance program,
for contracts awarded after the effective date of regulations and
fees adopted by the department, as specified.
This bill would make technical, conforming changes to those
provisions.
(23) Existing law requires that every apprentice employed upon
public works, as defined, be paid the prevailing rate of per diem
wages for apprentices in the trade to which he or she is registered,
and requires that the apprentice be employed only at the work of the
craft or trade to which he or she is registered. Existing law
requires a contractor to whom a contract is awarded, who, in
performing any of the work under the contract, employs journeymen or
apprentices in any apprenticeable craft or trade, to contribute to
the California Apprenticeship Council the same amount that the
Director of Industrial Relations determines is the prevailing amount
of apprenticeship training contributions in the area of the public
works site. Existing law requires that all training contributions
received pursuant to those provisions be deposited in the
Apprenticeship Training Contribution Fund, and continuously
appropriates that fund for purposes related to apprenticeship
training and to pay the expenses of the Division of Apprenticeship
Standards.
This bill would eliminate this continuous appropriation and
instead specify that, upon appropriation by the Legislature, all
moneys in the fund be used for apprenticeship training and to pay the
expenses of the Division of Apprenticeship Standards.
(24) Existing law requires the Department of Justice to maintain a
master record of information pertaining to the identification and
criminal history of persons, as specified. Existing law authorizes
the department to provide that information to various entities for
law enforcement and other purposes, as specified, including providing
that information through the California Law Enforcement
Telecommunications System.
This bill would authorize nonprofit organizations that are funded
by certain federal grants or contracts for identifying, targeting, or
removing criminal and terrorist conspiracies and activities to
access local, state, or federal criminal justice system information
that is available to law enforcement agencies, including access to
the California Law Enforcement Telecommunications System, provided
that the nonprofit organization meet state and federal requirements
for access to that information or system.
(25) Existing law prohibits a county, city, city and county, or
special district from hiring a person for employment or a volunteer
to perform services, at a county, city, city and county, or special
district operated park, playground, recreational center, or beach
used for recreational purposes, in a position having supervisory or
disciplinary authority over a minor, if that person has been
convicted of specified offenses. Existing law requires a county,
city, city and county, or special district to require each of those
prospective employees and volunteers to complete an application that
inquires as to whether that person has been convicted of one of those
offenses, and imposes a screening requirement on the county, city,
city and county, or special district with respect to those
prospective employees and volunteers.
This bill would authorize a county, city, city and county, or
special district to charge those prospective employees and volunteers
a fee to cover all of the county, city, city and county, or special
district's costs attributable to those requirements.
(26) The Vehicle License Fee (VLF) Law establishes, in lieu of any
ad valorem property tax upon vehicles, an annual license fee for any
vehicle subject to registration in this state in the amount of 2% of
the market value of that vehicle, as specified. Existing law
requires the Controller, in consultation with the Department of Motor
Vehicles and the Department of Finance, to calculate certain
allocation amounts with respect to the vehicle license fees paid by
commercial vehicle operators, and to transfer moneys in those amounts
from the General Fund.
This bill would eliminate the requirement that the Controller
transfer one of the allocation amounts from the General Fund, as
provided.
(27) Existing law prohibits the Franchise Tax Board and specified
individuals who have access to certain documents filed with the board
from disclosing information set forth in the documents, except as
provided. Existing law authorizes the board to provide the Public
Employees' Retirement System with identification and location
information from income tax returns or other records solely for the
purposes of disbursing unclaimed benefits and distributing member
statements on an annual basis. Under existing law, unauthorized
disclosure is a misdemeanor. Existing federal law establishes the
Early Retiree Reinsurance Program, which provides federal
reimbursement to participating employment-based group health benefits
plans, as provided.
This bill would, until June 30, 2016, authorize the board to
provide the Public Employees' Retirement System with identification
and location information from income tax returns or other records for
the purpose of filing required data pursuant to the federal Early
Retiree Reinsurance Program and related regulations and departmental
directives. By expanding the definition of a crime, the bill would
impose a state-mandated local program.
(28) Existing law requires each employer to file with the Director
of the Employment Development Department, within a specified time
period for the payment of employer contributions, a report of
contributions and a report of wages paid to his or her workers in the
form and containing any information as the director prescribes.
Existing law also requires every employer who pays wages to an
employee for services performed in this state to withhold from those
wages, except as provided, specified income taxes, to file specified
reports with the director, and to pay the withheld taxes.
This bill would, instead, require each employer, beginning with
the first calendar quarter of 2011, to file with the director a
quarterly return, including certain information regarding the total
amount of wages, employer contributions, worker contributions
required to be withheld by the employer, taxes withheld, and any
other information prescribed by the director, as specified.
Existing law also requires each employer, in addition to the
aforementioned reports, to file with the director an annual
reconciliation return showing specified information pertaining to
amounts required to be withheld for employer contributions, as
determined by wages and other specified criteria, and taxes withheld
as prescribed.
This bill also would eliminate the requirement that an employer
file an annual reconciliation form with the director beginning in the
2012 calendar year, and
would make related changes.
(29) Existing law provides for unemployment compensation benefits
for eligible individuals in the state who are unemployed through no
fault of their own. Existing law, for new claims filed on or after a
specified date, but no later than April 3, 2011, for which a valid
claim or benefit year cannot be established under the currently
defined base periods, establish alternative base periods, as
provided. Existing law also requires a claimant to submit specified
information regarding wages to the Employment Development Department
via an affidavit, under specified conditions, and requires the
department to implement the technical changes necessary to establish
claims under the alternative base period, as specified, as soon as
possible, but no later than April 3, 2011.
This bill would extend to September 3, 2011, the time period
within which the department is required to implement those changes
related to the establishment of unemployment compensation benefit
claims under the alternative base period program.
Existing law requires the department, until April 3, 2013, to
report to the Joint Legislative Budget Committee, no less than
quarterly, on the progress and effectiveness of implementation of the
alternative base period program, as specified.
This bill would extend to September 3, 2013, the period during
which those reports are required to be provided to the Joint
Legislative Budget Committee.
This bill would authorize the Department of Industrial Relations
to enter into an agreement that transfers all or part of the
responsibility from the Department of Industrial Relations, or any
office or division within the department, to the Employment
Development Department for the collection of items including, but not
limited to, delinquent fees, wages, penalties, judgments,
assessments, costs, citations, debts, and any interest thereon,
arising out of the enforcement of any law within the jurisdiction of
the department, in accordance with specified requirements.
(30) Existing law creates in the State Treasury the Indian Gaming
Special Distribution Fund for the receipt and deposit of moneys
received by the state from certain Indian tribes pursuant to the
terms of gaming compacts entered into with the state. Existing law
authorizes moneys in that fund to be used for specified purposes,
including for grants for the support of state and local government
agencies impacted by tribal government gaming.
Existing law, until January 1, 2021, creates a County Tribal
Casino Account in the treasury of each county that contains a tribal
casino. Existing law requires the Controller to divide the County
Tribal Casino Account for each county that has gaming devices that
are subject to an obligation to make contributions to the Indian
Gaming Special Distribution Fund into a separate account, known as an
Individual Tribal Casino Account, for each tribe that operates a
casino within the county. Each Individual Tribal Casino Account is
required to be funded in proportion to the amount that each
individual tribe paid in the prior fiscal year to the Indian Gaming
Special Distribution Fund, and used for grants to local agencies
impacted by tribal casinos, as specified.
This bill would appropriate $30,000,000 from the Indian Gaming
Special Distribution Fund to restore funding deleted from the Budget
Act of 2007 for the purpose of providing grants to local government
agencies impacted by tribal government gaming under the provisions
described above.
(31) The Budget Act of 2009 (Chapter 1 of the 2009-10 3rd
Extraordinary Session) and revisions to the Budget Act of 2009
(Chapter 1 of the 2009-10 4th Extraordinary Session) made
appropriations for the support of state government during the 2009-10
fiscal year.
This bill would make an additional appropriation of moneys from
the DNA Identification Fund to the Department of Justice for its
support.
(32) Existing law gives the Citizens Redistricting Commission the
responsibility for redrawing district boundaries for state Senate,
Assembly, and Board of Equalization districts after each national
decennial census. Existing law further directs the State Auditor to
oversee the selection of members of the commission, and directs the
Secretary of State to assist the commission in carrying out its
redistricting responsibilities. Existing law requires the Legislature
to include in the Budget Act, in each year ending in 9, an
appropriation to meet the expenses of the commission, the State
Auditor, and the Secretary of State in implementing the redistricting
process. The appropriation is required to be a minimum of $3,000,000
and is required to be available for a 3-year period. The Legislature
is permitted to make additional appropriations in any year in which
it determines that the commission requires additional funding. The
Budget Act of 2009 appropriated $3,000,000 for allocation by the
Director of Finance among the Citizens Redistricting Commission, the
Secretary of State, and the Bureau of State Audits to meet the
expenses of those entities in implementing the redistricting process
in connection with the 2010 national census.
This bill would provide that funds appropriated in the Budget Act
of 2009 for expenses of the commission, the Secretary of State, and
the Bureau of State Audits in connection with implementing the
redistricting process shall be available until June 30, 2012, and
would further provide that funds allocated pursuant to the Budget Act
of 2010 for those purposes shall be available until June 30, 2013.
The bill would prohibit those funds from being allocated by the
Director of Finance until the State Auditor has selected the first 8
members of the commission and the Department of Finance has submitted
to the Joint Legislative Budget Committee a 30-days' notice of
intent to allocate those funds. The bill would require, in order for
the Bureau of State Audits to receive an allocation of funds, that
the bureau submit a request with a detailed cost estimate to the
Chairperson of the Joint Legislative Budget Committee and the
Director of Finance, and that the chairperson of the joint committee
provide a written notification to the director that the requested
allocation, or a lesser amount, is needed to carry out expenses of
the bureau as set forth in the detailed cost estimate.
(33) Existing law creates the California Infrastructure and
Economic Development Bank for the purpose of, among other things,
providing financial assistance for public development facilities
located in California. Existing law establishes the California
Infrastructure Guarantee Trust Fund within which there is a guarantee
reserve account to fund secure commitments under contracts to
guarantee all or part of the bonds in the bank. Existing law permits
the Legislature to establish for the guarantee reserve account a
reserve account requirement. Existing law requires the bank to take
all reasonable steps to maintain the reserve account requirement, and
if the bank determines that the amount in the reserve account is
below the reserve account requirement, the executive director of the
bank is to certify to various parties in the Legislature the sum
required to restore the reserve fund to the requirement, and upon
making the certification, request an appropriation. Existing law
provides that the obligation of the bank and the state to pay any
guarantee is a limited obligation of the bank payable solely from
amounts deposited in the guarantee trust fund that are made available
under the respective contracts of guarantee, and prohibits the
guarantee of loans or bonds from directly, indirectly, or
contingently obligating the state to levy or to pledge any form of
taxation or to make any appropriation for their payment. In 2003, the
California Infrastructure and Economic Development Bank and the
Imperial Irrigation District entered into a preliminary loan
guarantee agreement.
This bill would require that funds in the California
Infrastructure Guarantee Trust Fund, as of January 1, 2010, held for
the benefit of the Imperial Irrigation District, be deposited in a
guarantee reserve account in the fund, which the bill would
establish, and would provide that this amount is the reserve account
requirement, as specified, for the purpose of meeting the obligations
of the Imperial Irrigation District up to $150,000,000 in connection
with certain water agreements. The bill would require that the
California Infrastructure and Economic Development Bank guarantee
certain bonds relating to the Imperial Irrigation District projects,
and that the reserve account be paid for the benefit of bondholders
in the event of a shortfall, as specified. The bill would specify the
characteristics of these bonds, and would establish the limits of
the liability of the Imperial Irrigation District, the California
Infrastructure and Economic Development Bank, and the state in
connection to them.
(34) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(35) This bill would declare that it is to take effect immediately
as an urgency statute.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 154.2 is added to the Business and Professions
Code, to read:
154.2. (a) The healing arts boards within Division 2 (commencing
with Section 500) may employ individuals, other than peace officers,
to perform investigative services.
(b) The healing arts boards within Division 2 (commencing with
Section 500) may employ individuals to serve as experts.
SEC. 2. Section 159.5 of the Business and Professions Code is
amended to read:
159.5. There is in the department the Division of Investigation.
The division is in the charge of a person with the title of chief of
the division.
Except as provided in Section 160, investigators who have the
authority of peace officers, as specified in subdivision (a) of
Section 160 and in subdivision (a) of Section 830.3 of the Penal
Code, shall be in the division and shall be appointed by the
director.
SEC. 3. Section 160 of the Business and Professions Code is
amended to read:
160. (a) The Chief and all investigators of the Division of
Investigation of the department and all investigators of the Medical
Board of California and the Dental Board of California have the
authority of peace officers while engaged in exercising the powers
granted or performing the duties imposed upon them or the division in
investigating the laws administered by the various boards comprising
the department or commencing directly or indirectly any criminal
prosecution arising from any investigation conducted under these
laws. All persons herein referred to shall be deemed to be acting
within the scope of employment with respect to all acts and matters
set forth in this section.
(b) The Division of Investigation of the department, the Medical
Board of California, and the Dental Board of California may employ
individuals, who are not peace officers, to provide investigative
services.
SEC. 4. Section 210 is added to the Business and Professions Code,
to read:
210. (a) (1) The department may enter into a contract with a
vendor for the BreEZe system, the integrated, enterprisewide
enforcement case management and licensing system described in the
department's strategic plan, no sooner than 30 days after
notification in writing to the chairpersons of the Appropriations
Committees of each house of the Legislature and the Chairperson of
the Joint Legislative Budget Committee.
(2) The amount of BreEZe system vendor contract funds, authorized
pursuant to this section, shall be consistent with the project costs
approved by the office of the State Chief Information Officer based
on its review and approval of the most recent BreEZe Special Project
Report to be submitted by the department prior to contract award at
the conclusion of procurement activities.
(3) Paragraph (2) shall apply to all Budget Act items for the
department that have an appropriation for the BreEZe system.
(b) (1) If the department enters into a contract with a vendor for
the BreEZe system pursuant to subdivision (a), the department shall,
by December 31, 2014, submit to the Legislature, the Senate
Committee on Business, Professions and Economic Development, the
Assembly Committee on Business, Professions and Consumer Protection,
and the budget committees of each house, a report analyzing the
workload of licensing personnel employed by boards within the
department participating in the BreEZe system.
(2) A report to the Legislature pursuant to this subdivision shall
be submitted in compliance with Section 9795 of the Government Code.
(3) This subdivision shall become inoperative on December 1, 2018,
pursuant to Section 10231.5 of the Government Code.
SEC. 5. Section 23399 of the Business and Professions Code is
amended to read:
23399. (a) An on-sale general license authorizes the sale of
beer, wine, and distilled spirits for consumption on the premises
where sold. Any licensee under an on-sale general license, an on-sale
beer and wine license, a club license, or a veterans' club license
may apply to the department for a caterer's permit. A caterer's
permit under an on-sale general license shall authorize the sale of
beer, wine, and distilled spirits for consumption at conventions,
sporting events, trade exhibits, picnics, social gatherings, or
similar events held any place in the state approved by the
department. A caterer's permit under an on-sale beer and wine license
shall authorize the sale of beer and wine for consumption at
conventions, sporting events, trade exhibits, picnics, social
gatherings, or similar events held any place in the state approved by
the department. A caterer's permit under a club license or a
veterans' club license shall authorize sales at these events only
upon the licensed club premises.
(b) Any licensee under an on-sale general license or an on-sale
beer and wine license may apply to the department for an event
permit. An event permit under an on-sale general license or an
on-sale beer and wine license shall authorize, at events held no more
frequently than four days in any single calendar year, the sale of
beer, wine, and distilled spirits only under an on-sale general
license or beer and wine only under an on-sale beer and wine license
for consumption on property adjacent to the licensed premises and
owned or under the control of the licensee. This property shall be
secured and controlled by the licensee and not visible to the general
public.
(c) This section shall in no way limit the power of the department
to issue special licenses under the provisions of Section 24045 or
to issue daily on-sale general licenses under the provisions of
Section 24045.1. Consent for sales at each event shall be first
obtained from the department in the form of a catering or event
authorization issued pursuant to rules prescribed by it. Any event
authorization shall be subject to approval by the appropriate local
law enforcement agency. The fee for each catering or event
authorization shall be issued at a fee not to exceed twenty-five
dollars ($25) and this fee shall be deposited in the Alcohol Beverage
Control Fund as provided in Section 25761.
(d) At all approved events, the licensee may exercise only those
privileges authorized by the licensee's license and shall comply with
all provisions of the act pertaining to the conduct of on-sale
premises and violation of those provisions may be grounds for
suspension or revocation of the licensee's license or permit, or
both, as though the violation occurred on the licensed premises.
(e) The fee for a caterer's permit for a licensee under an on-sale
general license, a caterer's permit for a licensee under an on-sale
beer and wine license, or an event permit for a licensee under an
on-sale general license or an on-sale beer and wine license shall be
one hundred four dollars ($104) for permits issued during the 2002
calendar year, one hundred seven dollars ($107) for permits issued
during the 2003 calendar year, one hundred ten dollars ($110) for
permits issued during the 2004 calendar year, and for permits issued
during the years thereafter, the annual fee shall be calculated
pursuant to subdivisions (b) and (c) of Section 23320, and the fee
for a caterer's permit for a licensee under a club license or a
veterans' club license shall be as specified in Section 23320, and
the permit may be renewable annually at the same time as the licensee'
s license. A caterer's or event permit shall be transferable as a
part of the license.
SEC. 6. Section 23954.5 of the Business and Professions Code is
amended to read:
23954.5. (a) An applicant for an original on-sale general license
shall, at the time of filing the application for the license,
accompany the application with a fee as determined by the department
pursuant to subdivision (b) of this section. At the time of filing an
application for a license, an applicant for an original on-sale
general license for seasonal business shall accompany the application
with a fee as determined by the department pursuant to subdivision
(b) of this section. An applicant for an original on-sale beer and
wine license shall accompany the application with a fee of three
hundred dollars ($300). An applicant for an original on-sale beer
license shall accompany the application with a fee of two hundred
dollars ($200). An applicant for an original off-sale general license
shall, at the time of filing the application for the license,
accompany the application with a fee as determined by the department
pursuant to subdivision (b) of this section. An applicant for an
original off-sale beer and wine license or an original license not
specified in this section, shall accompany the application with a fee
of one hundred dollars ($100).
"Original on-sale general license," "original on-sale general
license for seasonal business," "original on-sale beer and wine
license," "original on-sale beer license," "original off-sale general
license," and "original off-sale beer and wine license," as used in
this division, do not include a license issued upon renewal or
transfer of a license.
(b) The fee for an original on-sale general license or an original
off-sale general license shall be thirteen thousand eight hundred
dollars ($13,800). Beginning January 1, 2011, and each January
thereafter, the department may adjust this fee as provided in
subdivisions (c) and (d) of Section 23320.
(c) All money collected from the fees provided for in this section
shall be in the Alcohol Beverage Control Fund as provided in Section
25761.
SEC. 7. Section 337.5 of the Code of Civil Procedure is amended to
read:
337.5. Within 10 years:
(a) An action upon any general obligation bonds or coupons, not
secured in whole or in part by a lien on real property, issued by any
county, city and county, municipal corporation, district (including
school districts), or other political subdivision of the State of
California.
(b) An action upon a judgment or decree of any court of the United
States or of any state within the United States.
SEC. 8. Section 348.5 is added to the Code of Civil Procedure, to
read:
348.5. An action upon any bonds or coupons issued by the State of
California shall have no limitation.
SEC. 9. Section 94874.3 is added to the Education Code, to read:
94874.3. (a) For the period July 1, 2010, to July 1, 2011,
inclusive, the bureau shall not enforce this chapter against an
institution that offers flight instruction or an institution that
offers Federal Aviation Administration certified educational programs
in aircraft maintenance.
(b) An institution identified in subdivision (a) shall notify the
bureau if the institution operates during the period of July 1, 2010,
to July 1, 2011, inclusive.
(c) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
SEC. 10. Section 94949 of the Education Code is amended to read:
94949. (a) On or before October 1, 2013, the Legislative Analyst'
s Office shall report to the Legislature and the Governor on the
appropriateness of the exemptions provided in this chapter, with
particular attention to the exemptions provided by Article 4
(commencing with Section 94874) that are based on accreditation. The
report shall examine and make recommendations regarding the degree to
which regional and national accrediting agencies provide oversight
of institutions and protection of student interests, whether that
oversight results in the same level of protection of students as
provided by this chapter, and whether the exemptions provided in
Article 4 (commencing with Section 94874) that are based on
accreditation should be continued, adjusted, or removed.
(b) (1) On or before August 1, 2013, the bureau shall contract
with the Bureau of State Audits to conduct a performance audit to
evaluate the effectiveness and efficiency of the bureau's operations,
consistent with the requirements of this chapter, and the Bureau of
State Audits shall report the results of that audit to the
Legislature and the Governor.
(2) The performance audit required by paragraph (1) shall include,
but shall not be limited to, an evaluation of all of the following:
(A) The Student Tuition Recovery Fund, including the adequacy of
its balance; the quality, timeliness, and consistency of claims
processing; and the degree to which it has been, or will be, able to
reimburse tuition for students.
(B) The bureau's enforcement program, including the means by which
the bureau makes students and school employees aware of their
ability to file complaints; the average time for investigating
complaints; the standards for referring complaints to investigation;
the average time to complete investigations; the adequacy of the
bureau's inspections; the bureau's record of imposing discipline; the
bureau's record of initiating investigations based upon publicly
available information; the bureau's record of coordinating with law
enforcement and public prosecutors; and whether the bureau has the
enforcement resources necessary to protect consumers and ensure a
fair and prompt resolution of complaints and investigations for both
students and institutions.
(C) The bureau's efforts with respect to, and extent of
institution compliance with, the public and student disclosure
requirements of this chapter.
(D) Whether the bureau's staffing level and expertise are
sufficient to fulfill its statutory responsibilities.
(c) Bureau staff and management shall cooperate with the
Legislative Analyst's Office and the Bureau of State Audits and shall
provide those agencies with access to data, case files, employees,
and information as those agencies may, in their discretion, require
for the purposes of this section.
SEC. 11. Section 926.16 of the Government Code is repealed.
SEC. 12. Section 926.19 of the Government Code is repealed.
SEC. 13. Section 927 of the Government Code is amended to read:
927. (a) This chapter shall be known and may be cited as the
California Prompt Payment Act.
(b) It is the intent of the Legislature that state agencies pay
properly submitted, undisputed invoices, refunds, or other undisputed
payments due to individuals within 45 days of receipt or
notification thereof, or automatically calculate and pay the
appropriate late payment penalties as specified in this chapter.
(c) Notwithstanding any other provision of law, this chapter shall
apply to all state agencies, including, but not limited to, the
Public Employees' Retirement System, the State Teachers' Retirement
System, the Treasurer, and the Department of General Services.
SEC. 14. Section 927.2 of the Government Code is amended to read:
927.2. The following definitions apply to this chapter:
(a) "Claim schedule" means a schedule of payment requests prepared
and submitted by a state agency to the Controller for payment to the
named claimant.
(b) "Grant" means a signed final agreement between any state
agency and a local government agency or organization authorized to
accept grant funding for victim services or prevention programs
administered by any state agency. Any such grant is a contract and
subject to this chapter.
(c) "Invoice" means a bill or claim that requests payment on a
contract under which a state agency acquires property or services or
pursuant to a signed final grant agreement.
(d) "Medi-Cal program" means the program established pursuant to
Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of
the Welfare and Institutions Code.
(e) "Nonprofit public benefit corporation" means a corporation, as
defined by subdivision (b) of Section 5046 of the Corporations Code,
that has registered with the Department of General Services as a
small business.
(f) "Nonprofit service organization" means a nonprofit entity that
is organized to provide services to the public.
(g) "Notice of refund or other payment due" means a state agency
provides notice to the person that a refund or payment is owed to
that person or the state agency receives notice from the person that
a refund or undisputed payment is due.
(h) "Payment" means any form of the act of paying, including, but
not limited to, the issuance of a warrant or a registered warrant by
the Controller, or the issuance of a revolving fund check by a state
agency, to a claimant in the amount of an undisputed invoice.
(i) "Reasonable cause" means a determination by a state agency
that any of the following conditions are present:
(1) There is a discrepancy between the invoice or claimed amount
and the provisions of the contract or grant.
(2) There is a discrepancy between the invoice or claimed amount
and either the claimant's actual delivery of property or services to
the state or the state's acceptance of those deliveries.
(3) Additional evidence supporting the validity of the invoice or
claimed amount is required to be provided to the state agency by the
claimant.
(4) The invoice has been improperly executed or needs to be
corrected by the claimant.
(5) There is a discrepancy between the refund or other payment due
as calculated by the person to whom the money is owed and by the
state agency.
(j) "Received by a state agency" means the date an invoice is
delivered to the state location or party specified in the contract or
grant or, if a state location or party is not specified in the
contract or grant, wherever otherwise specified by the state agency.
(k) "Required payment approval date" means the date on which
payment is due as specified in a contract or grant or, if a specific
date is not established by the contract or grant, 30 calendar days
following the date upon which an undisputed invoice is received by a
state agency.
(l) "Revolving fund" means a fund established pursuant to Article
5 (commencing with Section 16400) of Division 4 of Title 2.
(m) "Small business" means a business certified as a "small
business" in accordance with subdivision (d) of Section 14837.
(n) "Small business" and "nonprofit organization" mean, in
reference to providers under the Medi-Cal program, a business or
organization that meets all of the following criteria:
(1) The principal office is located in California.
(2) The officers, if any, are domiciled in California.
(3) If a small business, it is independently owned and operated.
(4) The business or organization is not dominant in its field of
operation.
(5) Together with any affiliates, the business or organization has
gross receipts from business operations that do not exceed three
million dollars ($3,000,000) per year, except that the Director of
Health Services may increase this amount if the director deems that
this action would be in furtherance of the intent of this chapter.
SEC. 15. Section 927.3 of the Government Code is amended to read:
927.3. (a) Except where payment is made directly by a state
agency pursuant to Section 927.6, an undisputed invoice received by a
state agency shall be submitted to the Controller for payment by the
required payment approval date. A state agency may dispute an
invoice submitted by a claimant for reasonable cause if the state
agency notifies the claimant within 15 working days from receipt of
the invoice, or delivery of property or services, whichever is later.
No state employee shall dispute an invoice, on the basis of minor or
technical defects, in order to circumvent or avoid the general
intent or any of the specific provisions of this chapter.
(b) Except where payment is made directly by a state agency
pursuant to Section 927.13, a notice of refund or other payment due
received by a state agency shall be submitted to the Controller
within 30 calendar days of the agency's receipt of the notice. A
state agency may dispute a refund request for reasonable cause if the
state agency notifies the claimant within 15 working days after the
state agency receives notice from the individual that the refund is
due.
SEC. 16. Section 927.5 of the Government Code is amended to read:
927.5. This chapter shall not apply to claims for reimbursement
for health care services provided under the Medi-Cal program, unless
the Medi-Cal health care services provider is a small business or
nonprofit organization. In applying this section to claims submitted
to the state, or its fiscal intermediary, by providers of services or
equipment under the Medi-Cal program, payment for claims shall be
due 30 days after a claim is received by the state or its fiscal
intermediary, unless reasonable cause for nonpayment exists. With
regard to Medi-Cal claims, reasonable cause shall include review of
claims to determine medical necessity, review of claims for providers
subject to special prepayment fraud and abuse controls, and claims
that require review by the fiscal intermediary or State Department of
Health Care Services due to special circumstances. Claims requiring
special review as specified above shall not be eligible for a late
payment penalty.
SEC. 17. Section 927.6 of the Government Code is amended to read:
927.6. (a) State agencies shall pay applicable penalties, without
requiring that the claimant submit an additional invoice for these
amounts, whenever the state agency fails to submit a correct claim
schedule to the Controller by the required payment approval date and
payment is not issued within 45 calendar days from the state agency
receipt of an undisputed invoice. The penalty shall cease to accrue
on the date the state agency submits the claim schedule to the
Controller for payment or pays the claimant directly, and shall be
paid for out of the state agency's support appropriation. If the
claimant is a certified small business, a nonprofit organization, a
nonprofit public benefit corporation, or a small business or
nonprofit organization that provides services or equipment under the
Medi-Cal program, the state agency shall pay to the claimant a
penalty at a rate of 10 percent above the United States Prime Rate on
June 30 of the prior fiscal year. However, a nonprofit organization
shall only be eligible to receive a penalty payment if it has been
awarded a contract or grant in an amount less than five hundred
thousand dollars ($500,000). If the amount of the penalty is ten
dollars ($10) or less, the penalty shall be waived and not paid by
the state agency.
(b) For all other businesses, the state agency shall pay a penalty
at a rate of 1 percent above the Pooled Money Investment Account
daily rate on June 30 of the prior fiscal year, not to exceed a rate
of 15 percent. If the amount of the penalty is one hundred dollars
($100) or less, the penalty shall be waived and not paid by the state
agency. On an exception basis, state agencies may avoid payment of
penalties for failure to submit a correct claim schedule to the
Controller by the required payment approval date by paying the
claimant directly from the state agency's revolving fund within 45
calendar days following the date upon which an undisputed invoice is
received by the state agency.
SEC. 18. Section 927.7 of the Government Code is amended to read:
927.7. The Controller shall pay claimants within 15 calendar days
of receipt of a correct claim schedule from the state agency. If the
Controller fails to make payment within 15 calendar days of receipt
of the claim schedule from a state agency, and payment is not issued
within 45 calendar days from state agency receipt of an undisputed
invoice, the Controller shall pay applicable penalties to the
claimant without requiring that the claimant submit an invoice for
these amounts. Penalties shall cease to accrue on the date full
payment is made, and shall be paid for out of the Controller's funds.
If the claimant is a certified small business, a nonprofit
organization, a nonprofit public benefit corporation, or a small
business or nonprofit organization that provides services or
equipment under the Medi-Cal program, the Controller shall pay to the
claimant a penalty at a rate of 10 percent above the United States
Prime Rate on June 30 of the prior fiscal year, from the 16th
calendar day following receipt of the claim schedule from the state
agency. However, a nonprofit organization shall only be eligible to
receive a penalty payment if it has been awarded a contract or grant
in an amount less than five hundred thousand dollars ($500,000). If
the amount of the penalty is ten dollars ($10) or less, the penalty
shall be waived and not paid by the Controller. For all other
businesses, the Controller shall pay penalties at a rate of 1 percent
above the Pooled Money Investment Account daily rate on June 30 of
the prior fiscal year, not to exceed a rate of 15 percent. If the
amount of the penalty is one hundred dollars ($100) or less, the
penalty shall be waived and not paid by the Controller.
SEC. 19. Section 927.9 of the Government Code is amended to read:
927.9. (a) On an annual basis, within 90 calendar days following
the end of each fiscal year, state agencies shall provide the
Director of General Services with a report on late payment penalties
that were paid by the state agency in accordance with this chapter
during the preceding fiscal year.
(b) The report shall separately identify the total number and
dollar amount of late payment penalties paid to small businesses,
other businesses, and refunds or other payments to individuals. State
agencies may, at their own initiative, provide the director with
other relevant performance measures. The director shall prepare a
report separately listing the number and total dollar amount of all
late payment penalties paid to small businesses, other businesses,
and refunds and other payments to individuals by each state agency
during the preceding fiscal year, together with other relevant
performance measures, and shall make the information available to the
public.
SEC. 20. Section 927.13 is added to the Government Code, to read:
927.13. (a) Unless otherwise provided for by statute, any state
agency that fails to submit a correct claim schedule to the
Controller within 30 days of receipt of a notice of refund or other
payment due, and fails to issue payment within 45 days from the
notice of refund or other payment due, shall be liable for penalties
on the undisputed amount pursuant to this section. The penalties
shall be paid out of the agency's funds at a rate equal to the Pooled
Money Investment Account daily rate on June 30 of the prior fiscal
year minus 1 percent. The penalties shall cease to accrue on the date
full payment or refund is made. If the amount of the penalty is ten
dollars ($10) or less, the penalty shall be waived and not paid by
the state agency. On an exception basis, state agencies may avoid
payment of penalties for
failure to submit a correct claim schedule to the Controller by
paying the claimant directly from the state agency's revolving fund
within 45 calendar days following the agency's receipt of the notice
of refund or other payment due.
(b) The Controller shall pay claimants within 15 calendar days of
receipt of a correct claim schedule from the state agency. If the
Controller fails to make payment within 15 calendar days of receipt
of the claim schedule from a state agency, and payment is not issued
within 45 calendar days following the agency's receipt of a notice of
refund or undisputed payment due, the Controller shall pay
applicable penalties to the claimant. Penalties shall cease to accrue
on the date full payment is made, and shall be paid out of the
Controller's funds. If the amount of the penalty is ten dollars ($10)
or less, the penalty shall be waived and not paid by the Controller.
(c) No person shall receive an interest payment pursuant to this
section if it is determined that the person has intentionally
overpaid on a liability solely for the purpose of receiving a penalty
payment.
(d) No penalty shall accrue during any time period for which there
is no Budget Act in effect, nor on any payment or refund that is the
result of a federally mandated program or that is directly dependent
upon the receipt of federal funds by a state agency.
(e) This section shall not apply to any of the following:
(1) Payments, refunds, or credits for income tax purposes.
(2) Payment of claims for reimbursement for health care services
or mental health services provided under the Medi-Cal program,
pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of
Division 9 of the Welfare and Institutions Code.
(3) Any payment made pursuant to a public social service or public
health program to a recipient of benefits under that program.
(4) Payments made on claims by the California Victim Compensation
and Government Claims Board.
(5) Payments made by the Commission on State Mandates.
(6) Payments made by the Department of Personnel Administration
pursuant to Section 19823.
SEC. 21. Section 7072.3 is added to the Government Code, to read:
7072.3. The department shall deposit funds collected pursuant to
subdivision (c) of Section 7076, subdivision (a) of Section 7097.1,
and subdivision (a) of Section 7114.2 into the Enterprise Zone Fund,
which is hereby created in the State Treasury. Moneys deposited into
the fund shall be available to the department, upon appropriation by
the Legislature, for expenditure in carrying out the provisions of
this chapter, Chapter 12.93 (commencing with Section 7097), and
Chapter 12.97 (commencing with Section 7105), including, but not
limited to, establishing a reasonable reserve in the fund.
SEC. 22. Section 7076 of the Government Code is amended to read:
7076. (a) (1) The department shall provide technical assistance
to the enterprise zones designated pursuant to this chapter with
respect to all of the following activities:
(A) Furnish limited onsite assistance to the enterprise zones when
appropriate.
(B) Ensure that the locality has developed a method to make
residents, businesses, and neighborhood organizations aware of the
opportunities to participate in the program.
(C) Help the locality develop a marketing program for the
enterprise zone.
(D) Coordinate activities of other state agencies regarding the
enterprise zones.
(E) Monitor the progress of the program.
(F) Help businesses to participate in the program.
(2) Notwithstanding existing law, the provision of services in
subparagraphs (A) to (F), inclusive, shall be a high priority of the
department.
(3) The department may, at its discretion, undertake other
activities in providing management and technical assistance for
successful implementation of this chapter.
(b) The applicant shall be required to begin implementation of the
enterprise zone plan contained in the final application within six
months after notification of final designation or the enterprise zone
shall lose its designation.
(c) The department shall assess a fee of fifteen dollars ($15) on
each enterprise zone and manufacturing enhancement area for each
application for issuance of a certificate pursuant to subdivision (j)
of Section 17053.47 of, subdivision (c) of Section 17053.74 of,
subdivision (c) of Section 23622.7 of, or subdivision (i) of Section
23622.8 of, the Revenue and Taxation Code. The department shall
collect the fee for deposit into the Enterprise Zone Fund, pursuant
to Section 7072.3, for the costs of administering this chapter. The
enterprise zone or manufacturing enhancement area administrator shall
collect this fee at the time an application is submitted for
issuance of a certificate.
SEC. 23. Section 7097.1 of the Government Code is amended to read:
7097.1. (a) The department shall assess each targeted tax area a
fee of fifteen dollars ($15) for each application for issuance of a
certificate pursuant to subdivision (d) of Section 17053.34 of the
Revenue and Taxation Code and subdivision (d) of Section 23634 of the
Revenue and Taxation Code. The department shall collect the fee for
deposit into the Enterprise Zone Fund, pursuant to Section 7072.3,
for the costs of administering this chapter. The targeted tax area
administrator shall collect this fee at the time an application is
submitted for issuance of a certificate.
(b) The department shall adopt regulations governing the issuance
of certificates pursuant to subdivision (d) of Section 17053.34 and
subdivision (d) of Section 23634 of the Revenue and Taxation Code.
The adoption of the regulations shall be deemed to be an emergency
and necessary for the immediate preservation of the public peace,
health and safety, or general welfare. Notwithstanding subdivision
(c) of Section 11346.1, the regulations shall remain in effect for
not more than 360 days unless the department complies with all the
provisions of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 as required by subdivision (e) of Section
11346.1.
SEC. 24. Section 7114.2 of the Government Code is amended to read:
7114.2. (a) The department shall assess each LAMBRA a fee of
fifteen dollars ($15) for each application for issuance of a
certificate pursuant to subdivision (c) of Section 17053.46 of the
Revenue and Taxation Code and subdivision (c) of Section 23646 of the
Revenue and Taxation Code. The department shall collect the fee for
deposit into the Enterprise Zone Fund, pursuant to Section 7072.3,
for the costs of administering this chapter. The LAMBRA administrator
shall collect this fee at the time an application is submitted for
issuance of a certificate.
(b) The department shall adopt regulations governing the
imposition and collection of fees pursuant to this section and the
issuance of certificates pursuant to subdivision (c) of Section
17053.46 of the Revenue and Taxation Code and subdivision (c) of
Section 23646 of the Revenue and Taxation Code. The regulations shall
provide for a notice or invoice to fee payers as to the amount and
purpose of the fee. The adoption of the regulations shall be deemed
to be an emergency and necessary for the immediate preservation of
the public peace, health and safety, or general welfare.
Notwithstanding subdivision (e) of Section 11346.1, the regulations
shall remain in effect for no more than 360 days unless the agency
complies with all the provisions of Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 as required by
subdivision (e) of Section 11346.1.
SEC. 25. Section 7591 of the Government Code is amended to read:
7591. (a) The amount of fifteen million dollars ($15,000,000) is
appropriated, subject to subdivision (b), from the General Fund to
the Trade and Commerce Agency for a loan for allocation over three
years in three equal amounts to that nonprofit organization currently
named the San Diego National Sports Training Foundation, for
purposes of developing and constructing, with the participation and
advice of the United States Olympic Committee, a California Olympic
Training Center.
(b) The loan allocations provided for by this section shall be
made no earlier than December 31, of 1990, 1991, and 1992, and shall
be made only if the San Diego National Sports Training Foundation is
able and willing by each of those dates to provide the sum of five
million dollars ($5,000,000), for purposes of developing and
constructing, with the participation and advice of the United States
Olympic Committee, a California Olympic Training Center.
(c) Notwithstanding any other provision of law, any outstanding
loan balance and any accrued interest that exist on the operative
date of the act adding this subdivision shall not be required to be
repaid.
SEC. 26. Section 7592 of the Government Code is amended to read:
7592. There is in the General Fund the California Olympic
Training Account. The account shall consist of those revenues derived
from the additional vehicle registration fees provided for in
Section 5023 of the Vehicle Code and shall be annually transferred to
the General Fund by the Controller.
SEC. 27. Section 11544 of the Government Code, as added by Section
1 of Chapter 533 of the Statutes of 2006, is amended to read:
11544. (a) The Technology Services Revolving Fund, hereafter
known as the fund, is hereby created within the State Treasury. The
fund shall be administered by the State Chief Information Officer to
receive all revenues from the sale of technology or technology
services provided for in this chapter, for other services rendered by
the office of the State Chief Information Officer, and all other
moneys properly credited to the office of the State Chief Information
Officer from any other source, to pay, upon appropriation by the
Legislature, all costs arising from this chapter and rendering of
services to state and other public agencies, including, but not
limited to, employment and compensation of necessary personnel and
expenses, such as operating and other expenses of the board and the
office of the State Chief Information Officer, and costs associated
with approved information technology projects, and to establish
reserves. At the discretion of the State Chief Information Officer,
segregated, dedicated accounts within the fund may be established.
The amendments made to this section by the act adding this sentence
shall apply to all revenues earned on or after July 1, 2010.
(b) The fund shall consist of all of the following:
(1) Moneys appropriated and made available by the Legislature for
the purposes of this chapter.
(2) Any other moneys that may be made available to the office of
the State Chief Information Officer from any other source, including
the return from investments of moneys by the Treasurer.
(c) The office of the State Chief Information Officer may collect
payments from public agencies for providing services to those
agencies that the agencies have requested from the office of the
State Chief Information Officer. The office of the State Chief
Information Officer may require monthly payments by client agencies
for the services the agencies have requested. Pursuant to Section
11255, the Controller shall transfer any amounts so authorized by the
office of the State Chief Information Officer, consistent with the
annual budget of each department, to the fund. The office of the
State Chief Information Officer shall notify each affected state
agency upon requesting the Controller to make the transfer.
(d) At the end of any fiscal year, if the balance remaining in the
fund at the end of that fiscal year exceeds 25 percent of the
portion of the office of the State Chief Information Officer's
current fiscal year budget used for support of data center and other
client services, the excess amount shall be used to reduce the
billing rates for services rendered during the following fiscal year.
SEC. 28. Section 11546.4 is added to the Government Code, to read:
11546.4. Notwithstanding any other law, any service contract
proposed to be entered into by an agency that would not otherwise be
subject to review, approval, or oversight by the office of the State
Chief Information Officer but that contains an information technology
component that would be subject to oversight by the office of the
State Chief Information Officer if it was a separate information
technology project, shall be subject to review, approval, and
oversight by the office of the State Chief Information Officer as set
forth in Section 11546.
SEC. 29. Chapter 2 (commencing with Section 13996) of Part 4.7 of
Division 3 of Title 2 of the Government Code is repealed.
SEC. 30. Section 16429.1 of the Government Code is amended to
read:
16429.1. (a) There is in trust in the custody of the Treasurer
the Local Agency Investment Fund, which fund is hereby created. The
Controller shall maintain a separate account for each governmental
unit having deposits in this fund.
(b) Notwithstanding any other provisions of law, a local
governmental official, with the consent of the governing body of that
agency, having money in its treasury not required for immediate
needs, may remit the money to the Treasurer for deposit in the Local
Agency Investment Fund for the purpose of investment.
(c) Notwithstanding any other provisions of law, an officer of any
nonprofit corporation whose membership is confined to public
agencies or public officials, or an officer of a qualified
quasi-governmental agency, with the consent of the governing body of
that agency, having money in its treasury not required for immediate
needs, may remit the money to the Treasurer for deposit in the Local
Agency Investment Fund for the purpose of investment.
(d) Notwithstanding any other provision of law or of this section,
a local agency, with the approval of its governing body, may deposit
in the Local Agency Investment Fund proceeds of the issuance of
bonds, notes, certificates of participation, or other evidences of
indebtedness of the agency pending expenditure of the proceeds for
the authorized purpose of their issuance. In connection with these
deposits of proceeds, the Local Agency Investment Fund is authorized
to receive and disburse moneys, and to provide information, directly
with or to an authorized officer of a trustee or fiscal agent engaged
by the local agency, the Local Agency Investment Fund is authorized
to hold investments in the name and for the account of that trustee
or fiscal agent, and the Controller shall maintain a separate account
for each deposit of proceeds.
(e) The local governmental unit, the nonprofit corporation, or the
quasi-governmental agency has the exclusive determination of the
length of time its money will be on deposit with the Treasurer.
(f) The trustee or fiscal agent of the local governmental unit has
the exclusive determination of the length of time proceeds from the
issuance of bonds will be on deposit with the Treasurer.
(g) The Local Investment Advisory Board shall determine those
quasi-governmental agencies which qualify to participate in the Local
Agency Investment Fund.
(h) The Treasurer may refuse to accept deposits into the fund if,
in the judgment of the Treasurer, the deposit would adversely affect
the state's portfolio.
(i) The Treasurer may invest the money of the fund in securities
prescribed in Section 16430. The Treasurer may elect to have the
money of the fund invested through the Surplus Money Investment Fund
as provided in Article 4 (commencing with Section 16470) of Chapter 3
of Part 2 of Division 4 of Title 2.
(j) Money in the fund shall be invested to achieve the objective
of the fund which is to realize the maximum return consistent with
safe and prudent treasury management.
(k) All instruments of title of all investments of the fund shall
remain in the Treasurer's vault or be held in safekeeping under
control of the Treasurer in any federal reserve bank, or any branch
thereof, or the Federal Home Loan Bank of San Francisco, with any
trust company, or the trust department of any state or national bank.
(l) Immediately at the conclusion of each calendar quarter, all
interest earned and other increment derived from investments shall be
distributed by the Controller to the contributing governmental units
or trustees or fiscal agents, nonprofit corporations, and
quasi-governmental agencies in amounts directly proportionate to the
respective amounts deposited in the Local Agency Investment Fund and
the length of time the amounts remained therein. An amount equal to
the reasonable costs incurred in carrying out the provisions of this
section, not to exceed a maximum of 5 percent of the earnings of this
fund and not to exceed the amount appropriated in the annual Budget
Act for this function, shall be deducted from the earnings prior to
distribution. The amount of this deduction shall be credited as
reimbursements to the state agencies, including the Treasurer, the
Controller, and the Department of Finance, having incurred costs in
carrying out the provisions of this section.
(m) The Treasurer shall prepare for distribution a monthly report
of investments made during the preceding month.
(n) As used in this section, "local agency," "local governmental
unit," and "local governmental official" includes a campus or other
unit and an official, respectively, of the California State
University who deposits moneys in funds described in Sections 89721,
89722, and 89725 of the Education Code.
SEC. 31. Section 17556 of the Government Code is amended to read:
17556. The commission shall not find costs mandated by the state,
as defined in Section 17514, in any claim submitted by a local
agency or school district, if, after a hearing, the commission finds
any one of the following:
(a) The claim is submitted by a local agency or school district
that requests or previously requested legislative authority for that
local agency or school district to implement the program specified in
the statute, and that statute imposes costs upon that local agency
or school district requesting the legislative authority. A resolution
from the governing body or a letter from a delegated representative
of the governing body of a local agency or school district that
requests authorization for that local agency or school district to
implement a given program shall constitute a request within the
meaning of this subdivision. This subdivision applies regardless of
whether the resolution from the governing body or a letter from a
delegated representative of the governing body was adopted or sent
prior to or after the date on which the statute or executive order
was enacted or issued.
(b) The statute or executive order affirmed for the state a
mandate that has been declared existing law or regulation by action
of the courts. This subdivision applies regardless of whether the
action of the courts occurred prior to or after the date on which the
statute or executive order was enacted or issued.
(c) The statute or executive order imposes a requirement that is
mandated by a federal law or regulation and results in costs mandated
by the federal government, unless the statute or executive order
mandates costs that exceed the mandate in that federal law or
regulation. This subdivision applies regardless of whether the
federal law or regulation was enacted or adopted prior to or after
the date on which the state statute or executive order was enacted or
issued.
(d) The local agency or school district has the authority to levy
service charges, fees, or assessments sufficient to pay for the
mandated program or increased level of service. This subdivision
applies regardless of whether the authority to levy charges, fees, or
assessments was enacted or adopted prior to or after the date on
which the statute or executive order was enacted or issued.
(e) The statute, executive order, or an appropriation in a Budget
Act or other bill provides for offsetting savings to local agencies
or school districts that result in no net costs to the local agencies
or school districts, or includes additional revenue that was
specifically intended to fund the costs of the state mandate in an
amount sufficient to fund the cost of the state mandate. This
subdivision applies regardless of whether a statute, executive order,
or appropriation in the Budget Act or other bill that either
provides for offsetting savings that result in no net costs or
provides for additional revenue specifically intended to fund the
costs of the state mandate in an amount sufficient to fund the cost
of the state mandate was enacted or adopted prior to or after the
date on which the statute or executive order was enacted or issued.
(f) The statute or executive order imposes duties that are
necessary to implement, or are expressly included in, a ballot
measure approved by the voters in a statewide or local election. This
subdivision applies regardless of whether the statute or executive
order was enacted or adopted before or after the date on which the
ballot measure was approved by the voters.
(g) The statute created a new crime or infraction, eliminated a
crime or infraction, or changed the penalty for a crime or
infraction, but only for that portion of the statute relating
directly to the enforcement of the crime or infraction.
SEC. 32. Section 17557 of the Government Code is amended to read:
17557. (a) If the commission determines there are costs mandated
by the state pursuant to Section 17551, it shall determine the amount
to be subvened to local agencies and school districts for
reimbursement. In so doing it shall adopt parameters and guidelines
for reimbursement of any claims relating to the statute or executive
order. The successful test claimants shall submit proposed parameters
and guidelines within 30 days of adoption of a statement of decision
on a test claim. The proposed parameters and guidelines may include
proposed reimbursable activities that are reasonably necessary for
the performance of the state-mandated program. At the request of a
successful test claimant, the commission may provide for one or more
extensions of this 30-day period at any time prior to its adoption of
the parameters and guidelines. If proposed parameters and guidelines
are not submitted within the 30-day period and the commission has
not granted an extension, then the commission shall notify the test
claimant that the amount of reimbursement the test claimant is
entitled to for the first 12 months of incurred costs will be reduced
by 20 percent, unless the test claimant can demonstrate to the
commission why an extension of the 30-day period is justified.
(b) In adopting parameters and guidelines, the commission may
adopt a reasonable reimbursement methodology.
(c) The parameters and guidelines adopted by the commission shall
specify the fiscal years for which local agencies and school
districts shall be reimbursed for costs incurred. However, the
commission may not specify in the parameters and guidelines any
fiscal year for which payment could be provided in the annual Budget
Act.
(d) (1) A local agency, school district, or the state may file a
written request with the commission to amend the parameters or
guidelines. The commission may, after public notice and hearing,
amend the parameters and guidelines. A parameters and guidelines
amendment submitted within 90 days of the claiming deadline for
initial claims, as specified in the claiming instructions pursuant to
Section 17561, shall apply to all years eligible for reimbursement
as defined in the original parameters and guidelines. A parameters
and guidelines amendment filed more than 90 days after the claiming
deadline for initial claims, as specified in the claiming
instructions pursuant to Section 17561, and on or before the claiming
deadline following a fiscal year, shall establish reimbursement
eligibility for that fiscal year.
(2) For purposes of this subdivision, the request to amend
parameters and guidelines may be filed to make any of the following
changes to parameters and guidelines, consistent with the statement
of decision:
(A) Delete any reimbursable activity that has been repealed by
statute or executive order after the adoption of the original or last
amended parameters and guidelines.
(B) Update offsetting revenues and offsetting savings that apply
to the mandated program and do not require a new legal finding that
there are no costs mandated by the state pursuant to subdivision (e)
of Section 17556.
(C) Include a reasonable reimbursement methodology for all or some
of the reimbursable activities.
(D) Clarify what constitutes reimbursable activities.
(E) Add new reimbursable activities that are reasonably necessary
for the performance of the state-mandated program.
(F) Define what activities are not reimbursable.
(G) Consolidate the parameters and guidelines for two or more
programs.
(H) Amend the boilerplate language. For purposes of this section,
"boilerplate language" means the language in the parameters and
guidelines that is not unique to the state-mandated program that is
the subject of the parameters and guidelines.
(e) A test claim shall be submitted on or before June 30 following
a fiscal year in order to establish eligibility for reimbursement
for that fiscal year. The claimant may thereafter amend the test
claim at any time, but before the test claim is set for a hearing,
without affecting the original filing date as long as the amendment
substantially relates to the original test claim.
(f) In adopting parameters and guidelines, the commission shall
consult with the Department of Finance, the affected state agency,
the Controller, the fiscal and policy committees of the Assembly and
Senate, the Legislative Analyst, and the claimants to consider a
reasonable reimbursement methodology that balances accuracy with
simplicity.
SEC. 33. Section 17570 is added to the Government Code, to read:
17570. (a) For purposes of this section the following definitions
shall apply:
(1) "Mandates law" means published court decisions arising from
state mandate determinations by the State Board of Control or the
Commission on State Mandates, or that address this part or Section 6
of Article XIII B of the California Constitution. "Mandates law" also
includes statutory amendments to this part and amendments to Section
6 of Article XIII B of the California Constitution.
(2) "Subsequent change in law" is a change in law that requires a
finding that an incurred cost is a cost mandated by the state, as
defined by Section 17514, or is not a cost mandated by the state
pursuant to Section
17556, or a change in mandates law, except that a "subsequent change
in law" does not include the amendments to Section 6 of Article XIII
B of the California Constitution that were approved by the voters on
November 2, 2004. A "subsequent change in law" also does not include
a change in the statutes or executive orders that impose new
state-mandated activities and require a finding pursuant to
subdivision (a) of Section 17551.
(3) "Test claim decision" means a decision of the Commission on
State Mandates on a test claim filed pursuant to Section 17551 or a
decision of the State Board of Control on a claim for state
reimbursement filed pursuant to Article 1 (commencing with Section
2201), Article 2 (commencing with Section 2227), and Article 3
(commencing with Section 2240) of Chapter 3 of Part 4 of Division 1
of the Revenue and Taxation Code prior to January 1, 1985.
(b) The commission may adopt a new test claim decision to
supersede a previously adopted test claim decision only upon a
showing that the state's liability for that test claim decision
pursuant to subdivision (a) of Section 6 of Article XIII B of the
California Constitution has been modified based on a subsequent
change in law.
(c) A local agency or school district, statewide association of
local agencies or school districts, or the Department of Finance, the
Controller, or other affected state agency may file a request with
the commission to adopt a new test claim decision pursuant to this
section.
(d) The commission shall adopt procedures for receiving requests
to adopt a new test claim decision pursuant to this section and for
providing notice and a hearing on those requests. The procedures
shall do all of the following:
(1) Specify that all requests for adoption of a new test claim
decision shall be filed on a form prescribed by the commission that
shall contain at least the following elements and documents:
(A) The name, case number, and adoption date of the prior test
claim decision.
(B) A detailed analysis of how and why the state's liability for
mandate reimbursement has been modified pursuant to subdivision (a)
of Section 6 of Article XIII B of the California Constitution based
on a subsequent change in law.
(C) The actual or estimated amount of the annual statewide change
in the state's liability for mandate reimbursement pursuant to
subdivision (a) of Section 6 of Article XIII B of the California
Constitution based on a subsequent change in law.
(D) Identification of all of the following, if relevant:
(i) Dedicated state funds appropriated for the program.
(ii) Dedicated federal funds appropriated for the program.
(iii) Fee authority to offset the costs of the program.
(iv) Federal law.
(v) Court decisions.
(vi) State or local ballot measures and the corresponding date of
the election.
(E) All assertions of fact shall be supported with declarations
made under penalty of perjury, based on the declarant's personal
knowledge, information, or belief, and be signed by persons who are
authorized and competent to do so, including, but not limited to, the
following:
(i) Declarations of actual or estimated annual statewide costs
that will or will not be incurred to implement the alleged mandate.
(ii) Declarations identifying all local, state, or federal funds,
or fee authority that may or may not be used to offset the increased
costs that will or will not be incurred by claimants to implement the
alleged mandate or result in a finding of no costs mandated by the
state pursuant to Section 17556.
(iii) Declarations describing new activities performed to
implement specific provisions of the test claim statute or executive
order alleged to impose a reimbursable state-mandated program.
(F) Specific references shall be made to chapters, articles,
sections, or page numbers that are alleged to impose or not impose a
reimbursable state-mandated program.
(2) Require that a request for the adoption of a new test claim
decision be signed at the end of the document, under penalty of
perjury, by the requester or its authorized representative, along
with a declaration that the request is true and complete to the best
of the declarant's personal knowledge, information, or belief. The
procedures shall also require that the date of signing, the declarant'
s title, address, telephone number, facsimile machine telephone
number, and electronic mail address be included.
(3) Provide that the commission shall return a submitted request
that is incomplete to the requester and allow the requester to remedy
the deficiencies. The procedures shall also provide that the
commission may disallow the original filing if a complete request is
not received by the commission within 30 calendar days from the date
that the incomplete request was returned to the requester.
(4) Establish a two-step hearing process to consider requests for
adoption of a new test claim decision pursuant to this section. As
the first step, the commission shall conduct a hearing to determine
if the requester has made a showing that the state's liability
pursuant to subdivision (a) of Section 6 of Article XIII B of the
California Constitution has been modified based on a subsequent
change in law. If the commission determines that the requester has
made this showing, then pursuant to the commission's authority in
subdivision (b) of this section, the commission shall notice the
request for a hearing to determine if a new test claim decision shall
be adopted to supersede the previously adopted test claim decision.
(5) Provide for presentation of evidence and legal argument at the
hearings by the requester, interested parties, the Department of
Finance, the Controller, any other affected state agency, and
interested persons.
(6) Permit a hearing to be postponed at the request of any party,
without prejudice, until the next scheduled hearing.
(e) To implement the procedures described in subdivision (d), the
commission shall initially adopt regulations as emergency regulations
and, for purposes of Section 11349.6, the adoption of the
regulations shall be considered by the Office of Administrative Law
to be necessary for the immediate preservation of the public peace,
health and safety, and general welfare. Notwithstanding subdivision
(e) of Section 11346.1, the regulations shall be repealed within 180
days after their effective date, unless the commission complies with
Chapter 3.5 (commencing with Section 11340) of Part 1 as provided in
subdivision (e) of Section 11346.1.
(f) A request for adoption of a new test claim decision shall be
filed on or before June 30 following a fiscal year in order to
establish eligibility for reimbursement or loss of reimbursement for
that fiscal year.
(g) The commission shall notify interested parties, the
Controller, the Department of Finance, affected state agencies, and
the Legislative Analyst of any complete request for the adoption of a
new test claim decision that the commission receives.
(h) If the commission determines that the requester has made a
showing that the state's liability pursuant to subdivision (a) of
Section 6 of Article XIII B of the California Constitution has been
modified based on a subsequent change in law, and the commission
notices the request for a hearing to determine whether a new test
claim decision shall be adopted that supersedes a prior test claim
decision, the Controller shall notify eligible claimants that the
request has been filed with the commission and that the original test
claim decision may be superseded by a new decision adopted by the
commission. The notification may be included in the next set of
claiming instructions issued to eligible claimants.
(i) If the commission adopts a new test claim decision that
supersedes the previously adopted test claim decision, the commission
shall adopt new parameters and guidelines or amend existing
parameters and guidelines or reasonable reimbursement methodology
pursuant to Sections 17557, 17557.1, and 17557.2.
(j) Any new parameters and guidelines adopted or amendments made
to existing parameters and guidelines or a reasonable reimbursement
methodology shall conform to the new test claim decision adopted by
the commission.
(k) The Controller shall follow the procedures in Sections 17558,
17558.5, 17560, 17561, and 17561.5, as applicable, for a new test
claim decision adopted by the commission pursuant to this section.
(l) If the commission adopts a new test claim decision that will
result in reimbursement pursuant to Section 6 of Article XIII B of
the California Constitution because a cost is a cost mandated by the
state, as defined in Section 17514, the commission shall determine
the amount to be subvened to local agencies and school districts by
adopting a new statewide cost estimate pursuant to Section 17557.
(m) In addition to the reports required pursuant to Sections 17600
and 17601, the commission shall notify the Legislature within 30
days of adopting a new test claim decision that supersedes a prior
test claim decision and determining the amount to be subvened to
local agencies and school districts for reimbursement pursuant to
this section.
SEC. 34. Section 17570.1 is added to the Government Code, to read:
17570.1. As part of its review and consideration pursuant to
Sections 17581 and 17581.5, the Legislature may, by statute, request
that the Department of Finance consider exercising its authority
pursuant to subdivision (c) of Section 17570.
SEC. 45. Section 50199.9 of the Health and Safety Code is amended
to read:
50199.9. (a) The committee shall establish and charge fees which
it determines are reasonably sufficient to cover all of the costs of
the committee in carrying out its responsibilities under this
chapter. The Tax Credit Allocation Fee Account is hereby established
in the State Treasury. The fees shall be deposited by the committee
in the Tax Credit Allocation Fee Account and shall be available, upon
appropriation by the Legislature, to the committee for the purpose
of covering all of those costs, except that fees may be shared, in an
amount determined by the committee, with any state or local agency
that assists the committee in performing its duties.
(b) Funds deposited in the Tax Credit Allocation Fee Account are
continuously appropriated without regard to fiscal year for purposes
of sharing with state and local agencies pursuant to subdivision (a).
(c) Until the time that sufficient fee revenue is received by the
committee, the committee may borrow any money as may be required for
the purpose of meeting necessary expenses of the operation of the
committee, not to exceed the amount appropriated. Any loan made to
the committee pursuant to this subdivision shall be repayable solely
from moneys appropriated to the committee from the Tax Credit
Allocation Fee Account and shall not constitute a general obligation
for which the faith and credit of the state are pledged.
(d) There shall be established a subaccount within the Tax Credit
Allocation Fee Account named the Occupancy Compliance Monitoring
Account.
(e) Fees collected for the purpose of paying the costs of
monitoring projects with allocations of tax credits for compliance
with federal and state law, as required by Section 42(m) of the
federal Internal Revenue Code, and Section 50199.15, shall be
deposited in the Occupancy Compliance Monitoring Account to be used
solely for this purpose. Any performance deposits forfeited to the
committee shall be deposited in the Occupancy Compliance Monitoring
Account.
(f) Notwithstanding any other law, the Controller may use the fees
deposited in the accounts established by this section for daily cash
flow loans to the General Fund or the General Cash Revolving Fund,
as provided in Sections 16310 and 16381 of the Government Code.
SEC. 46. Section 62.9 of the Labor Code is amended to read:
62.9. (a) (1) The director shall levy and collect assessments
from employers in accordance with this section. The total amount of
the assessment collected shall be the amount determined by the
director to be necessary to produce the revenue sufficient to fund
the programs specified by Section 62.7, except that the amount
assessed in any year for those purposes shall not exceed 50 percent
of the amounts appropriated from the General Fund for the support of
the occupational safety and health program for the 1993-94 fiscal
year, adjusted for inflation. The director also shall include in the
total assessment amount the department's costs for administering the
assessment, including the collections process and the cost of
reimbursing the Franchise Tax Board or another agency or department
for its cost of collection activities pursuant to subdivision (c).
(2) The insured employers and private sector self-insured
employers that, pursuant to subdivision (b), are subject to
assessment shall be assessed, respectively, on the basis of their
annual payroll subject to premium charges or their annual payroll
that would be subject to premium charges if the employer were
insured, as follows:
(A) An employer with a payroll of less than two hundred fifty
thousand dollars ($250,000) shall be assessed one hundred dollars
($100).
(B) An employer with a payroll of two hundred fifty thousand
dollars ($250,000) or more, but not more than five hundred thousand
dollars ($500,000), shall be assessed two hundred dollars ($200).
(C) An employer with a payroll of more than five hundred thousand
dollars ($500,000), but not more than seven hundred fifty thousand
dollars ($750,000), shall be assessed four hundred dollars ($400).
(D) An employer with a payroll of more than seven hundred fifty
thousand dollars ($750,000), but not more than one million dollars
($1,000,000), shall be assessed six hundred dollars ($600).
(E) An employer with a payroll of more than one million dollars
($1,000,000), but not more than one million five hundred thousand
dollars ($1,500,000), shall be assessed eight hundred dollars ($800).
(F) An employer with a payroll of more than one million five
hundred thousand dollars ($1,500,000), but not more than two million
dollars ($2,000,000), shall be assessed one thousand dollars
($1,000).
(G) An employer with a payroll of more than two million dollars
($2,000,000), but not more than two million five hundred thousand
dollars ($2,500,000), shall be assessed one thousand five hundred
dollars ($1,500).
(H) An employer with a payroll of more than two million five
hundred thousand dollars ($2,500,000), but not more than three
million five hundred thousand dollars ($3,500,000), shall be assessed
two thousand dollars ($2,000).
(I) An employer with a payroll of more than three million five
hundred thousand dollars ($3,500,000), but not more than four million
five hundred thousand dollars ($4,500,000), shall be assessed two
thousand five hundred dollars ($2,500).
(J) An employer with a payroll of more than four million five
hundred thousand dollars ($4,500,000), but not more than five million
five hundred thousand dollars ($5,500,000), shall be assessed three
thousand dollars ($3,000).
(K) An employer with a payroll of more than five million five
hundred thousand dollars ($5,500,000), but not more than seven
million dollars ($7,000,000), shall be assessed three thousand five
hundred dollars ($3,500).
(L) An employer with a payroll of more than seven million dollars
($7,000,000), but not more than twenty million dollars ($20,000,000),
shall be assessed six thousand seven hundred dollars ($6,700).
(M) An employer with a payroll of more than twenty million dollars
($20,000,000) shall be assessed ten thousand dollars ($10,000).
(b) (1) In the manner as specified by this section, the director
shall identify those insured employers having a workers' compensation
experience modification rating of 1.25 or more, and private sector
self-insured employers having an equivalent experience modification
rating of 1.25 or more as determined pursuant to subdivision (e).
(2) The assessment required by this section shall be levied
annually, on a calendar year basis, on those insured employers and
private sector self-insured employers, as identified pursuant to
paragraph (1), having the highest workers' compensation experience
modification ratings or equivalent experience modification ratings,
that the director determines to be required numerically to produce
the total amount of the assessment to be collected pursuant to
subdivision (a).
(c) The director shall collect the assessment from insured
employers as follows:
(1) Upon the request of the director, the Department of Insurance
shall direct the licensed rating organization designated as the
department's statistical agent to provide to the director, for
purposes of subdivision (b), a list of all insured employers having a
workers' compensation experience rating modification of 1.25 or
more, according to the organization's records at the time the list is
requested, for policies commencing the year preceding the year in
which the assessment is to be collected.
(2) The director shall determine the annual payroll of each
insured employer subject to assessment from the payroll that was
reported to the licensed rating organization identified in paragraph
(1) for the most recent period for which one full year of payroll
information is available for all insured employers.
(3) On or before September 1 of each year, the director shall
determine each of the current insured employers subject to
assessment, and the amount of the total assessment for which each
insured employer is liable. The director immediately shall notify
each insured employer, in a format chosen by the insurer, of the
insured's obligation to submit payment of the assessment to the
director within 30 days after the date the billing was mailed, and
warn the insured of the penalties for failure to make timely and full
payment as provided by this subdivision.
(4) The director shall identify any insured employers that, within
30 days after the mailing of the billing notice, fail to pay, or
object to, their assessments. The director shall mail to each of
these employers a notice of delinquency and a notice of the intention
to assess penalties, advising that, if the assessment is not paid in
full within 15 days after the mailing of the notices, the director
will levy against the employer a penalty equal to 25 percent of the
employer's assessment, and will refer the assessment and penalty to
the Franchise Tax Board or another agency or department for
collection. The notices required by this paragraph shall be sent by
United States first-class mail.
(5) If an assessment is not paid by an insured employer within 15
days after the mailing of the notices required by paragraph (4), the
director shall refer the delinquent assessment and the penalty to the
Franchise Tax Board, or another agency or department, as deemed
appropriate by the director, for collection pursuant to Section
19290.1 of the Revenue and Taxation Code, or Section 1900 of the
Unemployment Insurance Code.
(d) The director shall collect the assessment directly from
private sector self-insured employers. The failure of any private
sector self-insured employer to pay the assessment as billed
constitutes grounds for the suspension or termination of the employer'
s certificate to self-insure.
(e) The director shall adopt regulations implementing this section
that include provision for a method of determining experience
modification ratings for private sector self-insured employers that
is generally equivalent to the modification ratings that apply to
insured employers and is weighted by both severity and frequency.
(f) The director shall determine whether the amount collected
pursuant to any assessment exceeds expenditures, as described in
subdivision (a), for the current year and shall credit the amount of
any excess to any deficiency in the prior year's assessment or, if
there is no deficiency, against the assessment for the subsequent
year.
SEC. 47. Section 1771.3 of the Labor Code is amended to read:
1771.3. (a) (1) The State Public Works Enforcement Fund is hereby
created as a special fund in the State Treasury. Notwithstanding
Section 13340 of the Government Code, moneys in the fund shall be
continuously appropriated for the purposes the Department of
Industrial Relations' enforcement of prevailing wage requirements
applicable to public works pursuant to this chapter, and labor
compliance enforcement as set forth in subdivision (b) of Section
1771.55, and shall not be used or borrowed for any other purpose.
(2) The Director of Industrial Relations, with the approval of the
Director of Finance, shall determine and assess a fee on any
awarding body using funds derived from any bond issued by the state
to fund public works projects, in an amount not to exceed one-fourth
of 1 percent of the bond proceeds. The fee shall be set to cover the
expenses of the Department of Industrial Relations for administering
the prevailing wage requirements on public works projects using those
bond funds. The fee shall be payable by the board, commission,
department, agency, or official responsible for the allocation of
bond proceeds from the bond funds awarded to each project at the time
the funds are released to the project or other such time the
Department of Industrial Relations and the entity responsible for
allocation of the bond proceeds may agree. All fees collected
pursuant to this section shall be deposited in the State Public Works
Enforcement Fund, and shall be used only for enforcement of
prevailing wage requirements on projects using bond funds and other
projects for which awarding bodies pay into the fund. The
administration and enforcement of prevailing wage requirements is an
administrative expense associated with public works construction.
(b) The fee imposed by this section shall not apply to any
contract awarded prior to the effective date of regulations adopted
by the department pursuant to paragraph (2) of subdivision (b) of
Section 1771.55.
(c) The department shall report to the Legislature, not later than
March 1, 2011, on its administration of the State Public Works
Enforcement Fund, and the prevailing wage enforcement activities
undertaken by the department utilizing that funding.
SEC. 48. Section 1771.5 of the Labor Code is amended to read:
1771.5. (a) Notwithstanding Section 1771, an awarding body may
not require the payment of the general prevailing rate of per diem
wages or the general prevailing rate of per diem wages for holiday
and overtime work for any public works project of twenty-five
thousand dollars ($25,000) or less when the project is for
construction work, or for any public works project of fifteen
thousand dollars ($15,000) or less when the project is for
alteration, demolition, repair, or maintenance work, if the awarding
body elects to initiate and enforce a labor compliance program
pursuant to subdivision (b) for every public works project under the
authority of the awarding body.
(b) For purposes of this section, a labor compliance program shall
include, but not be limited to, the following requirements:
(1) All bid invitations and public works contracts shall contain
appropriate language concerning the requirements of this chapter.
(2) A prejob conference shall be conducted with the contractor and
subcontractors to discuss federal and state labor law requirements
applicable to the contract.
(3) Project contractors and subcontractors shall maintain and
furnish, at a designated time, a certified copy of each weekly
payroll containing a statement of compliance signed under penalty of
perjury.
(4) The awarding body shall review, and, if appropriate, audit
payroll records to verify compliance with this chapter.
(5) The awarding body shall withhold contract payments when
payroll records are delinquent or inadequate.
(6) The awarding body shall withhold contract payments equal to
the amount of underpayment and applicable penalties when, after
investigation, it is established that underpayment has occurred.
(c) For purposes of this chapter, "labor compliance program" means
a labor compliance program that is approved, as specified in state
regulations, by the Director of the Department of Industrial
Relations.
(d) For purposes of this chapter, the Director of the Department
of Industrial Relations may revoke the approval of a labor compliance
program in the manner specified in state regulations.
SEC. 49. Section 1771.7 of the Labor Code is amended to read:
1771.7. (a) (1) An awarding body that chooses to use funds
derived from either the Kindergarten-University Public Education
Facilities Bond Act of 2002 or the Kindergarten-University Public
Education Facilities Bond Act of 2004 for a public works project,
shall initiate and enforce, or contract with a third party to
initiate and enforce, a labor compliance program, as described in
subdivision (b) of Section 1771.5, with respect to that public works
project.
(2) If an awarding body described in paragraph (1) chooses to
contract with a third party to initiate and enforce a labor
compliance program for a project described in paragraph (1), that
third party shall not review the payroll records of its own employees
or the employees of its subcontractors, and the awarding body or an
independent third party shall review these payroll records for
purposes of the labor compliance program.
(b) This section applies to public works that commence on or after
April 1, 2003. For purposes of this subdivision, work performed
during the design and preconstruction phases of construction,
including, but not limited to, inspection and land surveying work,
does not constitute the commencement of a public work.
(c) (1) For purposes of this section, if any campus of the
California State University chooses to use the funds described in
subdivision (a), then the "awarding body" is the Chancellor of the
California State University. For purposes of this subdivision, if the
chancellor is required by subdivision (a) to initiate and enforce,
or to contract with a third party to initiate and enforce, the labor
compliance program described in that subdivision, then in addition to
the requirements imposed upon an awarding body by subdivision (b) of
Section 1771.5, the Chancellor of the California State University
shall review the payroll records described in paragraphs (3) and (4)
of subdivision (b) of Section 1771.5 on at least a monthly basis to
ensure the awarding body's compliance with the labor compliance
program.
(2) For purposes of this subdivision, if an awarding body
described in subdivision (a) is the University of California or any
campus of that university, and that awarding body is required by
subdivision (a) to initiate and enforce, or to contract with a third
party to initiate and enforce, the labor compliance program described
in that subdivision, then in addition to the requirements imposed
upon an awarding body by subdivision (b) of Section 1771.5, the
payroll records described in paragraphs (3) and (4) of subdivision
(b) of Section 1771.5 shall be reviewed on at least a monthly basis
to ensure the awarding body's compliance with the labor compliance
program.
(d) (1) An awarding body described in subdivision (a) shall make a
written finding that the awarding body has initiated and enforced,
or has contracted with a third party to initiate and enforce, the
labor compliance program described in subdivision (a).
(2) (A) If an awarding body described in subdivision (a) is a
school district, the governing body of that district shall transmit
to the State Allocation Board, in the manner determined by that
board, a copy of the finding described in paragraph (1).
(B) The State Allocation Board shall not release the funds
described in subdivision (a) to an awarding body that is a school
district until the State Allocation Board has received the written
finding described in paragraph (1).
(C) If the State Allocation Board conducts a postaward audit
procedure with respect to an award of the funds described in
subdivision (a) to an awarding body that is a school district, the
State Allocation Board shall verify, in the manner determined by that
board, that the school district has complied with the requirements
of this subdivision.
(3) If an awarding body described in subdivision (a) is a
community college district, the Chancellor of the California State
University, or the office of the President of the University of
California or any campus of the University of California, that
awarding body shall transmit, in the manner determined by the
Director of the Department of Industrial Relations, a copy of the
finding described in paragraph (1) to the director of that
department, or the director of any successor agency that is
responsible for the oversight of employee wage and employee work
hours laws.
(e) Notwithstanding Section 17070.63 of the Education Code, for
purposes of this act, the State Allocation Board shall increase the
grant amounts as described in Chapter 12.5 (commencing with Section
17070.10) of Part 10 of Division 1 of Title 1 of the Education Code
to accommodate the state's share of the increased costs of a new
construction or modernization project due to the initiation and
enforcement of the labor compliance program.
(f) This section shall not apply to a contract awarded on or after
the latter of the effective date of regulations adopted by the
Department of Industrial Relations pursuant to paragraph (2) of
subdivision (b) of Section 1771.55 or the effective date of the fees
adopted by the department pursuant to Section 1771.75.
SEC. 50. Section 1771.75 of the Labor Code is amended to read:
1771.75. (a) An awarding body that chooses to use funds derived
from either the Kindergarten-University Public Education Facilities
Bond Act of 2002 or the Kindergarten-University Public Education
Facilities Bond Act of 2004 for a public works project, shall pay a
fee to the Department of Industrial Relations, in an amount that the
department shall establish, and as it may from time to time amend, in
an amount not to exceed one-fourth of 1 percent of the bond
proceeds, sufficient to support the department's costs in ensuring
compliance with and enforcing prevailing wage requirements on the
project, and labor compliance enforcement as set forth in subdivision
(b) of Section 1771.55. All fees collected pursuant to this
subdivision shall be deposited in the State Public Works Enforcement
Fund created by Section 1771.3, and shall be used only for
enforcement of prevailing wage requirements on those projects. The
department may waive the fee set forth in this section for an
awarding body that has previously been granted approval by the
director to initiate and operate a labor compliance program on the
awarding body's projects, and requests to continue to operate that
labor compliance program on its projects in lieu of labor compliance
by the department pursuant to subdivision (b) of Section 1771.55.
This fee shall not be waived for an awarding body that contracts with
a third party to initiate and enforce labor compliance programs on
the awarding body's projects.
(b) This section applies to public works that commence on or after
April 1, 2003. For purposes of this subdivision, work performed
during the design and preconstruction phases of construction,
including, but not limited to, inspection and land surveying work,
does not constitute the commencement of a public work.
(c) (1) For purposes of this section, if any campus of the
California State University chooses to use the funds described in
subdivision (a), then the awarding body is the Chancellor of the
California State University and the chancellor is required by
subdivision (a) to pay a fee to the Department of Industrial
Relations.
(2) For purposes of this subdivision, if an awarding body
described in subdivision (a) is the University of California or any
campus of that university, and that awarding body is required by
subdivision (a) to pay a fee to the Department of Industrial
Relations, then the university shall review the payroll records on at
least a monthly basis to ensure the university's compliance with
prevailing wage obligations.
(d) The State Allocation Board shall notify the Department of
Industrial Relations of awarding bodies that are awarded funds
subject to the fee required by subdivision (a).
(e) Notwithstanding Section 17070.63 of the Education Code, for
purposes of this section, the State Allocation Board shall increase
the grant amounts as described in Chapter 12.5 (commencing with
Section 17070.10) of Part 10 of Division 1 of Title 1 of the
Education Code to accommodate the state's share of the increased
costs of a new construction or modernization project due to the fee
required to be paid to the Department of Industrial Relations to
ensure compliance with and enforcement of prevailing wage laws on the
project. The State Allocation Board shall pay the fee to the
Department of Industrial Relations at the time bond funds are
released to the awarding body. All fees collected pursuant to this
subdivision shall be deposited in the State Public Works Enforcement
Fund created by Section 1771.3.
(f) This section shall only apply to a contract awarded on or
after both the effective date of the department's adoption of the fee
set forth in subdivision (a) and of regulations pursuant to
paragraph (2) of subdivision (b) of Section 1771.55.
SEC. 51. Section 1771.8 of the Labor Code is amended to read:
1771.8. (a) The body awarding any contract for a public works
project financed in any part with funds made available by the Water
Security, Clean Drinking Water, Coastal and Beach Protection Act of
2002 (Division 26.5 (commencing with Section 79500) of the Water
Code) shall adopt and enforce, or contract with a third party to
adopt and enforce, a labor compliance program pursuant to subdivision
(b) of Section 1771.5 for application to that public works project.
(b) This section shall become operative only if the Water
Security, Clean Drinking Water, Coastal and Beach Protection Act of
2002 (Division 26.5 (commencing with Section 79500) of the Water
Code) is approved by the voters at the November 5, 2002, statewide
general election.
(c) This section shall not apply to a contract awarded on or after
the latter of the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to paragraph (2) of
subdivision (b) of Section 1771.55 or the effective date of the fees
adopted by the department pursuant to Section 1771.85.
SEC. 52. Section 1777.5 of the Labor Code is amended to read:
1777.5. (a) Nothing in this chapter shall prevent the employment
of properly registered apprentices upon public works.
(b) Every apprentice employed upon public works shall be paid the
prevailing rate of per diem wages for apprentices in the trade to
which he or she is registered and shall be employed only at the work
of the craft or trade to which he or she is registered.
(c) Only apprentices, as defined in Section 3077, who are in
training under apprenticeship standards that have been approved by
the Chief of the Division of Apprenticeship Standards and who are
parties to written apprentice agreements under Chapter 4 (commencing
with Section 3070) of Division 3 are eligible to be employed at the
apprentice wage rate on public works. The employment and training of
each apprentice shall be in accordance with either of the following:
(1) The apprenticeship standards and apprentice agreements under
which he or she is training.
(2) The rules and regulations of the California Apprenticeship
Council.
(d) When the contractor to whom the contract is awarded by the
state or any political subdivision, in performing any of the work
under the contract, employs workers in any apprenticeable craft or
trade, the contractor shall employ apprentices in at least the ratio
set forth in this section and may apply to any apprenticeship program
in the craft or trade that can provide apprentices to the site of
the public work for a certificate approving the contractor under the
apprenticeship standards for the employment and training of
apprentices in the area or industry affected. However, the decision
of the apprenticeship program to approve or deny a certificate shall
be subject to review by the Administrator of Apprenticeship. The
apprenticeship program or programs, upon approving the contractor,
shall arrange for the dispatch of apprentices to the contractor. A
contractor covered by an apprenticeship program's standards shall not
be required to submit any additional application in order to include
additional public works contracts under that program.
"Apprenticeable craft or trade," as used in this section, means a
craft or trade determined as an apprenticeable occupation in
accordance with rules and regulations prescribed by the California
Apprenticeship Council. As used in this section, "contractor"
includes any subcontractor under a contractor who performs any public
works not excluded by subdivision (o).
(e) Prior to commencing work on a contract for public works, every
contractor shall submit contract award information to an applicable
apprenticeship program that can supply apprentices to the site of the
public work. The information submitted shall include an estimate of
journeyman hours to be performed under the contract, the number of
apprentices proposed to be employed, and the approximate dates the
apprentices would be employed. A copy of this information shall also
be submitted to the awarding body if requested by the awarding body.
Within 60 days after concluding work on the contract, each contractor
and subcontractor shall submit to the awarding body, if requested,
and to the apprenticeship program a verified statement of the
journeyman and apprentice hours performed on the contract. The
information under this subdivision shall be public. The
apprenticeship programs shall retain this information for 12 months.
(f) The apprenticeship program that can supply apprentices to the
area of the site of the public work shall ensure equal employment and
affirmative action in apprenticeship for women and minorities.
(g) The ratio of work performed by apprentices to journeymen
employed in a particular craft or trade on the public work may be no
higher than the ratio stipulated in the apprenticeship standards
under which the apprenticeship program operates where the contractor
agrees to be bound by those standards, but, except as otherwise
provided in this section, in no case shall the ratio be less than one
hour of apprentice work for every five hours of journeyman work.
(h) This ratio of apprentice work to journeyman work shall apply
during any day or portion of a day when any journeyman is employed at
the jobsite and shall be computed on the basis of the hours worked
during the day by journeymen so employed. Any work performed by a
journeyman in excess of eight hours per day or 40 hours per week
shall not be used to calculate the ratio. The contractor shall employ
apprentices for the number of hours computed as above before the end
of the contract or, in the case of a subcontractor, before the end
of the subcontract. However, the contractor shall endeavor, to the
greatest extent possible, to employ apprentices during the same time
period that the journeymen in the same craft or trade are employed at
the jobsite. Where an hourly apprenticeship ratio is not feasible
for a particular craft or trade, the Chief of the Division of
Apprenticeship Standards, upon application of an apprenticeship
program, may order a minimum ratio of not less than one apprentice
for each five journeymen in a craft or trade classification.
(i) A contractor covered by this section that has agreed to be
covered by an apprenticeship program's standards upon the issuance of
the approval certificate, or that has been previously approved for
an apprenticeship program in the craft or trade, shall employ the
number of apprentices or the ratio of apprentices to journeymen
stipulated in the applicable apprenticeship standards, but in no
event less than the 1-to-5 ratio required by subdivision (g).
(j) Upon proper showing by a contractor that he or she employs
apprentices in a particular craft or trade in the state on all of his
or her contracts on an annual average of not less than one hour of
apprentice work for every five hours of labor performed by
journeymen, the Chief of the Division of Apprenticeship Standards may
grant a certificate exempting the contractor from the 1-to-5 hourly
ratio, as set forth in this section for that craft or trade.
(k) An apprenticeship program has the discretion to grant to a
participating contractor or contractor association a certificate,
which shall be subject to the approval of the Administrator of
Apprenticeship, exempting the contractor from the 1-to-5 ratio set
forth in this section when it finds that any one of the following
conditions is met:
(1) Unemployment for the previous three-month period in the area
exceeds an average of 15 percent.
(2) The number of apprentices in training in the area exceeds a
ratio of 1 to 5.
(3) There is a showing that the apprenticeable craft or trade is
replacing at least one-thirtieth of its journeymen annually through
apprenticeship training, either on a statewide basis or on a local
basis.
(4) Assignment of an apprentice to any work performed under a
public works contract would create a condition that would jeopardize
his or her life or the life, safety, or property of fellow employees
or the public at large, or the specific task to which the apprentice
is to be assigned is of a nature that training cannot be provided by
a journeyman.
(l) When an exemption is granted pursuant to subdivision (k) to an
organization that represents contractors in a specific trade from
the 1-to-5 ratio on a local or statewide basis, the member
contractors shall not be required to submit individual applications
for approval to local joint apprenticeship committees, if they are
already covered by the local apprenticeship standards.
(m) (1) A contractor to whom a contract is awarded, who, in
performing any of the work under the contract, employs journeymen or
apprentices in any apprenticeable craft or trade shall contribute to
the California Apprenticeship Council the same amount that the
director determines is the prevailing amount of apprenticeship
training contributions in the area of the public works site. A
contractor may take as a credit for payments to the council any
amounts paid by the contractor to an approved apprenticeship program
that can supply apprentices to the site of the public works project.
The contractor may add the amount of the contributions in computing
his or her bid for the contract.
(2) At the conclusion of the 2002-03 fiscal year and each fiscal
year thereafter, the California Apprenticeship Council shall
distribute training contributions received by the council under this
subdivision, less the expenses of the Division of Apprenticeship
Standards for administering this subdivision, by making grants to
approved apprenticeship programs for the purpose of training
apprentices. The funds shall be distributed as follows:
(A) If there is an approved multiemployer apprenticeship program
serving the same craft or trade and geographic area for which the
training contributions were made to the council, a grant to that
program shall be made.
(B) If there are two or more approved multiemployer apprenticeship
programs serving the same craft or trade and geographic area for
which the training contributions were made to the council, the grant
shall be divided among those programs based on the number of
apprentices registered in each program.
(C) All training contributions not distributed under subparagraphs
(A) and (B) shall be used to defray the future expenses of the
Division of Apprenticeship Standards.
(3) All training contributions received pursuant to this
subdivision shall be deposited in the Apprenticeship Training
Contribution Fund, which is hereby created in the State Treasury.
Upon appropriation by the Legislature, all money in the
Apprenticeship Training Contribution Fund shall be used for the
purpose of carrying out this subdivision and to pay the expenses of
the Division of Apprenticeship Standards.
(n) The body awarding the contract shall cause to be inserted in
the contract stipulations to effectuate this section. The
stipulations shall fix the responsibility of compliance with this
section for all apprenticeable occupations with the prime contractor.
(o) This section does not apply to contracts of general
contractors or to contracts of specialty contractors not bidding for
work through a general or prime contractor when the contracts of
general contractors or those specialty contractors involve less than
thirty thousand dollars ($30,000).
(p) All decisions of an apprenticeship program under this section
are subject to Section 3081.
SEC. 53. Section 11105.8 is added to the Penal Code, to read:
11105.8. A nonprofit organization that is funded pursuant to
subsection (a) of Section 3796h of Title 42 of the United States Code
may be granted access to local, state, or federal criminal justice
system information available to law enforcement agencies, including
access to the California Law Enforcement Telecommunications System,
provided that the nonprofit agency meets all other federal and state
requirements for access to that information or system.
SEC. 54. Section 5164 of the Public Resources Code is amended to
read:
5164. (a) (1) A county, city, city and county, or special
district shall not hire a person for employment, or hire a volunteer
to perform services, at a county, city, city and county, or special
district operated park, playground, recreational center, or beach
used for recreational purposes, in a position having supervisory or
disciplinary authority over a minor, if that person has been
convicted of an offense specified in paragraph (2).
(2) (A) A violation or attempted violation of Section 220, 261.5,
262, 273a, 273d, or 273.5 of the Penal Code, or a sex offense listed
in Section 290 of the Penal Code, except for the offense specified in
subdivision (d) of Section 243.4 of the Penal Code.
(B) A felony or misdemeanor conviction specified in subparagraph
(C) within 10 years of the date of the employer's request.
(C) A felony conviction that is over 10 years old, if the subject
of the request was incarcerated within 10 years of the employer's
request, for a violation or attempted violation of an offense
specified in Chapter 3 (commencing with Section 207) of Title 8 of
Part 1 of the Penal Code, Section 211 or 215 of the Penal Code,
wherein it is charged and proved that the defendant personally used a
deadly or dangerous weapon, as provided in subdivision (b) of
Section 12022 of the Penal Code, in the commission of that offense,
Section 217.1 of the Penal Code, Section 236 of the Penal Code, an
offense specified in Chapter 9 (commencing with Section 240) of Title
8 of Part 1 of the Penal Code, or an offense specified in
subdivision (c) of Section 667.5 of the Penal Code, provided that a
record of a misdemeanor conviction shall not be transmitted to the
requester unless the subject of the request has a total of three or
more misdemeanor convictions, or a combined total of three or more
misdemeanor and felony convictions, for violations listed in this
section within the 10-year period immediately preceding the employer'
s request or has been incarcerated for any of those convictions
within the preceding 10 years.
(b) (1) To give effect to this section, a county, city, city and
county, or special district shall require each such prospective
employee or volunteer to complete an application that inquires as to
whether or not that individual has been convicted of an offense
specified in subdivision (a). The county, city, city and county, or
special district shall screen, pursuant to Section 11105.3 of the
Penal Code, any such prospective employee or volunteer, having
supervisory or disciplinary authority over a minor, for that person's
criminal background.
(2) A local agency request for Department of Justice records
pursuant to this subdivision shall include the prospective employee's
or volunteer's fingerprints, which may be taken by the local agency,
and any other data specified by the Department of Justice. The
request shall be made on a form approved by the Department of
Justice. A fee shall not be charged to the local agency for
requesting the records of a prospective volunteer pursuant to this
subdivision.
(3) A county, city, city and county, or special district may
charge a prospective employee or volunteer described in subdivision
(a) a fee to cover all of the county, city, city and county, or
special district's costs attributable to the requirements imposed by
this section.
SEC. 55. Section 11006 of the Revenue and Taxation Code is amended
to read:
11006. (a) Commencing on December 31, 2001, the Controller, in
consultation with the Department of Motor Vehicles and the Department
of Finance, shall recalculate the distribution of the amount of
motor vehicle license fees paid by commercial vehicles that are
subject to Section 9400.1 of the Vehicle Code and transfer the
following sums from the General Fund in the following order:
(1) An amount sufficient to cover all allocations and interception
of funds associated with all pledges, liens, encumbrances and
priorities as set forth in Section 25350.6 of the Government Code,
which shall be transferred so as to pay that allocation.
(2) An amount sufficient to continue allocations to the State
Treasury to the credit of the Vehicle License Fee Account of the
Local Revenue Fund, as established pursuant to Section 17600 of the
Welfare and Institutions Code, which would be in the same amount had
the amendments made by the act that added this section to Section
10752 of the Revenue and Taxation Code not been enacted, which shall
be deposited in the State Treasury to the credit of the Vehicle
License Fee Account of the Local Revenue Fund, as established
pursuant to Section 17600 of the Welfare and Institutions Code. This
paragraph shall be inoperative commencing with the 2010-11 fiscal
year.
(3) An amount sufficient to continue allocations to the State
Treasury to the credit of the Vehicle License Fee Growth Account of
the Local Revenue Fund, as established pursuant to Section 17600 of
the Welfare and Institutions Code, which would be in the same amount
had the amendments made by the act that added this section to Section
10752 of the Revenue and Taxation Code not been enacted, which shall
be deposited in the State Treasury to the credit of the Vehicle
License Fee Growth Account of the Local Revenue Fund, as established
pursuant to Section 17600 of the Welfare and Institutions Code.
(4) An amount sufficient to cover all allocations and interception
of funds associated with all pledges, liens, encumbrances and
priorities, other than those referred to in paragraph (1), as set
forth in Section 25350 and following of, Section 53584 and following
of, 5450 and following of, the Government Code, which shall be
transferred so as to pay those allocations.
(b) The balance of any funds not otherwise allocated pursuant to
subdivision (a) shall continue to be deposited to the credit of the
Motor Vehicle License Fee Account in the Transportation Tax Fund and
allocated to each city, county, and city and county as otherwise
provided by law.
(c) In enacting paragraphs (1) and (4) of subdivision (a), the
Legislature declares that paragraphs (1) and (4) of subdivision (a),
shall not be construed to obligate the State of California to make
any payment to a city, city and county, or county from the Motor
Vehicle License Fee Account in the Transportation Tax Fund in any
amount or pursuant to any particular allocation formula, or to make
any other payment to a city, city and county, or county, including,
but not limited to, any payment in satisfaction of any debt or
liability incurred or so guaranteed if the State of California had
not so bound itself prior to the enactment of this section.
(d) Notwithstanding subdivisions (a) and (b), on and after July 1,
2010, that amount equal to the amount that would have been
transferred pursuant to paragraph (2) of subdivision (a) had the act
adding this subdivision not been enacted, shall not be transferred
from the General Fund.
SEC. 56. Section 19558 of the Revenue and Taxation Code is amended
to read:
19558. (a) Subject to the limitations of this section and federal
law, the Franchise Tax Board may provide the Public Employees'
Retirement System with the names and addresses or other
identification or location information from income tax returns or
other records required under Part 10 (commencing with Section 17001)
or this part, for both of the following:
(1) Solely for the purposes of disbursing unclaimed benefits
pursuant to Chapter 13 (commencing with Section 21250) and Chapter 14
(commencing with Section 21490) of Part 3 of Division 5 of Title 2
of the Government Code and distributing member statements on an
annual basis.
(2)
Until June 30, 2016, solely for the purpose of filing required data
pursuant to the Early Retiree Reinsurance Program (Sec. 1102, Public
Law 111-148; 42 U.S.C. Sec. 18002), Part 149 of Title 45 of the Code
of Federal Regulations, and related departmental directives.
(b) Neither the Public Employees' Retirement System, nor its
agents, nor any of its current or former officers or employees, shall
disclose or use any information obtained pursuant to this section
except as provided in this section. Any disclosure not authorized by
this section is a misdemeanor.
(c) The Franchise Tax Board may from time to time review the use
of information provided to the Public Employees' Retirement System
pursuant to this section and the Public Employees' Retirement System
shall provide the Franchise Tax Board with access for that purpose.
The reviews shall be limited to ensuring that the Public Employees'
Retirement System uses the information provided by the Franchise Tax
Board only in the manner specified in subdivision (a). The Franchise
Tax Board shall report all findings to the Public Employees'
Retirement System.
SEC. 57. Section 1088 of the Unemployment Insurance Code is
amended to read:
1088. (a) (1) Each employer shall file with the director within
the time required by subdivision (a) or (d) of Section 1110 for
payment of employer contributions, a report of contributions, a
quarterly return, and a report of wages paid to his or her workers in
the form and containing any information as the director prescribes.
An electronic funds transfer of contributions pursuant to subdivision
(f) of Section 1110 shall satisfy the requirement for a report of
contributions. The quarterly return shall include the total amount of
wages, employer contributions required under Sections 976 and 976.6,
worker contributions required under Section 984, the amounts
required to be withheld under Section 13020, or withheld under
Section 13028, and any other information as the director shall
prescribe. The report of wages shall include individual amounts
required to be withheld under Section 13020 or withheld under Section
13028.
(2) (A) In order to enhance efforts to reduce tax fraud and to
reduce the personal income tax reporting burden, effective January 1,
1997, the report of wages shall also include the full first name of
the employee and total wages, as defined in Section 13009, paid to
each employee. This paragraph shall apply to reports of wages for all
periods ending on or before December 31, 1999.
(B) For all periods beginning on or after January 1, 2000, the
report of wages shall also include total wages subject to personal
income tax, as defined in Section 13009.5, paid to each employee.
(b) Each employer shall file with the director within the time
required by subdivision (b) or (d) of Section 1110 for payment of
worker contributions, a report of contributions containing the
employer's business name, address, and account number, the total
amount of worker contributions due, and any other information as the
director shall prescribe. The director shall prescribe the form for
the report of contributions. An electronic funds transfer of
contributions pursuant to subdivision (f) of Section 1110 shall
satisfy the requirement for a report of contributions.
(c) In addition to the report of contributions, quarterly return,
and report of wages required by employers under subdivision (a), an
individual who has elected coverage under subdivision (a) of Section
708 is also required to file a separate report of contributions, and
quarterly return, subject to Part 2 (commencing with Section 2601).
(d) Any employer making an election under subdivision (d) of
Section 1110 shall submit the report of wages described in
subdivision (a), within the time required for submitting employer
contributions under subdivision (a) of Section 1110.
(e) (1) In addition to the report of contributions, quarterly
return, and report of wages described in subdivision (a), each
employer shall file with the director an annual reconciliation return
showing the total amount of wages, employer contributions required
under Sections 976 and 976.6, worker contributions required under
Section 984, the amounts required to be withheld under Section 13020
or withheld under Section 13028, and any other information as the
director shall prescribe. This annual reconciliation return shall be
due on the first day of January following the close of the prior
calendar year and shall become delinquent if not filed on or before
the last day of that month.
(2) This subdivision shall not apply to individuals electing
coverage under Section 708 or 708.5 or employers electing financing
under Section 821.
(3) The requirement to file the annual reconciliation return for
the prior calendar year under this subdivision shall not apply to the
2012 calendar year and thereafter.
(f) For purposes of making a report of wages under subdivision
(a), employers who are required under Section 6011 of the Internal
Revenue Code and authorized regulations thereunder to file magnetic
media returns, shall, within 90 days of becoming subject to this
requirement, do one of the following:
(1) Submit a magnetic media format to the department for approval,
and upon receiving approval from the department, submit any
subsequent reports of wages on magnetic media.
(2) Establish to the satisfaction of the director that there is a
lack of automation, a severe economic hardship, a current exemption
from submitting magnetic media information returns for federal
purposes, or other good cause for not complying with the provisions
of this subdivision. Approved waivers shall be valid for six months
or longer, at the discretion of the director.
(g) The Franchise Tax Board shall be allowed access to the
information filed with the department pursuant to this section.
(h) The requirement in subdivision (a) to file a quarterly return
shall begin with the first calendar quarter of the 2011 calendar
year.
SEC. 58. Section 1112.5 of the Unemployment Insurance Code is
amended to read:
1112.5. (a) Any employer who without good cause fails to file the
return and reports required by subdivision (a) of Section 1088 and
subdivision (a) of Section 13021 within 60 days of the time required
under subdivision (a) of Section 1110 shall pay a penalty of 10
percent of the amount of contributions and personal income tax
withholding required by this report. This penalty shall be in
addition to the penalties required by Sections 1112 and 1126.
(b) For purposes of subdivision (a), the amount of contributions
and personal income tax required by the report of contributions shall
be reduced by the amount of any contributions and personal income
tax paid on or before the prescribed payment dates.
SEC. 59. Section 1113.1 of the Unemployment Insurance Code is
amended to read:
1113.1. An employer who, through an error caused by excusable
neglect, makes an underpayment of the amount due on a report of
contributions pursuant to subdivision (b) of Section 1088 shall not
be liable for penalty or interest under Sections 1112, 1113, 1127 or
1129 if proper adjustment is made at the time of the filing of the
quarterly report of contributions and quarterly return, for the same
calendar quarter under subdivision (a) of Section 1088 and an
explanation of the error is attached to the report or return.
SEC. 60. Section 1275 of the Unemployment Insurance Code is
amended to read:
1275. (a) Unemployment compensation benefit award computations
shall be based on wages paid in the base period. "Base period" means:
for benefit years beginning in October, November, or December, the
four calendar quarters ended in the next preceding month of June; for
benefit years beginning in January, February, or March, the four
calendar quarters ended in the next preceding month of September; for
benefit years beginning in April, May, or June, the four calendar
quarters ended in the next preceding month of December; for benefit
years beginning in July, August, or September, the four calendar
quarters ended with the next preceding month of March. Wages used in
the determination of benefits payable to an individual during any
benefit year may not be used in determining that individual's
benefits in any subsequent benefit year.
(b) For any new claim filed on or after September 3, 2011, or
earlier if the department implements the technical changes necessary
to establish claims under the alternate base period, as specified in
subdivision (c), if an individual cannot establish a claim under
subdivision (a), then "base period" means: for benefit years
beginning in October, November, or December, the four calendar
quarters ended in the next preceding month of September; for benefit
years beginning in January, February, or March, the four calendar
quarters ended in the next preceding month of December; for benefit
years beginning in April, May, or June, the four calendar quarters
ended in the next preceding month of March; for benefit years
beginning in July, August, or September, the four calendar quarters
ended in the next preceding month of June. As provided in Section
1280, the quarter with the highest wages shall be used to determine
the individual's weekly benefit amount. Wages used in the
determination of benefits payable to an individual during any benefit
year may not be used in determining that individual's benefits in
any subsequent benefit year.
(c) The department shall implement the technical changes necessary
to establish claims under the alternate base period specified in
subdivision (b) as soon as possible, but no later than September 3,
2011.
SEC. 61. Article 9 (commencing with Section 1900) is added to
Chapter 7 of Part 1 of Division 1 of the Unemployment Insurance Code,
to read:
Article 9. Penalty Assessments
1900. (a) (1) Notwithstanding any other law, the Department of
Industrial Relations may enter into an agreement with the department
that provides for the transfer of all or part of the responsibility
from the Department of Industrial Relations, or any office or
division within that department, to the department for the collection
of penalty assessments including, but not limited to, delinquent
fees, wages, penalties, judgments, assessments, costs, citations,
debts, and any interest thereon, arising out of the enforcement of
any law within the jurisdiction of the Department of Industrial
Relations or any office or division within. The agreement shall
specify the terms under which those items and interest shall become
subject to collection by the department.
(2) The agreement shall also prescribe a procedure for the
Department of Industrial Relations to reimburse the department for
the costs of collection, and provide that the amount of any
reimbursement shall not exceed the actual costs of collection,
including court costs and reasonable attorney's fees. Wherever
possible the collection costs shall be borne by the debtor.
(b) For amounts referred for collection under subdivision (a),
interest shall accrue at the adjusted annual rate and by the method
established pursuant to Section 685.010 of the Code of Civil
Procedure from and after the date of notice until paid.
(c) Amounts referred for collection under subdivision (a) shall be
treated as final liabilities and due and payable to the State of
California and may be collected from the debtor by the department in
any manner authorized under the law for collection of any amount
imposed under this division. Any information, information sources,
enforcement remedies, and capabilities available to the Department of
Industrial Relations shall be available to the department to be used
in conjunction with, or independent of, the information, information
sources, remedies, and capabilities available to the department for
purposes of administering this code.
(d) The provisions of Article 8 (commencing with Section 1870) and
Section 1110.1 shall not apply to amounts referred for collection
under subdivision (a).
SEC. 62. Section 13021 of the Unemployment Insurance Code is
amended to read:
13021. (a) Every employer required to withhold any tax under
Section 13020 shall for each calendar quarter, whether or not wages
or payments are paid in the quarter, file a withholding report, a
quarterly return, as prescribed in subdivision (a) of Section 1088,
and a report of wages in a form prescribed by the department, and pay
over the taxes so required to be withheld. The report of wages shall
include individual amounts required to be withheld under Section
13020 or withheld under Section 13028. Except as provided in
subdivisions (c) and (d), the employer shall file a withholding
report, a quarterly return, as prescribed in subdivision (a) of
Section 1088, and a report of wages, and remit the total amount of
income taxes withheld during the calendar quarter on or before the
last day of the month following the close of the calendar quarter.
(b) Every employer electing to file a single annual return under
subdivision (d) of Section 1110 shall report and pay any taxes
withheld under Section 13020 on an annual basis within the time
specified in subdivision (d) of Section 1110.
(c) (1) Effective January 1, 1995, whenever an employer is
required, for federal income tax purposes, to remit the total amount
of withheld federal income tax in accordance with Section 6302 of the
Internal Revenue Code and regulations thereunder, and the
accumulated amount of state income tax withheld is more than five
hundred dollars ($500), the employer shall remit the total amount of
income tax withheld for state income tax purposes within the number
of banking days as specified for withheld federal income taxes by
Section 6302 of the Internal Revenue Code, and regulations
thereunder.
(2) Effective January 1, 1996, the five hundred dollar ($500)
amount referred to in paragraph (1) shall be adjusted annually as
follows, based on the annual average rate of interest earned on the
Pooled Money Investment Fund as of June 30 in the prior fiscal year:
Average Rate of Interest
Greater than or equal to 9 percent: $ 75
Less than 9 percent, but greater than
or equal
to 250
7 percent:
Less than 7 percent, but greater than
or equal
to 400
4 percent:
Less than 4 percent: 500
(d) (1) Notwithstanding subdivisions (a) and (c), for calendar
years beginning prior to January 1, 1995, if in the 12-month period
ending June 30 of the prior year the cumulative average payment made
pursuant to this division or Section 1110, for eight-month periods,
as defined under Section 6302 of the Internal Revenue Code and
regulations thereunder, was fifty thousand dollars ($50,000) or more,
the employer shall remit the total amount of income tax withheld
within three banking days following the close of each eight-month
period, as defined by Section 6302 of the Internal Revenue Code and
regulations thereunder. For purposes of this subdivision, payment
shall be made by electronic funds transfer in accordance with Section
13021.5, for one calendar year beginning on January 1. Payment is
deemed complete on the date the electronic funds transfer is
initiated if settlement to the state's demand account occurs on or
before the banking day following the date the transfer is initiated.
If settlement to the state's demand account does not occur on or
before the banking day following the date the transfer is initiated,
payment is deemed complete on the date settlement occurs. The
department shall, on or before October 31 of the prior year, notify
all employers required to make payment by electronic funds transfer
of these requirements.
(2) Notwithstanding subdivisions (a) and (c), for calendar years
beginning on or after January 1, 1995, if in the 12-month period
ending June 30 of the prior year, the cumulative average payment made
pursuant to this division or Section 1110 for any deposit periods,
as defined under Section 6302 of the Internal Revenue Code and
regulations thereunder, was twenty thousand dollars ($20,000) or
more, the employer shall remit the total amount of income tax
withheld within the number of banking days as specified for federal
income taxes by Section 6302 of the Internal Revenue Code and
regulations thereunder. For purposes of this subdivision, payment
shall be made by electronic funds transfer in accordance with Section
13021.5, for one calendar year beginning on January 1. Payment is
deemed complete on the date the electronic funds transfer is
initiated if settlement to the state's demand account occurs on or
before the banking day following the date the transfer is initiated.
If settlement to the state's demand account does not occur on or
before the banking day following the date the transfer is initiated,
payment is deemed complete on the date settlement occurs. The
department shall, on or before October 31 of the prior year, notify
all employers required by this paragraph to make payments by
electronic funds transfer of these requirements.
(3) Notwithstanding paragraph (2), effective January 1, 1995,
electronic funds transfer payments that are subject to the one-day
deposit rule, as defined by Section 6302 of the Internal Revenue Code
and regulations thereunder, shall be deemed timely if the payment
settles to the state's demand account within three banking days after
the date the employer meets the threshold for the one-day deposit
rule.
(4) Any taxpayer required to remit payments pursuant to paragraphs
(1) and (2) may request from the department a waiver of those
requirements. The department may grant a waiver only if it determines
that the particular amounts paid in excess of fifty thousand dollars
($50,000) or twenty thousand dollars ($20,000), as stated in
paragraphs (1) and (2), respectively, were the result of an
unprecedented occurrence for that employer, and were not
representative of the employer's cumulative average payment in prior
years.
(5) Any state agency required to remit payments pursuant to
paragraphs (1) and (2) may request a waiver of those requirements
from the department. The department may grant a waiver if it
determines that there will not be a negative impact on the interest
earnings of the General Fund. If there is a negative impact to the
General Fund, the department may grant a waiver if the requesting
state agency follows procedures designated by the department to
mitigate the impact to the General Fund.
(e) Any employer not required to make payment pursuant to
subdivision (d) of this section may elect to make payment by
electronic funds transfer in accordance with Section 13021.5 under
the following conditions:
(1) The election shall be made in a form, and shall contain
information, as prescribed by the director, and shall be subject to
approval by the department.
(2) If approved, the election shall be effective on the date
specified in the notification to the employer of approval.
(3) The election shall be operative from the date specified in the
notification of approval, and shall continue in effect until
terminated by the employer or the department.
(4) Funds remitted by electronic funds transfer pursuant to this
subdivision shall be deemed complete in accordance with subdivision
(d) or as deemed appropriate by the director to encourage use of this
payment method.
(f) Notwithstanding Section 1112, no interest or penalties shall
be assessed against any employer who remits at least 95 percent of
the amount required by subdivision (c) or (d) if the failure to remit
the full amount is not willful and any remaining amount due is paid
with the next payment. The director may allow any employer to submit
the amounts due from multiple locations upon a showing that those
submissions are necessary to comply with subdivision (c) or (d).
(g) The department may, if it believes that action is necessary,
require any employer to make the report or return required by this
section and pay to it the tax deducted and withheld at any time, or
from time to time but no less frequently than provided for in
subdivision (a).
(h) Any employer required to withhold any tax and who is not
required to make payment under subdivision (c) shall remit the total
amount of income tax withheld during each month of each calendar
quarter, on or before the 15th day of the subsequent month if the
income tax withheld for any of the three months or, cumulatively for
two or more months, is three hundred fifty dollars ($350) or more.
(i) For purposes of subdivisions (a), (c), and (h), payment is
deemed complete when it is placed in a properly addressed envelope,
bearing the correct postage, and it is deposited in the United States
mail.
(j) (1) In addition to the withholding report, quarterly return,
and report of wages described in subdivision (a), each employer shall
file with the director an annual reconciliation return showing the
amount required to be withheld under Section 13020, and any other
information the director shall prescribe. This annual reconciliation
return shall be due on the first day of January following the close
of the prior calendar year and shall become delinquent if not filed
on or before the last day of that month.
(2) The requirement to file the annual reconciliation return for
the prior calendar year under this subdivision shall not apply to the
2012 calendar year and thereafter.
(k) The requirement in subdivision (a) to file a quarterly return
shall begin with the first calendar quarter of the 2011 calendar
year.
SEC. 63. Section 13050 of the Unemployment Insurance Code is
amended to read:
13050. (a) Every employer or person required to deduct and
withhold from an employee a tax under Section 986, 3260, or 13020, or
who would have been required to deduct and withhold a tax under
Section 13020 (determined without regard to Section 13025) if the
employee had claimed no more than one withholding exemption, shall
furnish to each employee in respect of the remuneration paid by the
person to the employee during the calendar year, on or before January
31 of the succeeding year, or, if his or her employment is
terminated before the close of the calendar year, on the day on which
the last payment of remuneration is made, a written statement
showing all of the following:
(1) The name of the person.
(2) The name of the employee, and his or her social security or
identifying number if wages have been paid.
(3) The total amount of wages subject to personal income tax, as
defined by Section 13009.5.
(4) The total amount deducted and withheld as tax under Section
13020.
(5) The total amount of worker contributions paid by the employee
pursuant to Section 986.
(6) The total amount of worker contributions paid by the employee
pursuant to Section 3260.
(7) The total amount of elective deferrals (within the meaning of
Section 402(g)(3) of the Internal Revenue Code) and compensation
deferred pursuant to Section 457 of the Internal Revenue Code.
(b) The statement required to be furnished pursuant to this
section in respect of any remuneration shall be furnished at other
times, shall contain other information, and shall be in a form, as
the department may by authorized regulations prescribe.
(c) If, during any calendar year, any person makes a payment of
third-party sick pay to an employee, that person shall, on or before
January 15 of the succeeding year, furnish a written statement to the
employer in respect of whom the payment was made showing all of the
following:
(1) The name and, if there is withholding under this division, the
social security number of that employee.
(2) The total amount of the third-party sick pay paid to that
employee during the calendar year.
(3) The total amount, if any, deducted and withheld from that sick
pay under this division. For purposes of the preceding sentence, the
term "third-party sick pay" means any sick pay, as defined in
subdivision (b) of Section 13028.6, which does not constitute wages
for purposes of this division, determined without regard to
subdivision (a) of Section 13028.6.
(A) For purposes of Chapter 10 (commencing with Section 2101) of
Part 1 of Division 1, the statements required to be furnished by this
subdivision shall be treated as statements required under this
section to be furnished to employees.
(B) Every employer who receives a statement under this subdivision
with respect to sick pay paid to any employee during any calendar
year shall, on or before January 31 of the succeeding year, furnish a
written statement to that employee showing all of the information
shown on the statement furnished under this subdivision.
(d) The Franchise Tax Board shall be allowed access to the
information filed with the department pursuant to this section.
SEC. 64. Section 1673.2 of the Vehicle Code is amended to read:
1673.2. (a) The department, in coordination with the Department
of Finance, shall do all of the following:
(1) Search its records to identify the registered owner or lessee.
Except as required under Section 1673.4, the department shall mail
to the registered owner or lessee a refund notification form
notifying the registered owner or lessee that he or she is eligible
for a refund of the smog impact fee. This form shall identify the
vehicle make and year, and include a refund claim that shall be
signed, under penalty of perjury, and returned to the department.
(2) Shall acknowledge by mail claims for refund from registered
owners or lessees received prior to the effective date of this
section.
(3) Except as provided in Section 1673.4, shall verify whether the
information provided in any claim is true and correct and shall
refund the three hundred dollar ($300) smog impact fee, plus the
amount of any penalty collected for late payment of the smog impact
fee, and any interest earned on those charges, to the person shown to
be the registered owner or lessee.
(b) Notwithstanding any other provision of law, interest shall be
paid on all claims at a single annual rate, calculated by the
Department of Finance, that averages the annualized interest rates
earned by the Pooled Money Investment Account for the period
beginning October 1990 and ending on the effective date of this
section. Interest on each refund shall be calculated from the date
the smog impact fee and vehicle registration transaction was
completed to the date the refund is issued. Accrual of interest shall
terminate one year after the effective date of this section.
(c) (1) Notwithstanding any other provision of law, those who paid
the smog impact fee between October 15, 1990, and October 19, 1999,
may file a claim for
refund.
(2) Claims for refund by a registered owner or lessee shall be
filed with the Department of Motor Vehicles within three years of the
effective date of this section.
SEC. 65. (a) The Legislature finds and declares all of the
following:
(1) The Legislature appropriated thirty million two hundred
eighty-three thousand dollars ($30,283,000) in Item 0855-101-0367 of
the Budget Act of 2007 for the purpose of providing grants to local
government agencies to mitigate impacts from tribal government
gaming.
(2) The Governor deleted thirty million dollars ($30,000,000) for
grants to local government agencies, citing a Bureau of State Audits
report finding in which some local governments were not using grant
moneys for their sole intended purpose.
(3) In 2008, the Legislature passed, and the Governor signed into
law, Chapter 754 of the Statutes of 2008 (A.B. 158), enacting several
recommendations from the Bureau of State Audits to help ensure grant
funds be spent for their intended purpose.
(b) The sum of thirty million dollars ($30,000,000) is hereby
appropriated from the Indian Gaming Special Distribution Fund to
restore funding deleted from the Budget Act of 2007 for the purpose
of providing grants to local government agencies pursuant to Section
12715 of the Government Code. For the purpose of this specific
appropriation, distribution of appropriations to local government
agencies impacted by tribal gaming shall be in accordance with the
method for determining appropriations into individual tribal casino
accounts in effect in the 2006-07 fiscal year, and based on payments
made into the Indian Gaming Special Distribution Fund in the 2006-07
fiscal year.
SEC. 66. The provisions of Section 67 this act are subject to the
applicable provisions of the Budget Act of 2009 (Chapter 1 of the
2009-10 Third Extraordinary Session).
SEC. 67. Item 0820-001-3086 of Section 2.00 of the Budget Act of
2009, as amended by Section 72 of Chapter 1 of the 2009-10 Fourth
Extraordinary Session, is amended to read:
0820-001-3086--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the DNA Identification
Fund...................................... 45,355,000
SEC. 68. (a) The remaining funds appropriated in Item
0911-001-0001 of Section 2.00 of the Budget Act of 2009 (Ch. 1,
2009-10 3rd Ex. Sess., as revised by Ch. 1, 2009-10 4th Ex. Sess.)
shall be available until June 30, 2012. Any funds allocated pursuant
to Item 0911-001-0001 of Section 2.00 of the Budget Act of 2010 shall
be available until June 30, 2013. The Director of Finance shall
allocate those funds among the Citizens Redistricting Commission, the
Secretary of State, and the Bureau of State Audits not sooner than
the date that both of the following have occurred:
(1) The State Auditor has randomly drawn the names of eight
individuals who shall serve on the Citizens Redistricting Commission
pursuant to subdivision (f) of Section 8252 of the Government Code.
(2) Thirty days have elapsed since the Department of Finance has
submitted to the Chairperson of the Joint Legislative Budget
Committee a written notification of intent to allocate those funds,
or whatever lesser time the chairperson of the joint committee may
determine.
(b) In order to receive an allocation of funds under this section,
the Bureau of State Audits shall submit a request with a detailed
cost estimate to the Chairperson of the Joint Legislative Budget
Committee and the Director of Finance. If the chairperson of the
joint committee provides a written notification to the director that
the requested allocation, or a lesser amount, is needed to carry out
expenses of the Bureau of State Audits as set forth in the detailed
cost estimate, the director shall make an allocation of funds as
identified in the written notification.
SEC. 69. (a) For the purpose of this section, the following words
and terms shall have the following meanings:
(1) "Bank" means the California Infrastructure and Economic
Development Bank.
(2) "IID" means the Imperial Irrigation District.
(3) "IID Infrastructure Guarantee Trust Account" means the account
within the California Infrastructure Guarantee Trust Fund
established by this section.
(4) "Infrastructure Bank IID Guaranteed Project Bonds" means
obligations of IID issued in a principal amount providing net project
proceeds of up to one hundred fifty million dollars ($150,000,000)
in 2003 dollars as adjusted to their present value by the
construction cost index, comprising the net of costs of issuance and
the funding of a reserve account in the maximum amount provided by
federal law with respect to tax exempt obligations, the net project
proceeds of which are for the purpose of completing Transfer
Agreement Project Improvements.
(5) "SDCWA" means the San Diego County Water Authority.
(6) "Shortfall" means, to the extent the number is negative,
revenues received by IID pursuant to the transfer agreement, less the
operation and maintenance costs, administrative costs, other
noncapital costs related to the Transfer Agreement Project
Improvements, and debt service on the Infrastructure Bank IID
Guaranteed Project Bonds, not to exceed the amount due as debt
service on the Infrastructure Bank IID Guaranteed Project Bonds on
any payment date for those bonds and subject to offset as set forth
in this section.
(7) "Transfer agreement" means that Agreement for Transfer of
Conserved Water by and between IID and SDCWA dated April 29, 1998, as
amended as of October 10, 2003.
(8) "Transfer Agreement Project Improvements" means projects or
programs undertaken by IID for the purposes of the development of
"conserved water" as that term is used in, and for the purposes of,
the Quantification Settlement Agreement that was executed on October
10, 2003, that are financed with proceeds of the Infrastructure Bank
IID Guaranteed Project Bonds.
(9) "Triggering event" means any of the following:
(A) Termination of the transfer agreement on or before October 3,
2048, for reasons other than set forth in subparagraph (B) or (C).
(B) A default under the transfer agreement by SDCWA resulting in a
reduction in revenues payable to IID, provided that IID has assigned
to the bank that portion of its payment rights under the transfer
agreement sufficient for the bank to be made whole in the event
recovery is obtained from the SDCWA.
(C) A court or administrative body order or other action that
results in a reduction or elimination of revenues under the transfer
agreement.
(b) The amount in the California Infrastructure Guarantee Trust
Fund or any account in that fund on January 1, 2010, that is held for
the benefit of the IID pursuant to Resolution No. 03-18, adopted by
the California Infrastructure and Economic Development Bank on June
27, 2003, shall be deposited in a guarantee reserve account within
the fund, which is hereby established as the IID Infrastructure
Guarantee Trust Account. This amount shall also constitute the
"reserve account requirement" for the account for the purposes of
Section 63064 of the Government Code.
(c) The Infrastructure Bank IID Guaranteed Project Bonds shall be
guaranteed by the bank, and the IID Infrastructure Guarantee Trust
Account shall constitute the guarantee reserve account for the
Infrastructure Bank IID Guaranteed Project Bonds as provided in
Section 63063 of the Government Code. Moneys in the IID
Infrastructure Guarantee Trust Account, including any amounts
appropriated to this account, shall be paid for the benefit of the
holders of the Infrastructure Bank IID Guaranteed Project Bonds in
the amount of the shortfall upon the occurrence of all of the
following: (1) a triggering event; (2) the exhaustion of the bond
reserve account funded in the maximum amount provided by federal law
with respect to tax exempt obligations by the Infrastructure Bank IID
Guaranteed Project Bonds; and (3) funding by IID of debt service
payments for 12 consecutive months. Moneys shall be transferred from
the IID Infrastructure Guarantee Trust Account by the bank to the
trustee for the Infrastructure Bond IID Guaranteed Project Bonds in
an amount not to exceed the shortfall for the purpose of making
principal or interest payments on the Infrastructure Bank IID
Guaranteed Project Bonds.
(d) If a triggering event occurs and IID enters into a water
transfer agreement with one or more parties, or a subsequent water
transfer agreement with SDCWA, for all or any portion of the water
that otherwise would have been transferred to SDCWA pursuant to the
transfer agreement, IID shall apply the net revenues received under
the water transfer agreement or agreements as an offset against the
shortfall.
(e) The Infrastructure Bank IID Guaranteed Project Bonds shall
have maturities not to exceed 30 years from the date of issuance of
each series of these obligations and bear a fixed rate of interest.
The Infrastructure Bank IID Guaranteed Project Bonds shall be
structured with level debt service unless the board of directors of
the bank approves non-level debt service. The date or dates of
issuance shall be as determined by IID.
(f) The guarantee by the bank of the Infrastructure Bank IID
Guaranteed Project Bonds and any payment thereunder shall be without
any rights of recourse, subrogation, reimbursement, contribution, or
indemnity against IID, provided that IID shall reimburse any
guarantee payments received in any IID fiscal year to the extent that
transfer revenues in that fiscal year received under the transfer
agreement, or under any subsequent water transfer agreements
described in subdivision (d) exceed the amount required for IID to
pay the operation and maintenance costs, administrative costs, and
other noncapital costs related to the Transfer Agreement Project
Improvements plus debt service on the Infrastructure Bank IID
Guaranteed Project Bonds.
(g) The obligation of the bank and of the state to pay any
guarantee benefit for the Infrastructure Bank IID Guaranteed Project
Bonds shall be a limited obligation of the bank payable solely from
amounts deposited in the IID Infrastructure Guarantee Trust Account
pursuant to this section, or subsequently appropriated for deposit in
the IID Infrastructure Guarantee Trust Account pursuant to
subdivision (d) of Section 63064 of the Government Code. Upon the
occurrence of a triggering event and satisfaction of the conditions
precedent for funding described in subdivision (c), the executive
director of the bank shall take the action as provided in Section
63064 of the Government Code. The guarantee of the Infrastructure
Bank IID Guaranteed Project Bonds under this section shall not
directly or indirectly or contingently obligate the state or any of
its political subdivisions to levy or to pledge any form of taxation
whatever for them or to make any appropriation for their payment. The
contract of guarantee to be entered into by the bank shall contain
on its face a statement to the following effect: "Neither the faith
and credit nor the taxing power of the State of California is pledged
to the payment of the principal of, or interest on, this contract of
guarantee."
(h) The bank shall enter into a guarantee agreement with IID that
is consistent with the terms of this section, as approved by the
board of directors of the bank. Article 3 (commencing with Section
63040), Article 4 (commencing with Section 63042), and Article 5
(commencing with Section 63043) of Chapter 2 of Division 1 of Title
6.7 of the Government Code shall not apply to the guarantee by the
bank of the Infrastructure Bank IID Guaranteed Project Bonds.
(i) Pursuant to Section 63066 of the Government Code, the bank may
charge and collect an insurance guarantee premium upon the issuance
of the guarantee of the Infrastructure Bank IID Guaranteed Project
Bonds, not to exceed 1 percent of the principal amount thereof from
the proceeds of the bonds, in an amount established by the board of
directors of the bank.
SEC. 70. The Employment Development Department until September 3,
2013, shall report to the Joint Legislative Budget Committee, no less
than quarterly, on the progress and effectiveness of implementation
of the alternative base period program prescribed in Sections 1275,
1277.1, 1277.5, and 1329.5 of the Unemployment Insurance Code.
SEC. 71. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
SEC. 72. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to implement the Budget Act of 2010 as soon as possible,
it is necessary for this act to take immediate effect.